Presently, the US economy is undergoing one of the greatest technological shifts ever experienced. There has been massive job displacement due to automation. Many manufacturing, retail, truck driving and other blue collar jobs are expected to be lost as machines and robotics continue to replace workers. Andrew Yang, entrepreneur and candidate for President of the United States, has proposed universal basic income (UBI) as a solution to the problem with automation. UBI is an economic policy where every citizen is guaranteed payments from its government. Under Yang’s UBI or “Freedom Dividend,” every American would receive $1,000 montly, which would be funded by consolidating government welfare programs and instituting a value added tax (VAT). His idea to introduce UBI is becoming more popular, and well-known entrepreneurs like Elon Musk, Mark Zuckerberg, and Richard Branson have now endorsed UBI. Supporters of UBI advocate the potential benefits are abundant, such as reduced poverty and increased opportunities for people to undertake new life ventures such as starting a new business or returning to school.
