Jamie Dimon gets on the Universal Basic Income train
Actually, he isn't exactly on the UBI train.
He did, however, come out in favor of expansion of a program that does assist lower income people. It is an approach that was favored by Milton Friedman that guarantees money paid by the government directly to those in need.
It is separate from what is usually termed "welfare" programs. Instead, it is part of the tax code.
Commonly referred to as the Negative Income Tax, the proper name is the Earned Income Tax Credit.
The EITC functions like a big tax refund. If a family makes below a certain amount each year, the government will refund the tax that was withheld plus an additional amount.
Jamie Dimon stated that this program should be "dramatically expanded" in a letter to JP Morgan shareholders.
Dimon's letter echoed his comments at this year's World Economic Forum, in Davos, Switzerland, where leaders took to the idea because robotic automation now looms over a growing number of jobs. Governments may need to find ways to supplement people's wages when employers no longer require the employee's specific type of work.
"I think negative income tax is a big solution for the low-skilled, to give people a living wage and the dignity of a job," Dimon said at a private lunch during the event.
http://www.businessinsider.com/negative-income-tax-how-earned-income-tax-credit-works-2017-4
We are encouraged to see another business leader bring up this topic. The EITC is an idea that is getting more attention. It is a way to put a floor in for people who are below the poverty line.
How far this discussion goes will be something to watch. The present numbers thrown around meet with the same result as many initiatives; the money provided is still not enough to live on.
It is evident that a lot of conversation needs to take place with all these approaches before anything substantial will happen. If nothing else, awareness is going to be raised about the impending effects of automation on the workforce.
Our hope is that, somewhere along the way, the discussion steers towards the fact that roughly half the children in the world are living in starvation. In our view, this means it is also a human rights issue.
Awareness is the starting point.
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I always wonder what Dimon’s true motives are, but it’s pretty unbelievable if he’s actually in favour of UBI.
There is always sense when pronouncing (non)sense . No matter how hard and self consent people are, there will always be a good heart people like this good man
The solution I think governments can do is take enough tax from those that use robot for their works so as to pay the citizens