“Utopia for Realists”: Case for Universal Basic Income

Read This Book If you Want a Fresh View on the Future of Economics

“Utopia For Realists” by a Dutch historian and journalist Rutger Bregman was one of my 2020 lockdown reads:

This cool, unconventional book explores the concept of utopia.

It starts by arguing that we have already achieved the “utopia of happiness and prosperity” of the Medieval times: we live much better and longer, there is no scarcity of resources.

Bregman then argues that any society needs a “utopia” in the sense of a dream or a common goal we can all work towards.

In today’s society influenced by predominantly neoliberal ideas, we lack such an idea. Besides, it can be argued that the Medieval “paradise” was not achieved after all, as everything is relative (and today’s wealth inequality is striking).

Bregman further outlines how many concepts that we use today (e.g. GDP) worked for mid-20th century, but do not work today. He then focuses on the alternative ideas that we can all get behind in today’s world.

One of the main concepts of the book is the universal basic income. Bregman provides the historical background of how this idea originated, and where it was tested (US, Canada, African countries, Nordics).

The book cites various arguments for UBI (universal basic income):

• Giving a person “free” money (instead of micro credits and “patronising” unemployment assistance) has proven to bring immediate effect: based on the tests conducted, people spend the money to cover their basic needs, and invest it in further profit bringing activities.
• Bregman addresses the common assumption that people living in poverty are also at risk of drug abuse or resorting to crime. His point is that the lack of money is crippling the rest of a person’s mental capacities. If you have to constantly think of a short-term goal (will I have food this week?), you simply do not have mental resources to think and plan mid- and long term.
• Another big argument for the universal income is increasing job automation. We are reaching the level where the machines do not just enhance human performance, but get significantly better (in some areas). In this situation, it is inevitable that many jobs will be lost. According to Bregman, with the achieved production levels and overall prosperity, it should not be an issue to provide a universal income for all.

Hand in hand with UBI goes Bregman’s conviction of the necessity to reduce working hours (gradually, down to 15 hours a week). First, there simply won’t be enough “human” work anyway. Second, “sharing” working hours will help reduce automation-related unemployment.

Bregman believes it is a misconception that people with universal income and “half-time” job will be lazy and idle. Instead, people will be able to focus on doing things that really motivate them.

In this respect, a paradox is pointed out that the most highly paid jobs today are “bullshit jobs”. They do not create value, but just redistribute it. And it is these job holders who most often complain that their jobs “bring no personal meaning” to them. With the universal basic income and reduced working hours (apart from other measures suggested in the book), the people will be able to add more meaning to their life by doing what matters to them.

Ultimately, this might be a utopia we should be striving for.

“Utopia for Realists” is a really good, stimulating read. It was written in 2014 and in many aspects, it was way ahead of its time.

I cannot say that just reading this book immediately sold me on UBI (there are important counter arguments to this idea). Still, this book inspires you to think and research further, looking for our generation’s “big idea”.

You might know that I don’t post book reviews without a beer recommendation. It’s just not what I stand for.

Today’s beer got to be Dutch, to honor the Dutch author of today’s book. It is an IPA by Uiltje Brewery 🇳🇱 (translated as “little owl”) from Haarlem, Netherlands. I had this beer on a nearby Zandvoort beach and it was such a lovely time.