MLK: A Dream for Guaranteed Middle Class Income

Where do we go from here? It’s a simple title with a heavy question , which in context of Dr Martin Luther King’s book, brings more questions than answers. Dr. Martin Luther King’s experiences deepened his convictions to address the war on poverty for all races and creeds in America. His last book, Where Do We Go From Here, addressed many of the issues surrounding the economic realities of many Americans which still persist till this day. 

In Mr. King’s words,

“The solution to poverty is to abolish it directly by a now widely discussed measure: the guaranteed income. … We are likely to find that the problems of housing and education, instead of preceding the elimination of poverty, will themselves be affected if poverty is first abolished.

A host of positive psychological changes inevitably will result from widespread economic security. The dignity of the individual will flourish when the decisions concerning his life are in his hands, when he has the assurance that his income is stable and certain, and when he knows that he has the means to seek self-improvement.

There is nothing except shortsightedness to prevent us from guaranteeing an annual minimum – and livable – income for every American family. The time has come for us to civilize ourselves by the total, direct and immediate abolition of poverty.” 

Meeting Halfway

While these ambitions may seem fanciful, the realities hemmed by technological advancements shed light on its efficacy. Losses of jobs caused by new technology are reasons to encourage a guaranteed basic income. Guaranteed income could serve as a replacement for the welfare state. Charles Murray outlines some of the benefits of guaranteed income in America. It is a compromise that both the left and the right may agree on. The left may be encouraged by the state-driven redistribution of wealth while the right may be encouraged by the more conservative approach to redistribution of wealth which puts more control in the hands of people. Further labour force participation may be encouraged as individuals would still be able to work and receive their guaranteed income. A high payback point of the proposed GI of US $25,000 would reduce the disincentive effects that may have been felt under a welfare state. 

Many Questions

So, where do we go from here? Many questions must be answered before the thought of affording guaranteed income is acted upon. Automation of jobs may cause further confusion for hopeful graduates in the search of higher education. The usefulness of degrees may be put in a more questionable position as a result of the shift in winds. The core value of money must also be questioned; does it exist? Automation of jobs may strip away the flowered notions many groups once had of employment, education, and the economy itself. The struggle is real. While it may be argued that labour forces in emerging economies may not face the same degrees of misemployment and unemployment as a result of the automation of jobs, the fact is the falling cost of technology will make it far easier for companies in emerging economies to automate jobs at a cheaper rate. Where low productivity once hampered the growth of companies in emerging economies, the automation of jobs may offer the aforementioned economies with a simpler and quicker solution to unskilled labour forces. Everything is up in the air. Technology breeds freedom but freedom is not free.