Billionaire Richard Branson: America should give out free cash to fix income inequality Media Man Int

Billionaire Richard Branson: America should give out free cash to fix income inequality - July 2018

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by Greg Tingle

One solution to income inequality is giving out free cash, according to the flamboyant British billionaire entrepreneur Richard Branson.

"A basic income should be introduced in Europe and in America," Branson told David Gelles of The New York Times.

Numerous media and business figures in Australia are also of the same sentiment.

Branson was responding to the question, "What do you think those in positions of power should do to address social problems like income inequality?"

In a report published this past January, the global charity Oxfam reported that 82 per cent of the growth in global wealth in the previous year went to the top 1 per cent of individuals ranked by riches. Meanwhile, the bottom 50 per cent had no increase in their wealth, the topical report says.

"It's a disgrace to see people sleeping on the streets with this material wealth all around them," Branson said.

A universal basic income, as it's known, is a cash payment distributed to residents irrespective of their employment status.

Further, there are other reasons for cash handouts, according to Branson.

"I think with artificial intelligence coming along, there needs to be a basic income," said Branson.

Gelles asked whether that's because robots will replace human jobs. "Because of job displacement?" Gelles asked.

"I think AI will result in there being less hours in the day that people are going to need to work," Branson said. "You know, three-day workweeks and four-day weekends. Then we're going to need companies trying to entertain people during those four days, and help people make sure that they're paid a decent amount of money for much shorter work time."

Microsoft co-founder Bill Gates has also said that AI will eventually mean less time spent working.

"Certainly we can look forward to the idea that vacations will be longer at some point," Gates told FOX Business Network at the World Economic Forum in January.

Machine learning and artificial intelligence will make humans more productive, says Gates, which is generally a good thing.

"The purpose of humanity is not just to sit behind a counter and sell things. More free time is not a terrible thing," he said.

The interview with The New York Times published Friday is not the first time Branson has talked about automation necessitating a universal basic income.

"With the acceleration of (artificial intelligence) and other new technology ... the world is changing fast," Branson wrote on his famous blog in August.

"A lot of exciting new innovations are going to be created, which will generate a lot of opportunities and a lot of wealth, but there is a real danger it could also reduce the amount of jobs," he said.

"This will make experimenting with ideas like basic income even more important in the years to come."

A report from the McKinsey Global Institute confirms the idea that automation will cause major disruption to the job market globally. By 2030, 75 million workers around the globe will need to change occupational category due to automation, according to the December 2017 study, and 400 million jobs could be potentially displaced. The McKinsey Global estimates are based on analysis of 46 countries that include 90 per cent of global gross domestic product and a mid-level pace of adoption of automation.

Australian tech automation changes the face of buying, selling and consumer behaviour:

In Australia a multitude of technologies are cutting into what was previous stable employment including:

Subscriber television and streaming (now can be ordered, turned of and turned off over the internet), be it Netflix, Stan Australia, WWE Network, UFC Fight Pass, Watch AFL, NRL Live Pass CoastalWatch or others

Used car sales: Sales online on websites such as CarSales.com.au and CarsGuide.com.au

Second hand and even new clothing via the likes of eBay for Brands including Versace, Adidas

Gifts and 1000s of items via the likes of Amazon

Education: TAFE and University accredited courses available such as Open Universities Australia and OTEN (Open Training Education Network)

Magazines are shifting across to online only in many cases: FMH, Playboy, Penthouse, MAXIM

Music via the likes of Google Play, iTunes YouTube Gaming and YouTube Music