From Derrick Grover
Federico Pistono argues for a universal basic income (3 October, p 28). Back in 1978, I wrote on this subject, but called it a Basic National Wage (BNW) and I intended it to counter the work problems expected from microelectronics.
Industry is the creator of wealth and so ultimately pays for the unemployed. This should be recognised in accounting procedures. The BNW would be paid by the state to those who are unemployed and those who are employed, with employers topping it up so their workers are paid a similar amount to present salaries. The extra cost to give someone a job would then be less, as would the monetary benefit of making people redundant.
Investment in equipment such as robotics would therefore be delayed until it made a net saving. Overall there would be a greater utilisation of resources – plus the psychological benefit of providing more employment. One issue to consider is the method of taxation to pay for it, to make sure it does not penalise those who employ more people.
Haywards Heath, West Sussex, UK
