Basic income in the new world order

A basic income has been promoted from the left and right for years but nothing has come of it. Maybe new leaders and a new world order will change that.

  image: Steemit.com

Sometimes called a guaranteed annual income, it has been supported by progressives and neoliberals alike. Progressives argue that a basic income would help reduce poverty. Neoliberals say it decreases government bureaucracy by combining a number of social services like welfare, child benefits, employment insurance, and Old Age Security into one.

What politicians have failed to do, the leaders of technology may accomplish. They clearly see the loss of jobs due to automation. Innovators such Elon Musk, CEO of Tesla and Space X, says:

“There is a pretty good chance we end up with a universal basic income, or something like that, due to automation,” Musk told CNBC in an interview last year.

Facebook’s Mark Zuckerberg sees it differently. A vital society depends on everyone having the opportunity to create new ideas. That’s why billionaires like him should pay for a financial safety net that allows everyone to find their purpose.

“The greatest successes come from having the freedom to fail,” said Zuckerberg. “Now it’s our time to define a new social contract for our generation. We should explore ideas like universal basic income to give everyone a cushion to try new things.”

Zuckerberg is on to something when he suggests a new social contract. The failure to implement a basic income takes place in an old world order that values industrial jobs and resource extraction above those of human interaction. Industrial jobs have been reduced and more automation is on the way. Resource extraction is pushing the limits of what the earth can deliver, and pushing the conditions under which humans can live.

Jobs that involve human interaction, such as child and elder care workers, have been low-paying. What kind of crazy world order invented a system where monotonous, often dangerous, planet-threatening, industrial jobs pay more than jobs that nurture our future in children, and care for the frail and elderly?

A new world order would include Zuckerberg’s transfer to the poor through a new social contract and much more. Former Greek finance minister Yanis Varoufakis envisions an end to globalization and the start of a new era in which a basic income would be part:

“And we need a universal basic dividend that would be administered by the New Bretton Woods institutions and funded by a percentage of big tech shares deposited in a world wealth fund.”

By Bretton Woods Institutions, he means the World Bank and the International Monetary Fund. They helped rebuild the shattered postwar economy and to promote international economic cooperation.

Varoufakis is leading the post-globalization era in Europe with The Democracy in Europe Movement 2025. President Trump (don’t laugh) is leading the post-globalization era in the U.S.

Trump’s grip on reality may be somewhat tenuous but he does understand turmoil; he thrives on the thrill of the circus. His constituents have had it up to here with the existing order. Trump is tearing globalization apart with a world tariff-war.

These are exciting times. Where politicians failed, maybe tech leaders, global visionaries and clowns will excel.

 

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Germany pays customers to use electricity

German power companies paid customers to use electricity on one hundred occasions in 2017. Companies paid customers a lot relative to what they normally receive -1,720 times more per kilowatt hour.

   photo: CleanTechnica

The reason why power companies were so eager to pay customers had to do with the wind. Wind turbines were generating too much power on the grid and they had to dump it quickly. Surplus electricity is a dangerous problem that has to be corrected quickly.

While wind turbines can be switched off quickly, fossil fuel and nuclear sources can’t. Power grid managers have to agile to compensate for gusty winds.

The problem with surplus electricity is that voltage quickly rises and that can damage equipment. Power grid engineering is complex but one thing is simple: power in equals power out. Managing the grid requires a balance in the production and consumption of electricity. The sum of all the power used by your TVs and toasters, and all that of your neighbour’s, equals the power produced by generators. If the power produced is more than what’s used, something has to give.  What gives is a precipitous rise in voltage.

Christmas Day, 2017, was pleasantly warm in Germany and the wind was strong. As well, demand was abnormally low being a holiday when factories and offices are shut down. Suddenly, the wind blew and power companies had to shed a lot of power from the grid. So the plea went out from power companies to start wasting electricity. Turn on your electric heaters and all the lights in your house. Open the doors. We’ll pay a lot is you do.

Too much wind power is not unforeseen. Germany spent $250 billion to develop wind turbines and they now produce 20 per cent of the country’s power. The remainder of Germany’s power comes from fossil fuels and nuclear.

Germany has obviously solved one part of the greenhouse gas problem by investing heavily in renewable sources but the other side remains unresolved –how to store surplus energy. Battery technology doesn’t have the capacity to store huge amounts of power. If it did, surplus wind power could have been stored.

Batteries will work on a smaller, household scale. Elon Musk sells his Tesla Powerwall battery for $7,000 and it holds enough power to run your house for about 3 days. Imagine being paid to store electricity and then to use it to supply your energy needs for days? In Germany, you’d be doing yourself and the power company a favour.

If you live in B.C., not so much. British Columbia has the enviable position of generating power by hydroelectricity; 95 per cent of it with the remainder by natural gas plants.

B.C. can’t reduce greenhouse gas emissions substantially by switching to wind and solar. Small scale installations in houses can reduce the cost of electricity for homeowners. Because dams hold stored power, storage of surplus electricity is not a problem.

Germany has reduced the burning of fossil fuels with wind and solar. Now, if they could only find some way to store the surplus electricity.