Universal
basic income is a complex, controversial reform. It deserves a few articles by
way of background and explanation.
*****
The
Soviet Union sent the first man, and before him the first dog, into space.
While the USSR was conquering space, Soviet citizens started their day on earth
with dogfights, queuing up for bread and meat. Soviets focused on military
power at the cost of consumers. Patriotic wars, May parades or Sputnik missions
were found to be poor substitutes for food, human dignity and life without
queues. Communism as practised by the Soviet Union was not sustainable.
American
capitalism, on the other hand, focused on the consumer. So much that America
has more cars than people who can drive them and more guns than people who can
fire them. America focused on building the strongest nuclear shields,
state-of-the-art atom bombs, and now faces fatal shortages of masks and
ventilators. The first world has focused on consumerism and defence at the cost
of climate and health.
In
1991, Communism duly collapsed. The world celebrated.
In
2020, Capitalism as currently practised, collapsed. Of course there is no
formal announcement. There are no CNN-moments like the fall of the Berlin wall
or Yeltsin standing on a tank. But history will note 2020 as the year when
unsustainable practises of western economies crumbled.
A
system that gradually decays needs a trigger for a collapse. Mikhail Gorbachev
was that trigger for communism. He highlighted the flaws in the system. He
launched an attack on the system. Gorbachev wanted to reform it, but the system
had so decayed it collapsed. Though Russia subsequently went downhill due to
politics, the Communist Economics never returned.
What
Gorbachev did to Communism is now done by a small, invisible virus. It is
travelling the world highlighting the flaws of the anti-climate economic
system. Suddenly the mighty nuclear weapons are silent, wondering how to defend
against a virus. The world has woken up to the fact that on-line white collars
can’t run the world without off-line blue collars.
It
is premature to celebrate the demise of the current system. Neither is this the
right time. However, there is no doubt that the demands made by the Coronavirus
for a ‘Perestroika’ are not an ounce
weaker than Gorbachev’s.
Ravi
I hope this pandemic changes the world towards compassionate capitalism or similar economic philosophy. I always believed in taking central position in the tussle between right and left wing policies. I feel that Obama and Blair would have done much better in my opinion. I hope Boris Johnson learns lesson from Tony Blair's experience. I agree with you that it is premature to call demise of current system, it is notffar off. Something will come up between capitalism and communism.
ReplyDeleteWe are in an unforeseen black swan, and we risk unforeseen outcomes.
ReplyDeleteWhat we can take comfort from is that this self induced coma will pass, and some behavioral change prioritising the spend on critical medical equipment and infrastructure should be on the cards.
Lets keep our fingers crossed for as yet unknown good outcomes.