Week were going to do a very close examination just something called the you be stacy universal basic income max that is free money every month a 1000. 00 for you to rip up every month for your Performance Art for example joining us to discuss universal basic income we have Sinclair Skinner marshall our back and josh universal basic income has smashed onto the stage with andrew yang whatever he was asked should we be in the middle east fighting for the Oil Universal basic income is the answer whatever the question was universal basic income was his answer this idea of giving free money its kind of based off of the notion that well the fed gave free money to the banks to bail them out 14. 00 trillion dollars why not give us a trillion dollars a year in free money josh many think thats why i think you know i think thats where it starts is is this sort of you know justice and thinking about money as this obstruct thing that that Central Banks can print with theres no consequences for debt and so why not why not distribute this way is what it comes down to also you know i pay taxes presumably to get something in exchange i get the infrastructure i get the place i get the sanitation i get the military and its an abstract process and it goes through the matrix of politics. Why cant i just pay my taxes and get a dividend back i can make an investment in any other enterprise i get yang calls that are freedom dividend should be being paid dividends for mind vestment in america the enterprise again i think it comes back to this its as much about justice as economics and so its i think this is risen and you know regardless if the economy is growing you know we should know the share of the distributions just off so we need to figure out how to redistribute it better and to yang argues we need u. B. I. Because of course he is from Silicon Valley and he sees everything through a Silicon Valley lens he sees that automation is going to displace all these jobs some numbers show up to 30000000. 00 over the next 10 years are going to be lost to automation in america others like dean baker will say that in fact its our trade deals where were losing jobs which one of those do you think is true and is free money every month is a dividend the answer 1st of all it breaks the nexus that you establish between your taxes and getting something in return which of these are terrible idea i think its socially corrosive it basically doesnt solve the underlying problem which dean baker describes in part its a palliative to allow so they can tell the 1000000000 is basically to carry on as things are going and youd redistribute a little bit to the peasants to keep them happy and keep the rubles down it would be much more preferable to have a Job Guarantee Program so that in exchange for getting a fixed wage and a series of benefits who actually put in some work which is socially useful and contribute some to society and i think its fundamentally more american most americans would rather work for a payment or and go from the government just received something for free theres also some externalities associated here relatively new phenomenon in terms of data so up until very recently my data the location of where i am the interactions. I have a daily basis who i talk to and communicate with that was never monetize to serve back to me in the from an industrial combine is to see in Silicon Valley so i have intrinsic data value that i should be monetize and should be returned to me because its mine i own it is part of my sovereign individual senators have my data siphoned off for free and then sold back to me is not healthy the end of the day we live in a thing called a society and not everything is just a straight monetary transaction between one individual another theres got to be a broader nexus of things that keep us together and to me that takes you further along towards the dystopian vision of h. G. Wells where you have you know the the eloy living in the celestial heavens and then youve got the more logs living in the caves and then down in the darkness doing all the grubby work and then they disappear with the rest of the way to sustain the lifestyle for the rich and famous but here in america we create the constitution and the bill of rights and establish sovereign individuality and then we have the government working for us you know thats our innovation that was our Disruptive Technology back 200 years ago so keeping in that theme i would continue on to believe that the government is a servant of the people but i dont see why you couldnt introduce a job guarantee which would have a much more positive productive social role than just simply distributing. Cocoa freedom dividend or how rand yang wants to market it so lets bring sinclair and what do you think of a job guarantee i mean a job guarantee is a better fix i think that in a day. Exploited labor if you had the government set a real floor of that was and actually train folks to build the way we need to build just like you know which i would the new deal and. You know my background is engineering but you know creating dams infrastructure. You know Civil Engineering were. Bigots you know additional road work so you dealing with different various skill sets but everybodys very valuable you cant you talk about Civil Engineering with actually the person laying down as fall preparing the ground and all these things are stepping stones to actually building a labor thats really more satisfying i think even in the eightys when we looked at how we automated so many things on the Assembly Line people saying people are going to lose jobs well the jobs are very repetitive you know we really were talking about ergonomics you would have all these problems with different body parts because youre doing horrible work i dont think thats really you know the optimal use of human beings anyway so what im learning in this series front running is that the economy is becoming more skewed toward financialization and that those banks that have access to 0 percent credit for example dominate overwhelmingly in the society and that the need for labor as such as a concept is known is becoming obsolete and if the economy is monetize this extent and its all about access to cheap money and if i dont have access to 0 percent Interest Rate or negative Interest Rates then im at a disadvantage in an asymmetric war of what these banks the way to right that wrong is give me a cut just like in alaska they get a cut of the oil revenue why can i as a citizen get a cut of wall streets revenue that they are generating for them sud think that is ation which are sending distilled different you dont have to do that in talking about the federal guarantee jobs that theres not just one magic bullet you could actually come up with some of the top of these baby bonds talking about ways we could Access Capital and capitalism capital is important so we could actually have programs that actually help folks who want to do that but when you give everybody a 1000. 00 im a poor person im going to consume that and then youre rich youre going to invest that where equity the wealth the spirit is going to grow because youre youre not using your money to consume youre literally buying more crazy things and then my landlord knowing that i got a 1000. 00 you just go raise my rent so then you got to inflation going on in there so i think now. If youre tom reparations and youre saying that were going to repair and just werent talking about reparations bring the players in and actually talk about how the check based on some real inequities that need to be repaired so we can move on theres an inheritance that ive been denied in the capitals deciding this was socialism that i still do and if we can reconcile that i think again were talking my equity were talking about a capitalist society im old money it should have interest the crew to it and then we can Start Talking about building a country together not just off my back and then say dont worry about the labor and work that you invested it would just move on to really good point because preparation is for the 1st time actually a president ial candidate level issue that were seeing many of the Democratic Candidates talking about reparations what do you think in terms of this is this a legitimate issue and. Its a legitimate is and the other point that sinclair makes is the right one look reparations deals with a fundamental injustice you had a group of people that were literally stolen from their homes in slave through no choice of their own they were put in this country and the most horrific conditions were imposed on them and weve never really addressed that issue on asli as and im glad were talking about it now but you know hopefully it will go beyond the top but it its it talks about establishing a new foundation instead of just simply dealing with the seas and and the existing pathologies on filling and slave by the data thats being kind of keeping me in this case where i can escape because its being monetizes served back to me in the form of the ads this continuation hasnt gone away could we address them on the front end i think we dont hold these people accountable and how they extract that like we will make it seem like what theyre doing is ok and then is not until it negatively impacts and then we now want to address what they did in the beginning there should be rules that prevent these folks from taking our data the way theyre extracting it this. That there should be some type of process that collectively agree you dont do this with my data just like i go into a store people dont do certain things to me why because there are rules of engagement i think we will allow this to be a while that everybody signs the terms of incandescent who actually reads the mail thats thats thats what n. G. s idea is a data driven and a robot truck miles so he saying that this is going to happening inevitably why not just like to have value added tax take it and give it i dont think that everyone i think we need to say no we have to have someone to step in and say we did technology is always ahead of regulation so were clear on that. Now that we see what youre doing to our population youre not going to do it anymore is unacceptable now the europeans have come up with some things where they let you take it then theyre supposed to disappear in a couple months im saying on the front end youre not allowed to do these things and that signing that little paper we know thats a hustle yes well lets not act like this really we need someone to come in and protect this funding were covering this shift generationally from the boomers. And we do see a lot of more woke like these ideas that theyre ready to give their used reparations back and it is a sort of time to move to that sort of thing like but what is that number or what is the reparations number like is it a trillion dollars is attention. 17 trillion its a lot of money and then what do you think as a banker about that i mean i guess that is the tough thing right we are blending 2 issues i mean at the end of the day it is a distribution problem in our economy but were blending again the justice issue with the actually are we getting wealthier so so when we talk about about you know jobs and programs that are productive Critical Infrastructure thats more of an economic i totally agree with by the way by the way thats a thats a better way to go about it i think but theres also a deep underlying sense of injustice in what you know what we thought was a more invisible hand free market economy you know. You know the winners rise of the top and and so were actually struggling with 2 issues here one is an economic issue. But we are not growing the pie so were distributing it more and more without growing at so so we have both a justice issue as well as an economic issue to deal with i think thats really well put because you see that in the political space itself between the 2 parties in d. C. The viciousness for that shrinking pie is very vicious and playing out in this hyper partisanship there is no discussion of growing the pie it is becoming a question of redistribution and so one party is saying were happy with the existing system we dont want to do anything about it the other the other party is saying well there are problems and lets redistribute from the winners to the losers without actually trying to do something which fundamentally restructures the economy in a way that creates more when its right well speaking of eating pies weve got a pie eating contest coming up right after the break right here in front running 2020 dont go away. The wisdom is the application of Practical Knowledge you know group or your ways in novel contexts maybe you learn a particular scenario could be in a class could be brilliant and you encounter that exact same scenario knowing what to do is just memory thats not wisdom thats not learning its just memorizing some wisdom comes when you are facing a brain new context and you can draw upon tools youve learned in other contexts systematically to know what to do. You are no offense but you no longer a young woman in fact youre wonderful. Last living survivors of the nazi ellis asked im aware of it. All you like. Then forget. Auschwitz was really like to be inhaled because he would never believe it want to go to as a copy of a course for 32 years of growth and he could prevent it all seems so logical for hire because i was. Right when i get out on the farm saw you dont want to take my song to the next place and hopefully bless my heart hurts. So what weve got to do is identify the threats that we have its crazy confrontation let it be an arms race off and spearing Dramatic Development the only posts really im going to resist i dont see how that strategy will be successful very critical time time to sit down and talk. Welcome back to front running 2020 ive asked ever in this episode or looking to be a universal basic income statement but i want to take it from a different angle and that would be the right wing angle because of course this proposal universe of basic income is being proposed by the left but way back decades ago it was frederick himself who is basically the grandfather of this whole deregulation and then the road to serfdom and an inspiration for Ronald Reagan and Margaret Thatcher his notion on why we should have something similar to a universal basic income that the government should provide a certain minimum income he said for everyone a sort of floor below which nobody need fall even when he is unable to provide for himself this he said would provide freedom from coercion by employers so if we have a jobs market the employer always has more leverage because you need the money you need to feed yourself you need to house yourself and your family so his notion was that it provides a more equal market there between employee and employer and this is going back to what he said about the jobs if you have a guaranteed level of jobs it really does make you know ridnour it makes the floor a better floor so right now your choice is nothing if youre unemployed or slave wages will suppose you have a 3rd option actual meaningful way that allowed you to really do something amazing for society you know maybe is daycare babies building roads babysitting to our elderly how do we get the best piggy back the growing of the pie is that we cant just have 4 white guys figure everything out weve got a world full of whole bunch of people i was able to make some money so now my creativity is high so i can actually Start Talking about something called bitcoin. Why because literally ive met all these other things because i was able to do so im very average but if other people had that opportunity we would grow the pie because these brains are what were missing were actually creating right well look at the brain trust that you find and Something Like and see whats as a huge side and people have access to a world Market Making little home craft and things and people are making tons of money doing that and look at where youve got music and artists who have access to World Markets we have more independently financed and funded successful musicians than ever in history i think having a basic income. As described by our high act gives that floor for people to just explore their own inner creativity and in a way that voids the pitfalls of being slat out broke im in the emergency room now i owe the man 100000. 00 i think we agree on the end point of what it does to have that floor and open up creativity and get away from subsistence the problem is how do we get to that point do we need a big central entity to suck it back up and then push it back down and i think technology is Getting Better to be able to make that you know just even from Payment Systems to make that but beyond like an old sons of some a check in the many old you know i think we can do it with block change and Something Like that you know i think its a lot easier to redistribute but i still go back i agree with what the jobs you know i think i think having having a job guarantee without income rather than just being a pure social safety net of just free money its a its a floor and it doesnt have to come from the top it will be funded from the top of course because it has the government the federal government is the funding mechanism is the issuer of the currency but it can be administered privately locally you can do it from the top down so how is this different than in they provided a jobs guarantee and the economy went bust the risk is that you have a you can create a slave type of system but you can easily graft dont. And you can take a whole d host of programs that we have today social welfare programs and not necessarily replace them but simply but give a living wage a sinclair was discussing along with benefits such as Adequate HealthCare Provision and youre not fundamentally changing the operations of the economy except that you youre introducing the equivalent of an employment buffer stocks so that you know when times are tough in the private sector you have a buffer stuff that collects that underutilized surplus of labor and allows them to stay in the working in the Employer Market and then transition back to a private sector job when things are Getting Better again but what i would argue is in some ways that that is sort of happening as long as its a government funded one as well as i do it growing you more and more of you going to do it or which then again gets back into Central Planning and import output models we dont. Get to central and i disagree it has to come the funding has to come from the gulf and there is no other mechanism that can realistically create it doesnt have to be administered by the government but ultimately it has to be and where it could be things that the private sector can get the the return on investment as quickly so these long term Infrastructure Projects are projects that people like you have im trying to make some money i need to my shareholders want to see me get results and were building some covert or some like means that would run off water it may not be something that i would take as a private sector but the government work with private sector and hire people to actually build even the think your Senior Citizens that really has a quality here that no 1 may be be willing to do in another way but this is were americans like theres to me we should care more about the quality of life of our people and i think if you had a minimum. Income eat a lot of people and help Senior Citizens because thats why no then why not like that is it next is directly by the job guaranteed because i are trying to get into Central Planning to josh bolten and i dont answer that and i wouldnt be awful in that regard i have a story here about the richmond fed. Set the economy and because all these youngsters are talking about universal basic income the top down approach is theyre jumping in and this is the sort of dystopian soviet like future they see for us so the richmond fed finds that it would be optimal to continue to concentrate knowledge workers specialized khalids like new york city like San Francisco these booming innovative thinking class sort of cities where hillary called the winner is the winners that voted for her and the rest of the country theyre the deplorable is right the losers of globalization and what the richmond fed says is that the government should subsidize these people these less educated people to live in less productive cities and then give them a u. B. I. Like cut of the agglomeration bonus its fancy words but it but basically its a its a payoff to sustain the existing system which creates a problem in the 1st place so i dont see how that can advance prison system too theyve sent you to say thats very 5 like this but you have but thats according to your logic where you simply say well you dont want to have a centrally administered system which you get through a job i would argue that if you just simply say well you just handed a 1000. 00 a month they could do whatever the hell they want with the you know youre perpetuating a serf like economy that you got today so why is that. An economy that rewards kleptocracy trenched elec are only that has access to unlimited trillions and 0 percent of what they are on a universal basic income right now its called quantitative easing and they have created an ecological hole no raynor president. Crater entrenched poverty theres nothing there to hold on as something universal about that and its not how is it not universal its every single banker in america gets. The money were all prisoners i mean you know look they dont and thats what the point is you do want to. Be universal but you want to be consistent with broader public per purpose and what your describing. According to the mandarins who run the Government Programs out in a world war to come up tucker out of her 3 decades lets talk about the last 3 decades because people are to judge i think its like a young millennia old who was offering a lot of old thinking that all men are going to be alone that thats right and his idea is of course well all these jobs are getting lost and in fact he mentioned that from 2000 to 2010 for every job that was lost a trade there were 6 jobs lost because of automation but what we should do is retrain people and help them conquer the spiritual challenges that come from being unemployed because training with no job sucks so if you actually o. J. T. Some bio and a job training. Center where youre literally training and doing this incredible thing and that takes a lot of that anxiety because you get this new training and what do you do with it you just stay employed for unemployed for a while but if you could actually get a job thats guaranteed and youre actually you know being productive i think it does answer that question of how do you move folks but this is not the 1st time again i said in the eightys and ninetys we kicked a lot of folks off the similar line to do Something Else and we need to do a better job of that we have this this narrative of technological in a bit in a bit of a debility which seems to destroy was towards automation and most more unemployment we had constant innovation throat history and it hasnt led to but by the logic of the the that the techno the techno determinist we should eventually just have a whole bunch of people engaged had leisure and just have 5 or 6 robots thats never happened like were going to get to a 30 hour were going to every generation painless and that now would have been you know the euthanasia of the rentiers and what he meant but with not the Wealth Creators but the wealth extract is thats what he was talking about the. You would get to a point in society where you wouldnt have the need for private wealth extractors that was that was the point he was trying to make but weve never had the issue of Artificial Intelligence were actually now everyone can range and again its a sentience Technological Force that is actively pushing us off the grid every generation has this fear of robots taking over i mean thats what 2001 a space odyssey was all about and and how being be able to shut us down and take over everything its the ultimate Dystopian Nightmare its suits the purposes of the ruling class to to put that narrative out there but its not necessarily the case that it will inevitably lead to that kind of dysfunction out of the disagree because weve seen around like youre about to mark official intelligence and automation and robot trading are now greater than 90 percent of all the trading they do most of the financial journalism the financial journalism read by robots and forms robots are lost what a trait they change prices which is reported and recorded by artificial and robotic you dont always go back and forth at a site youll decide youre going to be pushed off you know our own plot it thats one of the one of the problems we also like to project recent trends with you know reason see bias and were going to go i mean one thing thats actually a very big issue you know because were all were using this this is this big you know scary thing thats coming but moores law is sort of slowing down like we and if you talk to people really in deep learning were nowhere close to being efficient were not were not creating anything new so were using this as this big big scary you know you know thing thats out there to says she cheats something politically but im not even sure if thats the right the right endpoint so you know i guess you know going back to you know keeping it simple and letting letting the economy figure that out is 11 important thing and also a story one important is were also talking about federal right were spending a lot of time thinking about federal money because thats where you get very cheap that a lot of these issues could be dealt with much better if we had better local funding and local is. Hes figuring out where to fix problems and you know factory closes and and so we have tracked it all away by sucking all of the money up into the center and then we need these experts to try to figure out on a massive scale thats very complex we need to figure out ways to get things done locally again i think thats been done locally but you have to fund them directly poke that nationally because we dont have municipalities and states issuing currency so it has to be done at the National Level thats funding it doesnt mean it has to be centralized planning thats just the reality right well weve got to go flash round sinclair you happen or wont happen or havent marshall wont happen bad idea josh will happen that idea well thats going to if theres. One thing to keep in mind that the last guy do have basic and common sense science in any show they say 44000. 00 think about that and so next time. The. Little boy is no. Good. You know what is. The way i. Am going to believe little. Sleep. 4 and i dont bother to listen to. Libya peace talks involving the warring sides on World Leaders wrapped up in fielding a new mechanism for ensuring hostilities to resume. Under the stories that shapes the week that falls russia gets a new Prime Minister president putin proposes giving parliament greater powers and i believe the west sees it as a power grab. But then confirms donald trump threatens the terrorist phone call make a little bit didnt visit those itself from the Iran Nuclear Deal germany the u. K. And france this week triggered emotion that could lead to the agreement collapse