Monday, 19 August 2019

Maybe Andrew Yang is correct

One of the Democratic president candidates, Andrew Yang, is not as popular as Joe Biden, Elizabeth Warren or Bernie Sanders is but I am very interested in one of his proposals. He proposes that if he is elected, he is going to give every American $1000 a month. It seems that he is buying votes; however, the reason he gives for this policy proposal is very reasonable. He thinks that AI is going to replace the majority of our current jobs and people need to be compensated.
Such future is very likely and even it may come sooner than we estimate, since the rate of AI replacing human jobs is likely to accelerate and we are not not finding more new paid jobs for humans. If people are out of work, they will not be able to afford their previous lifestyle, so the demands for all kinds of goods will significant decrease. When the population does not have sufficient incomes, the firms are not able to earn as many profits as previously. Under such circumstance, it may be reasonable to consider Andrew Yang’s proposal.
I think his proposal has one major issue, which is where the money comes from. He suggests that the money coming from the firms which benefit from the development of AI; however, if the firms no longer have sufficient numbers of consumers, they will not earn sufficient profits to pay for the $1000 plan.

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