Damus
JurajπŸ΄πŸ’›πŸŒ˜ profile picture
JurajπŸ΄πŸ’›πŸŒ˜
@Juraj
When AI takes the jobs, won't Universal Basic Income β€” or its more ambitious cousin, Universal High Income β€” cushion the landing? It sounds intuitive: automation creates a vast surplus, so we redistribute it and everyone's fine. But ask a single question β€” who actually pays for it? β€” and the whole architecture starts to crack. Because the ultra-productive AI companies sit in San Francisco and Seattle, while the social cost of disruption lands on Slovakia, Eastern Europe, and most of the world outside the Anglo-American core. The tax base is in the wrong jurisdiction. And that's only one of the problems. The piece walks through the four proposed ways to fund UBI through the lens of Austrian economics, and shows why each one either fails or distorts β€” especially for small open economies.

https://juraj.bednar.io/en/blog-en/2026/07/09/who-pays-for-ubi-when-ai-takes-the-jobs/
31❀️2❀1πŸ”₯1
protom · 2w
Excellent piece. The reason why the EU and soon all other governments do the opposite is that they are rent seekers too. Collapsing income numbers is also collapsing tax revenue.
Hurvajs Rumcajs · 2w
Yep, I was thinking about the same thing. How could possibly UBI work in countries that can't tax AI companies, because they have none? Also AI will be very good and quick at tax evasion. Much better than any company today. Now imagine the open source AIs being very good as a tax evasion adviser. T...
Theo Hague · 2w
There is another way to pay for it; cutting most of the existing social expenditures and replacing it with a UBI. I highly doubt that is feasible though.