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Open AccessArticle

Universal Basic Income and Inclusive Capitalism: Consequences for Sustainability

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School of Public and International Affairs, Virginia Tech, Blacksburg, VA 24061, USA
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College of Law, Syracuse University, Syracuse, NY 13244, USA
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Technology and Law Program, Massachusetts Institute of Technology, Cambridge, MA 02139, USA
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Sustainability Program, Harvard University, Extension School, Cambridge, MA 02138, USA
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Author to whom correspondence should be addressed.
Sustainability 2019, 11(16), 4481; https://doi.org/10.3390/su11164481
Received: 20 June 2019 / Revised: 4 August 2019 / Accepted: 12 August 2019 / Published: 19 August 2019
(This article belongs to the Section Economic, Business and Management Aspects of Sustainability)
Over the past forty years, income growth for the middle and lower classes has stagnated, while the economy (and with it, economic inequality) has grown significantly. Early automation, the decline of labor unions, changes in corporate taxation, the financialization and globalization of the economy, deindustrialization in the U.S. and many OECD countries, and trade have contributed to these trends. However, the transformative roles of more recent automation and digital technologies/artificial intelligence (AI) are now considered by many as additional and potentially more potent forces undermining the ability of workers to maintain their foothold in the economy. These drivers of change are intensifying the extent to which advancing technology imbedded in increasingly productive real capital is driving productivity. To compound the problem, many solutions presented by industrialized nations to environmental problems rely on hyper-efficient technologies, which if fully implemented, could further advance the displacement of well-paid job opportunities for many. While there are numerous ways to address economic inequality, there is growing interest in using some form of universal basic income (UBI) to enhance income and provide economic stability. However, these approaches rarely consider the potential environmental impact from the likely increase in aggregate demand for goods and services or consider ways to focus this demand on more sustainable forms of consumption. Based on the premise that the problems of income distribution and environmental sustainability must be addressed in an integrated and holistic way, this paper considers how a range of approaches to financing a UBI system, and a complementary market solution based on an ownership-broadening approach to inclusive capitalism, might advance or undermine strategies to improve environmental sustainability. View Full-Text
Keywords: universal basic income (UBI); effective demand; inequality; environment; sustainability; inclusive capitalism; binary economics; capital ownership; fuller employment; worker ownership universal basic income (UBI); effective demand; inequality; environment; sustainability; inclusive capitalism; binary economics; capital ownership; fuller employment; worker ownership
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Hall, R.P.; Ashford, R.; Ashford, N.A.; Arango-Quiroga, J. Universal Basic Income and Inclusive Capitalism: Consequences for Sustainability. Sustainability 2019, 11, 4481.

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