Of 'Minimum Income Guarantee' of India, 'Minimum Wage Increase' of US and AI capitalists.
A case on how two recent developments in US of 'Minimum Wage Increase' and promise of 'Minimum Income Guarantee' by an Indian political party would precipitate AI and help capitalists.
Politicians and Capitalists world over think alike.
And though politics make strange bedfellows, a capitalist sleeping with a politician or vice-versa is as natural as day and night. This transcends borders and boundaries.
Leader of one of the India's leading political party just announced that everyone would get a guaranteed minimum income, and no one would sleep hungry. Wonderful to say the least, specially for people like me, whose only thought revolves around, from where the next meal would come from.
Free from the tyranny of stomach, a man can achieve almost anything.
Not very similar to India, but another interesting debate going on in US has been of an increase in minimum wage. The federal minimum wage has not increased since 2009 till 2018. 20 states and 24 cities finally agreed to increase the minimum wages at differing level and it has reached as high as $16 in a state.
How do we intersect the above two piece of news with impending AI or Artificial Intelligence revolution?
Food and Jobs security make or break governments. A capitalist is not concerned with either of them, though. A capitalist is in tango with the politician though. And herein, lies the conflicting interests.
If corporations and companies adopt wide-spread artificial intelligence, there are going to be job losses and which obviously does not augur well for the corporate.
So how the two entities resolve the potential trillion dollar question?
In case of A) in India: If the government announces minimum income guarantee (no one knows how the government would fund this, over and above present deficit, but there is no harm in announcing it), there would be less backlash, over next few years as lay-offs start happening both in white and blue collar jobs.after all, no is going to die with hunger. India has not known 'Food Stamps' but then, we might have just arrived at the turn.
So the government implements "Minimum Income Guarantee" and Corporations and companies adopt cheaper way to do business by like employing AI agents / bots and algorithms.
Politicians are happy, they get power and Corporations are happy, because they have more profit. Food stamps ensure that, no one is going hungry. Everyone is happy.
In case of B) in US : A country which is the leader in AI and is already approaching the job loss state due to AI, an increase in minimum wage ensures that politicians become popular, but also simultaneously means that companies have a very valid point to dismiss humans and employ algorithms. After all, companies are not meant for welfare, they are meant for profits. Whichever way they come. Countless examples from GAFA consortium.
Deduction: Both Minimum Income Guarantee and Minimum Wage Increase in case of India and US respectively, would only precipitate the adoption of artificial intelligence or rather Machine Learning and algorithms, favouring corporations and politicians and displacing millions of jobs.
Rule of the thumb is whatever favours a politician and capitalist both, is highly detrimental to common man.
India has a still long way to go, since promises by politicians are meant for elections only, but in US in near short term the effect of Minimum Wage Increase is going to reflect on the jobs, more so when Trumpism puts US economy in doldrums, following China.
Most probably they all are preparing for the impending scenario by announcing these initiatives. Depression or slowdown, a politician has to be in power and a capitalist has to run his company.
Welcome to AI, the fourth industrial revolution!