Previous industrial revolutions saw large swedes of wealth begin to concentrate around those that spearheaded the various technological developments, driving inequality alongside economic development. This occurred as a result of a capitalistic society, though generally standards of living increased. In the same period, we saw socialism decline as a result of unsupportive GDPs and a gradual decline in living standards. Though this is not true for all communistic or capitalistic societies, there still is a large correlation when examining the data.
In my opinion, we see socialism fail because of the centralization of power with little to no transparency practically undertaken. This centralization with no transparency breeds political elites in socialistic societies and industrial elites in capitalistic societies. In practice, there are no societies that are completely based on socialism or capitalism and generally are a mix of a few philosophies with a lean to a specific type. Unfortunately for the world, this means that every country has both commercial elites and political elites working together to increase GDP and distributing that as they decide. This distribution of society’s production occurs with little transparency or meaningful consultation.
Financial services 4.0 sits at the heart of the solution were the sector must move its philosophy from low-cost services to income generative services. The blockchain sits at the heart of the solution with the ability to remain fully transparent and incorruptible, whilst ensuring privacy and 100 % accountability. Our belief is that the holy grail of blockchain is Universal Basic Income or known as UBI colloquially.
Blockchain-based UBI will not simply be managing income distribution, but more so creating income to distribute. By decentralizing the power whilst keeping the terms of the smart contract transparent and immutable, we can now as a society manage universal income programs without fear or favor. Universal Basic Income remains one of the most ambitious social programs encompassing all adults and impacting our entire society. Due to the size and scope of UBI, its successful management via the Blockchain will open up opportunities in other social programs. The imputable, transparent and decentralize smart contract features will result in existing programs budgets’ going further due to no opportunity for corruption as well as lower operational expenditure requirements.
There is an increasing number of countries experimenting with fiscally funded UBI programs. We say experimenting, due to the full impacts on economic behavior as well as economic development is yet to be fully understood. Most Economist is of the belief that UBI is simply unaffordable except for countries with ludicrously large GDP’s per capita which are few and far between. Politician’s simply using the term to gain political support around an idea they simply cannot deliver on considering budget crippling deficits prior to new social programs. From this, we can easily deduce that there is simply no budget and the private sector will have to fund UBIs, or at the very least contribute willingly and more importantly, meaningfully. For this to happen various Financial services 4.0 companies would have to take over and dominate sectors while distributing the bulk of the derived income to society.
Others are more concerned around will people be interested in work if they have a secure income for life? The first point here is that people should love what they do and be given an opportunity to find out what that is. The second, and more important point is simply if we achieve complete automation in 125 years or partial automation in 15 years, the countries’ masses, especially in rural areas where the effects will be the worse, will not have an opportunity to maintain a reasonable standard of living and will have no other option but to revolt against a system that in essence, is killing the population off, one technological advancement at a time. Companies, Governments, and society at large need to acknowledge the coming storm and begin the production of our required financial provisions through the digital space know at Financial Services 4.0.