A state service provision could help our society cope with a changing job market. And best of all: it could be fiscally neutralby Henrietta Moore / October 13, 2017 / Leave a comment
Nearly 90 years ago, John Maynard Keynes made a much-quoted prediction. In his 1930 essay, Economic Prospects for our Grandchildren, he set out the view that, by 2030, technological progress would have raised productivity so much that people would be able to meet their essential needs in a 15-hour working week.
He was perhaps the first economist to explore the implications of a future of “technological unemployment”. For Keynes, this was a positive development: Freed from the necessity of toil, mankind could devote itself to nobler causes than “detestable” money-making, such as science and the arts.
Well, it hasn’t quite worked out like that, has it? While it may be true that the grinding, absolute poverty of the Great Depression has largely been banished from Western societies, the need to work remains as strong as ever. Indeed, the embrace of neoliberal economic policies since the 1980s, particularly in Britain and the United States, combined with the economic shock of 2008, has led to stagnant or falling real wages for the majority of workers. In Britain alone, around 14 million people—more than one in five—still live in relative poverty.