At that moment politicians, economists and sociologists in different countries are discussing the possibility of different models and grounds for payment of the guaranteed minimum income. The basic concepts of basic income models come from the harmonization or negation of defined conditions. Unconditional basic income can vary according to age, but without any other conditions, so everyone of the same age will receive the same basic income, regardless of gender, employment status, family structure, contribution to society, housing cost or anything else. Basic income can be paid automatically weekly or monthly to a Bank account or similar. Basic income is not verifiable and cannot be withdrawn or changed depending on changes in other earnings. The basic income is paid individually and not to the family or household. Every legal resident has the right to receive basic income, subject to citizenship and residency requirements. The guaranteed income may be sufficient or full to meet basic human needs above the poverty line, and if it is below this amount, it is partial. Similar characteristics of basic income have social security systems such as negative income tax, in which the payment is gradually reduced with an increase in labor income. The main income can be realized at the national, regional or local level. Options are proposed to make payments not only to their fellow citizens, but also to people in the border areas in order to minimize the cost of combating illegal migration.
As a financial source of basic income is proposed to use various other taxes, the reorientation of losing the relevance of the budgetary and non-budgetary social benefits, environmental taxes and natural resource rents, seigniorage, also directly state the issue.
The advantages of the implementation of basic income is considered to be: solving the problems of poverty and access to social security; reducing economic inequality; reducing crime; reducing the cost of social services, health care and administration; as well as increasing freedom of choice for individuals, the development of creativity, overcoming the consequences of the mass loss of jobs due to the development of robotics, etc.
The main objections to the concept of unconditional basic income are focused on economic and legal arguments: the need for high costs; the withdrawal of money from circulation due to the desire to accumulate; the use of income for illegal purposes; the influx of migrants; fears of reducing the incentive to work (or encouraging dependency), which reduces employment and productivity in society, etc.
Around the world, both developed and low-income countries have conducted and are experimenting with the introduction of basic income. In almost all cases, there was a positive impact on reducing crime, increasing satisfaction, increasing social activity. Many of the concerns raised by critics of basic income have not actually been met.
Alternatively basic income, we propose the following concept of common distribution: Guaranteed Secured Expense – GSE (The Basic Guaranteed Secured Expense, The BGSE). The basis of our Communist concept is expenditure – the reverse principle of income [1].
The payment of income, in fact, means a financial separation from the company, which remains as if by itself, and the recipient in some sense receives the right to dispose of such a monetary gift at its discretion, albeit in the conditions proposed by the company. Income is characterized by the assignment in which the property is brought about.
In absolute terms, money is a recorded record, reproduced according to the established rules on any media, up to banknotes and coins. For legal turnover according to the established rules, the carrier itself is important, and for the conversion from one medium to another, an intermediary is required, for example, a Bank or its payment terminal, or a mobile application.
The capitalist economic record begins the relation with an obligation to subsequently repay the money, that is, arises from the money debt, and subsequently this relation ends. This is the first gap that is based on a monetary obligation. The payment of such debt or, conversely, bankruptcy with the consequences of debt write-off break the economic connection, which was formalized only in monetary terms. That is the capitalist monetary circulation based originally on the exclusion and the challenge of trust in monetary transactions.
Communist economic record (at this stage digital, strictly formalized in the appropriate software environment) initially converts (levels) money debt into executable commodity and labor obligations, which at the time of recording are already the subject of the contract. At the same time, the Communist record requires constant real interaction, both in the formation of needs and in the actual performance of obligations. Since the proposed concept of the advance payment of the relations of production, in the course of economic circulation, the relationship of the individual with the economic system does not terminate. On the contrary, the provision and fulfillment of the paid need at the moment gives rise to a new need to create a need for the future. Thus, individual economic turnover does not slow down due to monetary appropriation.
The basis of the primary labor function, providing GSE, laid information work, for which it is necessary to have the minimum skills of such a function. At the current level of development of factors of production, information on needs can be easily collected and combined through digital applications and Communicator programs – smartphones, computers and other means of interaction. Delivery and reception of information about the needs is carried out within the limits of production capacity.
25-30 thousand days – the average life expectancy of a person in a given period of time on planet. In order to ensure and increase the duration of a comfortable life, a maximum of ten needs per day should be recognized, which should be met. Thus, we find that the total number of needs for life is 250-300 thousand, which can be reduced to a single ten-factor function needs for each day, for which there is an accounting tool with total information coverage of all needs.
In the Modern World of 2019 and beyond, it is proposed to establish a permanent network of centers for the reception and processing of chain contracts, both in the form of calculations and in other suitable forms.
We take as a basis the full inclusion of the population of the planet Earth: eight billion people. We establish, for example, a guaranteed digital payment of costs in the current price order for each person to pay for the needs in the amount of $ 1,000 per month. Everyone has the right to use it, having fulfilled the primary labor function. The opportunity to earn more remains, since the implementation of this concept is actually additional to the existing turnover. The annual financial requirement of the guaranteed secured expenditure is 96 trillion digital dollars (8 billion people x 12 months). x 1000). Digital emission can be the subject of a political decision, and is carried out as a result of private, bank or investment conversion.
Since the target digital payment of GSE to each person is intended for production that meets his needs, in the simplest conditions, this amount is then transferred to the service sector, then to the production sector, and then to the production sector of means of production, and eventually to the sector of raw materials production and resource extraction. Thus, the total circulation in the sphere of consumption for the year in this case forms a gross production of 384 trillion dollars (96 * 10^12 * 4 levels of production depth), if you ignore the very first transaction of payment of the expense. Although not only vertical but also horizontal transactions and their combinations are included in gross production, their order is not taken into account, since not everyone can distinguish from what level his supplier of goods, works or services.
Requirements can be formed on the basis of standard contracts, which allow the identification and selection of suppliers. At the same time, any suppliers (manufacturers) can act both on the basis of public offers and their special contracts, which may differ only in their legal content, but imply the transfer of the right to a tangible, intangible and financial object. Technically speaking, it's just a digital recording. The grounds for such a record are of legal significance.
This digital money supply, after created the digital revolution of the set of transactions gross production, deposited in the form of entries on the profit on specially organized by the accounts of manufacturers and suppliers minus the required tax payments and fees, providing further circulation of digital cash have appeared about the next production cycle. Access to accounts can be provided by standard available funds. At the same time, profits may not accumulate, but immediately go further into circulation for the implementation of other needs of deep scrolls. Instead of taxes in the implementation of this concept, it is possible to provide a small single operating fee from manufacturers in the amount of 1 to 5 % for the maintenance of the service system. In any case, these are just records, but they form a use value.
The available limit of expenditure for each individual may vary, for example, decrease due to under-consumption, or increase due to emergency. There is a possibility of a complete abandonment of pension and social insurance schemes, since basic and necessary needs can be met unconditionally, but not financially, but in kind with specific obligations. Part of the provided flow rate can automatically be credited to the respective account of the suppliers of public services previously issued invoices, which leads to a reduction of the share speculation and prevent defaults in this market.
In order to implement such a concept, focused on each citizen – consumer of guaranteed secured expenditure, it is necessary to ensure the participation of producers and suppliers in the implementation of such a concept, to create a proper servicing technological and logistics infrastructure on the basis of trade networks, which still requires a political decision. Participation in the GSE for the consumer is a common right, which is certainly respected in the performance of the primary labor function directly or through the operator.
Imagine that every village has its own inpatient unit of technological megapolis – service center operations that provide linear, both direct and through operator, communication between the consumer and the mass producers, though located outside of the village. After providing the relevant information in the form of a calculation or other suitable contract system with the indication of the service provider, it enters the processing in a single center, where the accumulation and distribution of information to establish the entire cycle from production to delivery to the end user, who performed such a primary labor function.
To calculate the service capacity of the storage device of one supercomputer, taking into account the cost of objectively necessary information of 1 megabyte per month per person, the annual need for virtual memory will be 96 (X10^15) petabytes (8 billion people x 12 months. x 1 megabyte), which can either be overwritten or stored in the archive. To determine the minimum computing power, we define the condition of 10 payment transactions per day per person, consisting of 100 operations of the operating system itself, the daily number of operations for each next day will be eight trillion.
To calculate the power of the computer, divide the number of operations by the time (24h. x 60m. x 60s.) and get 925 592 592,6 operations per second (flops). We introduce the coefficient of complexity of the operating system equal to (1000), which multiply the obtained value, we get 926 x 10^9 operations per day (926 Gigaflops).
The power of modern supercomputers are calculated Petaflops (10^15) and are: Tianhe-2 (2013) — 33,86 petaflops; Sunway TaihuLight (2016) — 93 petaflops; Summit (2018) — 122,3 petaflops; and domestic T-Platform A-Class Cluster (2014) — 1,85 petaflops. Thus, the created power reserve of only one modern supercomputer for servicing the system of Guaranteed Secured Consumption significantly exceeds the required one by more than a thousand times, which makes it possible to talk about the possibility of universal application of this concept, including on a planetary scale to ensure international economic communications.
Guaranteed expenditure allows for full clarity and transparency of economic relations, does not pay attention to the quantitative need for money, which automatically solves the capitalist problems of the economy, the contract and freedom. The capacity to meet needs is limited solely by the production capacity, which can now be increased or reduced fairly quickly. The gross payment to mass balanced production and consumption, thanks to the form of its execution, completely frees citizens and organizations from many optional non-productive functions that prevented the growth of the rate of production turnover and limited distribution. The proposed concept finances the production of only what is consumed.
The conditions of consensus between labor and capital have been found. The need for such an experiment is clearly ripe and has a strong demand in the world community with a fairly high level of poverty. Issues of formation and debugging of infrastructure are discussed in a separate order. Social and political consequences can only be the subject of discussion according to the results of practical implementation of the concept.
I invite everyone to take part in the creation of a new Communist system of economy in which all basic needs will be paid for.
1. Marchenko D. V., Filippovskii M. L. Communism. Economicon. Chain reaction in the development of productive forces. Technology and tools. Scenarios and consequences. Applied economic format./ Ed. M. L. Filippovsky // The Foundation of Innovative Economy. – Krasnodar: SP Volnaya N. N., 2019. – 272 p. ISBN 9785902830566.