Lee Jae-myung: "Universal Basic Income Is the Solution to Mass Unemployment Caused by Fourth Industrial Revolution"

Gyeonggi Province Governor Lee Jae-myung, who embarked on his first overseas visit to attend the Summer Davos Forum, argued that universal basic income is the solution to the mass unemployment problem that the fourth industrial revolution will bring.

On the afternoon of the 19th local time at the 2018 Summer Davos Forum held in Tianjin, China, Governor Lee Jae-myung participated in the second day's session titled 'What If: 50% of Today's Jobs Disappear?' and stated, "Mass unemployment due to automation is an inevitable social phenomenon that requires policy intervention," and "In the era of the fourth industrial revolution, universal basic income is like an unavoidable destiny."

Hosted by BBC World News reporter Jen Copestake, the session included Governor Lee along with panelists Troels Lund Poulsen, Denmark's Minister of Employment; Hilary Cottam, Executive Director of British public service design company Participle; and John Hawksworth, Senior Economist at global accounting consulting firm PwC (PricewaterhouseCoopers Consulting).

Governor Lee continued, "Many people hold the view that implementing universal basic income would make people lazy and dampen their willingness to work," and countered this negative perspective by saying, "Since universal basic income provides only a minimum income, it would actually raise quality of life while creating a desire to earn more, thereby motivating labor incentives."

He further cited the example of youth dividends increasing sales among local merchants and argued for the necessity of adopting universal basic income, stating, "Looking at actual cases in Alaska, India, Namibia and other countries that have experimented with basic income, crime rates, unemployment rates, and suicide rates have all significantly decreased."

Governor Lee particularly drew attention by saying, "In the era of the fourth industrial revolution, the key is to redistribute wealth so that a minority does not monopolize it," and "Taxation on unearned income and redistribution methods through which profits obtained from social infrastructure are shared publicly can serve as alternatives." This is interpreted to mean that universal basic income is also meaningful as a solution to wealth redistribution and the realization of social justice, which are emerging as problems in our society.

Additionally, Governor Lee stated, "Due to limited financial resources, implementing universal basic income nationwide has practical constraints," and revealed future plans by saying, "We will first conduct a pilot program in Gyeonggi Province and expand it to various age groups."

The participants actively expressed agreement with Governor Lee's remarks.

Executive Director Hilary Cottam said, "I agree with Governor Lee's opinion that providing minimum basic income motivates work," and evaluated it positively by saying, "The case of Seongnam City, which targeted youth first, was very appropriate."

Denmark's Minister of Employment Troels Lund Poulsen shared views with Governor Lee, who advocated for welfare expansion represented by universal basic income, stating, "Denmark once had a 10% unemployment rate in the cultural sector, but through effective policy intervention, we reduced it to 2%," and "The reason Denmark does not spare investment in welfare is because people are resources and they are the future."

The Summer Davos Forum is an international forum hosted by the World Economic Forum (WEF) together with the Winter Davos Forum held annually in Davos, Switzerland in January. Serving as a venue for exchange discussing various global issues including the world economy, international conflicts, environmental problems, and science and technology, it has been held alternately in Tianjin and Dalian, China since 2007.

The forum, running from the 18th to 20th under the theme of 'Building an Innovative Society in the Era of the Fourth Industrial Revolution,' was attended by 1,500 global participants including Chinese Premier Li Keqiang and Klaus Schwab, Chairman of the World Economic Forum (WEF), as well as ministers, local government leaders, global growth company CEOs, and journalists.

This is Governor Lee Jae-myung's second time attending the Summer Davos Forum. When he served as Mayor of Seongnam last year, he also attended the Summer Davos Forum held in Dalian, China, participating as a panel member in the 'Social Safety Net 4.0' session.