Opinion: As robots threaten our employment, it is high time they contribute towards our retirement funds

Disclosure: The opinions expressed in this article are solely those of the author and do not represent the views and opinions of the editorial team at crypto.news.

The iconic Vulcan greeting, “Live long and prosper,” may sound appealing, but it raises a crucial question: who bears the cost of prosperity? While it’s a straightforward concept in fictional worlds like Star Trek, the real world presents a more complex scenario. In countries like Germany, the burden of providing for retirees falls on working-age taxpayers, with the expectation that future generations will do the same for them. This pension system, known as pay-as-you-go, may seem like a neat idea, but it crumbles under the weight of reality.

The issue lies in declining birth rates and longer life expectancies. With fewer people entering the workforce and more individuals requiring support in their retirement years, a perfect storm brews, putting an unsustainable strain on the working population and threatening the stability of the system.

However, Germany is not the only country grappling with these challenges. Birth rates are declining worldwide, while life expectancies are increasing. This means that most countries will have to confront their unique version of this problem, some sooner than others.

But Germany is not only facing an aging population; it is also one of the most automated economies in Europe. Having witnessed firsthand Germany’s affinity for paperwork, I found it surprising. With a diminishing workforce, why not turn to (metal) friends for assistance? Robots can enhance productivity, accuracy, and consistency over longer periods with less reliance on human labor.

Moreover, Germany is not alone in bridging workforce gaps with robots. While there are concerns about robots taking over jobs, recent research suggests a more nuanced reality. Robots often fill the vacancies left by changing population dynamics, rather than displacing human workers entirely. The impact of automation is more intricate and complex than the doomsayers would have us believe.

That being said, there are instances where robots do impact the job market, especially with the current AI boom taking automation to new heights. There are signs that automation could lead to a decrease in entry-level jobs, as robots replace manual and service positions, from factory workers to baristas. This poses challenges for young people entering the workforce, whether they are seeking part-time jobs at Starbucks or their first full-time roles after college. The situation could worsen as powerful AI becomes more integrated into robots.

This brings us to the real-time bomb, particularly for countries with pay-as-you-go systems and aging populations like Japan, Italy, and Spain. On one hand, the number of retirees is growing due to improved healthcare and longer life spans. On the other hand, the workforce is shrinking, and the job market is contracting as robots generate more value. Robots, however, do not contribute to pension funds.

So, who bears the financial burden in this situation? Can androids dream of paying taxes?

Hypothetically, there are a few potential solutions. The authorities could increase taxes, ensuring that younger generations are trapped in an economy where they can barely afford anything. However, the pressure on the workforce is already immense, and raising the retirement age has proven to be a contentious measure.

Alternatively, we could hope that robots generate an abundance of tangible goods, such as food and infrastructure, and share them with local communities for free. However, this approach would grant traditional corporations and their questionable goodwill even more power in a society where they already wield significant influence. Moreover, multinational companies, which dominate the automation industry, often manage their cash flows and taxation in ways that benefit them instead of the communities in which they operate.

Hence, while self-driving cabs in San Francisco may not count as androids dreaming of electric sheep, it is reasonable to consider implementing some form of taxation. As machines contribute more to the economy’s value creation, everyone should reap the benefits, not just those who own the machines. We need a new paradigm for distributing value.

As automation accelerates, its benefits must be distributed more equitably. Everyone should have a stake in the new automated economy, often referred to as the “Economy of Things.” However, this distribution should not grant a specific party or entity an outsized influence over society. This is one of the drawbacks of universal basic income, which places governments in the role of sole providers for thousands, if not millions, of individuals.

A portion of the revenue generated by machines should be distributed to the communities affected by their presence. This simple idea can have a profound impact. Currently, centralized multinational corporations enjoy the lion’s share of the benefits. With a new distribution model, everyone would receive a piece of the pie, and every job replaced by a robot would translate into more financial resources for humans. The game would no longer be zero-sum; instead, it would be a positive-sum one, akin to a regenerative economy.

To achieve this, we must embrace blockchain technology as the foundation for automation. By using blockchain networks that grant everyone a share and a voice, we can ensure shared ownership. Blockchains are inherently built for shared ownership and can be programmed to automatically allocate a portion of every machine’s revenue to the community it serves. Just imagine a future where automation frees up more time and resources for individuals, reminiscent of science fiction novels.

Adopting blockchain technology requires a seismic shift, but half-hearted measures will not be enough to avert the crisis at hand. As the world ages, AI-powered robots will inevitably step in to compensate for the shortage of human labor. Without decentralization, individuals will either struggle to make ends meet or become dependent on the mercy of governments or corporations. On the blockchain, everyone becomes a stakeholder in an innovative economy that grows each day.

When done right, automation can be the solution to our demographic crisis. By combining it with blockchain technology, we can create systems where AI-driven automation benefits everyone, not just the privileged few. This ensures that as the world ages, it does not also hunger and impoverish its population.

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Max Thake is a co-founder of peaq, a blockchain platform for real-world applications, and EoT Labs, a software development and incubation organization supporting open-source projects focused on the economy of things. Max is also a Fellow at the Sigma Squared Society, a global community of founders under 26.