Humans are the only species that need money to survive

Michael Haines | Sat Mar 12 2022

“Humans”, As Scott Santens says, “are the only species that need money to survive”.

For most of human history, our birthright was to live off the land.  The growth of nations, empires, and colonization, coupled with the industrial revolution in the West over recent centuries, has whittled away local production and food distribution by households on common land.

As a result, most traditional ways of life have been replaced by 'private property rights' and 'money'; and ‘paid work’ has become essential to the production system.

This system, together with global trade, as well as untold inventions, have been a boon for a great many; extending lifespans, and providing a standard of living for ‘the average person’ unimaginable to emperors of the past – as Hans Rosling has so eloquently visualized.

In the process, a few have become emperors of their own commercial realms, where a ride in space is now the measure of their wealth.

Again, Hans Rosling has beautifully illustrated that wealth distribution is not a static reality, but a journey that most of humanity is on. Though, as he also explains, there remain wide disparities even as the ‘average’ improves.

The main problems are:

  1. that we have been so successful in extending human life before we have developed the systems of government to adequately protect the commons. This requires a recalibration of our governance structures so both ‘government’ and ‘the market’ operate in humanity’s long term best interests, as well as a speedy shift to a circular economy to protect the biosphere upon which all life depends (topics for another day), and
  2. not everyone has a ticket to ride…

Around 12-14% of people in the developed world have been consigned to poverty (in some cases extreme poverty, including homelessness); simply because they lack both money and property - for no other reasons than the accident of their birth, and the vagaries of life!

In Australia, we are talking over 3 million people, mainly single women with kids, sick and injured, aged and disabled, their unpaid carers, and those between jobs - all of whom have no savings or family support. It includes 17% of all children.

The overall percentage has changed little in Australia, despite 30 years of sustained growth, even as the people in this group constantly change (the young grow up, the sick and injured get better, the disbaled age and the old and die, while their unpaid carers find other work along with the people who are between jobs)... only to be replaced by a new cohort.All these facts together indicate it is a 'system' problem, rather than a case of 'moral failing'. What drives people into poverty is not a lack of character, it is a lack of cash resulting from divorce, accident and disease, age and unemployment, as well as the need to care for your family without pay.

Australia is a rich country. We have the resources, energy, and productive capacity to ensure everyone’s basic needs are met. All that’s missing is sufficient money in the hands of every person. This is bad for them, bad for business, and ultimately bad for society.

A Universal Basic Income (UBI) will give everyone the money they require to express their basic needs in the market.  This alone will eliminate ‘systemic poverty’, while giving low-paid workers an effective wage rise (without cost to employers).

Importantly, it will provide some monetary recognition for the immensely valuable unpaid work done (mainly by women) to raise our children, care for our sick and elderly, and to strengthen social bonds.

It will also underpin creative and entrepreneurial activity, allowing ambitious Australians from all backgrounds to succeed, or fail forward and learn from their mistakes.  The abyss of poverty not only punishes people for trying, it makes the next attempt so much harder.