IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/27987.html
   My bibliography  Save this paper

Basic income sustainability and productivity growth in cognitive capitalism: a first theoretical framework

Author

Listed:
  • Fumagalli, Andrea
  • Lucarelli, Stefano

Abstract

This paper aims at proposing a first theoretical framework for studying the basic income sustainability. We consider the basic income not only as a tool of a policy to improve living standards and social well-being but, mostly, as the essential requisite to introduce a new stable compromise between capital and labour. Following the French Regulation School approach, we assert that the social compromise between capital and labour is founded on the redistribution of the productivity gains. Therefore we try to trace living standards and social well being problems back to their origins, i.e. the productivity growth. We think that describing the dynamics of productivity means understanding the main features of the contemporary capitalistic production. We first present a survey about BI in economic literature. We then focus on the socio-economic transformation of western countries and propose the term cognitive capitalism (CC) to describe the economic system after the Fordism paradigm crisis, highlighting the strong links between the exploitation of knowledge and the accumulation of surplus. Therefore we investigate the presence of a new type of Kaldor-Verdoorn law in cognitive capitalism (a virtuous circle among BI, increasing productivity - via knowledge and network externalities - output and employment). As a result, we first point out the ambiguous growth circle of the contemporary capitalism. Secondly we highlight that BI is compatible with the new way of accumulation, based on the exploitation of dynamic scale economies. BI increases productivity, through network (externalities) and learning processes and, at the same time, demand, via consumption level. This double result is not always guaranteed. It depends, on one side, on how much BI positively affects productivity, and the greater this probability, the lower the role played by intellectual property rights and the higher the diffusion of network economies (general intellect and social cooperation); on the other side, it depends on the way BI is financed. These results also depend on the assumption of closed economy, in which financial markets play no role at all.

Suggested Citation

  • Fumagalli, Andrea & Lucarelli, Stefano, 2006. "Basic income sustainability and productivity growth in cognitive capitalism: a first theoretical framework," MPRA Paper 27987, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:27987
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/27987/1/MPRA_paper_27987.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Winter, Sidney G., 1984. "Schumpeterian competition in alternative technological regimes," Journal of Economic Behavior & Organization, Elsevier, vol. 5(3-4), pages 287-320.
    2. repec:ant:wpaper:1993012 is not listed on IDEAS
    3. Giovanni Dosi & Christopher Freeman & Richard Nelson & Gerarld Silverberg & Luc Soete (ed.), 1988. "Technical Change and Economic Theory," LEM Book Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy, number dosietal-1988, August.
    4. KÉSENNE, Stefan, 1993. "The unemployment impact of a basic income," SESO Working Papers 1993012, University of Antwerp, Faculty of Applied Economics.
    5. Malerba, Franco, et al, 1999. "'History-Friendly' Models of Industry Evolution: The Computer Industry," Industrial and Corporate Change, Oxford University Press, vol. 8(1), pages 3-40, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    basic income; productivity; cognitive capitalism; crisis; Regulation School; Fordism; Post-fordism; knowledge; learning; externalities; Kaldor-Verdoorn law; general intellect;

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:27987. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.