Essay: FUMAGALLI, Andrea & LUCARELLI, Stefano (2008), ‘Basic Income and productivity in Cognitive Capitalism’, Review of Social Economics, Vol. LXVI, issue 1, March 2008: 14-37.
Andrea Fumagalli and Stefano Lucarelli have written an important essay, which explains the basic income, as a payment by society for the increased positive externalities of networked-based social innovation.
It is a paper for experts, policy makers and economists, but of interest because of this key argumentation. Below the abstract.
Contact one of the authors at [email protected] for a draft copy.
Abstract:
“In this article basic income (BI) is not considered merely as a measure to raise both living standards and social well-being. Rather, the authors argue that it should be seen as an indispensable structural policy for achieving a healthier social order governed by a more equitable compromise between capital and labour. Embracing the French Regulation School approach, Fumagalli (University of Pavia) & Lucarelli (University of Bergamo) maintain that such a compromise is founded on the redistribution of the gains of productivity. In advancing the argument, they focus on the socio-economic transformation that has overtaken the Fordist paradigm within Western Countries and propose the term Cognitive Capitalism (CC) to describe the economic system. The authors address the relationship between the exploitation of knowledge and the accumulation of surplus, pointing out that such a process is based on the exploitation of dynamic scale economies. Their analysis highlight the ambiguity concerning the growth circle of contemporary capitalism. According to Fumagalli & Lucarelli, BI is compatible with the present form(s) of accumulation, as it increases productivity, through network and learning processes whilst increasing demand via levels of consumption. Such a result is not always guaranteed. It depends, on the one hand, upon how much BI positively affects productivity; 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) and on the other, it depends upon the way BI is financed.”