Do Androids Dream of Evading Tax?

Before we delve into robots and robot taxes, let us digress for a minute.

In ancient Greece, slavery was not a crime. In fact, it underpinned the very fabric of Greek society and played an integral role in its functioning. Slaves were status symbols for some, and mere tools in a workshop for others. Deemed less than human, slaves were thought—by the Greeks—to be better off in servitude. Without their masters, they were believed to have no purpose.

The Greeks despised labor. They saw work as a curse, reflected in their word for it: Ponos, derived from the Latin poena, meaning sorrow or suffering. Manual labor, in their view, was meant for the "mindless" slaves, while better men were to devote themselves to noble pursuits—philosophy, art, warfare, commerce, and above all, politics.

Paradoxically, although slavery was a terrible calamity in human history, it enabled many of the advancements we now admire from ancient Greece. With slaves tending the land and managing manual labor, Greek citizens were free to participate in the democratic process—because their democracy was a direct one.

Now, imagine if a similar option existed today: the freedom to pursue one’s passions without cruelty or subjugation—of humans or any other life form. Would we take it?

The answer is a resounding yes. But who keeps society functioning in such a scenario? Robots.

We are not yet advanced enough to create robots capable of replacing human labor entirely—but let us assume, for the sake of argument, that we are. In such a world, we confront a new set of challenges.

Not everyone will be wealthy enough to purchase robots. If capitalism continues to dominate, an elite class will inevitably emerge, comprising:

• The bourgeoisie—owners of the means of production who can afford to replace human labor with machines.

• The wealthy salaried class—who, though not owning production means, still have enough capital to innovate or adapt.
  

Both these groups might sail through the transition. But what about the working class? Those without capital, property, or alternative employment?

There’s another group too: small business owners who possess production means but not the capital to buy robots. As the working class loses jobs and unemployment rises, labor supply may exceed demand. Wages could fall drastically—possibly below the cost of employing robots. That’s basic economics.

The Consumption Crisis

A large jobless population means shrinking disposable income, leading to a decline in consumption. As spending drops, even the bourgeoisie will feel the pinch. Some firms will become unprofitable and go out of business.

History shows us that the elite prefer to maintain the status quo. But how can they, when consumers have no money?

Simple: give people money to spend.

It sounds ridiculous—paying people to keep buying your products—but it’s not so far-fetched. If a robot takes away a human's job, and that human has no alternative employment or skill, everyone loses.

Now, if the productivity of robots were taxed, that revenue could be used to upskill displaced workers—helping them become productive again. In the short term, this eats into company profits. But in the long term, it saves the firm—and the economy.

Returning to Noble Pursuits

What would people do after upskilling? Here's where we take a page from the Greeks: with basic needs secured, we could pursue philosophy, art, science, exploration, and more.

Alternatively, the state could provide a Universal Basic Income (UBI)—ensuring everyone has money to spend, regardless of employment. And where would that money come from?

Once again: tax the robots.

Of course, if we step away from our initial assumption and imagine a socialist society instead of a capitalist one, these problems might not exist in the first place.

But hey—why abandon sweet, sweet capitalism, when human-like robots are still far from reality?

P.S. The title is inspired by the novel Do Androids Dream of Electric Sheep? by Philip K. Dick, on which the film Blade Runner is based.

– Sai Kumar M