Leah Hamilton: “”Human again”: The (unrealized) promise of basic income in Ontario

Leah Hamilton: “”Human again”: The (unrealized) promise of basic income in Ontario

Leah Hamilton (left) and James P. Mulvale (right)

 

Leah Hamilton and James P. Mulvale have researched into the implications of the truncated basic income pilot in Ontario, Canada. From a set of controlled, semi-structured interviews, five participants agreed to subject to the procedure. These participants had experienced both conditional welfare programs such as the Ontario Works and the Ontario Disability Support Program, and were beneficiaries of the Ontario basic income pilot until it was terminated by Doug Ford’s cabinet.

 

The conclusions show that the basic income pilot had effects that contrasted with those experienced by the participants in the traditional social security programs. So, while in the latter, participants felt trapped in “a cycle of precarity and dependence”, the former made them feel “human again”, since “they had always desired to be members of the workforce and gain financial independence”. The study’s conclusions also match other research efforts comparing traditional welfare with basic income type of experiments, which reinforces those same conclusions. It also refers the need to consider potential hidden savings in health costs, and additional economic activity brought by basic income policies. Those cost savings and potentially larger tax collection must then be a part of any serious effort to finance basic income, particularly in high-income countries.

 

The following abstract accompanies the article:

Neoliberal social assistance programs are broadly seen as inadequate and intrusive. This phenomenological analysis compares social assistance in Ontario, Canada, and a recent pilot project to test basic income as an alternative method of enabling economic security and social participation via qualitative interviews with pilot recipients who had previously received traditional assistance. Results indicate a desire to be financially independent, but that the conditionality of traditional programs had negative repercussions including work disincentives and deleterious bureaucratic hurdles. Respondents reported that basic income has improved their nutrition, health, housing stability, and social connections; and better facilitated long-term financial planning.

 

More information at:

Leah Hamilton & James P. Mulvale (2019) “Human Again”: The (Unrealized) Promise of Basic Income in Ontario, Journal of Poverty

Leah Hamilton, “Why Welfare Doesn’t Work: And What We Should Do Instead”, Basic Income News, June 29th 20128

United States: Alaska’s desperate governor considers massive cuts to university budget to keep Dividend

United States: Alaska’s desperate governor considers massive cuts to university budget to keep Dividend

Mike Dunleavy, sitting on top of an oversized Alaska Permanent Fund Dividend check. Picture credit to: Anchorage Daily News.

Basic income yes, but not at any cost. The alarm comes from Alaska, where governor Mike Dunleavy has announced cutting his 2020 state budget by as much as $410 million, one-third of which will fall upon the University of Alaska. To the University, that represents 41 percent of its own annual budget, which means that, if applied, these cuts would render the state’s university unrecognizable. Dunleavy calls this move a “policy choice” linked to his professed promise to increase the Permanent Fund dividend Alaskans benefit each year.

Arguably, consequences for the Alaskan economy, and particularly for the state university, would be devastating.

The University President, James R. Johnsen, has stated that this “will strike an institutional and reputational blow from which we may likely never recover.” And the implications for the wider Alaskan economy and even throughout the world may be far reaching since research has shown that investing in universities has considerable positive effects on the economy, and also because the University of Alaska is a core centre of research for Arctic issues. This is particularly important these days, in the middle of a climate crisis).

These budget cuts from Dunleavy’s Office are, however, rooted in a deeper rationale and tradition. That is because politics in Alaska of late have been largely tied to oil money, and the collection of taxes has been scarce, or nonexistent.

Michael Howard, professor at the University of Maine and specialist in basic income related policies, has stated on Facebook:

“A better framing of the problem in Alaska would include Alaska’s lack of an income tax, reliance on oil revenue to fund state government, and the steady decline of the oil revenue. Alaskans don’t have to abandon the dividend in order to fund the University. They just need to pay income taxes like people in most other [US] states. However, this story does vividly illustrate that universal cash payments in practice always need to be evaluated in comparison to the competing policies for government spending and the budget constraints. Slashing the university budget by 41% ought not to be an option.”

More information at:

Cas Mudde, “Alaska’s governor is trying to destroy its universities. The state may never recover”, The Guardian, July 6th 2019

United States: Unstoppable Andrew Yang carries basic income to the national debate stage

United States: Unstoppable Andrew Yang carries basic income to the national debate stage

All ten candidates at the Democratic Deabte for the United States Presidential elections.

 

“It is not left, it is not right, it is forward”. Andrew Yang drank from Scott Santens famous words, to finish off his contribution to the Democratic Debate to the United States Presidential elections in 2020. The political debate, held on June 27th 2019, featured all 10 Democratic Party candidates who qualified to be in the televised debate (more than 65000 donors). Yang’s Freedom Dividend was voiced, for the first time ever, on a US national debate stage, shortly described as a 1000 $/month for every adult citizen, unconditionally.

 

Although severely time restrained to hush in his ideas – he was only allowed 2 minutes and 50 seconds of speaking time, the lowest of all candidates present in the debate – Yang succeeded in the attempt to plant the seed of basic income among the American People. People are definitely interested in basic income, or at least the basic income as Andrew Yang conceives it, considering the spikes in views of his intervention clips, posted by NBC, which surpassed those of any other candidate. Soon after the debate, Google searches for “basic income” spiked to about 300% of the average search results for those terms.

 

In March, Yang’s candidacy had just surpassed the 65000-donor mark; now it has gone over 130000 donors, qualifying him to further debates, to be held in September and October this year. Also, his platform’s list of followers shows no signs of slowing down, having gained more than 100000 new followers, just for having participated in this debate. Whether or not Andrew Yang will become the next President of the United States, his candidacy has already been historical, by definitely sketching basic income on the public and political arena.

 

Yang’s contributions to the debate can be seen on this short video:

 

More information at:

Scott Santens, “Editorial: Andrew Yang makes U.S. history by introducing the idea of universal basic income onto the national debate stage”, Basic Income Today, July 3rd 2019

Jason Burke Murphy, “United States: Andrew Yang reaches milestone: likely to be in a televised debate”, Basic Income News, March 19th 2019

Daniel Mermelstein: “Basic Income and cryptocurrency”

Daniel Mermelstein: “Basic Income and cryptocurrency”

In this article, Daniel Mermelstein delves into the relationship between basic income and cryptocurrencies. The combination of these two innovative, by some considered radical approaches to social security and money, can rock the foundations of most people’s beliefs.

Starting with cryptocurrency, Mermelstein opens with a brief history of Bitcoin, addressed how to has become more mainstream thanks to the bitcoin gordon ramsay and other celebrities have advertised or talked about, the first computer-based coin to overcome the problem of “double-spend”. This was a major step, since in the digital world it is very easy to just make copies of, say, 5€ bills. The process of making transactions with cryptocurrencies such as Bitcoin is very complex, involving “difficult cryptographic mathematics”, but in the end it boils down to a few crucial characteristics: anyone can access to bitcoins (by opening an account named “wallet” or through cryptocurrency trading portals like kryptoportal.pl), all transactions are public and verifiable (on the blockchain), it is corruption-proof (internal cryptographically linked kind of structure) and the supply of money is known and controlled. It is also independent of governments, banks, rating agencies and other institutional edifices which are often prone to corruption and secrecy.

Although Mermelstein acknowledges basic income and cryptocurrencies as foreign concepts for many people, he assures that as time goes on more people will learn about crypto, find the best crypto alerts apps, invest, and buy/sell things using it. Let us refresh our memory with the fact that the idea of basic income is already imbued in social policy programs such as Child Benefits, and that other, non-state tokens (forms of money) have already been in circulation for quite some time, without many surprises (e.g.: private “loyalty card points”, “air miles”). So, he points out that cryptocurrencies can actually help implementing basic income, since the former can be designed in such a way to deliver basic income main attributes: universality, unconditionality, individuality, money-based and periodic. As the only operational example, he cites Manna, which can be traded by other currencies (such as the US dollar) and claims a 100 000 users base at the moment. Manna features Eric Stetson as CEO, and Andrew Yang as one of the consultants.

As for challenges and the path going forward, Mermelstein lists a few hurdles still to overcome by cryptocurrencies, especially in the attempt of dispensing a basic income. One such difficulty is guaranteeing individuality, since at the moment it is very difficult to connect a ‘wallet’ (as in the Bitcoin system) to a single person. This is handy for those buying cryptocurrency australia has to offer, but not so much for basic income purposes. Another problem has to do with universal adoption, since these systems require, at least, an electricity power supply, a computer and/or a smartphone and an internet connection. This leaves out, at the moment, a large proportion of the world’s population. Also, scale can be a problem in operating cryptocurrencies, given the amount of data necessary to guarantee accuracy and tamper-free operation. If a large segment of the population uses such a system as Bitcoin to its daily expenses, there isn’t, at present, enough available computing power to guarantee a smooth operation. That only becomes a problem, though, if in fact enough people adopt a cryptocurrency as their preferred medium of exchange. Adoption, on the other hand, is always critical, since, at core, it is a trust issue. Finally, and apart from the corruption-free design of these new currency systems, there is always some core group of developers, who, especially in the case of large-scale adoption, will be targeted for scrutiny and fairness.

More information at:

Daniel Mermelstein, “Basic income and cryptocurrency“, Citizen’s Basic Income Trust, July 2nd 2019

Sara Bizarro, “Basic Income cryptocurrency Grantcoin, Upgrades and Name Change“, Basic Income News, August 4th 2017

Europe: An EU citizens initiative for a Carbon Fee & Dividend is collecting signatures

Europe: An EU citizens initiative for a Carbon Fee & Dividend is collecting signatures

An European Citizen’s Initiative on the application of a carbon tax-citizen’s dividend scheme has been accepted by the European Commission (May 2019) and is, at the moment, collecting support signatures (up until May 2020).

 

The initiative calls for the application of a Carbon Fee, collected by European Countries, to be redistributed entirely through the general population, with no attached conditions. The scheme rests on three main pillars: the collection of the Carbon Fee, as upstream as possible in the fossil fuel economic tree; the distribution of the Dividend to European Union (EU) citizens, with only a small part of it used to pay for its administrative costs (governments do not keep any of the collected revenue); the introduction of a Border Carbon Adjustment, guaranteeing that EU businesses and industries do not suffer from unfair competition from countries with no such carbon fee and dividends policies (pollution intensive products entering the EU would pay a tax and exports from the EU would be refunded).

 

The scheme is based on solid research concerning carbon emissions scenarios, climate change and carbon pricing in order to reach Paris Agreement goals (for the EU). According to the IPCC, carbon prices should gradually be raised to around 13 times what they are today, so that a 2ºC maximum increase in global temperature is attained. Naturally that only rising prices on carbon-intensive products and services is regressive on its own, tending to hit harder on the vulnerable and poor. Hence redistributing the proceeds through the entire population ensures that lower income people will afford to pay for the goods and services they need, and the wealthier – who usually bear a higher per-capita carbon footprint – will generally lose out economically under this policy.

 

According to the initiative instigators, there is wide support for this kind the general Carbon Fee & Dividend policy, which they hope will be materialized in the collection of signatures process referred to above. This support has been voiced by scientists, economists, NGO’s, industry and EU citizens.

 

 

More information at:

“Support the European Citizens’ Climate Initiative” website

André Coelho, “United States: Economists’ Statement on Carbon Dividends”, Basic Income News, January 29th 2019

Jason Burke Murphy, “Carbon Tax and Dividend Endorsed by Irish Prime Minister”, Basic Income News, January 30th 2019

André Coelho, “Michael Howard: “We have two years to avoid climate disaster. A carbon fee and dividend will help”, Basic Income News, January 6th 2019