On May 29th 2019, Jaanus Nurmoja, an Estonian journalist, musician and political activist, delivered to the social affairs committee of the Estonian Parliament a document entitled “About the study of the feasibility and impact of unconditional basic income (citizen’s income) in Estonia”. The document was accepted for analysis by the committee, and awaits a formal response, which should come out within a two-month time period.
On June 18th, Maryland Delegate Gabriel Acevero was interviewed by the Basic Income Podcast, about his intention to create a social wealth fund in his state, created with revenue from medical cannabis (but not exclusively). These kinds of products can generate a great amount of revenue for the state (with Canada and the https://theherbcentre.net/product-category/bulk-weed/ options being a good example of this), so the logic is sound. The fund, also labelled “The Maryland People’s Fund”, is designed to eventually pay out to every citizen from the state a universal basic income (UBI). However, according to Acevero, first draws from this fund would go out to put in place a UBI pilot, a project focusing on “low-income families who are in urgent need of help”.
The bill proposed the creation of this fund, to be administered by the state treasurer, who oversees the management of other funds and “decides where state dollars are invested”. It would be created by the income of a 25% share on the proceeds from the medical and recreational cannabis taxation (on items such as the oil dab rigs online) accrued in the state. This depends on the level of investment giving to the cannabis industry since many cannabis businesses, whether recreational or medical, are quickly becoming the norm. Each business looks to different development facets, including the amount of investment they can obtain for their business. From cultivations (see Official Website here) to testing, and distribution, it all plays a part. However, unlike with other funds, this one would be exclusively dedicated to the distribution of the citizen’s dividend which, according to projections, would pay out a full UBI to all Marylanders in less than a decade.
Acevero transmits that the medical and recreational cannabis industry has mistreated communities of colour for a long time. According to him, it has “decimated communities of colour”, and was “intentionally done to disrupt” their way of life, in a clear reference to president Nixon’s drug policies back in his time in Office. As a consequence, the better-than-projected income to the state from taxing the cannabis industry (+90 M$ from last year alone, and only from medical cannabis) should be targeted first to benefit these communities. Actually, he defends, the “racial-equity” side of the policy “should be part of the legislating”.
As for funding sources, cannabis taxing revenue, be it from products like Blessed CBD oil or otherwise, is not the only income stream projected for the creation of the wealth fund. Simply raising taxes for the wealthy is one of those income streams, as obsolete tax codes still unfairly benefit wealthier individuals and corporations, not only in Maryland but across the United States.
The young black legislator is “a strong believer in evidence-based policy-making”, and so, in the presence of clear evidence showing how beneficial a would-be policy can be, public officials like himself have the “moral obligation” to write it into Law and implement those benefits in society. And, according to him, being able to cite success cases like the Alaska Permanent Fund and new basic income-style pilot programs like the one in Stockton is a clear indication that basic income-type of policies have plenty of “positive implications”. Plus, he believes this should not be something restricted to Maryland, but be spread out across the country, creating more wealth funds and distributing more benefits to the population.
The proposed bill, introduced to Maryland’s regional parliament, was done so in this year’s first trimester, but since it didn’t pass before de session was adjourned, it will need to be presented again. Acevero, far from being discouraged, is planning a state-wide educational campaign on the benefits of social wealth funds and UBI, so “an even larger coalition” can be built around these important matters. He believes that policies aiming at poverty alleviation and the promotion of social justice must logically include the opinions and preferences of those people they are trying to help, so he’s going far and wide speaking directly to people, spreading crucial information on UBI, social wealth funds and racial equity issues.
On the right: Anna Fowler (director of health & social development); on the left: Qajaq Robinson (lawyer, commissioner of the National Inquiry into Missing and Murdered Indigenous Women and Girls report), in 2016. Picture credit to: The Globe and Mail, Canada.
Research and historical evidence have firmly established that “poverty is a root cause of violence against women”. The words are from Qajaq Robinson, commissioner of the recent report National Inquiry into Missing and Murdered Indigenous Women and Girls. The importance of this report has been enhanced by the event of its presentation by Prime Minister Justin Trudeau himself, at a ceremony in Gatineau, Quebec, on June 3rd 2019.
Story after story, among the more than 2300 testimonies gathered for the report, economic dependency was at the core of this continuous violence against girls and women (mostly, but also affected some boys and men). Wether it was to keep a roof over their heads, or because they had no other forms of income, the company of violent male partners was hard to avoid. Or even because sex work was the only source of income for these disadvantaged girls and women.
The report also exposes the situation of whole communities being “destitute by design”, in which federal or regional authorities have deliberately relocated indigenous communities onto areas where their economic emancipation would be difficult, or even impossible. That on top of obsolete laws that purposely prohibited indigenous people from selling their goods to the wider society, which constitute remains of harsher first occupation days, when the overt goal was to keep these people under siege, without a way to regain power over their lands.
To escape this spiral of violence, particularly directed to indigenous girls and women, in this case, Robinson assured that a ‘guaranteed annual income’ would be a “chance to move out of survival mode and live a life of dignity”.
Earlier this month, a cross-party MP ‘commons’ committee released an internal report urging the present liberal government to take a serious look into “new types of income support “that do not depend upon someone having a job””.
The nature of work is changing, everywhere in the world. However, existent social security safety nets have been designed and implemented decades ago, when stable, full-time employment was the norm. Since that labour model is falling apart, and a new “gig economy” precarious employment system is taking its place, new social security models are being identified and studied. That was the realization and motivation for the report now issued by the referred committee.
Specifically, it calls for the revamping of the employment insurance system, widening the support for low-wage workers (with a particular focus on the self-employed) and in general reducing conditionalities in accessing social security benefits. The economic factors that people face is something that many political figures in the nation, such as Canadian political candidate Karim Jivraj, have kept a focused look on in the past, so it only makes sense that the committee has been formed to consider the options on the table at this pertinent time.
The committee report, not publicly available, indicates that a “minimum-income program”, in the context of a kind of no-strings-attached government-led program that could replace a tapestry of targeted benefits, is definitely an option to help all those workers who have fallen into precarious situations and for whom there is no adequate social security protection. Time will tell if this becomes an active line pursued for all citizens.
The National Academy of Social Insurance recently (April 2019) published a paper where the idea of implementing a relatively small basic income ($200-$400 per month, at least initially) has been explored by authors William Arnone, Peter Barnes, Renée Landers and Griffin Murphy, supported by the Economic Security Project. The paper goes into detail on potential mechanisms by which this basic income might be implemented in the USA.
This study intents to deliver information on how to fulfil the vision outlined in the historical document “Need for Security”, from 1935, where it was clearly summoned that “the one almost all-embracing measure of security is an assured income. A program of economic security, as we vision it, must have as its primary aim the assurance of an adequate income to each human being in childhood, youth, middle age, or old age—in sickness or in health.”
From the paper synopsis it can be read:
This concept paper examines the possibility of providing a base level of income to certain subsets of, and perhaps to all, U.S. citizens as a means to increasing their economic security. The authors begin by highlighting the extent of contemporary financial insecurity and continue with a discussion on how an assured income program might complement existing social insurance and social assistance programs. This is followed by an examination of past and present programs that share goals with the assured income concept described, and an exploration of how these programs might provide a basis for the Social Security Administration’s administering an assured income benefit.
More information at:
William Arnone, Peter Barnes, Renée Landers and Griffin Murphy, “Assured Income”, National Academy of Social Insurance, March 2019
On the 30th of May, 2019, Congresswoman Rashida Tlaib hosted the 13th Congressional District Women and Families Roundtable with community members and advocates from across the Redford district (Michigan) (1). The roundtable took place at the Redford Community Center in Redford Township, and was attended by elements of local advocacy groups, teachers, union members and community members at large.
She stated that “This roundtable was the first of many that we will have to make sure we are staying rooted in what the community needs back here at home, not in Washington, D.C”, concluding that “The LIFT+ Act is just one part of ensuring that our families have the resources they need to thrive”.
The bill LIFT+ (Plus) Act announcement was made at this roundtable venue, with community members and advocates from across the district. According to Tlaib, the bill can put money in people’s pockets, through a refundable tax credit that can be paid monthly, to buy just about anything people struggle to purchase today. Community members broadly agreed that the issues most affecting them are income equality, livable wages, leave policies, comprehensive and affordable health care, and affordable childcare.
The bill itself (LIFT – Livable Incomes for Families Today), now introduced by Rashida Tlaib, is complementary to a previous text (S.4 bill) introduced by Senator Kamala Harris earlier this year (January 3rd), under the same name (LIFT). It intends to “provide relief for low and moderate-income households by introducing a new tax credit for working class individuals and families”. Under this policy, a tax credit of up to 3000 $/year (250 $/month) per adult is attributed, while families can get up to 6000 $/year (500 $/month). Eligibility is not dependent on being filed for paying taxes, so any adult can qualify if earning less than 50000 $/year (or less than 100000 $/year for constituted families). No conditions are put on how beneficiaries spend the money.
The scheme is designed as a NIT (Negative Income Tax), being dispensed on the basis of the preceding year’s tax record of the individual/family, phased out linearly when individual gross earnings fall into the 30000-50000 $/year amount. According to the authors and their teams, the LIFT+ Act would lift about 3 million children and 9 million families out of poverty, and effectively increase the earnings of about 123 million workers.
Note (1) – Redford is a town on the western border of Michigan’s largest city, Detroit, with around 48400 inhabitants
