Basic Income and the something for nothing objection

Basic Income and the something for nothing objection

Michael A. Lewis

Silberman School of Social Work at Hunter College

 

One of the main criticisms of basic income is that if the government gave us money we did not have to sell our labor for, we would work less. Perhaps not all of us would reduce our labor supply but enough of us would render the policy unsustainable for example, if you are in a lawsuit you won’t be able to sustain your financial status since you would be struggling, therefore lawsuit loans would be able to help you and prevent you from drowning under financial stress. This is an important criticism and much of the basic income debate is centered around it. What I want to do in this post, however, is address another related criticism. I will call it the “something for nothing” (SFN) objection to basic income.

The SFN objection goes something like this. Even if giving people money they didn’t have to work for didn’t result in a significant decrease in labor supply, we still shouldn’t enact such a policy. The reason is that it’s simply wrong to give able-bodied people money without requiring something in return. I realize there’re those who’d object to the word “nothing” in the SFN objection. Many who received a basic income would work part-time, go to school, take care of others, or engage in a host of other activities we might not think should be characterized as nothing. Although I agree with this sentiment, for the sake of this post I’ll put it to one side. That’s because I want to address the SFN objection head on and believe the best way to do so is by conceding, for the sake of argument, that recipients of a basic income would do nothing.

The wrongness of giving people something for nothing is often couched in paternalistic terms. Here’s an example from economist Isabel V. Sawhill:

“Liberals have been less willing to openly acknowledge that a little paternalism in social policy may not be such a bad thing. In fact, progressives and libertarians alike are loath to admit that many of the poor and jobless are lacking more than just cash…. A humane and wealthy society should provide the disadvantaged with adequate services and support. But there is nothing wrong with making assistance conditional on individuals fulfilling some obligation whether it is work, training, getting treatment, or living in a supportive but supervised environment.”

 

But, as pointed out by economist Guy Standing in his book Basic Income: A Guide for the Open-Minded, many seem perfectly fine with people receiving something for nothing under other circumstances.

Take the cases of inheritance and gifts. Wealthy parents, grandparents, etc. are allowed, upon their deaths, to transfer vast sums of money or wealth to their heirs. And while alive, they’re able to make such transfers as gifts. Yet recipients of such bequests and gifts are under no obligation to work, receive training or treatment, or live in supportive environments. It’s rare to hear basic income opponents criticize this form of something for nothing. There’re several possible reasons for this absence.

Perhaps basic income critics opposed to such transfers among the wealthy do not say much about them because they are thought to be beyond the reach of public policy. That is, perhaps these critics believe it’s wrong for the kids, grandkids, etc. of the wealthy to receive something for nothing but feel such immorality must be tolerated because there isn’t much public policy can do to stop it. But this underestimates the reach of public policy, at least from a technical point of view.

Bequests and gifts are regulated by estate and gift taxes. So, technically, we could change tax laws to make it very difficult or impossible to transfer money or wealth to one’s descendants or heirs. Alternatively, we could allow such transfers to take place but require recipients of them to provide evidence that they’re working, or receiving job training, or in school, or have graduated from school, are receiving drug treatment if necessary, etc. To my knowledge, we currently do none of these things.

Another reason for lack of criticism of SFN transfers among the wealthy might be the view that we shouldn’t tell wealthy people what to do with their money and assets. If they want to leave a million dollars or a couple of homes to their kids, who are we to tell them not to? This raises a complicated economic and moral question: how much of the money and wealth we possess is ours? This may seem like a strange question to ask because the answer seems so obvious: all the money and wealth we possess is ours. But now consider the following autobiographical story.

I am currently a professor at a public university in New York City. I worked very hard to get where I am, having spent almost 25 years in school, culminating in a PhD. I’m not exactly wealthy but neither am I poor. I’m currently living, as many say, “comfortably,” as a result of making a “decent” salary. And I own (well co-own with a spouse) a home. Now here’s a question: what supports did I require to get to this point?

First, I was raised within a family. People don’t get to become professors, or anything else for that matter, without being socialized by a caring family of some kind, whether biological or not. Second, I spent 13 years in K-12 educational institutions. I, of course, did not teach myself but was taught to be a dedicated teacher. This continued throughout college and graduate school. Third, not only was I taught by teachers, but I took part in a number of group study sessions. This resulted in me learning a great deal from my classmates, as well as from teachers. Fourth, the things I learned were, in most cases, neither invented/discovered by my teachers nor my classmates. None of my teachers or classmates were Isaac Newton, Albert Einstein, Emile Durkeim, Adam Smith, Marie Curie, Shirley Ann Jackson, Rosalind Franklin, Ada Lovelace, etc. That is, a host of people no longer with us played an indirect role in helping me get to where I am today.

I could go on but suspect I’ve made my point: any income or wealth I currently possess is not an individual accomplishment. On the contrary, it is a collective one in which many others, dead and alive, played a role. And it’s very difficult to quantify how much of what I have now is due to what I did and how much a result of what others did. That is because what I have been able to do is so intertwined with what others helped make it possible for me to do. This doesn’t just apply to me; it applies to all of us, no matter how wealthy or successful.

To be clear, I am not saying people should have no say in how they allocate the money or wealth they possess. Perhaps they should have more say in deciding this than anyone else. That is, the point of my autobiography was not to support the assertion that the government can just confiscate people’s money/wealth for whatever purposes it sees fit. But it was intended to support the conclusion that government may have more of a claim on “our money” than many of us typically think. That is because government plays a big role in creating the legal/cultural environment which allows for the various collective accomplishments I spoke of earlier. It helps to define and enforce property rights, “nurtures” markets, and helps to curtail acts of violence and aggression, acts which could be quite destabilizing for any socioeconomic system. Thus, basic income opponents who worry about something for nothing transfers among the wealthy may have more room to maneuver than they think.

A third possible reason for reticence when it comes to criticizing SFN transfers among the wealthy may be their voluntary nature. When wealthy folks make transfers to heirs, this is something they’ve chosen to do. Current social welfare benefits (and this is likely to be true of any enacted basic income) are financed by taxes. If people do not pay taxes, they can be fined, jailed, or both. That is, social welfare SFN transfers are involuntarily financed. Perhaps this gives taxpayers the right to demand something in return from social welfare beneficiaries, a right they do not have when it comes heirs of the wealthy.

This is a fair point. But I think it implicitly takes us back to the question of whose money and assets wealthy people are transferring to their heirs. That is, implicit in the voluntary transfers argument is the notion that wealthy people can transfer any money or assets they want to their heirs because it’s their money and assets to do with what they please. But if what I said earlier about how achievements are collective, as well as individual, achievements facilitated in part by the government, perhaps the rest of us do have some say in what children of the privileged have to do in return for gifts and bequests from their rich friends and relatives.

There’s another point to raise about this voluntary transfers argument. The U.S. federal government currently has in place a number of tax expenditures. These are policies where the government allows people to reduce their taxable incomes or, in some cases, their actual tax bills. Those which allow people to reduce their taxable incomes are called deductions. Those which allow taxpayers to reduce their tax bills, that is, the amounts they owe in taxes, are called tax credits. I can make the point I want to make here by focusing on deductions, one in particular.

Under certain conditions, people who borrow money to buy a house can deduct the interest they pay on the loan used to finance that purchase. That is, when it comes to calculating their income which is subject to taxation, taxpayers in this situation can subtract the amounts they paid in interest before determining their taxable incomes. This could put them in a lower tax bracket and cost the government, that is, taxpayers lots of money in forgone revenue. The policy is arguably a kind of housing subsidy. Yet people do not have to work, take part in job training, prove they are staying off drugs, etc. to receive it. That is, this looks a lot like a “subsidy for nothing” policy. Why allow this one, as well as others like it, but not a basic income?

For the sake of discussion, let us put aside some of the things I have been saying in the past few paragraphs. That is, let’s assume any money or wealth people have is solely theirs to do whatever they please, and government has no claim whatsoever on these resources. Where does that leave us? Well it might leave us in the following situation.

The wealthy could continue transferring something for nothing to their kids because we would have no right to shape public policy to stop it. We could, by enacting a basic income, create a more equal playing field by allowing all of us the opportunity for a similar transfer. Yet if we could not tax people (wealthy or not) who did not want to be taxed, we might not be able to obtain enough revenue to enact a basic income. In fact, we might even be able to obtain enough revenue to enact the kind of conditional system Sawhill advocates. That is, if people had the right to decide what they wanted to do with their money/wealth and government had no claim on these resources, we might not be able to finance a social welfare system at all. That’s because folks might not want any of their money and wealth taken to finance such a system. So, the something for nothing objection to basic income, if taken seriously, could lead to the “free market Libertarian’s” first-best paradise. I wonder if something for nothing objectors to basic income have thought about this possibility.

 

Acknowledgements: I’d like to thank Michael D. Tanner and Eri Noguchi for their helpful comments on this piece. In contrast to what I said in the essay about accomplishments, I take full responsibility for any errors that remain.

 

 

 

STOCKTON, CA, US: New Details Revealed in Planned Basic Income Demonstration

STOCKTON, CA, US: New Details Revealed in Planned Basic Income Demonstration

Photo: Newberry Building in downtown Stockton, CC BY-NC-SA 2.0 Onasill ~ Bill Badzo

 

A new discussion paper, released on Monday, August 20 by Mayor Michael Tubbs and the Stockton Economic Empowerment Demonstration (SEED) team, reveals details of the design of the basic income pilot planned for launch next year.

Stockton Mayor Michael Tubbs

Following in the heels of Silicon Valley’s Y Combinator, the mid-California City of Stockton announced in October 2017 that the municipality was readying a privately financed basic income pilot.

The project arose out of collaboration between Mayor Michael Tubbs and the Economic Security Project (ESP), an initiative founded in California in the previous year to support work related to basic income and cash transfers in the US.

Called the Stockton Economic Empowerment Demonstration or “SEED”, the program will provide approximately 100 Stockton residents with unconditional cash payments of $500 per month for 18 months. 

ESP supplied a $1 million foundational grant to launch SEED, which would be followed by major contributions from such donors as the Future Justice Fund, the Goldhirsh Foundation, tech entrepreneur Serkan Piantino, and Facebook co-founder Andrew McCollum.

To prepare a study of the effects of the cash payments, the project has recently enlisted the assistance of two scholars: Dr. Stacia West of the College of Social Work at University of Tennessee, who gained press in the basic income community last year for her study of Dolly Parton’s My People Fund (which provided no-strings-attached cash support to wildfire survivors), and Dr. Amy Castro Baker of Social Policy and Practice at the University of Pennsylvania.

A new discussion paper from SEED, published on August 20, 2018, lays out newly disclosed details about the process of selecting and enrolling participants. The design is one that has been informed by feedback received from Stockton residents, consulting researchers, and others since the project was unveiled.

 

Seeding SEED (Participant Selection)

As described in the discussion paper, participants in SEED’s basic income trial will be chosen from the population of legal adults (at least 18 years of age) who reside in any Stockton neighborhood in which the median household income is no more than $46,033, the median household income of the city as a whole. The latter provision is intended to allow the project “to be inclusive of residents across the city while ensuring that resources reach those who are in need”.

Although eligible participants must reside in a neighborhood in which the median income is at or below the city’s median, there are no limits on the individual or household income of participants. An adult resident earning above $46,033 is still be eligible to participate in SEED.

Invitations to participate in the basic income demonstration will be sent to 1000 households randomly selected from neighborhoods meeting the income condition. Approximately 100 recipients will then be chosen at random from those who reply to the invitation and give consent to participate. Those who are not selected will be eligible to join the control group. Members of the control group will share the same type of information with the researchers (e.g. information about their financial security, health, and well-being), and they receive compensation in cash for their participation in supplying data, but they will not receive the $500 monthly income.

The invitations are to be mailed by January 2019, with first payments anticipated in February.

 

Project Assessment

Lead researchers West and Castro Baker will publish a pre-analysis plan in October, which will present the study’s methodology in depth.

But SEED’s latest discussion paper does provide a few new details: the project will examine outcomes including “financial security, civic engagement, and health and wellness” through a combination of surveys, interviews, and focus groups, and the research team will compare outcomes among the cash recipients to those of a control group (which, as mentioned above, will be composed of others from the population of eligible participants).

Although SEED is now to include a controlled experiment, the project still calls itself a “demonstration” instead of an “experiment”, and this not due (merely) to the attractiveness of “SEED” as an acronym rather than “SEEE”; the generation of stories and anecdotes remains a core purpose of SEED.

As also described in the recent discussion paper, Mayor Tubbs and his team aspire to produce stories about how a modest guaranteed income impacts individual lives, as well as how a social experiment impacts a city.

The demonstration will track the individual experiences of a small group of participants who volunteer to speak publicly about the effects of the program on their lives. Artists will also assist in delivering the narrative. For example, the paper indicates that a public event featuring poetry and spoken word performances is to be held at the conclusion of the project.  

In addition to telling the stories of individual recipients, the SEED team intends to set the project “in a larger framework for a broader vision for a new social contract”, presenting it “as part of the larger story of Stockton, a trailblazing city on the rise”.

 

Motivation

The Stockton project is motivated by the belief that an unconditional basic income is “one of the most effective tools” to reduce poverty and mitigate economic insecurity. SEED states, “We are motivated to test a guaranteed income in Stockton because we believe it is to combat poverty. Unconditional cash can supplement and enhance the current social safety net.”

Inspired by Dr. Martin Luther King Jr.’s endorsement of a guaranteed annual income, Mayor Tubbs developed an interest in basic income as part of a broader program to help his city recover from economic devastation. Hit badly by the economic collapse of 2008, Stockton was declared “America’s most miserable city” by Forbes in 2011 and filed for bankruptcy in 2012, becoming the largest US city to have done so at the time (although soon surpassed by Detroit).

Tubbs was elected to Stockton’s City Council in 2012, at the age of only 22, and in 2016 defeated incumbent Anthony Silva to be elected as mayor of the city of 300,000 — the youngest mayor in the city’s history and the first African American.

Since assuming office, Tubbs has pursued a range of initiatives to combat the effects of economic devastation. He led Stockton in creating a Housing Mitigation Fund to reduce financial risk for landlords who rent homes to the homeless, for example, and he secured a philanthropic grant to launch another privately funded initiative, Stockton Scholars, which provides scholarships to help Stockton high school students attend college or university. Mayor Tubbs also spearheaded a partnership with the city and Advance Peace, a controversial program that aims to reduce gun violence by providing cash assistance and other personal support to those most likely to commit violent crimes. In addition to heading SEED, he is currently constructing a re-skilling program to help close the skills gap between employers and Stockton job-seekers.

It is against this background that SEED declares it is “taking place within a larger collective impact model to build a world-class cradle-to-career pipeline of education, public safety, and opportunity”.

 

A “Basic Income” Trial?

Past articles in Basic Income News have stressed that many existing so-called “basic income” experiments are constrained in ways that call into question their resemblance to a universal and unconditional basic income. In many cases, for example, participants have been selected only from pools of individuals with low incomes (Ontario, Y Combinator), who are unemployed (Finland), or who are currently receiving other welfare or social assistance benefits (The Netherlands, Barcelona). In some cases, moreover, the cash payments are reduced with earned income (e.g. Ontario, The Netherlands).

The design of the Stockton pilot is notable in that there is no requirement that individual participants be low-income, unemployed, or receiving government assistance. As mentioned above, participants must reside in neighborhood with an average income at or below the city median; however, participants themselves needn’t have an income below this level (e.g., in principle, invitations to participate could be sent to affluent investors who has purchased homes in low-income Stockton neighborhoods with the hope of later turning a profit).

Additionally, the $500 payments will not be clawed back with additional earned income. That said, however, other benefits might. SEED is currently working with government benefits agencies to determine how the unconditional cash grants will impact recipients’ eligibility for means-tested benefits. Under current US policy, such a $500 per month of “reasonably anticipated income” would generally need to be reported as household income. However, Tubbs hopes to secure waivers for participants to prevent or mitigate potential loss of benefits during the trial. SEED states that it will provide potential recipients with detailed information about the effect of participation on public benefits, as well as providing opportunities to consult with benefits eligibility counselors prior to consenting to join the project.

 

More Information

Official Paper: “Our Vision for SEED: A Discussion Paper” (August 20, 2018).

Official Website: www.stocktondemonstration.org.

 

Crowdsourced funding as a ‘basic income’ for artists

Crowdsourced funding as a ‘basic income’ for artists

Written by: Alfredo Roccia

We talk so much about freedom.

-Ingmar Bergman, The passion of Anna

As argued by Karl Marx, “it is not the consciousness of men that determines their existence, but, on the contrary, their social existence determines their consciousness.”[1] Despite acknowledging the importance of external factors on men’s freedom, Jean-Paul Sartre did not share the Marxian thesis, however, asserting that “we have the war we deserve,” namely man, “being condemned to be free,” is only “responsible for himself,” regardless of their surrounding environment.[2] Therefore, according to the French philosopher, human beings have the decisive possibility to give meaning to their existence in absolute freedom, without any influence from pre-established principles.

However, what do we do when the future we want is precluded by precarious economic conditions or a staleness social system? What if we had to settle for what Martin Heidegger called “inauthentic” existence rather than pouring all our abilities out?

It is on the fine line between what Marx and Sartre exposed, that we could position the Universal Basic Income (UBI) and its significative impact on humanity’s freedom in a future scenario.

Although the reasons-be them of political, economic and social nature-which UBI advocates opt for, we could essentially group them in three sets of problems: (1) the current levels of unemployment, (2) the work threatened by the new advent of machines, (3) the current social care system as not sufficient for twenty-first century needs.[3]

However, the aspect of UBI which has won me over, besides the financial security that would result, is the freedom of choice that UBI could generate or at least reinforce in modern society. Also, those who Need Money Desperately might find this a huge relief. It can also pave way for their financial planning because now they have a recurring income to depend on.

A freedom that would allow everyone to express and legitimize his or her own talent through any job or activity without any kind of diktat from the market or society.[4] I personally consider this aspect deeply interesting since today, more than ever, human beings seem to have lost the ability to say “no,” being slaves of constant financial insecurity, trapped in not always satisfying careers, stressful working hours and short leisure time.[5]

Indeed, how do we define leisure time? Would it be perhaps a vacation every month, running away from the working stress, an apparent getaway from an unsatisfying life? Or maybe focusing on our own passions and talent just during weekends, because of the scarce free time we have, stolen from a job we do not love-therefore constantly working, ignoring the need for a vacation?[6] I believe it is clear how greater financial security would consequently enable a greater possibility of choice, less influenced by external factors, allowing our creativity to run riot, giving us greater flexibility within our lives.[7]

Staying in the creative sphere, it is clear how UBI could have a significant weight within the work of artists. Namely, it could help those who choose to devote themselves to art, despite sometimes agreeing to accept jobs not totally in line with their ambitions or realizing works whose typically commercial nature is imposed by the market and the need of paying the rent by the end of the month, rather than their artistic will.


Not being technically an artist, but feeling very tied with disciplines like photography, music, cinema or literature, I quite sympathize with those persons who, not being able of practice their own talent freely, are forced to follow careers alien to their pure artistic ambitions. However, thanks to current web platforms like YouTube, many young artists-among which also poets and philosophers, categories perhaps more penalized today than in the past from the job market-can display their own knowledge and talent through video tutorials, lessons, performances, etc., that are free and available to everyone. But, how can they finance all of this, since the working time required for writing, shooting, editing, and post-producing a very short video requires quite a lot of time? There are ways to make money from YouTube, such as by growing a large following and monetizing your videos. For small channels, it might be worth visiting Venturebeat to learn about buying YouTube subscribers. That could help the channel to grow, eventually leading to the channel making some money. However, there are other ways too. Crowdsourced funding platforms like Kickstarter, Indiegogo, Patreon (just to mention some), can help young creative minds by promotional campaigns for financing a single project (see Kickstarter) or by subscriptions that provide an income on a recurring basis or per work of art, in return of special contents or rewards (see Patreon).[8] Sounds familiar, doesn’t it?


So, it seems a kind of artistic basic income is already here and works quite well: many of these young artists can support their expenses with the help of their own backers, changing also the direction to their own career. It is common to see some of them quitting their job or devoting themselves to that virtual activity indeed.[9]

For instance, a case that personally surprised me and which I consider significative is that of a young YouTuber, Paul Davids, a Dutch musician who has shared video lessons about guitar and music theory since 2009.[10] Later, Paul joined Patreon, proposing special contents for his patrons, in exchange for a subscription. On February 20, 2018, Paul published a video telling his followers that he quit his job as a guitar teacher so he could devote himself to what he truly loves: offering high-quality videos, investing his time to improve his guitar skills and making more music.[11] It is interesting to note how Paul decided to quit that activity on which many musicians are “forced” to make do, namely scholastic or private teaching.[12] A difficult choice, but he thinks it could bring him more freedom to “take on bigger projects requiring more time.”[13]

Another example is the Patrick (H) Willems channel, registered on YouTube since 2011 and dedicated to short movies production and video essays about cinema. On a video published on May 7, 2018, the founder Patrick Willems shared the ambition of financing his works through Patreon community, so as to update his working tools, acquire a proper studio, and become more independent. He stated that he was grateful for getting as far as he could using equipment similar to avid media composer first editing software, audacity, and other free resources.
[14]

Those of Paul and Patrick are only some of the hundreds of cases in which young YouTubers, by the funding of Patreon or similar services, can finally pour their own ambitions out through a greater financial security.[15]

But, how long will all of this last? Can we really think that platforms such as Patreon could support young artists forever, behaving as a proper basic income?

Actually, it is important to stress how crowdsourced funding could not replace any form of UBI because of their fundamental differences. It is true how they allow people to collect money through crowdfunding and perhaps even more than what a person could get with any current experiment involving UBI. However, crowdsourcing is breaking what is probably the first rule of UBI, namely its universality. Platforms such as Patreon are not open to everybody in so far as creators need to offer content in return for being supported by their community. Poor or “uncreative” people are evidently excluded from this policy. Moreover, those platforms are usually made by private companies and run for private purposes: they could stop anytime, evolve in something totally different or even close the business for any reason. This could really affect people from planning their own career grounding on a variable amount of money they can get every month, while UBI would be potentially perpetual as well as more inclusive.

However, despite being its surrogate, crowdsourced funding is the proof that the UBI concept can be extremely useful for young artists, at least at the beginning of their career. Moreover, it could allow them to go beyond the current constraints which those platforms implicate-not always making frequent content can be an attractive thing for videomakers-as well as to exceed the rather narrow frame of YouTube.

Perhaps, we should start with what those platforms are representing at the moment and try to mutate the modern perception we have about work and the current values system which characterize it. A greater freedom for artists could mean a boost of creation of those “things that enable market production but lie outside the monetary system,” in a structure in which UBI would have been seen “as capital, and not just money,” allowing a cultural renaissance and the production of new values for an invigoration of the twenty-first century economy.[16]

About the author:

Alfredo Roccia is an Italian-born architect working in London, UK. He studied architecture at the “Università degli Studi di Napoli Federico II”, where he graduated in 2012. In the past five years, he has worked in Italy, the Netherlands and the United Kingdom, where he currently lives.

[1] Karl Marx, preface to A contribution to the critique of Political Economy, trans. Nahum Isaac Stone (Chicago: Charles H. Kerr & Co., 1904; initially published in German as Zur kritik der Politischen Oekonomie in 1859), 11–12.

[2] Jean-Paul Sartre, Being and Nothingness, trans. Hazel E. Barnes (New York: Philosophical Library, 1956; initially published in French as L’Être et le néant in 1943), 553–5; Jean-Paul Sartre, Existentialism and Humanism, trans. Philip Mairet (1948; repr. London: Methuen, 1960; initially published in French as L’Existentialisme est un humanisme in 1946), 29.

[3] For a deepened analysis about UBI and its more recent applications consult: Philippe Van Parijs and Yannick Vanderborght, Basic Income: A radical proposal for a free society and a sane economy (Cambridge, MA: Harvard University Press, 2017); Guy Standing, Basic Income: And how we can make it happen (London: Pelican, 2017); Amy Downes and Stewart Lansley, eds., It’s Basic Income: The global debate (Bristol: Policy Press, 2018).

Various are the forms that UBI is assuming in current debates and during tests adopted by some countries. However, herein I will refer to its most “pure” version, that is “an unconditional, automatic and non-withdrawable payment to each individual as a right of citizenship.” Malcolm Torry, “History and the contemporary debate in the UK” in Downes and Lansley, Basic Income, 123–4.

[4] “Somehow release those who are technically and imaginatively proficient from the restraints imposed by the business system and there will be unprecedented productivity and wealth in the economy.” John Kenneth Galbraith, A history of Economics: The past as the present (London: Hamish Hamilton, 1987), 172. In this passage, Galbraith summarizes the thought of the economist and sociologist Thorstein Veblen as he made explicit in his Theory of business enterprise (1904).

[5] Matt Zwolinski, “The libertarian case for universal basic income” in Downes and Lansley, Basic Income, 152. According to Society for Human Resource Management (SHRM), “nearly two-fifths (38%) of U.S. employees reported that they were very satisfied with their current job, whereas a greater proportion (51%) stated they were satisfied but to a lesser degree, indicating that the majority of U.S. employees are to some extent satisfied with their present job role.” SHRM, “2017 Employee Job Satisfaction and Engagement,” accessed May 28, 2018, https://www.shrm.org/hr-today/trends-and-forecasting/research-and-surveys/Documents

/2017-Employee-Job-Satisfaction-and-Engagement-Executive-Summary.pdf.

[6] John Maynard Keynes already dealt with problems within a future “age of leisure” in his “Economic possibilities for our grandchildren (1930),” in Essays in persuasion (New York: Harcourt Brace, 1932), 358–73.

[7] “We need to make the case that entitlement to an income and a dignified life should not be dependent on working for an employer, nor conditional on searching for employment. A basic income would free people from this compulsion, granting them much fuller freedom to direct their lives, engage in civic activity, or enjoy leisure time.” Avi Lewis and Katie McKenna, “A down payment on a new cooperative economy” in Downes and Lansley, Basic Income, 72.

[8] cf. GoDaddy Inc., “Top 20 crowdfunding platforms of 2018,” by Erick Deckers, last modified February 27, 2018, https://www.godaddy.com/garage/top-20-crowdfunding-platforms/.

[9] In 1969 Nixon administration already launched the “Family Assistance Program (FAP),” a welfare reform proposal whose unexpected results showed an increase of the time devoted to study or artistic activities by people involved in the experiment. cf. Jacobin, “Nixon’s Basic Income Plan,” by Rutger Bregman, accessed May 28, 2018, https://www.jacobinmag.com/2016/05

/richard-nixon-ubi-basic-income-welfare/.

[10] Paul Davids, YouTube channel, accessed May 28, 2018, https://www.youtube.com/user/Luapper/about.

[11] “Giving guitar lessons, especially private lessons, they are very time-consuming and with YouTube I get so many cool and awesome offer, all of the things I simply can’t do because I don’t have the time.” Paul Davids, “I’m Quitting,” February 20, 2018, YouTube video, 5:29, https://www.youtube.com/watch?v=6nruh9SSXoQ.

[12] “For many musicians…teaching is a way to pay the rent, to pay for food and everything else. When you don’t have many gigs, you want to have a secure income…but nowadays YouTube and everything around…can provide for those things for me.” Davids, “I’m Quitting.”

[13] “I’m very relieved to quit teaching. From now on I can really focus on my channel, work harder for my videos, accept more cool side projects and hopefully play in more bands.” Davids, “I’m Quitting.”

[14] “In the past year the channel finally got to the point where I can afford to do it full-time…just making enough to live off of. So, there isn’t much money left to put into the budgets for the video themselves.” Patrick (H) Willems, “Upgrading Our Videos (Patreon Announcement),” May 7, 2018, YouTube video, 3:48, https://www.youtube.com/watch?v=L6A57-1JteA&t=0s&index=2&list=WL.

[15] “We’ve got…a hundred and sixty-nine thousand subscribers. So, imagine if every one of them pledged $1 a month, it would be crazy!” Willems, “Patreon Announcement.”

Following the live streaming video platform Twitch, other companies such as YouTube and Facebook have recently launched the option of sponsoring videomakers. Artists make more money the more followers they have which is why many of them use one of the 22 Best Sites to Buy Twitch Followers to increase their profits. cf. Business Insider UK, “Twitch raises incentives for creators,” by Kevin Gallagher, accessed May 28, 2018, https://uk.businessinsider.com/twitch-raises-incentives-for-creators-2017-4?r=US&IR=T; CNBC, “Facebook is opening up ways for video creators to make money,” by Michelle Castillo, last modified March 21, 2018, https://www.cnbc.com/2018/03/19/facebook-opening-up-ways-for-video-creators-to-make-money.html; Variety, “YouTube Kills Paid Channels, Expands $4.99 per Month SponsorshiModel,” by Janko Roettgers, accessed May 28, 2018, https://variety.com/2017/digital/news/youtube-kills-paid-channels-1202563599/.

[16] Roope Mokka and Katariina Rantanen, “Universal basic income for the post-industrial age” in Downes and Lansley, Basic Income, 65–6.

ONTARIO, CANADA: Project Advisors Oppose Termination of Pilot Study

ONTARIO, CANADA: Project Advisors Oppose Termination of Pilot Study

Photo: Stormy weather in Ontario, CC BY-NC-ND 2.0 Jeff S. PhotoArt

 

Ontario’s guaranteed income pilot has been ended nearly two years early, prompting researchers and advisors who contributed the project to speak out.

On Tuesday, July 31, Ontario’s recently elected Progressive Conservative (PC) government announced the cancellation of the province’s guaranteed income experiment, reneging on a statement made during the campaign that the PC would see the three-year experiment through to its end if elected to form the new government.

The abrupt and unexpected announcement stirred the ire of politicians, anti-poverty advocates, and, not least, program participants themselves. Nonetheless, Lisa MacLeod, who presented the news at a press conference in her capacity as Minister of Children, Community and Social Services, has held her ground, dismissing claims that the PC broke a campaign promise as “fake news” since the party never included a commitment to the experiment in its campaign platform. Her words, however, have left many unappeased and continuing to fight to save the project.

Those who have spoken out again this decision of the PC government’s include several individuals involved with the implementation of the experiment, such as project advisors Hugh Segal and Kwame McKenzie, and at least one researcher who spoke to the press anonymously out of concern for confidentiality.  

 

Former Canadian Senator Hon. Hugh Segal

The Honourable Hugh Segal, former Canadian Senator of the Conservative Party, was appointed as Special Advisor on Basic Income by Ontario’s Liberal government during the project’s initial planning stages. In this role, Segal authored the comprehensive discussion paper (“Finding a Better Way: A Basic Income Pilot Project for Ontario“) that laid the groundwork for the design and implementation of the experiment.

When MacLeod announced the pilot’s early termination, Segal responded with a scathing opinion column in The Globe and Mail, in which he foregrounds the issue of fairness to participants: “These people believed the promise that they would not end up worse off for signing up for the pilot project. They have now been let down badly.”

“[W]hen a party gives its word – as then-Official Opposition leader Patrick Brown gave me in 2016 and PC Party Leader Doug Ford echoed through his spokesperson during the 2018 election campaign – that it would let the pilot project go forward before judging the results […] , this assurance influenced those signing up.”

Segal also addresses the assertion of MacLeod and PC government that the experiment was too expensive to continue: “Looking at the cost of the pilot project is fair enough – but frankly, simplistic. We know that poverty is a perfect predictor of poor health and early hospitalization, bad educational outcomes, substance abuse and problems with the police – all of which cost Ontario billions.”

Drawing a connection to Premier Ford’s key policy goal of ending so-called “hallway health care” (hospital facilities so inadequate that patients must be treated and housed in corridors), Segal additionally speculates that a guaranteed income could lower hospitalization rates as low-income individuals begin “eating better, living more balanced lives and making progress in work, education and family.” He laments that “we will now never know” whether the policy would have had such predicted positive effects on health outcomes.

 

Dr. Kwame McKenzie

Dr. Kwame McKenzie, psychiatrist and CEO of the Wellesley Institute, had been named Special Advisor to the Ontario Basic Income Pilot by the previous provincial government. Like Segal, McKenzie is now concerned about the effect of the experiment’s cancellation on those currently enrolled in it. The psychiatrist tweeted on August 1, the day after the experiment was cancelled, that he “woke this morning more worried about the health impacts on participants. This is a high risk situation.”

McKenzie spoke to CBC Radio about his concerns, emphasizing that participants currently face a “difficult and stressful time” which could lead to many and severe possible physiological consequences. He noted that many of those who enrolled in the pilot have made “life-changing decisions” founded on the belief that they would have a three-year guaranteed income, and argued that they now need both adequate financial support (he recommended at least a year to wind down the project) and personal support in making new decisions.

Also like Segal, McKenzie believes that a guaranteed income could have promoted key objectives of the PC government. He stressed, for example, its potential to result in better jobs for low-income people. Asked by CBC about MacLeod’s work-focused approach to welfare, McKenzie stated that he agrees that “good jobs is a great health intervention” (while cautioning that bad jobs tend to worsen health). He went on, however, to explain that a guaranteed income might have offered a effective means to achieve this goal, bemoaning “Now I guess we’ll never know.” 

 

Speaking anonymously to CBC, another researcher on the experiment’s academic team more directly addressed MacLeod’s allegation that the pilot project is not working: “There’s no conceivable way that they were told the project wasn’t working. We just don’t have any data to know whether it was working or not.”

The researcher acknowledged that individual recipients have gone to the media with stories that are “very positive” but underlined the fact that these reports might not be representative: “[T]he whole point of our project was to just stand back from all the stories people are telling and try to look at the data in a reasonably scientific way.”

If the experiment had continued as planned, the research group was expected to evaluate outcomes in many areas — potentially including, among others, food security, stress and anxiety, healthcare usage, housing stability, education, and employment — comparing data gathered from the 4,000 guaranteed income recipients to that collected from a control group.

Results had been expected to be reported to the public in 2020.