by Peter Vandevanter | Oct 13, 2017 | News, Research
Congressional Quarterly (CQ) has published a research paper on basic income (BI) that explains its universal popularity due to automation growth estimates worldwide. The CQ Researcher covers everything from Scott Santens’ crowdfunded self-financing mechanism to U.S. ex-President Obama’s belief that the debate may last 10 to 20 years.
The 21-page research paper, written by London freelancer Sara Glazer, includes an explanation of the Alaska Permanent Fund Dividend (PFD) – a basic income like payment to all residents – and revels in the prediction of automation worldwide. Predicted percentage of job losses are shown in charts for 8 countries, as well as for the Organization for Economic Co-operation and Development (OECD) (made up of 21 countries).
BI appeal to the political Left is explained as the continuation of a welfare state. Its appeal to the political Right is explained as a libertarian limit on government intrusion and cost. However, the research warns that many people believe the poor may be worse off: “Some anti-poverty advocates say a UBI would increase both poverty and inequality by using welfare funds now spent on the poorest two-fifths of the population to provide cash to people of all income levels“.
The report also mentions the current endorsement of Facebook co-founder Mark Zuckerberg, as well as other Silicon Valley entrepreneurs like Chris Hughes. Moreover, references are made to the 1960s precedent of U.S. President Lyndon Johnson’s instituted War on Poverty as well as U.S. President Richard Nixon un-instituted 1970s negative income tax credit. This latter issue has been today resurrected by Congressman Ro Khanna, by his proposed bill for extending the earned income tax credit for the poor.
The Canadian 1970s experiment, called Mincome, is described as a positive pilot project, acting as a precedent for current basic income pilot projects in Finland, the U.S. (California ), Canada (Ontario ), Spain (Barcelona), Africa (Give Directly) and the Netherlands. In this report Karl Widerquist says that, with a BI, people will be allowed without fear to work the way they feel best. In an opposite viewpoint, Pavlina Tcherneva argues that a Job Guarantee program would be a better, less costly, way to make sure everyone had work they cared for.
More information at:
David Wheeler, “What if everybody didn’t have to work to get paid?”, The Atlantic, May 18th 2015
Chris Weller, “President Obama: We’ll be debating unconditional free money over the next 10 or 20 years” Business Insider, October 12th 2016
Kate McFarland, “SPAIN: Barcelona prepares study of Guaranteed Minimum Income”, Basic Income News, February 26th 2017
Peter Vandevanter, “United States: Ro Khanna introduces EITC bill, garners comparison to BI”, Basic Income News, October 2nd 2017
Kate McFarland , “THE NETHERLANDS: Government authorizes social assistance experiments in first five municipalities”, Basic Income News, July 11th 2017
Ashley Blackwell, “KENYA: GiveDirectly’s Guaranteed Monthly Income Expands to 200 Villages Fall 2017”, Basic Income News, September 10th 2017
Kate McFarland, “FINLAND: First Basic Income payments sent to experiment participants”, Basic Income News, January 12th 2017
Peter Vandevanter, “United States: Ro Khanna introduces EITC bill, garners comparison to BI”, Basic Income News, October 2nd 2017
Ashley Blackwell, “KENYA: GiveDirectly’s Guaranteed Monthly Income Expands to 200 Villages Fall 2017”, Basic Income News, September 10th 2017
Kate McFarland, “FINLAND: First Basic Income payments sent to experiment participants”, Basic Income News, January 12th 2017
by Peter Vandevanter | Aug 11, 2017 | News
Despite endorsing a larger carbon footprint for Alaska, the Permanent Fund Dividend (PFD payment, according to a survey released last week, of one thousand employees), encouraged only one per cent of recipients to work less.
Perhaps the oldest, continuous, Basic Income-like social program is the Alaska PFD, going since the 1980s and currently paying every adult citizen $2,072 annually. Last year’s report indicated that PFD has kept 2-3 per cent of Alaska’s population – some 15-20,000 people – above the poverty line since 1990.
Wrote Jack Thorold in a blog for RSA (a charity which encourages the release of human potential to address the challenges that society faces):
“…it’s a fair guess that at least for some the PFD frees them to do other valuable activities: caring for relatives or learning new skills, for example.”
Also, according to another survey, Alaskans don’t spend their PFD on frivolous things. Instead, 72 per cent of Alaskans report earmarking their dividends for essentials such as paying off debts, education and saving for retirement or emergencies. Thorold went on in his blog to discuss the disappointing – especially relative to the idea of a universal basic income – recent results of the Trussell Trust report on foodbank usage in the UK, which contain:
– 78 per cent of those referred to foodbanks are severely food insecure, meaning that they had gone without eating, perhaps for multiple consecutive days, in the last twelve months;
– 40 per cent of users are driven to foodbanks as a result of a delayed benefit payment;
– About two thirds of foodbank users had recently been hit by an ‘income shock’, most commonly sharp rises in food or housing costs.
Thorold ended his blog, going back to the Alaska PFD: “Alaska’s PFD provides good evidence that unconditional payments can work, and we should take notice.”
More information at:
Kate McFarland, “Alaska, US: State senator prepares bill to restore full amount of 2016 PFD”, Basic Income News, October 9th 2016
Nathaniel Herz, “Alaska lawmaker stokes Permanent Fund fight with push to add $1,000 to dividends” Alaska Dispatch News, October 6th 2016
Paula Dobbyn, “State senator prepares bill to restore full amount of 2016 Permanent Fund dividend” KTUU, October 5th 2016
Travis Khachatoorian. “With reduced PFDs on the way, protests expected at budget forum” KTUU, September 30th 2016
by Kate McFarland | Jul 25, 2017 | News
Facebook founder and CEO Mark Zuckerberg has recently been traveling the United States on a listening tour, during which he aspires to visit every state in which he has not previously spent time, learning about the concerns and perspectives of residents. While in Alaska, Zuckerberg mentioned the state’s Permanent Fund Dividend (PFD) in a Facebook post, calling a “form of basic income” and commending it as a model for social welfare policy [1]:
Alaska has a form of basic income called the Permanent Fund Dividend. Every year, a portion of the oil revenue the state makes is put into a fund. Rather than having the government spend that money, it is returned to Alaskan residents through a yearly dividend that is normally $1000 or more per person. That can be especially meaningful if your family has five or six people.
This is a novel approach to basic income in a few ways. First, it’s funded by natural resources rather than raising taxes. Second, it comes from conservative principles of smaller government, rather than progressive principles of a larger safety net. This shows basic income is a bipartisan idea.
This post was Zuckerberg’s second public commendation of the idea of basic income. During his Harvard commencement address on May 25, Zuckerberg recommended exploring the policy, stating, “We should explore ideas like universal basic income to make sure everyone has a cushion to try new ideas.”
In general, Zuckerberg’s remarks on the PFD were well received by the basic income community, who welcomed the high-profile endorsement and opportunity to raise awareness of the PFD, which is widely perceived as evidence that a basic income can be practically implemented. (For more on Alaska’s PFD, including recent updates, see “ALASKA, US: Survey shows support for Permanent Fund Dividend amid continued legal controversy” in Basic Income News.)
Some commentators, however, were less sanguine. Writers like Clio Chang (in New Republic) and Sonia Sodha (in The Guardian) worry that Zuckerberg–like many right-wing and libertarian supporters of basic income–sees the policy primarily as an excuse to cut other programs, as evidenced by his praise for “conservative principles of smaller government” and apparent opposition to raising taxes, which might leave many low-income Americans worse off.
Despite speculation that the tech billionaire is contemplating a 2020 run for US President, Zuckerberg denies that he is running for public office, maintaining that his tour of the US is only a means to broaden his perspective and understand his customers.
Photo: CC BY-NC-ND 2.0 kris krüg
by Kate McFarland | Jul 10, 2017 | News
The Economy Security Project (ESP), a two-year fund launched in December 2016 to support investigation of basic income in the United States, has published the results of a new survey of Alaskans’ attitudes towards the state’s Permanent Fund Dividend (PFD).
The Permanent Fund Dividend
In 1976, the Alaska State Constitution created a permanent fund in which the state must invest at least 25% of its oil revenues, enabling wealth generated from the sale of a nonrenewable resource to continue to benefit future generations of Alaskans. The PFD, created in 1982, distributes a portion of the fund’s earnings as a dividend paid annually to all Alaskans.
Disbursed in equal amount to all adults and children who have lived in the state for more than a year (and intend to remain indefinitely), the PFD is widely regarded as one of the nearest “real world” examples of a basic income. Although its amount is variable, and too small to guarantee even a poverty-level existence, the PFD is universal, unconditional, and paid in cash at regular intervals, entailing that it does indeed satisfy BIEN’s definition of a basic income.
The PFD reached a peak amount of $2,072 per resident in 2015, but fell to $1,022 in 2016 after Governor Bill Walker used a line-item veto to cut the funds allocated to the PFD by the Alaska Legislature by more than half–a controversial decision that provoked a lawsuit from State Senator Bill Wielechowski, seeking to restore the full amount of the 2016 PFD approved by the legislature. Without Walker’s veto, the amount of 2016 PFD would have been $2,052.
At the time of this writing, Wielechowski’s lawsuit is being considered by the Supreme Court of Alaska, having been dismissed by a Superior Court judge in November of last year. The Supreme Court heard oral arguments on June 20, but its final decision is likely to take months.
Meanwhile, Governor Walker recently signed the state budget for 2017, without exercising any line item vetoes this year. According to KTOO News, the budget includes $760 million for the PFD, which will amount to about $1,100 per Alaskan.
Popular Opinion Survey
Earlier in the year, ESP commissioned a telephone survey 1,004 Alaskan voters, carried out by the market research firm Harstad Strategic Research. According to ESP, the new survey is the “most comprehensive review of public attitudes about the PFD since 1984.”
Respondents answered a variety of questions concerning their attitudes toward the Permanent Fund and Dividend. Asked how much of a difference the PFD has made in their lives “over the past five years or so,” 40% replied that the dividends have made a “great deal” or “quite a bit” of difference, with 28% replying that the dividends have made “only some” or “just a little” difference, and only 8% saying that the dividends have made no difference. Women were more likely than men to say that the PFD has made “great deal” or “quite a bit” of difference (47% versus 33%), and 70% of those who described their economic circumstances as “barely surviving” stated that the PFD had this degree of impact.
While 87% of respondents agreed with the statement, “How people spent their Permanent Fund checks should not determine whether or not the dividend program continues,” respondents meanwhile do not believe that Alaskans use their annual PFD checks frivolously: 85% of agreed that “Many people spend a large part of their Permanent Fund dividends on basic needs,” and 79% agreed that “The Permanent Fund dividend checks are an important source of income for people in my community.” A comparatively small number, though a sizeable minority (43%), agreed with the statement “Many people have wasted a large part of their Permanent Fund checks on such things as liquor or drugs.” Asked about their own spending behavior, 27% replied that they save all or most of the payments, while 30% say that they use the PFD to pay off credit cards or other debt.
Respondents also view the universality of the PFD favorably: 72% support the fact that “everyone who is basically a full-time resident of Alaska” receives the PFD, and 84% agree that “As owners of the Alaska Permanent Fund, Alaska residents are entitled to an equal share of the earnings of the Fund.” Interestingly, though, only 50% favor the distribution of the PFD to “millionaires and multi-millionaires living in Alaska,” suggesting that framing effects may influence respondents’ expressed attitudes towards universality.
The survey also suggests that–in an apparently pronounced change of opinion since the 1984 survey–a majority of Alaskans would prefer the institution of a state income tax over the termination of the PFD if it became necessary for the state to adopt one of these measures to raise money for government services. The preference for keeping the PFD was strongest among those with annual household incomes under $50,000 (72%) and those who described their situation as “barely surviving” (82%). Even those respondents with household incomes over $100,000 tended to prefer preserving the PFD to avoiding income taxes (58%).
Many other related questions were also included in the survey. For more details and graphical displays, see the links in “more information” below.
More Information
Economic Security Project, “Alaska PFD Phone Survey: Executive Summary,” June 22, 2017. Official Executive Summary of the survey’s findings, prepared by Harstad Strategic Research.
Supplemental materials from Harstad Strategic Research:
Taylor Jo Isenberg, “What a New Survey from Alaska Can Teach Us about Public Support for Basic Income,” Medium, June 28, 2017. Blog post summarizing of survey results, with background about the PFD.
Photo CC BY-NC-ND 2.0 U.S. Pacific Command
by Andre Coelho | Jul 4, 2017 | News
Arun Jaitley. Credit to: The Indian Express
India’s Finance Minister, Arun Jaitley, has commented on the nation’s most recent Economic Survey, tabled in Parliament on 31st January, 2017. He himself presented it, just before the day on which the Indian budget was presented, and its contents were discussed previously.
Universal basic income (UBI) has been gaining attention in India in the past few months, and the first Indian National Conference dedicated to UBI was held in March of this year. In his recent remarks, however, Jaitley expressed concern that UBI may not yet be feasible, due to “political limitations”. It’s unclear at the moment what might be causing this “political limitation”, although other leading Indian economists, such as Amartya Sen, have also expressed doubts about the implementation of UBI in India. In spite of this cautious declaration, Jaitley has also said, “I’m fully supportive of his idea (UBI) but realizing limitations of Indian politics”.
While some economists such as Sen and Jean Dreze have been skeptical about UBI as a possible social policy option for India, others such as Pranab Bardhan, Sudipto Mundle and Vijay Joshi have recently prescribed UBI for the country.
The Economic Survey, a document prepared by Chief Economic Advisor Arvind Subramanian and his team, holds that UBI is a powerful idea, although not ready for implementation. It also states that UBI can be “an alternative to a plethora of state subsidies for poverty alleviation”, and that it “would cost between 4% and 5% of GDP”. It also discusses some options to phase in a UBI in India. These key points about UBI in Economic Survey can be read in this short summary.
More information at:
Kate McFarland, “India: Government Economic Survey presents case for basic income”, Basic Income News, February 4th 2017
Austin Douillard, “India: First National Conference on Universal Basic Income”, Basic Income News, May 2nd 2017
Kate McFarland, “Amartya Sen: India not ready for a basic income”, Basic Income News, March 6th 2017
PTI, “Finance Ministry discussing bad bank, basic income proposals: Arun Jaitley”, The Indian Express, June 11th 2017
