SPAIN: XVII Simposium of Red Renta Básica

SPAIN: XVII Simposium of Red Renta Básica

Íñigo Errejón, at the 7th Basic Income Simposium.

 

On the 2nd of November 2017, the city of Zaragoza (Spain) welcomed the 17th Basic Income Simposium, organized by Red Renta Básica (the Basic Income Network affiliate in Spain), which lasted for three days.

In the first day, during the afternoon, the documentary “In the same boat” (trailer here) was screened, followed by interventions by David Casassas (Social Theory professor at the University of Barcelona and member of Red Renta Básica), who explained the normative and technical aspects of basic income, Txema Sánchez (member of Red Renta Básica and the Nulla Política Sina Éthica collective) and Rudy Gnutti (“In the same boat” film director), who claims there is no Left nor Right basic income.

On the second day, the meeting started with a roundtable on how to finance a basic income. This was moderated by Fernando Rivares (from the Zaragosa municipality) and debated by Jordi Arcarons (PhD in Applied Economics at the University of Barcelona), Lluís Torrens (Director of Social Rights Planning and Innovation of the Barcelona municipality), alongside Raúl Burrillo and Jorge Bielsa Callau (Economy professor at the University of Zaragosa). Although it has been shown that a basic income can be financed for the Spanish reality, the financing problem has been a widely debated issue. In the afternoon, Pablo Yanes (CEPAL research coordinator in Mexico) presented his take on what has been developing as the basic income inclusion in the Mexico City Constitution.

On a second roundtable, moderated by Violeta Barba (Aragón Congress president), Daniel Raventós (PhD in Economic Sciences and president of Red Renta Básica), Íñigo Errejón (PhD in Political Science and Congressman for Unidos Podemos political party), Amparo Bella (historian, feminist and Congresswoman at Aragón by the Podemos political party) and Pedro Santisteve (from the Zaragosa municipality) debated around the bold theme “unconditional basic income”. At this moment, Santisteve approaches basic income from a constitutional right perspective. According to him, these rights shall be “locked” inside the constitution, so they cannot be tramped with by any one government. Amparo Bella then introduced basic income under a feminist perspective. This way, basic income shall value all kinds of labour, stressing that work is much more than a job. In his turn, Íñigo defended the upgrade of the welfare state, where basic income shall be the backbone of the needed constitutional reform. Finally, Raventós has pointed out that knowing about the basic income proposal is a crucial step towards supporting it, and that no one can really be free unless he or she has their material needs met.

On the last day, in the morning, the last roundtable took place. This was named “30 years of minimum income: the alternative, basic income”. The discussion then circulated around the failure to eradicate poverty through these (conditional) minimum income schemes, and around the possible alternatives. The debate was moderated by Luisa Broto (from the Zaragosa municipality Social Services) and had the presentations of Mari Carmen Mesa (Spokeswoman to Aragón Social Workers union), Sonia García (CCOO Social Action Secretary) and Julen Bollain (Euskadi Congressman and Red Renta Básica member). Mar Carmen started by showing reservations about the implementation of the basic income scheme in the short term. In the same vein, Sonia García rejected basic income in favour of a (conditional) minimum income scheme (of 430 €/month) which has been presented to the Spanish Congress by CCOO and UGT. However, Bollain argued that in fact conditional minimum income schemes have failed all around the world in the last few decades. He claimed that none of such schemes ever eradicated poverty, but still introduced unnecessary stigma, bureaucracy and administrative costs. He thinks that society must overcome these targeted, conditional policies and fight for the universal, unconditional rights that basic income represents.

 

More information at:

Jullen Bollain, “El XVII simposio de la Red Renta Básica: ¿punto de inflexión? [The 17th Red Renta Básica Simposium: an inflection point?]”, Red Renta Básica, November 12th 2017

AS THE UNITED STATES SLIDES INTO RECESSION (from 2001)

This essay was originally published in the USBIG NewsFlash in December 2001.

 

As I was putting this newsletter together, the National Bureau of Economic Research officially announced that the U.S. economy has been in recession since last March. The delay in the diagnosis is nothing unusual because a downturn is not considered a recession unless it lasts for a significant period of time. But the point at which a recession is recognized is a good moment for reflection on the performance of the economy. Even though the United States is in a recession right now, the long-term performance of the economy as a whole over the last 20 years has been quite good. The expansion that ended in March lasted for exactly 10-years—the longest in U.S. history—and it came after a short and mild recession in the early 1990s, which followed a long, stable expansion during the 1980s. The last 20 years have had the most stable growth in U.S. economic history. The growth was not particularly rapid, but there is a lot to be said for stability. The economy may decline by a few percentage points over the course of the recession, but an economy that grows by 2 or 3 per year during economic expansions can weather the occasional downturn. Thus, although there are worrying signs on the horizon (such as a persistent trade deficit and a high and growing level of indebtedness), the verdict on the performance of the U.S. economy as a whole over the last 20 years has to be largely positive.

Good performance of the economy as a whole does not necessarily mean that it has performed well for all individuals. If one judges the success of an economy by the well being of its less advantaged individuals the performance of the U.S. economy has been terrible over the last 20 years. Real wages at the low-end of the wage spectrum have stagnated or even declined slightly. Usually, poverty declines slowly during expansions and increases quickly in recessions, but there has been no lasting progress in reducing poverty since the early 1970s. The official poverty rate has been stuck in a range between 11% and 15% since the early 1970s. There was an extremely rapid decline in poverty in the 1940s and again in the 1960s, but it has not been repeated since. The ’40s, ’50s, and ’60s were marred by frequent recessions, but individuals across the economic spectrum were able to count on gains during the expansions that would more than make up for losses during recessions. The ’70s were a period of instability in which the less advantaged lost ground, and since then there has been no return to the progress experienced earlier.

Why were the experiences of the less advantaged so different during the good economic times of the ’80s and ’90s than they were in the ’40s, ’50s, and ’60s? The difference is largely one of government policy. The earlier period saw the GI Bill, the fruition of Social Security, the expansion of AFDC and Medicare, increases in the minimum wage and the creation of Food Stamps and Medicaid. Since the early 1970s, many of these programs have been canceled or allowed to lapse or have been effectively cut by not being adjusted for inflation. These programs were not the best possible programs for fighting poverty, but they were all we had, and rather than being reformed, they’ve largely been cut with little or nothing to replace them aside from TANF, which seems to make welfare so unpleasant that jobs without living wages are preferable. TANF has been declared a success simply because it has reduced the number of families on welfare. The success of TANF should be measured instead by whether it reduces poverty and whether it makes children healthier and happier and whether it helps them grow into better-adjusted adults. Should it be any surprise cutting nearly every program designed to aid the poor should slow or stop the progress we had been making toward the reduction of poverty? Something else is needed if poverty reduction is our goal.

During recessions, people often voice opposition to direct anti-poverty policies, arguing that the best way to help people is to get the economy moving again. During expansions, the argument is usually to keep it moving or to get it moving faster. They say, “a rising tide lifts all boats,” and everyone benefits from economic growth. But the lesson to learn from the last twenty years of economic expansion is that these arguments are simply false. The incomes of low-wage workers stagnated during the good economic times of the ’80s and ’90s because policy turned against the redistribution of income, but they increased during the good economic times of ’40s, ’50s, and ’60s because policy favored increased redistribution of income. There is no inherent mechanism in a capitalist economy to ensure that everyone will share in the fruits of economic growth. I believe that a basic income guarantee is essential to ensure that everyone shares in our economic success. This and other strategies for better distributional equity will be discussed at the First Congress of the U.S. Basic Income Guarantee Network. I invite you to join us.

 

Karl Widerquist, New York, NY, December 2001.

Universal Basic Income and the Duty to Work

Universal Basic Income and the Duty to Work

Philippe Van Parijs, co-founder of BIEN and professor emeritus at Université catholique de Louvain, presented a talk about Basic Income and citizen work duties at the Q Berlin conference, held on the 19th and 20th of October 2017. This was the first installment of Q Berlin but it is set to become an annual event where specialists and influencers from various fields present talks and answer audience questions on five broad topics. [1] Van Parijs’ talk concerned the topic, ‘What do you do when there is nothing left to do?’

When I heard this question, the first thought that sprang to mind was ‘what should a government faced with an unmanageable level of unemployment do when conventional policy has failed to resolve the issue?’ Perhaps then a seemingly radical solution, such as universal basic income (UBI), becomes plausible.

Van Parijs took a different take on this question: what would human beings do when they need not work to survive? Critics of UBI persistently raise concerns that individuals who are not incentivised to work will become idle because they will apparently have nothing left to do.  Van Parijs argued that any reasonable proponents of the policy understand that people will have things to do.

UBI frees individuals from having to work, allowing them to broadly pursue their own conception of the good life. Those who prefer to become employed would hold more negotiation leverage with their employer.  In fact, Van Parijs stated that UBI gives individuals the freedom to say ‘yes’ to jobs. Individuals will not have to do that which they do not wish to do. Fewer people will engage in menial and unsatisfying work.

UBI creates a floor (minimum level) on the income distribution curve, alleviates poverty, and gives bargaining power to the ones who have it least. In this way UBI acts as a systematic subsidy for all underpaid or unpaid jobs that are undervalued by the market but which people wish to do. With UBI, the demand for menial, gruelling work is expected to decrease. Van Parijs theorised employers may be forced to increase the wages for such jobs.

Van Parijs presented UBI as venture capital that allowed individuals to do anything they wish to do. Those who prefer to change fields can invest in education and training. The option to retrain is a particularly pertinent concern for those whose job is at risk of automation.

Forgetting about work for a moment (if you can), think about what you should do when your physiological needs are no longer a concern. If you’ve had a passion at the back of your mind then you might finally pursue it. If, on the other hand, you’ve passed life going from one kind of busy to another, then you might have missed opportunities to reflect and figure out what you would like to be doing. The cost of failure may have been too high if it meant putting you or your family’s livelihood at risk.  

At this point in the talk, Van Parijs paused and asked the audience a question. Assuming UBI ensures a basic livelihood for everyone in a community, do these citizens have a duty to give back by working? Do individuals have a duty to accept paid, available employment? Some supported the idea, more disagreed. He then reframed the question and drew a distinction between formal employment and work broadly. Do individuals have a duty to do something? Van Parijs asked the audience to think of examples of socially-beneficial work. Most respondents agreed individuals have a duty to do something, apparently if it is socially beneficial.

Van Parijs preferred not to tell others what they should do. When asked off-stage, he said he has his own conception of the good life and was reluctant to share the details. Rather he said there was something about people helping each other for its own sake that makes for a good society. A society is not well functioning if it’s members are not interested in actively improving each other’s well-being. Working for your community takes several forms. Van Parijs drew the example of caring for the those who cannot care for themselves (such as the elderly, children and disabled). One could volunteer for various causes they care about, whether they be social, environmental, tech-related or so on.

Even if you disagree that working for your community (or giving back) is a duty, if you’re not doing anything else, why not try it? In the best case, your efforts will be appreciated. Your recognition that you have alleviated the suffering of others might make you feel like you have done something meaningful. In the worst case, you might think your efforts yielded insufficiently satisfying results, be it for yourself or your target beneficiaries, and you have wasted your time. UBI provides the opportunity for you to try contributing to your community in different ways. This freedom lets you find a way to contribute that is most satisfying for yourself.

 

Notes:

[1] This year, the topics included: ‘Imagine yourself as the other self. How do we embrace tolerance and difference?’ ‘What will be the next social contract?’ ‘Urban Angst and Stamina. What are the promising concepts to handle the rise and fall of the city?’ ‘How should we govern at the pace of economic, social and technological change?’and ‘What do you do when there is nothing left to do?’

Namibia May Be Considering Basic Income Grants

Namibia May Be Considering Basic Income Grants

The Ministry for Poverty Eradication and Social Welfare in Namibia has floated the possibility of introducing basic income grants for those between 19 and 59, according to Namibian national daily paper New Era.

The Ministry was set up in early 2015, following the landslide election of President Hage Geingob. It is headed by former Bishop Zephania Kameeta, who has a history of universal basic income (UBI) advocacy. A paper entitled Blue Print on Wealth Distribution and Poverty Eradication, put out by the Ministry in May 2016, stated that “measures should provide people with tools that build resilience and self sufficiency to break the cycle of poverty. Social safety nets are one of such measures that can help graduate people out of poverty to sustainable livelihoods.”

Reporting on an initiative by the Ministry to discuss implementation of the poverty eradication plan, New Era titled their article “Basic Income Grant Under Consideration”, and ended it with the sentence, “The ministry will also look into introducing a basic income grant for people between the ages of 19 and 59, who do not qualify for the existing grants yet do not have means to sustain themselves.” At the time of going to press, no external confirmation could be found of New Era’s statement on basic income grants; however, although the paper is technically owned by the New Era Publication Corporation, it is in fact openly run by the Namibian state and as such may have more detail on government policies than other national newspapers.

Namibia has a population of approximately two million people, and for some time was part of South Africa, only gaining independence in 1990. Geingob is the third President of an independent Namibia.

UK: European Social Survey (ESS) teaming up with Ronnie Cowan MP in event revealing the UK’s attitude to UBI

UK: European Social Survey (ESS) teaming up with Ronnie Cowan MP in event revealing the UK’s attitude to UBI

As part of the Economic and Social Research Council’s (ESRC) Festival of Social Science 2017, the European Social Survey (ESS) is teaming up with Ronnie Cowan MP in a free event that will be held in Portcullis House, Westminster, from 9am on Thursday 16th of November to discuss the UK’s attitude to Universal Basic Income (UBI).

 

For the first time in the history of the ESS, a question was included in the welfare section of face-to-face surveys asking the participant’s opinion of a UBI. Using the data collected, which was released in October 2017, the event will discover whether there is an appetite for introducing a UBI in the UK. ESS will also present analysis of data in the context of other welfare attitudes gathered throughout the survey. Following presentations, there will be an open Question and Answer session in which attendees will have an opportunity to ask speakers what they think the implications of this data are for public policy.

 

Analysis of responses gathered through the ESS will be presented by members of the ESS HQ team, including the Director, Professor Rory Fitzgerald, who is based at City University, London. Professor Fitzgerald said: “This is the first time that we have included questions in the European Social Survey on the concept of a universal basic income so we are really excited to discuss the results. We will focus on how the UK compares with other European countries, and public opinion on other items included in our welfare module”.

 

Ronnie Cowan MP said: “A universal basic income is an idea which has been considered in various forms for over two hundred years. Luminaries such as Abraham Lincoln and Dr Martin Luther King have supported the concept as a way of helping alleviate poverty and providing society with a safety net… I wholeheartedly welcome the Scottish Government’s recent commitment to establish a fund to support local authorities as they develop their own basic income schemes… The Basic Income pilot projects are vitally important to the debate. To design, run and monitor pilots and analyse the results takes a great deal of expertise and effort but they may have the potential to shine a light on any shortcomings – opportunities and ultimately produce solutions… I believe a universal basic income is an idea whose time has come and I very much look forward to discussing the subject further.”

 

You can register for the event here.

 

More information:

The future of welfare: Basic income?‘, European Social Survey News, 25th October 2017