United States: Alaska citizen’s monthly payment means recipients work more, not less

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

US: Stanford’s Basic Income Lab plans new schedule of events

US: Stanford’s Basic Income Lab plans new schedule of events

Launched in February 2017, the Basic Income Lab (BIL) at Stanford University’s McCoy Family Center for Ethics and Society aspires to provide information and advice to researchers, policy makers, and other individuals and groups engaged in the design and implementation of basic income experiments or policies.

Already this year, BIL has held a panel discussion on basic income experiments, in which Joe Huston described the large-scale experiment to be conducted in Kenya by the New York based non-profit GiveDirectly, Elizabeth Rhodes discussed the plans to Silicon Valley’s Y Combinator to run a basic income experiment in the United States, and Guy Standing reviewed the results of a pilot study in eight villages of the Indian state of Madhya Pradesh. It also hosted a presentation by Philippe Van Parijs of his new comprehensive book on basic income, Basic Income: A Radical Proposal for a Free Society and a Sane Economy (with Yannick Vanderborght). Now, BIL is preparing for both public and private events to be held throughout the upcoming academic year.

In September, BIL will co-host the Cities and Universal Basic Income Workshop, working aside the Economic Security Project (ESP), the McCoy Family Center, and the National League of Cities, which recommended investigation of city-level basic income programs in its 2016 report The Future of Work in Cities. This private event aims to inform city leaders and other researchers about the latest developments regarding current and planned basic income experiments, and to investigate the possibility of implementing municipal-level basic income policies. Additionally, BIL has scheduled two co-sponsored public lectures on the relationship of basic income to issues of gender and race: in October, Almaz Zelleke (NYU Shanghai) will visit Stanford to speak about how basic income can impact gender justice; then, in January, Dorian T. Warren (Roosevelt Institute, ESP) will speak about basic income in relation to racial justice.

Juliana Bidadanure in audience at BIL panel

BIL is led by Faculty Director Juliana Bidadanure, a philosophy professor who last year designed and taught a graduate seminar on basic income. Describing the mission of the lab, she states, “There is an increasing need for in-depth academic research on various policy designs for UBI and how to evaluate its implementation – assessing the visions that underpin unconditional cash, the political and economic feasibility of various proposals, as well as its strengths and weaknesses as a measure to alleviate poverty and inequality.”

In addition to her work with BIL, Bidadanure is preparing to teach an undergraduate course on basic income during Stanford’s winter term.

To stay abreast of BIL’s activities, subscribe to its mailing list and follow BIL on Facebook.


Reviewed by Dawn Howard and Juliana Bidadanure

Photos from the Basic Income Lab’s “Experiments in Unconditional Basic Income” panel; credit: Christine Baker (at EthicsSoc).

Universal basic income could work in Southeast Asia – but only if it goes to women

Universal basic income could work in Southeast Asia – but only if it goes to women

(left, front) Tamara Nair. Credit to: Rajaratnam School of International Studies

 

A form of basic income could be used to empower women in Southeast Asia, according to a recent article by Dr Tamara Nair. Writing for The Conversation, a news and feature-based website with approximately 5 million monthly users, Dr Nair explores the possibility of a basic income project that could be targeted exclusively towards women.

Dr Nair is a Research Fellow at the S. Rajaratnam School of International Studies (RSIS), which is part of the globally respected Nanyang Technological University in Singapore. The NTU has been described as one of the world’s top universities by a number of major ranking systems, and has a focus upon original research.

In this article, Nair sets out a modified form of basic income that she believes could be used to lift women in Southeast Asia out of poverty, as well as reducing malnutrition in the area.

Dr Tamara Nair, “Universal basic income could work in Southeast Asia – but only if it goes to women”, The Conversation, 11 July 2017

DETROIT, MI, US: Write-in mayoral candidate includes UBI in action plan

With the primary election for Mayor of Detroit on the horizon on August 8, write-in candidate Ingrid LaFleur has proposed a city-wide basic income as part of her Plan of Action for the city.

LaFleur is a curator, arts advocate, and founder of the creative research project AFROTOPIA, whose candidacy for Detroit mayor has previously received coverage in the New York Times.

She frames her campaign around a vision for a new economy that “meets human needs, enhances the quality of life and allows us to live in balance with nature.”

The cornerstone of LaFleur’s plan for a new economy is a municipal basic income of $2000 per month based on blockchain technology. She proposes a new cryptocurrency for the city of Detroit, which she calls “D-coin,” which can only be used to pay for goods and services provided by local businesses, fares for public transportation and other city services, and local taxes.

Under LaFleur’s plan, one half of the $2000 basic income would be paid in D-coins, the other half in US currency. She further proposes that “[a]dditional D-coins can be received for volunteering time at a Detroit organization or program in need of assistance.”

All Detroit residents over 18 years of age, including those who are incarcerated, would be eligible to receive the basic income after having resided in the city for three years.

According to LaFleur, a basic income is necessary to alleviate poverty and offset the economic effects of job loss due to automation. Meanwhile, she argues that her plan for a local cryptocurrency would boost the economy of Detroit.

The two leading candidates in Tuesday’s primary will advance to the ballot for the general election, to be held on November 7. The current frontrunner is incumbent Mike Duggan, trailed by state senator Coleman A. Young II. Six other candidates are also on the ballot, but trail Duggan and Young by wide margins.


Reviewed by Genevieve Shanahan

Photo (Detroit skyline) CC BY-NC-ND 2.0 Mike Boening Photography

IRELAND: Social Justice Ireland Endorses EU-wide Basic Income System

IRELAND: Social Justice Ireland Endorses EU-wide Basic Income System

Comments to European Economic and Social Committee (EESC) consultation on the Future of Europe in Dublin, Ireland, June 7, 2017

Social Justice Ireland, an independent Irish think tank and justice advocacy organization, has endorsed proposals for the introduction of an EU-wide basic income system. Speaking at an EESC event held in Dublin on June 7th, Dr Seán Healy, Director of Social Justice Ireland, identified two key areas eroding confidence in the EU:

“1.1. Failure to address the ongoing vulnerability of many EU citizens.

1.2. Failure of the European Commission to protect small countries against its larger, stronger members.”

Addressing the first point, Dr Healy referred to recommendations made in May 2017 by a UN expert group meeting on “Strategies for Eradicating Poverty to Achieve Sustainable Development for All”:

“The social welfare systems in developed countries are no longer fit for purpose. There should be an adjustment of the paradigm including promotion, and openness to study new ideas around a new social contract that is more appropriate for the 21st century. This may entail moving towards a universal basic income system, supporting a living wage rather than a minimum wage, recognizing all work (not just paid employment) as meaningful, and ensuring that all government decisions are subjected to a poverty-proofing process. While the centrality of employment and decent jobs to eradicate poverty is well recognized, employment growth has not been sufficient to absorb the growing labour force, particularly in those countries and regions with large youth populations. Further, there has been a divergence between productivity and wages growth, as well as growing employment insecurity and casualization in all countries.”

In his speaking notes, Dr Healy agreed with the UN expert group’s analysis and recommendations, adding that the EU has consistently ignored these issues. According to Dr Healy, none of the five options provided in the EU White Paper on the Future of Europe address these points, going on to note that:

“An alternative option is required that will protect the vulnerable and move towards a future that effectively addresses poverty, unemployment, inequality and exclusion. The EU needs to become, and be seen to become, a caring Union.”

In the context of Irish politics, universal basic income (UBI) has been endorsed by some of the main political parties. The Green Party has long been in favour of the establishment of a basic income, while Fianna Fáil—the country’s second largest party—has talked about the idea for many years. Fianna Fáil’s spokesperson on social protection, Willie O’Dea, has called for radical reforms of the welfare system. The veteran politician and basic income advocate has said that, if Fianna Fáil were in office, a government-established commission would report on the idea within six months. Writing about UBI in a news article in January of this year, he said:

“While the broad concept of UBI has been around for a while, the challenges facing us today – particularly the changing and often precarious nature of work, not least the threat to jobs posed by automation and short-term contracts – make it a realistic and workable response.

“UBI would replace virtually every non-pension welfare payment except disability and housing benefits. Scrapping the myriad complex and often contradictory welfare codes would mean the end of welfare administration and expensive means-testing, an end to pointless and unproductive Intreo/job-centre interviews and hated sanctions. The biggest long-term saving, however, would stem from ending the poverty trap disincentives built into the current system, where taking a job can leave you financially worse off.”

The current government, which was formed following the appointment of Leo Varadkar as Taoiseach (prime minister) in June 2017, comprises the largest Irish political party, Fine Gael, and several independents, and is propped up by Fianna Fáil – Fine Gael’s historic rival – in a confidence and supply agreement. Fine Gael have been critical of Fianna Fáil’s basic income proposals and they do not currently have any proposals for the introduction of UBI. The Irish budget for 2018 will likely bring about increases to existing social welfare payments without any of the radical reforms proposed by rival parties.

 

References and further reading

Dr Seán Healy, Comments to the EESC Consultation on the Future of Europe, Social Justice Ireland, June 2017, <https://www.socialjustice.ie/sites/default/files/attach/publication/4855/2017-06-07-jointeventforeesc-seanhealyspeakingnotes.pdf>

Expert Group Meeting, “Strategies for Eradicating Poverty to Achieve Sustainable Development for All”, United Nations Headquarters, 8-11 May 2017, <https://www.un.org/development/desa/dspd/wp-content/uploads/sites/22/2017/04/report-egm-poverty2017.pdf>

Willie O’Dea, “Basic incomes for all would end the welfare poverty trap and give people greater control of their lives”, Independent.ie, 19 January 2017, <https://www.independent.ie/opinion/comment/basic-incomes-for-all-would-end-the-welfare-poverty-trap-and-give-people-greater-control-of-their-lives-35379503.html>

European Commission, “White Paper on the Future of Europe”, European Commission, March 2017, <https://ec.europa.eu/commission/sites/beta-political/files/white_paper_on_the_future_of_europe_en.pdf>

 

Reviewed by Genevieve Shanahan

Photo: Irish flag, CC BY-SA 2.0 by jcdcv