Opinion: Time for a citizen dividend

Opinion: Time for a citizen dividend

Guaranteed income programs are popping up everywhere in the US. It is time to expand beyond local pilot programs and embrace a nationwide Citizen Dividend, an annual distribution of a share of business profits to every American, to beat back against rising economic inequality and hold true to our deepest American values.

Three years ago, perhaps the only widely known American guaranteed income program was the Alaska Permanent Fund which doles out annual payments to every Alaskan funded from state oil and gas revenue. In recent years, pilot programs giving $500 – $1,000 a month to low-income residents have been implemented or proposed in Stockton, California; Jackson, Mississippi; Phoenix; Pittsburgh; and Chicago.  

Perhaps the simplest, widest-reaching, and easiest to implement form of guaranteed income we could adopt would be the Citizen Dividend. The debate around guaranteed income often boils down to two fundamental questions: Who deserves the income and how can we pay for them?  With a national Citizen Dividend, we answer both of those questions clearly and compellingly. 

First, who deserves this income?  We all do. No business in this country turns a profit without using wealth we all own together – our natural resources; our societal resources like our roads, our public safety, and our education system; and our inherited systems like our Constitution and our courts. Every citizen has an equal ownership stake in these forms of collective wealth. Therefore, each American deserves some slice of the profits realized by their use. Sure, individual hard work, talent, and good strategy help bring about business success.  Imagine though trying to create value without energy, roads, courts, and an educated workforce. It would be downright impossible. 

Second, how do pay for this income? A Citizen Dividend is funded through one form of our collective prosperity – business profits. Businesses should retain 95% of their profits to invest in growth, return wealth to private shareholders, and pay the government for the services our society needs (e.g. taxes). But 5% of those profits should be returned to each American in recognition of the collective wealth that was used to create those profits.

Easy to understand and clear in its funding, a Citizen Dividend would have a meaningful positive impact on the lives of Americans and on the fabric of our economy. Using 2015 estimates on business net income, a Citizen Dividend could return $570 to each American every year – or over $2,200 for a family of four. This payment – which amounts to nearly two months of rent or food for the median American family – could stave off some of the harshest impacts of rising inequality.  But perhaps more importantly, it would challenge the false narrative that profit is created merely through individual action and that wealth should be hoarded by those who have the opportunity to do so. Instead, it would reinforce a deeper American story, that we are our best as a nation when we come together across all our differences to blaze a trail toward a common future. 

A Citizen Dividend breathes life into the spirit of our nation’s first motto – E Pluribus Unum – out of many, one.  It is time we recognize what truly belongs to every American and be bold in our willingness to build an economy that reflects our best values. It is time for a Citizen Dividend.   

Brian C. Johnson is the CEO of Equality Illinois and the author of Our Fair Share: How One Small Change Can Create a More EquiBrian C. Johnson has served in education and advocacy, community organizing, and political activism at local and national levels for two decades, dedicated to the American promise of fairness for all. He’s been featured on CNN and in The Washington PostUSA Today, and The New York Times. Johnson currently serves as the CEO of Equality Illinois, one of the nation’s most successful LGBTQ civil rights organizations. He lives with his husband and their daughter in the Lincoln Square neighborhood of Chicago, Illinois.

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Is Taiwan ready for a basic income referendum?

Is Taiwan ready for a basic income referendum?

Taiwan has seen its first series of referendums since the significant liberalization of its referendum law early this year. The results could have implications for the basic income movement in Taiwan and possibly the Asia Pacific.

There has been discussion among Taiwan’s basic income activists to organize Asia’s first basic income referendum on the island.

In January, the new referendum law came into effect in Taiwan, lowering the threshold for the number of signatures required to get a referendum on the ballot. The law also decreased the voting participation requirement from 50 percent to 25 percent.

Such a change made it realistic for a basic income referendum to make it to the ballot in Taiwan.

During the election last weekend, seven of the ten referendums were passed, the first such national referendums to pass in Taiwan’s history. Long lines waited for hours to vote, as many carefully studied the referendum language.

Most notably, opponents of gay marriage successfully passed three anti-LGBT referendums (two pro-LGBT referendums failed to pass), putting Taiwan’s legislature in a precarious position since its top court mandated that same-sex marriage must be legally recognized by May 2019.

How the referendum results will affect legislative action is unclear, since there is no precedent for legislating referendum results in Taiwan. Additionally, the referendum law does not create clear enforcement mechanisms to compel the legislature to act (except in the case of abolishing laws, which must take place within three days of the referendum result).

Regardless of how legally binding the results actually are, Taiwan’s legislature will feel pressure from the popular results to follow the principles of the referendums.

If Taiwan’s government fails to put the referendum results into law, it could have a chilling effect on future referendum movements and create questions about Taiwan’s democracy. There have already been signals from Taiwan’s presidential office that approved referendums regarding nuclear and coal will not lead to a change in energy strategy.

On the other hand, a robust response from the legislature will mobilize activists to utilize referendums as a key legislative strategy. It is likely that 2020 will see a wave of even more referendums than this year.

If some an income guarantee referendum were to pass, Taiwan’s government would only be compelled to submit a proposal and discuss the policy. There would have to be a significant societal mandate from the referendum to ensure the legislature will act to pass a law.

Polling from Academia Sinica and UBI Taiwan find 40 percent to 47 percent respectively of Taiwanese support basic income. As was seen with the competing gay rights referendums, using referendum as a vehicle to advance basic income can also mobilize opposition groups.

The LGBT referendums invited a wave of international attention. Certainly, a basic income referendum would attract regional and international attention as well.

However, a premature basic income referendum without institutional support and lacking a broad activist movement to defend the idea poses substantial risks. Basic income is still a new idea in Taiwan and Asia in general, and misunderstandings could derail the idea before it has an opportunity to develop in the region.

Anti-LGBT groups outspent the pro-LGBT movement and used misinformation and scare tactics to successfully persuade a large portion of Taiwan that LGBT marriage threatened the next generation of families. 

It is without question that a basic income referendum would invite backlash from invested groups, who would probably have more financial resources than the nascent basic income movement in Taiwan.

Would an overwhelming vote in opposition to basic income do more harm than good for the movement in Taiwan and the Asia Pacific?

Certainly, Switzerland’s referendum was incredibly successful in propeling discussion of the idea around the world, even though it failed at the ballot box. However, both civic society and basic income activism are far more mature in Europe than in Taiwan.

A rejected basic income referendum in Taiwan could be portrayed as yet another global failure for UBI, along with the cancelled experiment in Canada, the ending of the Finland pilot, and even the rejection of the original Swiss referendum.

If I had to wager, I would bet that the societal discussion over basic income generated from a Taiwanese referendum will be overall helpful to advancing the movement in the Asia Pacific even if it does fail. This is especially true since backlash from opposition groups is inevitable anyway.

It is essential, though, that the basic income movement in Taiwan and beyond carefully consider its strategy to make UBI a reality.

Basic Income Interviews: Juon Kim

Basic Income Interviews: Juon Kim

Juon Kim has been an organizer of Basic Income Youth Network in Korea since 2013. In March of this year, Juon ran for a proportionate candidate of Green Party Korea in the general election, representing the party’s UBI agenda. She’s currently a graduate student of cultural anthropology, and plans to write her MA thesis about basic income.

In this Basic Income Interview, Juon talks about how she came to learn about and support basic income, and why she is now an activist.

About 5 years ago, only a few people in Korea knew about basic income, including my friends. Since they were studying basic income, I became aware of it but was not attracted to it at first. But after reading two women’s books, I decided to live as a UBI advocate and joined the Basic Income Youth Network based in South Korea.

One book is Virginia Woolf’s A Room of One’s Own. “It is necessary for women to have five hundred pounds a year and a lock on the door if you are to write fiction or poetry.” It reminded me of basic income immediately. The other is Carole Pateman, a feminist political theorist saying that basic income could guarantee universal economic citizenship of women.

Juon Kim at the 2016 BIEN Congress in Seoul

Juon at the 2016 BIEN Congress in Seoul

When I was young, I dreamt of becoming a human rights lawyer. Many discrepancies in the society seemed to have been caused by law which is a tool only for the powerful. I entered university envisioning that I would stand in the forefront of social changes with the law as the tool for justice. I was even thinking of branding law firm ideas to increase my chances of being someone’s first choice to defend them.

But the university that I encountered back in 2010 was no more than a ruin. The gravity of making ends meet pulled heavily against my attempted search for friends with whom I would find solutions to the social ills. No time could be wasted if it wasn’t for career preparation, no space was available without fees, and ultimately no freedom to plan my life as I wanted was granted.

Fortunately, there were great classes and friends in and out of the campus. There were those who were being forcefully evacuated from the very place of their livelihoods in their cities, those who are taking their lives in their hands just to reclaim their lost jobs, and those religious figures, LGBT activists, disability-rights activists, grass-root activists and youth activists who fought against state violence and its forced militarization of Gangjeong village in Jeju island and forced nuclearization of Miryang in Korea.

I saw how they tried and worked to rebuild hope in their own respective communities. We met in support, delight and equality. I experienced happiness rising from others even amidst poor material conditions.

In our encounters I realized something. All of us who were dreaming of a better life, one that’s better than now, were in fact fighting against ‘dual poverty’. They fought against poverty of their own and simultaneously poverty of the world.

What I endured was not different from what they endured. It was in this moment I was introduced to the idea of ‘basic income’. I strongly related to its philosophy that the rights to eat and live should be guaranteed just for the reason that I am a constituent of this society.

What if the activists I met who suffered from dual poverty had basic income? What if my colleagues, women, youth and young adults, farmers, artists and seniors had basic income? What happens when there appears this gift called basic income in the Korean society, whose severe income bipolarization and winner-takes-all structures in all corners render all untrustworthy toward each other?

I imagined an alternative made possible by the hope called basic income to those who give up their lives or terrorize others’ lives because there cannot be a better tomorrow. Then I joined basic income movement because I wanted to imagine all these possibilities as one.

The ‘human rights’ that used to be so nondescript when I wanted to be its lawyer took shape as an economic citizenship, basic income. Basic income as the fundamental right for all humans. I hope it becomes a common sense to all everywhere in the world in the nearest future.

Photos used by permission of Juon Kim. (Cover photo: Juon promotes basic income at International Women’s Day, dressed as a suffragette.)

Juon wishes to thank her friend Heehe for translation assistance.


Basic Income Interviews is a special recurring segment of Basic Income News, introduced in July 2016 by Jason Murphy and Kate McFarland. Through a series of short interviews, we aspire to display the diversity of support that basic income receives throughout the world.

Have your own thoughts to contribute? Want to see yourself in a future Basic Income Interview?

Visit our interview form.

Will liberals be our allies in the struggle for basic income?

Will liberals be our allies in the struggle for basic income?

Before beginning this essay, let me describe the people about whom I am speaking when I use the term “liberal”. In the American 21st century context, I am essentially describing the people you would likely find in the leadership of the Democratic party. Despite the conservative view of mainstream liberals as radical socialists, they are, at most, cautious reformers. Even that probably goes too far. The way they depict themselves, and probably actually see themselves, is as people who believe in the system, but want it to be fairer, more compassionate, and more efficient. When viewed systematically, the most important of those is efficiency. A look at policy reveals that the primary aim of liberals is using the government to make capitalism work better and more efficiently. This also applies to seemingly non-market concerns like welfare benefits, civil rights, and education.

Let us look at equal pay and anti-discrimination labor laws for women. Some economic theorists on the right argue that such laws are unnecessary. According to them, the market would automatically correct any form of discrimination. If sexist employers refused to hire women or paid them significantly less than their equally skilled male counterparts, other employers would exploit the opportunity to hire the women at higher wages. The productivity gains of the fairer employers would lead to emulation and competition for women workers until parity with men is achieved.

Liberals usually respond by appealing to empirical reality. If this argument were true today, it would have also been true in 1910. We know there was sex discrimination then, as there continues to be today. If markets corrected inefficiencies by themselves, there would never have been any gender discrimination. But liberal arguments do not contradict the claim that sex discrimination is inefficient. Laws preventing gender discrimination may be just and compassionate, but they also make markets work more efficiently. Eventually, laws against gender discrimination turned out to benefit employers as much as they benefited women. In the documentary Inequality For All, Robert Reich showed that employers took advantage of the growing numbers of women in the workforce competing with men for the same jobs, and this was one of the factors that eventually lead to the leveling off of real wage growth that began in the United States in the late 1970s and early 1980s .

This analysis applies across the range of policies pushed by liberals. Consumer protection laws and tort laws may protect and compensate consumers, but they also encourage trade by making it easier to trust strangers in the market. Public health care and education saves and enriches people’s lives, but they also produce a skilled and healthy workforce for employers. Laws that support strong unions help the workers themselves, but they also increase workers’ wages so that they can spend more as consumers. Infrastructure projects provide public goods that are used by all, but they notoriously prioritize the needs of businesses over the needs of the disadvantaged communities where they are inevitably built.

What about same-sex marriage? It is crucial for social justice, but does it help market efficiency to allow people to marry whom they wish? No, it does not, and that is why same-sex marriage provides a useful counter-example. The fact is that same-sex marriage was never really a mainstream liberal goal. Nor was it really a goal of the large mainstream gay rights organizations. The main goal was just for more acceptance of the LGBTQ+ community. If straight people can partake in hookup culture on apps like Tinder then why can’t gay people go on Discreet Gay Dating without being judged for it? If dysfunctional heterosexual couples can have a baby why can’t stable same-sex couples adopt one? Both the politicians and the organizations focused on the acceptances of the community and getting anti-discrimination laws passed, which do serve market efficiency as previously noted. Same-sex marriage as a goal arose from the gay and lesbian grass roots and was pursued more through the courts than through legislation. As late as 2008, all three top contenders for the Democratic nomination for President declared their opposition to same-sex marriage. The speed and enthusiasm with which virtually all of the top Democrats reversed their positions the moment same-sex marriage polled over 50% could certainly cause a person to doubt the sincerity of their previous opposition. But to blame that insincere opposition on political cowardice would be to miss the point. Professional politicians fight uphill battles against initial public opposition a lot. But they also have to pick their battles. And however much powerful liberals may have secretly sympathized with the plight of their gay and lesbian friends who wished to marry, and may have even supported them with donations towards items to help them consumate such a marriage (be it a feeldoe or helping with the ceremony itself), they were simply not going to prioritize a political battle for social justice that would not increase market efficiency, grow the economy, and enrich their campaign donors.

So where does this leave us with basic income? To answer this, we need to examine how liberals approach welfare in general. It is certainly true that they support much more generous benefits than conservatives, they also tend to be even more concerned with separating the deserving poor from the undeserving poor than conservatives, whose main concern is turning whatever welfare spending that does exist into a way to funnel that money into corporate coffers. Liberals usually support robust Earned Income Credits, a kind of negative income tax limited to low wage earners, dropping off quickly above the poverty line. They support benefits for children and the elderly as well as the disabled, although they can be extremely strict about whom they consider disabled. They will give welfare benefits to unemployed single parents sparingly, on a temporary basis, and require education or employment search conditions designed to get the parents back to work as soon as possible. Drug and alcohol abuse are seen as reasons to cut off benefits. For unemployed working age adults, liberals sponsor “Care Not Cash” initiatives, which replace cash benefits with direct services, in the few localities that offer any benefits at all.

The pattern is clear: liberals believe that humans have value primarily as engines of production and consumption. Within this view, welfare is a legitimate tool to push people into the labor market. This ensures that goods and services can be produced. Those who do work and those incapable of working are to be given a sufficient income to take them slightly above the poverty line. This appears compassionate, but the systemic reason is to ensure that they have just enough money that they spend all of it. This way there is sufficient demand for goods and services to be produced, but people can not save enough money to become capitalists or be able to leave the workforce. Indeed, virtually all public assistance programs cut off recipients with any significant savings. While conservatives fight for the direct interests of the capitalist class, liberals fight for the interests of the capitalist system.

I understand that few liberals consciously believe and support the goals and beliefs which I ascribe to them here. They believe they are compassionate people who want to make the system work better for the unfortunate. That is probably true. But it does not matter. Like with institutional racism, the conscious intent of the participants does not matter; it is their actions and the results that matter. And the fact is, if you assume that the primary concern of liberals is market efficiency, you will predict their actions better than if you assume that their primary concern is uplifting the downtrodden or achieving economic and social justice.

Let us look at one more example before we turn to basic income: the minimum wage. One obvious way that the minimum wage fits the pattern I have described is that you have to be employed to benefit from it. A less obvious way is that it looks free, but it is actually a tax that is passed on to consumers, so it is the middle class that pays for it, not the capitalist class.

But the most striking way that the minimum wage fits this pattern is when you look at its amount. Democrats pick a new number every seven to twelve years. They refuse to index it to inflation so they can have at least one winning issue against Republicans every decade. Opponents of raising the minimum wage always mock the arbitrary nature of the new number picked and ask something like, “Why not $100 per hour?” Liberals typically dismiss this mockery with empirical evidence, pointing out that raising the minimum wage has almost never resulted in a loss of jobs, and sometimes results in increased employment due to increased demand.

But as with anti-discrimination laws, just because right-wing critics are empirically wrong does not mean that they do not have a point. What criteria do liberals use to determine how much the minimum wage should be? $100 per hour likely would wreck the economy. But if $10.10 per hour, the current consensus goal of the Democratic Party, would have no ill effects, why not fight for $15, or $20, or $25? Why not commission a study to determine the maximum sustainable minimum wage? Applying the principle that liberals are working to support the capitalist system, we can see where they get their numbers. Liberals pick a minimum wage that puts workers near the edge of the poverty line, where they can be good consumers but never save enough to exit the workforce.
So what can we expect from liberals in the fight for a basic income?

We can start with two broadly optimistic points. First, since liberals are concerned with efficiency, evidence can sway them, and the scientific and empirical evidence is strong that a basic income is cheaper to administer, raises health and education outcomes, and does not cause people to quit working and live an idle life. Masses of healthy and educated people working and spending money churns the economy, and this is good for the capitalist system.

Second, liberals will join the basic income cause with little hesitation when the technological unemployment crisis starts receiving mainstream media attention. While liberals will tolerate significant unemployment because it keeps down labor costs, they will see too large a number of unemployed as wasted potential consumers. This will be especially true if more workers are not actually needed to produce the goods and services that the unemployed could otherwise buy.

Now the caveats.

Let me start off with a particularly American concern. Despite the significant libertarian origins of and current support for a basic income, many people hear the idea of the government giving everyone free money and they think, “socialism”. And in America, this is a problem. Despite the good arguments that could be made that the United States in the 1950s and 1960s had the most socialist economy that has ever existed in human history, America during the Cold War defined itself in opposition to “socialism”. For many, fear of the label has stuck. Conservatives still use “socialism” as an epithet for economic policies they oppose, and many liberals will do or say whatever is necessary to avoid being associated with socialism. If you ask prominent liberals, they will point to surveys showing the unpopularity of socialism in America. This could be a chicken and egg problem: why should most Americans not be afraid of socialism if even liberal leaders oppose it? Fortunately, this also appears to be a generational problem that is going away. Recent surveys of Americans under 30 show support for socialism to be equal to support for capitalism, and the Presidential campaign of Bernie Sanders may be showing that fear of the label “socialism” is overblown.

The next problem with liberals will be to educate them. The facts being on our side will not help if establishment liberals do not know them. The specific problem here is that the misrepresentations of the work participation and family stability effects of the Negative Income Tax experiments that were spread in the mid 1970s are still believed by many establishment liberals. We will have to work hard to correct those misbeliefs.

Another problem will be that if technological unemployment does not reach a crisis point, liberals will simply not prioritize basic income on their own. They will have to be dragged into taking action by political pressure. This will be similar to the example of same-sex marriage, except that instead of claiming opposition up until the public changes its mind, look for liberals to vocalize general support for the concept of a basic income, but not do anything about it. An example of this strategy was how, in the years following the U.S. invasion of Iraq, a lot of politicians of all stripes, including President Bush, voiced support for setting up an Alaska style trust fund to pay oil dividends to all Iraqis, but it never happened. This will be because, even if liberals come to agree that a basic income would be a better policy than the current welfare system, the efficiency benefits to the capitalist system are not great enough to put it on their priority list. Just as the suffering of gays and lesbians who wanted to marry was not sufficient cause to make same-sex marriage a priority, neither is the suffering of the poor. It never has been in the past. Again, this will change when technological unemployment becomes a crisis, and there will not be enough consumers to buy goods and services without a basic income.

The final, and biggest challenge with liberals as allies will be their attempts to dilute the idea of a basic income. While they may become far more generous with the cash amounts, it will be difficult for them not to attach strings and conditions. The reason is that it will be difficult to change their belief that they know how to run the lives of the poor better than the poor themselves. But a bigger danger is that they will try to insist on means-testing. They will try to make the middle-class believe that means-testing will make it cheaper for them. The reality is that means-testing will make the financial burden of a minimum income fall on the middle-classes. This, again, is because the goal for liberals is not economic justice, but making the current capitalist system run better.

In order to relieve the immediate suffering of the poor and establish the principle that poverty is not tolerated in our society, it may be necessary to agree to means-testing to pass an initial guaranteed minimum income. Liberals will trumpet that the job is done. Those of us who count justice as one of our goals need to be prepared to continue the fight.