CHICAGO, US: City Considers Resolution to Investigate Basic Income Pilot

CHICAGO, US: City Considers Resolution to Investigate Basic Income Pilot

Alderman Ameya Pawar, one of fifty elected members of the City Council of Chicago, has introduced a resolution to convene a taskforce to investigate the implementation of a basic income trial in the city. According to the proposal set out in the resolution (which can be read in full here), the pilot project should provide 1000 families “with a minimum of $500/month, no strings attached,” with further details of the model to be established by the taskforce:

[W]e, the Members of the City Council, assembled this day on June 27, 2018[,] direct the Mayor’s office to empanel a Chicago Resilient Families Initiative taskforce to study Universal Basic Income and an Earned Income Tax Credit Modernization program.

The taskforce would carry out the following activities:

1. Create partnerships with city departments and external stakeholders, foundations, advocacy organizations, philanthropists, and leading public policy makers to launch a Universal Basic Income (UBI) Initiative in the City of Chicago.

This taskforce would be charged with developing a UBI model for 1000 families to be provided with a minimum of $500/month, no strings attached.

2. Scaling the City of Chicago’s Earned Income Tax Credit (EITC) smoothing program to the same 1000 family cohort.

The EITC smoothing would advance payments on a monthly basis. In addition, the taskforce would study the creation of a Chicago-based Earned Income Tax Credit Program.

Note that, if payments are made on a family rather than individual basis, the policy will not technically constitute a basic income as defined by BIEN; however, since the money is to be given with “no string attached,” the trial would examine a policy much closer to a true basic income than any existing welfare policies in the US.

As quoted above, the resolution additionally proposes to restructure the Earned Income Tax Credit (EITC), a tax refund available to low-income working Americans, for the families in the experimental sample so that they receive their the credit monthly instead of annually. This would not be the first time that Chicago has tested a “smoothing” of the EITC over the year: in 2015, Mayor Emanuel collaborated with a Chicago-based non-profit organization in conducting an experiment in which over 300 residents received their EITC payments only a quarterly basis.

Introduced in the 1970s, the EITC has generally been a popular program that enjoys cross-partisan support, and EITC expansion is sometimes viewed as a potential route to introduce a basic income in the US. At present, however, the tax credit is available only to those who have earned income, is means-tested, and primarily benefits parents (e.g., this year, example, single parents of one child are eligible to receive up to $3,400 if their incomes fall under $39,617, while individuals with no children may receive only up to $510 for the year, and only if they earn less than $15,010).

Pawar has introduced the resolution out of concern about existing poverty and economic insecurity in Chicago and the US as well as the threat of additional job loss to automation.  

 

Alderman Ameya Pawar, CC-BY-3.0 Chi Hack Night

Is Basic Income on the Horizon in Chicago?

After an article about Pawar’s resolution appeared in The Intercept on July 16, a torrent of articles appeared in the popular media, often with headlines suggesting that Chicago is on the verge of testing–or even implementing–a universal basic income. In fact, many hurdles remain to be surmounted before even a pilot can be launched.  

When introduced in June, Pawar’s resolution received support from 36 co-sponsors in the Chicago City Council. Before the proposed taskforce is convened, however, it still must be approved by official vote of the council, in addition to the support of Mayor Rahm Emanuel. Moreover, even if the taskforce is established, it will confront the task of not only designing but also fundraising for a basic income pilot project.

In interviews and social media, Pawar has commented on his inspiration from the Stockton Economic Empowerment Demonstration (SEED), a trial of a $500 monthly guaranteed income that has been financed entirely by private donors. Notably, SEED received a $1 million seed grant (pun noted) from the Economic Security Project (ESP), which was launched in 2016 by basic income advocates including Facebook co-founder Chris Hughes for the purpose of funding projects related to unconditional cash transfers.

When asked about the funding issue during an interview on Chicago Tonight, Pawar noted that “there is a lot of support in the philanthropic community” for basic income initiatives, and briefly mentioned that he has also “had initial conversations” with ESP. Meanwhile, ESP’s communications director Saadia McConville has been quoted in the Chicago Sun Times as saying, “Are they going to be able to raise all that money philanthropically? That remains to be seen,” adding, “I can speak from experience in Stockton that it’s definitely not an easy task, but it is something that [donors] are interested in.” One impediment to philanthropic funding will be the sheer size of the trial proposed by Pawar. In contrast to his goal of 1000 families, the SEED project has set a target of at least 100 recipients for its equal-sized cash grants.

If the taskforce is created, the resolution specifies that it must deliver a report on the basic income and EITC experiment to the City Council by October 1, 2018. Thus, more information can be expected  this autumn regarding a model for the experimental trial, as well as potential avenues for funding.

Post reviewed by Dawn Howard.

Cover Image CC-BY-2.0 Roman Boed

Leonid Bershidsky: “Obama and Bezos could make basic income work”

Leonid Bershidsky: “Obama and Bezos could make basic income work”

Jeff Bezos. Picture credit to: Evening Standard

Leonid Bershidsky, in this article, posted on the 18th of July, says that the best way to enact basic income is to “persuade tech billionaires to fund universal pay plans”. Motivated by Obama’s latest speech on Mandela’s (posthumous) 100th birthday, he suggests Obama should try have their attention – and money – to finance a basic income. Bershidsky is also convinced that a basic income cannot be financed through more taxes on the wealthy, which would only, according to him, “have a negative effect on growth and innovation”. There are those, however, who object this purpose of growth for its own sake, and propose other directions for society, such as degrowth.

Bershidsky affirms that others may be able to fund a basic income, such as Norway, but that is inconceivable in the United States. In the simplest of ways, he determines the cost of basic income as 327 million people times 500 US$/month, which equals around 2 trillion US$ per year. This kind of reasoning has been done many times before, but it lacks mathematical sense, as Scott Santens has already pointed out. Santens, on a more generous assumption for a basic income in the US, has suggested a gross cost of 3,3 trillion US$ per year. However, and most importantly, that is gross cost, not net cost. Net costs, according to him, can be zero, or even negative, if several reforms occur in welfare and the tax system, such as the elimination of welfare programs (turned obsolete due to their own means-tested nature), the abolition of invisible welfare benefits (those which benefit high earners), reforms in social security (turning pensions and disability benefits into supplements, as basic income is phased in), application of a carbon tax, a financial transaction tax, implementation of seigniorage reform, introduction of VAT (value-added tax) and LVT (land-value tax). To this could be added all the savings possible with the reduction or abolition of poverty, in health care, education and social security.

 

More information at:

Leonid Bershidsky, “Obama and Bezos Could Make Basic Income Work”, Bloomberg Opinion, July 18th 2018

Scott Santens, “How to Reform Welfare and Taxes to Provide Every American Citizen with a Basic Income”, Medium, June 5th 2017

Basic income should benefit mothers first

Basic income should benefit mothers first

Written by: Michael Laitman

There is no controversy about the benefits of breast milk, but its politicization is giving us food for thought. The New York Times claimed that the US government unsuccessfully threatened to retaliate against nations backing breastfeeding to favor the $70 billion-dollar infant formula industry, an accusation fervently denied by the current administration. Beyond the sensational headlines, the key factor is that such an important health-related topic for mothers and children has been put back on the table. It is also time to open the discussion about practical measures to encourage breastfeeding to benefit society.

Breast milk is rich in nutrients and includes antibodies to fight off viruses and bacteria protecting the baby from infections and allergies. While those who can’t breastfeed can use baby formula from a site like tastyganics.com, it may not provide that same level of protection. In fact, breastfeeding can save a baby’s life. It boosts the immune system, reduces infant mortality, and helps for a quicker recovery from common childhood illnesses. A Harvard study in 2016 estimated that 3,340 premature deaths a year among both mothers and babies could be prevented in the US alone given adequate breastfeeding. It also lowers a mother’s risk of breast and ovarian cancer, and osteoporosis.

It also reduces stress for both mother and baby, which helps to relieve common ailments such as colic. Whilst many believe that something like Infacol is the best cure for colic, gripe water, which has been used for generations, has been found to be just as effective. Gripe water, which is a simple syrup that can be made at home, has slowly been replaced by medication such as Infacol, and whilst, yes, they can be used together, there’s really no need to use Infacol when a natural alternative exists. This is a similar situation to breastfeeding, with formula slowly replacing natural milk over the years. The formula industry now has such a hold on new mothers that it’s hard for many of us to remember a time when breastfeeding was considered normal.

Besides the physical benefits and what laboratory experiments show, breastfeeding is one of the best ways of bonding with a baby. It releases oxytocin, which is the hormone responsible for other loving behaviors that make us feel good about a person.

Extended breastfeeding for the first two years of life allows for the child’s proper development, and women express more maternal sensitivity well past the infant and toddler years, according to a study by the American Psychological Association. Beyond such findings, there is also a natural inner connection between the mother and the child that allows for positive biological and internal development, which starts inside the womb.

The Need to Support Stay-at-Home Mothers

Considering the vital role mothers play in each individual’s development from the earliest of ages, it stands to reason that stay-at-home mothers should be given all the support possible to raise the next generation. They need to be entitled to receive financial assistance that will let them perform their remarkable duties without worrying about how to make ends meet, giving them a sense of freedom and control of their lives.

In today’s world, however, this is not the case. The bulk of the burden falls on the mother, who is usually expected to prioritize her career over her family, juggling tasks and becoming increasingly exhausted and unsatisfied. With the massive rise in the cost of living, mothers in most societies struggle to manage a balanced life, considering work as an economic necessity rather than liberation and personal progress and fulfillment. It can be difficult for mothers to get this balance right. Necessities are of different kinds. Home amenities like HVAC, electricity and water requirements are in addition to long-term and current expenditures. They need money for their family, but they also need to look after their kids, so they can’t work. This means that mothers often have no money to do anything, such as home improvements. So many stay-at-home mothers want to improve their homes, but they have no money to do so. They want faux stone panels on the outside of their home, but they are unable to do this. That’s why it’s so important that these mothers get more financial support to make sure they can improve their home or provide more for their family. Mothers get caught in an ever-tightening entanglement of commitments at work and home with very little restitution at any level. In extreme cases, there have been situations where work-stressed mothers abandoned their children while they rushed to work, e.g. a hospital CEO forgetting her child in a hot car where the child died, or a McDonald’s employee leaving her child alone in a public park while she worked her entire 9-hour work day.

Moreover, childcare can be extremely expensive and many women usually work just to cover its costs, challenging the whole purpose of going to the workplace. The so-called advancement of women’s rights to choose is in practice an oxymoron. At the end of the day, women who decide to fulfill a traditional role as stay-at-home mothers do not receive enough recognition, value, and economic support from society, as if raising a new generation were not the most important enterprise of all.

The same way science has been unable to create an artificial uterus that brings an embryo to life, a mother’s role of nurturing and educating the child is irreplaceable. We cannot pretend to be wiser than nature. If we really want to empower and foster women’s self-determination, society should create conditions for a comfortable motherhood.

Why UBI Should Prioritize Mothers

This is precisely where UBI can enter to encourage mothers who wish to raise their children full-time. UBI should benefit women first and foremost, particularly mothers who based on their own personal preference choose to leave the workplace in order to raise their children. Basic income should be provided for mothers without preconditions: not as welfare or charity, but as a remuneration for a crucial job in society.

Prioritizing UBI for mothers would be a win-win situation: it not only would help mothers, it would directly boost support for the entire next generation of society that mothers are now raising. Many personal and social problems, such as depression, anxiety and mental illness later in life, can be traced back to phenomena such as childhood neglect, stress, and traumas. Therefore, UBI would let mothers live with reduced economic stress, freeing them up to focus on caring, bonding with, and raising their children.

Likewise, as I’ve mentioned before, basic income for mothers would allow their participation in pro-social, connection-enriching activities, such as groups for pregnant women, parenting and home economics, among others, to enhance their motherly abilities with a supportive social climate. Naturally, such engagement in society would also positively influence their children.

Instead of treating mothers as second-class citizens, they should be recognized as “society’s CEOs”-the ruling force in creation, the only ones capable of giving birth to and nurturing a whole new generation. Keep in mind that the world is our roof, humanity is our home, and women are the pillar of this structure. Motherhood plays a critical role in giving birth to a new humanity. Therefore, taking a step forward in promoting UBI as critical support for mothers is a decision of utmost importance for a more promising future to all.

Michael Laitman is a Professor of Ontology, a PhD in Philosophy and Kabbalah, an MSc in Medical Bio-Cybernetics, and was the prime disciple of Kabbalist, Rav Baruch Shalom Ashlag (the RABASH). He has written over 40 books, which have been translated into dozens of languages.

RUSSIA: Basic Income Conference organized in Russia

RUSSIA: Basic Income Conference organized in Russia

Alexander Solovyev, Dimitriy Sarayev, Sergey Vladimirovich Khramov and Irina Soloveva

 

This Basic Income Conference moto was “Let’s win poverty in Russia together!”, and it took place in Moscow on the 26th of June 2018. It was organized by the combined efforts of the activist organization Basic Income Russia Tomorrow and the Moscow Communists (members of the Communist Party of the Russian Federation), which also invited leaders from the Trade Unions of Russia (Khramov Sergey Vladimirovich, General Labor Inspector) and the Russian Land Charity Fund (Baldanova Zinaida, Chairman of the Board of Trustees). The Conference main purpose was to debate around issues related with poverty, and how to solve it within the Russian context, while having present the best international examples on the subject.

 

The two organizing groups took the opportunity of this Conference to announce they would join forces and dedicate more time and effort, together, to reduce poverty in their country. Participants also seized the moment to criticize the government on its decision to raise the retirement age. This, according to them, will degrade the standard of living of all, increase the total number of poor people and spread social discontent across the whole country. A particular statement by the youth branch of the Basic Income Russia Tomorrow was made, as the organization is now determined to make reducing child poverty a priority for its activities. Finally, participants generally called out to all citizens, weather individually or in public or private organizations, to be alert and participate in a society-wide discussion about poverty and how it can be reduced in the 21st century, helping to build a fairer Russian society for the years to come.

 

The Conference was divided into four main themes: Poverty, Pensioners, Child Poverty and Labor Relations Reform.

 

Poverty, a theme delivered by Alexander Solovyev (council chairman of Basic Income Russia Tomorrow), was portrayed as destroyer of citizens and the State, degrading health, security, confidence, initiative and promoting the growth of crime. According to Solovyev, Russia has no right to have poor citizens, being so rich in natural resources. Therefore, he argued for the implementation of a US$ 500 per month individual and universal basic income, financed by the State’s revenue with natural resources, which should be shared with every citizen in the country.

 

Dimitriy Sarayev spoke about pensioners, who are in Russia, according to him, socially unprotected citizens. This situation is only made worse by the unilateral decision by the Russian government to raise the retirement age, which is thought to be justified by a need of this government to cut spending. Sarayev says this will also raise unemployment, as people unable to retire will stay on the jobs longer. According to him, raising the retirement age, if any, must be accompanied with proper healthcare and higher pensions, which is the exact opposite of what the government is doing.

 

As for child poverty, Irina Soloveva expressed her extreme concern about the high level of child poverty in Russia. She defends basic income as a necessity for children, first and foremost. Irina also refers the US$ 500 per month per person basic income allocation, as “a reliable foundation for their future life, [to] give children freedom and financial security, reduce the level of crime and corruption in the country, [which] will enable the country to develop”.

 

This Conference, and its focus on basic income as the single most important strategy to reduce poverty in the country, comes at a time when, for the first time in Russia, “public and political organizations began to unite to address the problem of poverty in Russia as a whole, including child poverty”. That is particularly important when in public discussions around poverty, in Russia, the term “child poverty” is completely omitted by state officials and the press.

Breaking Away to the Next Red Light (from 1996)

This piece was originally published in Cake: The Nonmusic Music Magazine in 1996. It is, I think, the first article I published anywhere. I reproduced it here, because the original piece is not online.

Someone asked me to write about sports, but I’m like I don’t play any sports, I ride a bike, but that’s not a sport, that’s transportation. A sport is a physical activity that you do for fun or for a challenge. I don’t think that my bike riding qualities because I use my bike almost exclusively for transportation, but there’s sport to it.

The city is just the right size to ride a bike. Almost everywhere I go is less than 20 minutes by bike, twice as fast as by car and a lot quicker than public transportation. The city would be the perfect place to ride a bike, except it sucks. But, it only sucks because all those people who don’t realize that it’s the perfect place to ride a bike and insist on driving cars. Cars are too big and dirty for the city. Parking is impossible, they create traffic jams, and make the air really disgusting. Half the city has been plowed under to make extrawide streets and free parking spaces for cars, talk about government handouts. Still there’s not enough room for all the cars, but they keep driving in. At least they make biking sporting. My friends think it’s too scary to ride a bike in the city. But, to me, “scary” is walking home late at night risking violent death; risking accidental death trying to squeeze between two buses, that’s “sporting.”

Taxis are the worst, the natural enemy of the bike. They’ll honk at you for the crime of being in front of them. Then they’ll pass you and stop right in front of you with no apparent sense of irony. You can try is to get way over to the side of the road — typical rookie mistake. This saves you from getting honked at by people in a hurry to speed up to the red light in front of you, but it makes you vulnerable to all sorts of mishaps you can’t get in the center of the road. You can get driven off the street by cars making right turns, or buses and taxis stopping to pick up people, and, sooner or later, you’re going to get doored. One night a guy opened a taxi door right in front of me and clipped my handle bars. “Are you all right?” Next thing I knew I was lying face up on the pavement. The driver and the passenger both got out and stood over me, the passenger said, “Are you OK?” I was dazed and bruised and not quite cognizant.

“HOW ARE YOU?”
“I’m fine thanks.”
“He’s OK,” and they sped away.

karl-joshuahair-bigfile

Karl widerquist in the mid-90s

Pedestrians can make for sport. As the light turns they leave from both sides of the street. Do you try to get through the center before the two groups come together or do you go behind a group on one side after the last one leaves the corner. Pedestrians and bikers get along OK. You stay out of their way; they stay out of your way: no problem. Except, for the deer people. Most people know that if their crossing the street and they see a bike heading strait for where they’re standing right now, that if they keep going they’ll be well away before the bike gets there. Not the deer people. They walk right out into the street, and stop right in your path. You wouldn’t think a primate could be that stupid. But, dodging them is a sport.

This is not to say that there are not a lot o’bad bicyclists out there, there are. There are enough that I wouldn’t blame pedestrians for being scared. There was this guy who used to ride his bike in full football padding, helmet, face mask, shoulder pads, the whole bit, outside his close. I’d be stopped at a red-light, waiting for a break in in traffic to go. He’d zoom past me into a break I didn’t see. I don’t see him around lately. I wonder if he’s still alive.

Red lights, there’s a sport. To bicyclists every traffic law is a suggestion. I mean I try to stay out of everybody’s way, but if nobody’s comin’, I’m goin’, full speed. What’re they gon’a do, take your license away? This is safe, as long as you look, there is no risk to it at all, but it’ll kill me eventually. Like that scene in “Slaughterhouse Five” where the guy says, “I’ve seen my death, I’ve been there many times…” In Manhattan almost every street is one way. Parents teach their children to, “Look one way before crossing the street.” Sooner or later I’ll be looking left when the cross traffic is coming from the right and I’ll be on the grill of a garbage truck.

Simply standing at red lights is its own sport, you try to balance yourself while you wait for a break. A bike can’t come to a complete stop and still stay balanced, the trick is to inch forward, pull yourself back, inch forward… You could stop and put your foot on the ground. There is no practical reason for balancing, it’s just a sport.

The most challenging sport in city biking is keeping it. Bike theft is incredible in the city, I’ve lost count of how many bike’s I’ve lost. Legend has it that thieves use liquid nitrogen to make locks brittle and easy to break. But, theft can be beaten. You got’a have the worst bike and the best lock. First I tried one of those U-locks that “guarantees” against theft. Quite the bluff, actually, they’re one of the easiest locks to break, you can’t make a claim unless the bike was registered, you have a police report, a receipt for the lock, a receipt for the bike, a recent assessment of the bike’s value, you have to recover the broken lock, and the guarantee is void in Manhattan away. I wonder if they’ve ever paid on one of those guarantees? Now I’ve got a five foot, double reinforced metal square link chain that weighs more and costs more than my twenty year old girls ten speed, purple frame, with florescent orange spray painted stripes. That heavy chain makes it a lot more difficult to get up those hills, but it’s worth it. Theft is not a sport, it’s just aggravation.

One big drawback of using your bike for transportation and sport is that you arrive everywhere right after your workout. You change close a lot. One summer I took a job as a bike messenger. The biking was great, the actual delivering the packages wasn’t so great. That summer there was this huge heat wave. One day it was 100 degrees with 100% humidity, and I had to take a package to the Chanel Perfume company on the 30th Floor of a Fifth Avenue high-rise. It looked like one of those banks that Dickens described in a Tale of Two cities, it had all this old looking wood everywhere, everything was extra-fancy. There was this giant bottle of Chanel No. 5 encased in glass. Of course, I’m dripping with sweat. I go up to the receptionist at a big oak desk she said, “I’m not signing for it, take it to receiving, on 31, one flight up.” I walk toward the Oak wood circular Staircase, “No, you can’t use the stairs, go back into the lobby and take the elevator.”

When I’m on my way back down, the elevator stops again on the 30th floor, a model gets in. She’s obviously just been shooting an ad. She’s wearing a long flowing black shoulder showing dress. I’m wearing shorts and a short sleeved shirt so soaked in sweat that you can’t tell that I haven’t just been swimming in the ocean with all my close on. I’ve accessorized with a clipboard and a messengers bag that’s held together with duct tape. She leans against the back wall and puts all her weight on her left leg as her right leg comes out of this enormous heretofore unseen slit in her dress. There are mirrors on all the walls and the door and the ceiling, so that wherever you look you see the beauty and swamp thing. She has long flowing light brown hair. I have sweat is flowing out of my crooked bicycle helmet. She shifts her weight. Her right leg disappears and her left leg emerges from another unseen slit. So I straightened my helmet.

-Karl Widerquist, New York, NY 1996