The Guardian newspaper reports that the UK Treasury is considering sending vouchers to everyone to spend on a range of goods. This would not be a Basic Income, but it shares some of its characteristics and would be an interesting experiment to watch.
Radical plans to give all adults £500 and children £250 in vouchers to spend in sectors of the economy worst hit by the Covid-19 crisis are being considered by the Treasury.
The proposals, drawn up by the Resolution Foundation thinktank, which has had recent talks with the Treasury about its ideas, are aimed at kickstarting economic recovery by triggering a highly targeted surge in spending. Under the plans the vouchers could only be spent in certain sectors, such as hospitality and “face to face” retail, as opposed to online.
What is particularly interesting about the idea is that it would require the UK Government to establish the kind of database that would be required for the payment for a Basic Income.
I suppose every halting little stumble towards UBI is to be welcomed, even if this has nothing about justice and all about a timid irrelevant economic stimulus.
I do not understand the point about this establishing a database for UNIVERSAL BI. What more information is needed?
The spending vouchers were intended to stimulate growth in the Retail sector, specifically rescuing High Street stores, but in the end it never transpired. We’re being offered £10 off a restaurant meal during August instead, which means little to those of us too poor to eat out anyway as we can’t afford even half a meal. People are scavenging out of bins. Child malnutrition has doubled. Foodbanks have seen a 100% increase in demand. But the UK Government has ended the Benefits Sanctions suspension so people are now at greater risk of destitution. Universal Credit claimants have been an extra £20 per week but others in the exact same circumstances won’t get the increase because they are still in receipt of the old Benefit, JSA, which is just £74 per week.
These vouchers would be similar to the “vouchers” that the UK treasury currently prints with the Queen’s likeness on them: the pound. Only these vouchers would be a little different: more like “ounces”. Maybe Harry and Meghan could pose for this.
When I was in Italy, many years ago, inflation had pushed the cost of the metal used to make coins over their nominal value, so they disappeared – many off to Switzerland to make watch faces.
Italian banks started issuing tiny checks in assorted small denominations which circulated in lieu of change.
Perhaps the restrictions on “ounces” could be loosened in this way