by Andre Coelho | Jun 7, 2019 | News, Research
Apart from experimental designs testing basic income-like policies, in small scales, theoretical evidence keeps mounting, showing that basic income is not a pipe dream, but a practical reality within our reach. Published earlier this year, a new report issued by the Compass think tank demonstrates just that. It proposes two models for change in the British social security system, one that installs a partial basic income for a cost of 28 billion £/year (approximately the benefits cut per year since 2010), and another that would rise the unconditional transfer of the first model through the operation of a “citizens’ wealth fund”.
As a summary, it can be read in the report’s conclusions:
The to models presented satisfy the feasibility tests set out earlier. Both models:
- Are progressive: they raise the incomes of low-income households at the expense of those on the highest incomes, cut poverty and reduce inequality; the greatest benefits go to the poorest;
- Provide a basic income for all, while reducing the level of sanctions; Britain would finally have a secure income floor set to rise over time;
- Become more progressive and more powerful anti-poverty instruments as basic income payments rise;
- Help to correct the gender imbalance of the present system;
- Ensure that there are almost no losers among the poorest households
- Apply a new 15% rate of income tax, an additional 3% on each rate of income tax, and an extension of national insurance payments.
It is still worthy to say that the 28 million £/year figure cited above can be collected in a variety of ways, for instance reversing the freezing of diesel and petrol excise duties since 2010 (9 billion £/year), reversing cuts in corporate tax rates from 18 to 28% (26-28 billion £/year), reduce the number and value of tax reliefs (ex.: eliminating the “entrepreneur’s relief”, saving 2,7 billion £/year), phasing out financial support to home owners and private landlords (which mainly benefit property developers) (8 billion £/year), among other possibilities. All these imply reversing tax cuts and attributed benefits to the relatively wealthier members of British society, which makes them quite progressive measures.
More information at:
Stewart Lansley and Howard Reed, “Basic Income for All: From Desirability to Feasibility”, Compass, January 2019
by Andre Coelho | Jun 5, 2019 | News, Research
The reading of results from basic income type of experiments is, apparently, dependent on who is reading them. The Ontario present government officials did not think, for instance, that there were particular advantages or benefits from pursuing with the Ontario basic income experiment. The particulars of the Ontario (basic income) pilot cancellation have been extensively reported on (some examples below), so much so that a new report was published with some evidence of the benefits experienced by more than 400 participants, according to their responses. This may be another case of dissonance between government power and common citizens: what is felt by the latter as beneficial is discarded as ineffective and wasteful by the former. Why, then, was this basic income pilot program cancelled is a legitimate question one might ask, if the participants themselves felt it as a success.
For example, the baseline survey reported that at the start of the pilot 81% of participants were suffering from moderate to severe psychological stress); At the end over 70% had reported their mental state to have improved in several categories. This is attributed to having fewer financial worries such as debt. In addition, participants were apparently better able to buy edibles online canada and other treatments for their conditions, whereas before they may have refrained due to budget concerns. Due to the legalization of medical marijuana in several countries, such as the United States and Canada, many scientists are looking into the effects of CBD and cannabis. In terms of the physiological benefits of Cannabis, compounds like CBD seem to have anti-inflammatory properties, helping to relieve chronic muscle and joint pain. Nevertheless, when ingested, these effects might be amplified, so these relief properties could be felt in even greater strength with THC edibles that you can purchase from get kush or other such cannabis retailers online. There is growing evidence that CBD is an effective monotherapy or complementary therapy for the treatment of generalized anxiety disorder, social anxiety disorder, and post-traumatic stress disorder. Cannabis (rather a chemical in the Cannabis sativa plant known as cannabidiol) may be helpful in reducing anxiety, the most common mental health issue. The information provided here is not intended as medical advice and it is highly recommended that one consults a health expert before consuming CBD products. This is merely intended as an overview various types of CBD commodities (such as CBD Oil UK) of that may be of assistance to people suffering from anxiety or stress.
Overall, the participant experience compiled in this report partly mirror that of Finland’s basic income-type experience first results: more agency, anxiety relief, more social connection and financial security. The majority started eating better, and were able to make plans for the future…which evaporated as soon as the pilot was cancelled by Doug Ford’s government. In numbers, answers returned the following results (from Basic Income Canada Network):
- 88% of respondents reported less stress and anxiety and 73% had less depression.
- 58% improved their housing situation;
- 34% found the basic income supported employment by affording transportation to work, child care or ability to start or expand a business;
- 32% of respondents were able to go back to school or upgrade skills (note that a majority of employed participants in the government baseline survey – recipients and control group – said they were in dead-end jobs);
- 74% were able to make healthy food choices and 28% stopped using food banks;
- 46% were able to pay off debt;
- 52% were able to see friends and family more often, 55% were physically more able to do activities, and 45% reported fewer health problems;
- Many respondents talked about working hard their whole lives, often at multiple jobs, but never really having a life, until basic income made that possible.
More information at:
Kate McFarland, “ONTARIO, CANADA: New Government Declares Early End of Guaranteed Income Experiment“, Basic Income News, August 2nd 2018
Sara Bizarro, “Ontario, Canada: Reactions to Ontario Basic Income Pilot Cancelation“, Basic Income News, September 18th 2018
Daniel Fabbri, “Four Ontario Mayors asking the Federal Government to take over the Basic Income Pilot“, Basic Income News, September 30th 2018
André Coelho, “Canada: Ontario’s basic income experiment ended, but the ground is fertile for more pilots“, Basic Income News, December 22nd 2018
Sheila Rogehr and Joli Scheidler-Benns, “Signposts to Success: report of a BICN Survey of Ontario Basic Income Recipients“, Basic Income Canada Network, February 2019
André Coelho, “When a few drops of rain allow flowers to blossom: Finland’s basic income experiment generates its preliminary results“, Basic Income News, February 16th 2019
by Andre Coelho | Jun 3, 2019 | News
Just before the latest European Parliament (EP) elections, held on the 23-26th of May 2019, the Unconditional Basic Income Europe (UBIE) activist group sent out a questionnaire to be answered by candidates, on the subject of basic income. The questions asked for their position on the European social policies, whether they would support European Union (EU) basic income experiments, and if they would vote in favour of a Eurodividend. That questionnaire was inserted in an introductory letter, to be sent to all EP candidates, written by Daniel Kruse.
Only a fraction of EP candidates actually responded, but those that did can find their answers posted here. These views, reflecting the opinions of these candidates from Belgium, Germany, Greece and Ireland, are mostly in favour of experimenting and implementing an EU-wide basic income, with a few variations. For instance, Olivier De Schutter argues that basic income should start for the youngsters, namely those between 18 and 25 years-old, fixed at 60% of the median income of their country. On the other hand, however, Olivier Maingain points out that paying a monthly basic dividend to all EU citizens is not within EU’s powers, at the moment.
Willie O’Dea, from the Fianna Fáil party in Ireland (which had also setup a candidate for the EP elections, Brendan Smith), had written, not long before these EP elections, an opinion article expressing his views on basic income, within a European perspective. In that article, O’Dea also takes the opportunity to clarify a few important aspects about the Finnish (basic income) experiment, linking its design features to its published results until now. According to him, these results are not surprising, given the way the experiment was setup, but are still encouraging, since he considers the social well-being of people to be “real and measurable tangible benefits”.
More information at:
Willie O’Dea, “Universal income pilot could point to a fairer future”, Independent.IE, April 7th 2019
by Andre Coelho | May 31, 2019 | News
Maricá at a distance.
Original article by Eduardo Suplicy
Last Saturday, May 25th 2019, an event took place in Maricá, a city on the coast of the state of Rio de Janeiro, where the mayor Fabiano Horta (representant from PT, Partido dos Trabalhadores), vice mayor Marcos Ribeiro and the secretary of Solidarity Economy, Diego Zeidan, announced that, from July 2019 onward, 50000 citizens, a third of its 150000 inhabitants, will receive a Citizen’s Basic Income of 130 Mumbucas, a local electronic currency, equivalent to 130 reais, or US$ 32,5 per month. The plan is to have all Maricá’s citizens receiving this unconditional cash, at least until the end of the present city government legislature.
Longtime politician (presently councilman in the City of São Paulo) and basic income activist Eduardo Suplicy had already explained the advantages of implementing basic income in Brazil, as a part of a general upgrade of social policy in the country. That policy, actually, has been written into Brazilian law since 2004 (Law 10.835/2004), but sanctioned by president Lula on January 8th 2004. There, it says that a basic income shall be rolled out in Brazil, step by step, starting with those most in need, until one day it benefits all citizens.
After an important Conference on Human Rights, held in Brazil in December 2015, where Suplicy reinforced his views, Maricá’s mayor at the time, Washington Quaquá, manifested his intention of implementing the Citizen’s Basic Income in his city. That same month, he was able to pass his purpose into municipal law, which would be introduced in phases: 95 Mumbucas per month in 2016 (85 Mumbucas from a Minimum Income program, plus 10 Mumbucas/month), 130 Mumbucas per month in 2017 (110 Mumbucas from the Minimum Income program, plus 20 Mumbucas/month), disbursed to 14000 families, and now in 2019, starting in July, that same amount will be enlarged to cover 50000 individuals. This payment will be now limited to citizens who belong to families enrolled in the Unique Register, having monthly incomes lower than three minimum wages (1 minimum wage is equal to around 1000 reais/month), but expected to cover all citizens in the village by 2021.
So, the ongoing cash transfer in Maricá is done in a non-transferable social local currency (Mumbuca), is set to cover one third of the population (although projected to cover the whole population by 2021), and amounts to the equivalent of 67% of the individual official poverty line in Brazil (1). Although far from ideal, this is a very significant step when in comparison to some recent basic income test trials such as in Finland (2000 unemployed citizens receiving 560 €/month for two years), Stockton California (125 citizens receiving 500 US$/month for 18 months), Namibia (1000 people in Otijivero receiving the equivalent to 12 US$/month, for 12 months) and India (6000 people in Madhya Pradesh receiving 300 (adults) and 150 (children) rupees/month, for 36 months).
Even though the Mumbuca is a local currency, most commercial stores in Maricá accept it. Also, a Communitary Bank Mumbuca was created in order to provide microcredit at zero interest rates, in Mumbucas, which can also fund housing projects. Maricá mayors (Quaquá and Horta) have, on the other hand, introduced social security measures / programs alongside with this more general basic income approach. For instance, a minimum income program has been created for pregnant mothers and youngsters. Additionally, starting in 2019, another specific program was initiated, dispensing 300 Mumbucas/month to 200 indigenous people that live in small villages near Maricá. There is also a Future Mumbuca program for young people, that are currently enrolled in high school courses involving solidary economy and entrepreneurship, which will pay 1200 Mumbucas per year. In that program, the valued is transferred once the youngster completes high school, starts a firm, a cooperative or becomes an undergraduate student.
Other social support programs have been created in Maricá, over the years, such as free transportation (14 lines in Maricá’s urban area), and special conditions for university students (around 4000), in and out of Maricá. Plenty other public investments were made in education, health, and even organic farming. This unusual plentiful municipal budget (16665 reais/inhabitant, compared to São Paulo’s 5041 reais/inhabitant) is the product of oil exploration royalties along Maricá’s coast. Despite the inherent pollutant nature of this municipal revenue stream, past and present city mayors have been investing in providing better living conditions for the population within their administration’s borders. This way, Maricá has become a bright example for all municipalities in Brazil, as well as for the federal government.
Note (1) – The official poverty line in Brazil stands at 387 reais/month per family. Considering a two-adult composition in each family, this equates to 194 reais/month per (adult) individual.
Article reviewed by André Coelho
by Andre Coelho | May 29, 2019 | News
Night view from Coorg valley, India
It seems the promise of a solid financial ground for all poor citizens in India was not enough to win the Congress Party a leading position on the Indian parliament in New Delhi. The country just counted its votes on the past 23rd of May, and the incumbent Bharatiya Janata Party (BJP) was reappointed to power by a landslide, winning more seats than all the other parties combined (56% of all votes). The Congress Party, the second most voted party, got less than one fifth of the BJP won constituencies. Although there has been some contention on the voting procedure, BJP election seems indisputable.
The BJP party had also spoken about a cash transfer, unconditional in principle, to poor farmers, but that was clearly on an electoral spell, and only because the Congress Party had already gone public with its plan to roll out a basic income-type of policy if elected. In any case, the amount proposed by the BJP was many times lower than the former, and limited to poor farmers, so that shouldn’t have been the motive for the Congress defeat on these elections.
Congress Party had announced and defended the implementation of a basic income in India on the basis of reducing poverty. However, statistics show that poverty has been dropping sharply in India through the last decade. The Indian government stated that 22% of its population lived under the official poverty line in 2012. In 2015, that number had been reduced to 12,4%, according to World Bank Data. Also, as of 2019, only about 3% of the Indian population now lives in extreme poverty, according to the World Poverty Clock. This means that, as far as escaping poverty is concerned, things have been doing fine in India lately, and that helps to explain this election’s result: the BJP is not perfect, but has been making sure the trend in reducing poverty is maintained. And that collects a lot of votes.
In Sikkim, the small northern Indian state in which the ruling party (Sikkim Democratic Front – SDF) was seriously considering rolling out a basic income for its 600 thousand people, once re-elected, things gone the other way around. The ruling party was defeated – by a small margin – by a contender (Sikkim Krantikari Morcha), and with it goes the would-be policy of guaranteed income for all. Maybe the decision on choosing a leader, at this moment in time, was less related with basic income (Sikkim is one of the wealthiest states in India, enjoying low inequality and relatively high living standards on average), but with other issues. One of these could be the fact that SDF had been in power for 25 years, and so might have worn the seat too much, which easily happens in a democracy.
Some analysts consider this election to be a huge failure for the Congress Party. That is certainly an understandable connection and the result surely worried Congress leaders. However, trying to promote plurality, secularity, and now the “radical” redistributive policy of basic income, cannot be wrong in itself. It shows, rather, the mark of progressive politics. It’s just that the contemporary average Indian voter seems to be more interested in maintaining what he/she has gained in the last few years – which has, nonetheless, amounted to, on average, a great uplift in living conditions – and in securing a national identity (an easier Us vs Them mentality), then aligning with an all-encompassing pacifying agenda that doesn’t interest markets, GDP or (a power-driven) foreign policy.
In any case, and if examples like Finland have any relevance, this is not the end of basic income in India. Just a momentary stop on the roadside.
More information at:
André Coelho, “India: Congress party gets serious about basic income and reaches out to Thomas Piketty for policy design support”, Basic Income News, February 14th 2019
André Coelho, “India: Basic income is being promised to all poor people in India”, Basic Income News, February 1st 2019
André Coelho, “India: The Indian government also promises basic income to farmers”, Basic Income News, February 12th 2019
“India’s BJP tells opposition to ‘accept defeat with grace’”, BBC News, May 22nd 2019
Annalisa Merelli, “Indian elections 2019: What can Democrats learn from Congress failure”, Quartz, May 25th 2019
André Coelho, “India: Sikkim state is on the verge of becoming the first place on Earth implementing a basic income”, Basic Income News, January 11th 2019
