Scott Santens, “Why we should all have a basic income”

The World Economic Forum has published an article on unconditional basic income (UBI) by prominent advocate Scott Santens as part of its 2017 Annual Meeting, commonly referred to by its location, Davos.

Santens’ article explains the concept of UBI for newcomers and tackles common reservations and misconceptions. Responding, for instance, to those who argue that it is wasteful to provide a UBI to those who don’t need it, only to recoup this amount in taxes (as prominent economist Thomas Piketty does in a recent blog post), Santens draws an analogy with seat belts. He claims that, while it could be said to be similarly wasteful to install seat belts in the cars of drivers who never crash, “we recognize the absurd costs of determining who would and wouldn’t need seat belts, and the immeasurable costs of being wrong. We also recognize that accidents don’t only happen to ‘bad’ drivers. They can happen to anyone, at any time, purely due to random chance. As a result, seat belts for everyone.

Beyond defending UBI against such practical critiques, Santens encourages imaginative thinking about its far-reaching implications, outlining some aspects of its transformative potential: “UBI has the potential to better match workers to jobs, dramatically increase engagement, and even transform jobs themselves through the power UBI provides to refuse them.

The World Economic Forum is a nonprofit foundation, “committed to improving the state of the world” through public-private cooperation. Its flagship annual meeting in Davos, Switzerland, recently included a panel on basic income, featuring Guy Standing, cofounder of BIEN.

Read the full article here:

Scott Santens, “Why we should all have a basic income“, World Economic Forum, January 15, 2017.

Reviewed by Dave Clegg

Photo: Davos, Switzerland, CC BY 2.0 TravelingOtter

Olli Kangas and Heikki Hiilamo, “Universal Basic Income: Does the Carrot Work Better than the Stick?”

Meeting of the Minds, an organization that aims to identify and raise the profile of practical innovations in the field of urban sustainability, has published an article explaining the motivation for the Finnish basic income experiment, initiated earlier this month, co-written by one of its designers. 

The “stick” mentioned in the article’s title refers to the sanctions claimants face under existing workfare policies, while the “carrot” refers to the fact that the basic income will continue to be paid to study participants even if they take up work or gain income through entrepreneurial endeavours.

The authors explain that the experiment “is designed to reform the Finnish social security system to better correspond to changes in modern working life, to make social security more participatory and diminish work-disincentives, and to reduce bureaucracy and simplify the overly complex benefit system.”

The article is written by Olli Kangas and Heikki Hiilamo. Kangas is Director of Government and Community Relations for Kela, the Social Insurance Institution of Finland, and one of the designers of the basic income trial administered by that organization. Hiilamo is a professor of social policy at the University of Helsinki and Kjell Nordstokke Professor at the VID Specialized University in Oslo.  

Read the full article here:

Olli Kangas and Heikki Hiilamo, “Universal Basic Income: Does the Carrot Work Better than the Stick?”, Meeting of the Minds, January 25, 2017.

Reviewed by Dawn Howard

Photo: Sibelius Monument, Helsinki. CC BY 2.0 Dennis Jarvis

FRANCE: Hamon becomes Socialist Party presidential candidate following basic income-focused campaign

FRANCE: Hamon becomes Socialist Party presidential candidate following basic income-focused campaign

The French Socialist Party has elected a pro-basic income politician, Benoît Hamon, as its candidate for the presidential election this spring.

Benoît Hamon, the left-wing politician who has gained considerable media attention in recent months for his basic income proposal, has won the Socialist Party presidential nomination. He comfortably beat rival and former prime minister Manuel Valls by 58.9% to 41.1%, after his surprise win in the first round.

“Universal basic income is a tool to liberate work, allowing people to actually choose their work and not suffer from it” Hamon declared yesterday in his speech to supporters after his victory was made official.

A centerpiece of Hamon’s campaign has been his universal basic income proposal, which he claims should be introduced step by step:

  • Introducing, in 2018, a basic income without means-testing for those between the ages of 18 and 25.
  • Raising existing unemployment and underemployment benefits (RSA) to 600 euro a month.
  • Instituting a system of automatic payment of such benefits, to replace the existing system under which eligible persons have to apply (meaning that a third of those eligible do not receive their entitlements).
  • Launching a citizens’ conference to determine the details of the basic income’s ultimate extension to all citizens, and increasing the payment to 750 euro a month.

Nicole Teke of BIEN’s French affiliate, the French movement for basic income (MFRB), said the following of the result: “This is a beautiful victory, not only for Hamon but also for the idea of basic income. This vote shows that hundreds of thousands of people want basic income to be at the heart of political debate. This is such progress when compared with the misunderstanding of the idea three years ago! The advocacy work carried out by the MFRB along with other associations has borne fruit today.” She highlights that MFRB have contacted all the presidential candidates, advocating for the swift introduction of basic income across the political spectrum. Basic income is proving to be a popular idea in France, as elsewhere, with the Senate just last October releasing a report calling for pilot projects to investigate the policy.

In explaining his reasons for adopting such a stance, Hamon focuses on arguments regarding the changing nature of work given advances in automation. In an interview with Le Monde, for instance, he states: “According to all serious studies, there are hundreds of thousands of unskilled or low-skilled jobs that are beginning to be destroyed in Western economies. We must manage this transition and make the most of this amazing opportunity that the digital revolution offers us to work less and live better.”

This proposal drew sharp criticism from the pro-business Valls, who (despite earlier statements) instead offered a “decent income” of 800 euro a month, targeted solely at the worst-off. This would involve simplifying the French welfare system, but maintaining means-testing.

Hamon’s success has been compared to that of Jeremy Corbyn in the UK, as both represent a return to socialist values within parties that have been moving ever closer to the political center. Hamon’s platform also includes a tax on robots to fund the basic income, reductions in working hours.

Now Hamon will face a hard battle to win the presidential election against his rivals. The Socialist Party has lost a massive number of supporters under the mandate of President Hollande and is expected to be a big loser in the upcoming election.

According to the most recent polls, Hamon would only receive 15% of the votes, in fourth position behind Front National’s Le Pen (25%), Conservative Fillon (22%) and Centrist Macron (21%), but ahead of the radical-leftist Mélenchon (10%). This estimate is, however, much higher than earlier polls suggested, which had predicted Hamon to receive only up to 6% of the votes if he were to become the Socialist candidate.

The first round of the presidential election will take place on 23 April.

Read more:

Stanislas Jourdan, “FRANCE: Pro basic income candidate set to win socialist primary election“, Basic Income News, 22 January, 2017.

Thomas Samson, “Part-Sanders, part-Corbyn: how French socialist Hamon stepped out of the dark“, France 24, 25 January, 2017.

Pascal Guyot, “French left mulls universal basic income ahead of primaries“, France 24, 12 January, 2017.

Cédric Pietralunga and Bastien Bonnefous, “Benoît Hamon : « Le revenu universel est la nouvelle protection sociale »” [Benoît Hamon: universal income is the new social security], Le Monde, 4 January, 2017.

Mathilde Damgé et Adrien Sénécat, “Hamon-Valls : deux revenus de base, un même flou de financement” [Hamon-Valls: two basic incomes, a common haze on financing], Le Monde, 24 January, 2017.

Barbara Carnevale, “La proposition de revenu universel de Benoît Hamon” [Benoît Hamon’s universal income proposal], Le Mouvement Francais pour le Revenu de Base, 23 December, 2016.

Stanislas Jourdan, “FRANCE: Prime Minister Pledges Again to Open the Debate on Basic Income“, Basic Income News, 25 September, 2016.

FRANCE: Senate Report Marks Another Milestone for Basic income“, Basic Income News, 23 October, 2016.

Additional reporting by Stanislas Jourdan

Photo: Benoît Hamon CC 2.0 Parti socialiste

US: Writer awarded $24,000 grant to write about Basic Income in 2017

US: Writer awarded $24,000 grant to write about Basic Income in 2017

Kate McFarland, a News Editor for BIEN, has been awarded a $24,000 grant by the Economic Security Project to focus on this work throughout 2017.  

Of the grant, McFarland has the following to say: “As a reporter on the basic income movement, my primary task is to present accurate information in a clear and objective manner. With the movement gaining incredible momentum in world plagued by clickbait headlines and sensationalized reporting, this task is more important than ever. It’s a challenging and demanding job, and increasing my knowledge, building new connections, and perfecting my skills as a reporter has been an ongoing process for me since I took the plunge into writing for Basic Income News in early 2016. With the Economic Security Project grant, I’ll be able to further expand the scope and depth of my reporting, and hopefully help to bring other lasting improvements to the important work being done by Basic Income News and BIEN.”

In addition to McFarland’s role as a writer and editor for Basic Income News, she is a member of the Executive Committee of the Basic Income Earth Network, and the Secretary of the US Basic Income Guarantee Network .

The Economic Security Project describes itself as “a two year fund to support exploration and experimentation with unconditional cash stipends.” The project uses donations to fund academic research, basic income campaigns at both state and local levels, and cultural projects related to economic security.

The Economic Security Project is co-chaired by Natalie Foster, an expert on the future of work with the Institute for the Future, Chris Hughes, co-founder of Facebook, and Dorian Warren, a Fellow at the Roosevelt Institute and President of the Center for Community Change Action. Notable founding signatories include Sam Altman, President of Y Combinator (whose proposed basic income research we have covered here), Scott Santens, a well-known writer and advocate for basic income, and Andy Stern, President Emeritus of the Service Employees International Union (whose recent book on basic income we have covered here), among many others.

McFarland covered the launch of the Economic Security Project for Basic Income News here. As a founding signatory herself, she was also invited to participate in a special series of blog posts honoring the launch. Her “call to fellow supporters” (available here) makes the case for a multifaceted approach to investigating basic income, as well as clarity of understanding of what empirical studies can tell us and what values they imply.

McFarland graduated from the Ohio State University in 2015 with a PhD in Philosophy and a master’s degree in Statistics. She taught philosophy for a year before leaving to concentrate on her work for BIEN. McFarland started writing for Basic Income News in March of 2016, before her election to the Executive Committee of BIEN in July.

Photo: Kate McFarland

MANCHESTER, UK: First Annual Conference of World Basic Income (Feb 4)

MANCHESTER, UK: First Annual Conference of World Basic Income (Feb 4)

World Basic Income (WBI) will hold its first annual conference in Manchester on Saturday, February 4. This event will launch what it calls “a new movement for global justice and poverty eradication”, with speakers from The Guardian, Share The World’s Resources, CapGlobalCarbon, the Labour Party, the Green Party and the Universities of Manchester and Oxford, among others.

The event will explore three main aspects of a proposed worldwide basic income scheme, through both panels and discussions:

  • “The context – inequality, poverty, cash transfers, and basic income.”
  • “Practicalities of distributing cash – funding, distribution, and ownership.”
  • “Building a movement – grassroots mobilising, influence in high places, pilots, experience and evidence.”

Founded in Manchester in the summer of 2016, WBI advocates for a global basic income scheme and researches means by which to make this idea a reality. On its website, WBI notes that “the idea of national basic incomes is becoming well-established, but the proposal for a world-level scheme is quite new. We have lots of work to do to research the practicalities, run pilot experiments, build support, and eventually get a scheme started.”

For more information, see: worldbasicincome.org.uk. Tickets are available on the conference’s Eventbrite page.

World Basic Income – First Annual Conference, Sacred Trinity Church, Chapel Street, Manchester, M3 5DW, United Kingdom, February 4, 2017.

Basic Income News previously reported the founding of WBI here.

Reviewed by Kate McFarland

Photo: Sacred Trinity Church, Manchester, CC BY 2.0 grassrootsgroundswell