The OECD and the problems of basic income

The OECD and the problems of basic income

According to the OECD, basic income (BI) is not an effective tool for reducing poverty. However, the outcome would depend on the model chosen for implementing a BI system, as well as the changes made in other parts of social protection.

 

The Organisation for Economic Co-operation and Development (OECD) published in May a Policy Brief paper studying the feasibility of a basic income model in four OECD countries, one of which was Finland.

On June 16, Kela organized a seminar in which Herwig Immervoll, a senior economist at the OECD, discussed the findings of his study and analysed the strengths and weaknesses of a BI scheme. After the seminar, the national broadcasting company YLE reported: “Universal basic income might increase poverty and inequality”.

Apart from Finland, the OECD study includes France, Italy and the United Kingdom. The analysis was done with the help of the EUROMOD microsimulation model. In each country, the starting point for the analysis was to take all existing spending on social cash-transfers together and see what level of BI they would amount to. Eventually, the level of BI was set near the existing levels of guaranteed minimum-income benefits for single individuals in each country, adjusted so that it would not increase the public expenditures.

In Finland, this resulted a BI of 527 euros for the working age adults and 316 euros for children and youth under 18 years of age. Those entitled to old-age pensions within the current main statutory retirement age (in Finland over 65-year-olds) were excluded from the BI model.

In the BI model used in the OECD analysis, all existing working-age benefits (including social insurance benefits) apart from cash transfers for housing and disability would be abolished. Also, the zero-rate tax bands of income-tax schedules and equivalent tax-free allowances would be abolished, and all income-tax thresholds would be shifted downwards by a corresponding amount. BI would be made taxable under personal income taxation alongside other taxable incomes.

The OECD model would create many gainers and losers

The most important outcome of the OECD study is that the simulated BI model would strongly impact the income distribution in all studied countries. However, the effects vary greatly among the countries.

In all income groups, the BI model would create many gainers and losers. It would change the net income of most people in one way or another. It would lift some groups out of poverty and thrust others below the poverty line.

The simulated BI model would increase the income level of those small income groups who are currently not receiving any social benefits, or whose benefit level is very low. In turn, those receiving earnings-related benefits or several means-tested benefits would see a decline in their standard of living.

In Finland, those below 65-years-old receiving old-age pensions and single parents with low incomes would be among the losers of the model. The middle-income earners instead would generally benefit from the model.

The conclusion of the OECD is that particularly in countries with a comprehensive social protection BI is not an efficient tool for reducing poverty, since it does not target the benefits effectively. According to the OECD, a budget-neutral BI would not be distributionally neutral. High enough to be socially and politically meaningful and fiscally realistic, a BI would still require tax rises as well as reductions in existing benefits.

A very low basic income, instead, would have little other significance but increase poverty.

The outcomes of BI depend on reforms in taxation and social protection

How the findings of the OECD study are to be interpreted in the Finnish context?

Perhaps the most important issue that the research sheds light on is the fact that there are many institutional challenges in implementing a BI system, and those challenges differ among countries due to their different systems of social security and taxation.

As the OECD report (p. 5) notes, BI as an idea is simple, but the existing social protection systems are not. Therefore, there are grounds to argue that the same model of BI does not fit everywhere. If a reform such as BI were to be carried out, it needs to be adjusted to the existing institutions of social protection and taxation in each country separately. The parameters of the model should be adjusted so that it will not produce excessive changes in people’s incomes.

The greatest problems of the OECD’s microsimulation are that the income taxation is not changed to correspond with the BI model, and that the existing systems are demolished by the same means everywhere without examining the structures of social protection in each country separately. Due to this, BI seems to have unpredictable effects to income distribution.

The income distribution produced by a BI model can be influenced by adjusting the parameters of taxation and social security. In his presentation at the Kela seminar, Herwig Immervoll mentioned that tax reforms should be discussed in parallel with BI. Indirect taxes, such as environmental or value added taxes, have often been proposed as a complementary source for financing a BI scheme, combined with income taxation.

However, the OECD report does not mention these alternatives, and the premise seems to be that taxation in any form should not be increased.

In Finland, as well as in many other countries, some organisations and individuals have launched models of BI adjusted to the local context. Their objective has often (yet not always) been to not radically alter the income distribution or cause reductions in people’s after-tax incomes, especially in the lowest income groups. Microsimulation has been employed at least in the models of partial BI by the Green Party and the Left Alliance, and in the preliminary study for the national BI trial conducted by Kela.

In these models, BI is linked with a reform in income taxation that is designed so that radical changes in after-tax incomes will not occur in any income group. The aim is also to make the models budget neutral, that is, to cover the costs of BI by reforms in taxation and replacing the existing benefit systems. In these models, the old system will be abolished only in those parts where the level of benefits is lower than the BI.

One of the problems with the BI trial currently underway is that due to time constraints, the taxation reform proposed by the research team that designed the experiment was not included.

Will Finland implement a BI?

Though there exist BI models in Finland that would technically allow implementation of a BI system without radical changes in income distribution or public financing, the road of BI will probably be rocky even here.

The preparations of the BI experiment scheme revealed many institutional challenges in implementation of a BI model. The greatest obstacles for a BI are, however, ideological.

In Finland, BI has gained interest especially as a possibility to improve the incentives for paid work. The possibility to combine wages with social benefits more smoothly than today is an issue that no party opposes. Yet, many still find it morally wrong to give people money with no obligations. The opponents of BI fear that the “free money” would reduce people’s willingness to work and give a moral legitimacy to not apply for jobs.

If the only, or at least the most important function of BI is to improve work incentives, the great promises of BI may not be fulfilled after all. The preliminary studies for the BI trial revealed that BI models do not always unambiguously remove incentive traps, if parts of the old social security stay intact.

However, it seems likely that in Finland, as well as in other industrialised countries, the social security will be reformed in a direction that may contain some elements of BI, but not necessarily a ‘pure’ BI model.

If the political thinking emphasizing the labour supply and austerity in public economy prevail, the prospects for more generous BI models seem to be low. In the framework of current economic policies, the implementation of a BI would most probably mean at least demolishing large parts or other forms of social security.

BI as a social dividend?

The OECD report (p. 8) ends up recommending some kind of ’partial’ alternative of a BI model. One option mentioned is a possibility to introduce BI as a separate system from the existing social protection, whose function would be to share the benefits of globalisation and technological progress more equally.

This idea of ‘social dividend’ has often appeared in BI discussions. The state of Alaska is already giving an annual share of the permanent fund based on oil revenues to each citizen as a social dividend. There is similar thinking linked also to the idea of “helicopter money”, originally introduced by Milton Friedman, a cash transfer paid by the central bank to people’s accounts to stimulate consumer demand in economic downturns.

Considering BI as a social dividend would locate it in a new frame, where its function would not be to fix the problems of social security systems, but to distribute purchasing power also to those who lose their jobs or end up in low paid precarious jobs in the labour market turmoil caused by digitalization.

If BI were paid on top of other social benefits, its level could even be lower, or for instance connected to macro economy indicators. In that case, it could also be used to stimulate economies in downturns.

 

Johanna Perkiö
M.Soc.Sc., Doctoral Candidate
University of Tampere
email: johanna.perkio(at)uta.fi

 

Original article:

Johanna Perkiö, “The OECD and the problems of basic income“, Kela, June 30, 2017.

Upcoming cryptocurrency integrates basic income

Upcoming cryptocurrency integrates basic income

Written by: Mark McCarron, Pheonix Digital Currency

Phoenix Digital Currency is a new, open, peer-to-peer, cryptocurrency, which will be entering full release in the next few months. Similar to Bitcoin, in that anyone can set up a client/server, we’re quite different from other cryptocurrencies at the same time. Our currency is pegged to the dollar, has a fixed valuation, is anonymous and comes with advanced anti-theft features.

It has also been designed with the needs of enterprises and retailers in mind, both to provide consistent pricing and easy integration into existing environments. We don’t, however, see this as the be-all and end-all of how currencies can function. When Bitcoin first emerged, it showed the world that currencies could evolve.  This is how we see Phoenix Digital Currency and we have planned for this from the outset.

When looking at the issue of Universal Basic Income, we were quick to understand that governments cannot afford this. Where does the money come from? Taxes on the rich, more public debt or simply loans? None of these seems very likely, but the AI revolution is almost here and we need options before people are unemployed in large numbers.

One idea that Phoenix Digital Currency has been exploring is a single underlying currency option. Whilst on the surface you would have your nation’s respective currency, behind the scenes, it would be part of a single, broader currency. A universal currency is one that is not traded as a commodity, it is merely branded differently within each nation. This means that currency cannot devalue, as devaluation must occur with respect to something.

Why is this important? Well, let’s say I wanted to print off $50 million for everyone on the planet and offer them $500,000 per year. With currency as a commodity we can’t do that, as no one would view our currency as having worth. But with a single underlying currency, there is no one to convince.

Inflation and demand are the next big issues. Normally this idea would fall flat here, but with AI almost upon us, the cost of labour to business will remain fairly flat rather than increasing to ridiculous levels as businesses try to tempt employees back to work. A fast food burger won’t suddenly cost $1 million because staff are looking for $100,000 per hour.

This means that we can achieve the goals of a Unified Basic Income in a manner which doesn’t burden the taxpayer. In fact, it is even possible to end taxation altogether as a principle of economics.

This has been a short introduction to an idea, known as ‘Formal Proposal Number One’. Please join us at phoenixdigitalcurrency.com to share your ideas.

All features articles are opinion pieces, and express opinions not endorsed by Basic Income Earth Network or Basic Income News.

Poverty-traps and pay-gaps: why (single) mothers need basic income

Poverty-traps and pay-gaps: why (single) mothers need basic income

Written by: Dr Petra Bueskens

Harper discovered she wasn’t alone when she packed up her house, stopped paying rent and took her four-year-old son, Finn, on a six month “holiday” up north to warmer climes.

“I found in every camp site, especially the show grounds as they’re the cheapest ones that still have facilities, there were a couple of other single mums and their kids. I was also travelling with a friend and her son, so there were often five or six of us and a bunch of kids at each campsite. Up north there’s even more. Over time we became familiar with each other.”

Harper gave up her home because she couldn’t afford the rent and have any quality of life. Paid work put her in a double bind: if she worked, she lost most of her Centrelink payments; if she didn’t work there wasn’t quite enough to make ends meet. So, she worked and stayed poor. These are the poverty-traps that keep many single mothers working-poor and unable to dig out.

When she stopped paying rent, her landlord was very understanding, Harper said. But at the end of the day, he had a business to run and Harper understood that. He issued her with a notice to pay rent or quit (learn more about that here) and she made the decision to pack up and leave.

In Australia now, there is a clandestine group of mobile single parents, mostly mothers, who have found they cannot, on Centrelink benefits and low-paid casual work, meet the cost of living. They have chosen instead to travel and live with their children in camping grounds and caravan parks around Australia, particularly in Northern NSW and Queensland, where living outdoors is relatively easy. For as little as $10 a night at national parks and showgrounds and up to $25 at caravan parks that have showers, washing machines and other facilities, they live on the move. Harper and Finn travelled between both-a few days roughing it in national parks followed by a return to “civilisation”, taking showers, washing clothes and sharing dinners with friends at caravan parks. Here Finn could play with other children, some of whom were becoming familiar as they met in parks across Victoria and NSW. The vibe at the caravan parks sounds convivial-better than yelling at your kids to get ready for childcare and school, so you can go to a low-paying job and never see them-but also a little Orwellian: this is not a holiday; it’s homelessness with benefits. For some, getting a caravan and living in a caravan park might be a worthy alternative until they can find something else. However, these women are a little worried about whether they would be able to get a caravan of their own. While there are a wealth of tips available for buying a caravan, you can see this buying guide for an example. It is different when you don’t have an income.

Harper announced her “holiday” to friends and family on social media. Here they could follow her adventure in photos and status updates. “I had to call it that; I couldn’t admit to myself it was anything else”. The 6-month, 12-month or indefinite camping “holiday” is a functional, adaptable and resourceful response to the poverty traps single mothers so often find themselves in, and since the “welfare reforms” of the Howard years and Gillard’s removal of the sole parent pension for those with children over eight (ironically on the historic day of her misogyny speech), it is no surprise that this practice is growing. The truth is, some single parents can no longer work within the system; it is simply too hard. So, like other vulnerable mobile populations, they’re outside of it.

Harper told me there is a Facebook group dedicated to this practice but asked I didn’t share the name as it’s currently illegal to have no fixed address-or in other words, be homeless-and in receipt of Centrelink benefits, arguably when you need it most! People who have given up their home for long term camping and travel, often mixed with sleeping in their cars, provide the addresses of family and friends to meet eligibility criteria; in reality, paying rent has become too expensive.

With the turn to surveillance of welfare recipients-take the 2015 case of Tania Sharp whose Facebook status update of her pregnancy was used against her in court as evidence of welfare fraud-we move to a new kind of welfare state: the surveillance state. This is a net, but, far from a safety net catching people who fall, the analogy is closer to a fishing trawl where the recipients-disproportionately poor women and children-are being hunted and caught. The infamous robo-debt scheme also disproportionately catches single mothers in its “net”. There’s no safety in this net; rather there’s punishment, gender specific punishment, for not being “safely” ensconced in patriarchal marriages or well-paid jobs. Most so-called “welfare cheats” are single mothers.

Universal Basic Income (UBI) is a radically different concept-nobody has to apply, prove their worth, pretend they have or do not have a home, justify their sex-life or living arrangements, or fill out 20 page complicated and often contradictory forms. There are no deserving and undeserving poor, no recipients cast as “cheats”. The underlying philosophy is completely different: everyone has a right to a share in the collective wealth; they don’t need to bear a stigma or struggle for recognition, and unpaid care work is socially valued.

With the massive rise in the cost of living, particularly the cost of housing over the last decade, but also energy and telecommunication bills, many can no longer afford to meet their monthly payments or, like Harper, if they can, there is absolutely nothing left over and the stress involved in achieving this end makes daily life a struggle. Harper found she was cutting corners everywhere: meals were less nutritious, she didn’t have time to cultivate social relationships, and her mothering was compromised. When she gave up her house (a share house), sold almost all of her belongings and hit the road, she felt a freedom and control over her life she hadn’t had since Finn was born. Travelling for six months lifted the burden she felt around managing dual roles and her payments were not automatically chewed up on rent and bills. Harper had time with her son-literally all day long-which she cherished and claims healed their relationship.

“It felt like Finn was always between me and what I needed to do [go to work]. I had to rush and he wanted time; I had to put him in childcare and he wanted to be with me; he was always clingy and demanding and had begun acting out; I found him difficult to be around. I could never afford holidays so we never got a break from this stress and pressure. This is why I called it a holiday because it was a break from this cycle of exhaustion and poverty and stress.”

Travelling meant Harper was able to reconnect with her son. He also had playmates in the caravan park with their communal yet contained play areas. Harper had friends to share dinners with. There is now a small but growing population of homeless single parents who live this way; they’re home-schooling their kids or still have pre-schoolers. They’re on the move-but not in any socially sanctioned way. They’re not travelling like young people, or middle-income families or retired baby-boomers. Not quite refugees, but certainly rendered so vulnerable that they are unable to take root and live in society, or at least not permanently. They are on its “flexible” fringes recast as mobile passengers; not quite in and not quite out. While I laud the innovative adaptation to circumstances, which not only gets out of the iron triangle (working to pay the rent and paying the rent to work; paying for the car to drive to work to pay for the car) but solves a number of other problems of modern living: highly regulated schedules, less and less time for children and relationships, leisure based on meaningless consumption. Nonetheless, there is still a remainder: “chosen” homelessness is not an answer, at least not at the structural level, to the problem of (single) mothers’ poverty. It is an idiosyncratic not an institutional solution.

This is one story of poverty and homeless that is emerging on the fringes of our society. I have another …

Naomi rents her beautiful four-bedroom home on Airbnb every weekend for around $800. She has three teenage kids who stay at their friends’ houses or accompany her to her parents’ houses, one and two hours away respectively. On occasion they have driven further afield for a bed. As a wife and mother who took “a long time”1 to complete her studies while caring for her three children, Naomi doesn’t have great employment prospects. Into her mid-40s now and currently going through a divorce, she has very few avenues for earning an income and can no longer rely on her breadwinner spouse. She doesn’t have the track record for professional employment despite now having multiple degrees. She applies for many jobs, has been shortlisted for two and has been given none. The gig economy provides an instant if unstable solution to the immediate problem of income. She doesn’t need an uninterrupted CV, a talent for bullshit and three professional referees to list her home on Airbnb, but neither does Airbnb give her any job security or superannuation. This is why she needs to think about superannuation planning because if she doesn’t think about this now, it may affect her finances in the future. Although she’s a long way off retiring, it still needs to be considered. She’s thinking about Uber too; she has a people mover-good for mums with large families and, as it happens, trips to the airport from her regional home. The gig economy is not and never will be a substitute, but it has certainly stepped in to fill a yawning economic gap. Living in a trendy tourist town and thanks to marriage to a high earning spouse, Naomi owns-at least for now-a beautiful home. She’s no doubt spent money on homely touches like poster artwork to add some personality to the rooms, among other things. She enjoys hosting and also rents rooms during the week. However, after eight hours of laundry, making beds and cleaning to hotel standards, she has to clear out of her own home for the weekend, every weekend. Everyone she and her children stay with has the sense that this is not an independent visit but a need, which puts a strain on relationships.

Naomi’s weekend homelessness is also a novel and adaptive solution to the crisis of income in her system, but it comes at a cost: the children are disrupted in their routines. “The kids and I find it really disruptive, but how else can I make $800 to pay the mortgage and bills? How? The bank would reclaim the house if I didn’t do this”.

Naomi only receives a small Centrelink benefit since her kids are all teenagers and she’s supposed to get a job. The problem is she’s both over and under qualified-she has several degrees, including a postgraduate research degree, but almost no work experience. There isn’t a lot of casual work in regional Victoria and she is still actively mothering; or, as is the case with older kids, ferrying them around. “I still need to pick the kids up from the bus stop, take them to their friends’ places and after school activities, cook them dinner, make sure they’re doing their homework”. For Naomi, being away at a job and adding an hour each way for commuting isn’t an option as a lone primary carer. Then there’s the emotional fall-out of the divorce. The children need her to facilitate and foster their lives. What job realistically accommodates this?

“I don’t have the years of experience and so without Bob paying the mortgage and bills and not being eligible for single parent support, this is how I’m living. Running a BnB suits me and at least I can be there for the kids.”

Naomi would prefer a job but this is her novel solution for now. The gig-economy is stepping in to fill the gap, albeit poorly.

Mothers and basic income

UBI offers an alternative to these poverty traps that are increasingly ensnaring women in the space between low-income waged work, declining welfare and unstable, abusive or non-existent marriages. It makes a new gender contract possible and facilitates women’s economic independence. Women have gained this independence as individuals-the individuals of the liberal social contract-but they have not done so as mothers. As we shall see, on almost every index mothers earn less, have less time to earn more, undertake the great majority of unpaid care work, and suffer the highest pay and promotion gaps and, here’s the rub: most would prefer to care for their children, especially when they’re young. As Catherine Hakim’s large-scale research shows, most mothers prefer to combine paid work with care work, while up to 20% prefer to stay at home full-time (2000). Basic income offers mothers, especially single mothers, a means to achieve economic independence at a modest standard while disentangling this from the interlocking and mutually reinforcing institutions of marriage, employment and welfare. In a modern liberal-democratic society, this is the proper foundation of liberty, of mothers’ liberty.

Women’s unpaid care work used to be “paid for” through the institution of marriage (as it often still is, albeit in modified form). That is, through the distribution of the husband’s wage to the whole family. This was the basis of the family wage that sanctioned men being paid at a higher rate than women. However, with men’s declining employment rates and stagnating wages, rising rates of divorce and more children born out of wedlock, poorer mothers’ access to a share of our collective wealth has declined. Women have always had lower wages and a radically compromised capacity to earn an income if they are the primary carers of their children (as most women are); this is not new. What is new is that under neoliberalism all people are required to maintain a full-time secure attachment to the labour force over a lifetime, regardless of their capacity to do so. Now that marriage is both an optional and a soluble institution, this situation has become acute for separated, divorced or never married mothers and we see it showing up in the feminisation of both poverty and homelessness.

From the opposite perspective, what I find interesting, immersing myself in the focus on automation and precarity in the broad basic income literature, including academic and journalistic articles alike, is the assumption that precarious access to employment is something new. Certainly, on a mass scale it is for most (though not all) men and the spectre of middle class professionals losing their jobs-something already happening in fields like journalism and academia and likely in the health sector next-is a very significant social and economic change; but for all but the most privileged women this economic precarity is the historical and contemporaneous norm. Thus, while a full-time, well-paid job over a lifetime is the route to economic security, notwithstanding the rhetoric of gender equality, very few women have ever had such jobs. So, my argument isn’t just that basic income is the only viable macro-economic answer to increasing economic inequality-specifically, the decline of full-time, secure jobs-but that it is a crucial answer to the as yet unresolved issue of gender justice under capitalism.

While I support a basic income for everyone, I think it is important to identify the specificity of mothers in this debate, given both the tendency to ignore the centrality of gender justice and the extent to which, when gender is centred, motherhood is glossed over. In fact we need to make the socio-economic impact of becoming a mother and of mothering work explicit.

Women who are not mothers, not-yet mothers, or long past actively mothering dependent children are all in quite different socio-economic positions (although of course the structural effects of mothering last a lifetime). It’s not that gender doesn’t matter; it’s just that motherhood matters more.

We can look at this demographically variegated landscape by looking at the gender pay gap and then looking at how motherhood impacts this.

In Australia, women’s full-time wages were 82.8% of men’s, with a wage gap of 17.2%. The gender pay gap has grown over the last decade from 14.9% in 2004, to a record high of 18.8% in February 2015 before falling slightly again in 2016. As a result women are earning less on average compared to men than they were 20 years ago!

However, this figure is calculated without including overtime and bonuses, which substantially increase men’s wages, or part-time, which substantially decreases women’s wages. In other words, “83 cents in the dollar” substantially overstates wage parity. When this difference is factored in, the pay gap widens to just over 30%. And in the “prime childrearing years” between ages 35–44, this gap widens to nearly 40%.

A more realistic figure is gained by looking at full-time versus part-time earnings as well as average male and female earnings directly. Here we see the pay gap more clearly. For example, in 2016, average weekly earnings were $1,727.40 for male employees and $1,010.20 for female employees (a difference of close to $720 per week). However, most mothers work part-time which exacerbates this pay gap yet again.

If we consider full-time and part-time work, the wage disparity widens further. Compare the $1,727.40 for full-time male employees with $633.60 for part-time female employees; now we have a gap of over $1100 per week! Close to half of all Australian women worked part-time in 2015–16-44% (double the OECD average). However, this figure rises to 62% for mothers with a child under five and almost 84% for those with a child under two. Close to 40% of all mothers work part-time regardless of the age of the child, while only 25% worked full-time.

The remainder, it needs to be remembered, were out of the workforce altogether. As the ABS put it, “Reflecting the age when women are likely to be having children (and taking a major role in child care), women aged 25–44 years are more than two and a half times as likely as men their age to be out of the labour force.”

Age of youngest child is a key predictor of women’s labour force participation although it has almost no bearing on men’s labour force participation and when it does it is in the opposite direction: fathers of younger children typically undertake more paid work. Moreover, a quarter of all female employees work casually and their average weekly earnings were just $471.40. Think about that-a quarter of all working women earn less than $500 a week! These days that barely covers the rent let alone food, bills, and educational and commuting costs.

Occupational segregation and motherhood wage penalties also kick in to this mix. If we look at labour force participation, we see that coupled mothers have higher rates of participation than single mothers given the additional support they receive with childcare and income.

Given the average full-time male wage is significantly higher than the average female wage and, moreover, that women carry the overwhelming share of unpaid care and domestic work and thus typically work parttime in their key childrearing years-and, we should remember, fully a quarter do not work at all!-this is not simply a matter of two incomes being better than one, which is of course true, it is that access to a share of male monopolised wealth-that is, to put it in stark terms, access to a husband-is essential for mothers to avoid poverty.

In broad terms, the closer we are to mothering dependent children, including especially infants and preschoolers, and the further we are from access to a male wage, the poorer we are as women.

Never married single mothers with dependent children are the worst off and it moves progressively from there, with young, educated, urban, never-married, childless women earning very close to, and in certain cases in the US, outstripping average male wages. This contrast gives us a sense of the variegated nature of women’s socio-economic position and again highlights that mothers are a distinct group and, more fundamentally, that the life course transitions of marriage and motherhood continue to negatively affect women’s (independent) socio-economic status.

Often when we’re talking about women’s lower labour force participation and lower earnings, then, we’re actually talking about mothers’ lower labour force participation and lower earnings and, more specifically again, we’re talking about mothers with dependent children; although the lasting effects of care labour means women across the spectrum have reduced earnings, assets and retirement savings if they have mothered.

To highlight this point, Australian sociologist and time use scholar Professor Lyn Craig has shown that many of the socio-economic disadvantages affecting women are, in fact, specific to mothers.

As she says,

“… the marker of the most extreme difference in life opportunities between men and women may not be gender itself, but gender combined with parenthood. That is, childless women may experience less inequity than women who become mothers.”

Another important reason we need to differentiate mothers from women is that over the last 40 years the standard female biography has changed significantly. Whereas once adulthood was by and large synonymous with marriage and motherhood for women, on average women now have a long stretch of adulthood-from the late teens to around age 30-before they have a first child.

For educated and/or unpartnered women, the birth of a first child is often later again into the 30s and sometimes up to 40. Moreover, while only around 10% of women did not become mothers in the mid and later twentieth century, this has now risen to 24%. So, not all women are mothers and many women experience a large chunk of adulthood before they become mothers and after they are actively mothering dependent children.

So there are structural and individual injustices that are specific to mothering dependent children, including an unequal division of domestic labour, unequal access to jobs given the unpaid work load at home, employment built on an implicit breadwinner model that is incompatible with parenting (including school hours, school holidays, sick children and so on), discrimination in the workplace and, in the event of unemployment and/or divorce, an increasingly punitive welfare state and a high risk of poverty. Single mothers and their children make up the bulk of those under the poverty line in the western world. In Australia, of all family groups, single parents constitute the largest single group of those living in poverty (proportionally).

Marriage is no longer the safety net (or gilded cage) it once was with just over 30% of marriages ending in divorce in Australia and predicted to rise to 45% in the coming decades. Additionally, fewer people are entering into marriages and cohabiting relationships have even higher rate of relational breakdown than marriages.

This means a large and growing number of women who are mothering children are caught in this literal economic no-man’s land without adequate access to waged employment, a breadwinner husband, or welfare. I am not suggesting that access to a husband is a right; I am suggesting that the liberal dissolution of the institution of marriage has not been followed with any viable economic alternatives for mothers. Basic income is the obvious choice to stop a large and growing number of women sliding into poverty.

Mothers undertake the bulk of unpaid care work, without which our society would cease to function. To turn this around, we need to ask: is it acceptable that as a society we free-load on this care?

Mothers’ economic autonomy-that is the very foundation of their citizenship and their liberty- is undermined by the extant intersection of the institutions of marriage, employment and welfare. It is on this basis that I am identifying mothers, and more still single mothers, as a specific socio-economic and political group in urgent need of basic income. This is a human rights crisis given that lone parent families are one of the fastest growing family forms in western societies and, moreover, that women head 80-90% of these families.

Unlike the contemporary issues put forward for basic income-namely, mass unemployment from automation and digitisation-the issues facing mothers are not new. Indeed they have been with us since the very inception of capitalism and the waged-labour system. Moreover, they are among the most compelling, given that women and their dependents comprise the majority of the poor. With the liberalisation of markets and marriage, a large and growing body of women and children, such as Harper and Naomi, are being left out of the social contract. Basic income is the critical policy answer to this problem.

Dr Petra Bueskens is an Honorary Fellow in Social and Political Sciences at the
University of Melbourne, a psychotherapist in private practice at PPMD Therapy and
a columnist at news media site New Matilda. She is the author of Mothering and
Psychoanalysis: Clinical, Sociological and Feminist Perspectives

See the original Green Institute PDF here.

Comparing a Universal Basic Income to Cash Transfers

Comparing a Universal Basic Income to Cash Transfers

Written by: Frank Kamanga

INTRODUCTION

This article is inspired by the article titled “Helicopter money and basic income: Friends or foes” authored by Stanislas Jourdan (2017). He made a very important attempt to clear up confusion between two similar and conflicting yet important terms in the global economy at this moment. Hıs article has opened doors for another attempt to compare basic income scheme and cash transfer schemes. This article will explain the definitions of cash transfers (CTs) and universal basic income (UBI), as well as institutional frameworks under which the programmes are implemented. It will also address financing arrangements for the programmes, and linkages between UBI, CT and Sustainable Development Goals, in an attempt to explain the justification of UBIs in the current state of the global economy. Policy issues related to both CTs and UBIs will also be highlighted.

Basic income and cash transfers are not novel ideas for poverty alleviation. A basic income scheme was initiated in North America in the 1970’s and 1980’s with support from prominent economists of that time. Following the successful implementation of such programmes, governments and the World Bank began implementing cash transfers in emerging and developing countries. With the rising discontent toward the neoliberal economic system and austerity measures, poverty alleviation measures such as Universal Basic Income (UBI) have been resuscitated back to life in developed economies. Gradually, governments in emerging and developing countries are carrying out pilot projects to assess the efficacy of basic income projects.

Emerging and developing countries like India and South Africa, which are implementing cash transfers, are also contemplating introducing basic income projects. This demonstrates that there are differences between these two concepts. Indeed, these two programs are similar regarding their purpose of alleviating poverty and their nature of implementation. However, the analysis below will show why UBI stands out as a different programme from cash transfers, and why our current economic circumstances means a basic income scheme should be implemented globally even in developing and emerging economies.

DEFINITION OF BASIC INCOME AND CASH TRANSFERS

CASH TRANSFERS

Cash Transfer Programmes are founded on social inclusion theory in the context of economic development. The social inclusion theory posits that governments should integrate the poor into the general economy by supporting them with a basic amount of cash.  Cash transfer programmes fall into two categories: conditional cash transfers and unconditional cash transfers. Under conditional cash transfers, recipients receive cash only if they can demonstrate that their behavior meets certain stated requirements. Under unconditional cash transfer programmes, the payout does not depend on individual behaviour (Forget E.L et al., 2013).

Conditional Cash Transfers (CCT) are used to encourage the behaviour of utilizing public services such as education and health services which lead to a reduction of poverty in the long run. For instance, in Mexico the conditional cash transfer programme provided cash to households on the condition that their children regularly attend schools and also access health services at clinics[1]. Proponents of conditional cash transfers argue that the scheme leads to better investments in human capital through access to social services that improve people’s knowledge and skills. The World Bank is a major supporter of the conditional cash transfer programme.

Meanwhile, advocates of the Unconditional Cash Transfer (UCT) programme look at the situation from a different perspective. They argue that poverty is cyclic and hard to break out of when there are conditions imposed on your spending. For instance, with restrictions on peoples’ spending, some basic needs are left out of the spending equation. To meet these basic needs, people may engage in other risky income generating activities such as sex work. When people are in poverty and desperate for money, we should not condition help on changing their behavior. Therefore, advocates of UCT argue cash should not be given according to certain behaviors. Rather, these resources should be made available to poor families so that they can make spending decisions consistent with their socio-economic priorities regardless of the work or job they are engaged in. UCT programmes are supported by human rights advocates and are consistent with a human rights based approach to development.

Unconditional cash transfers are not only premised on certain behavioural requirements, they also have lower administrative costs than conditional transfers (Capriati 2016).  In addition, in countries like Malawi unconditional cash transfers have also been merged with other social services like agricultural farm cooperatives and access to health services, hence improving their effectiveness. In this case, UCTs are more consistent with meeting a broader aspect of sustainable development goals.

This notwithstanding, with regards to impact, lessons from CCT and UCT programmes in Zomba city in Malawi have shown that both programmes have had positive results in terms of reducing child marriages, improving educational attendance, and avoiding early pregnancies. However, it has shown that UCT is relatively more effective in solving several challenges met by the families. This is because based on tastes, preferences, and priorities, families could decide how to spend money without constraints so that intended objectives can be met (Forget E.L et al., 2013).

BASIC INCOME

The concept of basic income is a relatively new phenomenon in the developing world as opposed to the developed world. In Canada, a basic income experiment called MINCOME was carried out as a means-tested negative income tax[2] in the 1970s. Meanwhile, a notable experiment was conducted in Namibia and currently two countries are carrying out pilot projects – Kenya and Uganda. Basic income guarantee or Unconditional Basic Income (UBI) is considered as a UCT income large enough to guarantee everyone in an economy or in the world a minimum level of financial resources on an individual basis without imposed conditions.

Basic Income mainly works on the principles of unconditionality and universality. Proponents of basic income also argue that the programme is based on the intrinsic value of human beings in an economy. This value is generated from their contribution to the creation of the general wealth of the society and also from the inherited value of our ancestors who created the wealth we are enjoying today (Jourdan S. 2017). Just like cash transfers, basic income plays quite an array of roles from poverty alleviation, school attendance promotion, work emancipation, gender balance incentivization, social protection, modernization and early child marriage prevention.

INSTITUTIONAL FRAMEWORK FOR BASIC INCOME AND CASH TRANSFER PROGRAMME

The institutional framework of these programmes can be analyzed in terms of implementation, sources of funding, policies and financial infrastructure. Firstly, given the diverse nature of objectives of both cash transfer and basic income projects, different non-governmental organizations and line ministries of central government can implement these projects. The government normally implements both basic income and cash transfer projects in the context of fiscal policies.

Financial sector tools such as mobile payment technology and policies also play a huge role in implementation of both basic income and cash transfer projects. GiveDirectly, a US based NGO, is able to implement a basic income project in Kenya and Uganda due to robust mobile technology payment systems established in these two economies.

FINANCING OF BASIC INCOME AND CASH TRANSFER PROGRAMME

Cash transfer programmes and UBI programmes share some differences in terms of how resources are to be mobilized. There is readily available information in terms of how cash transfer programmes are being implemented and funded in developing countries like Malawi. As for UBI, the information is scant but constantly flowing, as different suggestions on how the scheme should be financed are being put forward by proponents.

From an experience of cash transfer schemes in Malawi, these Conditional Cash Transfers are mainly funded by the World Bank and implemented by the government of Malawi. Meanwhile, Unconditional Cash Transfer schemes are implemented by Unicef, Oxfam, Government of Malawi and several non-governmental organizations. These programmes are financed by various donors including the Government of Germany, EU, World Bank, Irish Aid and the Government of Malawi. At the same time, the government of Netherlands is funding the design of a linkage and referral system of the Social Cash transfer programme.

As for the financing of the UBI programme, the topic is currently being addressed in different circles at policy and academic levels. Some of the topics being discussed include how the resources should be mobilized, what kind of tools should be used and who should fund the programme. Understanding this aspect of the UBI programme can assist in providing information on how to strategize campaigning and advocacy programmes for UBI in different countries.

It is claimed that there are currently no established, in-country funding mechanism for UBI in developing nations, except for external funds, as in the cases of Uganda and Kenya. However, in selected developed countries that are piloting the schemes, governments are implementing the projects through their fiscal space. Given the need for longevity of the schemes, some authors such as Young (2017), Stern (2017) and Santens (2017) have suggested sustainable ways for mobilizing resources for UBI in the United Kingdom and United States of America. Some of the methods may apply to both developing and developed countries, while others are restricted to developed countries. Here we will dwell on Young’s proposal for financing UBI and this can be can be categorized into three main groups: 1. Recalibrating existing tax and benefit systems 2. Replacing CCT 3. Communalizing common assets 4. Direct grants from the private sector can also be utilized.

Advocates for proposal one argue that for UBI to be politically feasible, it must be achieved using the existing infrastructure of taxation and spending. The idea is that UBI is currently at a conceptual stage. To materialize this scheme, governments must begin with existing resources (on a trial basis) and there is neither a need for radical and rapid changes to the system nor additional taxes. In this approach, the UBI scheme can be small in scale, targeting the most vulnerable people across the board. As in the case of developed nations such as the UK, resources can be mobilized through restructuring the existing, inefficient and unfair benefit systems. Under this proposition, UBI can be used as a subsistence or sub-subsistence level of income to be supplemented by earnings from employment and/or disability, housing, or child benefits.

One of the ways in which savings for UBI can be generated is through restructuring existing benefits, as explained by Malcom Torry of the Citizen’s Income Trust. He states that the administrative savings from dismantling the means-tested benefits system are in the range of £8-10 billion. In other words, it is very expensive to decipher who is and isn’t deserving of government support, especially when recipients must prove their worthiness. Restructuring the benefits to look more like a UBI scheme can not only help save money but would also be fairer.

The second proposal for financing UBI is simply replacing the CCT scheme with a UBI scheme in developing and emerging economies. India is already on the way to do this. UBI is more closely related to a UCT scheme, hence all the benefits of a UCT scheme over CCT also accrue to UBI.

The third proposition involves communalizing common assets. Some proponents state this UBI financing mechanism takes a more radical and systematic overhaul approach. These proponents look at financing UBI in its universality context and hence propose financing solutions that span across geographical boundaries of both developed and developing countries. These proponents argue for the abolishment of private ownership of resources – be it physical, cultural, biological, or economic. They argue that resources such as the biosphere, atmospheric carbon, fisheries and forests, and unearned income of technological change should be respected as the common property for all, rather than be the source of exploitative disparities from unequal access and power. The implementation of such a systematic and transformative change requires establishment of new policies, institutions and a new economic paradigm at a global level.

There are several prominent advocates who have come up with several ideas on how resources can be mobilized under the proposal of communalizing common assets. First, Barnes Boyce and James Boyce put forward that charges should be put in place by governments on access and use of ‘communally inherited assets’ and that revenues must be redistributed. They argue that charges could be placed, for example, on polluting the scarce resource that is the carrying capacity of our atmosphere, or on trades of stocks, bonds, and derivatives (the latter of which could raise $300 billion per year). Barnes and Boyce claim that charges on a portfolio of universal assets could grant a US citizen a UBI of $200 a month.

A wealth tax could also provide an alternative for resources for UBI ın some countries. Researchers such as Thomas Piketty suggest measures such as progressive capital taxation. Martin Faley suggests the Georgist land value tax (LVT) in the context of the UK. Faley claims that land taxes coupled with common licenses could fund a £4,500 annual UBI. A globalization fund could also strike a deal. Globalization has had some negative consequences as we can see from recent increased in nationalism and unemployment in developed and emerging economies. Multinational companies exploiting labor and cheap natural resources in developing countries whilst making billions of US dollars should be charged a globalization tax to be fed into the globalization fund. This fund can be used to support a global UBI dividend or grant.

The fourth industrial revolution is mainly characterized by automation of jobs and technological unemployment. Some economists and futurists have found leeway to press for resource mobilization to finance UBI. For instance, Economist Yannis Varoufakis and futurist Kartik Gada have each suggested that the labor savings from automation could (and should) pay for UBI. According to Varoufakis, the proposal is that one-part should be wealth tax and one-part should be ownership restructuring. That is, a small tax is levied on shares from every initial public offering put into a commons capital depository that in effect grants citizens property rights over new technologies that yield financial returns. The Commons Capital Depository would then pay out a UBI to all citizens.

The last proposal that is also being applied already is the financing of UBI activities with funds from the private sector. eBay is financing pilot projects in both Kenya and Uganda. More and more private companies can come in to support such projects in developing countries.

LINKAGES BETWEEN CASH TRANSFER AND UNIVERSAL BASIC INCOME AND SUSTAINABLE DEVELOPMENT GOALS

Cash transfer and basic income share the same theories of how they change people’s behavior or improve living conditions of people in the context of Sustainable Development Goals.

  1. CT programmes reduce poverty and increase income. As income increases, people spend money to solve diverse needs of their families and they also spend on luxury goods. SDG 1, 2, 3, 4, 5 and 9
  2. CTs and Basic income reduce risk. A CT or a Basic income is a form of social insurance that increases the planning horizon and allows one to take calculated risks. SDG 2,3,4
  3. CTs and Basic income reduce income inequality. SDG 10
  4. CTs and Basic income enhance social values of dignity and integrity, hence build communities through interaction. SDG 11, 16, 17

WHY UNIVERSAL BASIC INCOME NOW

There are quite a number of reasons to justify the policy shift in favour of basic income in both developing and developed countries. The first reason is that the basic income is guaranteed over a long period, thereby enabling people to make plans for major life decisions ahead of time. The longevity of UBI can also stimulate demand in the global economy, hence leading to increased production and employment in the production sector.

Additionally, just as with unconditional cash transfers, basic income schemes could be cheaper than providing in-kind transfers and conditional cash transfers. In-kind transfers take the form of goods and services like cattle, books, schools, and hospitals. It is claimed that projects involving the provision of such projects have huge administrative, implementation and logistics costs. Besides this, they constrain people on their freedom to spend money on the goods and services of their choice. However, thanks to mobile technologies, basic income programmes are implemented with ease and offer economic freedom on expenditure of the money.

Basic income is also conventionally universal and is regarded as a human right. Basic income programmes target people across the board in an economy. The cash is provided irrespective of your employment status, gender, region, physical ability. Rather, it is based on one’s inability to meet basic needs in a society. Therefore, beneficiaries in a basic income project are diverse and the impact on poverty reduction as well as the multiplier effect on the economy are likely to be huge.

Finally, just as with conditional cash transfers, basic income offers an opportunity for long term investment in human capital. From the recent evaluation survey of GiveDirectly’s basic income project in Kenya, 20 percent of respondents said that they were using the money for payments of school fees for either themselves or their children. As the project is expected to last for some years, recipients of the cash can make long term and secured plans to finance their studies, hence building human capital in the economy.

POLICY ISSUES FOR CTs AND UBI

  • Basic Income is more closely related to UCT. Therefore, in terms of cost structure, the cost per unit of outcome will be lower with a UCT and UBI scheme compared to conditional cash transfer scheme.
  • UBI has a greater potential for political advocacy and long-term stability despite its perceived greater cost, due to its universality.
  • Financial Modelling of UBI in Malawi must be conducted to assess the possibility of carrying UBI and UCT concurrently.

Frank Kamanga is a former Economist of the Central Bank of Malawi.  He is a co-founder of Global Hope Mobilization and Centre for Child Development of Research, two local NGOs in Malawi. He is member of the Basic Income Earth Network Outreach Committee and also Global Unification International UBI Africa Committee.

BIBLIOGRAPHY

Capriati M. (2016) https://www.givingwhatwecan.org/post/2016/07/whats-so-special-about-give-directlys-basic-income-pilot/ Accessed in April 2017

Forget, E.L, Peden A.D., and Strobel, S.B (2013). Cash Transfers, Basic Income and Community Building. Social Inclusion, 1(2), 84-91.

Jourdan S. (2017) helicopter money and basic income: friends or foes?

Santens S. (2017) How to Reform Welfare and Taxes to Provide Every American Citizen with a Basic Income. Accessed on 6th June 2017.

SDG knowledge platform.  https://sustainabledevelopment.un.org/?menu=1300.  Accessed in April 2017

Stern, A. (2017) Raising the floor. Accessed in June 2017

Young Charlie (2017). Conversation about Basic Income is a Mess. Here’s How to Make Sense of it. https://evonomics.com/basic-income-conversation-make-sense-charlie-young/. Accessed in April 2017.

[1]https://web.worldbank.org/archive/website00819C/WEB/PDF/CASE_-62.PDF

[2]A negative income tax is a progressive income tax system where people earning below a certain amount receive supplemental pay from the government instead of paying taxes to the government.

Towards a Basic Income: A Targeted Universal Framework for Shared Prosperity and Enduring Progress

Towards a Basic Income: A Targeted Universal Framework for Shared Prosperity and Enduring Progress

Towards a Basic Income

A Targeted Universal Framework for Shared Prosperity and Enduring Progress

 

By Mark Gomez

May 30, 2017

 

There is more than enough in the American economy, not merely to end poverty, but for everyone to prosper. And in the next 40 years, the economy will double again. Now is the time to construct a framework of bold policies to tackle extreme inequality and finally end racial economic exclusion.

Unfortunately up to quite recently, progress-minded activists have been proposing a familiar set of policies from a bygone era that represent little more than baby steps forward. These policies neither excite voters to go to the polls in droves, nor embolden candidates to risk their office to ensure the policies become law.

In this essay, we propose a strategic reform framework that adopts familiar set of policies for a new era of possibilities, with an eye towards how they can each uniquely contribute to economic prosperity and stability for all. In so doing, we believe we can inspire a new vibrant brand of politics and rekindle a belief in progress.

 

Excessive Power Creates Extreme Inequality

A few corporations and people enjoy remarkable prosperity. The rest of us are stuck. Without enough in our pockets to drive the economy forward, our prosperity is not just inequitably shared, it is fleeting.

Across product chains, prosperous firms know how to ensure their contractors produce high quality products. And prosperous firms have generated ample jobs across their regions. However, these firms have yet to ensure that the workers they rely on also prosper.

Extreme inequality is born of excessive power wielded by a few firms and people. This power is built on stabilizing advantages inherent in our economy (e.g. natural monopolies, industry clusters) or granted through policies (e.g. patents, occupational licenses).

The stabilizing advantages (e.g. unions, free college, cheap homes) that once built the white middle class have been severely weakened. Of course these advantages also were often designed to exclude people deemed less worthy–women, African Americans, immigrants and others.

The dominant players’ extreme power slows economic progress and corrupts our democracy. We need to create effective countervailing power mechanisms and supporting institutions. And we need to recreate stabilizing advantages not just for the white middle-class, but also for African-Americans, immigrants and others who have yet to fully prosper.

 

Driving the Economy Forward from the Back

Our framework puts money back into people’s pockets enabling them to drive enduring prosperity. Those at the back of the income and wealth distribution, those who heretofore have been held back will now lead the economy forward benefiting all of us.

Income and wealth created socially needs to be distributed socially rather than by the few. To revive the economy and protect our democracy, we must strategically break up perilous concentrations of income and wealth. This tames dominant economic players, rewards the work of the rest, and ends racial economic exclusion.

This framework is built on three pillars: a decent stable income, a sturdy foundation of assets, and a share in our economy’s prosperity. Here is an initial take at what this could practically look like in dollars and cents.

1. A Decent Living EITC with the maximum credit set so that a single earner full time minimum wage worker’s household earned income reaches 250% of federal poverty. Childless workers will receive proportionate credits. The credit will be distributed monthly. To break up perilous concentrations of income, the program will be paid for by a tax on the top 20% of earners.  

2. A Social Inheritance Trust of $60,000 made available at 21 years of age. The initial annual contribution to the trust will be $2,857 per child. To break up perilous concentrations of wealth, the program will be paid for by a new tax on all forms of property. To ensure benefits for those now under 21, a one-time wealth tax will be imposed.

3. Prosperity Shares with monthly dividends to everyone over 18 years of age. The initial annual dividend would be $6,000 per household. To break up the perilous concentration of corporate income, the program will be paid for by a tax on the most prosperous of firms.  

 

A Targeted Universal Framework

Our universal goal is to ensure everyone prospers. Each policy is targeted to address the structure of industries and of households. Our strategy is built upon how business firms are connected through value chains and regional economies. And our strategy recognizes how hourly wages, annual income, and assets each contribute to households getting by.  

The “Decent Living EITC and Prosperity Shares” together reflect our ideal of the good life. We believe hard work should be rewarded and we believe in financial independence. The “Decent Living EITC” ensures dominant firms contribute to the prosperity of workers at less advantaged firms. And the “Prosperity Shares” ensure that we all, not just the upper middle class with stocks, enjoy our nation’s prosperity.

Over time, “Prosperity Shares” may be increased faster than the “Decent Living EITC”, eventually moving towards a more traditional UBI. The framework gives us the flexibility to adjust the distribution of income if, indeed, robots reduce the number of hours humans need to work.

The “Social Inheritance” breaks up racial economic barriers driving the political transformation needed to pass these policies. Those groups who heretofore have been held back from sharing in our prosperity are in many cases the most active politically in critical regions of the country.

This policy framework is predicated on reforming our antiquated national, state and city minimum wages laws. There is a legitimate fear that, with a decent living, EITC firms will in time not grant raises to their lesser paid workers. To ensure firms do not cheat in this manner, we need robust living wage standards with premiums for more prosperous regions.

None of this framework is possible without immigration reform. The dominant economic players, the people and firms, in the most prosperous regions rely on the hard work of undocumented immigrants. Their work is underpaid precisely because these workers and their firms lack power, in no small part, because they work in the shadows of our political economy.

For each policy we did not ask “how are we going to pay for this?” Instead we asked this: “At whose expense was the extreme income or wealth created?” Too many analysts critique extreme inequality only to then put forward policies that leave ill gotten gains intact. At the very least, moving forward, we need to discontinue the radical redistribution of income and wealth of the last two generations.

Over time, the income and asset standards need to increase with the economy. If they are indexed merely to the cost of living, within 40 years, we will the recreate extreme inequality we have worked so hard to undo. The income standard should be indexed to the U.S. GDP per capita. The asset standard is indexed to U.S. wealth per capita.

 

Shared Prosperity and Enduring Progress

Over the next generation, if we follow the historical trend, we will add to our economy $7 trillion in income and $27 trillion in wealth. Because each of us, and those who came before us, have contributed to that prosperity, we should share in it. In short order, we can ensure everyone enjoys a ‘middle-class’ standard of living. And, in the years to come, we should be able to ensure people do still better.


Mark Gomez, a long time community activist and labor union strategist, now leads the Leap Forward Project at the Haas Institute for a Fair and Inclusive Society.