Basic Income Makes Headway at the World Social Forum 2016 in Montreal

Basic Income Makes Headway at the World Social Forum 2016 in Montreal

Basic Income Québec (RBQ) and the French Movement for a Basic Income (MFRB) had been preparing for the World Social Forum (WSF) event for almost a year. Their efforts paid off – the activities organized by the France-Québec team were an unmitigated success. For the first time ever, basic income achieved prominence at WSF, reflecting the growing worldwide interest in the idea.

A successful opening march with basic income robots that did not go unnoticed

The six members of the MFRB delegation teamed up with their counterparts of RBQ in order to organize several initiatives centered on basic income at the WSF in Montreal.

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A wild workshop, a prelude to the Create-a-thon planned for Tuesday, August 9th, led to the creation of two robots (a concept developed by the MFRB local group of Lyon) along with signs and ponchos for the opening march taking place that day in Montreal, from Lafontaine Park to the Place des Arts that attracted about 15,000 people.

Marcus Brancaglione, Brazilian guest from the ReCivitas association, joined the jubilant “gang” of dozen-or-so activists who merrily spread the word about the program for the week, inviting passersby to come and take part in the workshops, conferences and debates.

The robots attracted quite a bit of attention. They were a big hit…or as the co-founder of RBQ (Luc Gosselin) put it, they “made a splash,” using a Quebec expression. They served as a rallying point throughout the week.

On the morning of August 10th, the group took possession of the two rooms that were graciously provided by the University of Quebec in Montréal (UQAM), enabling them to welcome more than two hundred motivated participants during the three days (excluding the Grand Conference).

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Create-a-thon. Eighteen hours of creation. Fourteen stories from around the world.

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The creation marathon was organized by the RBQ team. This two-and-a-half day event began with Lenny Watson’s presentation on the first Create-a-thons organized in San Francisco, Los Angeles and Finland.

Following an exchange between participants, an idea emerged. Inspired by a participant’s story about her mother, they began collecting stories of people they knew and explaining how a basic income would change their lives.

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They started filming the next day. Aurélie Hampel handled video while Louise Allaire did the scripting and by day’s end 14 stories had been made, thanks to the many people who dropped by. Each told their story, stories from around the world, in their own language: in English, French or Portuguese.

On Friday, Aurélie and Louise pulled out the key themes and words from these stories. They were grouped into five chapters.

The following themes were chosen:

A basic income… when life is merciless

A basic income… to find one’s place in life

A basic income… in case of extreme poverty

A basic income… freedom to choose your own path in life

A basic income…to provide end-of-life care for loved ones

Teaser: https://youtu.be/wpKPSuSmZT4

All videos will be available on the MFRB YouTube channel, by the International Basic Income Week.

Ğeconomicus

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The goal of the Ğeconomicus workshops was to promote the idea of changing our money system to bring about basic income without getting mired in politics and to start changing our debt-money-induced behaviour.

Carole Fabre and Damien Vasse hosted two game sessions, testing different monetary systems through card-playing. To sum up, each player exchanged cards with others to form squares. Each square represented a created value and was accounted for with a piece of candy (a new candyless version is possible. See website).The number of created value was tallied up at the end.

Human lifespan was introduced to test monetary exchange systems while keeping the same markers introduced in the Théorie relative de la monnaie by Stéphane Laborde.

With two and a half hours set aside for each workshop, they changed the rules and reduced human lifespan to 60 years as well as the duration of each round of play. They then played using a monetary system based on debt–today’s current system – and using a monetary system based on basic income and open money. Other systems could also be tested, such as barter and mutual credit, but they were unable to do so due to time constraints.

This game helps us understand how the structure of the monetary system affects our behaviors and exchanges.

Debt-money is boisterous and full of competition, trickery and knavery. With open money, tensions subside after two rounds, cooperation emerges and the ambiance changes. They were able to set aside over half an hour at the end of each workshop for a post-game discussion and debate. It was very rewarding each time, as people became aware of the debt-money trap and the unbelievable power of banks. With basic income in money creation, people saw that it was still possible to create value, but with a different behavior.

Co-creating our basic income using open money is finally possible, thanks to Duniter, an open money generator that took four years of work by developers and coders to make it fully operational. Now that it has proven successful in computer simulations, it is ready for the real world. The game provides an opportunity to show people that the system works and that it is up to us to make it happen.

Convergence Assembly: From realistic utopia to public policy

The two convergence assemblies were developed and facilitated in cooperation with Pierre Barbès and Gilles Charest, sociocracy experts at l’École Internationale des Chefs. The aim was for these meetings to be as inclusive as possible and to make people aware of the working methods we used by the MFRB, with a focus on sociocracy.

Right, Pierre Barbès,speaker and author, certified in sociocracy and community spirit development.

Right, Pierre Barbès,speaker and author, certified in sociocracy and community spirit development.

The conference ended with a round table giving everyone a chance to share what they gained from the workshop.

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Convergence Assembly: “Income: A non-medical remedy?”

The idea for the assembly came from the Forum’s Health Space Committee, which two members of Basic Income Quebec took part in. The committee consisted of Quebec health professionals. RBQ wanted to ensure that one of the determinants of health – income – would be discussed and that everyone knew about the proven efficiency of basic income in areas where pilots had been conducted. Committee members were very receptive to the idea, as many of them were already familiar with the concept of basic income.

RBQ considers it as an important strategic step in Quebec. The group would like to see Quebec health professionals adopt a position in favor of basic income, just like their English Canada counterparts, both within their organizations and individually. The English group played a key role in the Ontario government’s decision to launch a basic income pilot, which is currently being developed.

The meeting reflected the keen interest in basic income by people from different countries who are primarily concerned with health, either as professionals or as citizens. Various courses of action were suggested.

Workshop: “On the Equitable Sharing of Wealth: Considering a Universal Basic Income and Maximum Wealth”

Many people pre-registered for this workshop as soon as it was announced, and it drew an at-capacity crowd. Wealth-sharing is an issue that has been addressed in various ways at the Forum. A universal allowance (or basic income) is an often-mentioned way to perform this sharing function in our societies. Maximum wealth has the same goal, but is less present in the public space. As a result, the majority of participants came to the workshop with a better grasp of basic income than maximum wealth. The similarities between the two ideas generated a lot of interest and lively debate with both facilitators, Alexandre Chabot-Bertrand and Christian Jobin. The exchanges continued long after the workshop had ended.

Grand Conference: Basic Income, a Major Social Innovation for the 21st Century?

Watch the conference video: https://youtu.be/tEumE1N1E0Y

The activities were concluded with a grand conference attended by nearly 500 people on the evening of Friday, August 12th. The speakers, each from a different country and approaching the issue of basic income from different perspectives, made quite an impression by their presence, their passion for the issue and their humor.

The conference began with a video from South African partner, Nkateko Chauke, Basic Income Grant Campaign Coordinator for the SADC (South African Development Community, which includes fifteen countries ranging from Tanzania to South Africa)

The conference began with a video from South African partner, Nkateko Chauke, Basic Income Grant Campaign Coordinator for the SADC (South African Development Community, which includes fifteen countries ranging from Tanzania to South Africa)

The conference began with a video from South African partner, Nkateko Chauke, Basic Income Grant Campaign Coordinator for the SADC (South African Development Community, which includes fifteen countries ranging from Tanzania to South Africa), who unfortunately was not able to attend. Watch the video here.

Rutger Bregman, Dutch journalist and author who recently published his book, Utopia for Realists: A Case for a Universal Basic Income, Open Borders, and a 15-hour Workweek, led off the discussion by addressing basic income from a labor perspective

Rutger Bregman, Dutch journalist and author who recently published his book, Utopia for Realists: A Case for a Universal Basic Income, Open Borders, and a 15-hour Workweek, led off the discussion by addressing basic income from a labor perspective

Rutger Bregman, Dutch journalist and author who recently published his book, Utopia for Realists: A Case for a Universal Basic Income, Open Borders, and a 15-hour Workweek, led off the discussion by addressing basic income from a labor perspective. He questioned the moral imperative to work in a world that promotes the creation of what David Graeber calls bullshit jobs, referring to those pointless jobs, both for the people performing them and for society as a whole.

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Karl Widerquist, from the United States and co-chair of the Basic Income Earth Network (BIEN), then spoke about the three successive waves of basic income in our history

Karl Widerquist, from the United States and co-chair of the Basic Income Earth Network (BIEN), then spoke about the three successive waves of basic income in our history. A first wave took root in the twentieth century (although the idea had already been discussed by the likes of Thomas Paine or Thomas More), especially in the Anglo-Saxon countries with advocates such as Bertrand Russell, George Henry and Virginia Woolf. The arguments at the time dealt primarily with principles of social and agrarian justice. The second wave emerged in the 1960s, with basic income being championed mainly by civil rights activists – Martin Luther King being the most eminent example. We are now in the third wave, which calls into question the current system, the conditionality of social welfare and our response to the changing nature of work. These changes have led to a wider acceptance of the idea, with more and more people showing an interest for it, including politicians and journalists.

Marcus Brancaglione, president of the ReCivitas association, presented the project being conducted in the town of Quatinga Velho in Brazil since 2008

Marcus Brancaglione, president of the ReCivitas association, presented the project being conducted in the town of Quatinga Velho in Brazil since 2008

Lastly, to demonstrate the potential of basic income, Marcus Brancaglione, president of the ReCivitas association, presented the project being conducted in the town of Quatinga Velho in Brazil since 2008. Marcus Brancaglione views basic income not just in terms of a pilot project but as a fundamental human right because he believes that poverty exists in society only because we allow it to. Brazil is the first country to have it enshrined in its Constitution as a long-term goal. The time has come to implement it.

The three speakers were very well received by the very engaged and enthusiastic audience. Hundreds of hands were raised throughout the discussion, as a lot of people wanted to ask questions and to share their thoughts on what a basic income would mean for them.

All these wonderful, diversified and varied initiatives helped spread the word about basic income throughout the world, clearly marking this year’s edition of the World Social Forum in Montreal.

Thanks to all those who helped make this event a success for basic income around the world!

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The MFRB-RBQ organizing team: Aurélie Hampel, Carole Fabre, Christian Massault, Damien Vasse, Nicole Teke, Sylvie Denisse, Luc Gosselin, Louise Allaire, Lenny Watson and Sylvia Bissonette.

Article translated from French into English by Didier Di Camillo.

Celebrate ninth international basic income week

Celebrate ninth international basic income week

From September 19th to 25th, 2016 we celebrate the ninth International Week of Unconditional Basic Income, and you can get involved where you are!

National and local groups and activists everywhere will be on the streets, in cinemas, in universities, on the internet or in the media to spread the word about basic income.

Last year for the eighth International Week we had events and media coverage in 29 countries on all continents.

To show how big and relevant a topic basic income is becoming we collate all events on this website or check out our calendar.

If you are already planning an event, please log it into our contact page to post to our calendar, post it on Twitter with the hashtag #basicincomeweek9 or tell us about it on Facebook.

When you have links to media coverage, photos, videos or links to your website or social media that you want to share with basic income supporters from other countries, please add them! We are also still happy to receive links to articles from last year’s International Week.

If you have events on in September that were not especially planned for basic income week, but fall into that week please add them, too. Anything basic income goes!

If you would like to host an event, but are not sure what to do yet, have a look at last year’s calendar for ideas.

If you want to tell us current basic income news from your country, we would be happy to interview you via Skype.

Enjoy the ninth International Basic Income Week!

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TAIWAN: Basic Income is feasible and an imperative

TAIWAN: Basic Income is feasible and an imperative

 

The Unconditional Basic Income has been springing up around the world as a new human rights movement, protecting everyone’s fundamental right to life. In addition to basic human rights, traditional Chinese Confucianism, Buddhism and Daoism shows us the fundamental nature of humanity is good, in that all beings originally are Buddhas, all are endowed with Buddha nature (1), so each human being deserves equal respect and care. The Unconditional Basic Income is a manifestation of this ideology of benevolence.

Around 2,300 years ago, China’s Mencius wrote in King Hui of Liang, due to a lack of constant property, the common people also lack unwavering perseverance. This will lead to a dissipation of propriety, causing a tide of lawlessness. Waiting until a citizen breaks the law, and utilizing punishment to handle him is essentially like using a fishing net to ensnare the populace. How can a benevolent monarch think this type of policy can be put into practice? As such, a wise monarch will formulate property for the people, giving them the ability to serve their parents and provide for their spouse and children. During a year of prosperity, a family can eat well and during years of shortages, they can still avoid starvation. Then enlightenment can be put into practice, urging the populace to perform good deeds, making it easier for them to follow the enlightenment. This is what Mencius meant when he said “Establishing property of the people, make them have sufficient food and clothing; first support (the people), then teach (the people).”

Thus, each of the basic income experiments around the world allow us to realize that after a person receives a guarantee for their livelihood, crime goes down, educational outcomes go up, economies grow, physical and spiritual health improves, families and societies become more harmonious, and parents have more time to accompany and take care of their children. Society is created by each family unity. Creating more harmonious families will make a more harmonious and safe society. In today’s turbulent world, implementing a UBI is of the utmost importance.

Inspired by the news surrounding Switzerland’s basic income referendum, this February I worked with the respected teacher Chunchi Tsao, a doctor of traditional Chinese medicine, to start a new organization Global Basic Income Social Welfare Promotion Association in Taiwan. On Facebook, I recruited 30 people to found the organization to apply through the government to become an official organization. I hope that we can cooperate with the global movement to push the basic income, free education, social housing, free vegetarian restaurants for environmental protection, etc. in order to implement social welfare.

The honorary president of our association, Taiwan University’s School of Law European Union Law Research Center (EULRC) Dr. Lukas Lien said, “When the country’s founder, Dr. Sun Yatsen said ‘of the people, by the people, for the people,’ the genuine meaning was a country of social welfare, instead of the Nationalist KMT party’s idea of exploiting the people. No. The real meaning is to give all of the resources to the people and then the government can attain so-called legitimacy. Otherwise what can they rely on for legitimacy to levy taxes? The purpose of taxes is for educating the people, ensuring everyone has food, clothing, housing, transportation, and then the most important element is ensuring the most basic right to life. In German it is not called UBI. It is called the most fundament, the most basic right to life. That is to say, at the very least, is that no matter the circumstances, no one will face starvation.”

The purpose of government’s existence is to take care of the people. If a government does not take care of the people’s food, clothing, shelter, education and their fundament right to life, then a government is no longer needed, and in fact no longer has legitimacy to levy taxes and legislate to regulate the people. Since ancient times, both the East and the West have followed the ideology: “The will of the people is the will of Heaven,” and “The people are God.” The Book of History puts forward “Heaven sees what the people see, Heaven hears what the people hear,” and “That which the people desire, Heaven must abide by.” In Latin it is, “Vox Populi, Vox Dei”, or “The voice of the people is the voice of God.”

Dr. Lien also quotes the last Pope: “because all are created in the image of god, so we must protect people, in the same way that we protect the image of God. In his Christian Socialism course, Dr. Lien quotes Matthew 25 verse 31-46, the story of the judgement day: “Truly I tell you, whatever you did not do for one of the least of these, you did not do for me.” That is to say, we push for the basic income in order to push for world peace.

The practical way to achieve this is through the basic income, free education, and social housing as social welfare protections in the constitution and legislation. Educate the people about the ideology and law behind these basic rights is the first obligation. Revolution has to start from the mind. Once the people have the understanding of the ideology and law, then we will be able to choose and create a government of benevolence, as well as understand how to use legislation to push for these social benefits.

Collecting the revenue for the basic income has many different methods, for example taxes and printing money, cutting and integrating general welfare spending, generating profits or raising money. As science and technology continues to progress, humanity can already gradually use automation and robots to substitute human labor. This will give people more time and energy to pursue artistic and creative endeavors, entrepreneurship, spiritual development and realize their own dreams.

Our organization already conceived of some methods to fund the basic income: develop autonomous robotic national industries in order to produce food and other necessities and allocate the profits to all people. The American economist Milton Friedman 1969 popularized the satirical idea of throwing cash from helicopters and letting people collect it. In reality, the Central Bank could print money and directly give it to the entire population. In the second year, the basic income could be matched with a consumption tax and some of the money that was issued could be absorbed back into government coffers. From this, an uninterrupted source of finances could supply the revenue for the unconditional basic income to smoothly operate over the long-term. Certainly, there are many more methods for financing the UBI, which could all be properly tuned and applied.

Universal unconditional basic income is not only feasible; it is an imperative.

Annotation: 1. All beings are originally Buddhas – The Chart of Mortals, Saints, Delusion and Enlightenment

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Written by Juku Shenguang: Founder, Vice-president and Secretary-General of Global Basic Income Social Welfare Promotion Association in Taiwan.

Translated by Tyler Prochazka

Basic income: the post social democratic economic pathway for the 21st century

Basic income: the post social democratic economic pathway for the 21st century

By Alexander de Roo 

The 20th century was the century of social democracy in Western Europe. But nowadays the social democratic model of the welfare state is in deep crisis. This model — in which paid work is central, full (male) employment is the norm, and social benefits are dependent on performance in paid work — is no longer working and no longer appealing to voters.

The strong political position of social democracy in Western Europe has been based on the strength of labor unions. Economic changes, however, have accelerated the declining membership of unions. The strength of the various social democratic parties has thus been structurally eroded. Consumption and leisure time are becoming ever more important. These factors open the way for basic income as the economic model for the 21st century.

There is a strong relationship between the strength of the unions and the popularity of the Dutch Labor Party in national elections. In the chart below, the dotted line represents the strength of the unions, while the continuous line represents the strength of the Labor Party:

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As you can see, there is a structural relationship between the strength of the unions and the electoral strength of the Dutch Labor Party (PvdA – the social democratic party of the Netherlands). The unions are slowly losing members in the Netherlands. The decline is largely due to structural changes in advanced economies. For example, total manufacturing employment in America has fallen from nearly 20 million in 1979 to 12 million today. The kinds of workers who have lost out — unskilled men, in particular — were precisely those who were most likely to belong to a union in the first place. And what has sprung up in their place further undermines unions. If you went to a factory in the 1970s, you would have seen assembly lines of people. Such workers were much more amenable to the idea of “class consciousness”. Go to a factory today and you might you find a few people monitoring robots and other whizzy bits of machinery. Add other economic changes to the mix — globalization (which makes it harder for unions to regulate work), the rise of a more flexible service sector and government policies — and the loss of union clout seems inevitable. More recent reforms to minimum wage and workplace discrimination have also reduced the need felt by individuals to belong to a union.

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The decline of the Dutch Christian Democratic party

Additionally, the other political party essential to the construction of the Dutch welfare state, the Christian Democratic Appeal (CDA), is in structural decline. Below, we see the electoral results of the CDA over the last 60 years – from an absolute majority in the 1950s and early 1960s to only 10 percent in the 2012 elections.

The blue line represents the three different Christian democratic parties in the Netherlands, which merged in 1980 to form the singular CDA – represented by the green line.

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In the general election of 2006 — before the 2008 economic crisis — the CDA and the PvdA together had 46 percent of the vote. That proportion dropped to 32 percent in both the 2010 and 2012 national elections. Today, according to opinion polls, these two parties together command just over 20 percent of the vote. That is to say, the parties of the old social model have declined from 46 percent in 2006 to 20 percent in 2016, losing more than half their support in just 10 years.

Conclusion: Political support for the old welfare state, developed by the Labor Party and the Christian Democratic Appeal, along with the unions, has been completely eroded.

 

The Dutch Precariat: Almost 40 percent

“In the 21st century, technological changes are being introduced into economic and social life at a much faster pace than in the 20th century,” noted Dennis Meadows, one of the authors of Limits to Growth, in a 2012 lecture in Brussels.

One of the most important trends has been the rise of flexible work. This has been especially strong in the Netherlands. Today 20 percent of Dutch workers, amounting to 1.7 million people, are on flexible contracts. The increase seems unstoppable. Unions are demanding that politicians repair this state of affairs by restoring the old model of stable, regulated jobs through legislation.

Alongside the 1.7 million flex workers are 1.3 million people who are self-employed. At least 20 percent of these – 0.3 million people – became self-employed due to a lack of alternatives. The graph below shows the increase in flexible jobs over last 10 years, and the corresponding decrease in regular jobs. The blue bars signify the increase in the number of flex workers, while the brown bars indicate the change (usually negative) in the number of regular workers.

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Additionally, there are 0.6 million people officially registered as unemployed, and 0.4 million who depend on social benefits (“Bij-stand” in Dutch). In total, 3 million people and their dependents form the Dutch precariat. Approximately 5 million people still have regular jobs – 10 percent fewer than 10 years ago. And automatization is threatening even these jobs. In the debate in The Netherlands, the position that the rise of the robots will lead to structural unemployment is still minor. However, studies like one from Oxford University show that approximately 50 percent of the jobs that exist today will no longer be secure in 20 years’ time (THE FUTURE OF EMPLOYMENT: HOW SUSCEPTIBLE ARE JOBS TO COMPUTERISATION? Carl Benedikt Frey and Michael A. Osborne; September 17, 2013).

 

Opportunities for basic income implementation are growing in the Netherlands

“Nothing is more powerful than an idea whose time has come.” –  Victor Hugo

The decline of the two old parties that built the Dutch welfare state, combined with the rise in number of the Dutch precariat, opens the way for a post-social democratic pathway. Basic income has the strongest card. In contrast to the 1980s and 1990s, large parts of the Dutch population are now receptive to the idea of basic income, given that the present welfare system is – in their eyes – no longer worth fighting for.

 

History of the basic income debate in the Netherlands

There was fierce debate about basic income in the 1980s and 90s in the Netherlands. The Dutch branch of BIEN, “Vereniging Basisinkomen”, was founded in 1989. Before that, an organization called “Workshop Basic Income” promoted the idea. The PvdA almost adopted basic income in its national election program in 1993 (with 40 percent in favor). Then, in 1994, there was a debate about basic income in the national government. On the side of basic income were the Minister of Economic Affairs, Hans Wijers (of Democrats 66, left wing liberals), and the Minister of Finance, Gerrit Zalm (the People’s Party for Freedom and Democracy, right wing liberals). On the other side, the Prime Minister, Wim Kok (of the PvdA), argued successfully that basic income’s time had not yet come, claiming it to be a topic for 30 years down the line. The economic upswing of the early years of the new millennium subsequently overshadowed this discussion in the Netherlands.

The financial and economic crisis of 2008 changed the economic and political landscape. And, over the past three years, the basic income discussion has returned to the Netherlands, becoming much more intense than it was 25 years ago.

Even with the recent economic upswing, the old status quo — under which almost all adult citizens had a secure, regular job — is history. A new scheme of social security is urgently necessary. The general public recognizes this.

 

National poll: 40 percent in favor; 15 percent don’t know; 45 percent against basic income

In a recent national poll, 40 percent of the Dutch population declared themselves to be in favor of a basic income, with 45 percent against and 15 percent expressing uncertainty. The voters of the three left wing parties are in favor, with their endorsement breaking down as follows: GreenLeft 60 percent, the Socialist Party 54 percent, and PvdA 53 percent.

The votes of Democrats 66 are divided, with 44 percent in favor and 45 percent against. The followers of the right wing parties, by contrast, are quite clearly against basic income: 73 percent against in People’s Party for Freedom and Democracy, and 61 percent against in CDA. It is interesting to note that voters of the populist right wing Party for Freedom, headed by Geert Wilders, are also divided, with 37 percent in favor, 46 percent against and 17 percent uncertain. The Party for Freedom is the biggest party in current polls.

 

Enthusiasm

When we hand out our basic income leaflets to the general public, about 50 percent of people take the pamphlet and react positively, while the other half ignores us. Several times a young couple, arm in arm, would pass me – the young man would nod that he was not interested, but the young woman would leave him to walk back and collect a leaflet! We have lively discussions with the public. Even young people who were not alive 25 years ago, when that first debate raged, have already a very good idea of what basic income is. I have been active in politics for 42 years and I have never encountered so much enthusiasm.

 

Free money for everyone

The return of the basic income idea to the Dutch debate has been invigorated by a book by the young historian Rutger Bregman (only 28 years of age), Gratis Geld voor Iedereen (Free Money for Everyone), which was published in September 2014, along with a few national television documentaries. Bregman’s influential book on basic income is now available in English, under the title Utopia for Realists.

 

Petition for the Dutch parliament

A petition to put basic income on the agenda of the Dutch parliament gathered 50,000 signatures over a couple of months. The intention is to generate 100,000 signatures by autumn so that basic income can play a role in the election campaign for the Dutch national elections in March 2017.

 

Local experiments with basic income
Several basic income experiments are planned in the Netherlands. Nineteen municipalities have officially declared their willingness to initiate such an experiment to the Ministry of Social Affairs and Employment. Utrecht, Groningen, Tilburg and Wageningen were the first four to do so, and they are currently in conversation with the State Secretary for Social Affairs and Employment in order to establish the necessary space in the law. These experiments will not comprise trials of a full basic income, even though many are based on the idea of a basic income. Instead, elements of a basic income are to be implemented in these experiments within the rubric of the current Dutch minimum welfare scheme (“Bij-stand”). More precisely, for the experiment participants, allowances will be made unconditional, allowing recipients of the minimum welfare to earn money simultaneously and thereby removing the currently existing poverty trap.  

Various questions will be addresed by these experiments:

  1. Will people become more active if they are free to do what they want, as compared to the present situation under which they must apply for jobs and be policed?
  2. Will people become more autonomous?
  3. Will people become healthier?
  4. Will people be quicker to participate in paid work if they are allowed to earn in addition to receiving their allowance?

A large majority of the parliament is in favor of the experiments, but the details are still under discussion nationally, and there is a legal process that must be completed. If all goes well, the first experiments will start in January 2017.

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Why have the experiments not yet started? Will there be 25 experiments in 2017?

The experiments should have already started, in fact, but the national government is very slow in giving the green light. The Dutch GreenLeft asked the national parliament in November 2015 to clear the way for these experiments. Fifteen of the 17 political groups in the national parliament said yes, with only Wilders’ Party for Freedom and Prime Minister Rutte’s People’s Party for Freedom and Democracy saying no. According to the latest update, the government is now working on an administrative decree which will allow the 25 most advanced municipalities to start their experiments in January 2017. That is likely to annoy the other 50 municipalities that also wish to initiate their own experiments.

Since the national elections are set for March 17th, 2017, this issue will most likely play a role in the national election campaign. It is likely that the left wing parties (GreenLeft, PvdA and, perhaps, the Socialist Party) will put forward demands for a Finnish-style experiment of basic income during the 2007 national election. One small party, the Cultural Liberal Party, is already advocating for the introduction of a basic income of €800 in the Netherlands.

 

Funding of basic income should be based on consumption rather than labor

The Dutch branch of BIEN has developed a model to raise VAT and environmental taxes, while removing most tax exemptions, to fund a basic income of €1100 per person. In the long run, this amount should be increased to €1400. The option of a small tax on financial transactions is also of interest in this regard. We oppose models that would fund basic income solely on an increase of taxes on labor. The Dutch Central Planning Bureau did just that in 2006, resulting in 56 percent income tax for everyone and a five percent increase in unemployment. We are instead fighting for a new calculation based on increasing consumption taxes so as to make it clear to the public that a basic income is (easily) affordable.

 

Alexander de Roo (alexanderderoo@gmail.com) was one of the founding fathers of BIEN and served as BIEN’s treasurer from 1986-2006. He studied chemical technology in Delft (1972-1978) and political science in Amsterdam (1976-1982), and was a GreenLeft Member of the European Parliament from 1999-2004. 


Alexander de Roo photo credit: Bill Crompton.

Content reviewed by Genevieve Shanahan and Kate McFarland.

US: Johnson supports Basic Income on libertarian principles

US: Johnson supports Basic Income on libertarian principles

Article originally appeared on the Libertarian Republic by Brett Linley

At the FreedomFest convention in Las Vegas, Nevada, Gary Johnson took a stance puzzling to many libertarians. Per the Basic Income Earth Network, Johnson conveyed that he would be “open” to the idea of Universal Basic Income.

To many fiscal conservatives, UBI seems like a blanket handout to engorge the welfare state. However, Governor Johnson claims a libertarian justification for the system. “Like many libertarians, Johnson said he liked the idea of the UBI because of its potential to save money in bureaucratic costs, freeing up more money to give people directly.”

In fact, Johnson is not the lone free market defender of UBI. Other prominent libertarian voices have spoken up to defend the idea in the past.

Milton Friedman advocated for the Negative Income Tax, acknowledged as a close cousin to UBI. Libertarianism.org published a piece by Matt Zwolinski in 2013 about the concept’s libertarian merits.

Some will automatically deride Universal Basic Income as socialism, and dismiss it immediately. However, when structured correctly, UBI could actually become a positive force for liberty. All libertarians should give an honest look at the policy before passing judgment.

How Universal Basic Income Promotes Liberty

Most libertarians can agree that the welfare state, as it stands, is a mess. With that in mind, the issue becomes what we can do to make it less convoluted. UBI provides a unique opportunity to tackle this issue.

The only way that such a system would be workable, or even desirable, is if we scrap all existing welfare programs. The government would have to phase out programs such as Social Security, Medicare, and food stamps with everything else. In their place, we’d receive a streamlined process that would provide new, efficient economic incentives.

It is also no small consideration that the federal bureaucracy would substantially recede. All of the complex agencies tasked with administering various programs would become one. It is certainly easier to imagine monitoring potential waste and abuse in one program than a dozen.

At first glance, it may be hard to believe that handing out checks provides efficient incentives. The important economic question to keep in mind, however, is “compared to what?”

As much as libertarians would like to see all welfare programs abolished and replaced with nothing, politicians and voters will never support leaving so many objectively worse off. While current welfare programs actively encourage people not to work, UBI would remove these disincentives.

How Universal Basic Income Gets People to Work

Under our current welfare system, people can be booted off welfare once they reach a certain income level. Upon losing their welfare checks, people can actually end up as net losers. The system in place incentivizes people to stay unemployed so they can maintain their current standard of living.

Under UBI, people would be able to pursue employment without fear of becoming worse off. As American Enterprise Institute scholar Charles Murray advocated in the Wall Street Journal, the benefits would decrease slowly as income rises in an ideal system. However, a certain immovable standard would be necessary in face of Social Security’s abolition. People still will need that source of retirement income.

Certainly, some people will abuse UBI and use it to live off the fat of the government. What’s important to recognize is that people already do this under the current system. Many people value their welfare wages plus their free time over the wages made from working. In the latter case, as aforementioned, working can make them net losers who no longer have any free time.

When it comes to considering whether UBI will make this problem worse, it appears unlikely. While some may dropout of the workforce, others may join. This can be an opportunity to help the most economically disadvantaged and bring about a respectable society.

Johnson’s Advocacy of Universal Basic Income is Good for America

People often deride libertarians for failing to take interest in the less fortunate. While the market truly is the tide that lifts all ships, some boats have holes through no fault of their own. Given the governmental structure we find ourselves in, instead of the one we wish we had, few options are available.

No monarchs exist to lay down libertarian law, and certain political realities must be accepted to fix the broken welfare state. Johnson realizes that even if he becomes president, he will not be able to throw millions of welfare recipients into the economy Obama has created without a life raft.

What Johnson can do is propose a system that can attract bipartisan support while making America more free. Not many such proposals exist, but UBI is one of them.

Maintaining and strengthening the protections for America’s most vulnerable satisfies Democrats. Cutting down bureaucracy and getting people to work can draw Republicans. Johnson understands that when applied correctly, UBI can improve lives. With the proper consideration, that’s something libertarians should support.

 

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