MONGOLIA: Thousands of protesters demand Alaska-style dividend (from 2010)

by Karl Widerquist | Apr 18, 2018 | Opinion, The Indepentarian

TEN YEARS OF THE U.S. BASIC INCOME GUARANTEE NETWORK (from 2010)

by Karl Widerquist | Apr 11, 2018 | Opinion, The Indepentarian

This essay was originally published in the USBIG NewsFlash in February 2010.

This issue, Volume 11, Number 55, marks the tenth anniversary of the USBIG Newsletter. The USBIG Network began over breakfast at the Kiev dinner in New York City in December 1999. Five people attended the first meeting: Fred Block (a sociologist at University of California-Davis), Charles M.A. Clark (an economist at St. John’s University), Michael A. Lewis (sociologist, then at State University of New York-Stony Brook, now at Hunter College), Pam Donavan (sociologist then at City University of New York-Graduate Center, now at Bloomsburg University) and me, Karl Widerquist (then an economist at the Levy Institute of Bard College, now a philosopher at Georgetown University-Qatar).

Pam Donovan, Michael A. Lewis, and I had been graduate students together at the City University of New York. We used to meet weekly to discuss our work. Usually, we ended up arguing about politics. One day we discovered that the one policy we could all agree on was the basic income, and so Michael Lewis and I decided to write a paper about it. We gradually got involved with the Basic Income European Network (BIEN), which had been providing a forum for dialogue on basic income in Europe. There were several natural networks in Europe at the time, but there was no equivalent in the United States. Through BIEN we got in touch with Fred Block and Charles M.A. Clark, who had both been doing research on basic income in the United States.

When Fred Block was in town for a conference, we all decided to meet for breakfast. There was no agenda or anything, but the next thing I knew we had decided to create a network, and I had volunteered to write its newsletter. Ten years later, I’m still writing that newsletter. It began with a circulation of about 30 people, including the five of us from the meeting. Since then it has grown to nearly a thousand people.

We called the new organization “the U.S. Basic Income Guarantee Network,” (The USBIG Network or just USBIG for short). We chose that name partly because “basic income guarantee” (BIG) as a generic term that includes various specific versions, such as “basic income,” “negative income tax,” and “guaranteed income.” Also, it makes a nice acronym and the domain name www.usbig.net was available. We took on only one goal: to increase discussion of the basic income guarantee in the United States.

We started the network with a small seminar series in New York City in 2000, and in 2002 we began holding yearly conferences. We are now preparing for our ninth conference, which will be our first joint conference with the new Canadian basic income network, known as BIEN Canada.

Over the last ten years, interest in the basic income guarantee has grown steadily around the world. The Basic Income European Network expanded to become the Basic Income Earth Network, and USBIG became one of its first non-European affiliates. More books and articles on BIG are published each year. Basic Income Studies has become the first academic journal focusing entirely on basic income. Palgrave-MacMillan is now preparing an entire book series on BIG. The first books in the series are expected to be released in 2011 or 2012.

The USBIG Network has chosen to remain a nonpartisan discussion group, but there are political action groups in the United States that are pushing for basic income as part of their agenda.

BIG occasionally springs up as a live political issue in surprising places. The only existing BIG in the world, the Alaska Permanent Fund Dividend, continues to be an enormously popular policy. Two members of the U.S. House of representatives signed on to the idea in 2006; several other members of Congress have endorsed it in roundabout ways—by endorsing a cap-and-dividend or an oil dividend for Iraq. There are senators pushing for it in Canada and Brazil. More than two-dozen members of the German Bundestag are committed to the idea. A Namibian organization has just completed a two-year pilot project on BIG. And so on. And so on.

Writing the USBIG Newsletter has been an interesting experiment. At first I didn’t think there could possibly be enough news about BIG to report in regular issues, but instead I quickly became overwhelmed by how much activity is going on in the world. Somehow, I’ve managed to condense a significant portion of it into the Newsletter. Thanks to the miracle of the internet I’ve been able to work on the USBIG newsletter in New York; New Orleans; England; the far north of Sweden; Hong Kong; Brazil; Qatar; and I can’t even remember where else.

On the whole I think I’ve kept my reporting accurate, but I can recall a few embarrassing errors—such as the time I identified a British MP as being from Australia. I’ve enjoyed reporting on the progress of BIG movements around the world. I’ve enjoyed meeting all the interesting who work on this issue. I’ve suffered through writing obituaries for friends I’ve gotten to know in the movement.

I hope when I look back ten years from now, I’ll remember reporting on the introduction of the world’s second basic income guarantee, somewhere in the world.
-Karl Widerquist, in flight over the Atlantic, February 24, 2010 (revised, March 15, 2010, Doha, Qatar)

SMALL VICTORIES (from 2009)

by Karl Widerquist | Apr 4, 2018 | Opinion, The Indepentarian

This essay was originally published in the USBIG NewsFlash in November 2009.

The political barriers to the current situation in the United States and the implementation of a full basic income are daunting. On an international basis, the outlook is much brighter. As far as I can tell, there are more basic income projects underway or under discussion worldwide now than ever before. There are small, privately funded pilot projects going on in Namibia and Brazil. Thirty basic income supporters were elected to the German Bundestag in recent elections. The Nigerian government is considering a regional basic income in the Niger Delta area. The Mongolian government has recently pledged to introduce the world’s first national basic income. (See stories below.)

Just last week, October 29, 2009, I had the honor to be present when the city council of Santo Antonio do Pinhal, Brazil (a city of about 7,000 people in the State of Sao Paulo) voted unanimously to create a small basic income from local tourist revenue. What will come of this small, locally based income remains to be seen. But remember that the Alaska oil dividend was inspired by a local basic income introduced in a small town. And the Alaska dividend may prove to be an inspiration for similar programs in places as far away as Mongolia and Nigeria.

So, progress is happening worldwide. In America, however, it is important to focus on small victories. Politics is full of opportunities to change minds toward the ways of thinking that support basic income.

Two of the most compelling reasons to support basic income are the belief that people have an equal right to the world’s resources and the belief that everyone should have the right to meet their needs. Any policy that helps establish these norms moves us (however gradually) in the direction of basic income.

People don’t discover oil every day, but some kind of new government giveaway of natural resources does happen just about every day. Every new mine, well, or beach front hotel is an opportunity to establish the norm that people have a shared right to natural resources, and that they should be compensated if private firms want to privatize it.

Two years ago we missed an opportunity when the U.S. government gave away a substantial portion of the broadcast spectrum to a few corporations at no charge; and then allowed those companies to sell it back to us. But the issue isn’t settled. A recent study by the Consumer Electronics Association found that reallocating broadcast spectrum could yield cost savings of more than 1 trillion dollars. If and when that reallocation happens, we have the opportunity to press for auctioning off that spectrum and sharing the proceeds.

Several BIG-related campaigns are under way right now. The refundable child tax credit was won a few years ago. It is essentially a very small basic income for children, but only a portion of the federal government’s child tax credits are refundable. Several groups are pushing for a larger refundable credit. The cap-and-dividend approach to greenhouse gas reduction would establish a small basic income out of taxes designed to discourage the behavior that causes global warming (www.capanddividend.org). Cap-and-Dividend is a live issue on Capitol Hill, and several Members of Congress have signed on.

Probably the biggest issue in U.S. politics right now is healthcare reform. The current debate is largely a debate over whether there should be a universal right of access to healthcare. Almost every other country has established that right in law, and the United States might finally join them this year. The versions of healthcare reform on the table right now are not as close to true universality as the healthcare systems exist in most other countries, but they clearly help to establish the norm that healthcare ought to be universal.

Once norms like this are established in law, they tend to become more popular. Although the creation of national health was controversial in many countries, I don’t believe that there is any country in the world that has the universal right to healthcare in which a majority of people would like to go back to a system in which some have health insurance and some don’t. Public education is far from equal, but few people today want to deny a basic education to the children of the poor as most countries did a hundred years ago.

Establishing a universal right to healthcare is not the same as establishing the norm that all people should have an unconditional right to other necessities, but it certainly brings us closer to that objective. The fight for universal healthcare is our fight.

-Karl Widerquist,
Begun in Santo Antonio do Pinhal, Brazil, October 29, 2009
Completed in Doha, Qatar, November 4, 2009

U.S. SENATOR INTRODUCES A BILL TO IMPLEMENT BIG IN IRAQ (from 2009)

by Karl Widerquist | Mar 28, 2018 | Opinion, The Indepentarian

This essay was originally published in the USBIG NewsFlash in September 2009.

Many people believe that the Alaska Permanent Fund Dividend is an idea ready to export—a model that should be copied around the world. Two U.S. Senators have gotten the idea that the Alaska model is ready to be copied, not by the country over which the U.S. Senate has jurisdiction but by Iraq instead.

Last January, John Ensign (Republican-Nevada) introduced the “Support for Iraq Oil Trust Act” of 2009. According to the official summary of the bill, it would force the U.S. State Department to present a plan for an oil trust fund (based on the Alaska model) to the Iraqi government, and it threatens to reduce U.S. aid to Iraq if the U.S. Secretary of State fails to do so.

The bill picked up one cosponsor, Senator Evan Bayh (Democrat-Indiana). No further action has been taken on the bill since it was referred to committee in January, and probably the bill will die in committee.

But the bill has received negative attention from press in the Persian Gulf region. Saadallah Fathi, writing for GulfNews.com (based in Dubai) sees the bill as an effort to pressure the Iraqi government to adopt a policy that is not well-suited for Iraq’s situation.

Whatever the value the Alaska model might have for Iraq, this bill is probably the wrong way to export the idea. The U.S. government could make a greater effort to lead by example. If the Alaska Permanent Fund is a model to be copied, the Senate might consider copying the model itself by creating a Federal U.S. Permanent Fund. Copying the model yourself seems much more reasonable than trying to influence someone else (a sovereign foreign government) to copy the model.

The United States is resource-rich. It has the potential to create a very large Alaska-style fund using taxes on resource exploitation, such as mining, drilling, forestry, carbon emissions, and real estate. If the senators are right that the Alaska-model is ready to be copied, they might consider implementing it first in their own jurisdiction.

-Karl Widerquist, Doha, Qatar, August 2009

For Saadallah Fathi’s article in the Gulf News, go to:
https://www.gulfnews.com/business/Comment_and_Analysis/10322760.html

THE ECONOMIC LESSON OF 1938 (from 2009)

by Karl Widerquist | Mar 21, 2018 | Opinion, The Indepentarian

This essay was originally published in the USBIG NewsFlash in August 2009.

If I use the phrase “lesson of 1938,” most people will probably think about Britain’s unsuccessful attempt to avoid war with Nazi Germany by giving away a piece of Czechoslovakia. There are important lessons in that event, but that’s not what I want to talk about.

1938 was also an important year in American economic history, and the economic lesson of that year is relevant to our handling of the global recession today. By 1937, the Great Depression had been going on for eight years. Franklin Roosevelt’s New Deal programs had been stimulating the economy for five years, and they began to show significant signs of working. Industrial production and national income were coming back up. Employment was going back down. The economy appeared to be just about out of the depression—

—and then—

Roosevelt and Congress decided to balance the budget. They raised taxes. They reduced government spending. They contracted the money supply and helped send the economy back into depression by 1938, and it remained in recession for three more years. Unemployment was still 10 percent when the United States entered World War II at the end of 1941. At that point, the government started spending massive amounts of money. They worried less about the budget deficit and more about spending what it takes to do the job. The depression disappeared almost overnight.

The economic lesson of 1938 is that the government cannot balance the budget during a major recession—even in the early stages of recovery. A depressed economy needs a stimulus. Although politicians usually won’t say it out loud, a stimulus often requires not only spending but deficit spending. One of the things that turn a financial crisis into a recession is that people and businesses stop spending in a reinforcing cycle. They can’t afford to spend because they’re not making money. They’re not making money because no one else is spending. Only the government has the size and budget flexibility to break the cycle. In a financial recession, concern for the government’s budget deficit can wait.

The government can get away with deficit spending because the government budget doesn’t work like an individual’s budget or even a corporation’s budget. Government creates the money supply; its spending is not limited to what it takes in or what it can borrow. If you or I spend more than we can get, we will go broke. The government doesn’t have to “get” money. It creates money. If the government creates too much money at any given time, it will overstimulate the economy and create inflation. If inflation becomes a problem, we can take action, by say, taxing some of that money back, but for now it is not a major concern. At a time like this, when resources are going unused because no one’s buying, the government as a lot of leeway to create and spend money without worry of inflation.

We should be more concerned with making sure that the direct beneficiaries of government stimulus are the people most in need. Too often the government stimulates the economy by helping corporations (such as investment banks, automobile manufacturers, and defense contractors), telling us that the stimulus will indirectly make its way to help those who actually need help.

A more effective way to stimulate the economy and help people is with universal programs. Universal healthcare or a universal basic income guarantee would be excellent ways to do so.
-Karl Widerquist, Doha, Qatar August 9, 2009