by Stanislas Jourdan | Oct 15, 2015 | News
The Finnish government has just taken a first step towards delivering on its promise to implement a basic income pilot during its term in office.
After committing itself to conducting a basic income pilot in Finland the Finnish government is putting words into action. Formed after the general election last Spring the new government of Finland led by the Centrist party announced in September the allocation of a grant to a group of researchers from the Finnish social security and pension department (KELA).
The group also includes researchers from the University of Tampere, the influential Institute for Economic Research and the independent think tank Tänk, which previously published its own proposal for a basic income pilot project. This working group is now in charge of designing parameters for the pilot project, which should be delivered by 2016.
Otto Lehto, President of BIEN-Finland told Basic Income News this week, “We welcome the creation of this working group and are happy that KELA, Tänk and researchers from the University of Tampere are involved in it. They are authoritative organisations with people that actually understand what basic income means.”
Strong and persistent popular support for basic income
KELA has already started to work on the topic of basic income with a series of articles and studies. In September, it conducted an opinion poll which showed 70% of Finns in favour of basic income, confirming the strong popular support witnessed in similar polls in 2002 and earlier this year. The poll also revealed that most people think a good level of basic income would be about 1000 euros a month.
The publication of KELA’s Annual Report provoked a debate in the Finnish Parliament about basic income, where even skeptics and opponents thought it would be a good idea to organise a pilot study.
This resonates with an editorial published on October 11 in the influential newspaper ‘Helsingin Sanomat’ which argued that “the basic income pilot study is a good idea” while carefully stressing the need for a pilot programme. The editorial also said that whatever difficulties basic income might have, it is important to study its effects, and that the Finnish welfare system is in desperate need of a complete overhaul.
The pilot should start in 2017
Despite a push by one member of the Center Party Jouni Ovaska, to start the pilot project by 2016, the two ministers responsible for the project, Hanna Mäntylä (True Finns party) and Anu Vehviläinen (Centre Party) stressed that the experiment should not be conducted hastily since nobody wants a badly executed study. The pilot program should therefore not start before 2017.
BIEN-Finland fully shares the government’s concerns. “A pilot project organised without sufficient planning and on a low budget would not be scientifically significant,” stressed Mr Lehto.
“The worst option would be a geographical study that takes place in one location only, since it would be susceptible to uncontrollable local variables. Ideally, we would want to study the effects of basic income on a wide variety of people in different circumstances and different locations. This means either having a proper randomized trial across the whole population, geographically dispersed across the whole country (as suggested by the Tänk/Sitra study last winter); or a regional pilot involving many different locations with different sociological, economic and demographic profiles.”
Mr Lehto concluded, “We put our hopes in the KELA-led team to produce a good plan that actually helps moves forward the discussion on basic income.”
Credit Picture © Finnish Parliament
by Stanislas Jourdan | Oct 3, 2015 | News
Last week (Sept 23rd 2015) the Swiss Parliament voted for a motion calling on the Swiss people to reject the Popular Initiative for Unconditional Basic Income.
Update: the date of the referendum has be set to 5th June 2016
After hours of debate, the National council (the lower house of the Federal Assembly of Switzerland) voted for a recommendation by the ruling party to reject the popular initiative for unconditional basic income after six hours of debate.
The motion was passed with a large majority (146 votes), with only a minority of 14 MPs supporting the initiative and 12 abstentions (see the detailed vote report here).
“The most dangerous and harmful initiative ever”
Basic income was opposed by all political groups, but the harshest critics came from the Centre and Right-wing parties. Sebastian Frehner (Centrist) described the initiative as “the most dangerous and harmful initiative that has ever been submitted,” mentioning the risks of immigration, disincentive to work, and that the basic income proposed would not be financeable anyway.
For similar reasons, the Liberal party spokesman Daniel Stolz described the initiative as “intellectually stimulating,” but that it is also a “cocked hand grenade that threatens to tear the whole system to pieces.” His party colleague Ausserrhoden Andrea Caroni spoke of basic income as a “bomb in the heart of our society and our economy.”
The most noticeable supporter of basic income was probably the Socialist MP Silvia Schenker who argued that basic income was the answer to the complexity and loopholes of the current welfare system and a better way to integrate the people “who have no place in the world of work.”
This was not enough however to convince the Greens and other Socialists. “The Greens support the objectives of the Popular Initiative for an Unconditional Basic Income, but as it stands, it endangers our social system,” said Christian van Singer, spokesperson for the Greens. He argued that while one goal of the initiative is to simplify the social system, “it could level down the benefit system to the detriment of those who do not find work or cannot work.”
Similarly, the Socialist MP Jean-Christophe Schwaab said he opposed basic income because it could be a pretext to dismantle the welfare system and reduce wages.
Politicians dismiss it, electors like it
Basic income campaigners just published a new book and distributed in front of the Parliament.
Ironically, while politicians were voting against basic income by a large majority, an online poll (Tagesanzeiger.ch) showed that 49% of the Swiss would vote in favour, while 43% are against it, and another 8% said it depends on the amount.
The general outcome of the six-hour session was not a surprise. The strong opposition to basic income followed a similar opinion from the Federal Council (the executive branch of government) which rejected the initiative in August 2014. Earlier this year the two relevant parliamentary committees on social affairs had also recommended opposition to the initiative. The Upper chamber of the Parliament will deliberate on the issue over the winter.
Under the Swiss Constitution, all citizens’ initiatives that collect more than 100,000 signatures get the right to have a referendum. However, this referendum only takes place after a series of official deliberations in the Federal Council and the National Council. In practice, this can allow the legislative power to immediately adopt into law proposed citizens’ initiatives if representatives agree with it, thus accelerating the process.
This vote is therefore not decisive, it is only a recommendation. Whatever the politicians decide, a nationwide referendum will be organised for 2016.
The Popular Initiative for Unconditional Basic Income was launched in March 2012 and successfully collected 125,000 signatures by October 2014.
“Politicians are afraid of the People”
Despite the unsuccessful vote in Parliament, “The debate was good for the idea and the movement for Basic Income,” wrote basic income campaigner Che Wagner in a column for the Swiss newspaper Tages Woches.
Wagner said the debate revealed how afraid politicians are of the people: “Among the political class, the fear has spread, a threat has been identified: they are afraid of the people of this country and their potential epidemic laziness. Until the referendum in Autumn 2016 we will find out whether and how much these dangerous people are afraid of themselves too.”
by Stanislas Jourdan | Sep 23, 2015 | News
Despite the large amount of the annual dividend for 2015, the future of Alaska’s small basic income is under political threats as the state suffers from a large deficit gap.
Confirming earlier forecasts, the amount of Alaska’s citizens’ dividend paid this year will be the highest ever paid (without inflation) since the first payment made in 1982.
Yet, perspectives for what is the closest policy to a universal basic income in the world today are not so shining. Because the Alaskan government is currently trying to cope with an historical budget deficit, various suggestions have been made on how to reduce the state’s deficit, some involving changes in the dividend mechanism, to make it less generous.
The citizens’ dividend is administered by the Alaska Permanent Fund Corporation which was established in 1976 by constitutional amendment.
The fund collects at least 25 percent of all the state’s mineral royalties and lease payments and invests its accumulated reserves in financial markets. The financial earnings are then distributed equally among all Alaskans as a citizens’ dividend.
The amount of the dividend however is based on a five-year rolling average of the financial earnings of the fund, which therefore no longer includes the recession years post-crisis. For this reason, low oil prices have plunged Alaska into a crippling budget deficit, but it hasn’t yet affected the size of the payout.
Thus, more than 644,000 Alaskan residents registered or born before December 31st 2014 will receive their dividend checks beginning on October 1st.
Political Threats on the Future of the Dividend
Despite what seems to be good news, Alaska is now in a paradoxical situation where the earnings from the Permanent Fund have exceeded the earnings from Alaska oil. This paradox has recently provoked a wave of attacks against the dividend, including from Alaska’s current governor, Bill Walker (Republican).
For the ceremonial announcement of the amount of the annual dividend, Walker deliberately chose to let a 12-year-old girl named Shania make the public announcement in order to send a signal that, according to him, the future of Alaska’s children are endangered by the unsustainability of the Fund.
https://vimeo.com/139986120
“We are paying out more in PFD checks than we are for the education of young Alaskans like Shania—at a time when we are struggling with a $3.5 billion deficit,” the Governor stressed in a statement to the press. “Alaskans need to know this is unsustainable. I’m confident Alaskans will pull together to find a solution, as we always do when times are tough.”
“It is time to have an open and honest conversation about our finances, and how resources like the Permanent Fund can be used as an asset. The vision of the Permanent Fund was to turn a nonrenewable resource into a renewable one, and it is our job to determine how to best use and protect that gift for the benefit of all Alaskans.”
A message that was also stressed by Lt. Governor Mallott (D), and Eric Wohlforth, both former members of the Fund’s Board of Trustees, in advance of upcoming debates on how to reform the Fund.
“The original purpose of the Permanent Fund was to save wealth for future generations of Alaskans. This is the people’s fund. In the months before the legislative session, groups will meet to talk about how we should manage our wealth. I urge all Alaskans to become informed investors, for their sake and for the sake of the next generation.” Eric Wohlforth said, thus making the threats against the Fund more precise than ever.
by Stanislas Jourdan | Aug 30, 2015 | News
72.3% of the the Catalan population would be in favor of a universal basic income of 650 euros per month, an opinion poll recently concluded.
While a clear majority (72.3%) support basic income, 20% of the participants said they rather disagreed with the proposal and 7.6% had no opinion. The concept of basic income was presented as “an income of 650€/month distributed to all the population as a right of citizenship, that would be financed by a fiscal reform that would imply a redistribution of income from the richest 20% to the rest of the people”.
The survey (pdf), based on answers from 1,600 people from Catalonia was conducted last July by the company Gesop for Red Renta Basica, the BIEN network in Spain.This survey confirms the growing support for basic income across the European population; similar surveys in France showed 60% support and in Finland 80%.
While all socioeconomic and demographic segments of the population showed a majority in support of implementing a universal basic income, the strongest support is found among Leftists (82%) and Centre-Leftists (73%) and the Right (64%). The weakest support for UBI is found among the Centre-Right (56.2%) and the Centre (62.7%).
High-income categories are also more reluctant to support the idea. As shown by the survey, nearly 30% of people who earn more than 1,500 euros a month are against the measure, versus 11.7% of those who earn less than 250 euros or 15.4% of those who earn less than 500.
The survey indicates that a clear majority of people (86.2%) would keep working as usual if they had a basic income, which clearly contradicts the usual critique that basic income would remove work incentives. Only 8% of the participants said they would work less, and 2.9% said they would stop working altogether.
People would keep working
Among workers who said they would work fewer hours or would leave their current occupation, 52.2% say they would dedicate the free time gained to their family, 16.3% would increase their leisure time, 11.5% would look for a better job, 11.3% would study. Another 4.7% would start a business and 4.1% would do more volunteering.
Regarding the unemployed, 84.4% said that nothing would change; they would keep looking for a job, while 11.4% would look for a part-time job. Only 2.2% would stop looking for a job.
Among the ‘inactive population’ (pensioners and students), 71.7% would not change their situation, while 14% would look for new activities on top of their current ones. 4.3% would leave their current occupation and focus on something else.
Credit picture CC Lutor44
by Stanislas Jourdan | Aug 10, 2015 | News
Well-known Austrian entrepreneur Josef Zotter believes basic income would empower innovation and relieve people from existential fears.
In a recent interview with the newspaper Der Standard, in which he was accompanied by the Finance Minister of Austria, the founder of the chocolate manufacturer Zotter expressed again his support for unconditional basic income.
With basic income, “people can rest and recover their freedom. Thus basic income would also unleash innovation.” and relieve people from their “existential fears.”
According to Zotter, an unconditional basic income would also solve the pension issue. “Then we no longer have to talk about whether someone retires with 62 or 65 years.” he said.
Asked on whether he supported the idea, the Conservative Austrian minister of finance, Hans Jörg Schelling, fiercely rejected Zotter’s basic income proposal: “Of course I’m against it. Most Austrians are highly satisfied with their jobs. Performance must be rewarded.” he said.
Like German entrepreneur and basic income supporter Götz Werner, Zotter suggests increasing taxes on consumption instead of other taxes in order to ensure international competitiveness of Austrian business.
Zotter had already expressed his support for basic income in the second edition of his biography, ‘Kopfstand mit frischen Fischen – Mein Weg aus der Krise’. Zotter, born in 1961, produces hand-scooped organic fair trade chocolate. The company currently employs 160 people in the city of Riegersburg.
With contribution from Christof Lammer
Credit picture: CC salzburger.land
