AUSTRIA: Friedrich Schneider, Professor of Economics in Linz (Austria), proposes field trial of UBI

AUSTRIA: Friedrich Schneider, Professor of Economics in Linz (Austria), proposes field trial of UBI

Friedrich Schneider, Professor of Economics in Linz (Austria), has presented a study on a potential Unconditional Basic Income in Austria. The study was initiated by the IWS Upper Austria (Initiative Standort Oberösterreich), an association that aims to promote Upper Austria as a base for companies. In this study, he discusses different models, based on literature studies. The models include adoptions of the proposed version in the Swiss referendum last year and one of the non-government organization Attac. Others include the basic income proposals of Götz Werner, Thomas Straubhaar and the German political parties Arbeitsgruppe 90/Grüne, CDU and Die Linke.

 

It is vital for Schneider, according to the Austria Press Agency (APA), on which designs and financing concepts the models are based on. Relevant distribution and incentive effects as well as the situation of the labour market are also important factors for the outcome.

 

In addition, Schneider proposes a field trial of an Unconditional Basic Income for Austria. According to Schneider, 1,500 people should participate in this Austria-wide field trial for several years, which should start as soon as possible. When results are available, the Austrian parliament should decide about its implementation. There should also be a public referendum on the question whether an UBI should be implemented. Schneider believes that a 2/3 majority should be required, rather than the mere 50% majority, since the idea means an “elemental interference” in everyone’s life. Furthermore, implementing a basic income would require transition regulations for the pension, for instance, and a prevention of immigration from East- and South Europe in case these countries don’t also introduce an Unconditional Basic Income.

 

 

 

More information at (only available in German):

Linzer Uniprofessor Schneider will Feldversuch für ‘Grundeinkommen’“, APA, May 5th 2017.

 

Link to the study:

Friedrich Schneider, Elisabeth Dreer, “GRUNDEINKOMMEN IN ÖSTERREICH?”“, Johannes Kepler Universität Linz, February 2017.

 

Summary of the study:

Friedrich Schneider, Elisabeth Dreer, “Zusammenfassung – GRUNDEINKOMMEN IN ÖSTERREICH?”“, Johannes Kepler Universität Linz, February 2017.

John Russo: “Universal Basic Income: a “social vaccine” for technological displacement?”

John Russo: “Universal Basic Income: a “social vaccine” for technological displacement?”

In the 1970s and 80s, as tens of thousands of American industrial workers were losing their jobs as corporations moved their factories in search of cheaper labor, economists argued that this was part of a process of “creative destruction” that would ultimately bring new opportunities. In reality, the working class never fully recovered. The same pattern is being repeated today as working- and middle-class people lose jobs to technology. As John Russo writes in this week’s Working-Class Perspectives, some of the tech leaders whose innovations contribute to the problem are also testing possible solutions, including the idea of a universal basic income. Governments are debating the idea, and, Russo suggests, these experiments and discussions may lay the foundation for new social policies for a future without good jobs.

More information at:

John Russo, “Universal basic income: a “social vaccine” for technological displacement?“, Working-class Perspectives (blog), April 17th 2017

Gwynne Dyer: “Universal Basic Income — could it work?”

Gwynne Dyer: “Universal Basic Income — could it work?”

In his piece “Universal Basic Income – could it work?”, Gwynne Dyer writes that current populism fails to realize the extent of automation. Promises like “bring the jobs back” and a full-employment economy ignore the extent of automation in technology. Automation of work is expected to increase over the next twenty years and the author believes this change will negatively influence democratic processes and economic structures. As such, the author believes the latter causes the right wing to think about UBI as a way to provide a potential solution to current problems in economic models. However, it is unclear how the author connects these events.

The author questions: why give funds unconditionally, from where does the money come, and would people still work? These questions are important for each political party to evaluate. In addition, the author cites pilot studies in Canada, the Netherlands, and Finland that aim to develop evidence and understanding of UBI impacts. He believes the results of studies will be useful to developing the conversation around UBI.

More information at:
Gwynne Dyer, “Universal Basic Income – could it work?“, The Telegram, February 18th 2017.