by Sara Bizarro | Oct 27, 2017 | Research
Researchers Krist Vaesen from the Netherlands and Joel Katzav from Australia, have published a paper in Plos One where they analyze what would happen if research money was equally distributed among researchers without the need for grant applications. The paper discusses the results of such a policy in the United States, Netherlands, and the United States. This paper was then discussed by Times Higher Education writer David Mathews who published an article discussing the idea that Basic Income could be a better option than writing research grants for academics. The Times Higher Education is a leading company that uses data to create University Rankings. They also publish academic articles and book reviews with the highest standards.
Joel Katzav and Krist Vaesen
According to the paper, if money was distributed by all researchers, each would be entitled to a stipend of 600,000 dollars every five years in the United States and 500,000 in the Netherlands. In the UK the five-year stipend would be lower, around 364,000 dollars, which would limit the possibility of hiring post-doc students and fund equipment and could lead to a dilution of resources. However, in order to fund projects, researchers could pull their funds together. These stipends are on top of researchers’ salaries and would be used for the projects, hiring postdocs and Ph.D. students, as well as traveling and purchasing equipment.
Giving a Basic Income Research Grant to all researchers would eliminate the need for endless grant proposals, saving researchers a lot of wasted time and resources, since the writing of grants has become an industry and is now often done by specialized companies that charge for their services. This equal distribution could also eliminate gender and ethnic bias. Furthermore, there could be “higher” Basic Income Research Grants in areas where research projects are more expensive to run or that are deemed to have higher social value, such as cancer research. Researchers would be able to negotiate larger projects by pulling their grants together with all researchers at an equal footing. According to the Times Higher Education, the paper claims that the current competitive system would only make sense if those who “win” perform “extraordinarily” above average to compensate for all the wasted time and resources, which may not be the case. The paper shows that this method of distribution would not dilute funds and could be functional, while still having some transformative results in academic research.
by Furui Cheng | Oct 14, 2017 | News, Research
Jay Hammond
Jay Sterner Hammond (July 21, 1922 – August 2, 2005) was an American politician of the Republican Party who served as the fourth Governor of Alaska from 1974 to 1982. Hammond was born in Troy, New York and served as a Marine Corps fighter pilot in World War II with the Black Sheep Squadron. In 1946, he moved to Alaska where he worked as a bush pilot. Hammond served as a state representative from 1959 to 1965 and as a state senator from 1967 to 1973. From 1972 until 1974 he was the mayor of the Bristol Bay Borough. In 1974 he was elected governor of Alaska. He oversaw the creation of the Alaska Permanent Fund in 1976, which, since the early 1980s, has paid annual dividends to Alaska residents. From 1985 to 1992 he hosted a television series called Jay Hammond’s Alaska. He wrote three autobiographies. This article is a short introduction of his last book.
Petroleum is the devil’s excrement, warns Juan Pablo Pérez Alfonso, a Venezuelan founder of OPEC. Waste, corruption, consumption, and failing public services are repeated curses in oil rich countries. But Alaska managed to avoid much of the befouling of “devil’s excrement” by actions that served to at least halfway pin on a “diaper.”
Article 8, Section 8, of Alaska’s constitution states: “The legislature shall provide for the utilization, development, and conservation of all natural resources belonging to the state, including land and waters, for the maximum benefit of its people.” This clause prompted Hammond to attempt to assure that all Alaskans received a discernible share of those benefits and to avoid the common past practice of selectively benefiting the favored few at the expense of the many. This battle to avoid selective benefit still continues today.
Before the permanent fund dividend, Hammond had tried several ways to comply with the mandate of the aforementioned constitution, but all fell flat. His first attempt was to abolish fish traps in the Bristol Bay Borough in 1965. A whopping 97 percent of the fishing payday made within the boundary went to others and local residents got but a paltry 3 percent! He proposed a use tax to be paid by all fishermen on their catch. To offset the impact on local fishermen already paying high property taxes, he proposed to putting tax money into a conservatively managed investment account, then each year issuing residents one new share of dividend-earning stock. He called the concept “Bristol Bay, Inc.” The word “tax” made most Alaskans oppose it.
With passage of the Alaska Native Claim Settlement Act (ANCSA) in 1971, Alaska’s aboriginal peoples were accorded 44 million acres of land and $900 million by the U.S. Congress. Hammond proposed again to follow the Bristol Bay, Inc. model to manage ANSCA grants: create a conservatively managed investment account and spin off equal dividends to every Alaska Native. This account was proposed to be managed by professionals under counsel supplied from an elected advisory board of Natives representing every Native group in Alaska. People would have the opportunity to lift themselves up by being stockholders, providing themselves with the means (along with the responsibility) to use it for their collective best interests. Hammond’s proposal failed in the face of obstructions by lawyers, financially and politically powerful Natives, and other local forces.
His third attempt was to assure that the more affluent rural areas with a sufficient tax base help fund government services the same way as urban centers are required to do. Under his proposed statewide property tax, affluent municipalities, such as the North Slope Borough with high oil property values, would have to assume more of their local government service costs than would those that were virtually destitute. That proposal also fell flat on its face. Unfortunately, inequitable taxation continues to contribute to Alaska’s urban/rural divide.
In another effort to reduce crippling costs of services to hundreds of economically unviable communities – many of which were not connected by roads and lacked adequate housing, schooling, and basic services – he proposed to provide population centers with the greatest economic potential with topnotch schools and other services as a means to encourage migration from other communities. Once again the proposal fell flat.
After becoming governor in 1974, he proposed that 50 percent of all mineral leases, bonuses, royalties, and severance taxes be deposited into a conservatively managed investment account. Each year one-half of the account’s earnings would be dispersed among Alaskan residents, each of whom would receive, annually, one share of dividend-earning stock. The other half of the earnings could be used for essential government services.
Hammond had many reasons for creating such an investment account to which all Alaskans would be shareholders:
- To encourage contributions into the investment account and to protect against its invasion by politicians.
- To transform oil wells pumping oil for a finite period into money wells pumping money for infinity.
- To pit collective greed against selective greed.
- To eliminate the magnetic attraction for others from elsewhere who might otherwise be inclined to flock to Alaska in order to get big money in a short term.
- To instill a sense of ownership in all Alaskans that would incline them to support healthy resource development and resist unhealthy versions that would damage the environment or otherwise.
- To eliminate controversial state expenditures for such things as abortions or family planning. Individuals wishing for these services could pay for it from their dividends or utilize free ultrasound or abortion assessment services.
To promote these concepts, fashioned after his failed Bristol Bay, Inc. proposal, Hammond created “The Alaska Public Forum”. Fortunately, this attitude came in the wake of a $900 million windfall in 1970 from leases issued in Prudhoe Bay which had been “blown” in the eyes of many people. To their credit, however, a sufficient number
of legislators were successful in passing legislation creating what they termed “The Alaska Permanent Fund.” This statute at least created a semblance of Alaska, Inc., but fell far short of what Hammond had hoped for.
For more detailed information about the book, please click here.
Many thanks for Russell Ingram’s reviewing and editing.
by Peter Vandevanter | Oct 13, 2017 | News, Research
Congressional Quarterly (CQ) has published a research paper on basic income (BI) that explains its universal popularity due to automation growth estimates worldwide. The CQ Researcher covers everything from Scott Santens’ crowdfunded self-financing mechanism to U.S. ex-President Obama’s belief that the debate may last 10 to 20 years.
The 21-page research paper, written by London freelancer Sara Glazer, includes an explanation of the Alaska Permanent Fund Dividend (PFD) – a basic income like payment to all residents – and revels in the prediction of automation worldwide. Predicted percentage of job losses are shown in charts for 8 countries, as well as for the Organization for Economic Co-operation and Development (OECD) (made up of 21 countries).
BI appeal to the political Left is explained as the continuation of a welfare state. Its appeal to the political Right is explained as a libertarian limit on government intrusion and cost. However, the research warns that many people believe the poor may be worse off: “Some anti-poverty advocates say a UBI would increase both poverty and inequality by using welfare funds now spent on the poorest two-fifths of the population to provide cash to people of all income levels“.
The report also mentions the current endorsement of Facebook co-founder Mark Zuckerberg, as well as other Silicon Valley entrepreneurs like Chris Hughes. Moreover, references are made to the 1960s precedent of U.S. President Lyndon Johnson’s instituted War on Poverty as well as U.S. President Richard Nixon un-instituted 1970s negative income tax credit. This latter issue has been today resurrected by Congressman Ro Khanna, by his proposed bill for extending the earned income tax credit for the poor.
The Canadian 1970s experiment, called Mincome, is described as a positive pilot project, acting as a precedent for current basic income pilot projects in Finland, the U.S. (California ), Canada (Ontario ), Spain (Barcelona), Africa (Give Directly) and the Netherlands. In this report Karl Widerquist says that, with a BI, people will be allowed without fear to work the way they feel best. In an opposite viewpoint, Pavlina Tcherneva argues that a Job Guarantee program would be a better, less costly, way to make sure everyone had work they cared for.
More information at:
David Wheeler, “What if everybody didn’t have to work to get paid?”, The Atlantic, May 18th 2015
Chris Weller, “President Obama: We’ll be debating unconditional free money over the next 10 or 20 years” Business Insider, October 12th 2016
Kate McFarland, “SPAIN: Barcelona prepares study of Guaranteed Minimum Income”, Basic Income News, February 26th 2017
Peter Vandevanter, “United States: Ro Khanna introduces EITC bill, garners comparison to BI”, Basic Income News, October 2nd 2017
Kate McFarland , “THE NETHERLANDS: Government authorizes social assistance experiments in first five municipalities”, Basic Income News, July 11th 2017
Ashley Blackwell, “KENYA: GiveDirectly’s Guaranteed Monthly Income Expands to 200 Villages Fall 2017”, Basic Income News, September 10th 2017
Kate McFarland, “FINLAND: First Basic Income payments sent to experiment participants”, Basic Income News, January 12th 2017
Peter Vandevanter, “United States: Ro Khanna introduces EITC bill, garners comparison to BI”, Basic Income News, October 2nd 2017
Ashley Blackwell, “KENYA: GiveDirectly’s Guaranteed Monthly Income Expands to 200 Villages Fall 2017”, Basic Income News, September 10th 2017
Kate McFarland, “FINLAND: First Basic Income payments sent to experiment participants”, Basic Income News, January 12th 2017
by Kate McFarland | Sep 27, 2017 | Research
The Institute for Policy Research (IPR) at the University of Bath has released a policy brief titled “Assessing the Case for a Universal Basic Income in the UK”.
The 94-page policy brief surveys the rise in popularity of the idea of universal basic income (UBI), especially in the UK context, and examines its feasibility and possible implementation strategies.
The report’s author, IRP Research Associate Luke Martinelli, draws upon his previous microsimulation studies, including “The Fiscal and Distributional Implications of Alternative Universal Basic Income Schemes in the UK” (March 2017) and “Exploring the Distributional and Work Incentive Effects of Plausible Illustrative Basic Income Schemes” (May 2017). He supplements his own work with the simulation analyses of other researchers, including Malcolm Torry (Citizen’s Income Trust) and Howard Reed and Stewart Lansley (Compass) in the UK and Olli Kangas (Kela) in Finland. Martinelli argues that microsimulation techniques, which can be used to model the economic effects of UBI at a national level, allow researchers to address questions about the feasibility and desirability of UBI that are out-of-reach by “real-world” experiment–given that the latter “do not test for the crucial effects of accompanying tax changes, nor examine how changes in income and behavioural responses would be distributed across different demographic groups in the case of a truly universal payment” (p 16).
In Chapter 3 of the policy brief, Martinelli applies these simulation studies to the question of the affordability of UBI. Investigating both full and partial UBI schemes, Martinelli investigates the fiscal implications of the policy for the UK government, taking into account potential adjustments to the existing tax and benefit system, as well as their consequences for poverty and inequality. Overall, Martinelli finds that data “appear to suggest” that “it is possible to design a UBI such that it is both affordable and adequate” (emphasis in original), with the most feasible option being a partial UBI on top of existing means-tested benefits (p 48). However, he issues several notes of caution in interpreting this (apparent) consequence.
One cautionary note concerns the fact that the simulation studies use only static models, which do not provide for possible changes in labor market participation resulting from the introduction of UBI. In Chapter 4, however, Martinelli examines the labor market effects of UBI in detail, again drawing upon simulation studies. Here, he considers the results of studies that model the impact of UBI schemes on financial work incentives, concluding that UBI does significantly improve incentives, especially for low-income groups and recipients of means-tested benefits (although, as the author admits, monetary incentives are “by no means the only factor affecting labour supply decisions,” p 63). In this chapter, Martinelli supplements the simulation analysis with empirical findings from previous experiments on unconditional cash benefits (including, especially, from the negative income tax experiments conducted in Manitoba in the late 1970s). He also reviews a range of theoretical considerations, including the prima facie tension between the positions of UBI supporters who see the policy as a way of incentivizing employment (e.g. as contrasted to means-tested benefit schemes) and those who advocate the policy as providing an “exit option” from employment.
In the final chapter of the policy brief, Martinelli scrutinizes implementational challenges facing UBI in the UK, including complications building political coalitions around the idea. As Martinelli stresses, apparent political consensus around UBI is likely to dissolve when specific policy implementations are issue. In concluding the report, he urges supporters of UBI not to demand a full basic income immediately, but instead to consider an incremental approach. As potential first steps, Martinelli mentioned a small universal payment (“partial basic income”) or a basic income restricted to certain age groups (e.g., as suggested by Malcolm Torry, young adults or adults nearing pension age).
The full report can be downloaded here:
Luke Martinelli, “Assessing the Case for a Universal Basic Income in the UK”, Institute for Policy Research, September 2017.
Reviewed by Russell Ingram
Photo (Bath, England) CC BY-NC-ND 2.0 David McKelvey
by Kate McFarland | Sep 25, 2017 | Research
Cairn’s Monthly Dossiers is a free online publication designed to highlight the work of francophone scholars in the social sciences and humanities. Each month, the publication focuses on a topic of current social or political relevance.
Universal Basic Income (UBI) was the topic selected for the debut issue, released on June 15, 2017. As the introduction to the dossier notes, the issue came to prominence in France earlier in the year due the campaign of presidential candidate Benoît Hamon, who won the Socialist Party primary after making a UBI proposal a cornerstone of his campaign.
The dossier features the work of Stéphan Lipiansky, Jean-Éric Hyafil, Denis Clerc and François Meunier.
Lipiansky, an associate professor of economics and management, examines the rise of interest in UBI in Europe during the 1970s and 1980s, linking it to the decay of a “social consensus” around the goal of full employment. He emphasizes UBI’s potential role in a cultural shift in which occupational identity is no longer the key defining attribute of an individual’s social role.
Hyafil, a leader of the French BIEN affiliate Mouvement Français pour un Revenu de Base, presents UBI as a means to emancipate individuals from the need to work (in view of the fact that, in present society, the pressure to work leads to the creation of and participation in “bullshit jobs” of little or no social utility). In his article, he delineates a UBI proposal for France, and describes a path to introducing the policy through a series of reforms to the revenu de solidarité active (RSA), the country’s existing minimum income scheme for the poor and unemployed (currently €460 per month).
Clerc, the founder of Alternatives Économiques, considers UBI proposals of three different monthly amounts–€100, €460 (equivalent to the RSA), and €800 (equivalent to the minimum pension)–and argues that any potential benefits are too uncertain to merit the risks and certain costs of implementing the policy. As an alternative social policy, he proposes lifelong training to increase individuals’ employability.
Meunier, an economist and consultant, takes on two arguments commonly given for UBI: that it is more respectful to recipients due to its lack of surveillance and paternalism, and that it is easier to administer due to its simplicity. Meunier contends that conditional welfare is not objectionable in its level of oversight–which might be construed as the expression of care for beneficiaries–and that the simplicity is illusory.
The dossier also includes links to supplemental material (in French) by Anton Monti (on the Finnish experiment), Philippe Warin (on the phenomenon of non-usage of the RSA and its implications for UBI), and Yannick Vanderborght and Philippe Van Parijs (on the history of the idea of UBI and its differences from programs like the RSA).
The second issue of Cairn’s Monthly Dossiers was on the topic of Populism.
Parisian café photo CC BY-NC-ND 2.0 Jeff Dzadon
by Kate McFarland | Sep 21, 2017 | Research
Matt Wilder, doctoral candidate in Political Science at the University of Toronto, won first place in the 2016 Progressive Economics Forum (PEF) graduate student essay contest with his paper “Debating Unconditional Basic Income”.
A revised version of Wilder’s award-winning paper has recently been published in the Canadian Journal of Political Science.
Abstract:
Much of the literature on unconditional basic income considers reciprocity to be necessary for its success. From a normative standpoint, receiving without giving is unjust. From a technical standpoint, the absence of mechanisms that promote reciprocation invites free riding which threatens to erode the economic structure upon which the system of distribution depends. As a solution, it has been proposed that communities adopt social norms that encourage basic income recipients to contribute to the productive capacity of society by engaging in volunteer work. This article interrogates whether this alternative to conditionality is consistent with the rationale for implementing unconditional basic income and finds the instillation of stronger norms to be unnecessary for the project’s success.
Wilder uses data from the World Values Survey to establish his claim that stronger social norms are unnecessary to reduce the threat of freeriding, arguing that individuals with income security are already inclined to act altruistically.
The PEF student essay contest is open to all Canadian students, with separate competitions for graduate and undergraduate students. The graduate competition carries a $1000 cash award for the first prize.
Wilder also won the 2014 PEF graduate student essay contest for “Internationalization and Variable Confluence in State-Assisted Economic Sectors: Lessons from Canada’s Experience Under Free Trade”.
Reviewed by Caroline Pearce
Photo: Soup kitchen in Montreal, CC BY 2.0 Gerry Lauzon
