by Josh Martin | Oct 26, 2015 | News, Research
New research from economists at Hallym University in Chuncheon and Korea University in Seoul found that Alaska’s Permanent Fund Dividend has helped increase birth weights for Alaska newborns. According to the study, from 1978 to 1984, the dividend cash transfer increased weight by 34.8 grams (1.23 ounces) and reduces the likelihood of low birth weight by 14 percent when comparing to other states during the same period. Some Alaskan economists and pediatricians have raised doubts over the study, however, claiming that the study coincides with a time of big social and economic change in Alaska and thus the improvement must not be attributed solely to the Permanent Fund Dividend. Regardless, this study produces further arguments for the benefits of unconditional cash transfers like a basic income or the Permanent Fund Dividend.
For more background read the following link:
Yereth Rosen, “Does the PFD make babies bigger?”, Alaska Dispatch News, 10 October 2015.
The study itself can be found here:
Wankyo Chung, Hyungserk Ha, and Beomsoo Kim, “Money Transfer and Birth Weight: Evidence from the Alaska Permanent Fund Dividend”, Economic Inquiry, 23 June 2015.
by Karl Widerquist | Oct 13, 2015 | Research
David Casassas
Abstract:
Europe is experiencing rapidly accelerating poverty and social exclusion, following half a decade of financial crisis and austerity politics. The key problem behind Europe’s malaise, in our view, is the economic disenfranchisement of large parts of its population in the winner-takes-all-society. This article proposes that we examine the contribution of republican political theory as a distinctive approach that provides us with the conceptual and normative resources to reclaim what we call the political economy of democracy, the constellation of political and economic institutions aimed at promoting broad economic sovereignty and individuals’ capacities to govern their own lives. This article identifies three key ideas that together constitute a distinctively republican approach to political economy: (1) establish an economic floor; (2) impose an economic ceiling to counter excess economic inequality; and (3) democratize the governance and regulation of the main economic institutions.
David Casassas and Jurgen De Wispelaere “Republicanism and the political economy of democracy.” European Journal of Social Theory Volume 18, no. 4, 2015
Jurgen De Wispelaere
by Karl Widerquist | Oct 4, 2015 | Research
ABSTRACT: Namibia is still characterised by deep socio-economic inequalities, as economic structures have remained largely intact after independence. Poverty is still widespread and unemployment has remained high with women and youth being particularly affected. In 2002, the Namibian government’s Tax Commission proposed a universal cash grant as the most effective way to fight poverty and to reduce inequality. In 2004, the Basic Income Grant (BIG) Coalition was formed consisting of churches, trade unions and non-governmental organisations (NGOs) in support of the proposed grant. It implemented a pilot project to practically demonstrate the effects of the grant. The chosen location was the village of Otjivero where each inhabitant received a monthly cash grant of N$100 (US$9)beginning in January 2008. A research team closely monitored developments and found that within one year the rates of poverty, child malnutrition and school drop-outs had fallen significantly. Economic activities increased, school results and residents’ health status improved while the crime rate and women’s economic dependency on men were reduced. Despite these results, the Namibian government did not implement the BIG and the coalition failed to ignite a mass campaign. The country’s largest trade union federation did not play an active role and its leadership withdrew from the coalition despite support for the BIG among union members. The introduction of a BIG in Namibia will depend on the ability to the BIG coalition to create pressure ‘from below’. Trade unions and youth organisations in particular will have to mobilise their membership and present the demand for the BIG as a form of economic justice. In terms of financial and economic resources, Namibia could easily afford a national BIG and its introduction is a question of political will.
Herbert Jauch, “The Rise and Fall of the Basic Income Grant Campaign: Lessons from Namibia.” Global Labour Journal, Vol. 6, No. 3 (2015)
Global Labour Journal
by Denis Flinn | Sep 29, 2015 | Research
The Advisory Group on Poverty Reduction (AGRP) has presented its final recommendations to Saskatchewan social services minister Donna Harpauer. Areas of initial focus include income security to support basic needs for all, regardless of circumstance or geography. This poverty reduction initiative is related to several others, including a Mental Health and Addictions Action Plan, and the Joint Task Force on Improving Education and Employment Outcomes for First Nations and Métis People.
Full story and supplementary information is available at:
Leya Moore, “Poverty Reduction Strategy One Step Closer“, www.saskatchewan.ca, August 24, 2015
by Karl Widerquist | Sep 23, 2015 | Research
ABSTRACT: This article examines the potential to tackle the roots of inequality by the introduction of one or more social wealth funds. Such funds would aim to capture some of the financial gains from the private ownership of capital—a principal driver of inequality—and use the proceeds for wider community benefit, such as investment in social infrastructure. In recent decades a number of countries have introduced a variant on such funds, mostly taking the form of state-owned sovereign wealth funds resourced through the exploitation of oil, and used for a diversity of economic purposes. In contrast, the UK has failed to take the opportunity to create such funds by, for example, reinvesting the revenue from the sales of public assets. So would it be possible to build one or more such collectively owned funds in the UK, and if so, how should they be financed? As well as funding social investment and anti-inequality programmes, could such a scheme also help finance a regular Citizen’s Dividend payment or a Citizen’s Income scheme?
Stewart Lansley, “How Social Wealth Funds Could Help Tackle Inequality.” The Political Quarterly Volume 86, issue 4, 2015.
The Political Quarterly
by Andre Coelho | Sep 10, 2015 | News, Research
After the resounding commercial and critical success of Thomas Piketty’s book “Capital in the twenty-first century”, the author himself responded, in the form of an article in the latest release of Basic Income Studies, to critics and to proponents of Basic Income (BI). As Michael Howard puts it in the introductory paper of the referred edition of Basic Income Studies, “he is wary (…) of treating a cash transfer as a ’magic bullet’.”. However, Thomas Piketty has been a defender of progressive taxation and some forms of BI ever since 1997, particularly the negative income tax (NIT). Although he remains consistent with his prior views on the role of the welfare state, he supports “universal cash transfers for dependent children” and “basic income for all adults with insufficient market income.” Nevertheless despite disagreements, he views basic income as a valid subject of discussion.
In the same Basic Income Studies volume, other authors discuss Piketty’s book from various perspectives. For instance George Grantham evaluates whether Piketty’s view can be reconciled with mainstream economics, while acknowledging that capitalism is surely compatible with a modest basic income. Also Louise Haagh in her article underscores, like Piketty, that BI is not a magic bullet, but indeed an important component for a progressive agenda which promotes social equality and development. In turn, Karl Widerquist stresses that not only entrepreneurs have a tendency to become rentiers but also that inequality depends both on the difference between the rate of return of capital and growth rate of the economy (the famous “r > g” inequality) but also on how much capitalists actually spend in the economy. He adds that, besides progressive taxation, resource taxes should also be imposed, coupled with some form of resource dividend or basic income.
All these authors, among some others that also shared their views on “Capital in the twenty-first century” in the latest issue of Basic Income Studies (Ruben Lo Vuolo, Geoff Crocker and Harry Dahms), essentially agree that social problems are caused by inequality and that new forms of redistribution (or reinforcement of present forms) are essential to restore social balance, or at least reduce inequality for the time being. In the background, remaining to be addressed is the dark cloud of political control, at the moment very much tilted towards the wealthiest members in our society.
Basic Income Studies (cover)
More information at:
Thomas Piketty, “Le Capital au XXIe siècle [Capital in the twenty-first century]“, Catalogue Sciences Humaines et Documents SEUIL.com, September 2013
Ed. by Haagh, Anne-Louise / Howard, Michael, “Basic Income Studies“, De Gruyter, 2015
Credit picture CC Universitat Pompeu Fabra
