Review: Ruth Lister, Understanding Theories and Concepts in Social Policy

Ruth Lister, Understanding Theories and Concepts in Social Policy, Policy Press, 2010, xii + 311 pp, hbk 1 861 34794 7, £60, pbk 1 861 34793 0, £19.99.

Not only is this a most useful textbook, but it is also a sustained argument for the usefulness of theory. The back cover says that the book is for students and their teachers, but because it constantly draws connections between social science theory and practical social policy it will also be read with profit by social policy practitioners.

Most of the book’s chapters start with a set of theories or ideologies and then relate them to policy areas. Thus moral hazard and public choice theory inform our understanding of Thatcherism’s quasi-markets; feminism has changed the position of the public-private divide and thus our treatment of domestic violence; post-Fordism has contributed to the change from comprehensive education to niche-marketing academies; Foucault has uncovered the disciplinary networks which now influence many areas of our lives; and the idea of ‘social construction’ tells us where ‘the underclass’ comes from – to mention just a few of the many connections to be found in the book.

Three important chapters then start with social policy concepts – needs, citizenship, community, liberty, equality, and social justice; and these too are related to practical social issues: mental health, the relationship between social security claimants and the state, and press censorship – again, to name just a few.

The structure and method of the book reflects the author’s experience with the Child Poverty Action Group and as a university teacher, and the clarity of expression and organisation of the material have clearly benefited from her teaching experience. The final chapter on social movements similarly reflects Lister’s constant engagement with social policy issues through her involvement in organisations, through her speaking at conferences, and through her articles and books. This chapter would have benefited from a rather more personal approach and perhaps should have included an account of issues she faced while at the Child Poverty Action Group. In general, the last few chapters would have benefited from more practical examples.

This is a marvellously comprehensive and comprehensible textbook. There is bound to be a second edition. It should contain a chapter on future directions in social policy which outlines the options for reform of the welfare state, and in particular extends the material on the argument between universalism and means-testing briefly begun on p.191. The debate over the feasibility and desirability of universal provision will be increasingly important in an age of austerity, and students and practitioners would benefit from an extended treatment of the field.

Review: Bernd Marin and Eszter Zólyomi (eds), Women's Work and Pensions: What is Good, What is Best?

Bernd Marin and Eszter Zólyomi (eds), Women’s Work and Pensions: What is Good, What is Best? Designing Gender-Sensitive Arrangements, Ashgate, 2010, 321 pp, pbk 1 4094 0698 3, £35

The chapters of this book started life at a conference organised by the European Centre in Vienna, and it is therefore unsurprising that they contain more about Austria than about any other individual country; but there is still plenty of diversity, and the single country and comparative studies of recent changes in pensions provision contain material on a variety of European countries, including the UK.

Trends identified include: increasing female participation in the labour market, continuing gender-specific employment and caring patterns, population ageing, a transition from defined benefit to defined contribution schemes, increasing numbers of years of earnings being taken into account when pension levels in defined benefit schemes are calculated, and progressive equalisation between women and men of the age at which state retirement pensions become payable. The questions asked could be summed up by ‘Can we create gender-specific and nevertheless fair rules for women and men alike within overall gender-neutral institutional frameworks?’ (p.18)

Annika Sundén, in a chapter on retirement income security, recognises that what is good for women in the long term (e.g., longer formal labour market participation) might not be good for them in the short term – and vice versa (e.g., means-tested benefits, which can be of benefit in the short term, but which create labour market disincentives and thus be detrimental in the longer term). Fornero and Monticone identify the risks inherent in the recent transition from women being largely dependent on men’s accrued pension rights to their increasingly individualised pension entitlements. Ashgar Zaidi et al discuss the surprising fact that the poverty risk for older women is ‘higher in EU15 [the first fifteen European Member States] (23%) than in the new Member States (18%)’ (p.99), and finds that ‘flat rate universal minimum benefits have been … most effective in improving women’s pension incomes’ (p.103). Readers of this Newsletter will be particularly interested in the Dutch residence-based universal state pension discussed in this chapter, especially now that Professor Steven Webb, Minister of State for Pensions, has proposed that the UK should implement a Citizen’s Pension.

Of special interest in the chapters on single country and comparative studies is Gould’s conclusion that partial disability benefits can contribute to labour market participation and thus to income in retirement. Marin’s chapter suggests that ‘women are much less women than men are men – and women are much more different among themselves than they are different from men’ (p.223), meaning that creating the right mix of pension provision is going to be a complex business. The overall message to emerge from this book is that pension provision is generally a highly complex matter, but that lessons can be learnt by studying both the structures and the detail of different countries’ systems, and in particular the effects of those systems on women’s incomes in retirement.

Some of the chapters and a comprehensive annex are packed full of voluminous data: a treasure trove for students, teachers and researchers. (It’s a pity that there is no index, that the chapters aren’t numbered, and that the proofreading is far from perfect.)

Books such as this can sometimes suffer from a lack of coverage of the subject because each of the authors writes about their own very specific speciality. In the case of this book the highly detailed discussion of specific situations enables broad trends to be identified and broad conclusions to be drawn, making it a most useful volume.

COMMENTARY: A BRIEF PERSONAL ACCOUNT OF BIEN’ 13TH CONGRESS BY PHILIPPE VAN PARIJS

The Basic Income Earth Network (BIEN) held its thirteenth biennial congress in Sao Paulo, Brazil, June 30 through July 2, 2010. USBIG has been a national affiliate of BIEN since 2006. Philippe Van Parijs, director of the Hoover Chair of economic and social ethics at the Catholic University of Louvain and Chair of BIEN’s International Advisory Board, wrote the following account of the Congress for the BIEN NewsFlash (reprinted in its entirety):

There are at least three reasons why holding a BIEN congress in Brazil made a lot of sense. Firstly, Brazil’s cash transfer system is one of the most comprehensive in the so-called developing world and is sometimes presented as one of the closest real-life approximations to a genuine basic income. Secondly, Brazil adopted, in January 2004, a law that explicitly asserts as an objective the introduction of an unconditional and individual basic income for all its permanent residents. This is something no other country ever did. And thirdly, it is on the suggestion and insistence of Senator Eduardo Matarazzo Suplicy that BIEN was turned, in September 2004, from the Basic Income European Network into the Basic Income Earth Network. Eduardo Suplicy was the first senator for Lula’s PT and has been representing the state of São Paulo in the Brazilian Senate for nearly 20 years.

So, the choice of São Paulo for this 13th Congress was more than justified, and it proved excellent. Thanks to the hard and intelligent work of an energetic organizing team led by Lena Lavinas, Fabio Waltenberg and Celia Kerstenetsky, the congress was yet another fantastic occasion for sharing information, exchanging arguments, taking new initiatives and rekindling fraternal contacts. The organization was even so good that the congress was able to smoothly accommodate the plenary viewing of the Brazil-Holland World Cup football match and happily get back to full swing straight away despite Brazil’s painful defeat.

The congress took place in the Faculty of Economics of the University of São Paulo on 1 and 2 July 2010 and was preceded by a Brazilian pre-congress day on 30 June. Over the three days, the meeting attracted over 500 participants from over 30 countries and hosted close to 200 presentations that can still be downloaded from the congress site (www.bien2010brasil.com). This meant many parallel sessions that allowed for some in-depth discussion, combined with a number of plenary sessions. The closing one, chaired by Senator Suplicy, provided an opportunity to look back and think ahead with four of those who founded BIEN in Louvain-la-Neuve in 1986 (Clause Offe, Guy Standing, Robert van der Veen, Philippe Van Parijs). On afternoon preceding the congress, BIEN’s Executive Committee was received at length by President Lula, who explained how BIEN’s objectives were already partly met by the programmes that exist in Brazil.

Indeed, several sessions of the congress, including a plenary addressed by the director of the programme, Lucia Modesto, were devoted to the achievements of the Bolsa Familia and to how the challenges it faces may pave the way to a basic citizen’s income. Means-tested programmes such as the Bolsa Familia unavoidably generate a major problem of fair implementation in the context of a largely informal economy. As the programme matures, there will be more and more people who will rightly say: “this is unfair, my neighbour is earning more than me and is receiving a Bolsa Famila whereas I am not”.

Brazilian scholars who study the operation of the scheme do observe that there are comparatively very few households removed from the programme because their assessed income exceeds the (low) threshold, and they acknowledge that many more would need to be removed if the means test were rigorously implemented. But it would be very harsh, expensive, conflict-ridden and unpopular to monitor closely families that are still very poor and punish them with the withdrawal of the Bolsa Familia as soon as their monthly earnings are suspected of exceeding the threshold of 140 reals per person (less than 80 dollars). So far, the risk of clientelism and straight corruption intrinsic in such a system has not eroded its popularity. The public discussion about the Bolsa Familia has been focusing mostly on a different issue, namely whether one should strengthen or weaken the condition of school attendance currently imposed on households with children in the appropriate range: 85% of the classes for children between 6 and 15, 75% for adolescents. But in case the legitimacy of the whole scheme were to be threatened by the unsustainability of the means test, Senator Suplicy and other Brazilian basic income supporters are ready with a structural solution: just do what the 2004 law promises to do, i.e. get rid of hundreds of thousands cases of unfairness in one go by simply extending the benefit to all.

The congress was, as usual, an opportunity to hear about what is happening in very different places in the world. For example, it provided a nice opportunity to compare the local basic income experiments currently conducted in Namibia and in Brazil or soon to be started in India. After the end of the conference, two groups of participants even went to visit the two Brazilian experiments currently underway (in São Antonio do Piñal and Quatinga Velho). It is important to keep the order of magnitude of these experiments firmly in mind. In São Antonio do Piñal, for example, an attractive municipality located in a hilly part of São Paulo state and supporting itself largely from tourism, we visited the room in which the municipal council made an unprecedented decision. It decided to allocate 6% of all municipal revenues collected from local taxes (as opposed to state or federal grants) to the funding of a basic income for all inhabitants. However the total of these local taxes amount to 1.240.000 reals per year. 6% of this amount divided by the 7000 inhabitants gives each of them less than one real per month (about half a dollar). This is a neat symbolic gesture, that its initiators try to supplement in various ingenious ways, but so far it does not weigh much next to the colossal bolsa familia programme, which provides an average per-family monthly benefit of about 50 dollars (95 reals) to over 12.5 million Brazilian families.

This is to be compared with what many of us saw as the most surprising news of the whole congress. It came from Iran. In January 2010, the Iranian parliament approved by a narrow majority the so-called “targeted subsidy law”, which combines two measures. Firstly, it scraps a large implicit subsidy to oil consumption by both Iranian households and firms. It does so by bringing the comparatively very low domestic price of oil in line with the international price. Secondly, it compensates the impact of the general price increase on the standard of living of the population by introducing a monthly uniform cash subsidy for over 70 million Iranian citizens to be paid to the heads of households. The amount is expected to reach initially about 20 dollars per person per month and to gradually rise to 60 dollars. The rich, who consume directly and indirectly more oil than average will not be fully compensated for the price increase, but the poor will automatically be more than compensated. The law, which is due to come into effect on September 21, is therefore expected both to foster a more efficient use of scarce natural resources and to reduce the level of social inequality. For more information, see the section “national debates” below (or Hamid Tabatabai, hamtab@gmail.com, “The ‘Basic Income’ Road to Reforming Iran’s Subsidy System”, slides downloadable from the website of the congress, updated paper forthcoming in Basic Income Studies). If this scheme is actually introduced and expanded as planned in Iran, it promises to be a very interesting initiative to study, and it may inspire other countries. Wherever one is seeking a “sustainable new deal” that combines ecological and social concerns, making resource consumption far more expensive and distributing the large revenues from the price increase equally to all is an obvious option to consider.

In many places, this is a far more realistic option than an Alaska-type permanent fund programme (discussed at the congress by two of its best specialists, Scott Goldsmith and Karl Widerquist). This programme distributes dividends to all Alaskan residents — in 2009, somewhat above 100 dollars per person and per month. As income per capita is about 13 times higher in Alaska than it is in Iran, this dividend obviously makes far less of a difference to the local income distribution than the Iranian scheme will, despite the latter being lower (per capita) in dollar equivalents. But the main difference is that the Alaska scheme is funded out of the interest collected from investments made worldwide with revenues generated by the production of oil at some point in the past, whereas the Iranian scheme should be understood to be funded out of a tax on the current consumption of oil. The Alaska-type scheme is therefore restricted to resource-rich (sub-) countries that manage at some point to exercise sufficient political self-restraint to create and develop a substantial fund. The Iranian-type scheme, by contrast, is available to any country that wants to price the consumption of oil in an ecologically responsible way and to buffer the effect on people’s standard of living in a socially responsible way. For this road to basic income to be a real option there is no need to first accumulate a large fund, nor indeed to be an oil-producing or resource-rich country. Yet, there are also disadvantages. In the long run, one can expect the return on the Alaskan fund to keep fluctuating quite wildly but not to converge to zero. Our consumption of oil, by contrast, will not continue forever.

This surprising Iranian story is only one of the many that were discovered and discussed at the São Paulo congress. It neatly illustrates the role a network such as BIEN can play to spread useful information, to make it intelligible, to broaden our imagination, to boost our confidence and to empower our struggle for greater justice all over the world.

-Philippe Van Parijs, Chair of BIEN’s International Advisory Board

I Have a Basic Income (May 30, 2010)

[This article was originally published as part of ‘the Basic Income Guarantee Blog on USBIG.net. I reprint it here exactly as it was published then.]

In a period of about eight months, I managed to save and invest enough money to get myself a small personal basic income. It was easy-if you get the kind of lucky breaks I got. Of course, you could use the best trading app there is with the hope of making some great returns as I did! I’m telling you this story only because it illustrates how much our economic fortunes are determined by luck, how favorably our laws treat people who own stuff (people who have obtained control of natural resources) and how much unearned income is available for redistribution.

According to my job title, I’m a philosopher. My field is not known as a big money-maker. But at least since Aristotle, philosophers have occasionally made good money by teaching the children of the rich. Aristotle went to Macedon to teach the son of the king. I went to the Middle East the children of the oil-rich. The history that made parts of the Middle East rich began more than 90 years, as the Ottoman Empire was breaking up. Britain and France decided to arbitrarily draw lines on the map of the Middle East to create dependencies that eventually became states. Nobody knew at the time how much oil was there or where most of it was. So, they had no idea those lines would make eventually some of those countries very rich and others very poor.

Thanks to those decisions, the small Persian Gulf state of Qatar is now the wealthiest country in the world. A few years ago the Emir of Qatar (who basically owns the country) offered huge amounts of money to get big-name Western universities, including Georgetown, to open campuses there. Last year Georgetown hired me at a salary about three or four times what I made on my previous job.

What did I do to “earn” this salary? My teaching load is lighter and my skills are no higher than they were last year. The work I do now is no more important than the work I did last year. The children of the oil-rich can afford to pay more for their education, but it’s hard to argue that it’s more important to educate them than anyone else.

Partly I’m being paid for my flexibility. Most people can’t pick up and move to the Middle East. Partly I’m being paid because everybody knows the Emir of Qatar has a lot of money, and nobody with any other options is going to work there unless they get a piece of it. Just a lucky break for whoever happens to be in position to take advantage of it.

So, suddenly, I had money to invest.

Meanwhile, in South Bend, Indiana, the most depressed real estate market in the United States, my brother was a public school teacher. He had bought a couple houses, fixed them up, and was making good money renting them out. He had time and skills to invest but not money. I had money but no time. We trust each other. The arrangement was obvious-a lucky coincidence.

Because real estate prices are so low in South Bend, we already have three houses, a lien on another, and we’ll soon be shopping for another. We have long-term leases signed on the first three houses, so that, beginning August 1, my share of the rental income from those houses will be about $700 per month, or $8,400 this year, next year, and every year.

The laws of the state entitle me to keep that stream of income from now until the end of time. I could leave it to my children or set up a trust fund that to direct that flow of income toward whatever purpose satisfies the whim I have in my head when I write my will. That is a lot of money that can be put aside for something useful. Whether it will be used for my children’s tuition fees or for medical costs, that money can go a long way.

As we’re thinking about shopping for another real estate property, maybe we should consider out of state real estate investing instead? This could offer us more choice in the type of property that we invest in, as well as having the possibility to use it as a vacation home. I would just like something that could help to contribute to our income.

Above all, investing in real estate is a fantastic way to diversify your investment portfolio. However that being said, it is no secret that managing several properties at once can be confusing, particularly if you intend on leasing out your properties to tenants. For this reason, if you are considering investing in real estate, it might be a good idea to research some of the amazing property management companies out there that can take care of the day to day responsibilities that come with being a property owner. I know that a friend of mine managed to find a jacksonville property management company to safeguard his investments by doing some research online so it might be worth researching some different property management companies in your area.

Anyway, what I am trying to say is that thanks to my property investments I have a basic income, not just for life, but forever.

I pay about $15 a month in property tax on each home. But because we can deduct funds spent on improvements to the homes and claim “depreciation,” I can expect to pay no income taxes out of my share of the returns. If it looks like our profit will be so strong that it will force us to pay taxes we can put a new roof on a house, deduct the cost from our earnings, see the value of our home increase (thought property taxes will not), and earn more rent. People who actually have to work for their money can expect a quarter or a third of it to go to income taxes. This is not some brilliant shelter that our accountant devised. This is how people who own stuff are treated by the tax rules from Key West, Florida to North Slope, Alaska.

Assuming no compound interest and no new investments on my part, the rent on the property I have accumulated in eight months of saving and investing will add up to $84,000 over 10 years, $840,000 over the next 100 years. If you would like to invest in some new real estate, you may want to check out The Florence Residences Pricing which is a great money investment. Assuming compound interests and new investments that amount would go up exponentially-possibly increasing by 10 times in a dozen years.

Of course, $8,400 is a very small basic income. It doesn’t tempt me to quit my job and spend the rest of my life surfing off Malibu. Yet, it is nearly as large as what a very optimistic basic income supporter would hope to start out with. It is far larger than anything Congress is likely to approve for people who need it. People are likely to say we “can’t afford it” even though there are many people, who own much more than I do, taking in money just as easily.

Compare my personal basic income to the only regional basic income in the world today. Last year, the Alaska Permanent Fund Dividend paid $1305 to each resident of Alaska. That means that after eight months of saving, I am able to pay myself a dividend more than six times the amount that the oil-rich state of Alaska can pay its citizens after more than thirty years of saving and investing. But Alaska taxes almost nothing else but oil, and they use only a small portion of their oil revenue to support the Permanent Fund. Mostly they used their oil wealth to give people who own other things in Alaska a big tax cut. If they had used all of their oil royalties to support the fund, the dividend would be at least four times what it is now.

What can I possibly have done in eight months of investing to have earned a perpetual stream of income from now until the end of time?

Not much really. Lucked into a situation. As much as people believe that we must keep taxes low to reward people who do stuff and produce stuff, our property laws and tax laws most favor people who own stuff. In part, laws are set up this way because people who own stuff are very powerful. They have an enormously disproportionate control over government policy, and very often choose policies in their own self interest. Owners have successfully pushed most of the tax burden off onto people who make salaries.

But another important reason why the laws so greatly favor people who own stuff is that most people do not understand the difference between rewarding people who produce stuff and rewarding people who own stuff. A lot of what we spend goes to reward production, but it’s a mistake to think all income is earned. What can any investor do in a finite amount of time to “earn” a stream of income that lasts forever?

Supposedly investors are paid for their forbearance and parsimony. Because investors have the discipline to put money away instead of spending it on consumption now, they earn a return on that savings. But I didn’t save money because I was frugal. I saved money because I had money. I have spent money more extravagantly in the past year than at any other time in my life. Because I made so much more than I was used to, I was able to buy pretty much whatever I felt like, and still have a lot left over to invest. This seems to be true of a lot of investors.

Supposedly investors are paid for taking risks, but many of the vest investments are not very risky. There is no chance that this business will go bankrupt, because we don’t owe any money. There is some chance that rental prices in South Bend will fall slightly, but probably not much. If the South Bend real estate market stays depressed I can expect my rental income to rise with inflation. If the market gets better I can expect it to rise more quickly than inflation.

Supposedly investors are paid for providing a valuable service. To some small extent this is true of me. If I hadn’t invested this money, the South Bend real estate market would be just a little more depressed. Rental properties would be just a little less available; purchase prices would be just a little lower; rental prices would be just a little higher, and other landlords would make just a little higher rate of return. That’s something. But it hardly justifies a stream of income from now until the end of time.

Supposedly the stream of income is justified by the continued maintenance and improvements that owners put into their properties. But those all come out of the stream of income. The need for maintenance or improvement might decrease the size of my returns, but there is no necessity for any new investment or even action on my part to maintain them. I can just sit back and collect. Over time, the renters pay for the maintenance themselves.

Investors might have to do something or produce something to obtain ownership of a resource, but once they own it, anyone who wants to do anything with that resource has to pay the owner for the privilege. The owners of the past get a cut of all current production whether they personally contribute anything or not. The existence of so much unearned income reorients our economy away from productive activity so that you can’t be sure that the initial investment was necessarily something productive. Much of what people do, especially in the financial, insurance, and real estate sectors revolves not around the provision of services but around using financial resources as leverage to obtain more financial resources.

Renters pay me because I own stuff that other people don’t. I’m in that position, because I just happened to have a brother who needed an investor just when I happened to have money to invest. I was in that position because I just happened to get a job in Qatar. The Emir of Qatar just happened to be able to give me that job because arbitrary decisions made long ago by the British Empire just happened to have worked out so that he owns stuff that other people don’t.

Lucky break upon lucky break upon lucky break determines who owns resources and who does not. Those who do not own will pay those who do, year after year, from now until the end of time or until we decide to change the rules. We don’t need to eliminate property to change the rules in an important way. How about a little rebate from those who own stuff to those who do not? It would compensate them for all that they have to pay just because others control the resources we all need to use.
-Karl Widerquist, begun in New Orleans, completed in Buenos Aires, May 2010

OPINION: Essay: On Work

There is not a lot that one can write about this that has not already been written.

I need to work, in order to make something of my life.
I need to work, in order to gain the recognition of my fellow citizens.
I need to work, in order to feed my nearest and dearest.
I need to work, in order not to be a burden on the public purse.
I need to work, for these and many more reasons …

I want to work, in order to make something of my life.
I want to work, in order to gain the recognition of my fellow citizens.
I want to work, in order to feed my nearest and dearest.
I want to work, in order not to be a burden on the public purse.
I want to work, for these and many other reasons…

Is it that I want to work – or do I only need to do so? And what does “work” mean anyway?

There is hardly another concept in the world which is so vaguely defined as the concept “work”.

Let us take the example of a gardener. For a gardener, caring for a garden, designing it and laying it out is “work”. They would go through the process of getting their tools and equipment for their work, be it from TradeFix Direct or anywhere else, and set out for their project accordingly. Many other people, however, go out of their way to lease themselves a little garden in which they can carry out these very same activities in their spare time. That is to say, their gardens serve them as spare-time recreation, as a hobby.

This would suggest that one might be able to argue so: the gardener doesn’t really do any work at all; he just spends his time pursuing a hobby.

But this line of argument doesn’t work. Were the gardener to become unemployed, he would always have the opportunity to lease himself a little allotment and thus pursue his hobby. And, on the terms of the argument proposed, all would then be in order. But, in fact, the unemployed gardener would certainly say: “I want work”.

We attempt to get around this contradiction with the help of the term “gainful labour”. We describe as “gainful labour” every activity for which we receive monetary remuneration.

But this definition also leads nowhere: a painter paints a picture for which, during his lifetime, no buyer is to be found. He dies in poverty. That is to say, he has not, in his lifetime, practiced any labour that could be described as “gainful”. After his death, however, this picture fetches an enormous price. Must we say that the financially unrewarding hobby he had been practicing hereby suddenly became “gainful labour” after all?

It is true that one can solve this problem by amending the definition slightly and saying rather that “gainful labour” is an activity for which one receives monetary remuneration at a point in time more or less coincident with the performance of said labour.

In so amending the definition, however, one establishes a complete disjunction between the actual performance of work, on the one hand, and “gainful labour” on the other. For then we would have to say – to hold to the original example of the painter and his picture – that the individual who actually performed the work had not, in doing so, engaged in any “gainful labour”, this “gainful labour” having to be ascribed here rather to the individual inheriting the picture. And this despite the fact that this heir to the painter’s production has hereby engaged in a “gainful labour” which has plainly involved no effort, on his part, at all – an activity, as it were, without activity.

This implies, however, that the painter of the picture must have engaged, for his part, in what we would have to call “gainful labour without gain”, since the picture constitutes the object of the “activity without activity” of the person inheriting it.

Clearly, however, there can, per definitionem, be no such thing as “gainful labour without gain”, so that the concept “gainful labour” seems also to lead us into an argumentational culde-sac.

The Calvinist work-ethic attempts to get around the question “what is work?” and focuses rather on the basic dogmatic claim that the justification for Man’s whole existence inheres exclusively in his vocation to work.

Calvin favours here a definition of “work” which (measured by today’s standards) is a very broad and inclusive one. Thus both the activities of a housewife and those of a “hobby” gardener tending his garden count, for example, on Calvin’s terms, as forms of “work”.

In the modern world, with its highly developed division of labour, in which all of us tend to work (in the sense of manufacture or produce) exclusively for others and to hardly any degree for ourselves, gainful labour is no longer a matter of an activity giving sense and meaning to our lives but rather one of how we “get by” materially, that is, how we gain our “livelihood”.

Where one establishes a fixed linkage between “getting by”, or “livelihood”, on the one hand and gainful labour on the other, however, it follows that there will surely be such things as people “earning their livlelihood” without actually performing any labour and, conversely, people performing labour without this sufficing to a livelihood.

This is a situation which those performing labour without being able to “get by” on its financial results will naturally feel to be deeply unjust, and also one, of course, which those earning a livelihood and even a good livelihood without having to perform any sort of labour will want to maintain as long as possible.

This tends to lead inevitably, at least in the short term, to a gaining of the upper hand by those “earning a livelihood” without actually having to perform any sort of labour. This inasmuch as, in the first place, a person in this position will certainly be ready to take almost any step in order to ensure that those actually performing some sort of labour do not come to acquire their share in the wherewithal required to “get by”; the fact of some people’s actually performing work in order to gain their livelihood would sooner or later, whether the working individuals intended it to do so or not, tend to put into question the legitimacy of “earning a livelihood” without work being performed.

In the second place, much less time and effort is involved in the mere marketing of products in which one has invested no labour than in the innovative creation of products which are actually the results of some work. One might give here as examples such businesses as the “ring-tone” industry or the positive cult that has grown up around certain brand-names.

One might, indeed, speak of a ring-tone as itself innovative were it, for example, activated in a manner attuned to surrounding noises, so as to be better audible in real environments. Similarly innovative would be a piece of clothing that automatically adjusted to changing weather conditions. But there is simply no innovative or productive effort involved in the marketing of music-samples as ring-tones or in the printing of famous brand-symbols on clothing.

Sooner or later, “earning a livelihood” without actually performing any work in order to do so will be a mode of existence which will bring about its own elimination. Either because those who perform some work without being able to “get by” on its financial results will no longer put up with the situation, or because “earning a livelihood” without performing work will prove to be no longer financially sustainable.

Automation and “Work”

Whereas it was still possible up until a few years ago to define gainful labour with the aid of one or another type of “measurement of performance” (bonuses, definitions of minimum requisites for particular jobs, indispensable training requirements etc.) the increasing trend to automation is making the weak points and errors in this system more and more clear.


In the car industry, for example, we have seen some welders being replaced by robots. Whilst this has been seen in some situations, a lot of car manufacturers are prioritizing humans for this job. Robots cannot offer the same level of care and detail that a human can offer, this is why some car manufacturers are keeping human welders in the job to make sure manufacturing quality remains high. A lot of companies are also continuing to take on new welders, so it might be worth reading some advice from David from the weldinginsider if anyone is thinking of becoming a welder. It’s an exciting job that hasn’t been completely taken over by robots yet. However, this raises the decisive question:


Is a robot now working where a human being once worked?

If one answers this question with “yes”, the effects on the concept of “work” are extremely far-reaching. Because, then, one would have to define “work”, at least in large sections of the area covered by this term, in terms of value-creation or of expenditure of energy.

But if one answers it with “no”, then one implicitly denies thereby the essential relatedness of work to performance, with the consequent self-contradictions which we outlined above.

It was the view of Karl Marx that human beings alone are capable of “work” in the true sense. So long as one were to assign to the robot in the car factory, as a supervisor or mechanical operator, the very same human being who had once occupied the job it now occupies (that is to say, the welder himself) then one would at least have satisfied the conditions Marx believed are necessary in order for us to be able to speak at all of “work”‘s being done.

Once things, however, had progressed to the point where the robot no longer required either supervision nor the services of any sort of operator, then the worker placed in such positions would be acquiring a “livelihood” which would no longer involve any actual performance of work – but would, for just this reason, certainly involve all the internal self-contradictions which we have outlined above.

Marx, however, has nothing at all to say about the possible solution to the problem which would consist in continuing to extend to the welder that “livelihood” which he has now reached the point of acquiring without actually having to perform any work while relieving him from the obligation to be actually physically present at the place of production (this physical presence having become, in any case, something without use or relevance to the production process).

Where one chooses to pursue this thought to its conclusion, however, one has in the end no choice but to recognize the robot and his “operator” as forming a team. And such being the case, the question must also be raised of how the wages for the task performed by this team are to be divided up between robot and man.

Here, the wage received by the robot has a precisely defined limit below which it may not fall. In the case where it no longer receives enough energy to do its work (and in talking about a “wage” here it is really an amount of energy that we are talking about) the robot will not moan or complain, but simply cease then and there to execute its activities. At the moment in which this “wage” is once again raised to a tolerable level, the robot will waste equally few words or time in beginning once again to carry out its assigned operations.

Given, then, that “bargaining” and “negotiating” with the robot about the part of the wages that it is to receive is out of the question, the worker clearly has no choice – when it comes to the question of the amount of the wherewithal to a “livelihood” which he is to receive without having actually provided any work in exchange for it – but to content himself with what the robot leaves over for its “partner” after it has extracted all that it needs to cover its energy requirements.

The corollary of this, however, is that, the lower the cost of covering these energy requirements, the more there will remain left over to make up the wherewithal for a “livelihood” that can be accorded to human beings without their having to perform work in exchange for it – assuming, that is, that prices and profits remain constant.

This whole consideration leads finally to the definition that “gainful labour” (be it of human or of mechanical origin) cannot possibly be anything else but that part of production which consists in energy and which is employed to economic ends.

From this definition there logically follows the recognition that every type of work is, in principle, of equal value with every other type, since, in purely biological terms, the energy invested by a day-labourer cannot be said to be essentially distinct from that invested by a university professor. And in neither case is it possible that the economic orientation of this energy exceed a maximum no different for the professor than for the labourer.

Another recognition that must follow from the above is that work itself is in the first instance without value. Because it is impossible to speak of monetary “value-creation” at any point before the product has been completely manufactured, sold and paid for.

Any differentiated monetary remuneration for a contribution to the production process (namely, work) which is itself monetarily value-less must inevitably lead to the emergence of inconsistencies in the system.

Now, a possibility here would apparently be to compensate all those involved in any part of that process of monetary value-creation which gives rise to the final product to a degree proportional to the amount of work which they actually contribute thereto. But this possibility would only be a real possibility if the process of value-creation giving rise to the final product were one which could be clearly and cleanly isolated and distinguished from all other social processes.

Such, however, is simply not the case, as we can see from the example of the car industry:

It is one thing to manufacture cars; it is quite another thing to have to hand a market on which such cars can be sold.

Not much is required in order to actually build a car: a little metal, some plastic, a degree of know-how, silicium (sand) for chips, and glass – and there you have your car.

In order to make a car run, though, somewhat more time and effort is required. One needs oil refineries, to manufacture petrol. Indeed, if the petrol is to have the quality required, a whole petro-chemical industry is needed. The same is true of lubricants and other materials.

Additionally, it is also important to remember that there is a chemical risk at each stage of production of a car. The manufacturing process involved in producing engines, plastics, and various other elements of a car requires the use of chemicals such as adhesives, acids, bases and cleaning chemicals, in plastics, in foams and in surface treatments.

Accordingly, most of these products are corrosives or irritants. They are present at varying concentrations and in several unique quantities. Correspondingly the risk zones are the production areas, the decanting areas, valves and pumps, and sometimes the open baths. Furthermore, most of these chemicals are handled in laboratories and although using a face mask is essential to protect employees from breathing in harsh chemicals, there is still a constant risk of projection and chemical spill.

With this in mind, it is crucial that car manufacturers make use of chemical storage solutions to prevent hazardous chemicals from spilling or leaking. For instance, most car manufacturers make use of bunded storage. Put simply, a bund is a secondary containment area in a tank or a drum where any spilled liquid can collect if the original storage option fails.

Due to the diversity of chemicals used throughout the industry, there are lots of different bunded storage options available for industrial users. You can learn more about bunded storage by taking a look at some of the resources on the Storemasta website.

Now the car is actually up and running; in principle, one could drive. But where is the road that one needs to drive on? Where are the petrol stations which enable one to get back when one has driven far from home? Where are the traffic lights that organize traffic?

Cars are easily built; they become bearers of monetary value, however, only once they have been sold and paid for. But who would ever buy a car if there were no roads to drive it on, no petrol stations at which to refuel it?

For this reason, we may say that those involved in the building of roads also make their contribution to the monetary value-creation process of the car industry. Were there no roadbuilders, there would be no value-creation in the form of car manufacture; conversely, however, were there no cars there would likewise be no value-creation in the form of the construction of roads.

Our modern society, characterized as it is by a very highly developed division of labour, is one that displays a kind of dependence even on that most notorious example of the individual contributing no “gainful labour”: the “TV junky”. Were there not people who are constantly “working” in this way in front of their television sets, it would be impossible for the TV stations to generate that income from advertising which contributes so much to their own monetary value-creation process.

The more developed the division of labour becomes in our society and economy, the less it is possible to ascribe processes of monetary value-creation to individuals or to individual groups.

If we wish to see the social peace and harmony of our society maintained (some might say that it is a question of restoring a social peace and harmony already lost) it is imperative that we guarantee the basic livelihood of all the people forming this society, and do so by seeing to it that each of these people receives his or her equal share in the social process of monetary value-creation in the form of a “citizen’s allowance”, or an Unconditional Basic Income (UBI).

Such an Unconditional Basic Income should not be confused with any type of “social security” or “welfare” benefit in the hitherto current connotation of these terms. Rather, it is a matter of a basic right which can be claimed by each individual citizen and which can be convincingly logically justified on the basis of the new “work ethic” promoted by Jovialism.

Under conditions in which it is no longer possible to distinguish clearly and unambiguously – and thus no longer possible to distinguish fairly and justly – between one individual’s apparent participation in the process of monetary value-creation and another’s apparent nonparticipation, and between the different degrees of said participation, the only possible fair and just solution to the problem is that consisting in an equal distribution – at least of parts of the value generated by the socio-economic process.

Review of Simon Birnbaum’s “Just Distribution,” from 2009

Review of Just Distribution: Rawlsian Liberalism and the Politics of Basic Income by Simon Birnbaum. Stockholm Studies in Politics 122, Stockholm University 2008: ISBN: 978-91-7155-570-0

Review by Karl Widerquist, originally published in the Citizens Income Newsletter, 12th February 2009

Simon Birnbaum

Simon Birnbaum is a newcomer to the basic income debate who has quickly worked his way into the basic income movement. He completed his doctorate in 2008 at Stockholm University, and has already been awarded fellowships at Oxford University and at the Catholic University of Louvain in Belgium under the supervision of Philippe Van Parijs. He has only been publishing since 2005, but he has already published six academic articles and chapters, five of which are on basic income.

Just Distribution is Birnbaum’s doctoral thesis. It is not an easy read. It is 240 pages of dense political philosophy that only people who intend to get deeply into the philosophical debate over basic income will want to read in full. It is aimed at people who have already read several of John Rawls’s major works and some of the more philosophical works on distributive justice in general and basic income in particular. However, many of the arguments in this book are of interest to a wider audience, and I will try to give readers of CIT Newsletter a brief introduction to them.

Birnbaum’s starting point in John Rawls’s Theory of Justice, one of the most influential works of political philosophy of the Twentieth Century. Rawls’s most famous proposition, “the difference principle,” stated that the distribution of benefits from the joint social project should take incentives into account, but decision makers should use incentives to maximize the benefit to the least advantaged individual. When do we stop giving more to high achievers? When doing so ceases to be in the interest of the least advantaged people. Such a principle sounds favorable to basic income, but Rawls balked when confronted with the question of whether the difference principle should benefit lazy “surfers” who enjoy the benefits of the social project without contributing. The least advantaged individual in Rawls’s theory is not necessarily the poorest person, but the poorest contributor to the social project, apparently ruling out basic income.

Birnbaum’s project is to admit that the surfer problem exists but to argue that on balance an unconditional basic income would further the overall goals of a Rawlsian economy. The surfer problem is a strike against basic income, but it need not be decisive, if basic income has other benefits that further Rawlsian goals. Birnbaum discusses many such benefits. For example, many contributors would benefit from the assurance of unconditional support. People who contribute to the social project in ways other than paid labor will share more in the benefits they help create and will be better able to make their contribution if an unconditional basic income is available. Subjecting disadvantaged people to extensive supervision to make sure that they are eligible for conditional redistribution is harmful to the self-respect that Rawlsianism is supposed to accord to contributors. Basic income gives workers the power to refuse exploitive working conditions. Finally, there is a large amount of wealth in society that attaches to nonhuman resources, and that can therefore be distributed unconditionally without violating any principles of fairness to contributors.

The latter half of the book responds to criticisms based on reciprocity, responsibility, and feasibility. A regular basic income can be important to upholding the security and autonomy individuals need to make well-informed choices as self-respecting, equal citizens, and it, therefore, helps maintain responsibility. Birnbaum concedes that a contributory ethos is necessary to maintain a Rawlsian society with or without basic income and that basic income might therefore lead to exploitation of those who hold the necessary ethos by those who don’t. However, there is also a tension between the effort to eliminate any such exploitation and the neutrality-based goals of a liberal society. Birnbaum concludes that given the constraints of feasibility, there is a tentative case to be made for a mixed redistributional system with some redistribution coming in the form of conditional benefits and some coming in the form of unconditional basic income.