Finland’s basic income never failed, our ‘jobs’ did

Finland’s basic income never failed, our ‘jobs’ did

This past week, Finland released the final results from its two-year “basic income” experiment. The program produced a modest increase in working days among basic income recipients and noticeable improvements in perceived happiness and healthiness.

Is this a surprise? When governments give people cash assistance, of course, their lives will improve. And with financial stress alleviated, these recipients will still find productive uses for their time. 

Simply imagine the unearned suffering billions of people could have been spared if governments had implemented basic income prior to the pandemic and global economic depression. 

Basic income skeptics should consider which system failed when confronted with the current avalanche of suicide, descent into addiction, and hungry mouth these twin crises have created. But according to the government’s standard, Finland’s basic income experiment still “failed” because recipients only increased their working days by a week or so.

Let that sink in. Despite proof that the program improved basic income recipients’ physical and mental well-being, it was deemed a failure because it did not fix every aspect of the labor market in two years. Recipients worked more, but that apparently still was not enough. 

Maybe the standard by which success is judged is, therefore, the true failure.

Our current situation shows us that the government was dead set on keeping us in jobs at all costs. And the natural result of that obsession to “preserve work” is that governments are now bailing out corporations instead of their people.

Of course, well-connected businesses like airlines are bailed out first (and multiple times) as average people languish on the edge of financial ruin. Meanwhile, complicated schemes in the United States like the “Paycheck Protection Program” are designed to create the impression of modest job loss, since employees are kept tacked to their employer by way of payroll. But these “jobs saved” are meaningless insofar as many small businesses will immediately shutter from falling demand whenever the program ends. Many are zombie employers, animated by governments’ obsession with “jobs” over human wellbeing.  

Even increasing unemployment benefits with a $600 bonus has been a nightmare, having never gone to many informal workers like caregivers and mothers in the first place. The unemployed will now make every effort possible not to return to work. Unlike with basic income, where the payment is available unconditionally, people will lose their leisure time and $600 unemployment bonus when they accept their next job. 

Unemployment payments are also being used to threaten employees to return to work before the pandemic is even under control. In Iowa, the governor said unemployment recipients will be thrown off unemployment assistance if they do not return to work when lockdowns are eased: even if their workplaces are still hotspots for COVID. This means even more lives will be sacrificed on the altar of “increasing work” and “saving jobs.” 

In contrast, basic income would empower people to  make an informed decision whether it is safe to return to work without the loaded gun of economic self-destruction being held to their head. Governments should pay people directly instead of paying their employers. If they did, employers would have to meet the safety and pay standards of the people they hope to woo back into work 

Almost a year ago, I wrote that the era of “experimenting” with basic income to determine whether it causes “laziness” should end. This question is more often than not asked in bad faith by opponents of basic income, who ignore overwhelming evidence that it generally increases the number of hours recipients work: even leaving aside the productivity gains in those work hours, as people are given more freedom to choose how their labor is allocated.

When the article was written, Canada cancelled its basic income experiment and Finland released its first year of results. These experiments were deemed failures at the time. But the absurdity of that belief is clearer than ever before. 

We stand at the abyss, with the highest unemployment rates and deepest recession of our lifetimes on the horizon. And yet governments have doubled down on putting “jobs,” narrowly defined as roles serving corporate interests, over our wellbeing. This paradigm, by supercharging the economic fallout of the pandemic and forcing people back to work without safety rails in place, defies all logic.

Basic income never failed us. Our “jobs” did. 

By Tyler Prochazka and James Davis

The Prehistory of Private Property: A video introduction to the new book by Karl Widerquist and Grant McCall

The Prehistory of Private Property: A video introduction to the new book by Karl Widerquist and Grant McCall

This short video introduces the new book, The Prehistory of Private Property, by Grant McCall and me. The book examines the origin and development of the private property rights system and the experiences of peoples who have lived in other systems to debunk three false claims commonly accepted by contemporary political theorists. These false claims are: (1) Inequality is natural and inevitable, or egalitarianism is unsustainable without a significant loss in freedom. (2) Capitalism is more consistent with negative freedom than any other conceivable economic system. (3) Private property is somehow “natural,” meaning that when free from interference people tend to appropriate and transfer property in ways that lead to a capitalist system with strong, individualistic, and unequal private property rights.

The book presents a great deal of anthropological and historical evidence that show that all three of these claims are false: (1) Many societies known to anthropology have maintained egalitarianism and freedom. (2) The least free people under capitalism are significantly less free than people in societies with common access to resources. (3) The first people to “appropriate” property tend to share resources; the elite private ownership system was forced on the world by the colonial and enclosure movements beginning only about 500 years or so ago and not fully complete yet.

The book is not primarily about Universal Basic Income (UBI), but it attacks many arguments used against UBI and other forms of redistribution. It also makes a brief case for UBI in the very last chapter, as the video explains.

As a bonus, early in the video, if you look closely, you can see Alexander de Roo eating breakfast in the background.

YouTube player

Thanks to Ali Mutlu Köylüoğlu for inviting me to give this talk and for recording and posting it.

-Karl Widerquist, Morehead City, North Carolina, June 17, 2020

In Solidarity with Black and Brown Americans: How UBI Offers a Path Forward

In Solidarity with Black and Brown Americans: How UBI Offers a Path Forward

We stand at a crossroads. Our great depression threatens to create a larger and more permanent underclass in the United States, as Congress loots the economic system for over $5 trillion in bailouts for the wealthy. Brave protestors and disaffected rioters have taken to the streets to speak truth to American white supremacy, even in the midst of a pandemic that threatens the lives of Black and working-class Americans the most.

George Floyd’s murder inspires unimaginable pain. We lost a soul, a neighbor, a friend, and for many—a brother—to the hands of injustice. Breonna Taylor and Ahmaud Arbery. Eric Garner, Tamir Rice, Laquan McDonald, and Kalief Browder. Countless people have been stolen from their families. From every city in America. Because they were black. 

To say that Black Americans live in a state of terror at the hands of unjust policing, vigilantes, and the criminal justice system is an understatement. To many, it is a militarized occupation of the cities built by their labor, in this century, and the labor of their ancestors dating back almost four hundred years. 

If you name a disease in American society, whether it be heart attacks or COVID-19, poverty, or evictions, Black Americans are disproportionately brutalized. The underlying disease is white supremacy, in all its heinous and hidden forms. It hides in white systems. And it hides in white people’s hearts. The United States never achieved freedom for Black Americans. As Fredrick Douglass noted, as wage slavery and disenfranchisement replaced slavery after the Civil War, “Emancipation for the Negro was freedom to hunger, freedom to the winds and rains of heaven, freedom without roofs to cover their heads… it was freedom and famine at the same time.” 

Universal basic income, an unconditional payment to all rooted in the belief that everyone has a right to natural resources and the economic fruits of our labor, represents a way to make economic freedom a reality. For Black and brown Americans, it will help counter many of the innumerable barriers to voting: the cost of voting documents, forced relocation, the inability to take off work to vote, intergenerational nihilism, and the economic insecurity that makes it impossible for poor Americans to run for office themselves. Universal Basic Income posits that an individual’s right to life, particularly in a world scourged by a pandemic, should not depend on the profit-driven interest of a corporate employer. Its philosophy contends that the more conditions put on accessing economic relief, the harder it is for people to use and access it — as any person who has received welfare or applied for unemployment benefits will tell you.

In his address to Stanford in 1967, Martin Luther King Jr. famously said that riots “are the language of the unheard” for those denied suffrage or recourse through the political system. Less appreciated is what he said immediately after: “Now one of the answers it seems to me, is a guaranteed annual income, a guaranteed minimum income for all people, and for all families of our country.”

Rooting his philosophy in a politics of hope, King called on us to implement policies that fundamentally transform government. Because millions have taken to the streets, the elite finally listens in fear, making this transformation possible. Universal Basic Income is fundamental for restoring democracy, a social contract that lays the groundwork for peace and justice. We need this compromise more than ever as inequality reaches record levels, authoritarian regimes strip ordinary people of their rights, and the destruction of our planet continues unabated. With more climate and pandemic crises on the horizon, how long will it take elites to realize that this economic system threatens the rise of violent populism?

As authoritarianism reasserts itself in the  United States, Brazil, India, China, and Russia with mass surveillance and information warfare, the window for a peaceful resolution is fast departing. Now more than ever, Black and brown Americans and their allies have shown us that our only hope is taking action to demand our rights be protected. And we must be willing to risk our lives to ensure those rights are backed by transformational policies like Universal Basic Income.

Let us use this moment to demand comprehensive racial and economic justice for our nations. We owe George Floyd no less. 

 

Article By James Davis
Picture Creator: Jesse Costa
Picture Copyright: Jesse Costa/WBUR

Recent news from Russia

Alexander Solovev, Social movement “Basic income Russia Tomorrow”, has written several articles about what is happening in ex-USSR countries now on what measures governments are taking to protect the citizens of their countries during the coronavirus pandemic. These articles have already been published in Russia and Ukraine. Irina Soloveva has provided English translations.

For the most recent news from Russia, see the third article and its translation

The articles can be found here:

1) https://ubiru.org/2020/04/21/ot-kommunizma-do-garantirovannogo-osnovnogo-dohoda/  (in Russian)

https://ubiua.com/2020/04/21/vid-komunizmu-do-garantovanogo-osnovnogo-dohodu/ (in Ukrainian)

2) https://ubiru.org/2020/04/14/ispytanie-koronavirusom-covid19/ (in Russian)

3) https://ubiru.org/2020/05/17/osnovnoy-dohod-v-rossii-vy-serezno/ (in Russian)

An English translation of the first article can be found here, of the second article here, and of the third article here (translations by Irina Soloveva).

www.ubiru.org

Launch of the BIEN Conversations – why critical debate is more important than ever

In April BIEN’s Executive Committee agreed some plans to feature the growing public attention around basic income as a response to the Coronavirus crisis, in an informative and critical way. We launched the new BIEN Bulletin, which is up and running. We also agreed a BIEN zoom-cast to be anchored by Louise Haagh, Sarath Davala and Jamie Cook. Finally, BIEN’s academic blog the Navigator, will feature the Covid-crisis in its first edition, to be launched this Autumn.

We are pleased today to publish the first episode of the BIEN Conversations Zoom Cast, in which some of the general themes we envisage will run through the series of dialogues are sketched.

To watch the video, click here.

The Zoom Cast does not aim to generate BIEN positions, and does not reflect BIEN positions. The opinions of the anchors and guests are their own.

The aim of the Zoom cast is to fill a gap in the coverage of Covid and basic income, by reflecting critically on both the opportunities and risks which this new context for the discussion about basic income creates.

What is the relationship of a prospective basic income with other economic security schemes, such as Furlough in Britain? How does the existing labour market affect the need for cash grants and the government response? What can we learn from cases such as the US, where the government has extended what looks like a rich-tested temporary UBI, in the form of flat income grants to individuals of 1200$ (for anyone earning less than 125K$)? To what extent it this response a feature of the US labour market context, including the spectre of huge job losses? In India and parts of Eastern Europe, with large labour migrant populations being either stuck or forced to return to their home country without income security, the role of a potential temporary unconditional cash grant scheme addresses deeper problems of labour migration.

What about the preparedness for Covid in different countries? Are there lessons for basic income from the differences in state capacity and social organisation which country responses to Covid reveal? For example, countries which have been able to track and reduce instances of Covid have needed less extensive lock-down restrictions and in turn the economic outlook may be better. Contrasting examples show vividly how the need for and capacity to support basic income-like schemes and transitions may be at odds: greater need often comes with less capacity. What implications can we draw of relevance for the wider debate from this sort of scenario?

Other issues the Zoom cast series hopes to cover include the relationship of basic income debate, rationale, and prospects with larger questions affecting the conditions in which basic income be can be realised and be effective. Relevant background factors include post-covid servicing and potential restructuring or relief of public debt, and government-led choices about austerity versus social investment. Debates which pit basic income against other public policy measures will be more likely where short-term debt servicing trumps long-term social investment and planning. Some say that short-term recovery measures can be turned into a permanent basic income scheme. But is it that simple? How do administrative, political and funding logics intersect? What is already clear is that in the post-covid context the debates about what motivates basic income, and if choices need to be made, which features of a UBI matters most in a transitional context, will only become more urgent. Perhaps we need to accept these choices and their answers will look different in different places. A theme that has always motivated me however is the importance in general of emphasizing basic income as an institutional innovation, which is linked not only with unconditionality but also with the scheme’s permanency.

Permanency is key to a UBI’s impact on health and motivation, and thus the sense of freedom, and to the potential to support other public policies. Without permanency, the fit of basic income to other economic institutions and to development transitions such as towards a green economy, are harder to envisage.

Permanency of basic income is accepted as an inbuilt feature of UBI by most experts, but it is lost sight of in public debates in favour of short-term needs – understandably, and this tendency becomes naturally more prominent in crisis conditions. However, being able to maintain a long-term perspective, with an eye on the advantages of permanence can also be argued to be even more important at critical junctures such as these, including to avoid an impression that basic income is essentially a crisis or anti-poverty measure.

All these considerations, and many others, are harder to balance in moments of, respectively, opportunity and crisis.

In the Bien Conversations series, we hope to raise some of these and other issues through a dialogue that engages events, and their regional dimensions, whilst also brining the long-standing debates to bear on our reflections.

The format of the Conversations series will be a discussion of the news and events, combined with a focus on regional experiences and on topical issues, led by the anchors and with the presence of guests from around the world.

feature the growing public attention around basic income as a response to the Coronavirus crisis.

Louise Haagh, BIEN Chair

To watch the video, click here.

 

 

 

 

 

 

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A corona is the halo of light during a solar eclipse

A corona is the halo of light during a solar eclipse

Time for a new story

A corona is the halo of light around the solar eclipse. The coronavirus crisis can ensure a more balanced economy. Care and solidarity must support our economy and society.

Under a crystal-clear sky and the chirping of birds, our economy glides into a state of slow motion. Foremost, the virus is a drama and poses a great risk for society and its people. Next to that, it is also a strange experience. It is quiet, mostly dogs with their owners populate the streets. 

Only “vital functions” are fulfilled. Non-vital employees have to stay at home or work from home. They are not really necessary. Childcare is only available for people who work in healthcare, and other employees that we really cannot do without. The rest must arrange childcare themselves. Raising children is a vital function in society, and suddenly childcare is too. 

This is remarkable. Our view of the economy and income is rapidly changing. Our values change. The term “Working Netherlands” takes on a different meaning than before. Our health is number one, and better-paid employees sit at home these days. We have traded shopping for a quiet walk. Nature makes itself heard, people no longer dominate everything.

Crucial reflection

And that new reality leads, next to all the illness and disruption, to crucial reflection. Considering how we have organized our society and our economy. We reflect on the value of well-paid, low-paid, and unpaid labor for the economy and our society. We reflect on the value of (working) time. And we reflect on what everything is all about.

Ever since the coronavirus spread throughout the world, there is great appreciation for the people who work in healthcare. Everyone now sees that these vital functions are worth a lot, but that at the same time they are not the highest-paying jobs. 

It started with applause from balconies in Spain and Italy, followed by applause and flags in the Netherlands. A standing ovation. Professionals take care of the sick and are at risk themselves. This crucial interest is now visible and visibly appreciated.

In addition, there are care activities that are not paid. We also applaud all these unpaid people! Unpaid care activities, such as care for children, family, for the earth, the environment, social contacts, and culture, are vital as well. And this is more visible as well. In this time of crisis in the Netherlands, we are seeing more solidarity and more unpaid voluntary initiatives.

A different world

The current old economy is being hit hard, and we will soon have to deal with it when this is over. We are curious to hear what Prime Minister Rutte will say on behalf of the national government. Will it again be: “Buy the car you wanted for a long time”, trying to stimulate consumerism? Or does this crisis bring a different vision and a different world closer than ever?

Will there be a reflection on our incomplete society with our focus on rules and procedures? We need a vision of how we can organize society differently. A society where not money but people are completely central again. 

Once again: paralyzing the current economy gives us time to reflect on this and think about a different economy. An economy in which we realize that it mainly consists of services and care. An economy in which solidarity and security of existence are paramount.

Making unpaid work visible

The crisis is a disaster, but it also shows us where we come short. And it brings up essential questions. How can we take better care of each other? How can we take better care of our Earth? How can we also make unpaid intrinsically-motivated care work visible in our economic model?

We should think about care credits. Some examples: a pension for unpaid caregivers, a universal global price for oxygen, better reimbursements for volunteers. And yes, we should consider a universal basic income.

These proposals and ideas can be a lever for changing values ​​and appreciation for all the (unpaid) care work and solidarity that is now visible in this crisis. And these measures can be a safeguard to achieve a different society and a new economic model. Because there is no one who has never been taken care of, and everyone will ever take care of someone.

A corona is the halo of light around the solar eclipse. A fragile light shines behind the dark. The coronavirus crisis can provide a more balanced picture of the economy. It is not the banks and stock markets, but it is solidarity and care that support our economy and society.

It’s time for a new story.

 

Jan Atze Nicolai 

Political thinker and poet

Member of the Board of Vereniging Basisinkomen (BIEN member)a