What is the core ‘basic income issue’?

What is the core ‘basic income issue’?

What’s the deal with this basic income issue? Why is it so difficult to push it forward? The reason, it seems, is deeply rooted within the human psyche. As Will Hutton put it, “humans believe that reward should follow proportionate effort”. This is the question, is it not? Hutton argues that we humans are hardwired for this relationship between work and gain, and that’s final. There’s no overriding it. No pain, no gain, like they say. Let’s debate this.

If I go camping with some friends, I’ll be pleased if everyone helps around with cooking, cleaning, setting up the tents, chopping up some branches for the fire and so on. And I’ll object to anyone just sitting around while everyone else is busy setting up camp. That is because the work involved can only be made by people, by the campers themselves, for their own benefit. It’s a team, and it’s only fair that all players team up to set a camp they will all benefit from.

Now let’s assume these were a high-tech team of campers, who had brought automatic setting tents, a battery driven portable cooker, a cleaning robot, and a complete set of canned food. How much labour would there be to distribute among the campers? Maybe just putting the tents in their places (these would setup automatically from there), turn on the cooker and open a few cans. That could be done easily and quickly by one person, maybe two at most. What about the others? Well, maybe it’s best if they just sit around and sing a few songs, dinner will be ready shortly. Doesn’t sound wrong to me.

The role of technology gets rather obvious in this simple example. Humans are not hardwired to relate work and gain. Humans are just wary of working more than they should if others are not helping out. But if machines are doing that, it ceases to be unfair. Besides, if machines are helping and there’s no sense in having six people pressing tent buttons and opening up food cans, I don’t mind doing that today and tomorrow someone else will do it. And then I’ll sit comfortably playing my guitar, without the slightest shadow of a guilt.

Another issue is that it may be so that some humans “believe that reward should follow proportionate effort”, but certainly not all of them. There are people that, living off rents – from land, houses, shares in corporations or financial assets – do not feel shame, or guilt, or any sense of responsibility towards society. And are humans nonetheless. Humans are not hardwired this or that way. We are a product of our environment and particular circumstances.

Still another aspect of this discussion is heritage. Is it not true that everyone, and I really mean every living human being on the planet, is born into a huge lineage of natural and social evolution? A new born human being doesn’t have to reinvent electricity in order to have a lighting bulb in the living room. Doesn’t have to rediscover the written language in order to communicate. Doesn’t have to make concrete from scratch to make a house. Human societies make this already existing wealth more or less accessible to individuals, but it’s undeniable that this wealth, natural or social, exists. And it’s just there for the sharing, grown and perfected over millions of years of evolution.

The fact that we have failed in that sharing for a long time, as a global society, it’s an entirely different matter. The truth is just that each if us is born into a bounty of global richness, without having contributed to it. That’s not debatable, it’s just a fact.

So how many arguments are there against basic income? It seems to me that, at bottom, only one really. Because once you accept that all humans are entitled, as their human right, to access the wealth of the natural world and the work of countless human generations before you, you’re already defending basic income on moral grounds. There’s no way, no matter how you look at it, that a person can do a “proportionate effort” to ever compensate for that he or she receives just for being alive. So let’s just get passed this annoying and fundamentally flawed argument.

After that one can ask oneself: Basic income is great, but how are we going to finance it? To be clear, a financial issue cannot be used as a fundamental argument against basic income. Financing is about distribution of power. Money is an agreement, and people can agree otherwise. Financing is, therefore, a challenge which comes from living together in society.

Different people have different perspectives and feelings over things, but if they agree among each other that the distribution of the natural and social wealth should be made to all, as a human right of existence, then the money will appear. Some will say as by a “miracle”. A miracle within an obsolete mindset, a natural consequence from an evolved, more inclusive and expanded view of the world.

Once you have accepted basic income on moral grounds and found a way to finance it – which is the same as bringing enough people to support its implementation – you might still ask: but what if this idea is hijacked by the far-right liberals, who just want to kill the commons, bury the welfare state and privatize everything? That amounts to asking: what if some dictator takes power and turns an imperfect democracy into a perfect dictatorship? For which I reply: we must be active and aware.

Democracy is not a system set in stone and we must always be defending it and contributing to it. Anything can be turned into a weapon by a wicked mind. Or basic income can be turned into a privatization-of-everything tool for a radical right-wing agenda. That risk is always there. It boils down to us, every conscious individual supporting basic income and knowing how to finance it, standing for democracy at all times.

Basic income can only help all people if it is democratically supported and implemented.

More information at:

Will Hutton, “Utopia for realists: and how we can get there by Rutger Bregman – review”, The Guardian, 13th March 2017

US: Step by step implementation of basic income

The following is a step by step instruction for implementing a basic income in the United States.

Step 1: The government introduces a basic income of $40 per month for all citizens. 300 million of the 325 million inhabitants are US citizens.

The required funds are $40 x 12 x 300 million citizens = $144,000 million, $144 billion.

This is financed by a levy of 10 cents per kwh of electricity consumed by households, which is 1,440 billion kwh per year. So the levy amounts to 1,440 billion kwh x $ 0.1 = $144 billion.

Since all people who get the basic income consume electricity, in a way, they pay this basic income to themselves. However, big users of electricity will contribute more than those who consume less. Think about it. Electricity allows you to have a smartphone, a PC, a fridge, and even drive long distances with an electric car at a ridiculous cost. Yes, you will need to get surge protection (like that saltle.com/electrical-services-austin-tx/whole-home-surge-protection/ offer) to help keep those things safe, but the benefits outweigh the cost for most. Besides, the current price of electricity is much lower than its value.

Step 2: We increase the basic income with another $60 per month for everybody to reach $100 in total. The required funds are $60 x 12 x 300 million citizens = $216,000 million or $ 216 billion.

Financing

Most “productive” jobs are now done by machines which have replaced many of the workers in our factories. Stop dreaming of deriving social security contributions and income taxes from new jobs: 80 % of the GDP of the US are services, many of which have added value too low to contribute taxes. We should get taxes from the machines/robots which replaced the workers. However taxing robots would make them move to other countries where there are no taxes on robots. Therefore, we should not tax the robots themselves, but the products made by machines/robots, like cars, bikes, shoes, phones, PC’s, games, toys, furniture, carpets, fridges, and so on. That way, it doesn’t matter if the robots are in the US or China. Consumers will pay more for those products, but on the other hand they also will get an additional (basic) income to pay for such products. Those who spend more than others will contribute relatively more taxes. That is the beauty of taxes on consumption: you decide yourself how much taxes you pay, depending on how much you purchase. In the US, current sales of products which are typically and mainly produced by machines/robots are approximately $1440 billion. We introduce a “social” sales tax of 15% (on top of exiting sales taxes) on those products which will generate the required $216 billion.

You could argue, what is the point to give a total of $100 per month basic income to all citizens, if, on average, they spend it in increased prices of electricity and some goods? The point is that people who buy a lot contribute much more than the ones with a low income. Thus, it comes down to a (more or less voluntary) redistribution of purchasing power.

Step 3: The government will pay an extra basic income of $100 per month for all citizens of working age, 18 to 70, paid by employers. This will cost $100 x 12 months x 185 million citizens in this age group = $222 billion.

We finance it by a levy of 10 cents ($ 0.1) per kwh on non-household electricity consumption. So essentially, the electricity consumed by enterprises or other entities which typically employ workers. This comes down to $ .1 x 2,380 billion kwh = $238 billion paid by the employers since they pay the levy of 10 cents per kwh of electricity consumed by them (including residential, industry and transportation).

At the same time, the employers compensate this extra tax by reducing the wages of their employees with the same amount. For a worker who previously was paid $1700 net per month, his new wage bill will read: basic income grant $100 paid via the government (thanks to an extra tax paid by enterprises) + $1,600 net salary = total income $1,700. So, the total net income of the workers remains the same, the total cost for employers remains the same too. Electricity gets more expensive, wage cost less expensive.

Step 4: We increase the basic income with $200 per month for all citizens of working age, 18 to 70, paid for by employers, while at the same time the employers can reduce the wage bill with the same amount (as in step 3).

The cost is $200 x 12 months x 185 million citizens in this age group = $444 billion.

This is financed by a levy of 3 cents per kwh on gas and coal sold to industry, transportation, commercial and residential. This does not apply to such fuels sold to generate electricity, otherwise electricity would be taxed twice. Given the energy consumption of fuel, gas and coal for these sectors, this generates $ .03 x 16,617 billion kwh = $498 billion. The margin between $498 billion and $444 billion will be necessary because consumption will decrease given the increase in cost. CO2 emissions will improve, by the way. For fuel, the additional tax amounts to +/- $1.05 per gallon. Think about it. With one gallon of gasoline you can drive 40 miles. Imagine you need to walk or ride a horse or use a bike in bad weather. The cost of fuel, including for air travel, is indeed ridiculously low.

Step 5: We increase the basic income with $1,000 per month for all citizens over age 70.

The required funds are $1000 x 12 months x 28 million people = $336,000 million, $ 336 billion.

This is financed by a decrease of military spending of the same amount over a period of 10 years, 30 billion per year, such that, in the end, for each military dollar spent we also give one dollar to the elderly.

Indeed, is it ethically acceptable to spend money on defence and not spend the same amount to support our elderly people? A fair deal is that for each dollar spent on military matters, another dollar should be distributed to them. Of course we cannot decrease military spending in one go. Therefore, this step counts as 10 sub-steps in which we decrease military spending by $36 billion per year over 10 years, moving the yearly military spending from $672 billion to $336 billion, which is still five times more than the current Russian military spending. Because military veterans will get basic income like other citizens, it will become a part of their compensation. The expense to the military budget would be reduced with the same amount.

Elderly people can be seen as being pushed aside in society as they age, so it is important that their care is constantly looked at to see that they are getting the best care for their age and their disabilities/illnesses, otherwise, they could be overlooked causing terrible outcomes. This type of care also comes with a lot of additional needs that have to be used by carers, for instance, the use of NDIS software solutions is important for keeping on top of billing, timesheets, etc. so that everything is regimented. This, as well as other elderly care services, is an important factor and must not be overlooked by those within this industry. This goes to show how important it is to have financial backing within these areas.

Step 6: We increase the basic income with $200 per month for the age groups 0 until 17 and $400 for over 64. This relates to 70 million citizens of under 18 and 46 million over 64.

The required funds are $200 x 12 months x 70 million + 400 x 12 months x 46 million = $389,000 million, $389 billion.

The basic income per age category per month in total then becomes:

0 to 17: $300 (steps 1, 2 and 6)

18 to 64: $ 400 (steps 1, 2, 3 and 4)

65 to 70: $ 800 (steps 1, 2, 3, 4 and 6)

70 and older: $ 1500 (steps 1, 2, 5 and 6)

This step is financed by using most of the budgets for welfare since the basic income system gives a higher purchasing power to them. In 2016, welfare spending was $430 billion. Only an average of 25% of the funds went to cash assistance. The problem with the means tested welfare system is that the administration necessary to do the testing takes up a huge part of the budget. Wyoming currently gives the highest benefit to TANF families (a single parent with two children): $657 per month. Worst case, it compares with $300 x 2 +$ 400 = $1000 from the proposed basic income scheme above. The basic income system advantageously replaces the welfare system in any of the 79 existing systems. The food stamp system for example emerged in 1939, when the cost of food was still very high in household budgets, especially for poor households with many children. Food is now very cheap compared to then.

Step 7 When looking at further opportunities to fund basic income, we should look at inefficient parts of the US economy.

By far, the most inefficient part is health care. Not only because medical doctors have a nice income, generally speaking, but because the US health consumer not only pays for the health care itself,he pays also for the insurance people as well as lawyers and other legal people involved in disputes. No wonder the cost of health care per inhabitant in the US is twice as high in comparison to European countries. In France for example, there are no legal and insurance parasites draining the standard health care system, which is directly organised by the state. And even that system is not efficient, because there is a lot of overconsumption in France. The current cost of health care in the US is $3,300 billion including the $ 1,520 billion paid for by government.

Education is an outdated economic sector. The recent IT and internet revolution did not induce many institutions to review their business model. The “productivity” of the learning process would be less than 10% if measured by standards used in industry. Currently, until age 16, schools serve two purposes: education and babysitting. Lots of things in education should be re-engineered. If education were to be invented today, would we build schools? Would we have classes of pupils all the same age yet with different knowledge and skills? What about virtual classes, at least part-time? The cost of education funded by the US tax payer is $960 billion.

The US has the highest cost per student world-wide, after Luxembourg. Just recently, in an address in May 2017 at Harvard, Mark Zuckerberg, the founder of Facebook, said we should introduce basic income. He also said that the time has come to introduce lifelong personal education, which we can refer to as “coaching”. Now think about it. Health depends a lot on education, not the least our mental health. While health care should evolve from curative to preventive care, there is a huge synergy between education and the future of health care, to the extent that they should be regarded as one and the same venture. Therefore, the government should move the budgets for health care and education to private “care organisations” or “coaching organisations”, which should offer lifelong health care and education to their “members” while government pays the member fees. We can do that by using the current government budgets for health care ($1,520 billion), education ($960 billion) and pensions ($1,380 billion). Mind that the basic income for > 70 will be $1,500 which is higher than the current OASDI benefits) and therefore replaces OASDI to a very large extent. Possible residual differences in income need to be covered by the coaching organisation. The budget of $3,860 billion dollar amounts to $1,070 per citizen per month. When comparing with costs of education and health care in well managed countries, this looks like a good business opportunity for enterprises which want to become active in the social economy. Obviously, the cash obtained by these coaching companies from the government may differ depending on some characteristics of the members, like age. Citizens who want to change from a coaching service provider should face some penalty since continuity is important to provide a good service.

A possibility to launch such a system would be for the government to organise a tender offer followed by the granting of licences to big system companies willing to apply. There are several such companies well positioned to tap this new market. Think of IBM, Microsoft, Oracle, GE, Intel, Google or Facebook. They could design new health care/education products and bring those services to the market while using subcontractors, which they would manage. A special US problem has to be dealt with to make that possible. Legal proceedings and the “insurance” logic are not part of such a model. Those who want to keep the ability to sue teachers and nurses in court should continue to use the current private health care/education system.

Conclusion: Basic income can become the core of the social security system in the US. This is just an example of how it could be done. The guiding principles in this proposal are:

-Basic income is linked to citizenship combined with residency in these calculations. Other options imply other numbers.

– Money is not falling out of the sky. The sources of funds to finance each step are identified and realistic.

– Information sources for energy: https://www.eia.gov/energyexplained and https://en.wikipedia.org/wiki/Energy_in_the_United_States

– A step by step approach may lead to the recognition of the viability of a significant number of steps.

– A basic income is a “social dividend”. Just as the shareholders of enterprises get a dividend because they own shares, all citizens derive a right to get a social dividend because their parents and grandparents have put a society in place which is able to produce a large surplus of food and goods, such that we can pay a dividend from this surplus to all citizens.

– The basic income replaces, to a very large extent, the current social security and other benefits. For those who have a job, and the companies employing significant numbers of workers, the net effect of the introduction of a basic income system should be, more or less, neutral. When employees get a basic income from the state which replaces a part of their salary, the cost to the employer will be lower with the same amount (at the moment of the transition). However, the employers will be faced with an increase in other costs due to new taxes which will be levied to pay for the basic income.

– The basic income is distributed electronically, for example via an automatically charged debit card. It could actually be a smart phone if properly protected. Government can organize a bid process for organisations willing to distribute the money one way or another. It is highly likely technology businesses or communication operators would apply to distribute the basic income. However, it could be banks as well, or big retailers. It is likely that the cost of the distribution of the basic income to the government would be around zero. It could even turn out to be a small revenue for the government, when interest rates move up again.

– After a while the basic income should be disconnected from a precise mechanism of funding.

– The basic income should evolve with the cost of living. It would make sense however, to use it as a tool to influence the economic cycle – increase the basic income to increase demand; wait to increase it if the economy gets overheated.

Summer Speaking Tour 2017

Overview (details below)

June 15-18, 2017: New York, NY
June 20-21: Brussels, Belgium
June 27-29: Sheffield, United Kingdom
July 5-7: Stockholm, Sweden
July 9: Oslo, Norway
July 11: Haugesund, Norway
July 27-29: St. Louis, Missouri/O’Fallon, Illinois
August 15: Canberra, Australia
August 16: Sydney, Australia
August 17-18: Melbourne, Australia
August 31-September 1: Reykjavik, Iceland
September 25-27: Lisbon, Portugal
November 14: Doha, Qatar

So many conferences and seminars have agreed to let me give talks this summer and fall that I’m calling my usual working vacation a “Speaking Tour.” It’s (tentatively) 21 talks in 14 cities in 9 countries, which sounds like a lot, but it’s spaced out over 5 months interspersed with regular work at my job and/or vacation days.

I’ll discuss a variety of topics including the cost of Basic Income, why Basic Income is so important, a property theory I call Justice as the Pursuit of Accord, a criticism of influential political theories I call Prehistoric Myths in Modern Political Philosophy, the political economy of Basic Income trials, and more. It sounds like a lot, but it’s based on work I’ve done over the last ten years or so.

It’s a hectic schedule, but I feel extremely lucky to be able to do this. All of the travel is sponsored either by my university or by institutions. If my expenses are paid, and my boss gives me time off, I’m willing to travel a lot more than this.

Most of these events are open to the public and most of them are free. So, if you’re anywhere near any of these places, meet me there. Come, tell me where I got it wrong. I’m looking forward to discussing some issues.

Event details

June 15-18, 2017: New York, NY: “The 16th North American Basic Income Guarantee (NABIG) Congress

  • June 15: 4pm: Interview with “Income Outcome,” a feature documentary on UBI (prerecording)
  • June 15: 6-8pm: Featured speaker, “Opening Panel of the NABIG Congress,” Roosevelt House, Hunter College
  • June 17: 10:20-11:50am, Presenter, “The Cost of UBI: Back-of-the-Envelope Calculations,” Silberman School of Social Work, Hunter College

June 20-21: Brussels, Belgium: “Conference: Why Private Property? Politics of property and its alternatives

June 27-29: Sheffield, United Kingdom: “Association of Social and Political Philosophy 2017 Annual Conference

July 5-7: Stockholm, Sweden: “Economic Ethics Network Annual Conference” (invitation only) at the Institute for Futures Studies

July 9: Oslo, Norway: BIEN Norway

  • Date & Event TBA

July 11: Haugesund, Norway: BIEN Norway

  • Date &Event TBA

July 27-29: St. Louis, Missouri/O’Fallon, Illinois: “The 37th Conference of the Council of Georgist Organizations

  • June 29, 10:30-11:45: Featured speaker, “The People’s Endowment: Common Resources and Basic Income,” Hilton Garden Inn, O’Fallon, Illinois

August 15: Canberra, Australia: Basic Income Guarantee Australia events

  • Morning: Featured speaker, workshop with MPs at Parliament House, details TBA
  • Evening: Featured speaker, public event, details TBA

August 16: Sydney, Australia: Basic Income Guarantee Australia events

August 17-18: Melbourne, Australia: “Basic Income Guarantee Australia Workshop on Basic Income”

  • August 17: evening: Public forum, events TBA
  • August 18: Featured speaker, details TBA

August 31-September 1: Reykjavik, Iceland: “Nordic UBI Conference: Basic Income and the Nordic Welfare Model

  • September 1, 11:30am-12:10: Featured Speaker, “The Political Economy of Basic Income Trials,” Nordic House, Reykjavik
  • September 1, 1:30-3pm, Panelist “Panel Discussion,” Nordic House, Reykjavik

September 25-27: Lisbon, Portugal, “17th BIEN Congress: Implementing a Basic Income

  • September 25: Presenter, “The Political Economy of Basic Income Trials,” Portuguese National Parliament, Lisbon, Portugal

November 14 (Date to be confirmed): Doha, Qatar: Faculty Seminar

https://i0.wp.com/img.evbuc.com/https%3A%2F%2Fcdn.evbuc.com%2Fimages%2F29613203%2F105749844187%2F1%2Foriginal.jpg?w=1080&ssl=1

I had something like a basic income; here are nine ways it influenced my views

I had something like a basic income; here are nine ways it influenced my views

For me, a job-unconditional basic income guarantee was simply a part of the life to which I grew accustomed as a young adult. In this piece, I describe how this experience has influenced my hopes and expectations concerning the effects of basic income as a policy.

The Author (circa early Graduate School)

Entering college as a scholarship student, I moved directly into a life in which I received a monthly living stipend that was not conditional on holding or looking for paid employment. There were, of course, some other conditions on the funding; I was, for instance, required to take classes at the university and make “sufficient academic progress” by some measure.

However, my “salary” was not contingent on anything that felt like being employed: I didn’t need to keep 9-to-5 hours, work in an office, report to a boss, or dress professionally — and, most importantly, I didn’t have to plan any aspect of my life around the question “What will people pay me to do?” I just took classes that interested me, which I invariably selected without consideration of the potential “market value” of the knowledge and training.

After about six years of such a lifestyle, I entered the “paid workforce” as a graduate teaching associate, an arrangement in which monthly pay continued to feel more-or-less disconnected from work, despite the addition of some new obligations. Now in my 30s, I’ve never worked a full-time job or signed an employment contract for more than a year — and I’ve continued, for the most part, to keep my deliberation about how to lead my life at a remove from questions of how to make money.

Certainly, there are significant differences between university scholarships and fellowships and a true basic income. Moreover, I am but one person, and individual cases are sure to vary considerably. Nonetheless, I believe that I came to adopt a lifestyle and internalize a mode of thought similar to what might be encouraged by a basic income.

This present piece is not an argument for basic income. On the contrary, it functions in part as a disclaimer on my own support for the idea. Of course I support a basic income, one might conclude; a basic income would help to sustain a lifestyle like the one to which I’ve grown accustomed, and it is difficult to give up what one has known and enjoyed. It is also an partial explanation of why I came to certain specific views and conjectures about the potential merit and effects of a basic income.

The following are nine conjectures about basic income that I developed due to my own experience:

  1. It would be easy to take a basic income for granted.
  2. A basic income might prevent the conflating of work (and worth) with paid labor.
  3. A basic income can promote lower consumption in the long-term.
  4. A basic income would facilitate living without long-range plans.
  5. A basic income could allow precarious jobs to be the most appealing jobs.
  6. A basic income could enable social isolation.
  7. A basic income would not “cure” anxiety.
  8. A basic income could enable individuals to make no useful social contributions.
  9. A mere “personal basic income” can make one feel alien.


1. It would be easy to take a basic income for granted (no pun intended).

This, I believe, is the crucial lesson, and it lays essential groundwork for all that follows.

When basic income proponents ask “What would you do if your income were taken care of?” they want the audience to fantasize about the myriad benefits a basic income could confer upon their lives (and, ideally, to imagine the ways in which they could use their good fortune proactively).

But when a guaranteed basic income is all one has ever known, it doesn’t feel liberating. It doesn’t feel special. It doesn’t spur one to better oneself. It is simply part of the ordinary state of existence, a silent component of the background conditions for everyday life.

When I headed off to college, I didn’t think, “Hey, cool! I have free tuition, a living stipend, and I’m relieved of working in a job; I think I’ll really make something of myself and contribute to the world!” No, not at all. Instead I thought, “Hey, cool; I have a living stipend! Now I’ll continue taking classes, as always, but I’ll get to live alone in my own apartment!” Arguably, the main effect of my job-unconditional income was to enable me to retain the mentality of a studious high-schooler: I ?took for granted that my basic needs would be met, that my main purpose was to study and learn, and that a job would just be a burden.

Of course, by contrasting this experience with that of those who lacked such financial good fortune, I can come to see that a basic income (or full-ride scholarship) entails freedom from much stress and overwork, and, in principle, opens the door for great accomplishments. However, I never truly felt freedom or relief, for I never knew a “before time” when I lacked my income guarantee.


2. A basic income might prevent the conflating of work (and worth) with paid labor.

I am ceaselessly baffled by the contention that people need jobs in order to feel a sense of purpose and self-worth, as well as the frequent assumption that when individuals are not at work in a job, they are idling away their time in passive leisure.

None of this is natural. Indeed, it is not what we learned as children. As children, we did not hold jobs, and yet our time was not one homogeneous block of undifferentiated recreation. We did not work for pay, and yet this did not entail that all of our activities were worthless.

Gulf Coast Regional Science Olympiad

When we were children, we had our schoolwork, which we were generally supposed to prioritize. We might also have had some organized extra-curricular activities like sports, band, debate, drama, or Science Olympiad, or various clubs in our schools, churches, and communities. These organized activities were also generally encouraged by our elders, as long as we did not pursue them to the detriment of schoolwork. Finally, we had “free-time”–and, even then, certain recreational pursuits (e.g. reading novels) were told to us to be more worthwhile than others (e.g. playing the Nintendo).

We were paid for none of this, of course, ?and yet we did not conclude that our activities were thereby equally valuable (or, perhaps better put, equally valueless).

Moreover, when we did grow old enough to take jobs, unpaid schoolwork (mark that: “school-work) was usually still considered more important than paid job-work. We were subject to censure by teachers and parents if our paid work compromised our performance in our unpaid work.

At some point, apparently, many unlearn these truths that still seem obvious to me–that paid work and passive leisure are not exhaustive categories, that unpaid activities can be valuable, that unpaid activities can be work, and identify and self-worth can be found outside of the labor force–though, to be sure, I don’t know precisely when, why, and how this unlearning occurs. If the necessity of finding paid work is a contributing influence, however, then it might be said that a job-independent guaranteed income helped to prevent my unlearning of these truths.

As I said above, I was able to continue to live with (roughly) the mentality of a high-schooler, taking for granted that my basic needs would be met, that a job would just be a burden, and that my main purpose was to study. That said, there were occasions when I’d find myself with extra time, feel uninspired to make any productive use of it, and think to myself, “Well, I might as well take up a part-time job…” In these times, however, paid employment always felt like a path of last resort, a last-ditch effort to mask a transient but troublesome feeling of unproductivity or worthlessness. I could (and did) justify job-hunting by telling myself, for example, “I will earn money to save so that I can ‘buy more freedom’ for myself in the future, once my inspiration has returned.” Nonetheless, I would continue to feel somewhat ashamed of my failure to find my own intellectual or creative activities to which to devote my time; a job always seemed like something of a cop-out.


3. A basic income might promote lower consumption in the long-term.

My personal experience is the main reason that I have become interested in the supposition that a basic income could encourage degrowth. Because I entered adulthood with something like a basic income, I grew accustomed both to minimal consumer spending (since my stipends afforded only a basic “no frills” lifestyle) and to substantial freedom and flexibility in structuring my time.

Yes, the thought more money and greater purchasing power was (and is) often alluring; however, I never found it sufficiently attractive to tempt me to pursue a lucrative career. Instead, since I have always had the option of greater freedom, I have almost invariably chosen it–even though this has required me to content myself with significantly less consumption than a well-paying job (or even a modestly paying one) would have allowed. And this, importantly, has never felt like a sacrifice. I truly believe there is no salary high enough to motivate me to work a 40-hour job for the next 30 years–as long, that is, as it remains possible for me to afford my basic needs while spending little or no time in standard structures of employment. Having grown to know and cherish it, I feel my freedom has no price.

Tiny Home, CC BY-NC 2.0 Todd Lappin

It is significant here, though, that this “basic income lifestyle” is simply the life to which I adapted; it is, in essence, all I’ve known. I doubt that many individuals who earn, say, $40k per year in full-time jobs (an amount well beyond my highest annual earnings, yet slightly below the US median individual income) — let alone those with higher earnings — would want to leave their jobs to live on the much more modest amount of an unconditional basic income. For many, working a full-time job has become a natural part of life, and so has the lifestyle that their salary can afford.

It is difficult to give up the pleasant aspects of a lifestyle to which one has grown acquainted — whether this is freedom and flexibility, as in my case, or more lavish consumption, as in the case (presumably) of many individuals with full-time jobs in successful careers. Meanwhile, it is fairly easy to persist in something that has come to feel like second nature, even if mildly unpleasant, whether frugality in consumer spending (as in my case) or the confines of standard employment (as for many others).

A lifelong basic income has the potential to transform that to which individuals become habituated. It is on this basis that I conjecture that a basic income has the potential promote lower levels of consumption and economic growth.

This is also, incidentally, one reason for which I am skeptical about the ability of basic income pilots to reveal anything interesting regarding the long-term effects of an income guarantee on labor and consumption. If a person begins to receive a basic income after having already grown habituated to full-time employment and the lifestyle of earning-to-consume, then it might be highly unlikely that she would choose to leave the paid workforce and subsist on her comparatively meager basic income payments. But the situation could be much different in a society in which youth begin to receive a basic income before they have experience as either full-time laborers or high-volume consumers.


4. A basic income would facilitate living without long-range plans.

“Stop No Path This Way” CC BY-SA 2.0 Mark Longair

It is sometimes argued that a basic income would better enable individuals to plan for the long term, given its ability to mitigate the scarcity mindset and survivalist thinking engendered by poverty or economic insecurity (see, e.g., Louise Haagh’s article “Basic Income’s Radical Role” in Social Europe).

It has been my experience, however, that work-independent financial security can also produce the opposite effect: if one is guaranteed long-term economic security, then one is thereby relieved of the need to plan job and career goals oriented towards minimizing the chances of future economic hardship. Indeed, if one knows that one has long-term financial security, then one needn’t plan for the future at all, economically speaking, as long as one is able to live within one’s “basic” means. In other words, a stable and reliable work-unconditional income can permit individuals who might otherwise plan and act upon long-term career goals to think only in shorter terms, pursuing present interests with little or no concern for how these present tasks might promote employment or career advancement in the future. This is, at least, how I have always lived, continue to live, and desire to live.

The idea that basic income can enable risk-tasking is nothing new or unfamiliar. Notably, Facebook CEO Mark Zuckerberg recently recommended consideration of the policy for precisely this purpose. Most commonly, however, this idea is raises in arguing that basic income can promote entrepreneurial activities, in which the risk is assumed for the sake of pursuing a specific long-range project or goal. But deliberately and intentionally living without a plan — choosing to remain open and adaptable to unplanned opportunities and the ever-changing natural flow of life — is itself a type of “risky” lifestyle.

Those with conventional “careerist” values might read the above passage as admission that the feeling of financial security provided by a basic income can be mentally and morally degrading. It seems that many consider it a mark of good character to plan for the future and devote oneself to long-term career ambitions–and a character flaw not to do so.

I can only ask, then, that we critically reexamine the moral importance we place on career-oriented thinking. I have personally embraced my relative economic security as way to eschew careerism — to live and work in a way that is maximally flexible and adaptive to my evolving interests, abilities, social networks, external demands, and whatever unanticipated possibilities may arise. For me, this may be the single most liberating thing about my lifestyle — as well as the key source of my excitement and fascination with life — and I am hard-pressed to see it as wrong.


5. A basic income could allow precarious jobs to be the most appealing jobs.

As I mentioned near the outset of this piece, I have never worked a full-time job or signed an employment contract longer than a year. And this is no dismal fate but, rather, my ingrained preference and my incredible luck. It is one of my greatest hopes to maintain this lifestyle for as long as possible, primarily due to the flexibility that it allows, and its ability to sustain the “anti-careerism” described in the above section.

Having grown used to a stable but basic income, I have acquired a taste for jobs that can be picked up when in want of extra spending money and abandoned as quickly as possible after the desired sum of money has been obtained. I often found it desirable to earn a little more than my basic living stipend; at the same time, as discussed above, I could never imagine relinquishing freedom and flexibility for a full-time and permanent job, even a well-paying one.

“Gig Economy Graphic” CC BY 2.0 Mark Warner

Traditional full-time permanent positions seldom permit employees to work just enough to gain a desired sum of income — much to the frustration of those of us who identify with Max Weber’s classic description of the pre-industrial piece-rate worker: “A man does not ‘by nature’ wish to cam more and more money, but simply to live as he is accustomed to live and to earn as much as is necessary for that purpose.”

In contrast, “gig work” makes it easier to adjust the amount of one’s work to one’s desired income level, avoiding excessively confining commitments to jobs.

Proponents often speak of basic income as an “exit option” from employment, as if an independent source of financial security is enough to allow individuals to quit their jobs. But this strictly economic picture of employment obligations seems almost to fetishize money-making and downplay social norms in a manner reflective of the very status quo values that (in my view) a basic income should help us to overcome. The economic view of “exit” neglects the ethical importance of loyalty and trustworthiness: when I sign a contract, or otherwise give my word that I will follow through on certain tasks and duties, I consider myself bound to complete the work I have promised — irrespective of whether I am paid for that work, and irrespective of whether I can make a living for myself apart from that work. If one is under a long-term contract, the option of “exit” can pose ethical and psychological conflict even if one has the financial wherewithal to leave a job (and, we might add, even if one believes that one’s personal interest would be bettered by leaving the position).

That is, I have found that job flexibility is most easily attained not only by having access to a financial safety net but also by adopting more short-term and easily abandoned forms of employment. If a basic income enables individuals more easily to exit jobs, this is not merely due to its provision of a safety net but also due to the fact that this safety net allow individuals to avoid long-term contractual agreements in the first place (though I will admit that I myself am somewhat conflicted over the ethicality of this recommendation to avoid long-term commitment to employers).


6. A basic income could enable social isolation.

“The lonely woman” CC BY-NC-ND 2.0 Johan

In the spring of 2016, I managed the Facebook page of the US Basic Income Guarantee network. I recall sharing an article entitled “Will the Universal Basic Income make us lonely? (written by Oxford fellow Max Harris) and feeling rather disillusioned by the comments, which, I felt, often failed to engage sympathetically with Harris’s concerns.

Many commenters reacted as though the very suggestion that basic income could cause loneliness was utterly ridiculous. Some pointed out that (no doubt accurately) a basic income would permit many individuals to have a enjoy richer social life that they can currently manage. None replied that a basic income could indeed facilitate a potentially harmful reduction of social activity for some people. Although just a fledgling basic income writer at the time, I was inspired to write my own reply to Harris’s article, attempting a more charitable and nuanced treatment of the loneliness worry.

There was a reason that I took the loneliness worry as seriously as I did (and do): my own job-independent income helped to enable me to lead a life of fairly extreme social isolation. There’s little doubt that any sort of on-site job would have forced me to have more social interaction than I voluntarily chose during my college years. My nearly unconditional stipends permitted me to follow my natural tendency to seclude myself and work in solitude; a job, on the other hand, would have compelled me to act against it. To be sure, being very much an introvert by nature, I didn’t want additional social interaction. I didn’t feel lonely. Indeed, I would have objected vociferously if I had been required to relinquish my substantial alone-time, especially when busy with solitary work or other activities I found enjoyable. Its naturalness, however, doesn’t imply that my high degree of social isolation was healthy, and I later came to recognize that it was not.

We should admit that, in some cases, a basic income could facilitate unhealthy behaviors that a forced regime of paid employment could counter. Social isolation is one such behavior: some of us are disinclined to engage in social interaction when it’s not forced upon us; when it becomes voluntary, we naturally tend to abstain. With a basic income, then, we must force ourselves to do what, in other circumstances, the demand to earn a living might have forced upon us. We need to take it upon ourselves to ensure that we receive a healthy dose of social interaction — and sometimes, when it’s easier and seemingly “more natural” not to do so, we won’t.

Now, this is no more a reason to oppose basic income than “Some people won’t exercise if they aren’t forced to work in the fields” would have been a reason to oppose the mechanization of agricultural. But it is a possible outcome that does merit consideration.


7. A basic income would not “cure” anxiety.

In May 2017, basic income social media witnessed a viral spread of stories claiming that Finland’s basic income experiment was already showing a reduction in stress and anxiety. Although these particular stories apparently had their source in sensationalistic reporting of a single anecdote, the supposition that a basic income would reduce stress and anxiety is nothing new — and for good reason: economic hardship and income instability are major sources of stress and anxiety for many people (as is, on the side of the spectrum, overwork).

“Anxiety” CC BY 2.0 Kevin Dooley

At the same time, however, many cases of stress and anxiety are not attributable to financial insecurity, poverty, or overwork. I know this firsthand: I have never experienced great economic difficulty, nor overwork (other than that brought on by my own perfectionism), and yet I have been affected by generalized anxiety disorder.  Anxiety is an adaptable tormentor; it can find innumerable other potential sources of anxiety — as trivial as they might seem to others — to which to affix. 

I often grimace, then, when I read particularly roseate predictions of the ability of basic income to alleviate anxiety — or, for that matter, any mental illness. Quite likely, a basic income would present significant advantages to sufferers of mental illness, especially those whose conditions prevent them from working (or from working steadily in full-time jobs), when compared to current systems of conditional welfare benefits. It would allow people security in their lives, and give them the time needed to help them grow more stable. But a basic income is no panacea.


8. A basic income could enable individuals to make no useful social contributions.

I have spent most of my adult life as a professional student, receiving stipends to study, and choosing my courses of study with no regard for either employability or ability to contribute to society. And, to show for it, I have indeed made no great social contributions.

Certainly, I’ve never been the stereotype of the lazy person content to live on her basic income payments; I’ve never been one to spend my days smoking weed and playing video games. On the contrary, I have a natural desire to feel productive, including (perhaps especially) during weekends and holidays, and it must have taken years for me years to overcome workaholic tendencies that made it difficult to enjoy leisure activities from socializing with friends to simply gazing at a beautiful sunset.

But what it is to have the natural drive to “feel productive”? Well, for one, it can be a drive to further one’s own learning and development — irrespective of whether one uses one’s skills and knowledge in any way whatsoever for the betterment of others or society. By divorcing the means to a living from the demands of the marketplace, a basic income could better enable individuals to pursue art for the sake of art, science for the sake of science, and so on. For me, this has long been integral to the appeal of the idea — even before a “basic income” of sorts came to feel like an established part of my life. It must be admitted, however, that one consequence is that artists, scientists, and other self-motivated individuals would also be free not to publish or promote their work in any way, burying any potential social contributions. (And this is not to mention that a world of self-directed artists and scientists would still have a need for those who will tend to individuals’ medical needs, repair roads and bridges, clean sewers and collect garbage, and so forth. But that is another essay, for another time.)

I believe I’ve done well for myself: my life doesn’t lack for happiness, meaning, or identity, despite (or perhaps because of) my persistent low income and lack of anything resembling a stable career. Nonetheless, there is little doubt that I could have done better for the world. I was, for one, a pretty decent STEM student; it’s possible, I suppose, that I could already have contributed to great advances in technology to improve the lives of millions. Instead, having the means, I chose to spend years engaged in pursuits such as (for example) the study of a narrow sub-sub-field in contemporary analytic philosophy of language. Moreover, because I chose such activities merely for the personal intellectual challenge, I never bothered even to try to publish or distribute my work.

All that being said, I should mention that a basic income is not unique in permitting individuals to survive without contributing to society. Perhaps most obviously, we might imagine the “idle rich” living from inheritance, trust funds, and interest earnings. Moreover, and more importantly, the fact that an activity is profitable does not imply that the activity is socially beneficial (think of those who make a living in the “manufacture of demand” — getting people to buy things they otherwise wouldn’t even want — or, say, patent sharks). This does not imply, however, that tu quoque is an adequate response to the common concern that a basic income would permit free-riding on the societal contributions of others — for, simply put, a basic income would permit free-riding on the societal contributions of others.


9. A mere “personal basic income” can make one feel alien.

I have spent much of my adult life feeling like an outsider to much of my own culture — largely due to my rejection of career culture and other attitudes that I believe to have been engendered by the “BI-like” aspects of my early adult life.

I recall that, by the time I reached 20 years of age, I was already tired of living in a world in which success was equated with personal ambition or, more specifically, personal ambition as played out in a career in paid employment. There were those who wanted to advise me on how to achieve “success” and yet insisted upon projecting their own definition of that notion onto me. It felt, in those days, like there was no one with both the knowledge to offer good guidance and the open-mindedness to hear me out on my own interpretation of “success” and the good life. I embraced anti-careerism as part of my values and identity. I saw nothing inherently wrong with myself. I saw my situation as a case of organism-environment mismatch, and I was happy with the organism, just not the environment. Sometimes, when I felt particularly at odds with the job- and career-focused culture that surrounded me (but powerless to change it), the prospect of never contributing to society actually felt good — itself an act of rebellion.

Would my young adult years have been different ?if I had been born into a society with basic income already in place? Would I have been more eager to contribute my talents in a socially productive way if I had felt a less pronounced sense of “organism-environment mismatch”? I can’t say. Perhaps, even in utopia, all youth must go through their stage of rebellion and angst.

Still, I think, there’s an important point that transcends the rebellion and restlessness of youth: having a “personal basic income” in our present culture –? obsessed as it is with jobs, careers, consumption, and economic growth — ?is likely much different from having the same in a culture in which GDP is not the measure of societal success, income is not the measure of personal success, and education is encouraged for its own sake, not merely as a means to attain a good job. And, quite likely, it would take a universal basic income, or something like it, to pave the way for these latter large-scale cultural shifts.

What a financially self-sufficient individual would do in a society of financially self-sufficient individuals is different potentially much different than what the same financially self-sufficient individual would do in a society like ours, in which nearly all other people continue to rely on full-time employment as a means to earn a living.

In May 2016, campaigners for Switzerland’s basic income referendum presented the world with the “world’s biggest question: “What would you do if your income were taken care of?” Having lived with a job-unconditional income guarantee, however, I realize that there is a much bigger question: “What would you do if everyone’s income were taken care of?”


Reviewed by Tyler Prochazka.

Cover Photo: CC BY 2.0 Generation Grundeinkommen

UBI needs peers (part three): Reconquering work – inspiration from People’s Potato

UBI needs peers (part three): Reconquering work – inspiration from People’s Potato

(…) mental health cannot be defined in terms of the “adjustment” of the individual to his society, but, on the contrary, that it must be defined in terms of the adjustment of society to the needs of man,[highlighted in original version] of its role in furthering and hindering the development of mental health. Whether or not the individual is healthy, is primarily not an individual matter, but depends on the structure of his society. A healthy society furthers man’s capacity to love his fellow men, to work creatively, to develop reason and objectivity, to have a sense of self which is based on the experience of his own productive powers. (…) Society can have both functions; it can further man’s healthy development, and it can hinder it; in fact most societies do both, and the question is only to what degree and in what directions their positive and negative influence is exercised.” Erich Fromm (1956/1959)

This is the third and last part of a series of articles published on BI News, in which I call for accompanying a UBI with reforms in the domain of public interest services (please see the first and second parts). The analysis will help one to imagine how the work experience could be transformed to contribute to happiness in a UBI society.

In the current employment system, work organizations are rarely adjusted to human needs, such as self-fulfillment and meaning. In the article on Bullshit Jobs, David Graeber (2013) observes that the more a job is useful for society and able to provide a sense of meaning, the less it is rewarded in monetary terms. Furthermore, employment is an exclusive form of work organization. UBI could help transform work if accompanied by initiatives to create frameworks for useful and meaningful contributions. This paper draws on empirical research of a cooking collective known as People’s Potato. There are similar initiatives where work is distributed among volunteer –  for example, the global movement, Food Not Bombs, Les Petites Cantines, which are participative restaurants in poor neighborhoods of Lyon, or the Brooklyn-based food cooperative, Park Slope Food Coop, with about sixteen thousand member-peers.

Example of People’s Potato as a project of regaining work and producing commons

People’s Potato distributes vegan lunches for free at Concordia University in Montréal. It is managed by a workers’ cooperative.  However, much of the work is done by volunteers, who can come and go without notice and choose from available tasks. Three other publications provide more details (Gajewska 30 June 2014, Gajewska 2014, Gajewska 10 April 2017). In September 2014, I interviewed several students and non-students helping out in the kitchen. In this article, I will analyze the elements that attract volunteers to People’s Potato to illustrate the potential of advancing human happiness by creating spaces of spontaneous work contribution in the domain of services of general interest.

Work as source of meaning and belonging

Gerald Hüther (2015) defines work as a system of relationships (Beziehungsgefüge) that integrates an individual into society. In order to develop, our brain needs experiences created with other people, a shared undertaking and it is structured by these experiences. Many people simply are deprived of the opportunity to contribute work that has meaning with tangible results, that might enrich the lives of other people. Gallup data shows that only 13 percent of people are emotionally invested in their work. 63 percent are “not engaged”—in other words, simply unmotivated and unlikely to exert extra effort.  The remaining 24 percent are “actively disengaged,” or truly unhappy and unproductive. The United States and Canada actually have the highest engagement rate in the world. 29 percent of respondents from these countries reported that they are invested in their work, whereas only 14 percent of Western Europeans are (MacGregor 2013).

Volunteers that I interviewed indicated that doing something useful was an important reason to join People’s Potato. One woman mentioned that giving out food for free generates a spiritual satisfaction in her. Many participants stressed that they contribute because they believe in the cause. For one, the integration of handicapped volunteers, working with the other volunteers in the kitchen, was especially important.

The importance of having fun

How can work be organized so that no coercion is needed? Despite all the developments in the domain of technology and entertainment, Western societies seem to have lost the capacity and the conditions to play. In my view, this lack is one of the fundamental obstacles for changing the economic system. Therefore, it should become the subject of political debate and in-depth research to determine how to create a society based on play, not as a form of consumption but as a joy of engagement. Bob Black describes play in the following way: “Play is always voluntary. What might otherwise be play is work if it’s forced. (…) Playing and giving are closely related, they are the behavioral and transactional facets of the same impulse, the play-instinct. They share the aristocratic disdain for results. The player gets something out of playing; that’s why he plays.” (Bob Black 1996: 239).

Organizing work processes so that volunteers have fun is an important element of People’s Potato’s philosophy. For example, people often perform tasks in groups, close to each other, so that talking is possible. Once when we chopped the same vegetables for quite a while, the coordinator asked: “Are you guys still having fun?”

One participant in People’s Potato mentioned that he would continue to contribute at the cooking collective only if it retains its current non-hierarchical structure. Another volunteer said that she would not participate if the involvement felt like her regular job in a commercial gastronomy where she worked part time at the time of the interview.

Alternative work spaces for a healthier society

Loneliness is a health issue. Therefore, government should also think about policies that might limit the extent of isolation in our modern atomized society instead of subsidizing pharmacology and conventional medicine as the only solutions for health problems. Being a critic of modern civilization, Helena Norberg-Hodge demonstrates in her book “Ancient Futures” how the different organization of work in indigenous Ladakh society includes (or used to include) older people. Since there is no pressure, people can contribute at their pace and be part of a joyful community. She observed that, in this society, typical old-age diseases were rare and elders were well-integrated in this society, throughout their lives.

People’s Potato also creates conditions for different types of people to contribute and enjoy a community. Meeting people and interacting with folks outside of one’s studies were important reasons to come and help out. A Brazilian woman had been coming to the kitchen to integrate in Montreal, her new home, at the beginning of her stay. Eventually busy with new friends and activities, she came less often. For her son, an artist suffering from depression, volunteering at the People’s Potato gives structure to his days. Two women in their early twenties told me that they feel more at ease to meet and interact with people by joining collective work rather than going to a party. A young woman said that one of the reasons why she keeps coming to the People’s Potato is that they know her and she can keep in touch with people through helping out.

Bringing people together around useful tasks does not, however, automatically translate into deeper ties, even if they are crucial for health. Longitudinal research has shown that the quality of relationships does determine possible health advantages. One of the interviewees, an aged unemployed man, comes to volunteer to be part of a community. Yet, during eight years of volunteering, he has not managed to build stronger ties with other participants of the project. He wishes that people would notice him and be interested in keeping in touch outside of the kitchen. Unfortunately this did not happen.

Experimenting with work organization to prepare the ground for a UBI

People’s Potato’s alternative work organization exemplifies how a post-capitalist system of production could look and feel. In order to change the perception of and feelings about work shaped by the employment system, neurobiologist, Gerald Hüther (2015), proposes to re-condition the brain by creating positive work experiences. This is what People’s Potato’s team does. New forms of work organization can rewire society to manifest new ways of approaching work. These could be considered as laboratories of inner transformation to induce those attitudes and behaviors necessary to build a new kind of society. This new understanding of work could foster the ideological and mental foundation needed for an unconditional basic income society. In the interview published on basicincome.org (Gajewska 2016), I argue that a transformation of work and social relations to prevent substance addictions is a crucial element to prepare the ground for a UBI. We can convince opponents by prefiguring the well being that we strive for.

 

Black, Bob (1985): The Abolition of Work, “The Abolition of Work and Other Essays”, published by Loompanics Unlimited,

Fromm, Erich (1956/1959) : The Sane Society. London : Routledge & Kegan Paul Ltd.

Gajewska, Katarzyna (10 April 2017): UBI needs peers (PT 2): Re-imagine work organization, basicincome.org,

Gajewska, Katarzyna interviewed by Tyler Prochazka (January 2016) : Beyond temptation: Scholar discusses addiction and basic income – an interview

Gajewska, Katarzyna (30 June 2014): There is such a thing as a free lunch: Montreal Students Commoning and Peering food services. P2P Foundation Blog,

Gajewska, Katarzyna (2014): Peer Production and Prosumerism as a Model for the Future Organization of General Interest Services Provision in Developed Countries Examples of Food Services Collectives. World Future Review 6(1): 29-39.

Greaber, David (2013): On the Phenomenon of Bullshit Jobs, Strike!https://strikemag.org/bullshit-jobs/

Hirnforscher Gerald Hüther im Gespräch „Erst die Arbeit macht uns zu Menschen“https://www.faz.net/aktuell/wirtschaft/wirtschaftswissen/interview-mit-hirnforscher-gerald-huether-erst-die-arbeit-macht-uns-zu-menschen-13963189.html 31 December 2015

MacGregor, Jena (2013): Only 13 percent of people worldwide actually like going to work. October 10, 2013,

Norberg-Hodge, Helena (1991): Ancient Futures: Lessons from Ladakh for a Globalizing World. Sierra Club Books.

Photo from People’s Potato.

About the Author

Katarzyna Gajewska is an independent scholar and a writer. She has a PhD in Political Science and has published on alternative economy and innovating the work organization since 2013. You can find her non-academic writing on such platforms as Occupy.com, P2P Foundation Blog, Basic Income UK, Bronislaw Magazine and LeftEast. For updates on her publications, you can check her Facebook page or send her an e-mail: k.gajewska_commATzoho.com. If you would like to support her independent writing, please make a donation to the PayPal account at the same address!

Study of Iran’s basic income shows it did not harm employment

Study of Iran’s basic income shows it did not harm employment

An economic study of Iran’s Basic Income, which was implemented to make it easier to phase out expensive (and ecologically destructive) fuel subsidies, shows that there have been no negative effects on employment. In the first section, I will summarize the study. In the middle, there is a list of past contributions made by Basic Income News authors. In the final section, I will make a few observations.

Iran’s Fuel Subsidy Reform and Employment

The unconditional grant program was launched in 2011. The monthly grant amounted to 29% of median household income, or about $1.50 extra per head of household, per day. Around 90% of Iranians are funded through this program. (Wikipedia has a good summary of the program at the time of this writing. It does not include the end of the universal cash grant program.)

Most people in Iran and in the government came to believe that the grant discourages employment. One often hears anecdotes and assertions in national and local Iranian press. The Iranian Parliament called for cuts in the program. (See Tehran Times, April 19, 2016.) After some wrangling, cash subsidies were finally ended in 2016, with funding reserved now for low-income citizens, they could possibly begin performing a criminal background check on applications for this funding in the future. Costs were cited. It is important to note half of the cuts in fuel subsidies went to business grants and other government expenses. (See Kate McFarland in Basic Income News, “Iran: Parliament Slashes Cash Subsidies to Citizens”). What is frustrating here is the fact that the program did not undermine work participation at all.

This study shows that some people in their twenties reduced work hours, often to go to school or improve their schoolwork. But this only averaged out to a matter of months (and is likely to yield medium- and long-term benefits.) Many people increased work time a little, especially in the service sector. The authors think that these businesses used the income to find more work opportunities. Empirical evidence contradicts a lot of presuppositions about the impact of an unconditional cash grant.

The study, “Cash Transfers and Labor Supply: Evidence From a Large-Scale Program in Iran“, is put out by the Economic Research Forum and was authored by the economists Djavad Salehi-Isfahani and Mohammad H. Mostafavi-Dehzooei.

The World Economic Forum posted a summary of the Economic Research Forum study here.

Past Articles on Iran’s Basic Income

Basic Income News has repeatedly covered Iran’s Fuel Subsidy Program to make sure it is regarded as a basic income policy. Here is a list of additional articles on the subject:

Djavad Salehi-Isfahani wrote an earlier piece for the ERF. Josh Martin writes about it at Basic Income News here.

Mathieu Ferry writes about Jacques Berthiller’s piece in Basic Income News here.

The Citizens’s Income Trust, based in Britain, wrote this opinion piece for Basic Income News here.

Karl Widerquist wrote four articles early in the program’s history. “Iran: Basic Income Might Become Means Tested” and “Iran: Basic Income Gets International Attention.” “Iran: On the Verge of Introducing the World’s First National Basic Income” and “Iran Might Be Moving Toward a BIG

Hamid Tabatabai wrote an article that, very early on, points out that a country that had not been debating a basic income implemented substantial basic income grant.

III. Observations

These are conclusions reached by the author, Jason Burke Murphy, after reading the ERF study and the other articles on Iran’s program. I wanted to separate them because the first section of this article is meant to review an important study and past contributions by BI News authors.

(1) There was no point at which this program was embraced as a way to promote real freedom or to roll back poverty. Fuel subsidies were just unleashing such strong side effects that something needed to be done. It is amazing to know that a program that raises average income by 29% could be launched in order to solve a problem other than “lots of people would be better off with more money”. Had this been debated as a basic income guarantee, maybe things would turned out better.

(2) The idea that some people who can work might not work seems to bother people so much that the government ended a program that raises income for a majority of its people and for its least-well-off.

The idea is so powerful that the fact that people are NOT refusing to work can’t seem to overcome the fact that many people MIGHT or COULD refuse to work. There is a lot of work to be done here.

(3) Everyone should ask the question: What sort of percentage of people not formally working is even a problem? Most of them will do work for their families, after all. Many will gain expertise with the idea of applying it to future. Some will do work for their communities or as entrepreneurs.

(4) The impact of this grant was likely affected by the fact that it was never been presented as permanent. It also is not large enough to sustain most people at a standard of living that Iranians find decent. This may not serve as the rock-solid proof that a sizable grant won’t affect employment.

(5) In the US, an equivalent percentage of support would be around $16,000 a year. Can we assert that the Iranian experience shows that this amount would not trigger a mass refusal to work? Hard to say. Would a small-to-medium dip in job seekers even be a problem? Probably not. Lots of places in the US have average income below $16,000. Can we really say that they would be worse off with this grant just because some of them quit their jobs?

(6) All countries should take a good look at their subsidies, especially ones that benefit the already wealthy. They should cut them and fund an unconditional dividend. We get rid of something bad and replace it with something good. We see how high the dividend would be and think about the next step.

(7) As Basic Income advocates, we need to list Iran alongside Alaska and Macau as regions with a Basic Income. This is difficult because only Alaska has described its dividend as “permanent” and only there have recipients come to believe it is dependable. In the US, it is a little unusual to say “let’s do what Iran did” but that is our fate as a truth-telling movement.