by Peter Knight | Feb 2, 2024 | News
“President Cyril Ramaphosa is looking to try make the shift to a Basic Income Grant a reality following renewed calls in this year’s ANC’s January 8th statement – but questions have arisen as to how the country is going to fund it.
“Millions of working age adults in our country remain unemployed without any form of support and little prospect of gaining employment until economic growth picks up,” said Ramaphosa at the opening address of the the ANC’s 26-29 January 2024 national executive committee (NEC) lekgotla.”
To read the full article, click here.
by Peter Knight | Jan 29, 2024 | News
Photo by National Cancer Institute on Unsplash
“In May 2023, academic and policy experts in social protection, economics, public health, history, and ethics gathered at the Brocher Foundation in Geneva to consider the potential for Universal Basic Income (UBI) to contribute to health equity.
Health inequities have long been a recognised global problem. In 2013, a review of countries covering 74% of the world’s population found substantial variation in health outcomes according to income, education, sex, and migrant status. Achieving health equity is a moral imperative and necessary to fulfil the human right to health. Health inequalities cannot be solved by the health sector alone – achieving health equity requires addressing the social determinants of health that largely involve social domains beyond health, such as social security, education, housing, and issues such as domestic and sexual violence and abuse, race and class prejudice, adverse employment conditions, the physical environment, and climate change.
Read the full article here.
by Guy Standing | Jan 13, 2024 | News
In 1942, as people started to think about remaking society after the War, William Beveridge wrote a report for the British government that was to shape the welfare state in Europe. He wrote, ‘It is a time for revolutions, not for patching.’ What he meant was that it was useless to make minor changes to the old system. A new system was needed. The evidence was clear.
Today, we are at a similar juncture. The social policies of the 20th century are outdated. Selective schemes for what economists call ‘contingency risks’, such as a spell of unemployment, an illness or an accident, do not deal with the defining challenges of our age. We live at a time of rentier capitalism, in which more income goes to owners of property – physical, financial or intellectual – while less goes to those who rely on labour and work for their incomes.
Read the full article here
by Peter Knight | Dec 21, 2023 | News
A new report on a recently concluded statewide guaranteed income pilot program with immigrant families shows how unrestricted cash assistance programs allowed low-wage earners to pursue better jobs, increase their educational levels, and improve other critical outcomes for their children.
“The NM Economic Relief Working Group’s 18-month guaranteed income (GI) pilot selected 330 mixed-immigration status households to receive unconditional direct cash transfers of $500 monthly for 12 months from February 2022 to February 2023. One-third of households sampled came from rural communities and two-thirds from urban communities. An additional extension was granted to 50 randomly-selected mixed-status households to receive $500 monthly for an additional 6 months (February 2023-August 2023).
Immigrant families were chosen for the pilot because polling showed these families struggled significantly more than the general population during the pandemic because of numerous exclusions from the country’s safety net; these exclusions were due to lack of a social security number even if the household had U.S.-citizen children. In addition, many immigrant parents are not eligible for public safety-net programs, such as unemployment insurance, even though many are essential workers, make substantial tax contributions, and have positive economic impacts on our communities, state, and nation.
After receiving guaranteed income checks for a year:
• Rural participants reporting increases in employment: 14% increase
• Urban participants reporting having unstable work schedules: 36% decrease
• Rural participants reporting having unstable work schedules: 17% decrease
• Participants reporting, they had trouble paying the rent or mortgage on time: 35% decrease
• Participants reporting having to reduce or forego expenses for basic household necessities, such as medicine or food, in order to pay the rent or mortgage: 9% decrease
• Urban participants reporting having to reduce or forego expenses for basic household necessities, such as medicine or food, in order to pay the rent or mortgage: 18% decrease
Also, as part of its advocacy, the ERWG obtained a state rule change so that receiving regular GI payments do not count as income and thus do not negatively impact recipients’ SNAP or TANF allotments. ERWG’s longer term goal is to get the State of New Mexico to provide economic supports to participants in workforce development projects, specifically childcare, home health care and the oil & gas industries.
The report, “Guaranteed Income: Increasing Employment and Helping Families Thrive,” on the New Mexico Guaranteed Income Pilot Program for Immigrant Families, was released on December 12, 2023.”
Here is a link to the report and the fact sheet.
by Peter Knight | Dec 19, 2023 | News, Research
Abstract: “What would be the consequences of a long-term commitment to provide everyone enough money to meet their basic needs? We examine this hotly debated issue in the context of a unique eld experiment in rural Kenya. Communities receiving UBI experienced substantial economic expansion|more enterprises, higher revenues, costs, and net revenues|and structural shifts, with the expansion concentrated in the non-agricultural sector. Labor supply did not change overall, but shifted out of wage employment and towards self-employment. We also compare the effects to those of shorter-term transfers delivered either as a stream of small payments or a large lump sum. The lump sums had similar, if not larger, economic impacts, while the short-term transfers had noticeably smaller effects, despite having delivered the same amount of capital to date. These results are consistent with a simple model of forward-looking lumpy investment, and more generally with a role for savings constraints, credit constraints, and some degree of (locally) increasing returns, among other factors.”
Read a summary of the report.
Read the full report.
