CHINA: Enno Schmidt speaks on basic income in Beijing

CHINA: Enno Schmidt speaks on basic income in Beijing

Enno Schmidt. Credit to Professor Cui Zhiyuan.

On April 27th, 2017, Enno Schmidt gave a speech on basic income in Beijing. Schmidt was one of the two initiators of the national referendum on basic income in Switzerland last June. He was invited by Professor Cui Zhiyuan from the School of Public Policy and Management in Tsinghua University. The attendance was modest, composed mainly of researchers and students, including some from Poland and the Philippines.

To start, Schmidt presented some of the awareness-raising events they undertook to introduce the concept of basic income to the Swiss people, such as the ‘Everyone is a King or a Queen’ activity, the world’s biggest poster, bearing the question ‘What would you do if your income were taken care of?’ and the eight million coins dumped in front of the Swiss parliament building.

He then explained the special national referendum system in Switzerland. From collecting signatures to voting, this campaign was not about winners and losers, Schmidt underlined. Rather, democracy is a process of participating, training, learning, debating, and choosing. No matter how people ultimately voted on basic income, he highlighted, they had asked themselves the same question: ‘why’. So even though most voters rejected the basic income proposal, Schmidt argues it is still valuable to have raised the issue and ascertained public opinion.

Finally, Schmidt explained the relationship between basic income and personal life, society, economy, politics, and culture. He also gave an overview of basic income pilots worldwide. In the Q&A session, the audience had an active discussion with the speaker. For example, one question concerned the optimal scale for a basic income. Schmidt claimed that, the smaller the scale, the easier the implementation but the more limited the personal freedom. In fact, he also added, it is difficult to implement a universal basic income in large countries with varied regional development levels, like China.

 

Article reviewed by André Coelho and Genevieve Shanahan.

 

Review: ‘Radical proposal’ provides basic income details

Review: ‘Radical proposal’ provides basic income details

Philippe Van Parijs and Yannick Vanderborght, Basic Income: A radical proposal for a free society and a sane economy, Harvard University Press, 2017, 384 pp, 0 6740 5228 4, hbk, $29.95

This book revolves around two focal points: freedom, and Basic Income; and it might best be understood as a meditation on the relationship between them.

The introductory first chapter outlines what a Basic Income is and how it would tackle poverty, unemployment, and the quality of employment, and how it would enhance an individual’s freedom: freedom within the household, freedom in the employment market, freedom from bureaucratic intrusion… The relationship between ‘universal’ and ‘unconditional’ needs more work, and a Basic Income that varied across a country would not achieve the kind of redistribution that the authors would like to see achieved across Europe in chapter 8, as it would be conditional and therefore not a Basic Income, and would pose considerable practical difficulties: but otherwise this chapter offers a reliable discussion. Persistence with the significant amount of detail will reward the reader.

Chapter 2 discusses such alternatives as Negative Income Tax, Earned Income Tax Credits, and wage subsidies, all of which fare badly in a variety of respects when compared to Basic Income. Basic Income is preferred to a Basic Endowment because it protects our lifelong freedom against freedom badly exercised in our youth; and a reduced working week is criticised on the grounds that it would control the number of hours of paid employment that we were permitted to work, whereas a Basic Income would enhance our freedom at the same time as offering the possibility of a shorter working week. A Participation Income ought to have been tackled here as an undesirable alternative to Basic Income rather than later in the book as a feasible step on the way to Basic Income.

The following two chapters contain some of the relevant history: chapter 3 the history of social insurance and means-tested benefits, and chapter 4 the history of the Basic Income debate. Then chapter 5 argues that a Basic Income would be both ethical and just, with both of those criteria focused on the notion of individual freedom, and in particular on the freedom not to seek paid employment. Among the dialogue partners are John Rawls, Ronald Dworkin, Amartya Sen, Brian Barry, and Karl Marx. This is a chapter that the ‘philosophically inclined’ (p.113) reader will greatly enjoy, although whether the unphilosphically inclined will find that it satisfactorily answers the objections to Basic Income listed at the beginning of the chapter is an interesting question. Rather more likely to do that would be the fact that the lower marginal deduction rates that a Basic Income would deliver would make it more likely that someone would seek paid employment, not less. More practical considerations are permitted to intrude when a land value tax is found to be impractical; and the reader is plausibly counselled to seek a more just society rather than a happier one.

In chapter 6, on funding, experiments, and transitions, there is a usefully detailed discussion of the different marginal deduction rates that would be experienced by individuals at different points on the earnings spectrum if income tax rates were raised to pay for a Basic Income. The discussion suggests that such increases need to be kept to a minimum. A variety of natural and constructed experiments are discussed, and the difficulty of employing their results in debate on Basic Income is well argued. There is an equally useful discussion on the difficulty of transferring labour market models and empirical results from contexts within current tax and benefits systems to the context of the Basic Income debate. A number of taxation options are discussed: taxes on capital, on land, on other natural resources, on financial transactions, and on consumption. When the authors turn to implementation options, they correctly recognise that a ‘partial Basic Income’ (which ought in relation to their original definition of Basic Income to have been called a ‘small Basic Income’) would need to be the first step. They then consider options for how such a Basic Income might be implemented, and suggest that implementing it first for a single age cohort would create unfairness between cohorts (p.160). However, if the Basic Income replaced income tax personal allowances and other benefits then members of the relevant cohort would not necessarily receive any immediate financial advantage, and any perceived unfairness relating to a Basic Income’s various advantages over existing benefits systems would result in pressure to extend the Basic Income to neighbouring cohorts. This implementation method has more to be said for it than the authors realise.

Chapter 7 tackles political achievability. A survey of opinion poll results finds the public broadly in favour, except for Swiss, most of whom voted against the referendum resolution on Basic Income because they were not convinced that it would be possible to pay for the high Basic Income recommended by the campaigners. The chapter goes on to find growing understanding of the advantages of Basic Income among trades unionists ( – the UK’s Unite receives an honourable mention). The complexity of feminist, socialist and Green Basic Income debates is well understood. Somewhat incongruously the UK’s Liberal Democrats and Charles Murray are located together in a section titled ‘Liberals’. Separate sections on ‘Liberals’ and ‘Neoliberals’ would have made more sense. Similarly, the section entitled ‘Christians’ should have been two sections: ‘Christian Democrats’ and ‘Christians’. Social movements such as Occupy and the movement that promoted the European Citizens’ Initiative on Basic Income are correctly seen as significant locations for future debate on Basic Income.

The latter half of chapter 7 evaluates social policies that the authors believe would be useful steps on the way to a Basic Income. They recognise that a Participation Income (an income conditional on the recipient’s ‘participation’ in society) would face administrative challenges, and believe that these would result in the participation condition being phased out. They would not. The participation-testing of the entire population would be so unpopular that the Participation Income would soon be abolished along with any thought of it becoming a Basic Income. A Negative Income Tax, which the authors also believe could be a step towards a Basic Income, could suffer the same fate. As the authors recognise at the end of the chapter, the only viable first step on the way to a Basic Income would be a Basic Income paid at an easily fundable level to a single or multiple cohorts. Unfortunately, the last line returns to the possibility of ‘participation’ conditions. The temptation to suggest this should be resisted.

Both chapters 6 and 7 contain material on implementation routes. To have brought this material together into a single chapter titled ‘roads to Basic Income’ would have been helpful. As it is, issues relating to implementation look as if they are of secondary significance. They are not. They are where the debate is now going.

Chapter 8 ponders the difficulties that globalisation, immigration and emigration could pose for a Basic Income in a single country, and the authors speculate about the possibility of a global Basic Income. They suggest that a Europe-wide Basic Income funded by a financial transactions tax or a carbon tax would reduce the economic pressures that give rise to migration within Europe, and would therefore reduce levels of migration, and make it more likely that freedom of movement would survive. Such a Basic Income would also help to preserve the Euro’s viability.

This book is a triumph, and will remain the definitive liberal argument for a Basic Income for many years. At its heart is a utopia in which every individual experiences the maximum possible freedom, and Basic Income as a means to that end. ‘Equality’, ‘inequality’ and ‘social cohesion’ are missing from the index, and Basic Income’s promise of a more equal and more cohesive society might have been given a little more attention alongside the ubiquitous emphasis on individual freedom: but readers from a wide variety of ideological commitments will still find this book useful. It is well written, well referenced, and generally well organised, and it tackles many of the issues central to the current debate.

There will be a lot more books on Basic Income, as there should be given the increasingly diverse and widespread debate. Some of those books will be from the same standpoint as this one, others will be from a different ideological standpoint, and some will be from a more pragmatic point of view. Whatever standpoint they come from, they will find it difficult to exceed the intellectual quality of Basic Income: A radical proposal for a free society and a sane economy.

Philippe Van Parijs lectures on “Basic Income: A Radical Proposal for a Free Society and a Sane Economy”

Philippe Van Parijs lectures on “Basic Income: A Radical Proposal for a Free Society and a Sane Economy”

Basic Income: A Radical Proposal for a Free Society and a Sane Economy, a comprehensive book by BIEN’s Philippe Van Parijs and Yannick Vanderborght, was published last month on Harvard University Press.

In honor of the launch of the book, Van Parijs has delivered several public lectures, beginning with events in Copenhagen, Denmark (March 28) and Stockholm, Sweden (March 30).

Copenhagen (Video Below)

The former was part of a workshop on basic income organized by the Department of Political Science at the University of Copenhagen in conjunction with two political parties, the Alternative and the Social Liberal Party, and held at the Danish Parliament, Christiansborg.

In his talk, Van Parijs describes the origins of his own support for basic income and his discovery of previous supporters of the idea. He goes on to discuss the current popularity of the idea, examining three events that have popularized basic income within the past year: the Swiss basic income referendum, the decision of the Finnish government to conduct a basic income pilot study, and the election of president candidate Benoît Hamon in France’s Socialist primary.   

Van Parijs’s lecture was followed by two additional presentations on the topic — a critical perspective from Otto Brøns-Petersen of the think tank CEPOS, and a sympathetic one from Torsten Gejl of the Alternative, who relates that the party is beginning to investigate a model for a feasible basic income for Denmark.

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Stockholm (Video Below)

The second launch event was a seminar at Stockholm University, moderated by Institute for Future Studies Director Gustaf Arrhenius.

In this lecture, Van Parijs considers basic income from the standpoint of philosophical ethics and social justice, addressing the common objection that it is unjust to provide money to individuals without requiring some type of work or contribution. In countering the “freeloader” objection, Van Parijs begins with what he calls “ad hominem” replies — accusing the objectors of applying inconsistent principles. He proceeds to provide a positive account to justify the provision of a basic income without requiring anything in return, viewing it instead as a social inheritance. According to Van Parijs, most of the wealth in society cannot be ascribed to the contributions of any particular individuals, and is best conceived as rightfully belonging to all of us collectively. At the same time, he stresses that we still need an “ethos of contribution”, which is compatible with the provision of an unconditional basic income.

Ingrid A.M. Robeyns (Chair Ethics of Institutions at Utrecht University) and Andreas Bergh (Associate Professor in Economics at Lund University) provided comments on Van Parijs’s talk.

Robeyns praises Basic Income, especially for its balanced and sympathetic treatment of critical views. Her comments provide a general critique of the discourse surrounding basic income, arguing that one cannot be “for” or “against” a basic income outright without specifying amount, funding source, and what other programs would be replaced.

Bergh also praises the book, calling it “convincing”, although he too has complaints with the current state of basic income discourse–beginning with the book’s subtitle. According to Bergh, basic income is not a “radical” proposal and, moreover, calling it such is unhelpful with respect to its political popularity. Bergh urges basic income advocates to “get their hands dirty with national politics”.

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United States

After the European book launch events, Van Parijs traveled to the United States for additional public lectures. These included a talk at Bowling Green State University in Ohio on April 7, where he was one of three keynote speakers (along with Evelyn Forget and Matt Zwolinski) at the university’s annual Political Theory Workshop–which, for 2017, focused on basic income and the future of work. On April 12, Van Parijs spoke at Stanford University, as the second major event hosted by the university’s newly founded Basic Income Lab.


Reviewed by Cameron McLeod

Cover photo credit: Enno Schmidt

Taiwan holds ‘historic’ basic income conference

Taiwan holds ‘historic’ basic income conference

The Universal Basic Income in the Asia Pacific international conference was held at National Chengchi University (NCCU) on March 18. This was the first conference dedicated to universal basic income (UBI) focused on the Asia Pacific region. Scholars, activists, officials, and guests traveled from all over the world to participate in the event.

All livestream videos are available on the UBI Taiwan Facebook page, and a HD version will be available shortly on UBI Taiwan’s YouTube page.

Around 100 people participated in the event in person, including participants who flew from America, Switzerland, Australia, South Korea, Singapore, and mainland China. There were nearly 1,000 streams of the Chinese-translation broadcast of the event, and there were over 1,200 views of the livestream videos on Facebook. A total of 16 different sessions were held, with over 100 questions posed to the UBI experts in-person and online. Furthermore, the event page has reached 35,000 unique viewers to date.

Enno Schmidt, leader of the Swiss referendum campaign, gave the keynote speech for the event: “Basic Income and Democracy.”

“The Asia Pacific UBI conference undoubtedly has been one of the historical steps in furthering the worldwide UBI movement, focused on the recognition of Asia Pacific, as well as unity and collaboration,” Schmidt said.

The event has been in preparation since November, when organizer Tyler Prochazka, an NCCU International Master’s Program in Asia-Pacific Studies (IMAS) student and features editor of Basic Income News, received a grant from the US State Department’s Critical Language Scholarship Alumni Development Fund along with James Davis, a junior from Columbia University. NCCU’s College of Social Sciences (CSS) later agreed to sponsor the event, and NCCU’s IMAS department provided additional assistance.

NCCU CSS Professor Ping-Yin Kuan provided the welcome speech for the event, where he discussed how he first learned about the idea of UBI while he was studying in the United States. His master’s thesis advisor was involved in the “Income Maintenance Experiment” in New Jersey, which tested a form of negative income tax in the 1960s and 1970s.

“As a student who came from Taiwan – at that time Taiwan was a relatively poor country – I was amazed by such a crazy idea. And I thought that only the US, a rich country, would come up with such a scheme,” Kuan said.

“After I became more familiar with issues of social inequality, I could see that it was not a crazy idea at all. The question that should have been asked then, and I believe should still be asked now, is why a country as rich as the US allows a significant proportion of its people to live below a basic decent condition,” Kuan expanded.

“Now Taiwan is considered a rich county, and we can certainly ask the same question here.”

Conference co-organizer James Davis prepared a documentary for the conference, meeting with prominent figures in finance, technology, and politics to discuss basic income.

“Universal basic income is the future of redistribution and welfare policy. It has the potential to alleviate global poverty and unleash an entrepreneurial spirit unlike anything we’ve seen before. These interviews explore the practical and ideological grounds of universal basic income, debunking the critics, and anticipating its challenges,” Davis said.

Sarath Davala, a researcher on the Indian basic income trial, presented on the “Transformative Power of Basic Income for India” via Skype.

“Universal basic income is the most radical idea of our contemporary times. It takes the discourses of democracy and poverty to the next level,” Davala said. He noted that UBI Taiwan “has created history by organizing the first regional activity in Taipei.”

“This conference is the foundation for future cooperation at the regional level, which is very much needed to take forward the basic income movement in each of the countries in the Asia Pacific region,” Davala said.

Ping Xu, coordinator for UBI Taiwan and co-organizer of the conference, presented on the feasibility of basic income for Taiwan.

“This is the first step for basic income in the Asia Pacific. It represents an awakening of human evolution toward traditional Asian culture and away from our current inhumane working standards,” Xu said.

Joffre Balce, secretary of the Association for Good Government in Australia, presented on “Rewriting the Textbook to Deliver Universal Human Dignity.”

“The first Asia Pacific Conference on Basic Income was a glimpse of how society can work together for a common vision — bold, innovative, diverse yet respectful of each other’s noble intentions, united in efforts and determined to realize each other’s vision for a society of equality in rights, the self-determination of the individual and the freedom to cooperate for a better society,” said Balce.

Ted Tan, the coordinator for research and information for UNI Asia and Pacific Regional, flew from Singapore to attend the event. He said he “hopes there will be another conference next year.”

“The conference was very interesting and it could have easily been extended for another half or one day. There is still much to discuss on the possibility of a universal basic income in this region, so I appreciate the inputs and sharing of all the experts in the same room,” Tan said.

Chung Yuan Christian University provided simultaneous Chinese translation for the event. Enzo Guo, a Taiwanese senior at Chung Yuan, led the group of translators.

“I felt so honored to interpret for those brilliant scholars with their ideas and findings. I benefited greatly by their talks. These are important matters that people living in Asia Pacific should know,” Guo said.

Musician Brandy Moore also provided her song “Just Because I’m Alive” for the conference and its promotional videos. Moore wrote the song after hearing about basic income in 2015 and performed it at a basic income conference in 2016 for the first time. In June, Moore will perform the song at NABIG 2017 in New York City.

“Being invited to put my song forward to be part of this recent basic income conference held in Taiwan was a wonderful additional surprise,” she said.

“Music reaches people on a heart level and it’s going to take both heads and hearts to make basic income a reality,” Moore said.

Purchases of Moore’s song will help fund basic income organizations after she recoups the funding to produce it.

Julio Linares, an NCCU student from Guatemala, had met many of the presenters at the BIEN Congress in South Korea, where he also presented.

“I argued how a Basic Income Fund (BIF) could work as a way of creating long-term investments whose profits are redirected back to people in the form of a monthly basic income while at the same time making the fund financially sustainable over time,” Linares said. “The attendees were not only from Taiwan but from different countries and they all showed great interest in the topic as it raised quite a lot of discussion.”

Petra Sevcikova, an NCCU IMAS student from the Czech Republic, organized the NCCU volunteers for the conference.

“After working in event management in Europe, helping to organize the UBI Conference in NCCU in Taipei was a new and extraordinary experience. I believe that the conference was unique and quite important for people interested in the basic income,” Sevcikova said.

Speakers included Gary Flomenhoft (University of Vermont, USA), Sarath Davala (India), Julio Linares (NCCU), Gregory Marston (University of Queensland, Australia), Joffre Balce (Australia), Munly Leong (Australia), Toru Yamamori (Doshisha University, Japan), Ping Xu (Taiwan), Enno Schmidt (Switzerland), Hyosang Ahn (Basic Income Korea Network), Cheng Furui (Chinese Academy of Social Sciences), and Tyler Prochazka (NCCU). The abstracts for each presentation can be found here. A compilation of the research will soon be published online.

For Kuan, bringing these scholars to Taiwan will help to highlight the important issue of inequality, as many social welfare systems in the Asia Pacific are “not working effectively.”

“It is important to bring regional scholars to share knowledge about basic income and spark new ways to think about social security. This is particularly important, not just in Taiwan, but the Asia Pacific in general,” Kuan said.

Yamamori presented on “What Can We Learn From a Grassroots Feminist UBI Movement?: Revisiting Keynes’s Prophecy” via Skype.

“While I was able to attend only via Skype, I could still feel positive vibes and energy from the venue. I know Tyler, Ping and others made a huge effort to make this conference successful,” he said.

“Let me show my gratitude to them and participants, and let us go forward for an unconditional basic income together,” Yamamori said.

Guo said he is optimistic that the conference will have a big impact on Taiwanese society.

“By gathering the elites and people from different fields together and discussing with each other, I believe this conference has undoubtedly paved the way for the popularization of UBI in Taiwan,” he said.

When reflecting on the potential of the UBI in the Asia Pacific, Schmidt said it can bring together all people from all backgrounds, both in the Asia Pacific and beyond.

“The idea of an unconditional basic income for everyone must remain clear, which is regardless of any life circumstances, rich or poor, beautiful or ugly. This idea does not exclude anybody, it does not fight against anything. The idea of UBI unites and connects people and restores our forgotten values,” Schmidt said.

World premiere of Basic Income documentary Free Lunch Society

World premiere of Basic Income documentary Free Lunch Society

A new documentary on basic income — Free Lunch Society by Austrian director Christian Tod — premiered in Copenhagen’s Bremen Theatre on March 20, 2017, to a crowd numbering in the hundreds.

The 90-minute film covers a range of “highlights” of the basic income movement, such as (for example) Alaska’s Permanent Fund Dividend, Manitoba’s “Mincome” experiment, campaigns for guaranteed minimum income in the 1960s US, the 2008 basic income pilot in Namibia, Switzerland’s 2016 basic income referendum, and current concerns about automation. Along the way, it features interviews with prominent basic income proponents — including, among others, billionaire businessman Götz Werner (founder of the German drugstore chain dm-drogerie markt), libertarian political scientist Charles Murray (American Enterprise Institute), venture capitalist Albert Wenger (Union Square Ventures), Mein Grundeinkommen founder Michael Bohmeyer, Swiss referendum co-founder Daniel Häni, economist Evelyn Forget, and writer and entrepreneur Peter Barnes.

In an interview about the film (“Curiosity and the desire to improve the world”), Tod explains, “The film takes as its point of departure an ethical justification of basic income founded on the premise that natural resources belong to us all.” Tod’s musical selection — centered around the song “This Land is Your Land” — reflects this orientation toward the subject, as do his cinematographic decisions to include clips of natural scenery interspersed between the vintage footage and talking expert heads. (As he says in the same interview, “What might not come across quite so clearly in the completed film are elements which strike me as extremely important such as the countryside, the Earth, natural resources. I had wanted these aspects to be more prominent, but then the narrative would have suffered.”)

Tod has also acknowledged the influence of the science fiction series Star Trek: The Next Generation on his thinking about basic income and, eventually, the film: “It presents a society where there’s no money, where people only work because they really want to, and where they are driven by human curiosity.” Correspondingly, Free Lunch Society begins and ends with scenes from Star Trek.

About the interview subjects in his film, who were chosen in part to emphasize the political diversity behind support for basic income, Tod notes, “It’s interesting that they are almost all business people: owners of technology companies, CEOs of large or small companies, people who can afford to think about making the world a better place.”

Asked about the most surprising thing he learned while making the film — in an interview following the film’s premiere (see below) — Tod mentioned the discovery that “basic income was such a big thing in the United States in the 1960s,” tested in experiments and nearly voted upon.

 

Watch the Trailer

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World Premiere Event

Most of Copenhagen’s Bremen Theatre 648 were filled at the world premiere of Free Lunch Society on Monday, March 20, 2017.

Director Tod states, “It was a fabulous evening in a tremendous location. It was very special to have the world premiere of Free Lunch Society in Copenhagen, because my film career started in this beautiful city 10 years ago, when I studied at Copenhagen university’s film department. The premiere on Monday was, so far, the peak of my career in filmmaking. Almost 650 people watching my vision and applauding, laughing and apparently liking it, is hard to top.”

The film’s world premiere was followed by short interviews with Tod and Bohmeyer, as well as a panel discussion with Uffe Elbæk (Leader of the Danish green political party The Alternative; Danish: Alternativet), Steen Jakobsen (Chief Economist at Saxo Bank), and Dorte Kolding (Chair of BIEN-Danmark). All three panelists were sympathetic to the idea basic income, although Elbæk explained that The Alternative was not prepared to endorse it — though they would be willing to pursue pilot studies, and though the party’s political agenda includes the provision of benefits to the poor “without specific control measures” (that is, without conditionalities like work requirements, similar in spirit to a basic income). Jakobsen advocates a negative income tax, as proposed by Milton Friedman, as a way to increase the purchasing power of the lower and middle classes and produce a more equitable distribution of wealth.  Watch below (panel discussion and debate in Danish).

 

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The world premiere was followed by several other showings in Copenhagen, including one which was held as part of BIEN-Danmark’s Annual Meeting (March 25, 2017), with showings in Austria scheduled in late March and early April.

 

More Information

Free Lunch Society Official Facebook page.

Jannie Dahl Astrup, “‘Free Lunch Society’: Øjenåbnende ørefigen til kapitalismen,” Soundvenue, March 20, 2017 (film review, language: Danish).  

 


Thanks to Karsten Lieberkind for helpful information and reviewing a draft of this article.

Photo: Free Lunch Society promotional image from CPH:DOX.