by Kate McFarland | Apr 7, 2017 | News
Charlie Young, an economics writer who has worked at the UK think tank New Economics Foundation, has contributed an article on basic income to the online journal Evonomics. In the piece, he proposes a categorization system to help make sense of some of the main sources of variations between basic income schemes.
As Young points out, “universal basic income” is not a single proposal. Instead, the label encompasses a broad set of proposals that are not mutually compatible in practice, even though they are related in a more abstract conceptual or philosophical sense. For this reason, it does not make sense to say that one is “for” or “against” UBI outright.
According to Young, the “most important distinguishing feature” between these varied proposals is the source of funding (which he takes to encompass such questions as whether the UBI is a replacement to the welfare state or an add-on). He mentions the scope (“just how ‘universal’ is the income?”), amount, and regularity of the basic income as other distinguishing features.
In this light, Young recommends the following three-fold classification scheme for UBI proposals: (A) proposals based on adjustments of existing tax and benefit systems (which, in his words, have in common “a shared belief that a politically feasible UBI must be small-scale, sometimes include transitional proposals, and be based on funding from existing tax structures”); (B) proposals focused on replacement of existing welfare programs (which Young claims to differ from the former in their justification and outcomes of interest, the latter focusing more on individual autonomy than macro-level effects); and (C) proposals funded by “communalising common assets” such as natural resources, wealth, or productivity increases due to technology.
Read the full article:
Charlie Young, “The Conversation About Basic Income is a Mess. Here’s How to Make Sense of It,” Evonomics, March 19, 2017.
Reviewed by Russell Ingram
Photo CC BY-NC 2.0 Christian Guthier
by Kate McFarland | Mar 16, 2017 | News
Simon Birnbaum, Associate Professor of Political Science at Stockholm University, has published frequently on basic income, including the book Basic Income Reconsidered. Social Justice, Liberalism, and the Demands of Equality (Palgrave Macmillan, 2012).
Recently, he has written on the topic for the Oxford University Press (OUP) blog. His short, informal piece “A basic income for all: crazy or essential?” (February 20, 2017) outlines some of the reasons for the current popularity of the idea, as well as some of its challenges.
After bringing up moral concerns about free-riding and “getting something for nothing,” Birnbaum explains that basic income can alternatively be seen as “a way to address the unfair distribution of resources that nobody has done anything to deserve, and to prevent that only some are allowed to reap the massive productivity gains of society’s technical progress.” He then turns to raise questions of feasibility and implementation, noting that the current “empirical turn” in basic income research reflects a change in orientation from the philosophical to such practical questions.
Birnbaum concludes, “While the outcome of this maturing discussion is uncertain, any compelling response to the question of how welfare states should advance freedom and security in our rapidly changing labour markets needs to take a close look at the basic income proposal.”
Previously, Birnbaum wrote an extensive introductory article on basic income for OUP’s online encyclopedia (“Basic Income,” November 2016). This entry delineates the history of the idea of basic income, and discusses several normative debates surrounding basic income in some detail, taking an especially close look at the “exploitation objection” (the charge that basic income is unjust because “mandatory transfers from workers to the so-called voluntarily unemployed are ‘exploitative’ and, therefore, inherently unfair”).
Reviewed by Genevieve Shanahan and Russell Ingram
Photo CC BY 2.0 Generation Grundeinkommen
by Pierre Madden | Feb 24, 2017 | Opinion
Translated from a series of French fictional stories based on the basic income: https://revenudebase.quebec/histoires/ (in French)
Written by the Revenu de Base Quebec Team
Translated by Pierre Madden
Notice
These stories are fiction. Let’s face it, Basic Income is not yet a reality anywhere (with the exception of Alaska), only a promising proposal, tested successfully on a small scale. While any resemblance to persons living or dead is purely coincidental, the situations described do resemble what real people experience every day and illustrate how Basic Income can work in practice and what impact it can have on peoples’ lives.
1. Mady and her family
Her name is really Madelyn. Everyone calls her Mady. 57 years old and recently widowed, her husband’s long illness forced her to cut her work hours in half. She was on the edge of bankruptcy. Things are better now that she is back to full-time. Going through something like bankruptcy can be tough on a person, that is why there are steps in place to help them through this with assistance like a Chapter 13 Bankruptcy Attorney Milwaukee firm or a firm within their area, that can stop foreclosures and repossessions of property. Luckily Mady didn’t get to this stage.
Her youngest, Samuel, born just before it was too late, is now 20 and still in school. He lives at home. If he hadn’t worked at least 15 hours per week since the age of 15, the phone, the scooter, the computer and the few name brand clothes he splurged on would have been out of reach. He took an extra year to finish junior college: taking all the required courses was not always possible. He is about to start college in another city. Mady doesn’t know how she is going to be able to help him pay for 4 years of university. Her other children, Helen and James,35 and 33, have their little families. They get by…
Actually, James is doing much better than Helen. Even if he and his wife don’t have permanent jobs, they manage to make enough at consulting for him and translation for her, to have a relatively comfortable life with their two kids. To get to that point, they had to survive 3 lean years around the time the children were born. They had no paid parental leave. The problem now is managing everything. Day care for one child, elementary school for the other, a bit of sports and music for all, and the constant search for contracts, a job in itself for freelance workers.
“Poor Helen!” laments Mady, “her boyfriend left her with three kids” and she calls him names we can’t print. She met him in her early thirties; they were in love; she felt it was time to have kids; now or never; he seemed to agree. Four eventful years and three children later she finds herself in an all too common misery: rare odd jobs, trading services with other “single parents” who can’t afford childcare, clothes from hand-me-downs or thrift shops, expensive rent, minimal groceries, finicky welfare agents and all the rest.
However, it is her parents that worry Mady the most. Her mother is 82 and her father 87. He is becoming senile; she is in good health. She is exhausted taking care of her husband. Mady can see that her mother won’t last long. After sixty years of marriage, she refuses to be separated from her man. Mady’s siblings live in other cities so sooner or later she will have to pick up the slack: if not with her father , then with her mother. She worries a lot about how she will manage.
Mady, her family and a basic income for all.
Let’s imagine what it would be like…
Although Helen would be no less alone with her children, she would benefit the most from a Basic Income. Her personal allocation, combined with those of her children, would not necessarily amount to more than what she receives now in aid. However these sums are without condition, without meetings with government agents, without reports, without intrusion into her private life.
Best of all, she could build on this revenue by earning more without penalty: she could really think of improving her situation by working more and more, progressively, while still taking the time to raise her kids. The future would hold promise for her and her family.
James and his wife would have had an easier time when the children were born. They could have worked a bit less and enjoyed a less crazy life. Then again, young and ambitious, they liked the hectic pace. For sure, with less uncertainty comes less stress.
Samuel would probably be a year ahead in his studies, his child’s Basic Income permitting him to not work or work much less, just to pay for a few indulgences or to help out his mother during his father’s illness. On turning 18, he gets the full adult Basic Income; at university in another city, with an apartment, food and schooling to pay, his finances would still be very tight.
Mady, for her part, would not have risked bankruptcy during her husband’s illness. She could even have stopped working to care for him. Also, she would have less apprehension at the thought of caring for her parents or of her children caring for her in the future.
2.Peter Martin Inc.
Young and prosperous industrialist, Peter Martin’s success does not go unnoticed: big house with three garages, an equally imposing cottage by a prestigious lake, a sleek and fast number to get him from his homes to the factory. Family finances certainly benefit from his wife’s medical specialist income. And their two kids can dream of studying anywhere on the planet, a planet they know well, having traveled all over, both with their parents and alone.
Peter is past forty and greying: he had to work hard to get to where he is; he had to go through a bankruptcy and several other very difficult periods. Even if in the past few years his company is in constant growth, he never gets a moment’s rest: competition is fierce and worldwide. He has to constantly win new markets in an increasingly complex environment and continue to offer high-quality innovative products to distinguish himself from everybody else.
And if only that was the end of it! Creating products, exploring markets, that’s what he does best; that’s why he built his business. He started with a few employees and worked directly with them on the shop floor. Now that there are several hundred more, it’s a different game. Recruitment and employee turnover have become factors as critical as competition and innovation. That is why implementing effective performance appraisals of employees is important to make sure they are working to their highest level, and management is doing what they are required to meet employee’s needs. To support these appraisals, employers can also look at adding in a management strategy such as real-time feedback that can help with tracking the employee’s work that they have been completing throughout the year, so when the appraisal comes they can have all the information needed at that moment.
Easy, the life of a rich industrialist? Only on the surface. Exhilarating for sure, though; Peter Martin would not think of trading places with anyone.
Peter Martin Inc., 20 years later
At the age when a salaried worker has retired, Peter Martin is still going strong and has just gone through most eventful period in his professional life: the implementation of Basic Income.
When this “thing” began to appear in the public debate, he was dead set against it
like most of his business colleagues: he thought it was raving lunacy. However, as general support for this social measure grew, at home in Quebec, in Canada and globally, he had to take it seriously.
The fundamental discussions he had had with his employees to establish joint management of his factories and profit sharing had shown him how far such measures could contribute to improving the working climate and even the product quality, not a negligible bonus. Discussions with his employees about Basic Income, heated at first, finally convinced him to take the project seriously.
From an opponent he became a supporter unlike most of his entrepreneur colleagues. When the policy was finally adopted, he couldn’t help feeling a bit nervous…
Guess what? No cataclysm occurred; no massive resignation of his personnel, his main fear. Of course a few left: most of them, temporarily, to look after a sick family member or to complete a personal project. Crazy demands for raises did not materialize. In fact, filling entry level jobs became easier and turnover in highly specialized employees dropped. Workers’ motivation improved and productivity went up. An unexpected consequence was the sharp drop in sick days, because lower stress levels employees felt in their lives and in their work.
3. Gwen and Max’s story
Small family that wants to devote more time and money to their kids, Gwen and Max were married in 2003. Tom was born in 2005, Marie in 2008, Tom is a little boy in perfect health. Unfortunately, his sister was born with a hearing deficit that delayed speech and reading development. Thanks to the help from the local hospital and from her teachers, Marie is improving every day.
Max was a union worker in the automotive industry. He was laid off in 2008 after the economic crisis and now works part-time operator mechanic, and while he worked there he may or may not have been using an auto repair invoice template for the work he does in the side but unfortunately doesn’t now due to a sharp drop in pay. If he could pay for the training, he would upgrade his skills to get a commercial job.
Gwen tops up the family revenue by working part-time in local businesses. Her hours change constantly, which on top of low pay, prevents her from being with her children as much as she would like. The parents are concerned that they won’t be able to provide their kids with the best chances of success such as the school aid programs and other opportunities available to their classmates.
If Gwen, Max, Tom and Marie could benefit from a Basic Income, their situation would improve considerably. Marie could take dance classes after school to help with her integration and get support to improve her reading. Tom could afford hockey equipment and join the school team. Thanks to a secure source of funds each month, Max could undertake the training needed to reorient his career. Gwen could spend more time with her children by not having to work while they are at home. This small additional revenue would greatly improve their family life and the future prospects of both parents and children.
4. Jane’s story: raising your child alone
Jane is 40, her daughter Emily is 12. It’s just the two of them. Emily’s father left them when she was 4. Jane wants to make sure that her daughter does not follow in her footsteps. Jane works as a waitress in a local restaurant and has trouble making ends meet. Paying the bills while still putting healthy food on the table for Emily is a challenge. Jane finds welfare humiliating so she has not applied for government aid even if she is eligible. She would like to earn more but has neither the training nor the opportunities to increase her revenues.
With a Basic Income, added to her waitress salary, Jane would be better able to take care of her daughter, spend more time with her when necessary, provide balanced meals, let her study, do sports. Jane just needs more freedom in her choices, without having to answer to the government.
With a Basic Income, Jane’s economic situation would have no impact on Emily’s schooling. Her daughter would have the same chance of professional success as children born in more privileged environments.
5. The story of Gabe, entrepreneur
Gabe has always dreamed of being his own boss. Although, at the moment, he works for a big company and earns a comfortable living, what he really wants is to start his own business. When he was in college, Gabe invented a more efficient cement pouring system which could save up to 25% of the time needed to lay foundation in large construction sites. Unfortunately, because he had to pay back his student loans, Gabe was unable to launch his business and instead took a job in a civil engineering firm.
In 2012, because of rising rent, he bought a little condo. He was about to make a move when he realized that his monthly payments made it unrealistic to leave a stable job and go for it. In case things did not work out, he would lose his condo and have to go crawling back to his old employer.
A Basic Income would give Gabe the financial security he needs to create his business. Indeed, the monthly amount would be sufficient to cover his student and condo payments and have enough to eat. A bank loan would become possible in order to launch his company. He would then have the credibility to approach his current employer to enlist his support for the project. Gabe figures it would take a year of hard work to demonstrate the potential of his new technology and start generating revenues.
Basic Income is the launching pad he needs to become his own boss.
6. Arnold Choi’s story
Arnold arrived in Canada in 2013 with only a work permit in hand. Now he is a permanent resident and well on the way to becoming a Canadian citizen.
As an engineer from China, he came to Montreal to earn money to send back to his family back in Beijing. Arnold fell in love with Canada. He is well integrated in the community, goes to church every Sunday and volunteers at a food bank.
He works as an engineer in a buildings and public works company and has been able to put aside enough money to think of bringing his wife Suzanne and their children to Canada.
Unfortunately, his father became very ill in 2014. Arnold had to return to Beijing, to look after him and accompany him in his final days. Medical and funeral expenses were substantial and now Arnold can no longer afford to bring his family to Canada.
With a Basic Income, Arnold could have brought his family to Canada and supported them in their new life. Arnold can appreciate to what extent the Canadian population is the fruit of immigration. Arnold being a member of the community, it is only fair that he should bring his family. A Basic Income would give him enough security to reunite his family and perhaps make new citizens for Canada.
by Tyler Prochazka | Feb 22, 2017 | Opinion
Bill Gates made headlines when he suggested robots that take human jobs should be taxed at a similar rate as humans. The money, he said, could slow the rate of automation, and be used to fund government jobs.
Gates could not be more wrongheaded on this proposal.
The problem with Gates’ idea is that it assumes robots taking human jobs is something to be discouraged. The opposite is true. We should welcome robots doing more tasks for humans, thus freeing up humans to engage in other fulfilling endeavors.
Imagine the government took Gates’ approach with Microsoft computers to prevent their machines from taking jobs. Humanity would be worse off because of the unrealized productivity, connectivity, and convenience that would be impossible without computers.
The crucial component in response to automation that Gates does not mention is the Universal Basic Income (UBI). UBI will ensure that those who lose their jobs to robots will have a flexible cash grant that could be used for training, education, or to pursue whatever the individual’s passion may be.
There is a legitimate worry that the companies that own the robots will accumulate most of the wealth, and the rest will be left behind. A basic income addresses this automation cliff more effectively than attempting to delay inevitable automation with taxation.
It is possible in the future, humans will be able to scale back their work hours, while still receiving a comparable overall income through UBI because robots would be doing the bulk of humanity’s work. An individual could spend more time on volunteering, entrepreneurship, their family, civic engagement, and creative endeavors.
The greater the dividend humanity receives from robots because of their higher productivity, the larger the basic income can be without disrupting the economy.
Gates and others are stuck in the mindset that humans are meant to spend eight hours a day, five days a week in a traditional work environment. Robots are threatening to upend the system, which should be welcomed as it opens new possibilities for what people can do with their time.
Just because someone receives a wage from a company does not mean they are maximizing their potential for themselves and what they can provide to society. For example, is a single mother doing more for society by working twelve hour shifts, or spending more time raising her child?
As automation intensifies and countries inevitably start to implement basic income, many will continue to work full-time in the traditional system. Others will work part-time. And still more will find different ways to contribute to society. There is a basic human drive to develop one’s self and bring positive change to the world.
Traditional work will not necessarily cultivate each person’s true comparative advantage. The irony is that robots taking more jobs will give us more freedom to choose our best path, if coupled with an unconditional basic income.
Instead of taxing robots, we should tax activities that we want to discourage. For example, activities that harm the environment, such as fossil fuel use, animal agriculture, and resource extraction. Land ownership could also be taxed at a higher level. This could raise the same amount of revenue from wealthy individuals as Gates’ suggested robot tax in order to fund UBI and other government services, without discouraging the positive good of robotic development.
The dramatic expansion of automated jobs is going to remake the economic order and will require governments around the world to respond. The biggest mistake will be fighting this change and attempting to preserve the same system we have now, instead of using the opportunity to drastically improve it.
Image: Red Maxwell, Flickr, Ted Talk: 2009.
by Kate McFarland | Feb 21, 2017 | News
Sandhya Anantharaman, data scientist and co-director of the Universal Income Project, spoke on basic income at the tenth annual Meeting of the Minds summit.
In a 10-minute talk, Anantharaman argues that the United States needs a “new social contract” in the form of a basic income.
Setting out the problem, she explains that increases in productivity over the past half-century have not been matched by increases in income for the majority of Americans. Income inequality has risen, and a growing number of people are juggling part-time and contract jobs.
According to Anantharaman, the best solution is to guarantee all Americans an income floor sufficient to meet their basic needs. She contends that the economic security provided by a basic income would, for example, allow individuals to develop the skills and training needed to pursue new careers, promote entrepreneurship, and allow scientists to carry out research for its own sake, without worrying about how to commercialize it. It would, moreover, permit people to devote their time to caregiving, parenting, volunteer work, and other endeavors not traditionally compensated with wages.
Following Anantharaman’s presentation, the host of the event issued a prediction that the accompanying video (posted below) was one of the most likely to go viral.
Meeting of the Minds 2016 was held October 25-27, 2016 in Richmond, California. The event brought together 480 participants from the public and private sectors, non-profit organizations, and academia, with 23 countries represented.
The Meeting of the Minds network states that its mission is to “bring together a carefully chosen set of key urban sustainability and technology stakeholders and gather them around a common platform in ways that help build lasting alliances.”
Reviewed by Madhumitha Madhavan.
Cover photo: Still from YouTube video.
