Let’s eliminate negative basic incomes

Let’s eliminate negative basic incomes

What is a negative basic income?

“A basic income is a periodic cash payment unconditionally delivered to all on an individual basis, without means-test or work requirement.” A negative basic income would be one where a periodic cash payment is unconditionally demanded from all on an individual basis, without means-testing or a work requirement. This is nothing but a per-head tax or a poll tax, a payment for existence, an equal amount taken from everyone, unconditionally.

The extreme unfairness is apparent. How can you take the same amount from the billionaire and the beggar? Not surprisingly, there have been very few pure poll taxes in history – most had a number of exclusions, especially for the poor. However, there is a different kind of per-head tax that is large, widespread, and right under our noses. This is when there is loss or diversion of the commons.

Let’s take a toy example to understand this. Imagine a tiny commons, 100 people who own a 1 kg slab of gold in common, inherited from the past. As they are worried about theft, they store it under the protection of the local deity. But it is a continual worry. The community decides to sell the gold, and to invest in a piece of land. They reason that at least the land can grow a crop, whereas the gold generates no income. As long as they maintain the fertility of the land, they can all share the crop. This would be the equivalent of a commons dividend or a cooperative dividend, essentially a Universal Basic Income for the community.

Now imagine that when they go to sell, they find the gold is simply stolen. Clearly it is a loss of 10 grams each (100 persons x 10 grams = 1,000 grams = 1 kg). This is nothing but a per-head imposition of the equivalent of 10 grams of gold. Since it is an inherited asset, the loss is suffered by all future generations as well. In a different sense, the loss is the opportunity to receive the commons dividend, the universal basic income in perpetuity.

We can extend this logic to diversion of either the capital (the value of the gold), or the income stream from the new asset (the land). If the government appropriates the value to finance infrastructure or health or education, it is still effectively financing these investments with a hidden per head tax.

This is even clearer in the instance of the fruit of the land and the commons dividend. If the government appropriates the entire crop, then it is identical to distributing a commons dividend as a basic income, and taxing it simultaneously to the exact same extent – the negative basic income.

This kind of underselling of the commons is widespread, particularly in minerals. To take a couple of examples, it has been estimated that the United Kingdom and Norway have extracted approximately equal amounts of oil from the North Sea. However, the United Kingdom received approximately GBP 400 billion less than Norway[1]. For a population of 64 million, this is a loss or a poll tax of GBP 6,250. Had this amount been saved, it could have financed a Citizen’s Dividend of GBP 250 in perpetuity, assuming a real return of 4%.

Another common problem is that the money received for the minerals is treated by the government as taxation revenue, not as the sale of the commons. Consequently, instead of creating a new asset, such as the land in the toy example, or more seriously, Future Generations Funds or Permanent Funds, the government simply spends the money as income. While this boosts the GDP figures, it is both the consumption of our inherited asset as well as the hidden imposition of a per head wealth tax. . Alaska only deposits 25% of its money from oil in to its Permanent Fund. The remaining 75% is treated as revenue in the state budget. This year, Alaska’s Permanent Fund Dividend was set at US$2,072. By extension, the remaining 75% that was spent through the budget could have financed an additional dividend of $6,216 per annum.

The Norway oil fund presently saves all receipts from minerals in the Norway Government Pension Fund. This is the single largest fund in the world, approximately USD 900 billion. However, instead of paying out a commons dividend or a Citizen’s Dividend, the money is appropriated into the budget. This is clearly equivalent to imposing a per head tax on all Norwegians. The 2016 budget estimates a transfer of NOK 208,994 million to the budget[2]. For a population of 5.084 million[3], that is a negative universal basic income of NOK 41,108, or approximately USD 4,863[4]. It is doubtful that any modern democracy can impose a per head tax of such a staggering amount.

The Goenchi Mati Movement, a people’s movement in Goa has adopted simple principles that they advocate for governing mining of the commons. In short, the principles are:

  1. We, the people of Goa, own the mineral in common. The state government is merely a trustee of natural resources for the people and especially future generations (Public Trust Doctrine).
  2. As we have inherited the minerals, we are simply custodians and must pass them on to future generations (Intergenerational Equity).
  3. Therefore, if we mine and we sell our mineral resources, we must ensure zero loss, ie. capture of the full economic rent (sale price minus cost of extraction, cost including reasonable profit for miner). Any loss is a loss to all of us and our future generations.
  4. All receipts from minerals must be saved in the Goenchi Mati Permanent Fund, as already implemented all over the globe. Like the minerals, the Permanent Fund will also be part of the commons. The Supreme Court has ordered the creation of a Permanent Fund for Goan iron ore and already Rs. 94 crores is deposited.
  5. Any real income (after inflation) from the Goenchi Mati Permanent Fund must only be distributed to all as a right of ownership, a Citizen’s Dividend. This is like the comunidade zonn, but paid to everyone.

We argue quite simply that any other structure would impose per head taxes, which is fundamentally regressive and obviously unfair. The principle of zero loss mining was clearly violated in the UK receiving GBP 400 billion less than Norway. The principle of saving all receipts from minerals is widely violated, largely due to the way governments account and report for this – windfall revenues instead of it being a capital receipt. And where permanent funds do exist, in most cases the government appropriates the income instead of distributing it as a commons dividend.

This problem is not confined to minerals. All over the world, the commons are being destroyed at a rapid rate. For example, the “Mickey Mouse extension” of copyright is also nothing but a transfer from the commons to the private sector, an imposition of a negative basic income.

It is time that activists for basic income seriously hunt out instances of negative basic income. Simply eliminating them could achieve many of the desired benefits of basic income, with a moral argument in favour, rather than the uphill battle of helicopter money.

 

About the author: Rahul Basu

 

[1] Did the UK Miss Out on £400 Billion Worth of Oil Revenue?, David Manley & Keith Myers, Natural Resource Governance Institute, 5 October 2015

[2] https://www.statsbudsjettet.no/Upload/Statsbudsjett_2016/dokumenter/pdf/budget2016.pdf

[3] https://www.google.co.in/search?q=population+of+norway&oq=population+of+no

[4] Google. 1 NOK = 0.12 USD, 41,108 NOK = 4,863.76 USD. 13 Dec 2016, 12 noon GMT

US: New Project Pledges $10 Million to Support Basic Income Research

US: New Project Pledges $10 Million to Support Basic Income Research

Launched on Thursday, December 8, the US-based Economic Security Project (ESP) — co-chaired by future of work expert Natalie Foster, Facebook co-founder Chris Hughes, and Roosevelt Institute Fellow Dorian Warren — has committed to donate $10 million over the next two years to projects related to exploring “how a ‘basic income’ could rebalance the economy and ensure economic opportunity for all”.

The goal of ESP, in the words of its press release, is to help Americans interested in basic income achieve the transition from “conceptual discussion to meaningful action”.

Stressing both the potential of basic income and the need for further investigation, Warren states, “We believe we can end the downward spiral for working families in America by providing a guaranteed basic income for every man, woman, and child – but the precise approach for implementing a cash benefit system needs additional research.”

 

Mission and Belief Statement

ESP released its Belief Statement at its launch, accompanied by more than 100 signatures from entrepreneurs, academics, activists, artists, politicians, and others who share the vision of the initiative (including Basic Income News editor Kate McFarland, as well as many people more famous than she).

We believe people need financial security, and cash might be the most effective and efficient way to provide it.

The time has come to consider new, bold ways to make our economy work again for all Americans. In a time of immense wealth, no one should live in poverty, nor should the middle class be consigned to a future of permanent stagnation or anxiety. Automation, globalization, and financialization are changing the nature of work, and these shifts require us to rethink how to guarantee economic opportunity for all.

A basic income is a bold idea with a long history and the potential to free people to pursue the work and life they choose. Now is the time to think seriously about how recurring, unconditional cash stipends could work, how to pay for them, and what the political path might be to make them a reality, even while many of us are engaged in protecting the existing safety net.

The undersigned commit to work over the coming months and years to research, experiment, and inspire others to think through how best to design cash programs that empower Americans to live and work in the new economy.

The ESP Belief Statement continues to gather numerous signatures online.

 

Grant Recipients

ESP has selected six initial grant recipients, to which it has already dedicated over $500,000 in total:

  • The Center for Popular Democracy, a progressive advocacy group that is beginning to explore how to strengthen America’s safety net in ways that could lead to a universal basic income.  
  • The Roosevelt Institute, a progressive think tank that has recently released a report on basic income, and which is now undertaking more extensive research on UBI and cash transfers, including macroeconomic modeling, behavioral research, and public opinion surveys and focus groups.
  • The Niskanen Center, a libertarian think tank that has published frequently on basic income and other cash transfer policies, such as a universal child benefit. The center plans to carry out policy research on various means of implementing cash transfer programs in the US.
  • The Alaska Group American Center, which is fighting recent cuts to Alaska’s Permanent Fund Dividend, the unconditional cash payment to state residents that has been influential in much discussion of basic income.

ESP indicates on its website that it is open to funding a variety of projects — from scientific research to advocacy campaigns to artistic and cultural projects — and accepts proposals online.

 

Coming Next

ESP is preparing to launch a series of articles, written by project advisors and diverse other contributors, on themes related to the path to a basic income in the US.


Photo CC BY-SA 2.0 401(K) 2012

ICELAND: Pirate Party invited to form government, supports investigation of BI

ICELAND: Pirate Party invited to form government, supports investigation of BI

The Icelandic Pirate Party — which has proposed to launch an investigation into ways to implement an unconditional basic income in Iceland — has been granted the authority to form the country’s next government.

Iceland’s Pirate Party (Píratar) gained 10 seats in Iceland’s parliament (Alþingi) in the October 2016 general election (which was held a year early, after the Prime Minister resigned in the wake of the Panama Papers leaks). This put the party in third place in parliamentary representation, behind the center-right Independence Party and the Left-Green Movement.

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Birgitta Jónsdóttir CC BY-SA 2.0 Pirátská strana

In Iceland’s political system, the president invites the leader of the winning political party to negotiate with the other parties to select new members of the government. If the party does not succeed, the president passes the mandate to the second most dominant party, and so on. In this case, neither the Independence Party nor the Left-Green Movement succeeded in negotiations; thus, on December 2, President Guðni Jóhannesson handed the mandate to form the government to Pirate Party leader MP Birgitta Jónsdóttir.

This marks the first time — in any country — that the authority to form a government has been handed to a party officially committed to investigate the possibility of basic income.

Píratar does not officially endorse any specific form, amount, or funding mechanism for a basic income guarantee, and the party believes that more research is necessary before moving forward with any such policy. Moreover, neither implementing nor researching a basic income appears on the party’s manifesto for the October 2016 parliamentary elections.

However, Píratar has actively promoted research into a basic income guarantee for Iceland, and plans to continue to do so with the new government. MP Halldóra Mogensen drafted a proposal calling on the Ministry of Welfare and Ministry of Finance to form a working group tasked with “looking for ways to ensure every citizen unconditional basic income” (“skil­yrðis­lausa grunn­fram­færslu”), which she submitted to parliament in November 2015 along with the  other two Pirate MPs, Ásta Guðrún Helgadóttir and Birgitta Jónsdóttir. In setting out the case that Iceland should investigate the possibility of a BIG, the proposal reviews the results of past basic income trials, especially in Manitoba (the Mincome experiment) and Namibia, and the Alaska Permanent Fund Dividend. It also outlines philosophical arguments for basic income, discusses the potential for a basic income to simplify the welfare system, and presents new concerns surrounding automation and the future of work.

Halldóra Mogensen

Halldóra Mogensen

Mogensen tells Basic Income News that she will “definitely” put forth the basic income proposal again during the new parliamentary session and “look[s] forward to continuing the conversation in parliament and warming the new MP’s up to the subject.”

Overall, she says, “the conversation [about basic income] is ongoing but no concrete plans have been made regarding implementation or testing.”

Meanwhile, the immediate objective of the Píratar, after forming the government, is to ratify its new constitution.

BIEN Iceland — which is non-partisan but founded by another Pirate, Albert Svan Sigurdsson (Statistics Iceland) — will launch officially on Saturday, December 10 (Human Rights Day).

 

References:

James Rothwell (December 2, 2016) “Iceland’s radical Pirate Party asked to form its next government,” The Telegraph.

Agence France-Presse in Reykjavik (December 2, 2016) “Iceland’s Pirate party invited to form government,” The Guardian.

Paul Fontaine (November 18, 2015) “Pirates Submit Proposal For Universal Basic Income In Iceland,” Reykjavík Grapevine.

Halldóra Mogensen, personal communication.

 

Past Basic Income News reports on Halldóra Mogensen’s proposal:

Stanislas Jourdan (November 25, 2014) “Interview: No one in the parliament had heard about basic income before

Tyler Prochazka (October 6, 2016) “Iceland: Will Pirate Party push basic income?

 

Albert Svan Sigurdsson talks about basic income for Iceland at BIST2016:

YouTube player

 


Article reviewed by Dawn Howard.

Cover photo: Government House in Reykjavík, CC BY-NC-ND 2.0 Damien Mórka.

Many photos of Pirate Party members unavailable for use in this article due to copyright restrictions.

BIEN Profiles: Karl Widerquist, former co-chair

Karl Widerquist in 2014

Karl Widerquist was vice-chair of BIEN from May 2017 to August 2018, after serving as co-chair from October 2010 to May of 2017, and as a member of the executive committee from 2004 to 2010. He is a political philosopher and economist at Georgetown University-Qatar. He is the co-founder of the U.S. Basic Income Guarantee (USBIG) Network, which he chaired from 1999 to 2008.

Widerquist is best known as an advocate of Basic Income. But he is also an interdisciplinary academic writer who has published in journals in fields as diverse as economics, politics, philosophy, and anthropology. He is a consistent critic of propertarianism (also known as right-libertarianism or libertarianism), Social Contract Theory, and the Lockean proviso. 8, and he cofounded in 2011. He has been a commentator on several television, radio, and print networks.

Contents

  1. Biography
  2. Advocacy of Basic Income
  3. Empirical and anthropological criticism of contemporary political theory
  4. Other political and economic theories
  5. Bibliography
  6. Media appearances

Biography

karl-joshuahair-bigfile

Karl Widerquist as a grad student-musician in 1993

Karl Widerquist was born in Chicago, Illinois in 1965. His family moved to Cassopolis, Michigan in 1969, and he grew up there. He completed a Bachelor’s Degree in Economics at the University of Michigan in 1987. For several years Widerquist pursued both music and economics. He was the original bass player for Michael McDermott, and play in several indie bands in New York in the 1990s.[i]

Widerquist completed a Ph.D. in economics at the City University of New York in 1996, later working at the Levy Economics Institute of Bard College and the Educational Priorities Panel. He was a Hoover Fellow at the Université catholique de Louvain where he worked with Philippe Van Parijs.[ii]

Widerquist received a second doctorate in Political Theory at the University of Oxford in 2006, and then worked as a Fellow at the Murphy Institute at Tulane University and as a Visiting Professor at the University of Reading in the United Kingdom. Since 2009, he has been an Associate Professor at Georgetown University-Qatar.[iii]

Advocacy of Basic Income

Widerquist claims to have been a supporter of some form of Basic Income Guarantee since he heard the topic discussed on an episode of Milton Friedman’s television show, Free to Choose, in 1980, when he was only 15 years old.[iv] But he did not start writing, working, or publishing on the topic until the late 1990s.[v]

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Michael A. Lewis, of Hunter College and USBIG

Widerquist has worked on Basic Income as an economist, a political theorist, a public policy analyst, and organizer. In 1999, Widerquist cofounded the U.S. Basic Income Guarantee (USBIG) Network along with Michael A. Lewis, Fred Block, Charles M. A. Clark, and Pamela Donovan. Widerquist chaired the organization until 2008 and edited its email NewsFlash until 2014.

Widerquist has been the co-chair of the Basic Income Earth Network (BIEN) since 2008. In 2011, Widerquist and Yannick Vanderborght cofounded BIEN’s news website, Basic Income News, and severed as its principle writer and editor until 2014, and he still writes for it occasionally. He and BIEN’s other co-chair, Louise Haagh chartered BIEN as a non-profit organization in 2016 and oversaw the expansion of BIEN’s activities.[vi]

Widerquist’s writing on Basic Income includes several articles reexamined the results of the Negative Income Tax experiments conducted in the United States and Canada in the 1970s.[vii] He and Michael Howard co-edited two books on Alaska’s Permanent Fund Dividend, addressing it as a small model of a Basic Income.[viii][ix]

Michael Howard (holding umbrella) and Karl Widerquist in the rain New York in 2017

Michael Howard holding umbrella and Karl Widerquist in the rain, New York in 2017

He has been critical of the “reciprocity” or “exploitation” objection to Basic Income. Under these objections people who receive Basic Income without work are said to fail in the duty of reciprocity by accepting social benefits without contributing to their production and thereby they are said to exploit workers who do produce those benefits. Widerquist’s responses hinge on the distribution of ownership of resources, which according to him, violates the principle of reciprocity because the law gives ownership of the Earth’s resources to a limited group of people without compensation for the loss of the commons for others. Therefore, Widerquist argues, to be consistent with reciprocity those who hold resources must make an unconditional payment to those who do not.[x]

If this argument works, instead of violating reciprocity, Basic Income is required by that principle. Widerquist further argues that Basic Income, so conceived, does not not exploit workers because it does not matter how one gets control of resources (through work, inheritance, or any other means). What matters is that anyone’s ownership of resources must not be part of a system that imposes propertyless on others.[xi] The absence of propertylessness is important not only to ensure that the privatization of resources is consistent with reciprocity but also to protect all workers from vulnerability to exploitation by their employers.[xii]

This view of property rights as something that both protects owners from interference and imposes interference on nonowners is a running theme throughout much of Widerquist’s writing and his arguments for Basic Income. This idea is closely related to left-libertarian or Georgist views of property, which are based on the principles of self-ownership and some principle of equal access to natural resources.[xiii] Left-libertarians argue that this view of resource rights is more consistent with negative freedom than any other view because the establishment and enforcement of property rights inherently interferes with non-owners in very substantive ways and in a very negative sense of the term.[xiv]

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The first of two books laying out Widerquist’s theory, “Justice as the Pursuit of Accord.”

Widerquist does not endorse the whole of either of those theories of justice. Instead he presents his theory of justice as a separate ideology, which he calls “justice as the pursuit of accord” or “indepentarianism.” The central difference between this theory and more mainstream left-libertarianism is that it rejects the left-libertarian view that equal access to resources entitles people to an equal share of the market value of natural resources.[xv] Widerquist instead argues that disadvantage might be entitle to greater redistribution larger than what would be required to equalize the income generated by natural resources.[xvi]

He makes several arguments for this position, the most important of which is that respect for equal freedom requires that any legitimate authority protects individuals from the most substantively important interference. This principle, Widerquist argues, requires respect for individuals’ status free individuals, which in turn requires economic independence. They need access to enough resources to ensure that they are not forced by propertylessness to serve the interests of people empowered to give them access to resources. Widerquist calls this concept, “freedom as independence,” or “freedom as the power to say no.” He argues that respect for independence in the present socio-economic context requires redistribution to come at least in part in the form of an unconditional Basic Income and that it must be at least enough to meet an individuals’ basic needs. He also argues that Basic Income protecting vulnerable individuals from exploitation and other forms of economic distress better than traditional conditional welfare state policies.[xvii]

https://www.youtube.com/watch?v=GP4sBGbeF8w

Philippe Van Parijs at TEDx Ghent

Widerquist is not the first to recognizing the poverty effectively forces individuals to work in service to more advantaged individuals, nor is he the first to argue that Basic Income can relieve that effective force. The unique feature of his theory is the central role that it gives to “the power to say no” in an individual’s status as a free person.[xviii] This line of argument seems to have recently become more important to the movement for Basic Income with even Philippe Van Parijs, one of the movement’s long-term leaders, arguing along these lines in his recent TEDx Talk, “The Instrument of Freedom.”

Empirical and anthropological criticism of contemporary political theory

https://i0.wp.com/edinburghuniversitypress.com/media/catalog/product/cache/1/image/650x/040ec09b1e35df139433887a97daa66f/9/7/9781474437790_1.jpg?resize=393%2C590&ssl=1

Prehistoric Myths, this book mentions Basic Income only once–on the last page

Widerquist’s criticism of right-libertarianism began in 2009 when he published both an encyclopedia entry on libertarianism and an article criticizing libertarianism. The article argues that the central principles that are meant to determine the just distribution of property in a right-libertarian economy can justify government ownership of the powers to tax, regulate, and redistribute property just as well as they can justify private ownership of property. It argues that there are no historical or principled reasons to believe that private owners holdings of their powers are any any better justified than government holdings of their powers.[xix]

Karl Widerquist began collaborating with anthropologist Grant S. McCall with the publication of two articles in 2015 and a book entitled Prehistoric Myths in Modern Political Philosophy released in January of 2017.[xx][xxi][xxii] The book uses anthropological evidence to debunk claims in contemporary political theory. It shows how, since the 1600s, most forms of social contract theory and natural property rights theory—especially those in the propertarian or right-libertarian tradition—have relied on the false empirical claim that Widerquist and McCall identify as “the Hobbesian hypothesis. That is, everyone is better off in a state society with a private property rights regime than everyone is, was, or would be in a society with neither of those institutions. The book shows how this claim became a central feature in the social contract justification of the state with Thomas Hobbes’s publication of Leviathan in 1651. Very much the same claim entered property rights theory a few decades later when John Locke made the fulfillment of his famous “proviso” central to his justification of the private property rights system. The book shows how the Hobbesian hypothesis has reappeared throughout the history of political thought since then and that it continues to be passed on in twenty-first century political theory.[xxiii]

Grant S. McCall of the Center for Human Environmental Research

The book argues, few of the philosophers who pass on the Hobbesian hypothesis offer any evidence to support it. Early philosophers relied on the colonial-era prejudice that any civilized man must be far better off than any savage natives. Later philosophers have simply relied on how commonly this claim is repeated to give it the air of obviousness. Yet, it is not the type of claim that can be obvious. It involves a comparison between the least advantaged people in modern, capitalist states with people who live in small-scale, stateless societies very remote to most modern writes in time and/or in place.[xxiv]

Widerquist and McCall present several chapters of evidence making that comparison and showing that the Hobbesian hypothesis is false: contemporary society has failed to fulfill the Lockean proviso. The least advantaged people in contemporary state society are actually worse off than the remaining native peoples who live outside the reach of the authority of the state or the property rights system. Therefore, if either of the two theories is to successfully justify the state and/or the property rights system, societies have to treat their disadvantaged individuals much better than they do now—whether that be by providing a Basic Income or by some other means.[xxv]

Other political and economic theories

Widerquist coauthored a textbook entitle, Economics for Social Workers.[xxvi] He has argued that Piketty’s observation that the rate of return on capital tends to exceed the growth rate in the economy should be seen as an outcome of the institutional setting rather than as a natural law of capitalism.[xxvii] Widerquist has also examined the effect that relaxing public choice theory’s assumption of self-interested behavior. He shows that many public choice problems exist as long as political actors are rational and disagree about what government should do, even if their disagreement stems from adherence to competing ethical theories rather than from competing self-interested wants.[xxviii]

Although Widerquist’s work uses some sufficientarian assumption, he criticized other aspects of sufficientarianism.[xxix] He has done historical work examining the many different (and often contradictory) ways that Lockean appropriation theory has been interpreted and revised.[xxx] He has written critically about wage subsidies as a redistributive strategy.[xxxi]

Media appearances

Karl Widerquist has frequently appeared in print, radio, and television news networks, including:

Click here for an updated (hopefully updated) list of Widerquist’s media appearances.

Publications

Books

Michael Anthony Lewis and Karl Widerquist, 2002. Economics for Social Workers: The Application of Economic Theory to Social Policy and the Human Services, New York: Columbia University Press

Karl Widerquist, Michael Anthony Lewis, and Steven Pressman (eds.), 2005. The Ethics and Economics of the Basic Income Guarantee, Aldershot, UK: Ashgate

Karl Widerquist and Michael W. Howard (eds.) 2012. Alaska’s Permanent Fund Dividend: Examining its Suitability as a Model, New York: Palgrave Macmillan

Karl Widerquist and Michael W. Howard (eds.) 2012. Exporting the Alaska Model: Adapting the Permanent Fund Dividend for Reform around the World, New York: Palgrave Macmillan

Karl Widerquist, March 2013. Independence, Propertylessness, and Basic Income: A Theory of Freedom as the Power to Say No, New York: Palgrave Macmillan

Karl Widerquist, Jose Noguera, Yannick Vanderborght, and Jurgen De Wispelaere (eds.), July 2013. Basic Income: An Anthology of Contemporary Research, Oxford: Wiley-Blackwell

Karl Widerquist and Grant McCall. Prehistoric Myths in Modern Political Philosophy, Edinburgh: Edinburgh University Press, January 2017

Journal Articles

Karl Widerquist, 1999. “Reciprocity and the Guaranteed IncomePolitics and Society, 33 (3): 386–401

Karl Widerquist, 2001. “Perspectives on the Guaranteed Income, Part I” the Journal of Economic Issues 35 (3): 749–757

Karl Widerquist, 2001. “Perspectives on the Guaranteed Income, Part IIthe Journal of Economic Issues 35 (4): 1019-1030

Karl Widerquist, 2003. “Public Choice and Altruism,” the Eastern Economic Journal 29 (3): 277-278

Karl Widerquist, 2005. “A Failure to Communicate: What (If Anything) Can we Learn from the Negative Income Tax Experiments?the Journal of Socio-Economics 34 (1): 49–81

Michael Lewis, Steven Pressman & Karl Widerquist, 2005. “The basic income guarantee and social economics,” The Review of Social Economy 63 (4): 587-593.

Karl Widerquist and Jurgen De Wispelaere, 2006. “Launching a Basic Income JournalBasic Income Studies 1 (1): 1-6

Karl Widerquist and Michael A. Lewis, 2006. “The Basic Income Guarantee and the goals of equality, efficiency, and environmentalism,” International Journal of Environment, Workplace and Employment 2 (1): 21-43.

Karl Widerquist, 2006. “Who Exploits Who?Political Studies 54 (3): 444-464

Karl Widerquist, 2006. “The Bottom Line in a Basic Income ExperimentBasic Income Studies 1 (2): 1-5

Karl Widerquist, 2008. “Problems with Wage Subsidies: Phelps’s economic discipline and undisciplined economicsInternational Journal of Green Economics 2 (3): 329-339

Karl Widerquist, 2009. “A Dilemma for Libertarianism,” Politics, Philosophy, and Economics 8 (1): 43-72

Karl Widerquist, 2010. “The Physical Basis of Voluntary Trade,” Human Rights Review 11 (1): 83-103

Karl Widerquist, 2010. “Lockean Theories of Property: Justifications for Unilateral Appropriation,” Public Reason 2 (3): 3-26

Karl Widerquist, 2010. “How the Sufficiency Minimum Becomes a Social Maximum,” Utilitas 22 (4): 474-480

Grant S. McCall and Karl Widerquist, 2015. “The Evolution of Equality: Rethinking Variability and Egalitarianism Among Modern Forager Societies.” Ethnoarchaeology 7 (1) March: 21 – 44

Karl Widerquist, 2015. “The Piketty Observation Against the Institutional Background: How natural is this natural tendency and what can we do about it?Basic Income Studies 10 (1), June, 83-90

Karl Widerquist and Grant S. McCall, 2015. “Myths about the State of Nature and the Reality of Stateless Societies.

[i]Personal Web Page of Karl Widerquist”, at widerquist.com/karl/personal.html

[ii]Karl Widerquist”, at explore.georgetown.edu

[iii]Karl Widerquist”, at explore.georgetown.edu

[iv]Personal Web Page of Karl Widerquist”, at widerquist.com/karl/personal.html

[v]Selected Works of Karl Widerquist”, at works.bepress.com/widerquist/

[vi]About BIEN”, at basicincome.org.

[vii] Karl Widerquist, 2005. “A Failure to Communicate: What (If Anything) Can we Learn from the Negative Income Tax Experiments?the Journal of Socio-Economics 34 (1): 49–81

[viii] Karl Widerquist and Michael W. Howard (eds.) 2012. Alaska’s Permanent Fund Dividend: Examining its Suitability as a Model, New York: Palgrave Macmillan

[ix] Karl Widerquist and Michael W. Howard (eds.) 2012. Exporting the Alaska Model: Adapting the Permanent Fund Dividend for Reform around the World, New York: Palgrave Macmillan

[x] Karl Widerquist, 1999. “Reciprocity and the Guaranteed IncomePolitics and Society, 33 (3): 386–401

[xi] Karl Widerquist, 2006. “Who Exploits Who?Political Studies 54 (3): 444-464

[xii] Karl Widerquist, 2010. “The Physical Basis of Voluntary Trade,” Human Rights Review 11 (1): 83-103

[xiii] Vallentyne, P. and H. Steiner (2000), The Origins of Left-Libertarianism: An anthology of historical writings. Basingstoke: Palgrave.

[xiv] Vallentyne, P. and H. Steiner (2000b), Left-Libertarianism and Its Critics: The Contemporary Debate. New York: Palgrave

[xv] Vallentyne, P. (2000). “Left-Libertarianism – A Primer,” in P. Vallentyne and H. Steiner, Eds.). Left-Libertarianism and Its Critics: The Contemporary Debate. New York: Palgrave, 1-22

[xvi] Karl Widerquist, March 2013. Independence, Propertylessness, and Basic Income: A Theory of Freedom as the Power to Say No, New York: Palgrave Macmillan

[xvii] Karl Widerquist, March 2013. Independence, Propertylessness, and Basic Income: A Theory of Freedom as the Power to Say No, New York: Palgrave Macmillan

[xviii] Karl Widerquist, March 2013. Independence, Propertylessness, and Basic Income: A Theory of Freedom as the Power to Say No, New York: Palgrave Macmillan

[xix] Karl Widerquist, 2009. “A Dilemma for Libertarianism,” Politics, Philosophy, and Economics 8 (1): 43-72

[xx] Grant S. McCall and Karl Widerquist, 2015. “The Evolution of Equality: Rethinking Variability and Egalitarianism Among Modern Forager Societies.” Ethnoarchaeology 7 (1) March: 21 – 44

[xxi] Karl Widerquist and Grant S. McCall, 2015. “Myths about the State of Nature and the Reality of Stateless Societies.Analyse & Kritik 37 (2), August

[xxii] Karl Widerquist and Grant McCall. Prehistoric Myths in Modern Political Philosophy, Edinburgh: Edinburgh University Press, January 2017

[xxiii] Karl Widerquist and Grant McCall. Prehistoric Myths in Modern Political Philosophy, Edinburgh: Edinburgh University Press, January 2017

[xxiv] Karl Widerquist and Grant McCall. Prehistoric Myths in Modern Political Philosophy, Edinburgh: Edinburgh University Press, January 2017

[xxv] Karl Widerquist and Grant McCall. Prehistoric Myths in Modern Political Philosophy, Edinburgh: Edinburgh University Press, January 2017

[xxvi] Michael Anthony Lewis and Karl Widerquist, 2002. Economics for Social Workers: The Application of Economic Theory to Social Policy and the Human Services, New York: Columbia University Press

[xxvii] Karl Widerquist, 2015. “The Piketty Observation Against the Institutional Background: How natural is this natural tendency and what can we do about it?Basic Income Studies 10 (1), June, 83-90

[xxviii] Karl Widerquist, 2003. “Public Choice and Altruism,” the Eastern Economic Journal 29 (3): 277-278

[xxix] Karl Widerquist, 2010. “How the Sufficiency Minimum Becomes a Social Maximum,” Utilitas 22 (4): 474-480

[xxx] Karl Widerquist, 2010. “Lockean Theories of Property: Justifications for Unilateral Appropriation,” Public Reason 2 (3): 3-26

[xxxi] Karl Widerquist, 2008. “Problems with Wage Subsidies: Phelps’s economic discipline and undisciplined economicsInternational Journal of Green Economics 2 (3): 329-339

Karl Widerquist in speaking in front of (a painting of) the Danish Parliament

Karl Widerquist in speaking in front of (a painting of) the Danish Parliament

ALASKA, US: Judge Upholds Governor’s Veto of Part of State’s Social Dividend

ALASKA, US: Judge Upholds Governor’s Veto of Part of State’s Social Dividend

A superior court judge has upheld the Governor of Alaska’s decision to halve the amount of the state’s annual social dividend payment in 2016.

Senator Bill Wielechowski CC BY-SA 4.0 Peter Stein

Senator Bill Wielechowski
CC BY-SA 4.0 Peter Stein

As previously reported in Basic Income News, Alaskan senator Bill Wielechowski filed a lawsuit in which he contested Governor Bill Walker’s veto of about half of the funding that the state legislature had allocated to the state’s Permanent Fund Dividend (PFD) and asked the courts to require that the Permanent Fund Corporation transfer the full amount originally allocated to the PFD.

Walker vetoed the funds in June 2016, in the face of a mounting budget crisis in the state, and Wielechowski filed his suit in September. On November 17, Superior Court Judge William Morse dismissed the case.

The Alaska Permanent Fund was established in 1976 by an amendment to the Alaska State Constitution that mandated that at least 25% of the money earned from the state’s oil be placed into a permanent fund, enabling the state to share its profits from non-renewable resources with future generations of Alaskans. In 1980, the Permanent Fund Corporation was created to manage the fund. Financed from the investment earnings on the permanent fund, the PFD is a cash payment distributed annually to all permanent residents (including children). The PFD is well-known in basic income circles as a “real world” example of a basic income–a universal and unconditional cash transfer to individuals. The PFD reached its peak amount of $2,072 in 2015, and it would have stood at $2,052 in 2016 had Walker not vetoed the legislature’s budget. Instead, this year’s PFD is $1,022 per Alaskan resident.

In previous years, the transfer of money from Permanent Fund Corporation to the fund for the dividend has been routine and uncontested.

In his suit, Wielechowski charged that Walker violated a law (Alaska Statute 37.13.145) that states that the Permanent Fund Corporation “shall” transfer half of its available income to the fund for the PFD. On Wielechowski’s interpretation, this statute implies that the transfer of funds is “automatic” and thus not subject to veto by the governor.

Morse argued, however, that the amendment setting up the Permanent Fund did not specify that it would affect the governor’s power of veto, saying to Wielechowski, “You’re telling me that what they secretly were trying to do was eliminate the governor’s veto authority, but they never mentioned that?”

Wielechowski has said that he will appeal the decision to the Alaska Supreme Court.

References

Alaska Dispatch News (November 17, 2016) “Judge tosses lawsuit challenging Alaska Gov. Walker’s PFD vetoAlaska Dispatch News.

Andrew Kitchenman (November 17, 2016) “Judge upholds Walker’s veto halving Permanent Fund dividendsKTOO Public Media.


Alaska pipeline photo CC BY 2.0 Maureen