EUROPE: European Social Survey (ESS) reveal findings about attitudes toward Universal Basic Income across Europe

EUROPE: European Social Survey (ESS) reveal findings about attitudes toward Universal Basic Income across Europe

Map of Europe. Credit to: Flickr

 

The European Social Survey (ESS) has published its 2016 Round 8 results, which include, for the first time in its history, a polling question asking participants to express their attitude to the hypothetical introduction of a basic income scheme in society.

 

The 34,604 participants across 18 European countries were asked whether, overall, they would be ‘strongly against’, ‘against’, ‘in favour’ or ‘strongly in favour’ of a scheme – labelled by the ESS as a ‘basic income scheme’ – that operates under the following conditions:

  • The government pays everyone a monthly income to cover essential living costs;
  • It replaces many other social benefits;
  • The purpose is to guarantee everyone a minimum standard of living;
  • Everyone receives the same amount regardless of whether or not they are working;
  • People also keep the money they earn from work or other sources;
  • This scheme is paid for by taxes.

 

There was also an option to leave no response to the question. The answer rate across the countries mostly fell between 90% and 98%, though the two anomalies were Poland, with an 85.3% rate, and the Russian Federation, with an 80.9% rate. Given it would be conjecture to determine reasons for this variation (since any information of this type wasn’t included in the survey), the more in depth analysis focused on those who did express opinion.

 

Of this group, the Russian Federation had the highest percentage ‘in favour’ or ‘strongly in favour’ of the ‘basic income scheme’, at a combined 73.2%, whilst participants in Norway were the least in favour, with only 33.7% answering in the positive. Taking the Esping-Anderson definition used throughout the ESS analysis of country groupings (based on Welfare State Regimes in 1990), it was evident that there was a slight, but evident, correlation between the category the country falls within and the general positivity expressed in the survey. The ‘Eastern Europe’ countries, for example, tended to be generally more in favour of the scheme, with, in addition to Russia, 65% of those in Slovenia, 58.5% of those in Poland, 52.2% of those in the Czech Republic, and 46.7% of those in Estonia either ‘in favour’ or ‘strongly in favour’ of the scheme (representing the 1st, 3rd, 5th, 8th and 12th countries, respectively, most in favour of the idea). Conversely, the countries falling within the ‘Social Democratic’ grouping tended to be generally less in favour of the scheme, with 66.3% of those in Norway, 62.4% of those in Sweden, 54.0% of those in Iceland, 50.2% of those in Netherlands and 44.3% of those in Finland either ‘against’ or ‘strongly against’ the scheme (representing the 1st, 3rd, 5th, 9th and 12th countries, respectively, least in favour of the idea). The countries within ‘Christian Democratic’ grouping – Germany, France, Austria and Belgium – plus the UK and Ireland, showed a more even split, generally in favour of or generally against, whilst Israel and Switzerland were treated as their own categories, with the former 65% either ‘in favour’ or ‘strongly in favour’ of the idea, and the latter, at the other end of the scale, 65.3% either ‘against’ or ‘strongly against’ the idea.

 

In terms of demographic breakdown, age seemed to be a driver of support, with all country groupings showing the highest level of support within the 15-34 age group, from which a common curtailing trend prevailed as the age bracket increased. The source of participant’s income also seemed to determine level of support in a similar cross grouping trend, with all country categories showing the highest level of support when income was derived from ‘unemployment benefits’ or ‘other social benefits’, and conversely, all showing the lowest level of support when income was accrued through ‘self-employment’, ‘pension’, and to a lesser extent, through general ‘wages or salaries’. Though the level of actual income, in terms of income percentile category within the country groupings, offered no indication as to whether a participant would be generally for or against the idea, there was a clear trend that, if the participant felt that they were finding it ‘very difficult’ or ‘difficult’ to cope with their level of income, they were far more likely to be pro the idea of the basic income scheme. Somewhat pertaining to real income not being an indicator, ‘social class’ (defined by ‘skilled workers’, ‘unskilled workers’, ‘small business owners’, ‘lower-grade service class’ and ‘higher-grade service class’) showed no variation in preference other than the country groupings’ reasonably strong overall proclivity. ‘Gender’ and ‘educational level’ both showed scattered and inconclusive trending.

 

Though the results of the survey do give some indication (and from a large data source) of people’s openness to ‘basic income’ across much and varying parts of Europe, the wording of the question requires that caution is taken when interpreting the data. Whilst the ESS description of a ‘basic income scheme’ does include all the elements BIEN determine as being necessary when talking about the concept (universality, unconditionality, with payments made periodically, in cash and to the individual), it also states, additionally, that it would would be paid for ‘by taxes’ and that it would replace ‘many other social benefits’. It was, therefore, the opinion of a particular implementation of universal basic income that was sought after (especially where the latter condition’s inclusion was concerned), where preconceived notions of the scheme’s potential positives or negatives are already affirmed. That is, it implies that there is no option for basic income to be included in addition to, and thus leading to an expansion of, the current social security system, but only as part of one that is fixed or diminishing in size. Other recent surveys, such as the IPSOS Mori in the UK, and the Politico/Morning Consult in the US, used wording only focusing on the basic income concept rather than its implementation.

 

More information at:

ESS8 – 2016 Data Download’, European Social Survey.org, October 31st 2017

Stuart Smedley, ‘Half of UK adults would support universal basic income in principle’, Ipsos.com, September 8th 2017

Patrick Hoare, ‘US: New POLITICO/Morning Consult poll finds that 43% of Americans are in favour of a UBI’, Basic Income News, October 5th 2017

 

Should we worry about Basic Income earners slacking?

Should we worry about Basic Income earners slacking?

One of the most common objections to Universal Basic Income (UBI) states that the policy will disincentive individuals from working. There is an apparent fear that a UBI will bring widespread idleness. While we should be optimistic that basic income (or Negative Income Tax) experiments, which have recorded relatively low reductions in labour effort while decreasing poverty and increasing well-being, the devil’s in the details (and caveats) [1]. Instead, let’s take a step back and reflect on whether we should be working the long hours we still do and whether a hardline approach [2] to incentivising employment is necessary and effective.

Historical increases in productivity since the start of the 20th century developed predictions that citizens will not need to work as much as they had in the past. In the 1930s, Bertrand Russell remarked at the great productive capacities of the British economy during WW1 and detested the continued obsession with work for its own sake[3]. Nowadays, the need for basic products and services is adequately met and producing more does not mean working more. We need not be working the long hours we are required to for our societies to continue to grow. As economic historian Robert Skidelsky put it, “with our post-machine standard of living, we can afford to shed some of the Puritan guilt that has, for centuries, kept our noses to the grindstone” [4]. As such we should not worry about UBI earners enjoying more leisure time.

Increased leisure time allows individuals to pursue several goods in life, be it developing skills, learning something new, caring for the elderly or children, or just watching their favourite show. Shortening working days has been shown to increase productivity, promote well-being, reduce sick leave, and allow for a better work-life balance [5]. What should one do in their leisure time is up to them to decide. Long hours of work, however, seem to exhaust the worker as to prevent him from enjoying leisure time actively. Picture an “average Joe”, slumped in his armchair, watching a game of football with a beer in his hand. Admittedly, when a UBI is first introduced, the belief of many may be akin to that of “average Joe”. Long working days and passive evenings is what we’re used to after all.

Bertrand Russell thought, “…the wise use of leisure […] is a product of civilisation and education. A man who has worked long hours all his life will become bored if he is suddenly idle. But without a considerable amount of leisure a man is cut off from many of the best things.” [6]

If there are many slackers, we shouldn’t worry about them. With no requirement to work they should be able to pursue ends they would have attempted to do anyway. This may still be work, albeit in a different form, or training for a job for which you were previously thought unqualified. Many people may have waited for these activities or efforts until they had earned enough income. UBI reduces concerns of financial stability. We are not used to a society where individuals do not have (serious) personal financial concerns. It may take a generation or two for us to get used to it and be able to make wise use of our leisure time. A lot of people choose to spend their leisure time being productive, while others are happy to sit and play PC games all day long. In the meanwhile, many will be bored with the extra time they have on their hands and that might be a good thing.

Individuals work for reasons far exceeding the need to earn subsistence. Unfortunately, despite years of technological development and raised standards of living, individuals are still thought only capable of being motivated to work through the deprivation of their physiological needs. Empirical evidence suggests people care about their work for more than just earning a wage [7]. When the labour market does not offer a sufficient supply of meaningful work that a labourer can take on, earning subsistence seems to take precedence. Systematically denying individuals meaningful work, however, could be detrimental to the individual’s capacity of devising and pursuing their conception of the good life.

It is difficult to conceive of alternative ways to sustain oneself and pursue a good life. It is arguably easier to find meaning in the responsibilities placed upon you by virtue of employment rather than to find yourself bored, seeking meaning, deciding upon a pursuit, and motivating oneself to do it. A new field of psychological research, developed by Ryan and Deci, called Self-Determination Theory (SDT) should raise optimism.

SDT posits “human nature […] is deeply designed to be active and social and which, when afforded a good enough (i.e. basic-need-supportive) environment, will move toward thriving, wellness, and integrity” [8]. Humans achieve optimal functioning when managing their physiological needs, their psychological needs are often achieved as well. These needs include autonomy – when one’s behaviours are inline with one’s authentic interests, competence – feeling mastery in significant life contexts, and relatedness – when you feel cared for or significant in front of others. “People’s curiosity, creativity, productivity, and compassion are most robustly expressed” in social contexts in which their psychological needs have been taken into account.

If the current generation is afforded a UBI many who reduce their time at work will become bored. A well-implemented UBI policy guarantees one’s physiological needs are met and frees individuals to fulfill their psychological needs. When these same individuals recognise their boredom they will seek to alleviate it. Initially, this may take the form of passive entertainment (and some may stay here) while others will try and fulfil their psychological requirements through meaningful activities (congruent with their psychological needs). Those that never make an effort to improve themselves likely already have this inclination under the current social system, and this should be rare anyway. Figuring out one’s intrinsic interests is difficult and takes serious reflective deliberation. While instinct leads us to the fulfilment of psychological needs, we may not have these clearly defined ourselves or be properly aware of them. As such, in order to ease the existential burden of the first generation of basic income earners the public should be educated about their psychological needs and ways to pursue them.

 

About the author:

Aleksander Masternak is a freelance writer and web developer based in Berlin.
He holds an MSc in Political Theory from the University of Amsterdam and an MA in History and Economics from the University of Glasgow. In the past, he worked as an archival research assistant to the Great War Project in Glasgow, a TEDx conference event organiser, an English language teacher, a marketing manager for a start-up, and Centre Manager of a language school.

 

[1] Widerquist, Karl. (2017, November 28). The Basic Income Guarantee Experiments of the 1970s: A Quick Summary of Results. BIEN.

Weller, Chris. (2017, May 10). Finland’s Basic Income Experiment Is Already Lowering Stress Levels – and It’s Only 4 Months Old.

Widerquist, Karl. (2017, November 21). Basic Income Experiments-The Devil’s in the Caveats. BIEN.

[2] stick-approach: when one is incentivised to act through the threat of punishment and coercion rather than through the promise of reward (carrot-approach).

[3] Russell, Bertrand. (1932). In Praise of Idleness.

[4] Skidelsky, Robert. (2013). Rise of the Robots: What Will the Future of Work Look Like? The Guardian.

[5] Bernmar, Daniel. (2017, January 06). Ignore the Headlines: A Six-hour Working Day Is the Way Forward. The Guardian.

[6] Russell (1932).

[7] Gheaus, A., &; Herzog, L. (2016). The Goods of Work (Other Than Money!).

[8] Ryan, R. M., &; Deci, E. L. (2017). Self-determination theory basic psychological needs in motivation, development, and wellness. New York: Guilford Press.

 

BARCELONA, SPAIN: Think Tank Publishes New Paper on City-Driven Basic Income

BARCELONA, SPAIN: Think Tank Publishes New Paper on City-Driven Basic Income

Wise Cities & the Universal Basic Income: Facing the Challenges of Inequality, the 4th Industrial Revolution and the New Socioeconomic Paradigm” by Josep M. Coll, was published by the Barcelona Centre for International Affairs (CIDOB) in November 2017. CIDOB is an independent think tank in Barcelona; its primary focus is the research and analysis of international issues.

The Wise Cities Model

CIDOB has published other works about a concept it calls “Wise Cities,” a term intended to holistically encompass words like “green city” or “smart city” in popular usage. Wise Cities, as defined by CIDOB and others in the Wise Cities think tank network, are characterized by a joint focus on research and people, using new technologies to improve lives, and creating useful and trusting partnerships between citizens, government, academia, and the private sector. 

The 2017 report by Coll opens with a discussion of the future of global economies; it highlights mechanization of labour, potential increases in unemployment, and financial inequality. It next points to cities as centres of both population and economic innovation and experimentation. A Wise City, the paper states, will be a hub of innovation that uses economic predistribution—where assets are equally distributed prior to government taxation and redistribution—to maximize quality of life for its citizens.

Predistribution in Europe: Pilot Projects

Universal Basic Income (UBI) is one example of a predistribution policy. After touching on UBI’s history and current popularity, Coll summarizes European projects in Finland, Utrecht, and Barcelona in order to highlight city-based predistribution experiments. Coll adds that while basic income is defined as unconditional cash payments, none of these pilots fit that definition: they all target participants who are currently, or were at some time, unemployed or low-income.

Finland’s project began in January 2017, and reduces the bureaucracy involved in social security services. It delivers an unconditional (in the sense of non-means-tested and non-work-tested after the program begins) income of 560 €/month for 2,000 randomly selected unemployed persons for two years. Eventual analysis will consist of a comparison with a larger control group of 175,000 people, and the pilot is a public initiative.

The city of Utrecht and Utrecht University designed an experiment which would also last two years, and would provide basic income of 980 €/month to participants already receiving social assistance. The evaluation would assess any change in job seeking, social activity, health and wellness, and an estimate of how much such a program would cost to implement in full. The author comments that the program was suspended by the Netherlands Ministry of Social Affairs, and the pilot is currently under negotiation.

Barcelona has begun an experiment with 1,000 adult participants in a particularly poor region of the city, who must have been social services recipients in the past. “B-Mincome” offers a graduated 400-500 €/month income depending on the household. After two years, the pilot will be assessed by examining labour market reintegration, including self-employment and education, as well as food security, health, wellbeing, social networks, and community participation. Because the income is household-based, and not paid equally to each individual, it is not a Basic Income, but the results could still provide useful evidence for the possible effects of a future Basic Income.

The Implications

Coll identifies several key takeaways from a comparison of these projects. None of the experiments assess the potential behavioural change in rich or middle class basic income recipients. In addition, multi-level governance may cause problems for basic income pilots, but these issues may be mitigated as more evidence assessing the effectiveness of UBI builds from city-driven programs. Coll also acknowledges that all of the experiments listed in his paper are from affluent regions.

In conclusion, the author argues that UBI is a necessary step to alleviate economic inequality. While cities are experimenting with the best ways to implement UBI, they are often not real UBI trials (as they are not universal), and they do not always take an individual-based approach; however, they are nevertheless useful components of the Wise City model.

 

More information at:

Josep M. Coll, “Why Wise Cities? Conceptual Framework,Colección Monografı́as CIDOB, October 2016

Josep M. Coll, “Wise Cities & the Universal Basic Income: Facing the Challenges of Inequality, the 4th Industrial Revolution and the New Socioeconomic Paradigm,Notes internacionals CIDOB no. 183, November 2017

 

UNITED STATES: Stockton, California plans a Basic Income Demonstration

UNITED STATES: Stockton, California plans a Basic Income Demonstration

Stockton, California and Mayor Michael Tubbs announced plans for a Basic Income trial – the Stockton Economic Empowerment Demonstration (SEED). The project is still in its initial stage, and the design phase of the project will be launched in January 2018. The design period will last 6 to 9 months, and according to a Sukhi Samra, representative of the SEED project, the design phase is being used to “solicit community input and to ensure that SEED is really reflective of the needs of the Stockton community.”

The concrete outline of the project is still in the early stages, but there are some starting points. The basic income stipend will be $500  per month and  will apply to anywhere  from 25 families for 5 years to 100 families for 1.5 years. The project has secured a $1 million grant from the Economic Security Project and a grant from the Goldhirst Foundation of $250,000 which was announced last Thursday. The project also hopes to be able to raise additional funds. According to the guidelines in the SEED website, the demonstration will gather both research and storytelling partners, and those who are interested in participating can follow the info here. The site also states the project will prioritize high quality data with the cooperation of academics and academic institutions, while also engaging in storytelling, encouraging documentary filmmakers and creative storytellers to join the team.

The city of Stockton has had a difficult past.  In 2012, it became the first city in the United States to file for bankruptcy. Since then, the city has been recovering, but it continues facing important challenges since 1 in every 4 residents still live below the poverty line. Mayor Michael Tubbs became the youngest Mayor in history, and the first African American Mayor of Stockton, in 2017. He has a progressive agenda in many areas, and the Basic Income demonstration is intended as a way to show what happens when a group of people have an income floor that is guaranteed. Stockton will be the first public/private trial in the United States with significant leadership from a public official. Mayor Tubbs is inspired by Martin Luther King Jr. who defended a guaranteed basic income.  Tubbs is interested in finding out “if a guaranteed income will unleash potential and provide the needed stability.”

 

More Info:

Stockton Economic Empowerment Demonstration Website.

Economic Security Project.

Dylan Matthews, ”Three years ago, Stockton, California, was bankrupt. Now it’s trying out a basic income”, Vox, October 18, 2017

Alexis C. Madrigal, “Free Money at the Edge of the Tech Boom”, Atlantic, October 19, 2017

Namibia May Be Considering Basic Income Grants

Namibia May Be Considering Basic Income Grants

The Ministry for Poverty Eradication and Social Welfare in Namibia has floated the possibility of introducing basic income grants for those between 19 and 59, according to Namibian national daily paper New Era.

The Ministry was set up in early 2015, following the landslide election of President Hage Geingob. It is headed by former Bishop Zephania Kameeta, who has a history of universal basic income (UBI) advocacy. A paper entitled Blue Print on Wealth Distribution and Poverty Eradication, put out by the Ministry in May 2016, stated that “measures should provide people with tools that build resilience and self sufficiency to break the cycle of poverty. Social safety nets are one of such measures that can help graduate people out of poverty to sustainable livelihoods.”

Reporting on an initiative by the Ministry to discuss implementation of the poverty eradication plan, New Era titled their article “Basic Income Grant Under Consideration”, and ended it with the sentence, “The ministry will also look into introducing a basic income grant for people between the ages of 19 and 59, who do not qualify for the existing grants yet do not have means to sustain themselves.” At the time of going to press, no external confirmation could be found of New Era’s statement on basic income grants; however, although the paper is technically owned by the New Era Publication Corporation, it is in fact openly run by the Namibian state and as such may have more detail on government policies than other national newspapers.

Namibia has a population of approximately two million people, and for some time was part of South Africa, only gaining independence in 1990. Geingob is the third President of an independent Namibia.