Finnish Green Party updates its basic income policy

Finnish Green Party updates its basic income policy

Ahead of the next general elections in April, the Green Party of Finland has reiterated its support for a basic income policy and updated its model.

Last saturday, the board of the Green league (Finnish Green Party) presented its political platform for the next general elections, which included a proposal for a basic income in Finland.

In line with the current level of social security systems in Finland, the party has estimated the level of basic income at 560€ for all adults. It would replace most of the existing minimum social benefits such as the unemployment benefit and the minimum parental allowance. The party, who supports basic income for a long time already, has updated its model and has made the details available on its website.

The program was adopted last sunday at the Party’s general meeting.

79% of Finns support a basic income policy

Basic income is becoming a uniting topic in Finland. A recent public opinion poll conducted by e2, the think tank of the Finnish Centre Party and the market research company Taloustutkimus. The survey concluded that 79% of Finns support a basic income policy if it “guarantees minimum subsistence, reduces bureaucracy and encourages work and entrepreneurship”. 1268 people replied the poll. The support was highest among young age groups and pensioners. Voters of the Green Party and the Left Alliance are also the most strong supporters for basic income. The lowest support for the policy is found among the Christian Democrat party and the farmers.

During the national citizens’ initiative for basic income in 2013, another opinion poll showed that 54% of the Finns supported basic income. This could confirm a positive evolution of the public support for basic income, however the question was formulated in a different way, which may explain the difference.

The Green League of Finland is the fifth political force in Finland, with around 8% of voters set to back the party, according to recent electoral polls. The centrists party of Finland, which is also in favor of basic income pilots, currently leads the electoral polls with 25.4% of votes intentions. It has won a lot of public support recently.

Last september, the leader of the Centre party has pushed the idea of basic income pilots in several municipalities. The proposal was immediately backed by the Greens, the Left Alliance and even by some conservatives such as Alexander Stubb, prime minister and leader of the National Coalition Party (conservatives).

The parliamentary elections will take place on April 19th.

Ed Dolan, “Universal Basic Income: An Idea Whose Time Has Come”

[Josh Martin]

Dolan’s post focuses on Representative Paul Ryan’s recently proposed welfare reform, which would consolidate many individual welfare programs into one grouped “Opportunity Grant” for each applicable citizen.  While Ryan should be praised for trying to cut back on the bureaucracy in welfare, Dolan believes that Ryan’s biggest error was continuing to impose work requirements on each beneficiary, thus maintaining the work disincentives associated with moving from benefits into work.  Dolan believes that Ryan’s plan should have gone further in allowing states to implement a universal basic income if they choose.

Ed Dolan, “Universal Basic Income: An Idea Whose Time Has Come”, Real Clear Markets, 6 August 2014

Mike Konczal, “The Pragmatic Libertarian Case for a Basic Income Doesn't Add Up”

[Josh Martin]

Konczal vehemently disagrees with Zwolinski’s post from Cato Unbound that made a pragmatic libertarian case for a basic income.  In the original post, Zwolinski points out the number of different welfare programs and the size of its bureaucracy as a reason to switch to the simpler basic income, but Konczal counters this by showing that seven programs account for most of welfare and that the average administrative cost is around five percent for each program.  Thus, Konczal claims that a push for a basic income needs to be built on a sturdier argument than the libertarian one.

Mike Konczal, “The Pragmatic Libertarian Case for a Basic Income Doesn’t Add Up”, Next New Deal, 8 August 2014.

Konczal discusses the size of the bureaucracy in welfare (Source: Next New Deal)

Konczal discusses the size of the bureaucracy in welfare (Source: Next New Deal)

Paul Krugman, “Libertarian Fantasies.”

Paul Krugman, the New York Times

Paul Krugman, the New York Times

In this article, Noble-prize-winning economist Paul Krugman criticizes a plan for a Basic Income Guarantee (BIG) put forward by libertarians. He does not say outright whether he believes BIG is a good or bad idea in itself. He says instead that a libertarian plan to eliminate costly, inefficient welfare bureaucracy and save enough money to provide a sizeable basic income guarantee for everyone. With reference to Mike Konczal, Krugman argues that there isn’t enough inefficiency to fund such a large initiative. Krugman writes, “Actually, the cost of bureaucracy is in general vastly overestimated.” According to Krugman, “The great bulk of welfare-state spending comes from a handful of major programs, and these programs are fairly efficient, with low administrative costs.”

That’s the extent of the analysis. Krugman criticizes only this one plan for BIG. He doesn’t say anything good or bad about BIG overall or about whether it would be worth paying more taxes to create a BIG. By criticizing one plan for BIG and saying nothing good about any other plans, the overall implication is negative, but that is only an implication, and it may or may not be intended.

Paul Krugman, “Libertarian Fantasies. The New York Times, Opinion Pages: The Conscience of a Liberal, August 9, 2014

Matt Zwolinski, “The Pragmatic Libertarian Case for a Basic Income Guarantee”

[Josh Martin]

Zwolinski’s excellent article acts as the lead essay for a special month-long debate hosted by Cato Unbound on “The Basic Income and the Welfare State”.  Written from the pragmatic libertarian perspective, Zwolinski outlines the current libertarian objections to the welfare state—largely its complexity and extensive bureaucracy—and argues that a basic income guarantee would be much more desirable for libertarians than the status quo.  To solidify his argument he highlights four main benefits of a basic income guarantee: it would have less bureaucracy, be cheaper to implement, see less rent-seeking behavior, and be less paternalistic in nature than the current system.  Zwolinski ends his essay by admitting that a perfect libertarian utopia will never happen, but a basic income guarantee could help nudge society in its direction.

Matt Zwolinski, “The Pragmatic Libertarian Case for a Basic Income Guarantee”, Cato Unbound, 4 August 2014.

Cato Unbound is hosting a month-long discussion on "The Basic Income and the Welfare State"

Cato Unbound is hosting a month-long discussion on "The Basic Income and the Welfare State"