PORTUGAL: PAN political party defends a Basic Income pilot project in Cascais

 

The Portuguese political party PAN (People, Animals, Nature), defends a Basic Income pilot program in Cascais, a town just outside of Lisbon. The proposal is put forward by the PAN Cascais candidate, Francisco Guerreiro in the context of the local elections happening in Portugal on October 1st. We spoke to Francisco Guerreiro about the proposal and he said: “Cascais in a town that has a high budget of around 160 million € and with a diverse population at a social, economic and cultural level.” PAN defends that Cascais would be a great location for the implementation of a pilot program.

 

Francisco Guerreiro, PAN candidate for Cascais

Francisco Guerreiro’s proposal is to create a workgroup to discuss a pilot program in the municipality of Cascais that would be diverse, including, not only politicians but also academics and scientists. PAN does suggest however that the pilot should be constructed in a way that is as encompassing as possible, including several social strata and not only applicable to the unemployed or to people with low income. The workgroup that PAN proposes would also analyze the financial viability and funding of the pilot program, as well as the sample and the length of the program, exploring national and international sources of funding. Cascais is a municipality that besides having residents of different social and economic status, also has both urban and rural settings, making it an ideal experimental ground for a Basic Income pilot.

 

PAN is the only Portuguese political party so far to officially include Basic Income in their program and has a longstanding history of defending the idea. However, this is the first time that there is a specific proposal to implement a pilot program by a local candidate. The political party PAN is also a partner of the 17th BIEN Congress happening in Lisbon, September 25-27 and of Basic Income Week, September 25-30.

 

More information at:

[In Portuguese]

Sofia Rodrigues, “PAN vai propor estudo sobre atribuição do Rendimento Básico Incondicional [Political party PAN is going to propose a study on the implementation of a basic income]”, Público, 15th February, 2016

Maria João Lopes, “PAN defende projecto-piloto de rendimento básico em Cascais [Political party PAN defends a basic income pilot project in Cascais]”, Público, 27th August, 2017

[In English]

André Coelho, “Portugal: Presidency candidate Manuela Gonzaga supports basic income”, Basic Income News, 19th October, 2015

André Coelho, “PORTUGAL: Basic income conference in Portugal paves the way for a wide public discussion”, Basic Income News, 24th February, 2016

New Book: “Universal Basic Income: Pennies From Heaven” by Paul O’Brien

New Book: “Universal Basic Income: Pennies From Heaven” by Paul O’Brien

Author and academic Paul O’Brien explores the arguments for and against the idea of Universal Basic Income and explains how it might work in practice.

Paul O’Brien is a member of Basic Income Ireland, an affiliates of the Basic Income Earth Network (BIEN). The book—published on the 26 May 2017—explores themes that the group have been discussing for some years.

The book is now available from bookstores and online retailers.

Teppo Eskelinen and Johanna Perkiö, “Micro-investment perspective and the potential of the universal basic income”

Teppo Eskelinen and Johanna Perkiö, “Micro-investment perspective and the potential of the universal basic income”

Teppo Eskelinen and Johanna Perkiö have published “Micro-investment perspective and the potential of the universal basic income” in Development Policy Review (June 2017).

Eskelinen and Perkiö analyze basic income as a tool to promote micro-investments by poor individuals and households, hypothesizing that a basic income would impart to such households a “greater confidence to undertake more risky activities, knowing they will have a minimum income to fall back on.”

As they explain in the abstract, the authors “aim to estimate potential impacts of the BI by synthesising existing knowledge. This estimation will not be quantitative, but rather show likely outcomes of a BI scheme. We will complement existing knowledge by exploring cognate cash transfer policies and other experiences that bear similarity to the BI.”

As a core part of their analysis, the authors examine the pilot studies conducted in the Namibian village of Otjivero-Omitara (2008 to 2009) and the Indian state of Madhya Pradesh (2011 to 2013), looking especially at the effects on “labour, behavioural impacts, psychological impacts, and investment in human capital.” Regarding psychological impacts, they point out that, in the Madhya Pradesh experiment, “households receiving cash grants were three times more likely to start a new business or production activity than control group households,” which appears to affirm their conjecture that “the availability of money combined with a sense of security is what eventually determines the occurrence of micro-investment.” Regarding behavior, they note a “recurring observation” that part of recipients’ additional income was “invested in income-generating activities.”

Eskelinen is a philosopher and social scientist who has published on political theory, political economy, global justice, and development theory. He is senior lecturer at University of Jyväskylä.

Perkiö is a doctoral candidate in the social sciences at the University of Tampere, writing her dissertation on the history of the basic income debate in Finland (see her November 2016 presentation for Kela). Many of her previous articles and blog posts on basic income available online, including the Transform! Network discussion paper “Basic Income Proposals in Finland, Germany and Spain,” the International Solidarity Work report “Universal Basic Income – A New Tool for Development Policy?,” and a response to the OECD’s recent critical report on basic income, published on Kela’s blog.


Reviewed by Russell Ingram

Photo: Store in Madhya Pradesh, CC BY 2.0 Brian Gratwicke

Cure health inequality by reducing income inequality

Cure health inequality by reducing income inequality

The relationship between health and social context includes a range of factors influencing overall well-being. Social status, class, lifestyle, education, and environment primarily shape these factors. Age, gender, race, and ethnicity are structural variables of equal importance to health outcomes. Health is being facilitated or inhibited by the socioeconomic, cultural, and political backgrounds, in which one is born and raised. The people that view these data points and makes correlations between socioeconomic status and backgrounds to health issues have an interesting career because they constantly have to adapt to the understanding of new societal groups and focus on why a certain group would make a certain decision, for example.

In the last few decades, we have seen growing income inequality between the poor and rich. Since the 1980’s, the United States of America has seen a shift in wealth from the middle class towards the wealthiest people and transnational companies. The top one-tenth of 1 percent owns as much as the bottom 90 percent. Firebaugh and Beck argued economic growth would automatically benefit the masses, which in hindsight seems questionable.

As health outcomes and life expectations closely liaise to within-country income inequality, policies should aim at finding appropriate actions to address this phenomenon. Meaning, getting basic family urgent care, in terms of medical needs cannot be compromised. Currently, in some countries, those who earn more are able to find medical treatments to treat their injuries or illnesses, whilst those who don’t have as much money are having to cope with their illness or find other treatments. For example, those who suffer from digestive problems would have to pay a significant amount to get their illness looked at, so people on lower incomes will find supplements to help them instead. The bio complete 3 supplement can deliver prominent improvements for people’s digestive systems, so people are able to treat these problems. However, not all problems can be treated with supplements. This is why changes have to be made.

Wilkinson and Pickett found health issues to be strongly correlated to income inequality within a country. To support this finding, they used two different measurement tools. The first index, applied to Western countries, was a ratio of the 20 percent top incomes in relation to the 20 percent of the bottom earners. For different states within the USA they used a second index, the Gini-index, which adopts a different methodology. Where ‘Gini = 0′ represents perfect equality (same income for everyone) and ‘Gini = 1′ is total inequality (if all income goes to one person). The outcome of these results showed that the widening income gap led to an increase of different health issues related to mental disorders, life expectancy, infant mortality, obesity and teenage births. Societal problems that correlated to income inequality included: lower levels of trust, less educational performance, more homicides, higher imprisonment rates and a lack of social mobility. Some authors found Wilkinson and Pickett’s dismissal of poverty in relation to health outcomes incorrect as they did not measure it. On the other hand, research by Beckfield and Bambra confirmed the correlation between life expectancy and health stating that the lagging welfare state in the USA led to an average loss of 3.77 quality life years in comparison to other OECD countries. The USA has an income gap of 8:1 (the average biggest earners have 8 times the wage of those at the other end of the spectrum) leading to a life expectancy of 78.7 years, which is in contrast with Japan reaching an average of 83.0 years with an income gap of 4:1. The same age dependent relation has been found in Scandinavian countries having similar income gaps as Japan.

Goda and Torres Garcia looked at the rise of global inequality and confirmed previous results by stating that within-country inequality is responsible for 70 percent of the global inequality, suggesting 30% is due to in-between country inequality.

Taking national and local figures into account for the UK, the Office for National Statistics observed a life expectancy for new-born baby boys to be 83.3 years in the Kensington and Chelsea area. Meanwhile, the life expectancy for the same cohort in Blackpool is merely 74.7 years. Nationwide, the female life expectancy is 86.6 years in Purbeck and the lowest in Glasgow City with an expectancy of 78.5 years. The authors conclude that inequality has increased over the last two decades despite improvements in these local areas.

Medical technology has improved greatly over the past two decades, with many illnesses that were fatal twenty years ago proving simple to treat now. Simple technological breakthroughs such as RFID labeling and instant messaging have meant that medical practices can be streamlined, saving time and money which can then be invested back into treating patients. With all these improvements in technology, why is there still little improvement in life expectancy in some areas? The answer lies again with income inequality, with areas that suffer from low income also suffering from lower government funding. This directly impacts the access local hospitals have to new technology, meaning they have fewer new technologies to utilise for their patients.

We may assume a strong relation between income inequality and health outcomes on a global scale as Dorling in recent research concludes there are overarching arguments. Dorling (2007) confirmed a strong relation between income inequality and negative health outcomes on a global scale after an observational study performed in 126 countries.

The academic world has provided alternatives to deal with the widening gap between poor and rich. Reformed minimum wages, living wages, basic income or a global ‘fair tax’ and redistribution are only a few austerity counter-proposals to ensure overall well-being by reaching or transcending the poverty line. Minimum wages have proven insufficient and a basic income is still globally debated. An international fair tax may even prove more challenging as this requires global political support.

Minimum wages and living wages have the same aim; raising income for the least fortunate to reduce the impact of a growing income gap. A minimum wage is defined as a minimum market valued income, imposed by law and paid by employers. A living wage is a locally liaised and negotiated pay rate that a fulltime employee needs for a household of four to reach the poverty line. For the latter, societal context is important, as living in a metropolitan area is more expensive than living in the countryside. The Basic Income Earth Network defines basic income as “a periodic cash payment unconditionally delivered to all on an individual basis, without means, test or work requirement”.

A locally implemented living wage project in the UK, facilitated by the General and Municipal Boilermakers Union in 400 councils, has proven to be successful in reducing (health) inequalities as well as being beneficial for government tax income. Awareness within the community influenced policy in a way that living wages became accepted as a benchmark for society. In this regard, a living wage clearly will contribute to individual well-being and social cohesion – both factors improve health within communities.

Proposals for a Universal Basic Income (UBI) are slowly reaching the minds of global policymakers, but this process will take more time in achieving broader support. In developing a short-term response tackling inequality, a living wage appears to be a possible solution for developed countries yet remains a huge challenge for developing countries.

Emerging new technologies will demand economical strategies that are able to cope with less job certainty and keeping up with growing demands in healthcare.

A redistribution of capital, as proposed by Thomas Piketty in his book ‘Capital in the Twenty-First Century’, in combination with a UBI may prove to be the best strategy in the long-run to counter income-related health inequalities on a global scale. We must urge politicians to finally face transnational companies and the top one percent in order to obtain a globally acceptable taxation rate.

About the author:

Sam Brokken hails from Belgium and lives near the city of Leuven. He studied physiotherapy, sports physical therapy and manual therapy practicing these areas for years in private practices within local communities. He lectures in musculoskeletal disorders in relation to manual handling and ergonomics for healthcare service providers.
He is currently engaged in postgraduate work at the Robert Gordon University (Aberdeen – Scotland) within the MSc Public Health and Health Promotion course.

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Universal Basic Income Examined by Futurism Blog

Universal Basic Income Examined by Futurism Blog

The Futurism blog, which describes itself as reporting on “the breakthrough technologies and scientific discoveries that will shape humanity’s future”, has published a post on basic income as a response to increasing automation of the workplace.

Although universal basic income (UBI) is neither a technology nor a scientific discovery, Futurism’s FAQ page lists UBI as one of the topics that it is “particularly interested in.”

The article sets out the nature of basic income, explores arguments for and against it, lists a number of recent and upcoming experiments, and provides quotes from a number of supporters of UBI throughout history. It is written by Luke Kingma, Futurism’s Head of Creative and a former copywriter for companies such as Hasbro, Toyota and Warner Brothers.

Futurism has appeared in a list of top futurist blogs on Quora, a popular question-and-answer site. It states that it has approximately 200,000 subscribers to its regular newsletter.

 

More information at:

Luke Kingma, “Universal Basic Income: The Answer to Automation?,” Futurism, 22th April 2016