Book announcement: Financing Basic Income

Book announcement: Financing Basic Income

This new book from Richard Pereira (and contributors Albert Jörimann (BIEN Switzerland) and Gary Flomenhoft (University of Vermont)) argues that basic income at a decent level is, in fact, affordable. The contributors approach the topic from the perspectives of three different countries — Canada, Switzerland, and Australia — to overcome objections that a universal program to keep all citizens above the poverty line would be too expensive to implement. They assess the complex array of revenue sources that can make universal basic income feasible, from the underestimated value of public program redundancies to new and so far unaccounted publicly owned assets.

The book proposes two basic incomes – one traditional and one based on economic rent, along the lines of the Freedom Dividend. The tradicional approach would eliminate many oppressive bureaucratic, expensive and ineffective programs and direct the money to a higher basic income, while preserving universal healthcare, public education funding and other vital public programs. It demonstrates that this can be achieved without raising income taxes, or taxes on labour income.
The authors believe this to be the most progressive proposal in the literature. The basic income proposed would eliminate poverty (it meets the official poverty line threshold) and, above all, would be feasible and affordable, while addressing economic externalities and economic rent in ways that other proposals have not.
Alex Gray: “This is our chance to completely redefine the meaning of work”

Alex Gray: “This is our chance to completely redefine the meaning of work”

By: Rebecca Warne

This article by Alex Gray summarizes a presentation given by historian Rutger Bregman at the annual meeting of the World Economic Forum in Switzerland, January 2019.

Bregman would like to see ‘work’ redefined as ‘activity which adds value to society.’  He sees the starting point for this as more general recognition that some jobs are socially useless (at best). Bregman quotes Jeff Hammerbacher, an early employee of Facebook who apparently said: “The best minds of my generation are thinking about how to make people click ads.  That sucks.”

Bregman’s interest in an UBI is twofold.  Firstly, it would enhance individual quality of life by removing the necessity to work for money.  Secondly, workers whose jobs are poorly paid but socially useful would be freer to draw attention to this fact by withholding their labour.

He rejects the further argument that an UBI will be necessary to offset the inevitable replacement of human beings by technology: “Automation throughout history has never meant mass unemployment.  We should never underestimate the power of capitalism to come up with more socially useless jobs.  Theoretically, it’s possible we will all just be pretending to work.”

Bregman doesn’t engage with economic arguments around the feasibility or impracticability of an UBI, so much as the ‘hearts and minds’ aspects: “The obstacle is not about economics or technology, it’s ideology.  We have to redefine so many of our basic concepts.”  According to Bregman, “We’re all basically nice, meaning-seeking creatures, and if you assume the best, that’s what you get out.  It’s the power of expectation…. The first time I wrote about basic income was five years ago, and back then no one was talking about it.  Now the idea is everywhere and there are experiments around the globe.  The first talks I gave were for small groups of anarchists and now I’ve been invited to the World Economic Forum.  It just shows how ideas change the world. Life-changing ideas never start in Washington, Westminster or Davos, they start at the fringes. In a basic income society, wages would better reflect societal value, and kids would live out their dreams.”

More information at:

Alex Gray, “This is our chance to completely redefine the meaning of work”, World Economic Forum,  January 9th 2019

Is basic income ‘not necessary’ for Russia?

Is basic income ‘not necessary’ for Russia?

“You should not discuss Basic income in Russia. You should not implement pilot projects in the country,” a representative of the Russian government preaches to Russian citizens. He is an adviser to the Analytical Center of the Russian government.

On November 14, 2018, a conference was held in Moscow: “Basic Income: is it a prologue to social policy of the 21st century?” In the best traditions of «Russia Today», the English version of the conference was framed as: “Basic Income as a prologue to social policy of the 21st century”. Thus, Russian society was initially forced to doubt the need for implementing basic income.

The organizers for the conference were: The Institute for Social Policy of the Federal State Institute, National Research University’s Higher School of Economics, the European Dialogue group,  and Russia’s Friedrich Ebert Foundation. This is one of the first international conferences on basic income in Russia. The Russian public was very interested in the experience of other countries.

A panel discussion was moderated by Peer Teschendorf, the Director of the German Friedrich Ebert Foundation in Russia. The speakers for the panel included:  Miska Simanainen, KELA (Finland) – “Experiment with basic income in Finland”; Giuliano Bonoli, University of Lausanne (Switzerland) – “The 2016 Swiss referendum on basic income”.

Presentations by Russian speakers gave new insight from the Russian point of view. These speeches included: “Basic income and goals of reforming social assistance systems”, “Transformation of compulsory pension insurance: the next paradigm is the unconditional basic income”.

In general, the conference ended like the old Soviet joke: “Whatever Russians do, it always turns into Kalashnikov`s AK-47“.

Participants brought many arguments in favor of basic income, but the organizers made the opposite conclusion: Basic income is not necessary for Russia. The organizers argued it is better to increase targeting of social support; in authoritarian regimes, since the president is always “good,” something like basic income is “not necessary”! This was the expected conclusion from a state-run university and “experts” dependent on the state budget.

“Experts have already moved far away from a primitive understanding of basic income as a guaranteed payment to all members of society regardless of the level of their income, employment, health status, and other factors,” Russian organizers said.

Solovyev Alexander SM “Basic Income Russia Tomorrow” spoke in favor of the need for the widest and most open discussion of basic income in Russia, as well as consideration for Russian pilot projects. Experimentation is essential to grasp the truth. The world’s support of basic income is constantly growing: US presidential candidate Andrew Yang, former US President Barack Obama, Facebook founder Mark Zuckerberg, Tesla founder Elon Musk and many other prominent figures from across the world have expressed interest and support in UBI.

Solovyev emphasized that BIEN and “Basic Income Russia Tomorrow” consider universalism and unconditionality as the main principles of basic income.

We would like to believe that Russian citizens, the scientific community and government officials will understand the importance of basic income for Russia. Basic income is really “a prologue to social policy of the 21st century”. Only the implementation of basic income will provide an opportunity to reduce social tension, eliminate social inequality, ensure equal rights for citizens, reduce poverty level and corruption in the country.

For Russia of this century, UBI is an essential policy.

Europe: Green European Journal Asked Experts, Activists, and Politicians About Basic Income

Europe: Green European Journal Asked Experts, Activists, and Politicians About Basic Income

Credit Picture: Green European Journal 2018

 

The Green European Journal launched the Green Observatory on Basic Income, asking to experts in a series of interviews about the status of universal basic income (UBI) in the political discourse of their country, and the stance that Green, and other progressive parties, show towards it.

The Green European Journal is an editorial indipendent publication of the Green European Fundation (GEF), which is funded by the European Parliament.

The Journal is “a platform to help debates and ideas to travel across Europe’s cultural and political borders, and of contributing to the construction of a vibrant European public space.”

Being UBI something which always interested green circles and movements, for its potential in enhancing individual freedoms and capacities, the Journal decided to investigate the current status of the debate across the political spectrum in Europe.

 

Interviews:

Belgium – Kim Evangelista

England & Wales – Natalie Bennett

Greece – Constantine Dimoulas

Germany – Wolfgang Strengmann-Kuhn

Finland – Ville Ylikahri

France – Lucile Schmid

Italy – Giuseppe Allegri

Poland – Adam Ostolski

Portugal – Jorge Pinto

Scotland – Jamie Cooke

Spain – Julen Bollain

Switzerland – Irina Studhalter

 

More information at:

“Green Observatory: Basic income”, Green European Journal, October 17th 2018.

Is Taiwan ready for a basic income referendum?

Is Taiwan ready for a basic income referendum?

Taiwan has seen its first series of referendums since the significant liberalization of its referendum law early this year. The results could have implications for the basic income movement in Taiwan and possibly the Asia Pacific.

There has been discussion among Taiwan’s basic income activists to organize Asia’s first basic income referendum on the island.

In January, the new referendum law came into effect in Taiwan, lowering the threshold for the number of signatures required to get a referendum on the ballot. The law also decreased the voting participation requirement from 50 percent to 25 percent.

Such a change made it realistic for a basic income referendum to make it to the ballot in Taiwan.

During the election last weekend, seven of the ten referendums were passed, the first such national referendums to pass in Taiwan’s history. Long lines waited for hours to vote, as many carefully studied the referendum language.

Most notably, opponents of gay marriage successfully passed three anti-LGBT referendums (two pro-LGBT referendums failed to pass), putting Taiwan’s legislature in a precarious position since its top court mandated that same-sex marriage must be legally recognized by May 2019.

How the referendum results will affect legislative action is unclear, since there is no precedent for legislating referendum results in Taiwan. Additionally, the referendum law does not create clear enforcement mechanisms to compel the legislature to act (except in the case of abolishing laws, which must take place within three days of the referendum result).

Regardless of how legally binding the results actually are, Taiwan’s legislature will feel pressure from the popular results to follow the principles of the referendums.

If Taiwan’s government fails to put the referendum results into law, it could have a chilling effect on future referendum movements and create questions about Taiwan’s democracy. There have already been signals from Taiwan’s presidential office that approved referendums regarding nuclear and coal will not lead to a change in energy strategy.

On the other hand, a robust response from the legislature will mobilize activists to utilize referendums as a key legislative strategy. It is likely that 2020 will see a wave of even more referendums than this year.

If some an income guarantee referendum were to pass, Taiwan’s government would only be compelled to submit a proposal and discuss the policy. There would have to be a significant societal mandate from the referendum to ensure the legislature will act to pass a law.

Polling from Academia Sinica and UBI Taiwan find 40 percent to 47 percent respectively of Taiwanese support basic income. As was seen with the competing gay rights referendums, using referendum as a vehicle to advance basic income can also mobilize opposition groups.

The LGBT referendums invited a wave of international attention. Certainly, a basic income referendum would attract regional and international attention as well.

However, a premature basic income referendum without institutional support and lacking a broad activist movement to defend the idea poses substantial risks. Basic income is still a new idea in Taiwan and Asia in general, and misunderstandings could derail the idea before it has an opportunity to develop in the region.

Anti-LGBT groups outspent the pro-LGBT movement and used misinformation and scare tactics to successfully persuade a large portion of Taiwan that LGBT marriage threatened the next generation of families. 

It is without question that a basic income referendum would invite backlash from invested groups, who would probably have more financial resources than the nascent basic income movement in Taiwan.

Would an overwhelming vote in opposition to basic income do more harm than good for the movement in Taiwan and the Asia Pacific?

Certainly, Switzerland’s referendum was incredibly successful in propeling discussion of the idea around the world, even though it failed at the ballot box. However, both civic society and basic income activism are far more mature in Europe than in Taiwan.

A rejected basic income referendum in Taiwan could be portrayed as yet another global failure for UBI, along with the cancelled experiment in Canada, the ending of the Finland pilot, and even the rejection of the original Swiss referendum.

If I had to wager, I would bet that the societal discussion over basic income generated from a Taiwanese referendum will be overall helpful to advancing the movement in the Asia Pacific even if it does fail. This is especially true since backlash from opposition groups is inevitable anyway.

It is essential, though, that the basic income movement in Taiwan and beyond carefully consider its strategy to make UBI a reality.