Dutch guaranteed income pilot shows reduced financial stress

Dutch guaranteed income pilot shows reduced financial stress

My name is Jonathan Berg. I have been working as a medical anthropologist doing research with people living in poverty and marginalization since 2012. I currently work at the Erasmus University. In the past few years I have been involved as a researcher with an experiment in the Netherlands which I think might be of interest to BIEN website visitors.

For a period of three years, a group of 14 people under forensic psychiatric care (meaning having a criminal history and a severe mental affliction), received an almost rule-free extra income to find out if taking away their financial stress (scarcity theory) would reduce the amount of public nuisance they caused and crimes committed. All they had to do to keep receiving the money was: 1) not be incarcerated, 2) have an address in the city where the experiment took place, and 3) talk to researchers every 6 months.

We did a longitudinal qualitative study using the case history method to carefully map all developments and thus were able to study and describe the lives of the participants and observe changes in their behavior. When we first met the participants, many of them were living in in cycles of: poverty, debts, violent or criminal behavior, psychiatric troubles, and drug use. With little to no perspective of any improvement, many lacked the ability to see a future for themselves and some saw only death as a way out of their misery.

Since these participants often had a history of substance abuse, there were worries that they would spend the income of alcohol and drugs. However, a negligible amount the money actually was thus spent. Instead, they spent it making their houses more livable, and on food, self care, medical costs, transportation, and social activities. For most of the participants the money meant a world of change and we noted an overall improvement in their mental wellbeing and a decrease in the risk of recidivism.

We saw three ways in which the steady extra income helped reduce violent or otherwise criminal behavior. Firstly, the extra money provided income security. This made them less dependent on undeclared work and crime to make ends meet. Secondly, they had less financial stress, so they could control their impulses better and were better able to cope with setbacks that would have otherwise triggered, for example, violent behavior. Thirdly, they cherished the improved quality of life due to the extra income, and did not want to risk loosing it. Therefore, they were more thoughtful about any behaviors that might come with the risk of incarceration, since that would (temporarily) stop the monthly payment.

Unsurprisingly, during the experiment the participants did not turn into model citizens and we observed many other influences inhibiting them from living in the ways that they wanted. But, as one of the participants said: “Money is not everything, but everything is money”. It seems that for people living in extremely marginalized situations, like forensic psychiatric clients, a guaranteed minimum income could help shape preconditions needed to escape their chains of poverty, psychological afflictions, stress, and criminal or aggressive behavior.

Our research report, including all the inspiring and sometimes confrontational stories of the participants, is currently only available in Dutch. We will work on publishing it in an international academic journal at a later stage, but that will take some time.

The initiative for this experiment was taken by Irene Veldhuis and Wouter Boekweit, who at the time both worked in forensic psychiatric care. The Research was done by Jonathan Berg and Dorien Mul.

Jonathan Berg
PhD candidate
Erasmus School of Health Policy & Management
Mobile: +31 634402726
Email: berg@eshpm.eur.nl

BIEN 2022 Congress: Day 1 Summary

BIEN 2022 Congress: Day 1 Summary

Today saw an electric start to BIEN2022, a coming-together of the world’s most dynamic thinkers, activists and ideas focused on the understanding and promotion of Basic Income. 

Following the success of 2021’s Congress help in Edinburgh, Scotland, the 2022 edition is being proudly co-hosted by BIEN Australia, The Centre for Policy Futures,  Faculty of Humanities and Social Sciences at The University of Queensland, the Australian Basic Income Lab, and Queensland University of Technology.

After years of labouring under pandemic conditions and quarantine regulations, this year’s event is taking place as a hybrid event, hosting both online and face-to-face discussions.

A landmark first day saw opening remarks from prominent Basic Income advocates including Andrew Yang and Scott Santens, before continuing with 14 action-packed sessions throughout the day.

Hot topic throughout the day included Paths to Basic Income, a discussion of implementing Basic Income, and Modelling Basic Income, a discussion of how to understand the likely impacts and benefits of applying the policy in the real world.

A lively roundtable discussion of the impact of Basic Income on the world of work followed, as did an examination of the more transformative impacts of Basic Income implementation. 

Other highlights included a special session focused on the tactics of building support for Basic Income, and an examination of what Basic Income can do to help address deeply-rooted inequalities.

The day also saw an excellent discussion on the role of Basic Income in empowering First Nations communities, improving gendered and care roles in society and discussions of what role a Basic Income can play in helping the Arts, and fighting the ecological crisis.

Finally, the day closed with a headline talk on building political paths to Universal Basic Income, and a keynote address from Guy Standing on building a conception of the ‘Blue Commons’.

BIEN2022 will return tomorrow with another busy schedule, and we will be uploading video coverage of many of these sessions as they become available.

by James Grant, BIEN Social Media Manager

Ukraine’s Basic Income: an antidote to war

Ukraine’s Basic Income: an antidote to war

The idea of Basic Income is catching on around the world as it is getting more and more support, especially after cash payments many countries paid during the Covid-19 pandemic and Russia’s so-called “special military operation” in Ukraine. 

A Basic Income is a periodic cash payment unconditionally delivered to all on an individual basis, without a means-test or work requirement. This is the first phrase you can see when you open BIEN’s website. So where should states get money for it? For example, from natural resources, as Alaska Permanent Fund does, and from taxes including a tax on robots, carbon tax, as well as a tax on cryptocurrencies, etc. The view that the state should supplement the income of the poor has a long history. For example, one way to increase the incomes of the poor proposed by Milton Friedman is a negative income tax. The idea is quite simple: richer people pay taxes and poorer ones get some percentage of this. 

Ukrainians receive financial aid in the amount of 6500 hryvnias (just over US$200) under the program “ePidtrymka” for loss of part of wages (income), work (economic activity), which are temporarily stopped because of military actions during the current military struggle in Ukraine. It’s just a one-time payment with several strict conditions, including a territorial one. The deadline for submitting applications was March 31, 2022. So, what should other people do after April 1? Why shouldn’t children, women, single parents, young people, the disabled, and the unemployed be taken care of? Every Ukrainian needs to be paid because of the economic collapse and losses of income.

But is $200 enough to help someone who lost a family, home, or job? Is $200 enough to help anyone start life over in Europe or in an almost destroyed country? If this person is gravely ill? What about mental health, which was destroyed, of children, women, and youth? Every Ukrainian needs to be paid at least 500 Euros every month at best for the war’s duration until normal life is fully restored. I believe these brave people deserve more! Ukrainian people should be rewarded with UBI forever. This will be the greatest social experiment in history as well as a clear example for other countries and peoples.

Not only thousands of Ukrainians but also thousands of Russians are dying because of the actions of the Russian authorities. Let’s remember the dramatic events in Bucha, Ukraine, and in other cities. The Ukrainian government suspects soldiers from Khabarovsk, Buryatia, the Far East, and others of committing crimes. These are depressed regions with low incomes and high unemployment, despite their vast territories and natural resources. Residents have little choice: either to serve in the army and security services or to migrate to richer regions of the country. So, these hungry soldiers saw that people in Bucha were living their normal comfortable life. Maybe that’s why they were so cruel? Of course, it’s hard for me to reflect on why they acted like animals. But I strongly believe that they wouldn’t invade another country if they were receiving a basic income.

The situation is similar in other Russian regions like Tuva, Ingushetia, Kabardino-Balkaria Republic, Altai, Jewish Autonomous Region. That doesn’t mean that in other regions the situation is better. Maybe just a little. Official statistics (according to the “new methodology”) indicate that there were more than 16 million people below the poverty line at the end of 2021 in Russia. According to the old methodology, there were more than 20 million people in need. Official Russian statistics are underestimated by two to three times, according to the experts. Anyway, what will happen to Russians after the war and devastating economic sanctions? Of course, I’m not making a comparison between “lost a job” and “lost a life”. However, in my opinion, very few people would participate in an unjust war if they had a basic income and a stable and prosperous life. Therefore, Russians also need a basic income. People would be critical of the propaganda if they have more opportunities.

Ukraine is a brave country that is fighting against Russia’s military intervention and is protecting the entire world from danger. Of course, the other countries support Ukraine. Ukrainians need to be paid basic income. I may repeat it forever. Basic Income has the potential to eliminate the need for war, and that’s why it is important to raise awareness of what Basic Income can do. Ukrainians need to live their calm normal life instead of hiding in their basements as they do right now. Millions of people were forced to flee Ukraine, many had to bury their children or parents in the yards. Nobody knows their feelings. I hope that nobody will ever do that again. 

The war has affected the entire global community. Does the world forget the Chernobyl accident in 1986? Doesn’t the world read or hear about Russian soldiers in the Chernobyl nuclear power plant? Quoting a CNN report, “Although Chernobyl is not an active power plant, the sarcophagus above the reactor that exploded nearly 36 years ago needs to be maintained to avoid further radiation leaks. There is also a considerable amount of spent nuclear fuel that needs to be looked after”.

These miserable soldiers were ordered to dig trenches in that area, which is particularly radioactive. This zone right now is under the control of Ukrainian soldiers, but Russian soldiers may come back. This may be a bigger ecological problem than CO2 emissions for the whole world. What about the threat of Russian use of tactical nuclear weapons? Why do people worry about CO2 while so many people keep dying right now: young, old, children, men, and women? What could happen to the world after nuclear weapons are used? 

Ukraine is a strong country. We are proud as well as terribly sorry about all the events that happen there. Crying and praying for it to end soon, to stop people’s unfair death. This is the whole world’s inexcusable mistake. We could have avoided so many deaths if a Basic Income had been introduced to the world. UBI will reduce humanity’s aggression and destroy the economic, political, and psychological causes of war.

Instability in the world is increasing. Food, gasoline, gas, and service prices are increasing all over the world, including in Africa and Asia. I know that heating prices are high right now in Europe. Soon it will be summer, but later fall and winter will come. The whole planet suffers from Russian military action in the center of Europe and is terrified at the thought of a world nuclear war. We should think about basic income today. No, that’s not right. We should have thought about it yesterday before these disasters. The 99% shouldn’t suffer from the decisions of the 1%. People need to be more independent from the government. 

Article by: Irina Soloveva, Jr.

Building Community Resiliency in Santa Fe, New Mexico

Building Community Resiliency in Santa Fe, New Mexico

The sun isn’t the only thing shining this year in Santa Fe, New Mexico as for the first time in history, single parents who are enrolled in Santa Fe Community College receive basic income support funded through the Mayor’s for Guaranteed Income (MGI). The City of Santa Fe’s MGI Project, Santa Fe LEAP, paves the way toward community resiliency through safety net funding as low-income parents strive to meet their living expenses and educational goals.  

According to the Institute for Women’s Policy Research, single mothers are more likely to live in poverty than other women at every educational rate. Single mothers in New Mexico who graduate with an associates degree are 35% less likely to live in poverty than a high school graduate.  Direct benefits not only improve the lives of graduates but also impact the safety net budget.  Single mothers who graduate with an associate degree save New Mexico $26,842 in public assistance spending over a lifetime.  These benefits increase as women receive higher educational degrees.  For example, single mothers in New Mexico who graduate with a bachelor’s degree are 59% less likely to live in poverty than high school graduates and save New Mexico $43,711 in public assistance spending over a lifetime.

In building momentum for the program, Santa Fe’s mayor Alan Webber, along with city councilors and staff members from Santa Fe Community College and its Foundation, launched the pilot program with funding through MGI. Eligible participants are between the ages of 18 and 30 and must be the primary care provider for a child under the age of 18.  In addition, the student must have been enrolled in at least one class prior to Fall 2021, into a certificate or degree program and make less than 200% of the federal poverty rate. 100 single parents were randomly selected to receive the $400 monthly cash assistance via credit card or direct deposit. Although this pilot program is intended to last one-year, future goals are in place to increase the $400 monthly limit to $500 per month, with the hopes to last for an additional year.  Gifts that go toward the Santa Fe MGI Project are 100% tax deductible and should be sent to the SFCC Foundation and directed to the MGI Project.

Education reporter Jessica Pollard interviewed nursing student Martina, who participates in the pilot program. Martina reported that her family does not qualify for government assistance, and they struggle to makes ends meet. Martina uses the monthly income toward her $500 car payment. Moreover, the City of Santa Fe’s Communication Director David Herndon stated that although data has yet been measured to provide information on the outcomes of the project, participants report not having to make choices between food or heating and have options that were not available before the project began. Herndon observed, “For instance, this buffer may allow participants to hire babysitters, so they are able to complete class work for college degrees.” Evaluation will be conducted by a team at the University of Pennsylvania, Center for Guaranteed Income Research as it is a part of MGI funding.

Santa Fe Mayor Alan Webber says: “We’re committed to helping our young working families have better lives. It’s wrong for a mom or dad to have to choose between getting an education and feeding their family. We’re giving these families the support they need to realize all the things an education can provide: more security, more stability and a lot less stress. This project makes Santa Fe a leader in a national movement for real progressive change.”

The Basic Income Pilot has been replicated in cities and towns across the country. Further movement in research and funding will help in reversing the cycle of poverty, building resiliency for those who struggle to make ends meet as they strive for brighter futures for their generations to come.

Miranda Queen and David Herndon, April 13, 2022

Poem: Turn on the tap

Poem: Turn on the tap

14.5 million living in poverty

in the world’s fifth largest economy

until a global pandemic forced our chancellor

to spend £69 billion on a word

none of us had ever heard of.

Furlough showed universal basic income to be

a fundable possibility, at £67 billion net cost

paid for through reduced corporate tax breaks

and subsidies. Just 3.4 percent of GDP 

to make absolute poverty extinct.

When the first unconditional money

hit mum’s bank account she cried

with eyes that could now see a future.

But trusting it took time. You’re not supposed to eat

normally just after a fast or you’ll be sick. 

So we let relief drip into our days. 

First in seconds, dancing round the kitchen

feeding shopping into starved cupboards

now bulging till their doors wouldn’t shut.

Then in minutes, a river that brought mum 

home two full days a week. She began 

helping me with my homework.

Grades went up. A well fed mind imagined

going to university, freed from the urgent need 

to leave school early and start earning.

Knocks on the door brought not fear

but friends. Neighbours came to chat,

share ideas, our street hadn’t felt this alive

in years! Revitalised by breathing in 

something other than stress and anxiety.

Minds to the right: tick

for smaller, simpler government; tick

for healthcare appointments reduced

8% by better physical and mental health; tick

for greater purchasing power from the ground up.

Minds to the left: tick

for greater community engagement; tick

for people secure enough to believe in a future; tick

for human ingenuity previously capped 

by the poverty trap freed to help create

a society no longer chained to poor

wages for sourcing, making, selling poor

quality goods that return to poor

countries forced to burn, bury, breathe poor 

quality air. Instead, the choice to say no

from a new sense of security, dignity, universality 

we can do better. 

Harula Ladd