by Tyler Prochazka | Apr 17, 2023 | News
TAIPEI, Taiwan – On March 11 and 12, UBI Taiwan hosted a national bilingual high school debate tournament at National Chengchi University (NCCU). Over 100 students from local and international schools across Taiwan participated in the event, which featured both English and Chinese debate sections.
The debate focused on whether Taiwan should enact an Unconditional Basic Income (UBI) system. Students presented cases discussing the feasibility, necessity, and efficiency of UBI. Inflation was a common concern on the con side, while expanding opportunities for Taiwanese citizens, such as starting businesses, was a popular argument on the pro side.
The Chinese final round saw the pro side win, arguing that the con side could not specifically identify why Taiwan did not have enough money to support both UBI and other essential programs. In the English final round, the con side emerged victorious, based on the idea that inflation and feasibility could present problems for implementing UBI in Taiwan.
Many students expressed their gratitude for the platform to speak on issues that mattered to them. For some, it was their first time studying UBI, and they found the experience to be a valuable learning opportunity to explore the future of Taiwan’s social services.
UBI Taiwan founder Tyler Prochazka addressed the audience at the end of the event, discussing the fear of automation with the rise of ChatGPT. He also highlighted the pressing issues in Taiwan that merit discussing UBI, such as helping parents raise their children, especially single parents. Prochazka argued that a program providing an unconditional basic income to parents with children could feasibly be implemented now, citing numerous studies showing the benefits outweigh the costs.
“I believe that by coming together to have these discussions, we can better understand the potential of a UBI and how it can benefit Taiwan’s society and our economy,” Prochazka said.
Allen Chen, co-founder of Lead for Taiwan, emphasized the importance of debate in addressing issues affecting Taiwan’s future. He encouraged students to take their academic experience and make a change in the real world.
The event was a milestone in promoting bilingual debate competitions in Taiwan, with participants from schools such as Kaohsiung and Taipei American School, Hsin Chuang High School, Wego High School, and Chien Kuo High School. This was the first competition of its kind in Taiwan, bringing English and Chinese divisions together in a tournament that was free for students to participate in.
The judges of the competition had diverse international backgrounds, including renowned lawyers, United Nations consultants, and top global business consultants, providing valuable real-world feedback to the participants.
NCCU’s International College of Innovation provided support and the venue, while Ascent Academy sponsored the event financially to expand debate opportunities across Taiwan. Taiwan’s Chinese Debate Promotion Association (CDPA), which is well-known in Taiwan for its national debate tournaments, administered the competition.
UBI Taiwan’s chairman Jiakuan Su said he hopes to continue hosting national bilingual debate competitions in the future, providing students throughout Taiwan with the opportunity to engage in debate activities and gain a deeper understanding of social issues.
“What I saw in this competition was not just about discussing common issues of basic income, but more about the students’ imagination of the future of our social welfare system,” Su said. “As an audience member, I was deeply moved by their speeches and I hope this experience can be an important component of their development into engaged citizens.”
by Guest Contributor | Mar 30, 2023 | Opinion
This month Silicon Valley Bank defaulted causing the biggest bank failure since Lehman Brothers in 2008. The US government helped in finding a solution to stop the depositors from losing their money. The main reason for the bank’s failure was a bank run because of the bank’s inability to raise enough capital after miscalculating its investment strategy and not preparing enough for the US Federal Reserve’s interest rate hikes. Credit Suisse also faced a lot of trouble which caused the Swiss government to pressure UBS (Switzerland’s biggest bank) to acquire Credit Suisse. Those two incidents might seem irrelevant to a UBI, but such events show us the importance of UBI now.
The current economic and political scene is unstable. There are a lot of tensions between the main actors USA and China on the global stage as well as the conflict in Ukraine in combination with the aftermath of the Covid crisis which hurt the global economy and supply chains. Especially Russia’s attack and Ukraine and the resulting trade war with Europe caused a supply shock in the Energy sector which led to global inflation hence rising poverty and forcing the Fed to raise interest rates. Those hikes in interest rates, slowing economic growth, and an underperforming tech sector are causing a lot of economic instability and caused recent bank failures. But the question is how that is connected to UBI.
To understand why recent events, show the importance of a Universal Basic Income it is important to think about the potential worst-case scenario. The scenario that happened to SVB and Credit Suisse might repeat. Bank depositors might fear the repetition of such a bank failure in different banks and cause more bank runs as the whole banking sector is based on trust and there is no single bank that would survive a bank run without government support. There is also doubt in the current political climate how much possible bank bailouts are politically doable especially as most people will feel that the government supports the banking gamblers with their tax money while leaving the normal average people who didn’t do anything wrong alone when they struggle because of different reasons.
So, the first connection between UBI and the current banking problems is that the implementation of UBI would increase the population’s trust in the government as people will now feel seen and protected by society and will be less negative towards a potential bank bailout. Although possible bank bailouts would have to come with increased regulation to avoid giving the banks the feeling that they can do whatever they want, and the government will protect them while they screw the people’s money.
Another reason why the current economic situation makes UBI more necessary than before is that in a climate of increasing interest rates and declining trust in banks people will draw money from the economy, hence decreasing demand. Decreasing demand will lead to decreasing supply and will increase unemployment. A lot of economists like Larry Summers confess that and say it is a bitter pill to take to reduce inflation. Let’s assume that’s correct although I’m not sure that this is the best way out of the current situation that would mean that society is sacrificing jobs and hence the wealth of a lot of people to reduce inflation for the rest.
Such action is morally wrong, especially if people aren’t given a social net that protects them after losing their jobs to provide for themselves and their families. And we have to remember that the sole reason for them being unemployed will be that the FED and other Central Banks in other countries decided that higher unemployment is necessary to reduce inflation. This would make those people and their families suffer a lot financially and mentally and they might not find a way back to bring back structure in their life without support that relieves them of the stress of having just lost their livelihood. UBI would be the perfect measure to achieve that
The third argument which highlights the importance of UBI now has to do with the real economy and supply and demand. While a huge part of inflation is caused by the supply shocks from the Ukraine war it can’t be denied that it is also caused partly by a demand that might be higher than the current supply especially as supply chains haven’t recovered completely yet. And while many people might assume that this would be an argument against UBI as UBI would most probably increase demand we have to look at it from the other side too. Giving people a Universal Basic Income would mean giving people more flexibility and more control over their lives. People will choose the jobs they want to do instead of just taking any job. This dynamic might be crucial in overcoming the current crisis. It is expected that UBI will have a positive impact on entrepreneurship and small investments and such effects have been seen partly in previous pilot programs. Giving people a UBI would hence increase supply as smart entrepreneurs will see the gap between supply demand and work on filling that gap to make profits. This will mean a virtuous way out of inflation instead of a vicious way out of inflation. It would be also a way of directly supporting the victims instead of rewarding the gamblers
While a bank crisis is still avoidable, the current situation shows the importance of UBI on multiple fronts to help people in those difficult times. The government has tried to rescue the economy through trickle-down measures often and now it’s time to give people the chance to rescue the economy themselves by giving them a fair chance and promoting entrepreneurship by introducing a UBI and following a spirit of capitalism that left and right will be able to agree on.
Written by: Ahmed Elbas
by Tyler Prochazka | Jan 17, 2023 | Featured
Taiwan is making history by sending out a one-time universal cash payment of $6,000 New Taiwan dollars (NTD) to every citizen “young and old.” This is the first time the country has implemented such a policy, and it comes as a result of excess tax revenue of $450 billion NTD, much of which is coming from corporate taxes that have seen record-high profits. $140 billion NTD will be dedicated to the cash payments, with the remainder going towards improving labor and health insurance systems and providing funding for local governments.
UBI Taiwan hailed the move as a victory for Taiwanese citizens, as the payment is unconditional and universal, meaning that everyone in the country will receive it, regardless of income or other circumstances. They said it reflects the growing demand that a greater proportion of Taiwan’s growth is shared with average families.
“This is a huge victory for the basic income movement,” UBI Taiwan founder Tyler Prochazka said.
UBI Taiwan promotes unconditional basic income (UBI) in Taiwan. UBI is a policy that periodically sends out unconditional cash payments to every citizen in a country regardless of an individual’s income or job status.
The organization has noted the problem of stagnant wages for the last two decades in the country and the rising cost of housing. Through basic income payments, they argue that many Taiwanese could pursue better opportunities and improve their education.
“Unconditional cash transfers are an efficient way to provide an ‘economic vaccination’ to make sure that everyone can face the future in a healthy and happy manner,” said Jiakuan Su, the new chairman of UBI Taiwan.
Over the last few years, Taiwan’s economy has experienced record-breaking 6.45% GDP growth in 2021 and over 8.73% growth in exports in 2022. However, most people have not enjoyed the fruits of this economic growth, as a 104 Job Bank survey found that real wage growth was nearly zero in 2022 due to inflation. The universal cash payment is a way for everyone to have a small share in Taiwan’s economic success.
“With the rise of the pandemic over the last few years, Taiwan has experienced rapid changes in its economy and society,” Su said. “We have experienced directly why Taiwan needs a resilient social welfare system to protect each person’s economic security.”
Since the payment is equal to all taxpayers, it will have a progressive effect with a greater proportion of the refund going to low-income earners. There is some expectation that the cash payment could help stimulate the economy because low-income households are more likely to use the money to satisfy their essentials, such as food and housing, freeing up some additional discretionary money for recreational uses as well. A greater willingness to spend by average families could help smaller businesses that may have struggled since the pandemic.
Both political parties have agreed on the general outline of the proposal and the cash could be sent out as soon as February. A surprise has been that the plan appears to be a universal rebate of the revenue instead of a targeted one, which will make it easier for everyone to apply and reduce administrative costs and time. One area still under consideration is whether foreign taxpayers will receive any of the money.
Previous cash assistance schemes during the pandemic were targeted and a stimulus voucher was sent universally. The pandemic vouchers were limited in how they could be spent and had an expiration date, similar to the vouchers under former President Ma Ying-Jeou.
Members of the Kuomintang (KMT) and Taiwan People’s Party (TPP) argued during the pandemic that cash should have been sent out instead of vouchers. At the time, the TPP held a news conference with UBI Taiwan to discuss the benefits of cash over vouchers. Many also complained that the targeted cash programs were difficult to receive because of the strict conditions.
Research by the World Bank later demonstrated that the simplicity of universal and unconditional cash payments during the pandemic increased access to the assistance and likely provided economic stimulus. Previous research showed a multiplier effect up to $2.6 for every dollar sent. Fears of saving the cash were largely overblown. For example, in over a dozen economies primarily in East Asia, 40 percent of the universal cash transfers during the pandemic were directly used for consumption.
Besides improved standard of living, research on basic income consistently shows improved mental health and trust in society. A meta-analysis of basic income policies looked at eight governmental reports as well as seven peer reviewed studies. They found there was justification that the alleviation of stress from financial instability could be a reason for improved mental health from basic income.
There have been criticisms of the current cash payment plan, including concerns about inflation. However, it is important to remember that this is surplus tax revenue that has already been collected and is not new money created by the central bank. An effect on inflation is just as likely if the government directly spends the money or if it is sent back to taxpayers.
Additionally, while it is true that Taiwan’s insurance systems require further reforms for sustainability, the vast majority of the surplus revenue is being used to shore up these systems and provide an emergency fund. A one time injection of funds is helpful but will not save these systems in the long run.
Previously, basic income advocates from UBI Taiwan have suggested that Taiwan could establish a sovereign wealth fund (SWF). Such a fund would act as a guarantee that Taiwanese could enjoy more equity in the growth of Taiwan’s economy even if wages remain stagnant. Excess revenue could be placed in the SWF and invested in the economy, with dividends from the SWF distributed back to the people each year, similar to the system in the US state of Alaska. The Alaska Permanent Fund sends out a yearly payment from the oil revenue generated in the state. In 2022, the universal payout reached a record high of $3,284 USD.
“I applaud the government’s decision to send the universal cash transfer and hope this establishes the precedent for Taiwan to consider making this a permanent policy,” Su said.
Prochazka furthered that by making this payment equal to all citizens, the government is taking the “first small step” towards ensuring that the benefits of economic growth are shared by all.
by Peter Knight | Jul 21, 2022 | Opinion
TIME Magazine has published an article by Stacey Rutland, the founder of Income Movement – an organization building broad grassroots coalitions in support of basic income in the United States. Rutland writes a personal story of how important an abortion was to her and her future husband. She writes, “At the time, I was working 30 hours a week, taking a full load of classes, and using Pell Grants and student loans to cover the gaps. The cost for an abortion was expensive, more than $500. Even with my partner helping cover costs, this was a significant shock to my ability to cover my regular monthly living expenses.”
Rutland goes on to say “…I know first-hand how crucial extra cash will be to women in need of abortion and the extra costs they’ll have to incur to receive one if they live in one of the majority of states poised to outlaw abortion. A guaranteed income is not an alternative to abortion access, but it will certainly help women overcome the tremendous barriers they’ll face with the end of legal abortion rights.” Read the full article here.
by Peter Knight | Mar 29, 2022 | Events, News
This virtual event on 22 March 2022, organized by Income Movement, provided an opportunity to hear from legislators, experts, and thought leaders on the current state of the basic income movement in the United States.
Guest speakers discussed national, state, and local-level efforts, giving a bird’s-eye view of the movement and laying the foundation for Income Movement’s work fighting for direct cash in 2022.
Guest speakers include:
- Representative Rashida Tlaib: U.S. Representative for Michigan’s 13th Congressional District
- Representative Brad Witt: State Representative for Oregon’s House District 31
- Jhumpa Bhattacharya: VP of Programs and Strategy, Insight Center
- Kevin Adler: Founder and CEO, Miracle Messages
- Harish Patel: Director, Economic Security for Illinois
You can view the recording of the event, moderated by Income Movement’s founder, Stacey Rutland, by clicking here.
You can also view the individual segments below:
