by BIEN | Aug 22, 2017 | News
Futurism reported on automation, robots, and universal basic income through the provision of a chart-article. Some of the information summarized by the chart includes that fact that as there are 4.73 robots working per 100 human workers in South Korea. The global average is 0.66 per 100 workers. That ratio is reported to be rising rapidly throughout the world. Also, with more robots, they become cheaper to implement. Workers in the developing world are most at risk of losing jobs due to automation.
The problem is not limited manufacturing, however. It includes diverse areas such as farm labor, construction labor, truck drivers, mailer carriers, and so on. The chart mentions that $2,600 per month as a UBI solution is being considered in Switzerland, which BIEN has reported on, and only $1,000 per year in Kenya.(same paragraph as above) The chart also describes the cases of Alaska, Namibia, and Harper Lee.
It ends with quotes from supporters of a UBI, including Martin Luther King, Jr., Bertrand Russell, Harris Levine, Jeremy Howard, F.A. Hayek, and Thomas Paine.
More information at:
Futurism, “Universal Basic Income: The Answer to Automation?“, Futurism, June 2017
by Guest Contributor | Aug 21, 2017 | Opinion
Why do so many leading economists pronounce themselves in favor of a Basic Income? Because of its positive economic effects on the distribution side, for example. Basic Income stabilizes the overall domestic consumption and provides a kind of regulation for the ratio between expenditures and savings. Furthermore, the Basic Income helps up to a certain degree to equalize the “unnecessary” distortions arising from the free play of market forces within the context of automation, digitalization, delocalization and further developments in society. And finally, Basic Income constitutes a lean and just system to provide every single individual with the minimal share of the wealth of nations that he/she is entitled to.
The economist and former head of the Hamburg World Economic Institute Thomas Straubhaar does not put the emphasis on the macroeconomic aspects. In 2006, he was one of the originators of the liberal Basic Income proposal “Solidary Citizens’ income” promoted by Dieter Althaus, member of the center-right party CDU and Thuringia’s prime minister at the time. Straubhaar’s new publication “Radikal gerecht” (radically just) shows some interesting development, while maintaining the core of the arguments in favor of a Basic Income from a liberal perspective.
The principles remain the same: Basic Income is paid unconditionally, to each individual, in addition to existing income and an amount that allows for a dignified living of each person. According to Straubhaar, Basic Income is a liberal concept because it promotes free choice of the individual (including the poor) and abolishes social bureaucracy. And it is a just cause because people with a high income pay more net taxes than those with a low income. While the citizen’s income of 2006 was calculated at €600 per adult per month (Bürgergeld), Straubhaar now speaks of €1,000 per person. He does not insist on this sum, saying that a) the basic needs of the individuals have to be re-evaluated periodically by the responsible office, for instance the federal statistical office, and b) in addition the amount is and will be a function of the political debate. A higher Basic Income requires higher taxes, which is the expression of the political will respectively of the political majorities. “It is obvious that the amount of the Basic Income and the tax rate are the levers of the policy makers and of the population to steer this new social system”, he writes on page 17.
Straubhaar presents the Basic Income as a kind of radical reform of the tax system. He calls it a negative income tax, however. A core element of this tax reform would be a flat rate tax on all kinds of income, not only wages, but also capital revenues and revenues from automats and robots. Here, Straubhaar reacts in a raw form to the fact that in the future, products from fully automated factories are going to have a price as well. Hence these have to be taxed like any other income. This is a major difference to most other models (and specifically the solidary citizen’s income of 2006) which deal mostly or exclusively with revenue taxes, and it is very welcome to see such an adaptation from the liberal side and in a systemic (even if at this moment still rather crude) form.
Concerning the financing, Straubhaar argues that the €960 billion cost of a Basic Income of €1,000 per person per month (80 million x €12’000) is somewhat higher than the actual expenses for the social state in Germany of €880 billion. The actual gross value-added amounts to €2.73 trillion (2015), which means that a flat rate of tax of 40% on this (at the moment it is transformed into income) would provide €1.1 trillion. The rest of the state’s expense would be covered by indirect taxes. At the same time, the contributions for the classical social insurance that actually are deducted from the gross salaries would largely be abolished.
Straubhaar admits this calculation to be very rough and not able to reflect all the possible and dynamic effects of the introduction of a Basic Income scheme, and insists on the flexible elements such an introduction will imply (estimation of cost of living, political process etc.). As with other authors, financing is not the core of this motivation. He sees the Basic Income as the best and most viable solution to adapt the classical system of social insurance of the 19th century to the 21th century. It creates a sort of a “blind” social policy, contrary to the targeted schemes whose advantage all too often is only to maintain a class of social bureaucrats who decide on sums and subjects. Furthermore, it is a core contribution to big issues of our times, namely an ageing population, digitalization/automation, individualization, and so on. Economically, it is not only viable, but it makes sense within the context of globalization and full automation. And he insists on paid labor continuing to be the main source of income but in new, more flexible and open forms, as activities and careers keep changing, as we witness already today. In this context, the existing organizations like trade unions or entrepreneurs’ federations will maintain their significance. The work motivation, which some economists see threatened by a Basic Income, will not decrease, but on the contrary increase thanks to the increased degree of freedom.
Straubhaar’s book is an important step for the liberal promotors of the Basic Income scheme in Germany. He aligns in practice with the other wings (Netzwerk Grundeinkommen, Goetz Werner) by speaking now of a sum of €1,000 per person per month (without being categoric about it). He urges it as a core element for the rebuilding of the social state, an adaptation to the 21th century and a blind social policy with arguments that are widely acknowledged by intelligent people. However, it is not certain that his fellow liberal economist colleagues in Germany are willing to follow his arguments. Many of them are still anchored in the concept of a 19th century social state. On the promotor’s side, some might be tempted to criticize Straubhaar’s concept of a negative income tax. Furthermore, several questions about the additional tasks of the social state remain.
There is one point that cannot be conceived in the way Straubhaar does. On page 98, he writes that every German citizen is part of the Basic Income scheme from birth until death, and those living abroad would have a right to their full claim, independent of their new country of residence. This is a flashback to the 19th century concepts of citizenship and nationality. Today, we speak of resident population and debate the introduction of a Basic Income in the whole world. Thus, if a German citizen would live in France, he would get the French Basic Income without the German Basic Income. But this is a tiny remark and does not impair the substantial progress of “Radikal gerecht”.
Finally, although Straubhaar labels Basic Income as radically just, he does not close the loop from a moral perspective to a legal standpoint, by omitting the step from basic income to basic right. As Thomas Paine wrote in 1796, the whole earth was originally in the possession of the whole human race. Now, on the base of an immensely increased wealth of nations and individuals, Basic Income represents the entitlement of every individual to a minimal (or basic) share of this wealth.
More information at:
(in German)
Thomas Straubhaar, Radikal gerecht [Radically just], Edition Körber-Stiftung, 2017
Written by: Albert Jörimann
Albert Jörimann, was president of BIEN-Switzerland from 2008 until 2013. His main research subject is financing questions of basic income.
Works cited:
Das Solidarische Bürgergeld. Analyse einer Reformidee.» Konrad Adenauer Stiftung, Edited by Michael Burchard, Lucius & Lucius, Stuttgart 2007.
by Kate McFarland | Aug 20, 2017 | News
Café Grundeinkommen, a tiny coffee shop in Berlin, Germany, doubles as a center for meetings and discussion of basic income. The café is now preparing to release a prototype of Circles, a cryptocurrency designed by one of its founders as a means to implement basic income.
Cafe Grundeinkommen
Members of Berlin Basic Income first discussed plans for a basic income café in June 2016, inspired by Swiss People’s Initiative. The hub of the Swiss campaign–which culminated that month in a highly publicized vote on a national referendum on basic income–was a café in Basel, unternehmen mitte, cofounded and managed by basic income advocate Daniel Häni.
A year later, in June 2017, Café Grundeinkommen opened as part of the Tinyhouse university project, an art exhibition at the Bauhaus Archive Museum in Berlin.
The café contains a small library for its guests–consisting of one shelf and a coffee table stocked with books on basic income, alternative economics, and cryptocurrency–and provides meeting place for small groups (including the weekly meetings of a local branch of Bündnis Grundeinkommen, a basic income political party competing in Germany’s federal elections in September). Due to its diminutive size, Café Grundeinkommen cannot house meetings of more than ten people. However, its team holds larger events at nearby buildings–such as a recent public presentation on Basic Income on the Blockchain held at the Bauhaus Pavilion.
Vegan baked goods
Currently open five afternoons per week, Café Grundeinkommen serves direct-trade coffee from the Berlin-based roastery Populus, meeting its commitment to using only “local, ethical, and sustainable” coffee.
Understandably, going to a restaurant/café for a cup of coffee may not be the best option for some people. Just as soon as they hear “you can buy coffee in wholesale” those people may become transfixed, and a spark might appear on their faces. Several companies, including Iron & Fire, deliver high-quality roasted coffee beans and even ground coffee beans right to your door. If interested, you can learn more about their services by visiting their website.
Anyway, in addition to coffee, the café offers one or two kinds of baked goods each day, usually vegan muffins or cookies.
Soon, guests of Café Grundeinkommen will be able to purchase coffee and snacks using a prototype version of Circles–a cryptocurrency designed by one café’s founders, Martin Köppelmann, as a possible mechanism for implementing universal basic income.
Discussing Circles
In the proposed monetary system, first put forth by Köppelmann at Berlin Basic Income’s inaugural meeting in December 2015, all individuals have their own currencies, in which their basic income grants would be paid. To engage in market exchanges, they must create “trust connections” with others with whom they are willing to trade currency. Exchanges can occur between–and only between–individuals who trust one another’s currencies. This type of trade exchange is interesting, especially for those who are interested in learning more about stock and currency trades and investments. Most may find a forex trading course interesting to take if they wish to further their experience within the investment market.
Köppelmann believes that such a digital currency provides the best medium for the distribution of a universal basic income. In his explainer “Introducing Circles,” he writes, “A world wide basic income is something so powerful that no single entity in the world should have control over it in order to preclude manipulation. Particularly, there should be no central authority that decides which person can get a basic income and which person cannot.”
Holy Foods House and Cafe Grundeinkommen
Café Grundeinkommen is currently nearing the launch of an app to put Circles to its first “real world” test. Users of the app will receive monthly credits (their “basic income”), which they will be able to use to “buy” products at the café, in addition to food from HolyFoods House (a food-sharing house neighboring the café), usage hours at the co-working space The New Work Studio, and tickets to events at the Bauhaus Campus.
Café Grundeinkommen’s Ronit Kory told Basic Income News, “We want to see how people will use it on their own, encouraging them to use the app to offer their own goods and services, including ones that might not be considered conventionally valuable in a capitalist system.”
It should be noted that the release of the prototype version of Circles is not a trial of basic income, merely a trial of a type of currency that Köppelmann proposes as a means by which a UBI might be distributed.
In addition to launching the Circles app, Café Grundeinkommen is planning monthly meetings featuring various speakers on subjects related to basic income, which it will announce on its Facebook and MeetUp pages.
Reviewed by Russell Ingram.
Photos used by permission from Cafe Grundeinkommen – Berlin’s Basic Income Cafe. Cover photo: Ronit Kory stands outside Café Grundeinkommen during its construction.
by Kate McFarland | Aug 17, 2017 | News
Slovenian basic income advocate Dr. Valerija Korošec has announced her bid to run in her country’s presidential election on October 22, 2017.
Basic income is the main pillar of her independent candidacy, which also includes e-direct democracy and gender parity.
Korošec made the announcement at a July meeting of Unconditional Basic Income Europe (UBIE), BIEN’s European affiliate. To officially run in the election, she needs to collect 5,000 signatures before the 26th of September.
Valerija Korosec
Korošec, a sociologist and social policy analyst at Slovenia’s Institute of Macroeconomic Analysis and Development, is the author of “Predlog UTD v Sloveniji: Zakaj in kako” (“UBI Proposal in Slovenia: Why and How”), which she presented in English at BIEN’s 2012 Congress in Munich, and the co-editor of the book UTD v Sloveniji (UBI in Slovenia).
She is also Slovenia’s representative in BIEN, and a member of both UBIE and BIEN’s Slovenian affiliate, Sekcija za promocijo UTD.
Basic income has enjoyed a surge of interest in Slovenia in recent years.
In 2013, Slovenia was the second EU nation to attain the required level of support the European Citizen’s Initiative (ECI) for Unconditional Basic Income. Ultimately, the ECI failed to obtain the number of signatures required across Europe for the EU to consider UBI. However, it helped to cultivate lasting awareness of UBI among Slovenians.
In 2016, UBI received a further boost in interest in the country due to international headline events such as Switzerland’s vote on a referendum to establish a nationwide basic income, and the Finnish government’s launch of an experiment to test the effects of an unconditional basic income for the unemployed.
One particularly notable event occurred on October 17, 2016–the International Day for the Eradication of Poverty–when Sekcija za promocijo UTD joined the Slovenian Red Cross and Slovenian Philanthropy, an organization encompassing many charities, in signing the Coalition Against Poverty, accepting the idea that only a basic income can fight poverty efficiently.
In June 2017, Alenka Bratušek, a former Prime Minister now serving as a Member of Parliament, convened a meeting on basic income in Slovenia’s National Assembly.
The occasion marked the second time debate about the idea has been held in a national representative body in Slovenia, with the first having been held in the National Council in 2011. At the National Assembly meeting, three basic income advocates–including Korošec, Dr. Igor Pribac, and Sebastjan Pikl–presented arguments in favor of the implementation of the policy.
Those present voted unanimously to request the government to produce a feasibility analysis of basic income by the end of the year.
At this time, new candidates are still declaring their bids for the Slovenian presidential race.
Polls show incumbent president Borut Pahor as a clear frontrunner, unbeatable by any major political party. In Korošec’s view, joining the election as a basic income candidate has the potential not only to spread the idea to more Slovenians but also to show politicians that the idea can have a substantial impact on the election–which might affect not only this year’s presidential election but also next year’s parliamentary race.
Draft of article reviewed by Valerija Korošec; additional copyediting by Russell Ingram.
Top photo: Ljubljana, Slovenia CC BY-NC 2.0 Gilad Rom
by Kate McFarland | Jul 20, 2017 | News
Earlier in July, Bündnis Grundeinkommen (BGE) was officially recognized as a national political party in Germany. The party is campaigning on a single issue: the introduction of an unconditional basic income for Germany.
BGE is now preparing for its official campaign launch event on July 29 in Berlin. The event, called BGE: Open Air, will feature a combination of talks and artistic performances.
DUNDU, CC BY 2.0 Kris Duda
Performers include the high-wire artists of One Inch Dreams (the team behind Alexander Schulz’s recent highly publicized high-wire walk to the summit of Scotland’s Old Man of Hoy)–symbolizing balance in society and freedom with a sense of security–as well as the “gentle giant” puppets of DUNDU. The event will close with a concert from a brass jazz combo.
Guest speakers include Enno Schmidt (co-founder of Switzerland’s basic income referendum campaign), Sascha Liebermann (Professor of Sociology at the Alanus University and co-founder of Freedom Instead of Full Employment), Michael Bohmeyer (founder of Mein Grundeinkommen), Ralph Boes, and Bernhard Neumärker (Professor of Economic Policy at University of Freiburg). BGE chair Susanne Wiest and vice chair Cosima Kern will also speak at the event.
BGE: Open Air will kick off BGE’s campaign for Germany’s federal elections, held on September 24.
More information, including a detailed schedule, is available on the website of Bündnis Grundeinkommen and BGE’s Facebook event page.
Edit (July 22): This article originally stated that Helwig Fenner would represent Mein Grundeinkommen at BGE: Open Air. Since this time, Michael Bohmeyer, the organization’s founder, has agreed to speak. Founded in 2014, Mein Grundeinkommen crowdfunds money to distribute in the form of year-long “basic incomes” to individuals chosen by raffle. To date, it has awarded 99 basic incomes.
