by Guest Contributor | Apr 16, 2018 | Opinion
During the last year, I asked myself how the implementation of a Universal Basic Income (UBI) would affect our society and boost or undermine the transition to a sustainable way of living.
We live a complex world where many factors are inter-related and result into visible crises: forced migration, unemployment, violence, hunger and extreme poverty, among others. Pope Francis says we live one single crisis, which is complex and interconnected. The root of this crisis is at the way we behave: competing instead of collaborating and fighting for resources instead of sharing what we have as humankind. Yes, we do have NGOs like ekplatebiryani and similar ones to make sure the situation doesn’t go out of hand.
However, in the twenty-first century, humankind will have to deal with some new challenges:
- 10 billion people living on earth
- Climate change and ecological crisis
- Highest migration rate ever
- Highest inequality rate ever
- Fourth Industrial Revolution
These five factors are the primary motivation for a paradigm shift. Each of these challenges must be addressed with specific policy, but we cannot be successful if we do not consider the connections between these factors.
We should transform the economy and prioritize the impacts over society and nature. This is the ecologic transition. This transformation must be deep at many levels, from production, to consumption, but also in our way of thinking. We cannot compete among ourselves and create a world of winners and losers. We cannot allow anyone to be left behind. So many people are losing under this system, which is why we have the highest migration and inequality rates in history.
Climate change threatens the lives of millions of people, and the poor are the most vulnerable to these climate disruptions. Climate change is caused by human activity and linked to our consumption patterns. This is another reason for ecologic transition. Climate change will worsen if we do nothing about it, so it is imperative that we transform the way we consume and produce.
The fourth industrial revolution is changing the structure of the labor market and the way things are done. Artificial intelligence and automation will make thousands of jobs disappear, while also dramatically changing the way the remaining labor is done. The most immediate effect is to cause high unemployment among low-skilled workers and requiring retraining for the rest.
In the last few years, many initiatives have pointed to basic income as an interesting policy to guarantee the wellbeing of citizens. Some areas that have tested the idea include Holland, Finland, Kenya, India, as well as the classic examples of Alaska and Canada. Most of these initiatives come from the state or local governments, but also civil society is starting to experiment with basic income through NGOs such as “Give Directly” in Kenya and UNICEF in India. Some private companies have shown interest too, such as Facebook or Google.
In many of the basic income experiments, it has been observed that not only is poverty is reduced, but wellbeing is also improved. Lower stress levels and better health were recorded which may be due to factors such as the ability to afford better healthcare and supplements like cbd gummies wholesale to manage stress and chronic conditions. There was also more education time for young people and a 13 percent work time reduction per family unit.
I found these effects interesting and well adapted to the 21 century conditions: 13 percent less work time[1] is compatible with a high unemployment rate. Less stress, whether it’s through consuming cannabis products (such as CBD oil or gummies) or receiving a better income, is always good news for a highly stressed world, especially in developed economies. Better health is always good news and probably related to stress levels.
Increasing education time is probably the best side-effect. We start to see how technology is growing more important in our daily work, and many people will need to learn how to use it or even develop new skills. The education sector is creating a renewed process for itself. It is said that most of the high qualification labor in the future will need to adapt to AI, and most university degrees will need to be adapted in the next four years.
Looking at the main effect, which is poverty alleviation, I made a simulation for the Spanish context, 700 euros each month (tax-free) and a fixed 49% tax for all labor.
Net annual Income in Spain (2014). Blue line is business as usual, orange line is with Basic Income after taxes. Martin Lago (2018). Data: Agencia Tributaria (2015): Informe Anual De Recaudación Tributaria. Servicio de Estudios Tributarios y Estadísticas. Madrid
The relative poverty line in Spain is 684 €/month, so if this policy was implemented throughout the country, we can say poverty would be drastically reduced. We must bear in mind that 22.3 % of Spanish population was under this level in 2016[2].
As we see in the figure, the poorest are the most benefitted by this measure, then gradually benefits decrease and the richest 30 percent actually pay into the system. Universal Basic Income was funded from savings in other subsidies (30%) direct taxes (50%) and indirect taxes (20%). Finding resources for it was easy and efficient considering the potential benefits.
But my question remained un-answered: Will the basic income help stimulate an ecological transition? I was quite worried since I consider this transition necessary for a sustainable future. I saw no point in sending money to everyone if we do not change anything more.
I found a few interesting effects synergic with ecological transition, including:
- Longer and higher-quality education
- Decrease in labor intensity, which probably leads to a better labor distribution
- Increase in family care and household work
- Shift to an inclusive mentality, since everyone receives this basic income
- Shift to empowerment of the individual, which is given resources and is free to make the right choices
- Massive reduction of poverty
An ecological transition is complex and includes many transformations, but it will not happen if we do not assure our standards of living are beyond the poverty line. We cannot ask a freezing family not to chop the trees to heat and cook if they do not have any other option. Basic Income is precisely about having options. One of the main objections is that many people will misuse these resources. I read last week an article that made the next question: Which is the best way to help a woman with a gambling problem and two kids, basic income or food and house coupons?
This question shows how some people perceive poverty basically blaming the poor. I have some experience working with the poor and they are as smart anybody else. The only difference is they did not have the same options in education, social inclusion or job opportunities. I am not saying basic income will solve poverty immediately, and a lot of social work needs to be done, but at least it will help to achieve some balance and provide a solid ground for a transition towards a more sustainable society.
Written by: Martin Lago Azqueta
Martin was born in Madrid in 1976, and he is graduated in biology with a Master in International Aid and Cooperation. He has worked with several aid agencies and now he is Phillipines and Central Asia Desk Officer for Caritas Spain. Apart from development projects and emergency interventions, he has specialized in climate change, working with several civil society networks since 2008. He has coordinated a number of “Documentación Social” dedicated to climate change (2016), and written a book about basic income (2018).
[1] Evelyn L Forget (2011) The town with no poverty. Community Health Sciences. Faculty of Medicine. University of Manitoba. 750 Bannatyne Ave. Winnipeg MB R3E 0W3. CANADA.
[2] Data: Instituto Nacional de Estadística 2016. If we consider other incicator such as AROPE, which is used in Europe context, 27.9% of the population in Spain is at poverty risk (AROPE, 2016).
by Florie Barnhoorn | Apr 12, 2018 | News
Credit Picture CC Flickr.com / Foam: Futures of the Universal Basic Income
Reyer Brons, editor-in-chief of Vereniging Basisinkomen (Association for Basic Income), the Dutch branch of the Basic Income Earth Network (BIEN), and also member of the Network for Political Innovation (NPI, a Dutch think tank), has, in recent months, collected about seventy objections that people might bring up in discussions about (the introduction of) an unconditional basic income (UBI). All objections are subdivided into twelve themes and provided with a short explanation and a refutation or relativisation.
The intention of the work is to give people some background information which can help them in debates about the UBI with supporters and opponents of the policy. As the complete work is rather comprehensive and written in Dutch, only the themes and objections will be presented in this article. An overview of all objections is given (unfortunately only in Dutch) on the website of the NPI with links to the full descriptions. The arguments are also published on the website of the Vereniging Basisinkomen, in a special category of objections (‘Bezwaren’).
In this article, a first example is presented, a short description of an argument with its concomitant explanation and relativisation. Then, some other themes and objections are listed.
For instance, one of the arguments under the theme ‘Implementation’, states “We cannot oversee the long-term effects”.
The objection is followed by a short explanation, that notes:
“It is probably true, that disadvantages of the introduction of a basic income will become obvious in time. However, it will be regarded as an acquired right by that time and therefore it is to be expected that negative developments will evoke opposition among the general public. For example, lowering the level of the basic income would lead to major problems, because many people will not be prepared to face the reduction.”
Subsequently a refutation is given:
“This type of argument is fatal for every policy change. Of course, there will be unforeseen effects, but what policy has none? There are many examples of unexpected consequences, but it did not stop progress. Who could have thought that the exploitation of gas fields in Groningen [a province in the north of the Netherlands] could cause serious earthquakes after decades of drilling? Or that fatal traffic accidents could increase again as a result of the introduction of the smartphone?
In the course of time, society will change in a variety of ways due to the introduction of the policy. Proponents look forward to experience with an unconditional basic income. In their eyes, the effects will have a strong positive influence on society. Furthermore, it is also possible to model the long-term effects (e.g. via micro simulation studies).
If undesirable long-term effects arise, further measures must be developed to counteract the unfavorable consequences. This also applies to the current welfare system. It must be understood that the adverse effects of the current system can hardly be tackled, until that system is thoroughly addressed. When economic conditions deteriorate in a given society, it cannot be ruled out that the basic income payment must be lowered, but the same applies to current benefits. On the other hand, it also cannot be ruled out that the payment will increase over time.”
All objections are listed below, arranged by theme:
1. Common misconceptions
- Basic income is a utopian dream or a fantasy
- Basic income is a hype or a cult
- Basic income means free money and that is not possible
- Basic income is a new and still immature idea
- Basic income is a new label for the same old social security system
- Basic income is unaffordable or antisocial
2. Values and philosophy of life
- Reciprocity is necessary for the legitimacy of the social state and its moral support, that means that an unconditional basic income cannot be solidary
- Having a paid job gives dignity, status and a sense of social integration, basic income will make people lazy
- With basic income, young people no longer take the trouble to study
- Only a small group of people is capable of handling freedom well
- Basic income leads to an increase in the use of alcohol and drugs
- Basic income is bad for the emancipation of women
- The basic income lowers the participation of women at the labor market (they might stay at home to look after the children or take up other unpaid care work)
- Talents remain unused
- Basic income promotes overpopulation
- People always want something more than they see with someone else, therefore they will begrudge someone a basic income
- The group consisting of free-riders, maladjusted or anti-social people will grow, if there is basic income for everyone
- Many are annoyed by the behavior of free-riders, profiteers and anti-socials. Those people are not worth to get a basic income. If they should receive the payment, it would be disastrous for its acceptance
3. Social vision and ideology
- The idea of a basic income goes in the direction of communism, and that is bad
- Basic income is a socialist idea, that cannot work
- It is a reprehensible neoliberal idea
- Basic income creates an undesirable class distribution in society or a strengthening of it
- Basic income increases the chance of ghetto formation
- Basic income increases the power of the state and makes citizens passive and dependent
- Basic income requires unjust redistribution and is actually just theft
- Basic income is a Trojan horse, as soon as it is introduced, massive savings on government spending will be realized
4. Economy
- Basic income is unaffordable
- Basic income does not use sophisticated information and is therefore cumbersome and limited in its goals
- A basic income causes a huge inflation
- Introduction of the UBI will lead to higher taxes and that is bad for innovation and industry
- Basic income worsens the position of the Netherlands on the international market
- Basic income will boost the informal economy, illegal transactions and fraud
- Basic income promotes consumption and is therefore a catastrophe for the environment
- Basic income means that fewer people will accept work, hence the economy will stagnate or shrink
5. Job market
- Nobody wants to accept unpleasant work after the introduction of an UBI
- Many people will be satisfied with the basic income payment
- The loss of income due to unemployment will have a much greater effect with a basic income than in the current situation without a basic income
- If you give people a basic income, that means that you let them down
- Paid work is no longer necessary, so the meaning of work will ebb away. Which fulfilling, decent activity will replace it?
6. Government and bureaucracy
- Basic income makes us all too dependent from government
- The provision of cash to people is not a task for the government
- A basic income turns us all in benefit claimants
- Basic income will never be high enough in order to eliminate all bureaucracy
- Basic income promotes corruption of the government
7. Borders and migration
- The Netherlands on its own is too small for a basic income
- Basic income promotes immigration, especially of economic refugees
- Basic income is discriminatory for foreigners, who want to settle here, if the payment is only for residents
- Basic income promotes unwanted emigration
- Basic income promotes the closing of borders
8. An unconditional basic income will not solve the really important problems
- People with a lot of debt are no better off with a small basic income
- The growing inequality will not be resolved
- Introduction of an UBI is not good for the environment
- It is a solution from the system world, problems in the real world will not be solved
9. Interests
- Trade unions lose their position of power and are therefore against the policy
- Employment at social security agencies is at stake
- Basic income means a radical change in our common live as a society, which is of no interest for the ruling elite
- Most people don’t like the idea of an unconditional basic income
10. Procedures and institutions
- It is not in our hands, it is up to other people to decide on basic income
- The policy is too big for us to handle, we only have four years as a government
- Firstly, we have to do this and then that …, there are so many urgent problems that need to be addressed. The basic income case removes more important reforms from the political agenda
- The design of existing experiments is too small, they can’t tell anything about the real effects of a basic income
- When an UBI is implemented, and it fails to succeed, we can’t get rid of it anymore
- Anyway, introduction of the policy in our country is impossible
11. Amendment and modification
- Political decision making always leads to watery compromises that make our lives worse, not better
- Under the flag of a universal basic income, we introduce a very different policy
- People who really need a basic income will not benefit, others will benefit from it, rather than those for whom it is intended
12. Implementation
- We should not start with the policy, the introduction of a basic income is far too complex
- A basic income can’t be properly phased in, because if we do, we will have two concurrent welfare systems, which might lead to a lot of nasty implications
- We start enthusiastically with the introduction of the policy, but ignore all warnings pertaining to possible implementation problems
- We cannot oversee the long-term effects of a UBI
The reader will notice that some objections are in conflict with each other. For instance, some people may view an unconditional basic income as a ‘communist’ or ‘socialist’ idea, while at the other end of the political spectrum, it is considered as ‘neoliberal’ policy. The idea is rejected for all of these reasons. After all, opposition to the basic income comes from different angles. The same is true for immigration. One person might say that a basic income promotes immigration, whereas another thinks that it inhibits the influx of immigrants.
by Guest Contributor | Mar 28, 2018 | Opinion
Written by Michael Laitman
Michael Laitman
Sadly, 33,000 Toys ‘R’ Us employees are about to be let go. They’ll pack that family vacation picture from their office wall in a brown cardboard box, take a toy or two for keepsakes, and, begrudgingly, go home. They will be joining a growing list of hundreds of thousands of people who are losing their jobs, not because they need to improve their performance or their work ethic, but simply because they are no longer needed.
More and more products are being manufactured using robots, which is more cost-effective for companies, as well as cheaper for consumers, who can order online with a swipe of a finger. Toys ‘R’ Us is only one example of the virtual-technological tsunami that is washing over the business world. It appears in the form giant corporations such as Amazon, Alibaba, Google and their trade partners, trampling every area of commerce possible: retail, banking, clothing, food, advertising and more. This wave doesn’t stop at the private sector; it’s washing away the public sector as well. For instance, Warren Buffet, Jeff Bezos and Jamie Dimon are already on a joint venture to reinvent healthcare.
While it may seem like a silent revolution, these changes promise a socio-economic earthquake the likes of which humanity has never seen before. The virtual-technological future is gradually taking over the very foundations of the global economy and businesses are having to adjust to the change. From small things like providing virtual collaboration training for their employees to implementing more efficient computing operations, technology is changing every industry.
It is becoming normal to talk about robots replacing human labor, but we still have not yet acknowledged the magnitude of this change. Many politicians, economists, and analysts are seeing this as another industrial revolution that comes with labor pains, giving birth to a whole slew of new professions, and are predicting that a newly booming economy will emerge as a result. The use of machinery is always needed in manufacturing circles, that is why universal mills, CNC machines, lathe machines, etc. are constantly evolving to assist in as many areas as possible, hopefully not to entirely take over jobs just yet. Machines play a huge part in this industry, no matter how they are used, so it is important for them to function as a unit and provide what is needed of them. When they have to be moved, fixed, or changed, the use of equipment like Custom Skates as well as other supplies, are needed to keep everything efficiently moving along.
Surely, this is an encouraging view, but it is based on a limited understanding of new technologies being developed at an exponential speed. Even today, we could automate 45% of the activities people are paid to perform in the U.S. with existing technologies.
It’s not about the advanced machinery that replaces our hands and feet at work. It’s about the artificial intelligence being developed to gradually replace human intelligence. AI will think creatively, produce, analyze, develop, program, and work many times more efficiently than the most gifted employee, all the while being many times cheaper and easy to operate.
Artificial intelligence can learn and self-upgrade much faster than a person’s ability to retrain, and will eventually replace human labor everywhere: scientists, doctors, programmers, designers, financial experts, human resource managers. Only a fraction of the workforce will be required to operate and calibrate the various smart machines and advanced software.
Let’s Revolutionize Society – Without the Pitchforks
If you can fathom the future of technology, you can immediately spot the upcoming social crisis. Masses will go into indefinite unemployment, and modern economics will have no answers for them. Current economic models can hardly deal with a 15% unemployment rate. What’s going to happen when we hit 30%, 40% and 50% unemployment? That is unaccounted for in current economics.
If we settle for positive thinking, hoping this upheaval will somehow result in a new booming economy, we run the risk of a mass unemployment crisis. If masses of people have no hope of providing for their basic necessities, they will not sit calmly at home. Without hope, people could default to violence, extremism and support of radical leaders who will offer economic safety in order to come to power, as we have seen in the past.
Alternatively, if we plan in advance, we can revolutionize society – without a revolution. The sooner we acknowledge the inevitable redesign of our socio-economic infrastructure, in a way that jobs will no longer exist in the same sense as before, we will come to grips with the necessity to provide for the basic needs of all members of society.
Whether we do it through some form of Universal Basic Income, or any other technical mechanism, we must understand that a change of social values is the core issue at hand: Every country’s leadership must acknowledge that looking out for the basic needs of every citizen-food, shelter, clothing, education and health-is their top priority.
But what will people give back to society? If only few man-hours will be necessary to maintain the machines, what will human beings do? They will be busy “being human,” which means developing themselves, their families, their societies and all that makes us human rather than robots.
The Real Driver of Technology Is Human Evolution
The so-called “technological revolution” is not accidental, and it’s not actually technological. It’s an evolutionary revolution. Its purpose is the evolution of human society. It will help us step out of the endless rat race, fueled by a material obsession that doesn’t actually make us happy; a chase around the clock that has created a society of little cogs in giant corporations, accumulating stress and rust, while losing touch with one another and ourselves.
Instead of investing our collective energy into working like machines, we could be engaging in the only work that makes humans different from machines. In a society freed from the cyclical chase for material acquisition, we would invest a large portion of our time on a daily basis, investigating, exercising, and developing the sense of the natural human connection that binds us together. One method to realize our potential as human beings at the workplace is to engage in a variety of activities that are not directly related to work. Let’s say you’re at an event hosted by Uniqueworld destination management companies or something similar, and you get a glimpse of how employers function outside of the office. This could give you an outlook on what all you can do as an employer that might benefit your company.
When masses of people are doing this regularly-as their new job-a new society will undoubtedly emerge. Its product will be the positive social energy required to preserve societal balance. It will be a society whose members’ daily work is to maintain the sense of unity and solidarity that prevent violence and extremism, allowing human beings to live together in productive peace.
This work can be done in unlimited creative ways, where people can apply their passion and desire, as long as they contribute to a warm social climate. But it has to start from fundamental training and education on the science of human connection, learning how positive social connections make us healthier, happier and better at everything we do.
Surely, all of the above sounds foreign in a world where we have been trained by advertisers to chase things we don’t need in order to impress people we can’t connect with. But when material needs are taken care of, human nature demands a deeper, more meaningful type of satisfaction. It’s no coincidence that happiness studies show time after time that healthy social relations are the number one predictor of human flourishing.
Our evolutionary social development pushes us to utilize our wiring for human connection, to distill it through constant work on our relationships, and evolve to a new social reality. Rather than competing with robots for an old school job, let’s make our job the only function that no robot will ever replace, and find the kind of happiness that money will never buy.
Michael Laitman is a Professor of Ontology, a PhD in Philosophy and Kabbalah, an MSc in Medical Bio-Cybernetics, and was the prime disciple of Kabbalist, Rav Baruch Shalom Ashlag (the RABASH). He has written over 40 books, which have been translated into dozens of languages.
Featured image from Wikipedia.
Editing by Dawn Howard
by BIEN | Mar 22, 2018 | News
Credit to: Flickr.
Anna Dent, M.Sc., published a Master’s dissertation entitled “From Utopia to Implementation: How Basic Income has progressed from radical idea to legitimate policy solution.”
In it, Dent explores how “utopian and marginal” ideas such as basic income became part of the agendas for policy. The dissertation looks at UBI pilot projects including Finland, the Netherlands, Ontario, and Scotland.
Dent looked at policy change in progress through the dissertation’s “inductive, exploratory approach.” That is, she used case studies, documented analysis, and interviews. The four cases in the research have common aspects.
Many variables close together in time reinforce one another. Basic income was seen as a solution to policy failures, poverty, and unemployment. Each of the four cases – Finland, the Netherlands, Ontario, and Scotland – represent attempts to solve local contexts.
Dent’s research finds the pathway from obscurity to maturity of an idea, as it gains a mainstream positioning.
More information at:
Anna Dent, “From Utopia to Implementation: How Basic Income has progressed from radical idea to legitimate policy solution”, University of Bristol, September 2017
Anna Dent is a consultant working in employment and skills policy and implementation for the public and non-profit sectors. She has particular interests in low-income workers, the changing nature of work, and welfare benefits. She holds an MSc in Public Policy from the University of Bristol, and is a fellow of the RSA (Royal Society for the Encouragement of Arts, Manufacturing and Commerce). She can be contacted via twitter at @anna_b_dent
by Karl Widerquist | Mar 21, 2018 | Opinion, The Indepentarian
This essay was originally published in the USBIG NewsFlash in August 2009.
If I use the phrase “lesson of 1938,” most people will probably think about Britain’s unsuccessful attempt to avoid war with Nazi Germany by giving away a piece of Czechoslovakia. There are important lessons in that event, but that’s not what I want to talk about.
1938 was also an important year in American economic history, and the economic lesson of that year is relevant to our handling of the global recession today. By 1937, the Great Depression had been going on for eight years. Franklin Roosevelt’s New Deal programs had been stimulating the economy for five years, and they began to show significant signs of working. Industrial production and national income were coming back up. Employment was going back down. The economy appeared to be just about out of the depression—
—and then—
Roosevelt and Congress decided to balance the budget. They raised taxes. They reduced government spending. They contracted the money supply and helped send the economy back into depression by 1938, and it remained in recession for three more years. Unemployment was still 10 percent when the United States entered World War II at the end of 1941. At that point, the government started spending massive amounts of money. They worried less about the budget deficit and more about spending what it takes to do the job. The depression disappeared almost overnight.
The economic lesson of 1938 is that the government cannot balance the budget during a major recession—even in the early stages of recovery. A depressed economy needs a stimulus. Although politicians usually won’t say it out loud, a stimulus often requires not only spending but deficit spending. One of the things that turn a financial crisis into a recession is that people and businesses stop spending in a reinforcing cycle. They can’t afford to spend because they’re not making money. They’re not making money because no one else is spending. Only the government has the size and budget flexibility to break the cycle. In a financial recession, concern for the government’s budget deficit can wait.
The government can get away with deficit spending because the government budget doesn’t work like an individual’s budget or even a corporation’s budget. Government creates the money supply; its spending is not limited to what it takes in or what it can borrow. If you or I spend more than we can get, we will go broke. The government doesn’t have to “get” money. It creates money. If the government creates too much money at any given time, it will overstimulate the economy and create inflation. If inflation becomes a problem, we can take action, by say, taxing some of that money back, but for now it is not a major concern. At a time like this, when resources are going unused because no one’s buying, the government as a lot of leeway to create and spend money without worry of inflation.
We should be more concerned with making sure that the direct beneficiaries of government stimulus are the people most in need. Too often the government stimulates the economy by helping corporations (such as investment banks, automobile manufacturers, and defense contractors), telling us that the stimulus will indirectly make its way to help those who actually need help.
A more effective way to stimulate the economy and help people is with universal programs. Universal healthcare or a universal basic income guarantee would be excellent ways to do so.
-Karl Widerquist, Doha, Qatar August 9, 2009
