SWITZERLAND: Government reacts negatively to UBI proposal

SWITZERLAND: Government reacts negatively to UBI proposal

The Swiss government opposes the popular intiative for an unconditional basic income, but the national referendum is still to happen in 2016.

The Swiss Federal Council has released its evaluation of the popular initiative for an unconditional basic income (UBI), which received enough signatures last fall to trigger a nationwide referendum on it. The Federal Council evaluates all people’s initiatives in Switzerland making one of three recommendations: it could accept, reject, or no recommendation. The council chose to reject the initiative. The initiative will still take place sometime in 2016, the rejection means simply that the council recommends that citizens vote no on the proposal.

Enno Schmidt & Daniel Straub, the two main organizers of the people’s initiative said, “This is nothing special. We expected this.” The function of a people’s initiative is to bypass the government and go directly to the people even against the ruling government’s wishes.

The Federal Council also release a statement justifying its rejection of the initiative. The statement alleged many shortcomings of UBI, including: many low-paid jobs would probably disappear or be transferred abroad, Women would be forced back into the housework and care work. Taxes would rise considerably to finance the basic income and further weaken the incentive to work. The amount of the UBI proposed is too large and cannot be financed. It contradicts the principle of subsidiarity. The statement also defended the existing social system is in Switzerland. The Federal Council agreed with the founders of the initiative that each person has to be able to can live a life in dignity but argued that Switzerland achieves that goal with its existing system.

Schmidt & Straub’s reaction to the statement was mixed, “The tone of the message is fair, no nasty insinuations and no polemic.” But, according to Schmidt & Straub, the substance of statement implied that Switzerland would perish if this initiative were accepted by the people.

Philippe Van Parijs, of the Basic Income Earth Network said that this statement was an opportunity for Basic Income supporters “to point out the misunderstandings [in the statement] and to work out realistic scenarios in terms of amount and funding.”

For more information (in German) see:

Enno Schmidt & Daniel Straub, “Botschaft des Bundesrates über das bedingungslose Grundeinommen, [Report of the Federal Council on the unconditional Grundeinommen],” Volksinitiative Grundeinkommen, August 2014.

News.Admin.ch, “Bundesrat lehnt die Volksinitiative ‘Für ein bedingungsloses Grundeinkommen» [Bundesrat rejects the popular initiative “for an unconditional basic income’],” News.Admin.ch, 27, 08, 2014.

Didier Burkhalter, “Botschaft zur Volksinitiative «Für ein bedingungsloses Grundeinkommen» [Message Regarding the People’s Initiative ‘for an unconditional basic income’],” the Swiss Federal Council, 2014.

Aagauer Zeitung, “Bundesrat lehnt Initiative für bedingungsloses Grundeinkommen ab [Bundesrat rejects initiative for unconditional basic income].” Aagauer Zeitung, 27, 08, 2014.

For more information in French see:

Ludwig Gärtner, “Conseil fédéral suisse : Le Conseil fédéral rejette l’initiative populaire ‘Pour un revenu de base inconditionnel,’ [Swiss Federal Council, the Federal Council rejects the popular initiative ‘For an unconditional basic income’]Zonebourse, 27/08/2014

Enno Schimdt contributed to this article.

"8 Millionen Fünfräppler auf  Bundesplatz bei Initiative-Einreichung" -Aagauer Zeitung

“8 Millionen Fünfräppler auf Bundesplatz bei Initiative-Einreichung” -Aagauer Zeitung

UNITED KINGDOM: Scottish Green Party Endorses Basic Income

[Josh Martin]

In a recent publication the Scottish Green Party stated its plan for a basic income (called a citizen’s income in their writing) for Scotland if they vote for independence in the upcoming referendum.  With the slogan of “Green Yes”, the Scottish Greens agree with the UK Greens on supporting a basic income.  In the eight-page publication, the Scottish Greens discuss why a citizen’s income is the right way forward by highlighting the flaws of the current system and the benefits a citizen’s income would bring to Scotland.

The document also outlines their initial plan for a citizen’s income in Scotland: £50 a week for children and young people under sixteen, £100 a week for 16-18 year olds and working-age adults, and £150 a week for pensioners, totaling just under £1 billion to implement.  They then go on to discuss funding options for such a policy.  In sum the Scottish Greens call upon voters to vote yes to independence in hopes that they could then implement this policy.

To read the publication, follow the links below:

Scottish Green Party, “Citizen’s Income”, Green Yes briefing note, 10 August 2014.

Greens Publish Citizen’s Income Plan for Fairer Scotland”, Scottish Green Party, 10 August 2014.

The Scottish Green Party Supports a Citizen's Income (Source: Scottish Green Party)

The Scottish Green Party Supports a Citizen's Income (Source: Scottish Green Party)

World Finance, “Unconditional basic income roundup.”

PUBLISHER’S SUMMARY: Here we round up World Finance’s pursuit of today’s ascendant economic star: unconditional basic income. We take a look at just what unconditional basic income might mean for economies on both a micro and macro level.

World Finance, “Unconditional basic income roundup. World Finance, May 15th, 2014.

Members of 'Generation Basic Income' pose with eight million coins of Swiss five-cent in a vault. Having collected over 130,000 signatures on a petition, the activists have forced a referendum on Universal Basic Income in Switzerland -via World Finance

Members of 'Generation Basic Income' pose with eight million coins of Swiss five-cent in a vault. Having collected over 130,000 signatures on a petition, the activists have forced a referendum on Universal Basic Income in Switzerland -via World Finance

Enno Schmidt, “How a ‘stupid painter from Switzerland’ is revolutionizing work”

Enno Schmidt, “How a ‘stupid painter from Switzerland’ is revolutionizing work”, PBS Newshour, 9th April 2014.

The leader of the Swiss movement for a guaranteed basic income explains why even if the Swiss people vote against the referendum, the basic income will still have won. Photo by Flickr user Kopf oder Zahl.

The leader of the Swiss movement for a guaranteed basic income explains why even if the Swiss people vote against the referendum, the basic income can still claim a victory. Above, Generation Basic Income activists pose with the 8 million coins they dumped in front of the Swiss parliament last fall. Photo by Flickr user Kopf oder Zahl.

OPINION: Global carbon tax petition calls for fossil fuel dividend

No doubt most Basic Income News readers are aware of an interesting intersection where the arguments for basic income overlap with the arguments on how to best control global warming.

In his book, “Storms of my Grandchildren,” climate scientist James Hansen proposes a global carbon tax with the proceeds to be distributed to everyone (he calls it fee-and-dividend).

In other words, Hansen sees a worldwide basic income as a major component in solving one of our most important environmental challenges.

How to get there is the question.

In his book, Hansen proposes that the different national governments each implement a fee-and-dividend system. The fossil fuel fees collected by each country would be distributed as carbon dividends to the residents within their own borders.

Although it might have some effect on a few nations in the short-term, such an approach is unlikely to achieve the desired long-term results.

Nations with limited fossil fuel production but large populations would only have small dividends to distribute, and so little incentive to participate.

Those nations with large fossil fuel industries and small populations would find the temptation to produce and sell untaxed product on the black market attractive.

A better approach might be to bypass the national governments and go directly to the people of the world.

I have posted a petition on Care2 calling for a global carbon tax that takes that approach.

The petition is addressed to the secretary-general of the United Nations and calls for a worldwide referendum on the question.

Such a worldwide vote would be difficult to achieve but far from impossible. Don’t forget that the U.N. organized and ran an election in Kampuchea when much of that nation was still controlled by the Khmer Rouge.

Here in British Columbia, we have a carbon tax of $30 per tonne.

According to Wikipedia, the burning of fossil fuels produces about 30 billion tonnes of carbon dioxide in the world each year.

A carbon tax of $30 per tonne of carbon dioxide would therefore raise about $900 billion per year.

Assuming there are about 5 billion adult human beings on the planet, the carbon tax proposed in my petition would provide each of them with a basic income of roughly $180 per year – effectively doubling the incomes of hundreds of millions.

No doubt most Basic Income News readers can point out many advantages of such a global carbon dividend. However, I would like to identify two that seem to me, as a layperson, most important.

The first would be simplicity. It would be relatively easy to identify those who are eligible to receive the benefit (age 18 and over), which would lessen the possibilities for corruption.

The second is that it would not be charity. The lives and livelihoods of every human being are being put in danger by global warming. The proposed carbon dividend would therefore be in partial compensation for that risk.

Such a global fee-and-dividend system would not solve all the world’s problems – but it would be a step in the right direction. It would help us to get a handle on global warming and global inequality – two of our biggest problems.

It would also open the door for reform and democratization of the United Nations (“No taxation without representation”).

The petition seeks to get 100 million names. This is modeled on the Swiss precedent, where 100,000 signatures on a petition are enough to get an important initiative taken to referendum. The world’s population (7 billion and rising) is about 1,000 times larger than that of Switzerland (8 million).

I don’t really expect the Care2 petition to achieve that number. I do hope, however, that some international organization will pick up the idea and run with it.

You can view the petition (and hopefully sign it) at:  www.thepetitionsite.com/286/384/042/petition-for-a-referendum-on-a-global-carbon-tax