Basic Income can change humanity for the better

Basic Income can change humanity for the better

Written by Anca Stănescu

The saying goes that every person is the change he or she wants to see in the world; that every good action has an impact on others; that we just have to want to change something and we can do it. Is that really how the world works?

What if each human being is empowered to change himself or herself for the better, perhaps the world just improves on its own.

How many of us really have the freedom to actively think about making the world a better place? How many people can enjoy the certainty of a decent life, peace, time and a lack of worries about day to day life? The world could change itself for the better if the Earth’s nearly eight billion people all enjoyed this kind of freedom.

This state of freedom is attainable and it is called Universal Basic Income.

Universal Basic Income implies that every human being has the right to life. Many will say that the right to life is already the most natural right of the human being, guaranteed in the constitutions and conventions of the world. Is this really the way it is?

In order for us to live, we need food and water in the first place. However, as long as food and water are not free resources, but assets in the possession of someone who will only provide them to us in exchange for an amount of money, how are we still guaranteed the right to life if we do not have that amount of money? We are not. The right to life is an obsolete clause in an agreement concluded between one seller and nearly 8 billion buyers.

Next to food and water, we need walls and a roof. We also need some utilities, such as a heating system of our home, so we don’t get sick and therefore are able to exercise this so-called guaranteed right – the right to life. Now, it may be a stretch to say we have the right to maintain this with a roofing contractor, but think about it. We deserve to have our walls and roof maintained, kept safe and well for us to live under. Plus we also need to know that we are entitled to these few basic resources without conditions, that we can enjoy them for the entire duration of our life (to which, of course, we are entitled) and they will not be taken away from us, so we don’t get sick of the thought that we have to struggle to survive, and therefore we can exercise our right to life. We do not get any of these when we are born. Everything has to be bought. And everything is bought with money. All these basic resources only ensure a decent survival – not happiness, not self-esteem, just survival. These are essential to us, that is why there are companies who are trying to adapt and advance their technology and mechanics so that people who have utilities are able to use them safely and efficiently without worrying that there will be an issue that they will be left without. This includes installing new equipment such as stronger powerlines, safety wiring, disconnect switches, etc. If people want to know “what are disconnect switches?” or “how do I get safety wiring installed?” they will need to discuss this with their utility providers and see how they can keep these necessities safe within their homes.

So the right to life, written on paper, means nothing as long as survival must be bought with cash. And if life must be bought, then let’s all, unconditional, guaranteed, and continuously, have that amount of money, enough just to cover our basic needs. Let us all have a universal basic income, a sufficiently large amount of money obtained unconditionally and (perhaps) monthly, to provide every human being with the possibility to buy the floor of existence – food, water, shelter and access to utilities – in such a way that on this floor anyone can voluntarily and creatively build new levels of existence.

No, people will not stop working and productivity will not drop, because once the basic needs are fulfilled, human beings will have other needs too. We will continue to work in order to satisfy the needs on the upper levels of the pyramid, which only in the presence of a universal basic income could really become needs to make the world a better place.

In a world where no one has to worry for survival, every human being has the freedom and the power to change for the better. Maybe the saying should go that the world changes human beings for the better, and not the other way around.

Anca divides her free time between writing on a science blog and gathering basic income supporters. She is an early advocate of basic income in her country, having launched in 2016 the first Romanian website devoted to the promotion of basic income fundamentals.

References:

https://www.un.org/en/universal-declaration-human-rights/

https://medium.com/basic-income/if-we-no-longer-force-people-to-work-to-meet-their-basic-needs-won-t-they-stop-working-3996442b7585

The Netherlands: the aversion towards an unconditional basic income, summarized in seventy objections

The Netherlands: the aversion towards an unconditional basic income, summarized in seventy objections

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.

United States: Andrew Yang is running for President in 2020 on the platform of Universal Basic Income

United States: Andrew Yang is running for President in 2020 on the platform of Universal Basic Income

Andrew Yang is a young entrepreneur who is running for president on the platform of Basic Income. As an entrepreneur, he started and led several technology and education companies. More recently he founded Venture for America, “a nonprofit that places top graduates in startups in emerging U.S. cities to generate job growth and train the next generation of entrepreneurs.” Because of his varied experience, Yang travelled all over the United States and came face to face with the reality of several dreary and forlorn locations. In his new book, The War on Normal People, he describes visiting Detroit in 2010, when the city “was just beginning its descent into bankruptcy,” he remembers “cold, empty streets feeling abandoned,” and he saw the same in “Providence, New Orleans, and Cincinnati.” These experiences led him to create Venture for America, sending talented entrepreneurs to these cities in an attempt to create jobs and revitalize these areas.

 

Andrew Yang and President Obama, 2012

Even though Venture for America was highly successful, “people were clapping us on the back, congratulating us on our accomplishments,” but he thought: “What are you congratulating us for? The problems are just getting worse.” He realized that there is too much “human and financial capital flowing to just a handful of places doing things that are speeding the machine up rather than fixing what is going wrong.” Yang realized that technology was hitting the economic fabric of the country and “eliminating livelihoods for hundreds, thousands of the most vulnerable Americans.” This is the beginning of a wave he calls the Great Displacement, a wave that “grinds up people and communities” in ways that are not clear nor straightforward and that can lead to utter disaster – this reality is already partly responsible for the election of Donald Trump, and when it hits it will become even more frightening. Yang feels a sense of urgency, in the sense that we need to do something, “it’s getting late, and the time is running short.”

 

When asked about how he decided to run for president, he said: “What happened was that I saw Donald Trump get elected and realized that there is a very short window of time between now and when things get so bad that it is going to be difficult to easily reconstitute many of the regions [that are most affected and that elected Trump]. It was in 2017 and I decided that someone should run for President on Universal Basic Income and so I went around and asked who is going to do this? When I saw no one was going to do it, I decided to do it.” Yang’s platform is mainly focused on Universal Basic Income, but also includes Medicare for All and something he calls Human Capitalism. In Human Capitalism we would still have a free market, but would not be focused primarily on corporate profits, but instead should follow three central tenets: “1. Humans are more important than money, 2) The unit of a Human Capitalism economy is each person, not each dollar, 3) Markets exist to serve our common goals and values.”

 

In his book, War on Normal People, Yang paints a bleak view of automation. He predicts it will arrive soon and in full force, anytime between 2020 and 2030. Service jobs will be mostly automated as well as customer service jobs, construction jobs and jobs that include driving a vehicle. Recently the New York Times had a piece about the automation of retail, Retailers Race to Automate Stores, saying that there will be stores with “hundreds of cameras near the ceiling and sensors in the shelves help automatically tally the cookies, chips and soda that shoppers remove and put in their bags. Shoppers accounts are charged as they walk out the doors.” Customer service in call centers can be easily substituted by artificial intelligence (AI) so effectively that you may not be able to tell if you are speaking to a person or a computer. Many more intellectually based jobs such as accountants, insurance sellers and paralegals can also be more efficiently done by AI. One of the most worrisome areas where job loss will hit hard is driving a vehicle. Self-driving trucks and cars can displace many middle-aged males in the United States, in areas that are already hard hit by automation. The Great Displacement, according to Yang, is scary and happening fast.

 

One of the policies that can be immediately implemented is Basic Income, which Yang calls a Freedom Dividend. Yang’s proposal calls for $1,000 a month for each American, $12,000 a year. Yang suggests that the most efficient and quick way to finance a Basic Income of this kind is implementing a VAT – Value Added Tax, of around 10%, many European countries have a VAT around 20%. Yang believes a VAT is an adequate way to gather funds for Basic Income because it is charged on volume, not on profit, so that large retailers, such as Amazon, would not be able to escape it. Even though VAT would increase prices for all, when used exclusively for Basic Income it would lead to lower income people still benefiting from the policy. Yang said: “it’s going to help 85 percent of Americans, the only people that it doesn’t help are the top 15 percent who will be putting a lot more money into the VAT. The people that consume the most are the richest and with a VAT they can’t escape it, with income tax rich people are excellent at escaping it in various ways.” Yang also prefers it to a wealth tax as “people will start shifting wealth around in various ways” and would easily be able to avoid it. Yang also defends a Carbon Tax.

 

Andrew Yang, Melanie Friedrichs and Sean Lane

Yang has a vision of the future where, aided by a Basic Income, or the Freedom Dividend, local economies will thrive: “My vision for the future is of an artisanal economy that many people participate in, that is borne by human interests that are not trying to build the next Chipotle or Google. You create a bakery that everyone loves in your town and then you employ 10 people and everyone is happier because there is a very good bakery. Then you multiply that by a bunch of businesses. That’s the future to me. It’s impossible for more and more people to compete against the mega-corps, but when everyone has a Universal Basic Income, then we can all frequent business we enjoy. That’s the ideal vision and that’s what Universal Basic Income allows for.”

 

In the book, The War on Normal People, Yang speaks about time banking exchanges in local communities that already exist. According to him, that’s a way to address how people will spend their time in satisfying and productive ways, after automation arrives and Basic Income is implemented. In Brattleboro, Vermont, there is a time bank with 315 members that has already exchanged 64,000 hours of mutual work. With a time bank, each person offers whatever services they have and bank time that can be latter traded for other services that others offer within the community. It’s a way to stay busy, connected, and meet your community neighbors. Yang suggests something called Digital Social Credits, which would work in a similar way, connecting communities and providing a local exchange of services.

 

Yang’s campaign has started and he is ready for the challenge ahead. In his own words: “I’m going to run for president on Basic Income for the next two and a half years. The better I do, the more real Basic Income becomes for millions of Americans. We can run again in 2024, and 2028, until we win, if we don’t win this time.” Yang sees Basic Income as an urgent policy that needs to happen now as is willing to fight for it as a presidential candidate.

 

More information at:

Kevin Roose, “His 2020 Campaign Message: The Robots Are Coming”, The New York Times, February 18th 2018

HEALING BUT NOT A CURE (from 2009)

This essay was originally published in the USBIG NewsFlash in February 2009.

 

Like millions of people around the world, I watched Obama’s inaugural last month and saw the panning shots of huge crowds against the backdrop of the Washington Monument and the Lincoln Memorial. This image made me think not only about Washington and Lincoln but also Martin Luther King, Jr. and the pictures of the crowds listening to his “I Have a Dream” Speech. The fact that that picture from the center of U.S. capital brings to mind those three names, shows how much the racial divide has affected U.S. history.

There is a line on the Washington Monument about a third of the way up to where the stone slightly changes colors. Tour guides say that this line is there because construction was halted during the Civil War, and builders couldn’t find a perfect match for the original stone when construction resumed. There is something fitting about that. Slavery disfigures Washington’s legacy. Washington made it clear that he knew slavery was wrong, as did Benjamin Franklin, Thomas Paine, John Adams, Thomas Jefferson, and many other revolutionary leaders. But none of them found a way to put an end to it. Instead, they set us on a path that led to the Civil War, and to the racial divide that Lincoln and King dreamed of resolving.

With the election of Obama, the United States became the first majority-white nation to elect a black chief executive. I think most Americans of both parties are rightly proud of that. Ideally, there should be nothing special about electing a member of a minority group, but for more than two centuries, America chose all of its presidents because they were white men. This time we didn’t. Certainly, our willingness to put a black man in charge indicates that racism isn’t as strong as it was 50 years ago when few whites would accept a black in any position of authority over them. Maybe white racial identity will no never be a prerequisite for political success in the United States.

The election of a black president is probably the most significant in a long series of small victories in the struggle against racism in America, but it doesn’t mean racism is over. Familiar racist incidents are still happening. On election night three white supremacists set fire to a predominately African-American church in Massachusetts. On New Year’s Day, a police officer in California shot an unarmed black man who was being held down on the ground by another police officer. In three states, Louisiana, Mississippi, and Alabama, more than 85% of whites voted for the white candidate and more than 85% of blacks voted for the black candidate. Such racially polarized voting has to indicate a continuing problem with racism.

And, as Rev. Joseph Lowery reminded us in his benediction at Obama’s inaugural, oppression isn’t about any one group. It would not be a victory for equality if European-Americans lost all prejudice against African-Americans only to single out some other group such as Arab-Americans, women, gays, Muslims, or Jehovah’s Witnesses. But comparing the United States today to where it was 50 years ago, I think members of almost every group that has suffered from prejudice would say we have made significant progress.

How will we know when we have won? I’ll offer two thoughts. First, ask a member of the oppressed group. Ask many. Don’t tell anybody else when their problems are solved; let them tell you. Second, maybe oppression is over when we have no more ghettos. As long as children still grow up in large concentrations of poverty, despair, and danger, we still have oppressed people whatever their identity.

I think this is why Martin Luther King turned to the Poor People’s Campaign in the last year of his life. Nominal legal equality was largely achieved by the Civil Rights legislation of the mid-60s, and King recognized that economic and social barriers were now the main obstacle to real equality and freedom. King proposed a host of economic reforms, including a basic income guarantee, not to reduce—but to eliminate—poverty, because by then poverty was the greatest source of oppression in America. It remains so today.

I think we can celebrate an important achievement, but we should remember that we have lot more to do to build a society free from oppression.

-Karl Widerquist, Reading UK, January 2009

Rural basic income ‘maximizes impact’ for society

Rural basic income ‘maximizes impact’ for society

By JOHN MCCONE

Basic income has many advantages over means-tested benefits: no processing times (with funding gaps where people can be left homeless); no restrictions on freedom; less disincentive to work; and a higher credit value to raise loans at lower interest compared to means-tested benefits. Overall the reliability, unconditionality and lack of bureaucracy makes basic income the dream benefit to receive.

But while basic income may be the dream benefit for recipients, it is a budgetary nightmare for those funding it. Whichever way you run the numbers, a given tax revenue distributed evenly throughout society will provide the most needy with less than if they were the sole recipients. This typically causes enthusiasm for basic income to wane as policy makers consider the practicalities of budgeting for it.

Is there any way for society to reap the benefits of a universal basic income while reducing its cost? What if basic income was restricted to those who live in the countryside (who don’t regularly commute to the city)? Most developed countries today are highly urbanised with 70% or more of their populations living in cities (82.6% in the U.K. in 2015). A rural basic income would cost the taxpayer 3 to 5 times less than a universal basic income and leave room in the budget for means-tested benefits to the needy.

While a basic income limited to rural inhabitants would not be universally distributed, it would be universally available. Anyone could move to the countryside and automatically receive it. This would close any gaps in the benefits system and ensure that those who were truly desperate but did not qualify – or understand how to apply – for means-tested benefits could always move to the countryside and immediately receive a rural basic income. The countryside is very different from the city due to different ways of life. People in the city are more likely to go to the gym, whereas, those in the countryside are more like to go shooting or become a collector. You could learn more about shooting, accessories (red dot sight) and insurance at Sniper Country in case you wanted to give it ago!

In addition to reducing the budget, distributing a basic income to rural locations, where land rents are minimized, maximizes its impact. All a person really needs is food, shelter and water. Low rents make shelter less expensive as well as providing land where people can cheaply grow food. We often overlook the amount of extra time that otherwise unemployed people have compared to salaried workers which, given the right tools and resources, they can apply to provide for themselves. Thus, a basic income does not necessarily have to be large enough to enable people to purchase their material needs from retailers (e.g. groceries, restaurants); it must only be sufficient to give people access to the capital they need (e.g. fertilizer, greenhouses, farm tools) to apply their own labour to produce what they need for themselves. So low land rents have a huge impact on the cost of self-provision.

Given two choices people usually choose the more preferable option. If the goods that can be procured with a given amount of effort from a lifestyle in the countryside are greater than the goods that an identical effort in the city can procure, then people will tend to move to the countryside. It is perfectly possible that the quality of life that working in nature, with low rent payments and a solid basic income of £5,000 (front-loaded with a low interest loan to buy, say, a log cabin) in the countryside might be better than a precarious salary of £20,000 and a 2 hour daily commute in a high rent area of the city. If this is the case, all those with lower salaries than £20,000 will leave for the countryside creating labour scarcity and increasing the salary of unskilled labour to £20,000. Thus, a relatively modest basic income in an area where money is scarce and the cost of living low could exert a highly leveraged effect on salaries in areas where the cost of living is high and money is plentiful.

Beyond raising wages, giving everyone the option to provide for themselves in nature, as opposed to working for somebody else, will strengthen the negotiating position of employees across the board. Managers will have to struggle to retain their workers, this struggle will produce more satisfying jobs and a more fulfilling work environment. A scarcity of labour will also mean that jobs in the city will be easily available to anyone who wants to take them. Furthermore, even a small number of people heading for the countryside will leave a surplus of un-rented accommodation. This in turn will make rents more affordable.

From this we can see that, not only is a rural basic income an affordable way to conveniently pay benefits to those who choose to move to the countryside, but it will also indirectly increase wages, employment and job satisfaction in the city along with lowering rents. A rural basic income could thus affordably improve the lives of everyone.

 

Author of The Countryside Living Allowance (Link: https://www.blurb.co.uk/b/8487802-the-countryside-living-allowance)