World premiere of Basic Income documentary Free Lunch Society

World premiere of Basic Income documentary Free Lunch Society

A new documentary on basic income — Free Lunch Society by Austrian director Christian Tod — premiered in Copenhagen’s Bremen Theatre on March 20, 2017, to a crowd numbering in the hundreds.

The 90-minute film covers a range of “highlights” of the basic income movement, such as (for example) Alaska’s Permanent Fund Dividend, Manitoba’s “Mincome” experiment, campaigns for guaranteed minimum income in the 1960s US, the 2008 basic income pilot in Namibia, Switzerland’s 2016 basic income referendum, and current concerns about automation. Along the way, it features interviews with prominent basic income proponents — including, among others, billionaire businessman Götz Werner (founder of the German drugstore chain dm-drogerie markt), libertarian political scientist Charles Murray (American Enterprise Institute), venture capitalist Albert Wenger (Union Square Ventures), Mein Grundeinkommen founder Michael Bohmeyer, Swiss referendum co-founder Daniel Häni, economist Evelyn Forget, and writer and entrepreneur Peter Barnes.

In an interview about the film (“Curiosity and the desire to improve the world”), Tod explains, “The film takes as its point of departure an ethical justification of basic income founded on the premise that natural resources belong to us all.” Tod’s musical selection — centered around the song “This Land is Your Land” — reflects this orientation toward the subject, as do his cinematographic decisions to include clips of natural scenery interspersed between the vintage footage and talking expert heads. (As he says in the same interview, “What might not come across quite so clearly in the completed film are elements which strike me as extremely important such as the countryside, the Earth, natural resources. I had wanted these aspects to be more prominent, but then the narrative would have suffered.”)

Tod has also acknowledged the influence of the science fiction series Star Trek: The Next Generation on his thinking about basic income and, eventually, the film: “It presents a society where there’s no money, where people only work because they really want to, and where they are driven by human curiosity.” Correspondingly, Free Lunch Society begins and ends with scenes from Star Trek.

About the interview subjects in his film, who were chosen in part to emphasize the political diversity behind support for basic income, Tod notes, “It’s interesting that they are almost all business people: owners of technology companies, CEOs of large or small companies, people who can afford to think about making the world a better place.”

Asked about the most surprising thing he learned while making the film — in an interview following the film’s premiere (see below) — Tod mentioned the discovery that “basic income was such a big thing in the United States in the 1960s,” tested in experiments and nearly voted upon.

 

Watch the Trailer

YouTube player

 

World Premiere Event

Most of Copenhagen’s Bremen Theatre 648 were filled at the world premiere of Free Lunch Society on Monday, March 20, 2017.

Director Tod states, “It was a fabulous evening in a tremendous location. It was very special to have the world premiere of Free Lunch Society in Copenhagen, because my film career started in this beautiful city 10 years ago, when I studied at Copenhagen university’s film department. The premiere on Monday was, so far, the peak of my career in filmmaking. Almost 650 people watching my vision and applauding, laughing and apparently liking it, is hard to top.”

The film’s world premiere was followed by short interviews with Tod and Bohmeyer, as well as a panel discussion with Uffe Elbæk (Leader of the Danish green political party The Alternative; Danish: Alternativet), Steen Jakobsen (Chief Economist at Saxo Bank), and Dorte Kolding (Chair of BIEN-Danmark). All three panelists were sympathetic to the idea basic income, although Elbæk explained that The Alternative was not prepared to endorse it — though they would be willing to pursue pilot studies, and though the party’s political agenda includes the provision of benefits to the poor “without specific control measures” (that is, without conditionalities like work requirements, similar in spirit to a basic income). Jakobsen advocates a negative income tax, as proposed by Milton Friedman, as a way to increase the purchasing power of the lower and middle classes and produce a more equitable distribution of wealth.  Watch below (panel discussion and debate in Danish).

 

YouTube player

 

The world premiere was followed by several other showings in Copenhagen, including one which was held as part of BIEN-Danmark’s Annual Meeting (March 25, 2017), with showings in Austria scheduled in late March and early April.

 

More Information

Free Lunch Society Official Facebook page.

Jannie Dahl Astrup, “‘Free Lunch Society’: Øjenåbnende ørefigen til kapitalismen,” Soundvenue, March 20, 2017 (film review, language: Danish).  

 


Thanks to Karsten Lieberkind for helpful information and reviewing a draft of this article.

Photo: Free Lunch Society promotional image from CPH:DOX.

 

US: Prominent Republicans call for carbon tax and dividend

US: Prominent Republicans call for carbon tax and dividend

A group of prominent Republicans has released a proposal for a carbon tax and dividend as an alternative to the Obama administration’s regulation-based approach to mitigating climate change.

The proposal would provide Americans with a small basic income, as it calls for revenue from the tax to be “returned to the American people on an equal and quarterly basis.”

 

A carbon tax (or fee) and dividend has often been noted as a possible means of financing a basic income in the United States, endorsed by groups such as the Citizens’ Climate Lobby and Chesapeake Climate Action Network and even recommended by the California State Senate in an August 2016 vote.

While campaigners typically focus on the taxation of carbon as a strategy to mitigate climate change, basic income supporters call attention to the “dividend” component: in most proposals, revenue from the carbon tax would be distributed to all individuals in uniform cash grants paid out on a regular basis (e.g. monthly or quarterly). The amounts of dividends vary across specific proposals, but are small, relative to a full-fledge liveable basic income. For example, the California Senate resolution was estimated to lead to payments averaging $288 per month to family of four. And economist James K. Boyce and With Liberty and Dividends for All author Peter Barnes argue for a $200 monthly dividend to individuals, funded by taxes on pollution and other rents from “universal assets”. However, dividends funded by a carbon tax meet the main criteria for a basic income: they are paid in cash, with no strings or conditions, to all members of a community on a regular basis.

 

A group of prominent US Republicans has now issued a call for a carbon tax and dividend, which they present as a “free market” solution to climate change.

The Climate Leadership Council (CLC) includes, among others, two former Secretaries of State (James Baker III and George Shultz), a former Secretary of the Treasury (Henry Paulson Jr), and two former Chairmen of the President’s Council of Economic Advisers (Martin Feldstein and Greg Mankiw).

The CLC’s proposal, laid out and defended in “The Conservative Case for Carbon Dividends” (February 2017), describes its dividend proposal as follows:  

All the proceeds from this carbon tax would be returned to the American people on an equal and quarterly basis via dividend checks, direct deposits or contributions to their individual retirement accounts. In the example above [a carbon tax beginning at $40 per ton and increasing over time], a family of four would receive approximately $2,000 in carbon dividend payments in the first year. This amount would grow over time as the carbon tax rate increases, creating a positive feedback loop: the more the climate is protected, the greater the individual dividend payments to all Americans. The Social Security Administration should administer this program, with eligibility for dividends based on a valid social security number.

In justifying the dividend, the CLC states, “We the People deserve to be compensated when others impose climate risks and emit heat-trapping gases into our shared atmosphere” — a claim reminiscent of much discourse surrounding basic income.

The CLC also notes that the dividend would be especially beneficial to poor Americans: “The Department of Treasury estimates that the bottom 70% of Americans would come out ahead under such a program. Carbon dividends would increase the disposable income of the majority of Americans while disproportionately helping those struggling to make ends meet.”

 

The CLC’s proposal has gained the support of other advocates for a carbon tax and dividend.

In remarks to CNN, the Citizens’ Climate Lobby spokesperson Steve Valk called the proposal “an aggressive, properly designed carbon tax that employs the power of the free market to do the work is more effective and efficient than regulations.” Peter Barnes, whose 2014 book With Liberty and Dividends for All helped to popularize the idea of pollution taxes and dividends, also welcomes the conservatives’ proposal. Barnes states:

“This is a real step forward for conservatives. They are proposing to pay dividends to all Americans with money generated by pricing a previously unpriced common asset, the air we all breathe. These eminent Republicans effectively agree that the air belongs to everyone, one person one share. In this sense they are heirs to the late Republican governor of Alaska, Jay Hammond, who created the Alaska Permanent Fund on the same premise, with oil rather than air as the co-owned asset.”

Michael Howard, Professor of Philosophy at the University of Maine and Chair of the US Basic Income Guarantee Network, has written a Basic Income News feature in response to “The Conservative Case for Carbon Dividends.” Howard calls the publication a “very welcome development” in both the fight against climate change and the movement for basic income. A carbon tax and dividend, he claims, is “closest analogue on the national scale to Alaska’s Permanent Fund Dividend that we can hope for in the near term.”

 

Other responses, however, have been less enthusiastic.

In particular, some environmental advocates denounce the proposal’s demand that existing regulations on pollution be repealed. The National Resources Defense Council, for example, released the following statement in response to the CLC:

What’s important is that we cut carbon pollution fast enough to avoid the worst impacts of climate change. Putting a price on carbon could be an important part of a comprehensive program. It can’t do the job alone, though, and is not a replacement for carbon limits under our current laws.

Likewise, Howard agrees that “unless the carbon tax is set high enough and is assured of rising regularly, to give away the EPA’s authority to regulate carbon emissions might be a fool’s bargain,” and doubts that carbon tax alone is sufficient to combat climate change. As he notes in his Basic Income News feature, reduced consumption, development of alternative technologies, and assistance to poor countries in their transition to non-carbon energy sources might be necessary components of the solution. 

 

Members of the CLC met with White House officials on Wednesday, February 8 to present the proposal.

However, the White House has yet to comment on any planned action, and most commentators agree that it is unlikely the Trump administration will pursue any climate legislation (even if that legislation is proposed and defended by prominent Republican statesmen) in the foreseeable future.

 

More information:

Climate Leadership Council, “The Conservative Case for Carbon Dividends,” February 2017.

Martin S Feldstein, Ted Halstead, and N Gregory Mankiw, “A Conservative Case for Climate Action,” The New York Times (op-ed), February 7, 2017.

Chris Mooney and Juliet Eilperin, “Senior Republican statesmen propose replacing Obama’s climate policies with a carbon tax,” The Washington Post, February 8, 2017.

John Schwartz, “‘A Conservative Climate Solution’: Republican Group Calls for Carbon Tax,” The New York Times, February 7, 2017.


Reviewed by Dawn Howard

Pollution photo CC BY-NC 2.0 Christina Carter 

VIDEO: Economist James Boyce on Basic Income, Carbon Tax and Dividend

VIDEO: Economist James Boyce on Basic Income, Carbon Tax and Dividend

In a recent interview and article, economist James K. Boyce defends a universal basic income of $200 per month, funded in part by taxes or fees on carbon emissions and financial transactions.

Boyce, an economics professor at the University of Massachusetts at Amherst and program director at the Political Economy Research Institute, recently co-wrote a article on the topic with entrepreneur Peter Barnes, who authored the 2014 book With Liberty and Dividends for All. The article was originally published as “$200 Dollars a Month for Everyone? Universal Income from Universal Assets” on Triple Crisis, a blog devoted to finance, development, and the environment. It has also been republished on Medium as “How To Pay For Universal Income”.

Boyce and Barnes argue that a modest basic income could be funded from “universal basic assets” — wealth that is rightfully owned by all members of society, such as that which is derived from appropriation of the commons (e.g. extracting minerals or timber from the land or releasing pollutants into the atmosphere). They argue that universal basic assets also include a portion of wealth generated from society’s financial and legal infrastructure.

On their view, a portfolio of such commonly held assets could (and should) be used to fund a citizen’s dividend of $200 per month to all Americans, distributed automatically via wire transfers to individuals’ bank accounts.

Boyce provides further explanation of the proposal in an interview with Kim Brown of the Real News Network (see video below).

In the interview, while elaborating upon the idea of universal basic assets, Boyce compares and contrasts his proposal with Alaska’s Permanent Fund Dividend (PFD), which provides all Alaskan residents with an annual basic income ($1022 in 2016) from the revenues on a permanent fund created from royalties on the sale of the state’s oil. Boyce notes that whereas Alaska’s PFD incentivizes drilling for more oil, a carbon tax and dividend would dis-incentivize carbon emissions, thereby promoting more sustainable energy production.

Boyce further articulates his ethical justification for a citizen’s dividend in response to a question concerning whether it is fair to give money to those who don’t work for it: “All we’’re talking about is returning to people the money that comes from uses of assets we all own or should own in common. So, it’’s not about handing out free money. It’’s about not letting people use those assets for free. That’’s the real handout.”

YouTube player

A transcript of the interview is available on the site of the Real News Network (“Universal Basic Income: A Solution to Inequality, Economic Instability, and Climate Change,” November 21, 2016.)


Cover Photo: CC BY-NC-ND 2.0 Pembina Institute

An American basic income: how do we get there?

An American basic income: how do we get there?

By Jim Pugh

“I like the idea, but it’ll never happen.”

I hear this response a lot when talking to people about establishing a universal basic income in the United States. Once you get past the explanation of what a basic income is and how offering it could eliminate poverty, support entrepreneurship, and prepare us for a future where most jobs have been displaced by automation, people are generally quite supportive”Š-“Šbut they don’t believe that it could ever be implemented here.

And their skepticism is entirely reasonable. In today’s political climate, it’s hard to imagine how a program as radical as basic income could be enacted. When simply passing a budget to keep the federal government operational starts to seem like a big accomplishment, what chance do we have for major reform?

But in spite of the perceived impasse, there is a viable path to implementing universal basic income in the United States. Here’s how it can work.

Step 1: Spread Awareness

If you were to stop a random person on the street and ask them what they think about basic income, you’d most likely get a confused stare. While more people have become interested in the idea in recent years, basic income is still unknown to the population at large. What’s more, when you first tell people that the solution to some of our biggest economic challenges is just giving everyone money, a lot think the idea sounds crazy.

For that reason, the first step on the path to an American basic income is raising awareness and support across the country. For radical reform to become possible, there needs to be a solid majority of Americans behind the idea.

There isn’t any secret formula for accomplishing this”Š-“Šit’s up to those of us who support the idea to make it happen. We can talk to our friends and family and convince them of the importance of basic income. We can produce compelling media that explains the idea and why it will work. We can organize events to capture the attention of the press and general public.

In 1933, a man name Francis Townsend wrote a letter to the editor of his local newspaper, proposing a plan to provide money every month to the elderly across the United States. Within a year, millions of people had organized into grassroots groups around the country, distributing pamphlets to their community and advocating for passage of the Townsend Plan. And just one year after that, Franklin Roosevelt proposed and passed the Social Security Act, providing the first-ever federal assistance to American retirees.

More and more, people are starting to realize the system we have right now is no longer working. If we let them know there’s a better alternative out there, we can build a movement in support of universal basic income in the United States.

Step 2: Test It Out

Providing a full basic income to all Americans would be a huge leap forward. Before we can make that leap, we need to try it out in a more limited capacity.

The second step on the path to an American basic income is to enact smaller-scale prototypes of the program and see how they go. By observing actual implementations of basic income-like programs in the United States, we can gain insight into how a full program would work and allay the concerns of skeptics. And the cost could be considerably lower, making prototypes much more achievable in the short term.

There are a couple of different models for how basic income prototype programs could work:

Dividends from Shared Resources

One type of basic income prototype actually exists in the US already: the Alaska Permanent Fund. Since 1976, the state of Alaska has managed a fund which is financed by oil revenue in the state. The fund pays out dividends each year, split equally amongst all Alaska residents. Over the last 25 years, the dividend payment has varied between $800 and $3,200 per person.

While the amount awarded isn’t sufficient to be considered a true basic income, the Alaska Permanent Fund is an example of an unconditional, universal income. In his book With Liberty and Dividends for All, Peter Barnes argues that this program could pave the way for adoption of similar plans by other states and could be expanded to provide increased universal income down the road.

Credit: 3D Printing Industry.

Credit: 3D Printing Industry.

In fact, an analogous program is currently being considered in Oregon. Under the Carbon Fee and Dividend plan, polluters in the state would need to pay for the carbon they emitted, and this money would then be distributed equally to all Oregon residents. While the Alaska Permanent Fund model only makes sense for states with large oil industries, Carbon Fee and Dividend could be expanded to every state in the country.

Randomized Trials

Another potential prototype model is to provide a full basic income, but only to a small number of people. Randomized trials could be set up and run, where certain families in a given region would receive a basic income, and the program impact could be assessed by comparing to non-participating families.

In fact, an experiment similar to this was previously run in the US in the 60s and 70s”Š-“Šin various locations across the country (New Jersey cities; rural Iowa and North Carolina; Gary, Indiana; and Seattle and Denver), randomly-selected families were provided with a “negative income tax,” which gave substantial direct monetary support to those with low incomes.

The study showed some initial promising results, with increased school attendance rates and only a modest reduction in labor rates. Randomized trials are now being set up abroad in Finland to evaluate the effect of a universal basic income there. If more experiments were conducted in the United States, it could provide a much clearer picture of the full impact of enacting basic income here.

Although labeled as the second step on the path, implementing prototypes could actually happen in parallel to raising awareness amongst the public. These efforts could even be complementary”Š-“Šthe success of prototype programs would increase visibility and support for basic income. And in turn, greater support would make additional prototypes easier to enact. We need some very concrete examples of how basic income can work, though, before we’ll be ready for final step.

Step 3: Wait for Lightning to Strike

Let’s say we’ve reached a point where most people know about and support basic income, and there are prototype programs showing it working. Even then, given the current level of dysfunction in Washington, DC, it would still be extremely difficult to enact a federal version. That’s why the third step to implement an American basic income is to wait for the right moment.

In her book The Shock Doctrine, Naomi Klein describes how in times of crisis, people may be willing to accept big changes that normally would seem far too radical. While Klein’s focus is on the enactment of exploitative corporate policies, the same principle can apply to positive changes.

If automation continues to displace jobs as predicted in the coming years, there will be moments of extreme disruption to our economy. Grocery stores will lay off big parts of their workforce as cheap, automated stocking and checkout services become available. More automated restaurants like Eatsa will appear, which employ fewer service staff. Millions of jobs will be lost in the transportation industry to self-driving vehicles.

There are no doubts about it, the transportation industry, in particular, has already undergone some significant changes over the past few years. For example, thanks to developments in technology such as Titanwinds trucking dispatch software, it is now possible for fleet managers to plan routes in real-time to ship goods and control their fleets in the most efficient way. With this in mind, it is certainly intriguing to consider what else might be in store for the future of the trucking sector for instance.

As the magnitude of these disruptions becomes apparent, people will be knocked out of their normal routine and be willing to embrace a big change. At that moment, if we have public awareness and support, and if we’ve demonstrated the program’s effectiveness, people across the country can rally behind a clarion call to push past the gridlock in Washington”Š-“Šand we will have a real chance to enact an American basic income.

What’s Next?

The steps laid out above are not theoretical”Š-“Šmany of us are already working to achieve them.

Discussion groups and panels are being convened around the country in places like New York, Palo Alto, Washington, DC, and San Francisco. A new nonprofit organization, Basic Income Action, is pushing presidential candidates to engage on the issue.

People are crowdfunding their own basic income and using the money to support themselves as they write about the idea. An Oregon nonprofit is working to push for the enactment of Carbon Fee and Dividend there.

And on the weekend of November 13, the first-ever Basic Income Create-A-Thon was held in San jimpughFrancisco, where writers, artists, videographers, developers, musicians, and others came together to create content and media around the theme of basic income. More Create-A-Thons are now being planned across the country.

An American basic income is possible”Š-“Šand it’s up to us to make it happen.

Jim Pugh is the CEO of ShareProgress, a politically-progressive tech company offering tools for social sharing. He is the former CTO for Rebuild the Dream, and Director of Analytics for @BarackObama. He holds a PhD in Robotics from the Swiss Federal Institute of Technology in Lausanne.

WASHINGTON, DC, USA: Basic Income Action Launch Party, 17 September 2015, 7pm – 9pm

Join fellow D.C. Basic Income advocates for an evening of drinks and lively discussion about a universal income — where every American gets an unconditional grant of the same amount, no strings attached — featuring:

* Peter Barnes, author, With Liberty and Dividends for All
* Michelle Miller, co-founder, Coworker.org
* Ian Schlakman, BasicIncomeAction.org

The salon is sponsored by Demand Progress, Basic Income Action, and the Universal Income Project, and co-hosted by: David Segal, Dan O’Sullivan, Nicole Aro, Michelle Miller, Angelica Morales, Colin Holtz, Ian Schlakman

Event page here.

When:
September 17, 2015 at 7pm – 9pm
Where:
Prequel DC
918 F St NW
Washington DC, DC 20004
United States
Google map and directions
Contact:
Ian Schlakman
info@basicincomeaction.org
202-499-7384