In this article, written by David Floyd, the history of support of UBI is described from the period of hunter-gatherer societies and how the networks in those societies took care of people who could not provide themselves with a basic standard of living. The article then describes how agriculture and urbanization made an end to such networks and how problems were not handled well by the institutions that took the place of the original networks, referring to Charles Eastman who described this problem in 1915.
Thomas Paine was one of the famous people who noticed the creation of poverty, caused by cultivation, which did not exist before. He was the first to propose a UBI (Paine called it a “groundrent”) in the late 18th century, as a compensation for the dispossession of the majority of inhabitants of their natural inheritance. Cole first used the term Basic Income in 1953.
From Paine, via Henry George, Huey Long, G.D.H. Cole, Martin Luther King, Mc Govern and Nixon, the current boost of support for UBI in the 21st century is explained as a reaction to poverty and inequality, predominantly used as an argument by proponents on the left political spectrum, and inefficiency of the welfare state, used as an argument on the right wing.
In addition to the political perspective, a distinction between “reformers” and “futurists”, which cross-cuts left and right, is described in further depth.
The group of “reformers” is described as a group of basic income supporters who is mostly concerned with addressing problems in society as it is now, mostly caused by the broken welfare system, such as:
“Employment traps” (where people are kept form leaving their job out of fear and bad employers are supported as a result of that)
“Unemployment traps” (“earn a dollar from work, lose a dollar in benefits”)
“Welfare cliffs” (where the effect tax on additional income even exceeds 100%)
Stigma associated with public benefits
Bureaucratic inefficiency
The group of “futurists” is described as supporters who see technological unemployment as a main threat in the future and offer basic income as a solution or who see a basic income as a cornerstone of an eventual utopia.
The two main criticisms of a universal basic income are its cost and the expectation that it would reduce or eliminate incentives to work.
This discussion is described with calculations of “The Economist” and views of Bill Gates, Karl Widerquist, Guy Standing, Philippe van Parijs and others. Brief attention is given to Alaska’s “Permanent Fund Dividend” and the outcome of experiments, such as Manitoba and India. Furthermore, the definition of ‘work’ is discussed, the effects of UBI on poverty and even the experiments in Finland, Oakland and Ontario get attention.
Floyd summarizes his article with a question: “Could doing away with poverty, sweeping away patronizing bureaucracy, neutralizing the threat of mass unemployment and increasing the value society places on worthwhile, but unprofitable, pursuits really be as simple as handing everyone cash?” He then uses Confusius’ quote to guide us towards the answer:
Joe Huston, the CFO of GiveDirectly, speaks with the UBI Podcast about the largest basic income trial in history.
The trial is in its earliest stage and will expand later, giving entire communities a basic income in Kenya.
A 12-year basic income will be provided to 40 villages, 80 villages will receive basic income for 2 years. A lump-sum payment will be given to 80 villages. There will be 100 villages that will act as control groups.
One interesting takeaway is that Huston said they are already seeing some “spillover benefits.”
“I expect there will be spillover benefits. We kicked off in one pilot village, and already the surrounding villages have mentioned people are buying more services and goods,” Huston said.
When discussing pilot programs, the environmental impact of basic income is often overlooked. Huston said that GiveDirectly does not take a position on this, but he said developed countries should take the lead on the environment.
“My personal view is for these environmental goals you’d want to solve through other means, international treaties or the developed world stepping up, verses trying to slow down development of very very poor areas,” he said.
As the research begins to come out about basic income, Huston said he hopes it can inform the debate about how to best form the social safety net.
“I think evidence from the UBI study showing those who are just poor but receive money and put that toward investment that have big life-changing effects, I think that could change how social protection is done in those countries,” Huston said.
Previously, even after cash-transfer pilots end, Huston said that they continue to see positive effects.
“GiveDirectly’s first study measured effects up to a year after payments stopped…and you still saw pretty strong effects on earnings, assets, food security, reduction in stress levels,” Huston said.
Stress was measured through looking at cortisol levels, which saw significant declines after cash-transfers were administered, Huston said.
Once the 12-year study ends, Huston said he expects they will continue to follow up with these villages to see if there are permanent effects of basic income on these areas.
“We have the potential to end extreme poverty globally, many countries have the potential to end whatever they consider their national poverty line. And that potential…is extraordinarily exciting. It is a huge opportunity for our generation,” Huston said.
“Then the question is, ‘why wouldn’t we test this?'”
Delphine d’Amora from Mother Jones has offered a brief history of the idea of basic income, tracking its development from the 18th century to its current resurgence with prominent modern advocates, such as Belgian philosophy professor Philippe van Parijs, and various basic income experiments ongoing in a number of countries.
“After decades of obscurity, the idea is suddenly in fashion,” d’Amora notes, “Politicians around the world are interested and a handful of governments, such as Finland and the Canadian province of Ontario, are planning or considering basic-income pilot projects.”
The article is an in-depth, chronological history of basic income, starting with the 18th century, and including various manifestations of the idea, including negative income tax as described by American economist Milton Friedman in an embedded video.
The basic income movement is picking up momentum at an enormous rate, but even with past and present trials, many are still looking for further evidence of what would happen if a guaranteed income were provided over the long-term.
So we’re planning to run what will likely be the largest long-term pilot of a basic income ever, and we have got some of the world’s leading economists on board to perform a rigorous evaluation.
For years, GiveDirectly has been providing short-term cash transfers to the extreme poor and seeing positive results — people do not stop working or drink it away, they invest in bettering their lives. If this basic income pilot shows similarly positive results, it could open the door to governments around the world beginning to adopt policies like basic income.
But we need to move fast — the debate over basic income is happening now and people are shooting down the idea based on speculation. If we are going to provide evidence in time to effect this debate, we need to launch the pilot this year. We will guarantee thousands of individuals living in extreme poverty in East Africa a basic income for over ten years, but we will have results on impact — do people invest more, seek more education, become more creative? — within a year or two.
But to launch this year all of us need to chip in a small amount — we can make it happen for less than the price of a cup of coffee per day:
At best, we will break through the impasse of the basic income debate with evidence that shapes our economic futures; and at worst, we will provide life-changing aid to some of the poorest people on the planet.
We are teaming up with leading researcher Abhijit Banerjee from MIT and have calculated that we can run and study this pilot for $30 million, and we are willing to match the first $10 million donated. If just 5,000 people commit $1/day by this summer, we can make it happen.
This is the moment to launch this potentially historic pilot. Be a part and join now.
Sincerely,
Ian Bassin
At the home of Caroline Awino Odhiambo in Koga village on 22 October 2014. With the cash transfer from Give Directly, Caroline bought a cow, a sewing machine, put metal sheets on her roof, and paid school fees for two children in primary school. Caroline and her family in front of their house
At the home of Beatrice Achieng in Nduru Upper village. She used the cash transfer from Give Directly to dig a 30-foot borehole that now supplies her family with fresh water. She also build the foundation for a new house on her compound. Beatrice fetches water at the borehole.
At the home of recipient Rispa Atieno Okoyo in Koga village on 22 October 2014. Rispa used the cash to build this goat pen, she bought 2 cows, and planted maize and beans. Rispa with her children in front of their house.
At the home of recipient Gabriel Otieno Awoche in Koga village on 22 October 2014. Gabriel built a house and chicken coop with the cash. He also bought woodworking tools for his furniture workshop. Gabriel with his wife Lucy Adhiambo and their daughter Charlotte, 3. They also have another daughter, Mariam, age 1 1/2.
