Funding basic income through data mining

Funding basic income through data mining

Written by: Craig Rhodes

We are fast entering an era in which there’s going to be a chronic shortage of jobs for millions looking for employment. That trend is only going to accelerate. Everyone’s job is on the line now. If we don’t begin to address this problem, then we will suffer long-term consequences: mass unemployment and political alienation of millions because jobs are fast disappearing mainly due to automation.

My suggestion is strategic not tactical. The details can be worked out in committee negotiations.

Corporations are mining nearly every piece of online data that we as individuals produce and then selling it to the highest bidders including the NSA for hundreds of billions per year. To find out how to protect yourself from this visit websafetyadvice.com.
It’s an unregulated modern day gold rush happening under our very noses without notice. We as individuals should be compensated for our data in the same way that corporations are compensated for their data. Copyright law should protect us in the same way it protects corporations. Terms of Service Agreements should be outlawed. Copyright laws should be amended or rewritten.

There’s a reason Google and Facebook do not bill us. We’re not their consumers — we’re their product. The lion’s share of profits made by Google, Facebook, AT&T, Verizon, and scores of other corporations are from the data we produce. Facebook’s billion plus users are the largest unpaid workforce in history.

If a corporation profits from our data, whether it be browsing history, emails, buying habits, contact lists etc. then they should have to pay us for it just as we must pay for their movies, music, software and more. Such compensation might go a long way toward alleviating our chronic employment problems as well as help the working class who are losing jobs faster than any other demographic. It would not be welfare nor would it involve raising taxes. It would be payment for services rendered in the form of a subsistent guaranteed income similar to the Alaskan model.

Manufacturing jobs are not going to come back. And in time automation will begin to affect the professional class as well. Those who depended on such jobs should be dealt with or our nation is going to suffer catastrophic consequences.

This and many more initiatives should be included in a robust strategy. We must be bold.

About the author: Craig Rhodes is a retired art teacher after 34 yrs. Active in politics since an early age. Rhodes held elective office. Lifelong gardener, musician, environmentalist, avid reader of all subjects both non fiction and fiction, potter, portrait artist, and more. Rhodes is active on any number of social media including Facebook and have been surfing the internet since it first appeared on the scene as the Arpnet under DARPA.

VIDEO: Indian Statistical Institute Panel Discussion on Universal Basic Income

The Indian Statistical Institute hosted its 12th Annual Conference on Economic Growth and Development (ACEGD) on December 19-21, 2016. ACEGD’s plenary sessions included a 90-minute panel on universal basic income and its relevance for India.

Universal basic income (UBI) has become a hotly debated issue in India. At the end of January, the Ministry of Finance will release its Economic Survey, which is expected to include a chapter addressing UBI. Leading economists have defended various forms of UBI for India (see, for example, a recent e-symposium in Ideas for India), and MPs such as Varun Gandhi and Jay Panda have voiced support.

Perhaps unsurprisingly, then, a panel on UBI was also held as part of the latest Annual Conference on Economic Growth and Development, held in December at the Indian Statistical Institute (ISI) in Delhi. This conference included a panel on UBI, featuring five economists: Debraj Ray (New York University), Kalle (Karl Ove) Moene (University of Oslo), Rajiv Sethi (Columbia University), Himanshu (Jawaharlal Nehru University), and Amarjeet Sinha (Government of Bihar).

Ray and Moene have jointly developed a proposal for what they call a “universal basic share” (UBS) in India. Like a UBI, a UBS would provide each citizen with regular unconditional cash transfers of an equal amount. However, in contrast to most UBI proposals, a UBS fixes the amount of these transfers to a fraction of the GDP rather than a specific monetary amount. Ray and Moene recommend that India dedicate 12% of its GDP to the provision of a UBS. They calculate that, at present, this would provide each adult citizen with a basic income approximately equal to the country’s poverty line.  

At the ACEGD panel, Ray introduces the idea of UBS, after briefly outlining the present worldwide interest in UBI, precursors such as the Alaskan Permanent Fund and Dividend and the Government Pension Fund of Norway, and several sources of the present interest in UBI in India, including the pilot studies in Madhya Pradesh, the Goan permanent fund, and political and popular “exasperation” with the nation’s current subsidies for the poor. Following Ray, Moene elaborates upon the UBS proposal and some of its advantages, such as encouraging risk-taking and allowing individuals to do the work they want. Moene also replies to the common objection that a basic income would discourage work, stressing that this is not what is observed in the most generous welfare states, nor what’s observed when wealthy people receive an inheritance.

Sethi, who has studied UBI primarily in the US context, presents additional arguments in favor of the policy, including its cross-partisan appeal and its ability to mitigate economic shock due to automation. He also raises questions concerning the precise design of a UBI, such as whether the basic income should extend to minors and how it would be linked with macroeconomic policies.

The last two panelists, Himanshu and Sinha, argue that India should prioritize public spending on universal basic services, rather than simply distributing cash to individuals. About UBI, Himanshu states that the question is not whether it should be adopted, but why and when. While allowing that UBI is a good idea in principle, he maintains that it is not yet time to introduce such a policy in India, given that many in the country lack clean water, access to education, and other essential public goods. Sinha, expanding on Himanshu’s thesis, stresses that “we should not lose sight of the need to craft credible public systems” — and worries that a UBI would divert money and attention from necessary improvements of education, health, housing, and public infrastructure.

 

Video, Part 1: Ray, Moene, Sethi

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Video, Part 2: Sethi (cont’d), Himanshu, Sinha

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The five presentations were followed by a 30-minute Q&A session, touching on such topics as private versus public provision of services (which Ray eventually describes as a distraction from the real issues), immigration and basic income, UBI versus UBS during economic downturns, and others.

 

Video: Q&A

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Reviewed by Danny Pearlberg

Photo: Delhi, India CC BY 2.0 Ville Miettinen

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.”

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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

GOA, INDIA: Citizen’s Dividend promoters find support in Archbishop’s address

GOA, INDIA: Citizen’s Dividend promoters find support in Archbishop’s address

Archbishop Filippe Neri Ferrao, delivered a Christmas address in which he stressed that the Earth’s natural resources rightfully belong to all of the Earth’s children, including future generations, shared equally.

The Goenchi Mati Movement (GMM) advocates for the reform of mining practices in the Indian state of Goa. At part of these reforms, the group endorses a type of basic income: a citizen’s dividend financed by returns on money made from the sale of iron ore and other minerals (similar to the model of the Alaska Permanent Fund and Dividend, from which GMM draws inspiration). According to GMM, the minerals of Goa are rightfully owned in common by all of the state’s residents and their progeny; thus, any monetary gain from these minerals should be invested for the sake of future generations, and earnings on these investments should be distributed equally among all Goans.   

In December, GMM was delighted to hear the Archbishop of Goa and Daman, Rev. Filippe Neri Ferrao, express similar sentiments in his annual Christmas address, while explicitly discussing Goa’s controversial mining practices. In the latter half of the address, while speaking about the duties of civil government, Rev. Ferrao stated:  

Our beloved Pope Francis says: “The earth is essentially a shared inheritance, whose fruits are meant to benefit everyone.” He further says: “Each community can take from the bounty of the earth whatever it needs for subsistence, but it also has the duty to protect the earth and to ensure its fruitfulness for the coming generations.” The Pope is referring to the principle of inter-generational equity, which the Supreme Court of India has made into a law to be followed in the Goa mining case that it heard in 2012-14.

We are trustees of our land holdings. It is our solemn duty to ensure that the value of the land is passed on to our children and future generations. Only then may we enjoy the fruits, shared equally. All generations and all within a generation would benefit equally. This would truly embody the central message of most religions, “treat others as you would want to be treated yourself.”

But what we see is an extensive environmental and social damage to Goa, which has generated rampant corruption and even weakened governance. It has been an assault on our community and on our natural wealth. More distressingly, it has been a loss to our children and to our future generations. Are we not answerable to them? Or are they going to remember us as an irresponsible generation that has squandered natural wealth for the benefit of a few?

In a subsequent press release, GMM announced, “The Goenchi Mati Movement welcomes the statement of the Archbishop at the recent Annual Civic Reception endorsing the idea of intergenerational equity in mining. As was rightly pointed out, minerals are a shared inheritance. And the existing system is leading to enormous corruption and mis-governance.”

With state elections to take place on February 4, 2017, GMM is encouraging Goans to only vote for candidates who support its call for a permanent fund and citizen’s dividend, as well as the rest of its Manifesto.

 

Read more:

Archbishop Filippe Neri Ferrao’s Civil Reception Speech.

Shweta Kamat, “Goenchi Mati movement gets boost after Archbishop’s ‘down to earth’ speech,” Goa Herald, December 30, 2016.

Kate McFarland, “GOA, INDIA: Mining reform group releases Manifesto, calls for citizen’s dividend,” Basic Income News, November 24, 2016.


Reviewed by Genevieve Shanahan 

Cover photo CC BY-NC-ND 2.0 Eustaquio Santimano

BIEN Stories: Michael Howard

BIEN Stories: Michael Howard

Michael Howard (Coordinator of US Basic Income Guarantee Network)

I can remember the moment when I first took a keen interest in basic income. I was familiar with the idea, having spent a research leave at the European University Institute in Fiesole, when Philippe Van Parijs was there writing Real Freedom for All. We had some casual conversations, but I failed to appreciate the radical implications of basic income, until some months later, when I happened to read one of Philippe’s essays, in a collection on social class edited by E.O. Wright.

My work up to that point was focused on market socialism and worker self-management, and, more generally, just and feasible alternatives to capitalism. I thought that the way to address the democratic deficits and inequalities of capitalism, without abandoning its efficiencies, was to convert capitalist enterprises into worker-managed firms operating in a market economy, and also to democratize investment decisions through a system of public banks.

When I read Philippe’s essay, I realized that the model of work I was presupposing, where workers work full-time over many years for a single enterprise, was disappearing. Philippe observed that many in our generation were finding themselves in and out of paid employment, working part-time, or in temporary positions, relying on fellowships, increasingly finding themselves in a precarious position regarding income and work. I invited Philippe to my campus for a series of talks, and to discuss my work.

I attended my first BIEN congress in Amsterdam. In some ways it was my favorite. While I would not wish BIEN to return to an attendance level where everyone meets for the whole conference in the same room, it was great to be able to have one continuous conversation with everyone, and enough break time for serious one-on-one conversations on the side.

In the book I subsequently published, Self-Management and the Crisis of Socialism, I incorporated a basic income into the model of socialism I was defending. After the book, my focus shifted from market socialism and cooperatives to basic income, and I became a regular contributor to conferences on basic income.

I had the good fortune to spend a semester as a Hoover Fellow at the Catholic University in Louvain-la-Neuve. I worked with Karl Widerquist to edit two books on Alaska’s Permanent Fund Dividend. When the US Basic Income Guarantee Network needed a coordinator to take over from Karl in 2008, I was willing, and have been doing the job ever since.

It has been a pleasure and inspiration to work with the dedicated scholars and activists in USBIG and BIEN. During these roughly 25 years, I have seen basic income move from a novel idea, under discussion by academics and a few visionary activists in response to unprecedented changes in our world, to a policy idea being tested in South Africa, Brazil, the Netherlands, Finland, Switzerland, India, and Canada, and on the radar of mainstream policy makers in the US like Robert Reich and even President Obama. The growth of interest threatens to outpace the capacity of our organizations. USBIG, for example, is just now becoming incorporated, has relied on voluntary labor, and has operated without a budget since its beginning.

But BIEN, USBIG, and other organizations are gearing up to meet the rising interest and the important and difficult policy challenges and decisions that lie ahead. Despite recent turns toward the right in politics, I am confident that our best times lie ahead. Xenophobia and neoliberal austerity cannot solve the climate crisis, the disruptions created by the current wave of automation, persistent global poverty, and stagnating economies. Once the false promises of right wing populism are exposed, there will be an opening for new solutions, and basic income is likely to be an essential part of the mix. I look forward to rolling up my sleeves and working with my comrades in BIEN during these very interesting times.


At the end of 2016, the year in which BIEN celebrated the 30th anniversary of its birth, all Life Members were invited to reflect on their own personal journeys with the organization. See other contributions to the feature edition here.