Unconditional minimum income as primary income

Unconditional minimum income as primary income

By: Andrea Fumagalli

Introduction: the minimum income

In Italy, the debate surrounding basic income has been ongoing for almost 20 years. It began, in fact, with the August 1997 publication online (on the site ecn.org) of my pamphlet entitled “Ten theses on citizenship income”. The pamphlet saw successful underground circulation, and was re-edited into the book “Tute Bianche[1]. The pamphlet presents a survey of the Italian debate around the introduction of a basic income, a proposal that had begun to circulate in the neo-workerist environments of the previous 2 years[2].

Twenty years later, it should be acknowledged that the definition of “citizenship income” has created more negative effects than positive: at that time, although starting to increase, the phenomenon of migration had not yet assumed today’s proportions. The term “citizenship” was used without considering the concept of “citizenship” in a way that was not terribly ambiguous. In fact, it could then be used as part of an ethical and philosophical framework for designating that every human being is born already a “world citizen”, regardless of nationality. But increasingly today, the concept of citizenship has to do with the legal-national sphere and then with a grid of limited rights ius soli, and is not extended to those who were born outside a nation’s borders. From this perspective, the idea of ​​a “citizen’s income” can only be misunderstood as a proposal limited to specific nationalities, in contradiction with what is our idea of a ​​”right to income”. The term “basic income” appears therefore more appropriate and inclusive.

There are now many examples of proposed basic income legislation, in Italy and abroad; policy initiatives and declarations in favor of the introduction of some form of income support independent of employment status.

And just as numerous, and well differentiated, are the various interpretations of such a measure. In the cultural political debate promoted by Bin-Italy[3], which for years has promoted a cultural and socio-political campaign aimed at introducing a guaranteed minimum income (basic income), it is necessary to define certain parameters, to reduce the interpretive confusion that has now reached a critical level that makes unclear what actually a “citizen’s income”, “minimum income” or “a dignity income” are (to use the most common names).

To actually talk about “basic minimum income” (we use this term in a broad sense and provisionally), we believe that at least 5 criteria have to be met:

  1. Individuality: the minimum income must be paid at the individual level and not at the level of the family. Following this, there can then be a discussion as to whether children under 18 years of age will have the right or not.
  2. Residence: the minimum wage must be paid to all people who, residing in a given territory, live, rejoice, suffer and participate in production and social cooperation regardless of their marital status, gender, ethnicity, religious belief, etc.
  3. Maximum extension of unconditionality: the minimum income must be provided by minimizing any form of compensation and/or obligation and be as free an individual choice as possible.
  4. Access: the minimum income is paid in its initial phase of experimentation to all who have an income below a certain threshold. This threshold may, however, be greater than the relative poverty line and converge toward the median level of the personal distribution of existing income. Moreover, this level of income must be expressed in relative terms, not absolute, so that increasing the minimum threshold (as a result of the initial introduction of the measure) the range of beneficiaries will increase continuously until it hasrisen to graded levels of universality.
  5. Funding and transparency: the modalities of financing the minimum income must always be set out on the basis of economic viability studies, detailing where resources are obtained based on an estimate of cost when necessary. These resources have to fall on general taxation and not on other assets of origin (such as, for example, social security contributions, sale of public assets, privatization proceeds, etc.).

The criteria 1, 2, 5 should not be amendable, while criteria 3 and 4, are expressed in relative terms, may be subject to additional definitions depending on the context, but within the principle directives we have just outlined.

When basic income is the primary income it is therefore unconditional

That basic income is good and necessary, is a claim inspired by the composition of labor and the modalities of accumulation and exploitation which are today dominate.

In this regard, it is necessary to propose a cultural leap before political steps are taken, and to affirm that Basic Income is a primary distribution variable: the basic income must intervene, in fact, directly in the income distribution of productive factors: such as salary, which remunerates certified labor time as such, or profit, that rewards the business entity or rent, which derives from a property right. Being a primary distribution variable means that it is not a re-distributive variable:  it directly occurs at the level of the balance of power and social relations within a certain process of accumulation. Despite this, a redistribution of income, which occurs at a later stage, is the outcome of a second level of indirect distribution, an extra market level, thanks to appropriate discretionary economic policies.

If a basic income is remuneration, the question that naturally follows is what it is that it pays. To answer, it is necessary first to analyze what in contemporary capitalism the main sources of exploitation/valorization are. More and more studies and case studies confirm that today life itself, in every daily event, is the productive factor par excellence.[4] If we take into account the many acts of daily life that characterize our existence, they can be categorized into four types: labor, work, leisure, entertainment. More and more today no only labor is to be the basis of added value but also the time spent in creation (opus/work), the otium/leisure time, and entertainment time: all are included in a growing and continuous enhancement mechanism. The classic dichotomy of the Fordist paradigm between labor and non-labor time, between production and consumption, between production and reproduction are now partially obsolete. It is the result of a historic process of structural changes in manufacturing processes and labor organization, which marked the transition from a material Fordist capitalism to a bio-cognitive and financialized capitalism.

Today, wealth production derives, at the same time, from absolute surplus value and relative surplus value extraction, where for absolute surplus value there is intended a sort of primitive accumulation, in capitalist organization based on capital employment and on private property. The result is the change of the relationship between productive and unproductive labor. What in the material Fordist capitalism was considered unproductive (i.e. no production of surplus value and therefore not remunerable), has now become productive, while the remuneration remained anchored to that of Fordist era (the crisis of salarization, for example). As a result, we are facing new kinds of valorization such as “dispossesion” (Harvey[5]) and “extraction”, to which no remuneration is applied, according to the dominant rules (legal, industrial relations, uses and so on).

It is no coincidence that unpaid labor is sharply increasing, as it is from those sectors that more has been invested by the transformation of enhancement methods and the adoption of the new linguistic-communicative technological paradigms (new cognitve-relational activities).

Against this background, one proposal could be advanced to counter this phenomenon of unpaid labor (i.e., basically “slavery” with another name, even though for most it is not perceived as such) is to proceed with its salarization. But, we might ask: is this possible? If the answer is yes, no longer necessary is a basic income.

The vagueness of labor time

This question opens a second theoretical problem –  political and, at the same time, methodological. When technological and organizational transformations favor the spread of increasingly intangible productions with a high degree of non-measurability, when value is created by a whole range of life activities, from learning processes, to social reproduction[6] and networks of relationships, there arises the problem of “measure.”

The theme of measure is linked to the calculation/quantification of labor productivity. Unlike in the past, where this calculation was possible because employee labor activity could be measured in hours and by an equally measurable amount of production on an individual basis, productivity today has changed shape: it depends on the increasing use of new forms of scale economies: learning and network economies). These are scale economies no longer static but dynamic, because it is the flow (continuously) of time that allows for growth and learning of social skills as well as social reproduction and thus increased productivity, whose effects can be seen no more on individual basis but on the social one. Both learning and networking, in fact, need a social context and social cooperation. Productivity in bio-cognitive capitalism is therefore primarily social productivity or, with reference to the role of knowledge, general intellect.

Learning economies are based on the generation and dissemination of knowledge. Knowledge is not a scarce resource, such as material goods, but abundant: the more you swap, the more it spreads, the more it grows, a highly productive cumulative mechanism: cumulativeness requires relationships and social networks. Learning and networking are two sides of the same coin: if knowledge is not spread through relationships, individual processes are not economically productive. Only if you develop social cooperation and general intellect do you become productive.

We’re not talking about the traditional sense of the term co-operation, that is, “join forces” but co-operation, namely the interaction of individual operations that only achieve synergy in the common processes of accumulation and thus of surplus value creation. These relational activities often hide forms of hierarchy and exploitation, whose value is difficult to measure, not only on individual bases but collective ones, too. If the traditional factory productivity was based on precise technical mechanisms that allow you to measure individual productivity in the labor places today, the productivity of social cooperation cannot be measured in terms of individual productivity.

Not just individual productivity but also the same product of social cooperation is not measurable. When you are producing symbols, languages, ideas, forms of communication, social control, what kind of measurement we can take? Every relationship between output value, its production time (measured in hours) and its remuneration (measured in wages) becomes almost impossible or very difficult and subjective.

The crisis of the labor theory of value derives from the fact that not only the individual contribution today is not measurable but also the output tends to escape a unit of measurement, the more the more the production tends to become immaterial. And this takes place in a context in which the measure of value is no longer constrained by a scarcity factor. As was pointed out earlier, learning (knowledge) and network (space) are as abundant, and theoretically unlimited (especially if we consider the virtual space), as human nature. A theory of value based on the principle of scarcity, such as the one implicit in the theory of free market founded on the law of supply and demand, today has no longer any economic and social relevance. It is only artificially perpetuated in market dynamics where are continuously defined by power relationships. Paradoxically, the only theory of value that appears adequate to contemporary bio-cognitive capitalism, the labor theory of value, is not able to provide any measure.

How measure social cooperation and general intellect?

One possible aspect to consider has to do with the sphere of financialization: the pervasive and central role of financial markets, such as investment financing tools, privatization of social welfare and the partial compensation of knowledge labor, has affected not only the sphere of realization but also that of production. In capital gains, the speculative activity partially derives from the value produced by the cognitive-relational living labor. It is in financial markets that we can roughly see the implementation of the process of expropriation of social cooperation and of general intellect.

This process is not immediate and direct. It is often handled by the dominant bio-power management and the hierarchical relationships that continually redefine the property structure and market structure.

From this point of view, basic income, as a primary income, becomes even more a tool of direct re-appropriation of the wealth that is generated by the common life time put to labor.

The inadequacy of wages: body and mind

The order of discourse leads us to say that the traditional salary structure is no longer adequate, it does not fully capture the transformations in the valorization process. The classic wage structure can still be useful in those parts of the overall production cycle in which there is a measure of the value of labor in terms of time. But it cannot be generalized. From a theoretical point of view, this issue leads to the need to review, rethink and redefine the Marxian labor theory of value.

The inadequacy of the wage form as remuneration for all the productive aspects of life, leads to say that we need another way of remuneration (in addition to the wage forms where these are measurable). From this point of view, a basic income is something structurally different from a salary (though potentially, in the future, convergent): it cannot simply be understood as an extension of the wage form, because it is necessary to take into account the quantitative and qualitative change that new technologies have generated.

In particular, I’d like to stress the relationship between human and machine.

In the sixties, the relationship between human beings (with his body, his nerves, his muscles, his brain, his heart, his eros) and the machine was a relationship between separate domains: on the one hand, the human being, living labor, on the other hand, the machine, dead labor. The relationship between life and death was clear, physically traceable. From the point of view of human inner, the machine was something external and tangible, separate from himself.

Since the nineties to the present, such a separation is no longer so clear. The machine loses some of its materiality: the old Tayloristic machine becomes increasingly linguistic and relational. In presence of linguistic-communication technologies (ICT), only the support is material (hardware) but the core depends more and more on cognitive-relational human faculties processes. The use of language as the main tool of the operation changes the relationship of interdependence between human and machine typical of Taylorist technologies.

What kind of direction does this hybrid between man and machine take? And is it ‘the machine that is humanized or rather the human becoming mechanical?’ Are we witnessing the becoming human of the machine, or rather the becoming machine of humans? That’s the challenge of bio-robotics.

Consider the web 2.0 and the recent spread of social media. “The profit of advertising agencies, just like the profit of all firms web 2.0, [is] almost entirely depend on the ability to develop [and] control technologies.” Social control is then presented as the only way to innovate, develop in the future. But what is checked, exactly, today? Our identities and how they change. “The profiling algorithms of digital technologies feed on human biodiversity that it is itself channeled and integrated “in a Panopticon space, completely transparent, where we are called to act publicly.” See Google Pagerank, for instance.

Control of the body-mind becomes today (in agreement with the unpaid labor) the new enhancement border. Even if such activities could be salarized or simply paid otherwise (which is not the case), our freedom of choice would be conditioned.

An unconditional basic income is also a tool not only to recognize that our life is an active part (though often not aware) of contemporary exploitation but also able to exercise the right of choice, that is towards an individual and social self-determination: the right to choose our destiny as far as social participation is concerned, and also the right to refuse bad and indecent labor conditions. And this cannot be allowed, otherwise there is the risk of breaking the fragile balance of social control and supine conditions of subordination. From this point of view an unconditional income is subversive and that is the political struggle.

Andrea Fumagalli

(Università di Pavia – BIN Italia)

Andrea Fumagalli note for the conference: “Future of Work” Zurich 4 May 2016

Notes:

[1] A. Fumagalli, M. Lazzarato (eds), Tute Bianche, Derive-Approdi, Roma, 1999

[2] M. Bascetta, G. Bronzini (eds), La democrazia del reddito universale, Manifestolibri, 1997. Il tema di un reddito sganciato dal lavoro, etichettato con il termine salario sociale era già stato patrimonio del dibattito degli anni Settanta a parte dalla formulazione del rifiuto del lavoro (salariato).

[3] See www.bin-italy.org

[4] A. Fumagalli, C. Morini, “Life put to work: towards a theory of life-value”, in Ephemera, vol. 10, 2011, p. 234-252

[5] D. Harvey, “The new imperialism. The accumulation by dispossession”, in Socialist Register, 2004

[6] C. Morini, “Riproduzione sociale” in C. Morini, P. Vignola (eds), Piccola Enciclopedia Precaria, Milano X, Milano, 2015

 

Reviewed by Cameron McLeod

PORTUGAL: NGO network organizes event focused on basic income

PORTUGAL: NGO network organizes event focused on basic income

Event room at Coolabora. Credit to: Graça Rojão.

 

On the 25th of March 2017, a meeting of the Fórum Cidadania & Território (link) took place in Covilhã, a mountain city in Serra da Estrela, Portugal. This regular gathering of individuals and institutions was at Coolabora, a local non-governmental organization (NGO), and apart from particular issues related to citizenship and territory, it was also dedicated to presenting and discussing basic income.

 

Fórum Cidadania & Território is a formal network of NGO’s and individuals concerned with social issues, development and non-discrimination in Portugal. Hence it represents a larger universe of activity than the strict number of people attending these meetings allows for. In this 14th meeting, organized and hosted by Coolabora, activists promoting basic income in Portugal were invited, in this case André Barata, André Coelho and Pedro Ferrão.

 

André Barata presented basic income as a natural outgrowth of social democracy, nowadays very much torn apart and distorted. According to him, basic income is justified not so much because automation in upon us, but mainly as a right of citizenship. Countless generations of human beings have created everything upon which we live today, and so a basic income is a way for every person to get a fair share of that heritage. André Coelho exhibited a few slides to explain how a basic income could be financed in Portugal, referring to a study offered by Miguel Horta. He also reviewed what he considers to be the advantages of basic income, over our current social welfare systems. Paulo Ferrão spoke of the next BIEN Congress, taking place in Lisbon, and called for participation in the basic income week taking place while the Congress is ongoing (25th through 27th of September, 2017).

 

After these points, the debate was opened to the audience, who took the opportunity to pose questions and discuss the traditional arguments against basic income (e.g.: disincentive to work, difficulty in paying for a basic income).

The ‘people’s dividend’: A universal income proposal with real numbers

The ‘people’s dividend’: A universal income proposal with real numbers

Written by: Thomas Clarkson

This opinion solely represents the view of the author and is not necessarily the view of Basic Income News or BIEN. BI News does not endorse any particular petition or policy.

A Problem

One of the difficulties in talking about universal income is that the arguments lack punch because we discuss them in the abstract. The “People’s Dividend” (PD) petition on Change.org tries to correct that problem by asking people to sign a petition and call Congress to take action. The PD petition is different because it uses real numbers:

  • $27 trillion, the personal net worth of the one percent wealthiest (PNW1). Naturally, high net worth individuals have very different needs to low-income individuals which is why insurers like Jeff Bernard might be better equipped to assist them when it comes to insurance.
  • $1.5 trillion per year, the annual growth of the personal net worth of that same one percent
  • $4,500 per person, if the $1.5 trillion was re-distributed to all 333 million people in the U.S.

The PD petition proposes that the IRS annually harvest the growth of the wealth of the one percent and distribute it every year to every adult and child in the U.S. without conditions. It also urges people to take two specific actions to make that happen: 1) sign the petition and 2) call Congress.

Please Sign the Petition

If you read the petition first, or watch the video that introduces it, you will have a sufficient background for this article. Here is a link for the People’s Dividend Petition. Feel free to sign the petition while you are there.

Fun with Numbers

Before we go into the details of the proposal, it may be enlightening to compare some of the numbers given above to other things.

$27 trillion (PNW1) is:

  • about 686 percent of the Federal Budget ($3.9 trillion)
  • about 136 percent of the federal debt ($19.8 trillion)
  • about 143 percent of GDP ($18.9 trillion)
  • $81,000 per person in the U.S.

$1.5 trillion (the annual growth of PNW1) is:

  • 38 percent of the Federal Budget ($3.9 trillion)
  • 256 percent of the U.S. Defense budget ($585 billion)
  • 253 percent of the annual Federal deficit ($592 billion)
  • $4,500 per person in the U.S.

$4,500 per person is:

  • one-third of the poverty level for 1 person, which is $11,880
  • $18,000 or three-fourths of the poverty level for a family of 4 persons, which is $24,300
  • one-seventh of the median wage for workers in the U.S.
  • $450 million of added income for the population of Flint, MI, a city of 100,000 people
  • $3 billion of added income for the population of Washington, DC, a city of 675,000 people
  • $36 million of added income to the 8,000 homeless people in Washington, D.C., which is equal to one-third of Washington, D.C.’s 2017 affordable housing budget of $100 million
Are These Numbers Reliable?

The Forbes list of U.S. billionaires, as of March 21, 2017, identified 565 U.S. billionaires with a combined net worth of $2.8 trillion. This contradicts the established fact that “the personal net worth of the one percent wealthiest (PNW1) is actually $27 trillion. A lot of what is written in the popular press about wealth and income grossly understates PNW1. Fortunately, the World Wealth and Income database (located here) is pulling back the covers on this issue. WID.world has authoritative statistics on wealth and income going back 100 years. That is where the data that supports the People’s Dividend came from. Online access to the WID.world database has been available since 2011. However, economists have been laboring on it for thirty years or more and they deserve great credit for their results. This resource makes it possible for a non-economist like me to grasp wealth inequality trends.

With WID.world data, we can avoid erroneously limiting the wealthiest one percent of U.S. citizens to those found on the Forbes billionaires list. For example, an extrapolation of WID.world data from 2013 to 2017, indicates that the one percent includes all households with over $5 million in net worth. There are about 1,670,000 such households. I estimate that their total wealth in 2017 is $27 trillion, with an annual increase of $1.5 trillion projected. The important result that follows from getting the numbers right is that the size of the People’s Dividend payment gets large enough for people to notice. $4,500 per person is significant. That is the result when you divide the growth of $1.5 trillion by the entire U.S. population. The proposal takes data seriously and the petition includes a link, also given here, to all of my calculations and sources here.

Making It Real

Because the People’s Dividend idea is formulated as an actionable petition with known dollar results for individuals, it makes the numbers behind the universal income/wealth inequality discussion more real. For example, a person knows that their payment would be $4,500, with 99 percent paying no wealth tax. They also know whether their household net worth is above $5 million and, therefore, they know if they are in the 99%.

It is also immediately apparent to many that $27 trillion is simply too much money for one percent of the population to have when 50 percent of the population has so little. For those less easily convinced that that is too much inequity, consider the fact that the one percent’s share of total U.S. wealth has grown from 25 percent in 1982 to 40 percent in 2017. If the one percent’s share keeps growing one point every 2.3 years, then in 23 years it will grow 10 more points to 50 percent of total U.S. wealth. By 2040, the one percent would have as much wealth, 50 percent, as everyone else in the U.S. put together. I think, at that amount, almost everyone would agree that would be much too much.

The purpose of asking people to sign the petition and contact their one Congressional Representative and their two Senators is to encourage them to think about this data, and, in the process, have it become more real for them.

High Points of the People’s Dividend

The $4,500 PD Payment

  1. The $4,500 per person goes to everyone in the U.S., but only households with PNW greater than $5 million pay the tax. A household of 2 people worth $5.1 million would pay $7,800 and receive $9,000. This means that slightly more than 99 percent of the people would be better off financially. This should make it easier to get a majority of voters in favor of PD.
  2. The PD goes on year after year.
  3. The $4,500 is tax-free, so a dollar of the People’s Dividend is worth more to people who pay income taxes than a dollar of ordinary income.
  4. $4,500 is equal to about one-third of the poverty level for 1 person, which is $11,880. However, for a family of 4, $18,000 in PD payments is about three-quarters of the poverty level for a family of 4 persons, which is $24,300. Therefore, it would be a significant poverty fighter.
  5. The PD potentially adds a big boost to local economies. In Washington, DC, for example, a city of 675,000, the total PD payments to the population would equal $3 billion per year. This is equal to about 24 percent of the city’s 2017 budget of $13.8 billion.
  6. The PD is paid to everyone, including the one percent. Therefore, no apparatus for measuring need is needed, and virtually all the $1.5 trillion collected can go to the people.
  7. The PD would be paid out monthly like a social security check to provide a steady flow of income year around.
  8. The PD amount would vary up or down, depending on how fast the PNW1 is growing or decreasing, as it might if stock markets decline. Therefore, the PD amount is not guaranteed to be the same from year to year. This feature helps avoid deficit spending because the PD is always equal to the amount of wealth tax collected. To smooth the change in the PD amounts from year to year a moving average of collections might be used.

Alaska’s permanent fund dividend in 2016 was $1,022 per person. The PD would be more than four times that. See here.

The Wealth Tax

  1. The wealth tax is calculated so that it is equal to the year to year growth in the PNW1, estimated to be $1.5 trillion. Therefore, it represents the increase in PNW1 after the one percent has spent all they want to and paid all their taxes.
  2. The intention is to keep the wealth tax equal to the growth so that the amount of wealth does not decrease and kill the goose (PNW1) that lays the golden egg (PD).
  3. A good part of PNW1 is composed of stocks and bonds whose value can decrease in a market slump. If that happens, then the wealth tax rate would be reduced for a few years, but not eliminated, in order to allow the wealth to recover. You can see from the green and orange chart in the video that the 2008 recession caused everyone’s PNW to decrease. However, by 2013, everyone except the 50 percent least wealthy had recovered.
  4. The wealth tax applies only to every dollar over the household wealth threshold necessary to be part of the one percent. This is $5 million in 2017. A household with PNW of $5,000,001 would pay 7.8 cents in wealth tax. A household with PNW of $6,000,000 would pay $78,000 tax on the $1,000,000 of wealth over and above $5,000,000.
  5. The $5 million threshold amounts to about $500 billion leaving only $1 trillion to tax. The $1 trillion is taxed at 7.8 percent but the overall tax is 5.5 percent of PNW1. PNW1 grows on average 5.5 percent a year so the tax is equal to the growth.
The Amount of PNW1

 

  1. It is better to tax wealth than income because only “realized” income counts for income taxes, but increase in asset values results in increased wealth tax revenues whether the gain is “realized” through a sale or not.
  2. Capital gains are taxed at a lower rate when it comes to income taxes. Consequently, a lot of big earners take their compensation in the form of shares of stock. In this way, they reduce their income taxes, but a wealth tax would neutralize this tax avoidance strategy.
  3. The PNW1 amount is a comprehensive measure of the wealth inequality and considers: the effects of all other tax laws; economic forces, such as automation and globalization that reduce the share of profits going to labor; changes in government expenditures for health care and other social programs; right to work laws that weaken labor’s position; and all of the other factors that increase or reduce the concentration of wealth in the one percent. As such, it is an easy litmus test for inequality and a measure we should all watch carefully.
  4. Because the WID.world data only went until 2013, I estimated the 2017 amounts using the historical compounded growth rate of 5.5 percent.
  5. But it should not be necessary to estimate wealth amounts. Therefore, an important feature of the PD petition is that it would direct the U.S. Treasury to collect wealth data promptly and directly from banks, brokerage services and other wealth depositories, so that the public could see the PNW1 amount and other wealth distribution amounts shortly after the end of the calendar year.
  6. The petition requests Congress to appropriate extra money to the Treasury to create a wealth reporting system and a reliable means to track down wealth hidden in various tax havens.
  7. Not mentioned in the petition, but a necessary addition, would be for Congress to provide funds to Treasury to negotiate tax treaties with other countries to prevent other countries from giving our one percent a better tax deal than the U.S. This is necessary to prevent all of our “one percenters” from fleeing to other countries to avoid the wealth tax.
  8. By taxing personal wealth, the PD proposal avoids interfering in the taxation of corporations. If they become more profitable, then the shares owned by the one percent increase in value and the wealth tax harvests more.
Obstacles

There are several possible obstacles that might undermine a campaign for getting this petition signed. First, the ideas of universal income and the magnitude of wealth inequality are not well-known by the general public. Second, it might seem too “pie in the sky”, at least initially. Third, many might buy into the common belief that any “giveaway” will ruin the moral fiber of the country and encourage laziness. I am convinced, however, that with enough support, especially from individuals widely admired and trusted such as the Pope, Oprah or Bono, momentum could be achieved. Anyone reading this article with good ideas for getting people on board, please contact me at toclarkson@gmail.com.

Please Sign the Petition

Meanwhile, be sure to sign the petition, if you agree with it, and get one or two others to do the same – People’s Dividend Petition. Once people realize that they have skin in this game and that change is possible we may see some of these proposals become a reality.

BitNation: Recent Advances in Cryptocurrency See Basic Income Tested

Johan Nygren, a basic income activist, is currently exploring if basic income can be implemented using cryptocurrency. Cryptocurrency are digital currencies whose value and number of units are regulated by encryption techniques, outside of any central banking system. Understandably, not everyone is going to have a clear idea as to what cryptocurrency is all about, but this is why sites like cryptoexchangespy.com exist. Doing a bit of research is better than doing none at all, especially when it comes to something as interesting digital currency.

If this is something that you are interested in then you can find out how to buy cryptocurrency here.

You might also have heard about Ethereum. Put simply, Ethereum is a global, decentralized platform for money and other applications. Using Ethereum – a block chain network – you can write code that controls money, and build applications accessible anywhere in the world.

Currently, cryptocurrencies can be used as a means of payment in various spheres. Additionally, freelancers who work in digital industries also accept cryptocurrency as a means of payment. If you’d like find out more information about becoming or hiring ethereum freelancers, the Freelance For Coins is a useful resource that can put you into contact with freelancers where you are.

A cryptocurrency-based basic income will be funded with taxes grown within a peer-to-peer (P2P) network. P2P is an architecture for building computer networks that’s focus is on equality and sharing among peers, each user consuming and supplying information to the network. Nygren’s experiment aims to use decentralized ‘swarms’ of users to distribute a basic income through what Nygren calls ‘dividend pathways’.

A dividend pathway is “the world’s first peer-to-peer financial security,” where every transaction opens up a pathway, to a global network of connected users. RES, Nygren’s crypto-currency, is then shared through a branching scheme with all who are connected to the pathways – those on the BitNation network. The branching scheme is analogous to our network of veins, pumping information instead of blood. With the growing interest in cryptocurrency continuing, this type of scheme will give more opportunities to businesses who wish to use cryptocurrency to pay employees. Business owners can check out these Interesting Bitcoin Statistics in 2020 to not only learn more about all available digital currencies but how they compare against bitcoin, before testing this new P2P model.

This model tests whether a network can electronically divert income to users, in this case using a small tax levied on financial purchases and exchanges made over a system called BitNation; the process is called Swarm Redistribution. Nygren writes that “the whole experiment is public, transparent, auditable, [and] includes a close-down switch in case a bug is discovered.”

BitNation, a Decentralized Borderless Voluntary Nation (DBVN), provides public services to its naturalized citizens. As a virtual jurisdiction, the main difference from traditional governments is voluntary allegiance to its constitution – membership is open to anyone and involvement limited only by the user. As a blockchain-based structure, government activities are transparent. Its mission, according to founder Susanne Tarkowski Tempelhof, is to “get rid of geographical apartheid” and offer “better and cheaper governance services.”

Nygren’s swarm redistribution theory assumes that ongoing transactions with the crypto-currency RES will infuse BitNation’s cybereconomy with a branchwork (think the blood analogy) of paid-forward value additions. This would mean extracting essentially a value-added tax (VAT) along the way and pooling a coffer for the basic incomes’ distribution. The model theorizes that growth is incentivized by the desire for personal return and altruism, or a desire to contribute to social resilience (more information can be found here).

BitNation’s current population of nearly five thousand users with roughly fifty thousand daily transactions involving the cryptocurrency ETH could eventually provide the structure for a basic income for its users.

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ITALY: “Automation, future of work, and guaranteed income” event (March 4 – May 7)

ITALY: “Automation, future of work, and guaranteed income” event (March 4 – May 7)

From March 4 to May 7, 2017, a novel program will begin under the auspices of ‘Beyond Growth’ (“Oltre La Crescita”), which is a school of training open to all circa 2011, entitled ‘Need to work or work without? Automation, future of work, the basic income.’ Beyond Growth is an event intended to be a debate and a reflection.

There will be examination of a variety of issues, including the “relationship between automation and work, the effects of neoliberal policies and wage labor, and rethinking the current paradigm,” among other topics. Program here.

These topics will be debated and reflected upon in their cultural, economic, ethical, social, and technological dimensions. The ‘Beyond Growth’ conference will include four events for broad-based debate, followed by a concluding  event  offering results and a final discussion.

Further details can be found here and here (in Italian).

Image credit to Basic Income Network Italia