The Netherlands: ‘Free Money’ at Studium Generale Utrecht University, October 25, 2017

As the social assistance experiments in several Dutch municipalities will begin this fall, Studium Generale of Utrecht University has organized an event dedicated to ‘Free Money‘.

Studium Generale is a university’s public platform for knowledge sharing and reflection by organizing lectures, seminars and other activities aimed at students and the general public. Entrance is always free and accessible without reservation.

In the Netherlands, municipalities are responsible for the provision of tailor-made benefits to anyone who has insufficient means to support him or herself, and for achieving the purpose of the Participation Act, that is, making recipients independent from social assistance. Several municipalities are conducting two-year experiments, in the context of which they have the option of implementing social assistance regulations in an alternative way.

Each experiment will include at least three treatment groups, who are subjected to various regimes, and a control group. The restrictiveness of obligations between the groups will vary, from a group which has fewer obligations imposed on it to a group which is even more intensively supervised. In addition, participants in a third treatment group may retain a limited amount of their income from work on top of their payments. See the links at the bottom of this article for more details.

Researchers of Utrecht University, one of the four universities that will supervise the experiments scientifically, have been critical about the design of the pilots because of its limited scope and complicated nature.

The experiments, as they are proposed now, raise a number of questions, such as: why don’t we all give a basic income? Is it too expensive, or are there any other objections?

Rutger Bregman (The Correspondent) and Professor Ingrid Robeyns (political philosopher and economist at Utrecht University) will address these issues during the “Free Money” event on October 25, 2017.

Rutger Bregman has written several books on ‘Free Money’ — for instance, Utopia for Realists — and was one of the speakers at TED2017 in Vancouver last April.

Ingrid Robeyns holds the chair in Ethics of Institutions. In her teaching she focuses on normative and applied ethics and (normative) political philosophy. She has been teaching about justice theories and economic ethics at the masters level in recent years. In her own research, Robeyns addresses a number of normative issues related to demography, gender, family, and institutional economy. Robeyns writes for the English-language group blog Crooked Timber and occasionally on her own site Buiten Categorie. She will also be one of the speakers during BIEN’s 17th Congress next September in Portugal.

The event will take place on October 25, 2017. The language is Dutch. Those interested are invited to join the discussion on Facebook event. For more details, see here.


Previous information on social assistance experiments in The Netherlands:

Florie Barnhoorn, “The Netherlands: Amsterdam on collision course over social assistance experiments” (August 5, 2017).

Florie Barnhoorn, “The Netherlands: All that’s left is the action. Where do we stand with the experiments?” (June 2, 2017).

Kate McFarland, “The Netherlands: Social Assistance Experiments Under Review” (May 9, 2017).

Florie Barnhoorn, “The Netherlands: Design of BI Experiments Proposed” (October 26, 2016).

Credit Picture Flickr.com CC Ealasaid.
Thanks to Kate McFarland for reviewing this article.

The Netherlands: Dutch Labour ministers reject Basic Income as part of solution for older unemployment in the Netherlands

The Netherlands: Dutch Labour ministers reject Basic Income as part of solution for older unemployment in the Netherlands

Lodewijk Asscher and Jetta Klijnsma (composition). Credit to: Wikipedia.

 

Lodewijk Asscher and Jetta Klijnsma, the Minister and the Secretary, respectively, for the Ministry of Social Affairs and Employment in the Netherlands, have dismissed the idea that a Basic Income could form part of a solution to deal with the increasing levels of unemployment amongst older people in the country.

 

Answering questions on the Radar Extra documentary ‘Chance of Work: 3 percent’, which investigated the high rates of unemployment amongst the over 55s and their difficulty in returning to the world of work, the ministers accepted that the unemployment rate was too high, but rejected the notion that an older unemployed person had only a 3 percent chance of returning to work. They claimed instead that “the chance of finding work is significantly greater… and will increase further with an improving economy and additional government measures”, adding further that, according to a paper published by the UWV (Employee Insurance Agency) in May 2017, 35 percent of those receiving unemployment benefit over the age of 55 return to work within a year.

 

When it was suggested by the interviewers that a Basic Income might allow the older unemployed to contribute to society in a different way, the ministers stated that “unconditional basic income is not a realistic or economically viable option”, reasoning that “regardless of the cost, as basic income increases so labour supply decreases, supplementing a low wage economy”. They also explained that Basic Income did not fit with the party’s political ambitions, which are built around a focus on “increasing employment” and a “commitment to participation”, the result of which, they believe, will offer people “a social network, self-confidence and opportunities for development”.

 

The extent to which these comments will be concerning for Basic Income proponents is unclear, however, given the heavy losses the Labour Party suffered in the March 2017 elections, which saw support plummet from 38 to just 9 seats, seventh place in the final standings. Though a government has yet to form, the prospect of the Labour Party participating in a coalition, therefore, seems remote. In addition, Jetta Klijnsma, the likely outgoing Secretary for the Ministry of Social Affairs and Employment, has recently authorized for 5 municipalities to carry out Basic Income experiments. The Radar Extra petition to experiment with Basic Income in over 55s has also already been signed by over 70,000 people.

 

A full transcript of the Radar Extra interview with the two ministers can be found here.

 

More information at:

In Dutch:

Menno de Vries, “WW’ers vaker aan het werk [Unemployed more often at work]”, May 2017

Petitie basisinkomen 55-plussers [Basic Income petition for people older than 55 years old]”, Radar, 2017

 

In English:

VVD wins 33 seats but coalition partner Labour is hammered”, DutchNews.nl, 16th March 2017

Kate McFarland, “THE NETHERLANDS: Government authorizes social assistance experiments in first five municipalities”, Basic Income News, 11th July 2017

Pedro Alves, “Netherlands: Basic Income petition in the Netherlands for people over 55 years old was signed more than 50000 times”, Basic Income News, 6th July 2017

Universal Basic Income Examined by Futurism Blog

Universal Basic Income Examined by Futurism Blog

The Futurism blog, which describes itself as reporting on “the breakthrough technologies and scientific discoveries that will shape humanity’s future”, has published a post on basic income as a response to increasing automation of the workplace.

Although universal basic income (UBI) is neither a technology nor a scientific discovery, Futurism’s FAQ page lists UBI as one of the topics that it is “particularly interested in.”

The article sets out the nature of basic income, explores arguments for and against it, lists a number of recent and upcoming experiments, and provides quotes from a number of supporters of UBI throughout history. It is written by Luke Kingma, Futurism’s Head of Creative and a former copywriter for companies such as Hasbro, Toyota and Warner Brothers.

Futurism has appeared in a list of top futurist blogs on Quora, a popular question-and-answer site. It states that it has approximately 200,000 subscribers to its regular newsletter.

 

More information at:

Luke Kingma, “Universal Basic Income: The Answer to Automation?,” Futurism, 22th April 2016

Richard Branson supports UBI

Richard Branson supports UBI

Richard Branson. Credit to: Wikipedia.

Multi-billionaire Richard Branson, founder of Virgin, recently became the latest wealthy entrepreneur to publicly support universal basic income (UBI), following similar public statements by Mark Zuckerberg, the co-founder of Facebook and Stewart Butterfield, the co-founder of Flickr.

Writing on his personal blog on the Virgin website, Branson said: “In the modern world, everybody should have the opportunity to work and to thrive. Most countries can afford to make sure that everybody has their basic needs covered. One idea that could help make this a reality is a universal basic income. This concept should be further explored to see how it can work practically.”

He went on to discuss the UBI experiments currently taking place in Finland, and stated that: “A key point is that the money will be paid even if the people find work. The initiative aims to reduce unemployment and poverty while cutting red tape, allowing people to pursue the dignity and purpose of work without the fear of losing their benefits by taking a low-paid job.”

Branson also indicated that he had discussed this with The Elders, a group he helped to create which aims to be the “village elders” of the new “global village”. The Elders include members such as Desmond Tutu, Nelson Mandela, Jimmy Carter, Kofi Annan and Ban Ki-Moon. He reported: “What I took away from the talks was the sense of self-esteem that universal basic income could provide to people.”

More information at:

Richard Branson, “Experimenting with Universal Basic Income”, Richard Branson’s blog, 14th August 2017

 

Edited by Genevieve Shanahan

BARCELONA, SPAIN: Design of Minimum Income Experiment Finalized

BARCELONA, SPAIN: Design of Minimum Income Experiment Finalized

In October 2017, the city of Barcelona, Spain, will launch a two-year experiment testing several variants of a guaranteed income and active policies to reduce poverty rates.

The project has been called B-MINCOME in reference to the Canadian province of Manitoba’s Mincome experiment, a guaranteed annual income trial conducted in the late 1970s.

The design of B-MINCOME, which was first discussed in Basic Income News in February, has recently been finalized. It will be conducted in the Besòs area, the city’s poorest region, and include 2000 households. These households will comprise a stratified random sample from Besòs area households which have at least one member between ages 25 and 60 and which are current beneficiaries of the city’s Municipal Social Services. (Participation in the experiment is voluntary for the households selected, in contrast to Finland’s basic income experiment in which participation was made mandatory to avoid self-selection bias.)

Of the selected households, 1000 will be assigned to a control group, while the other 1000 will be assigned (at random) to one of ten treatment groups, all of which will receive cash income supplements (Municipal Inclusion Support or SMI). Treatment groups differ according to whether the SMI is accompanied by an additional program and whether the SMI is means tested.

The amount of the SMI will depend upon household composition and financial status, but will range from 100 to 1676 euros per month per household. For example, a four-member household with no assets and a total monthly income of 900 euros would receive an SMI of about 400 euros per month. Participants will continue to receive Municipal Social Services, but these will be deduced from the SMI.

For 450 households in the study, the SMI will be delivered without any additional associated policies. For this group, the benefit will carry no terms or conditions beyond those made necessary by the constraints of the experiment: participants must continue to reside in the Besòs area until the conclusion of the trial on September 30, 2019, and they must agree to the terms of the experiment (e.g. consent to be anonymously monitored for research purposes, communicate changes in income or household status to those administering the experiment, and install a mobile app to communicate with experimenters). Importantly, receipt of the SMI is not conditional on a willingness to work or fulfill any other participation requirement.

These 450 households will be further divided into two treatment groups: one in which the SMI is means tested (the amount of the payments will be reduced according to the amount of additional household earnings), and one in which participants will receive the full amount of the SMI for the duration of the experiment, regardless of additional income.

Thus, the latter treatment group will receive a benefit extremely similar to a basic income–a guaranteed monthly cash payment with no work requirement or means test–with the slight difference that its amount depends on household composition.

The remaining 550 households will not only receive the SMI but also be subject to an associated social policy. These households will be distributed among eight treatment groups, according to (a) the associated policy and, in the first three groups, (b) whether participation in the policy is mandatory or voluntary. The policies include (1) an occupation and education program (150 households), (2) a social and cooperative economy program (100 households), (3) a guaranteed housing program, and (4) a community participation program (200 households).

Within the fourth group, half of the households will be assigned to a treatment group in which the SMI is means tested, half to one in which it is not.

The researchers conducting B-MINCOME are interested in the extent to which the SMI reduces poverty and social exclusion, and which particular models of SMI are most effective for this purpose. For instance, is the SMI more effective when combined with any particular associated policy, or with none at all? And is the SMI more or less effective if it is means tested?

To examine the impact on poverty and social exclusion, researchers will examine, more specifically, changes in labor market participation, food security, housing security, energy access, economic situation, education participation and attainment, community networks and participation, and health, happiness, and well-being.

Researchers will additionally examine whether the SMI reduces the administrative and bureaucratic responsibilities of social workers.

B-MINCOME is supported by a grant from Urban Innovative Actions (UIA), an initiative of the European Commission that supports projects investigating “innovative and creative solutions” in urban areas. The Barcelona City Council partnered with five research organizations and institutions to design and conduct the experiment: the Young Foundation, the Institute of Governance and Public Policy at the Autonomous University of Barcelona, the Polytechnic University of Catalonia, the Catalan Institution for Evaluation of Public Policies, and NOVACT-International Institute for Non-Violent Action.

B-MINCOME has maintained connections to global basic income movements throughout its design phase. The designers of B-MINCOME consulted with representatives from the governments of Finland, the Canadian province of Ontario, and the Dutch municipality of Utrecht, who have been involved with the design of guaranteed income experiments in their own areas. In addition, the project team contains several members of BIEN’s Spanish affiliate, Red Renta Básica.

The leading political party in Barcelona’s City Council, the left-wing Barcelona en Comú, hopes to implement a municipal cash transfer program following the results of the B-MINCOME pilot, in part with the goal of reducing the bureaucracy associated with the administration of Municipal Social Services and reducing total expenditures on social policies.


Thanks to Bru Laín for details of the design of B-MINCOME, and Genevieve Shanahan for copyediting this article.

Photo: Barcelona, CC BY 2.0 Bert Kaufmann