Portugal: Unconditional Basic Income of All for All

Portugal: Unconditional Basic Income of All for All

A step to a future of solidarity and sharing

For hundreds of thousands of years, men and women lived in tribal groups, practicing mutual cooperation and solidarity. In the present we live in capitalism, competing among ourselves, driven by individual ambitions to ‘have’. This is not doing us any good. However, we can see it as a painful but necessary civilizational phase, a means of developing the capacity to produce all that’s necessary for the material life of all. The age of capitalism has only lasted 200 years. A better future could be drawn with the re-establishment of an economy of solidarity between people. We propose a process of systematic, automatic and unconditional transfers of money between people, from those who have more to those who have less. We call it Unconditional Basic Income of All for All, or ‘UBI-AA’.

 

The Past – from Ancestral Economy to Capitalism

Human societies in which all men and women have lived on Earth since people here exist, and until the formation of the first sophisticated civilizations, were tribal groups. They functioned through cooperation and solidarity between their members in tasks such as obtaining and distributing food, building shelters and family dwellings or taking care of community assets; tasks that today we would call ‘economic’. In fact, over hundreds of thousands of years of human presence on Earth the whole economy was cooperative and supportive. And it was sustainable then.

After the emergence of the first sophisticated civilizations and empires – about 6,000 years ago – things began to change, and the forms of economic organization put into practice came to vary from then. Today, however, all the economic diversity that has existed over those 6,000 years is   virtually nullified, and a unique model has once again consolidated. It is called capitalism, and it has been going on for about 200 years.

While the ancestral economic mode was based on solidarity and cooperation between people, on a harmony between them and nature and on an orientation towards the mere satisfaction of their needs, capitalism is characterized by competition among peers, by the predation of the Earth and by an orientation of its agents towards unlimited material accumulation. Both models are hegemonic, each in its own time. But that’s all they have in common; as for everything else, it is difficult to find more opposing realities.

Can, like its ancestral homologous form, also this present ‘state of the art’ in economic organization – capitalism – last for hundreds of thousands of years? It doesn’t seem possible, given the condition in which it left us humans, and the planet, after only 200 years. And yet, despite its deeply dark sides, an important merit can be attributed to capitalism: with the demand for accumulation and profit it gave us machinery, techniques and knowledge that can now allow us to have the resources for the material comfort of all. This is only a possibility and not inevitable because although these machines, techniques and knowledge give us the capacity, they alone do not guarantee that we will use it. However, capitalism cannot possibly make any sense in history unless the immense price it charged and still charges us eventually results in the actual extinction of the material scarcity from the face of the Earth. Only then will it be seen as a process of rising human civilization to a higher level, albeit with great suffering.

Thus, the great question of the present is how to accomplish the potential that capitalism offers us, to free ourselves from the ‘fatality’ of material scarcity. The simple progress of the economy, as we have it, does not seem to be the way. Reality shows us very clearly that the mere growth, without any change or innovation in the logic and processes of the present economy, will never raise the condition of all, although it may greatly improve it for some people. Neither the strengthening of the so-called welfare state, in its traditional, bureaucratic, expensive and life-controlling form, can do more than mitigate poverty. Traditional welfare will never eliminate poverty and it charges from its beneficiaries a price in dignity and in humanity that the more unnecessary it becomes, the more intolerable it gets.

No, capitalism does not inherently have a mechanism to guarantee essentials for all. Let us resurrect from our ancestral economic way its essential element: solidarity among people.

 

A Future – the UBI-AA

Solidarity among people is the essential idea of the alternative distribution model of the resources generated in society we will talk about here: the Unconditional Basic Income of All for All, or ‘UBI-AA’.

To show what it is and how it works we will turn here to an explanation given elsewhere:

The UBI-AA is a revenue redistribution process designed to operate monthly, providing automatic and unconditional transfers among citizens, from those who have higher incomes to those with low or no income at all. Built, supported and leveraged by them, the process will invite the participants to take responsibility and engage in their communities, which will reinforce them.

It works in two stages:

1) As it is acquired, each member of the community discounts to a common fund – a ‘UBI Fund’ – a proportion of their income, at a single and universal rate;

2) At the end of each month, the Fund’s accumulated total is equally and unconditionally distributed by all members of the same community.

This simple process of treating everyone equally puts those who in each moment have above-average incomes to deliver to the UBI Fund more than they receive from it, and those who have below-average incomes would receive more. Thus, the process operates a joint distribution between the participants of part of their individual incomes. In addition, to reduce inequalities between them, this solidarity between peers creates an unconditional guarantee of income for all, that is, an Unconditional Basic Income.

It follows from the action of the UBI-AA process the loss of available income by some and its gain by others. For those who lose money, it is important to limit the loss, while maximizing the gain for the rest to ensure broad acceptance of the policy.

The demand for this double result should not, however, mean a devaluation of the possibilities of mutability of all individual positions. With the passage of time and with the exercise of the options that the process itself will open to the participants, the situations of income “winners” or “losers”, in which each of them will at each moment be, should always be seen as circumstantial.

To make possible its intended effects, the implementation of the UBI-AA should be accompanied by the release of its participants from the burden of personal income tax. Such tax relief will compensate them for the contributory effort required by the UBI-AA process, although, for those above a certain level of income, such compensation may turn out to be merely partial.

Abolished the personal income tax, the moderation of loss for citizens with higher incomes and, at the same time, the material significance of the gains to those in the opposite condition, will be possible if the rate of contributions to the UBI Fund is set at an optimal level, balancing the two outcomes. [1]

A more complete description of the UBI-AA process, as well as a simulation of the financial effects it would have produced, both in individual citizen spheres and in the State budget, hypothesizing it in force in Portugal in 2012, can be seen here.

UBI-AA differs from most of the traditional redistributive processes in operation because it is unconditional; and from most of the unconditional alternative processes for being a construction of common citizens instead of the policy of a government, a central bank or any other ‘power’.

What is proposed with the UBI-AA is not directly the creation of an unconditional guarantee of income for all. The proposal is the institution of an alternative form of organization of the economy in its distributive side. This will be accomplished with the income distribution process described above; a process that will favor the rehabilitation of values such as solidarity and voluntary cooperation between people, and of which the creation of an unconditional guarantee of income for all will be a corollary.

We hope that may contribute to the flourishing of a new culture, less marked by the centrality of material goods. Who knows if making everybody’s access to essential material resources as simple as the possibility of breathing, will not end up instilling in us the same attitude towards those resources – money and things it buys – as that we have towards the air we inspire: no matter how valuable it may be to us, we do not quarrel with each other for it; we use the quantities we need. Accumulating it would no longer be necessary.

Such cultural shift would certainly be a great step forward for us, human beings, and very good news for Earth.

[1] This stretch is an English translation from Projeto de um RBI – Local – Solidário – Voluntário, [Project of an UBI – Local – Supportive – Voluntary], by Miguel Horta, 2017, available (in Portuguese) from: https://pt.scribd.com/document/341205904/Projecto-RBI-Local-V-2017.

 

Written by Miguel Horta

Political Quarterly special issue on Tony Atkinson’s Participation Income

Political Quarterly special issue on Tony Atkinson’s Participation Income

Political Quaterly has just published a series of papers devoted to Tony Atkinson’s Participation Income (these will appear in print later in 2018, but all articles are available online at the moment). These have been presented and discussed at the 2017 BIEN Congress.

Participation Income has been an idea introduced by Tony Atkinson in the 1990’s, which can be summarized as follows (by Jeremy Williams):

“The participation income is a compromise that overcomes both of these issues [definition of citizenship and “money for nothing” moral hazard]. Rather than a true universal and non means-tested payment, it would be conditional. To receive the basic income, people would need to be participating in society. That could be formal work, it could be unpaid work such as care. It could be volunteering, or education, and of course people who were disabled or unable to work wouldn’t be excluded. Anyone who was contributing to society in some way would be eligible to enjoy its rewards.”

 

More information at:

Stirton, Lindsay, “Symposium Introduction: Anthony Atkinson’s “the Case for a Participation Income””. The Political Quarterly: 1–2, May 3rd 2018

Jurgen De Wispelaere and Lindsay Stirton. “The Case Against Participation Income — Political, Not Merely Administrative”. The Political Quarterly, May 7th 2018

Heikki Hiilamo and Kathrin Komp. “The Case for a Participation Income: Acknowledging and Valuing the Diversity of Social Participation”. The Political Quarterly: 1–6, April 30th 2018

Cristian Pérez Muñoz, “Participation Income and the Provision of Socially Valuable Activities”. The Political Quarterly: 1–5, May 4th 2018

Almaz Zelleke, “Work, Leisure and Care: a Gender Perspective on the Participation Income“. The Political Quarterly: 1–7, May 13th 2018

Italy, Rome 28th of May: The strength of basic income. Technological innovation, new welfare and experiments all around the world

Italy, Rome 28th of May: The strength of basic income. Technological innovation, new welfare and experiments all around the world

On the the 28th of May, at 17h, Fondazione Basso hosts in via della Dogana Vecchia 5, in Rome, a book presentation and discussion titled “The strength of the basic income. Technological innovation, new welfare and experiments all around the world“.

The event will be an opportunity to compare and discuss different analysis and approaches on issues regarding the basic income proposal, as described in three different recently published books.

The authors of these three books will be present:

Roberto Ciccarelli, author of “Forza lavoro. Il lato oscuro della rivoluzione digitale [Workforce. The dark side of digital revolution]” (Derive Approdi, 2018)

Giuseppe Bronzini, author of “Il diritto ad un reddito di base. Il welfare nell’era dell’innovazione [The right to a basic income. Welfare in the age of innovation]” (Gruppo Abele, 2017)

Sandro Gobetti and Luca Santini, authors of “Reddito di base tutto il mondo ne parla. Esperienze, proposte e sperimentazioni [Basic income, all the world talks about it. Experiences, proposals and experiments]” (GoWare, 2018)

Giuseppe Allegri (University of La Sapienza) and Giacomo Marramao (University Roma Tre) will also talk at the event. The meeting is organized by the Basic Income Network Italia.

 

(Thanks to Anna Maria Catenacci)

Canada: Basic income would cost $76B per year

Canada: Basic income would cost $76B per year

76 billion dollars. That’s what it would cost to implement basic income in Canada according to a new report released by the Parliamentary Budget Office (PBO).

The report comes just days after Ontario began testing its own basic income pilot study in Hamilton, Brantford, Brant County, Lindsay and Thunder Bay. As part of the study, 4000 Ontarians will receive unconditional cash transfers of up to $2500 per month for the next three years. The new report estimates how much it would cost to roll out the program nationwide.

Importantly, the policy under consideration would not be an universal basic income, and would only be available to low-income individuals between the ages of 18 and 64. Roughly 1 in 5 Canadians (7.5 million people) would qualify for benefits. The plan would guarantee a minimum annual income of $16,989 for singles, and $24,027 for couples (those with a disability could receive an additional $500 per month).

The report also assumes that the guaranteed basic income (GBI) would replace $33 billion in federal spending already in place to help low-income people, thus bringing the net cost of implementing the program down significantly to $43 billion.

The report has drawn both praise and criticism from both sides of the debate. Opponents of the idea (including Conservative MP Pierre Poilievre, who requested the PBO study) cite the high cost of the program, arguing that the plan would add an additional 13 percent to the current federal budget.

Supporters argue that the report actually underestimates the value of a minimum income by not taking into account potential savings in other areas of the economy. Elaine Power, a professor in public health at Queen’s University, notes that a basic income could save the government up to $28 billion in healthcare costs directly attributable to poverty. Andrew Coyne, a columnist at the National Post, also suggests that local governments would likely share the cost burden, which could knock an additional $20 billion off the federal price tag.

Currently, there are no plans to implement a nationwide guaranteed basic income in Canada. However, the report marks the first attempt by the federal government to estimate what such a program might cost. In order to further assess the viability of basic income in Canada, all eyes will surely be on the Ontario pilot study in the years to come.

 

More information at:

André Coelho, “ONTARIO, CANADA: Applications for basic income pilot project reach residents at Thunder Bay and Hamilton“, Basic Income News, 29th June 2017

André Coelho, “CANADA: Quebec is implementing a means-tested benefit, not a basic income”, Basic Income News, 24th January 2018

Rob Rainer, “A basic income for working-age adults is within fiscal reach“, 19th April 2018

Interview: UBI and ‘Job Culture’ (Part Two)

Interview: UBI and ‘Job Culture’ (Part Two)

The following is part two of a two part series (part one can be found here) featuring Kate McFarland interviewing D. JoAnne Swanson of The Anticareerist on Basic Income. The original article can be found here.

KM: Are there any particular writers or thinkers on basic income who have influenced your views? Is there any additional literature that you would recommend for those who are interested, specifically, in the idea that basic income could facilitate and encourage unpaid work?

DJS: This could be a long list! Not all of these people are basic income writers per se, but they’ve all greatly influenced my views on basic income and unpaid work. Here are some of the writers I refer to most frequently, along with a favorite quote from each:

David Frayne – his interview in Contrivers’ Review is among the most lucid treatments of these topics I’ve ever read. I love his writing. I highly recommend his book The Refusal of Work.

“…there has to be more political organisation to create change. The book is deliberately very explicit about this because I felt a strong need to distinguish it from popular books promoting lifestyle changes like “slowness” or “life simplification” as solutions to the problems with work. We are seeing a lot of these books where the author is positioned as a sort of lifestyle guru, who is going to tell us the secret key to living well, and it is usually by working less, being less materialistic, and so on. I don’t think that people really benefit from being told this, and these books actually anger me to a degree, because they suggest that change is a matter of changing individual habits.”

Charles Eisenstein – author of Sacred Economics and The More Beautiful World Our Hearts Know is Possible

“Why do we want to create more jobs? It is so people have money to live. For that purpose, they might as well dig holes in the ground and fill them up again, as Keynes famously quipped…Wouldn’t it be better to pay people to do nothing at all, and free up their creative energy to meet the urgent needs of the world?”

“Unfortunately, the term leisure carries connotations of frivolity and dissipation that are inconsistent with the urgent needs of the planet and its people as the age turns. There is a vast amount of important work to be done, work that is consistent with degrowth because it won’t necessarily produce salable product. There are forests to replant, sick people to care for, an entire planet to be healed. I think we are going to be very busy. We are going to work hard doing deeply meaningful things that no longer must fight upstream against the flow of money, the imperative of growth. Yet I also believe we will have more true leisure — the experience of the abundance of time — than we do today. The scarcity of time is one reason we overconsume, attempting to compensate for the loss of this most primal of all wealth. Time is life. To be truly rich is to have sovereignty over our own time.”

Charlene ‘Eleri’ Hamilton of Women4UBI on The Work Trap:

“Some detractors of Basic Income say that it will create dependency and slavery to the government. That is what is happening with our so-called safety nets now. You have to prove yourself to the government to get benefits. You have to continue to prove yourself to keep benefits. You are told when and how and why you can use those benefits. You will lose those benefits the moment you step out of the framework. Basic Income eliminates all that.

Basic Income is about trust and respect. We respect you as a member of our society, and we trust you to make your own choices. We don’t need to means test you, or scour through your finances, or judge what you buy when. When everyone gets the same level of benefit, then no one needs to be judged, shamed or excluded.”

Peter Frase – search his blog for the “work” tag. In particular, see Stop Digging: The Case Against Jobs and Work To Need. From Workin’ It:

“I want to separate the different meanings of work. But doing so is essentially impossible in a world where everyone is forced to work for wages, because they have no other means of survival. In that world, all work is work in the first sense, “necessary” because it has been made necessary by the elimination of any alternative.” 

Kathi Weeks – The Problem With Work: Feminism, Marxism, Antiwork Politics, and Postwork Imaginaries and A Feminist Case for Basic Income:

“Demanding a basic income, as I see it, is also a process of making the problems with the wage system of income allocation visible, articulating a critical vocabulary that can help us to understand these problems, opening up a path that might eventually lead us to demand even more changes, and challenging us to imagine a world wherein we have more choices about waged work, nonwork, and their relationship to the rest of our lives.”

Silvia Federici – Wages Against Housework
See also the Caring Labor Archive.

“…under capitalism every worker is manipulated and exploited and his/her relation to capital is totally mystified. The wage gives the impression of a fair deal: you work and you get paid, hence you and your boss are equal; while in reality the wage, rather than paying for the work you do, hides all the unpaid work that goes into profit.”

J. Larochelle & C.A. L’Hirondelle of Livable4All – “What is Jobism?

“…anyone doing informal but necessary work such as unpaid care-giving is put under financial duress because their time used for unpaid work cannot be used for paid work. Families, neighborhoods and communities are robbed of the time and resources they need thrive and be healthy. This robbing resources from the informal sector causes great harm to children, elders, people with extra needs from illness or disability and it breaks apart families and communities. This creates a negative feedback loop because the subsequent problems fuel the need for more ‘fixing’ jobs (e.g. social workers, addiction counsellors, police, lawyers, jailers, etc.).”

Ethan Miller – Occupy, Connect, Create! Imagining Life Beyond ‘The Economy’

“The sorcery of capitalist economics is precisely to make its own violence invisible, so that it can appear to be nothing but the miraculous liberator of human potential and the progressive deliverer of ever-abundant goods. And there is a disturbingly good reason for us to give in to this illusion: most of us are dependent on the very economy that has systematically exploited us and undermined the health of our communities and our environments. We have come to rely on the very “job creators” (that new euphemism for exploiters) whose project of profiting at our expense we condemn. We have come to need the very economic growth machine that is eating our world and destabilizing our planetary climate in the name of “progress.”

Lauren Chief Elk-Young Bear, Yeoshin Lourdes, and Bardot Smith, founders of the gender justice movement Give Your Money To Women: The End Game of Capitalism.

“This goes back to classism again and again and again. If you look across the spectrum, things women do for society are valued little or not at all in terms of money. They’re essentially forced to access capital through their relationships with men: personal, familial, professional.”

Molly Scott Cato – See Arbeit Macht Frei  (the first edition of this book was released in 1996 under the title Seven Myths About Work.)

“Work is a confidence trick that lies at the heart of the economic system of capitalism. If a man walked up to another man and hit him over the head with a stick and stole half the money in his wallet this would be considered a crime and the man would be considered a threat to society. But if a man offers another a job and pays him half the value his labour generates we laud him as a wealth-creator, as a worthy entrepreneur, the sort of person our children should be taught to emulate in school.”

Sarah Jaffe – See Opting for Free Time:

“…we need to be willing to argue for leisure as a right, and as a feminist issue. […] A gendered demand for leisure would argue that women’s time is as important as men’s, whether we are spending it parenting or reading a book or lying on a beach. It would take into account the racialized and classed expectations of different groups of women, and argue that low-income women deserve time off too (and it would argue that they deserve to make enough money to enjoy that time.) It would point out that what is earned vacation for white women is not “laziness” in women of color.

It would argue not from any biological imperative (that rarely gets us anywhere good), but from a time-honored (though lately forgotten) labor and left tradition that says that time, as much as anything, is a right—and it would take from the Wages for Housework movement the idea that unpaid work in the home is still work that we deserve a respite from.”

Karl Widerquist – Among my favorite quotes from his work is this powerful statement:

“One answer of mine to one of the common questions [about universal basic income, a.k.a. UBI] is unusual, and it’s been a major theme in my writing since I started. When people say it’s something for nothing, I argue most emphatically that it is not. We force so many terrible things onto the poor. We don’t get their permission. And without UBI, we don’t pay them back for what we force on them. We make them live in a world where everything else is owned. We make rules about all kinds of things they could otherwise do. Our ancestors lived without such rules for 200,000 years. They could hunt, gather, fish or farm as they wished. We’ve taken all that away and given them nothing in return. UBI is long overdue. UBI is paying for the privileges you have taken. If we don’t have UBI we put the propertyless in the position where they have no other choice but to work for the very people whose privileged control of resources makes the propertyless unable to use resources for themselves. UBI is no less than the end of effective slavery.”

James Chamberlain, whose work I just discovered a few weeks ago. (My first reaction: “where were the people who were writing things like this when I was applying to graduate school?”) I’m very excited to read his new book Undoing Work, Rethinking Community, especially after reading an early draft of the first chapter.

“Not only does the requirement to work keep many of us too busy to engage in deep reflections on fundamental questions of collective existence, but the ideology of work erodes freedom by constructing paid work as an unassailable good and by placing it outside the realm of “reasonable” or “realistic” debate. By encouraging us to see the requirement to work for pay as an inevitable or even natural feature of collective existence, the ideology of work therefore chips away at our freedom to even imagine alternative futures in which paid work might play a different role (or none at all), and thus reduces our capacities to act according to our own ends.”

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In May, Kate McFarland will be speaking about anticareerism at the North American Basic Income Guarantee congress in Hamilton, Ontario, Canada.