by Andre Coelho | May 20, 2018 | News
Andrew Yang has already made his name known by leading a presidential campaign which defends the implementation of basic income. Now he extends that with an interview for the Merion West journal, a news outlet particularly associated with low biases. In that interview, posted on the 9th of May, Yang affirms his conviction that humanity is going through an unprecedented shift, while the (United States) political class “is completely asleep at the switch”.
Yang, as other influential people in the United States, especially those dealing with technological developments and digital-based companies, is very worried about the job loss wave in the United States, due to automation. According to him, that is already happening, and will deepen in the near future. To counteract the predictable consequences of such job displacement “by software, AI, and machines”, he defends the implementation of a 1000 US$/month per adult basic income, which he calls a “freedom dividend”. That and a “human-centric capitalism”, an economic system which measures things like “childhood success rate, mental health, levels of engagement with work, freedom from substance abuse”, instead of GDP.
Asked about a possible parallel with the Industrial Revolution, where, despite strifes and strikes, displaced people eventually found new work, Yang says that (referring to manufacturing workers in the Midwest) “there was no magical reorganization of work; instead, many workers went home and killed themselves by the numbers”. According to him, anyone thinking this “magical reorganization of work” is possible, is “not paying attention to the real data on the ground rate now”.
As for basic income itself, Yang approaches it with a certain humour, even, when he says “One thing I’m looking forward to asking, when I’m president, which state would like to have universal basic income first?” However, he states it very seriously when putting forth his conviction that “universal basic income would dramatically improve the lives of tens of millions of individuals and families. There might be some tweaks and tailoring, but I’m very bullish on the substance”.
As for financing, Andrew Yang is confident that a basic income of 1000 US$/month per adult is affordable, considering its price tag is around 2 trillion US$ per year, compared with current welfare costs of 6 trillion US$ per year. That doesn’t equate to ending all welfare benefits, but that it is possible to include basic income within the benefits systems, by introducing an unconditional parcel. Even still, he defends, like Phillipe van Parijs has also proposed in the European context, basic income can be mostly financed with a value-added tax around 10%, or about half of what is practiced in Europe, on average. An expectation of further economic growth, due to a rise in aggregated demand by influence of the existence of a basic income, will self-finance the rest, given an equivalent rise in collected taxes.
Yang also believes that the US current system of social security, health and education are essentially broken, categorizing them as “dysfunctional welfare systems”. According to him, these systems generate vast disincentives amongst the population, or benefit traps. Hence, the introduction of basic income could break those economic and social traps, by providing a financial floor cumulative with earnings from a job. As far as economic policy is concerned, he concludes the interview with a deeper, more general call to society: “In America, we won’t trust our people, but the only thing we will trust are systems, and more systems and processes—and it’s immensely counterproductive. We need to start trusting our people again; we have to trust ourselves.”
More information at:
Sara Bizarro, “United States: Andrew Yang is running for President in 2020 on the platform of Universal Basic Income”, Basic Income News, April 8th 2018
Henri Matilla, “Interview with Andrew Yang, 2020 Presidential Candidate”, Merion West, May 9th 2018
by Sara Bizarro | Apr 8, 2018 | News
Andrew Yang is a young entrepreneur who is running for president on the platform of Basic Income. As an entrepreneur, he started and led several technology and education companies. More recently he founded Venture for America, “a nonprofit that places top graduates in startups in emerging U.S. cities to generate job growth and train the next generation of entrepreneurs.” Because of his varied experience, Yang travelled all over the United States and came face to face with the reality of several dreary and forlorn locations. In his new book, The War on Normal People, he describes visiting Detroit in 2010, when the city “was just beginning its descent into bankruptcy,” he remembers “cold, empty streets feeling abandoned,” and he saw the same in “Providence, New Orleans, and Cincinnati.” These experiences led him to create Venture for America, sending talented entrepreneurs to these cities in an attempt to create jobs and revitalize these areas.
Andrew Yang and President Obama, 2012
Even though Venture for America was highly successful, “people were clapping us on the back, congratulating us on our accomplishments,” but he thought: “What are you congratulating us for? The problems are just getting worse.” He realized that there is too much “human and financial capital flowing to just a handful of places doing things that are speeding the machine up rather than fixing what is going wrong.” Yang realized that technology was hitting the economic fabric of the country and “eliminating livelihoods for hundreds, thousands of the most vulnerable Americans.” This is the beginning of a wave he calls the Great Displacement, a wave that “grinds up people and communities” in ways that are not clear nor straightforward and that can lead to utter disaster – this reality is already partly responsible for the election of Donald Trump, and when it hits it will become even more frightening. Yang feels a sense of urgency, in the sense that we need to do something, “it’s getting late, and the time is running short.”
When asked about how he decided to run for president, he said: “What happened was that I saw Donald Trump get elected and realized that there is a very short window of time between now and when things get so bad that it is going to be difficult to easily reconstitute many of the regions [that are most affected and that elected Trump]. It was in 2017 and I decided that someone should run for President on Universal Basic Income and so I went around and asked who is going to do this? When I saw no one was going to do it, I decided to do it.” Yang’s platform is mainly focused on Universal Basic Income, but also includes Medicare for All and something he calls Human Capitalism. In Human Capitalism we would still have a free market, but would not be focused primarily on corporate profits, but instead should follow three central tenets: “1. Humans are more important than money, 2) The unit of a Human Capitalism economy is each person, not each dollar, 3) Markets exist to serve our common goals and values.”
In his book, War on Normal People, Yang paints a bleak view of automation. He predicts it will arrive soon and in full force, anytime between 2020 and 2030. Service jobs will be mostly automated as well as customer service jobs, construction jobs and jobs that include driving a vehicle. Recently the New York Times had a piece about the automation of retail, Retailers Race to Automate Stores, saying that there will be stores with “hundreds of cameras near the ceiling and sensors in the shelves help automatically tally the cookies, chips and soda that shoppers remove and put in their bags. Shoppers accounts are charged as they walk out the doors.” Customer service in call centers can be easily substituted by artificial intelligence (AI) so effectively that you may not be able to tell if you are speaking to a person or a computer. Many more intellectually based jobs such as accountants, insurance sellers and paralegals can also be more efficiently done by AI. One of the most worrisome areas where job loss will hit hard is driving a vehicle. Self-driving trucks and cars can displace many middle-aged males in the United States, in areas that are already hard hit by automation. The Great Displacement, according to Yang, is scary and happening fast.
One of the policies that can be immediately implemented is Basic Income, which Yang calls a Freedom Dividend. Yang’s proposal calls for $1,000 a month for each American, $12,000 a year. Yang suggests that the most efficient and quick way to finance a Basic Income of this kind is implementing a VAT – Value Added Tax, of around 10%, many European countries have a VAT around 20%. Yang believes a VAT is an adequate way to gather funds for Basic Income because it is charged on volume, not on profit, so that large retailers, such as Amazon, would not be able to escape it. Even though VAT would increase prices for all, when used exclusively for Basic Income it would lead to lower income people still benefiting from the policy. Yang said: “it’s going to help 85 percent of Americans, the only people that it doesn’t help are the top 15 percent who will be putting a lot more money into the VAT. The people that consume the most are the richest and with a VAT they can’t escape it, with income tax rich people are excellent at escaping it in various ways.” Yang also prefers it to a wealth tax as “people will start shifting wealth around in various ways” and would easily be able to avoid it. Yang also defends a Carbon Tax.
Andrew Yang, Melanie Friedrichs and Sean Lane
Yang has a vision of the future where, aided by a Basic Income, or the Freedom Dividend, local economies will thrive: “My vision for the future is of an artisanal economy that many people participate in, that is borne by human interests that are not trying to build the next Chipotle or Google. You create a bakery that everyone loves in your town and then you employ 10 people and everyone is happier because there is a very good bakery. Then you multiply that by a bunch of businesses. That’s the future to me. It’s impossible for more and more people to compete against the mega-corps, but when everyone has a Universal Basic Income, then we can all frequent business we enjoy. That’s the ideal vision and that’s what Universal Basic Income allows for.”
In the book, The War on Normal People, Yang speaks about time banking exchanges in local communities that already exist. According to him, that’s a way to address how people will spend their time in satisfying and productive ways, after automation arrives and Basic Income is implemented. In Brattleboro, Vermont, there is a time bank with 315 members that has already exchanged 64,000 hours of mutual work. With a time bank, each person offers whatever services they have and bank time that can be latter traded for other services that others offer within the community. It’s a way to stay busy, connected, and meet your community neighbors. Yang suggests something called Digital Social Credits, which would work in a similar way, connecting communities and providing a local exchange of services.
Yang’s campaign has started and he is ready for the challenge ahead. In his own words: “I’m going to run for president on Basic Income for the next two and a half years. The better I do, the more real Basic Income becomes for millions of Americans. We can run again in 2024, and 2028, until we win, if we don’t win this time.” Yang sees Basic Income as an urgent policy that needs to happen now as is willing to fight for it as a presidential candidate.
More information at:
Kevin Roose, “His 2020 Campaign Message: The Robots Are Coming”, The New York Times, February 18th 2018
by Liam Upton | Mar 1, 2015 | News
RegBlog, from the Penn program on Regulation
Tim Yang, “Analyzing a Universal Basic Income”, RegBlog, 9 February 2015
by Guest Contributor | Mar 18, 2024 | News
by Jennifer Ludden Photo by Frugal Flyer on Unsplash
Christopher Santiago recalls being skeptical the first time he heard about basic income — giving people cash with no conditions on how to spend it. It was 2020, when presidential candidate Andrew Yang pitched it for all American adults, and Santiago thought, “That doesn’t make much sense.”
But for a year now, Santiago has been getting $500 a month through one of the largest cash aid pilots in the U.S., and he’s come around.
The single dad of three lives in Alsip, Ill., and was one of a whopping 233,000 people who applied for the program in Cook County, which includes Chicago. (There was a lottery to pick the 3,250 participants.) As a public employee, his income is toward the upper end of the program cutoff, but he says it hardly feels like enough for a family of four.
To read the full article, click here.
by Peter Knight | Sep 13, 2023 | News
Comingle is an app under development that will unite people who want to make sure no one goes a week without income.
For a quick introduction, watch this video.
“We all need some extra money sometimes. Other times, we have a little extra to give. By connecting our finances using today’s technology, we can form a secure, anonymous network of generosity that automatically pools money and moves it to where it’s needed the most.”
In early September 2023 Comingle launched a crowndfund campaingn to raise US$75,000 to cover the development costs required to boost Comingle to the next phase, which will allow verification of user identities, detect fraud, address security concerns, and begin transferring real money on a weekly basis.
The ambitious goal is to get this launched and have at least 100,000 Americans living with a small UBI floor of around $50 a week by the end of 2025 that all those who join collectively make possible.
As of September 16, 57% of the goal had been reached with 19 days left to complete the job. Contributions are being matched (“Every time we hit another $1000 our matching donors will contribute $3000! Every dollar you donate now = $4!“). Comingle founder Conrad Shaw writes: “One of our $10K matching donors is doing a 1-1 match and remaining anonymous. The other $10K matching donor is doing a 2-1 match and is Katie Moussouris, who made a name for herself as a white hat hacker (the good kind of hacker) and is CEO/Founder of Luta Security.”
ITSA President and BIEN Member Scott Santens has a blog post supporting the campaign. He thinks is an important project, and writes that Forward Party Co-Chair Andrew Yang “dropped into one of our Spaces talking about this, and donated $5k live during the stream.”
