The California Research Bureau’s remarks on UBI

The California Research Bureau’s remarks on UBI

The California Research Bureau hosted a panel on March 23, 2017 regarding current issues facing the state of California, and one of the topics that arose was Universal Basic Income.

The panel, hosted by Anne Neville and featuring three experts — Nicholas Davis; Rachel Hatch;  Irena Asmundson — focused on various topics of inequality facing Americans in the state of California. From housing, to health care, to inequality itself, many of the themes focused on how to reshape and adjust society for the wellbeing of its citizens. At one point during the panel, the topic of Universal Basic Income arose, and all three experts took time to explain their views on it during a roundtable discussion.

Nicholas Davis, who was the most connected to the concept of a basic income, spoke in favor of it. Davis argues there are three reasons why a discussion on UBI is essential: the first is about creating security for people in current social climates of instability and insecurity; the second reason focuses on empowering personal freedom, to escape the issues of governmental paternalism; and the final point addresses social justice, which focuses on inclusiveness so that the gains of technology are shared with all instead of a few.

Irena Asmundson then took the response to Davis’ remarks, talking about the economic cost to introducing a UBI. The representatives main point regarding affordability for a UBI in California in terms of taxation would be that the state would need to obtain four times the amount of money it currently does from citizens. However, the largest form of aversion Asmundson expressed was on America’s failings to introduce affordable housing and health care to its citizens, and that these issues need to be solved before a UBI can be considered feasible. In her view, she believed the failure at addressing baseline needs like housing and health care to be far more crucial than assuring a minimum floor, which in comparison UBI may seem more nuanced and not direct at addressing those issues.

Finally, Rachel Hatch expanded upon Asmundson’s position on inequality, and worried that a UBI may not deal with the issue of wealth inequality. Hatch believes a basic income may assure people a minimum financial base, but that it will do very little to address systemic inequality, where just eight men own as much wealth as the bottom half of the human species.

Watch the alluded conversation below.

 

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The Piketty Observation Against the Institutional Background: How Natural is this Natural Tendency and What Can Basic Income Do about it?

The Piketty Observation Against the Institutional Background: How Natural is this Natural Tendency and What Can Basic Income Do about it?

The publisher of a paper I wrote in 2015 has now given me the right to share the published version of my own article without charge. (That is, without them charging me for sharing my own work with you.)

The title is, “The Piketty Observation against the Institutional Background: How Natural is this Natural Tendency and What Can We Do about it?” Here’s the abstract:

Thomas Piketty’s recent book, Capital in the Twenty-First Century, provides a great deal of empirical support for the observation that the rate of return on capital (r) is greater than the growth rate of the economy as a whole (g); i.e. “r > g”. From this observation, Piketty derives two important insights: entrepreneurs eventually become rentiers, and except during unusual circumstances, inequality tends to rise over time. This paper views Piketty’s observation against the institutional setting that has prevailed over the period of his study and makes two additional observations. First, whether Piketty’s two insights follow from his observation depends not simply on whether r is greater than g, but on whether the difference between the two is greater than the consumption of the capital-owning group. The relative size of capitalists’ consumption and capital income is not obvious, and therefore, more evidence is needed to confirm the connection between Piketty’s observation and his insights. Second, the statement r has been greater than g is more accurate than simply r is greater than g. Whether r continues to exceed g depends crucially on the political and institutional environment in question. Economists tend to view one specific institutional setting, a version of laissez faire, as natural. But there is no natural set of property institutions, and those that have prevailed over the two centuries of Piketty’s observations are extremely favorable to capital owners. Awareness of the flexibility of potential property institutions raises many ethical questions and makes many tools available to address inequality – one of the most obvious being the taxation of rent on capital distributed as a basic income

https://fortunedotcom.files.wordpress.com/2014/08/current_970x1292.jpg?resize=284%2C378

Citation Information: Karl Widerquist (2015), “The Piketty Observation against the Institutional Background: How Natural is this Natural Tendency and What Can We Do about it?Basic Income Studies 10(1): 83–90.

ONTARIO, CANADA: Conference to examine labor market impact of guaranteed income

ONTARIO, CANADA: Conference to examine labor market impact of guaranteed income

As the Canadian province of Ontario prepares for a three-year trial of guaranteed minimum income (GMI), the Centre for Labour Management Relations (CLMR) at Ryerson University in Toronto is holding a conference to explore the economic motivations and labor market consequences of such a policy. The conference, The New Economy and a Basic Income Guarantee [1], is a private, registration-only event. According to CLMR’s website, the event will bring together over “250 representatives from academia, community, government, industry, law, unions and workers.”

Conference participants will investigate topics including the following: changes in the nature of work and employment that are generating pressure for new forms of the social assistance; theoretical and empirical work on GMI, with a focus on “intended and unintended labour market impacts”; the relationship between a GMI and labor and tax policies in the province; economic, political, and social factors that motivate Ontarians towards “administering, designing, organizing, planning, and receiving” a GMI.

The all-day event will take place on Monday, May 29.

Part of Ryerson University’s School of Management, CLMR promotes relations between labor and management that lead to (in the word of its mission statement) “greater productivity and profitability for businesses, improved job and income security for workers, and decreased inequality and injustice for all of society”. The center funds research projects in various disciplines and provides education and training to both students and professionals.


Photo (at Ryerson University) CC BY-NC-ND 2.0 wyliepoon

Text reviewed by Dave Clegg

[1] To minimize confusion, I use the term ‘guaranteed minimum income’ rather than ‘basic income guarantee’ (cf. my editorial “Basic Income’s Terminological Quagmire”). A basic income guarantee is often defined in American and Canadian contexts as an unconditional guarantee to all members of a community of an income sufficient to meet basic needs. This definition is narrower than BIEN’s definition ‘basic income’ in one dimension–it requires a minimum amount of the income guarantee–while broader in another, in that is not does require that payments be universal and of uniform amount (that is, it encompasses programs in which the amount of the benefit is reduced with earned income, as in Ontario’s forthcoming pilot program).

US: Boston Review Publishes Forum on Basic Income

US: Boston Review Publishes Forum on Basic Income

Boston Review, an American political and literary magazine, has published a forum on basic income as the periodical’s spring 2017 print edition. It is also freely available online.  

The forum begins with a lead article by Temple University law professor Brishen Rogers (“Basic Income in Just Society”), with responses from Roy Bahat, Peter Barnes, Annette Bernhardt, Juliana Bidadanure, Diane Coyle, Patrick Diamond, Philippe van Parijs, Connie Razza, David Rolf, Tommie Shelby, Dorian T. Warren, and Corrie Watterson.

Introduction to the special edition:

Technology and the loss of manufacturing jobs have many worried about future mass unemployment. It is in this context that basic income—a government cash grant given unconditionally to all—has gained support from a surprising range of advocates, from Silicon Valley to labor. Our contributors explore basic income’s merits, not only as a salve for financial precarity, but as a path toward racial justice and equality. Others, more skeptical, see danger in a basic income designed without attention to workers’ power and the quality of work. Together they offer a nuanced debate about what it will take to tackle inequality and what kind of future we should aim to create.

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Boston Review has published articles about basic income occasionally in the past, and published several recent articles on the topic outside of the forum (including “No Racial Justice Without Basic Income” by the California-based social justice group The Undercommons and “Basic Income Works” by Paul Niehaus and Michael Faye of GiveDirectly).     

According to Wikipedia, the magazine has a circulation of about 62,000.


Reviewed by Dave Clegg

About Indepentarianism

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Indepentarianism is the political ideology associated with the political theory called “Justice as the Pursuit of Accord” (JPA). I (Karl Widerquist) defined JPA and outlined its theory of freedom in my 2013 book, Independence, Propertyless, and Basic Income: A Theory of Freedom as the Power to Say No. It argues that the promotion of freedom in a society with private property requires, among other things, an unconditional basic income in part, on grounds that it is wrong to put conditions on anyone else’s access to the resources they need to survive. A worker needs the power to say no—not just to any one job, but to all jobs—to enter the market place as a free person and not as a forced laborer. Although this theory is drawn from principles stressing freedom in the most negative sense of the term, it is not associated with theories that use freedom to justify economic inequality. It is committed to the idea that economic and politically disadvantaged people in every society are the least free and that the promotion of freedom in the most meaningful sense requires far greater equality of income, wealth, and political power; greater respect for political dissenters, better stewardship of the environment, and other policies. I am planning to layout the JPA theory of property rights more fully in a future book entitled, Justice as the Pursuit of Accord.

The name, “Justice as the Pursuit of Accord,” comes from the belief that most prevailing theories of justice in political philosophy today are utopian in the sense that they ignore the problem of reasonable disagreement about the basic principles of justice. Social contract theory imagines all the reasonable, rational people in the world agreeing to a hypothetical social contract outlining what justice is. Anyone who doesn’t agree in practice can be dismissed as irrational or unreasonable. Natural rights theorists do not believe that justice comes from any hypothetical agreement. It is just whether anyone agrees or not, but they believe that any rational, reasonable person can discover the true principles of justice by observation and contemplation and anyone who doesn’t agree can be dismissed is irrational or unreasonable. Even the best philosophers are not good at recognizing the difference between reasonable and unreasonable dissent.

These utopian aspects of the leading theories have produced dystopian consequences. Philosophers have misled people into the belief that everyone shares in the benefits of modern society. No matter how disadvantage a person maybe, we are told to believe that they are better off because the government and the property rights system exist. The truth, as Grant S. McCall and I argue in our 2017 book, Prehistoric Myths in Modern Political Philosophy, is that our institutions harm people. Many disadvantaged people are probably worse off than their ancestors were 20,000 years ago.

JPA makes no statement whether there might be a theory of justice to which all rational, reasonable people should or would agree, but it is based on the belief that we are far from the point of discovering such a theory. A true accord exists only if all people are fully autonomous and all literally agree to the social contract or some other basic structure such as a set of natural rights. The essential political problem in the world today is severe disagreement between reasonable people about the most basic principles of justice. We must always pursue that accord, but we should be aware we are unlikely to reach it. Therefore, whoever makes the rules always forces them onto reasonable dissenters. The ruling coalition’s right to make the rules stems both from the agreement of the majority and from their effort to create the minimum negative interference with dissenters. This constraint, of course, requires the governments of the world to treat the disadvantaged and disaffected people of the world much better than they do now—including a payment by those who are most advantage under the existing structure to compensate those who are most disadvantaged under it.

The name, “indepentarianism,” stresses the central role that freedom as independence plays in JPA. The book, Independence, Propertyless, and Basic Income: A Theory of Freedom as the Power to Say No, argues that an individual’s status as a free person is best understood as “Effective Control Self-Ownership” (ECSO freedom, pronounced “exo-freedom” as in external-freedom). In essence: status freedom is the power to say no. An independent person is free from all direct and indirect force to actively serve the interests of others. You can tell a person: go do what you want over there, but if you make it impossible for them to do live as they want without serving some other group of people, you have taken away their status as a free person.

In this sense, most working people in the world are not fully free. If they had direct access to resources, they could hunt, gather, fish, farm, invest, or start a business or start some manufacturing venture by themselves or with whoever wanted to work with them. Instead, the rules of property create “propertylessness,” which in turn indirectly forces the vast majority of people to ask for a job from someone who controls enough resources to give them one. That is, it forces one group of people into become a subordinate of at least one member of another group of people—because we have robbed them of the power to say no to whatever jobs are on offer.

There’s nothing wrong with employment—as long as you choose it freely. Just like there’s nothing wrong with sex—as long as it’s not rape. A choice of bosses without the freedom to say no to all of them is not freedom from forced labor just as a choice of sexual partners without the power to say no to all of them is not freedom from rape.

One of the main reasons I defined indepentarianism as a new ideology is the lack of attention that most of the prevailing political ideologies pay to the injustice of indirectly forced subordination.

The book argues that Universal Basic Income (UBI) is the best way to support ECSO freedom in the modern economy. But UBI support is not synonymous with indepentarianism. Someone could conceivably support indepentarian principles without believing they are best upheld by UBI or a similar policy. Although I hope all UBI supporters will have some interest in indepentarianism, I expect that most of them are not indepentarians. For example, one of the architects of the UBI movement, Philippe Van Parijs, argues for UBI on the theory of justice and/or the ideology he calls “Real Libertarianism,” which is based on very different principles than JPA.

Prehistoric Myths in Modern Political PhilosophyJPA also differs from other political theories in its treatment of property rights in external assets: that is, assets external to the human body including natural resources and the things humans make out of them. Egalitarians tend to assume external assets are naturally collective property. Left-libertarians tend to assume that external assets should naturally owned individually in equal shares. So-called “libertarians” tend to assume external assets are natural unowned, but ownable by the first person to “appropriate” them by some procedure that tends to lead to highly unequal ownership. JPA assumes resources are “naturally” unowned and unownable. The only way to create a truly justice property rights system would be through a property rights accord, which is probably impossible. In the absence of that accord, the ruling coalition is always forcing a system of property onto reasonable dissenters. Therefore, they have to minimize the negative interference that their system of rights imposes on dissenters and future generations. This, responsibility, I argue motivates both a strongly egalitarian and environmentalist property rights system.

I plan to layout JPA property theory more fully in a future book, entitled, Justice as the Pursuit of Accord. It will argue that this responsibility for an egalitarian property rights system requires a UBI high enough not only to maintain ECSO freedom but a UBI set at the highest sustainable level. However, I suspect that not everyone who agrees with the basic principles of indepentarianism will agree with this part of the argument.

I’m very interested in what people think—for and against indepentarianism. I’m especially interested to know whether there are other indepentarians out there. You don’t have to agree with all I’ve said here to call yourself an indepentarian. If you’re in agreement with enough of it to use the term, please say so in a comment. If you’d like to know more about it, please contact me at karl@widerquist.com. I am not interested in creating an echo chamber. I’m interested in respectful dialogue with people taking these ideas in their own directions. I’m also greatly interested in people who criticize any aspect of valetudinarianism.

All posts from my blog, the Indepentarian
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-Karl Widerquist, Begun in New Orleans, completed at Cru Coffee House, Beaufort, North Carolina, May 21, 2017