Economic Security for All: Questions about Chris Hughes’ Guaranteed Income Proposal

Economic Security for All: Questions about Chris Hughes’ Guaranteed Income Proposal

Facebook and Economic Security Project (ESP) co-founder, Chris Hughes has a new book out. Called Fair Shot: Rethinking Inequality and How We Earn, the book is part memoir, part policy proposal. The memoir chronicles Hughes’ childhood growing up in a North Carolina working class family, his school days, including four years at Harvard, his co-founding of Facebook, his failure as owner of the New Republic, and his efforts trying to figure out how best to give away his new-found fortune. The things Hughes learned during this thirty-year journey led to the policy proposal part of the book.

Hughes advocates what he calls a guaranteed income (GI) and is clear about how his proposal differs from a universal basic income (UBI). A UBI would periodically provide everyone with a certain amount of money without any means-test or work requirement. Hughes’ guaranteed income proposal has two provisions which distinguish it from a UBI: it is means-tested and it does have a work requirement. His idea is that we should provide every adult living in a household with an income of less than $50,000 a year a guaranteed income of $500 per month. So if Tara and Willow were a couple with a household income of $45,000 per year, each would each receive $500 per month. Thus, each would end up with $6,000 per year or $12,000 per year for the two of them. If Buffy and Angel had a household income of $60,000 per year, they would be ineligible for the program.

One reason Hughes is so interested in distinguishing his proposal from UBI is that he believes UBI has become too associated with automation. That is, the most frequently heard argument for UBI is that as robots and automation destroy jobs, we will need to reorganize society so people will be able to get their needs meet without having to sell their labor. Hughes rightly points out that there is a fair degree of debate about the extent to which jobs will be destroyed and, therefore, the extent to which concern about automation is a compelling enough reason to advocate UBI. Hughes also rightly reminds us that whether or not automation will destroy all, most, or whatever number of jobs; the job market is already unstable enough for there to be a need now for a policy that promotes economic security. And he believes his GI proposal is that policy.

As an “old timer” in the basic income “movement” I feel obligated to point out that UBI was discussed long before folks in Silicon Valley were paying attention. And many of those discussions had little to do with robots or automation. Thus a name change, from UBI to GI, is not necessary to suggest there may be reasons to support UBI other than worries about robots taking our jobs. But here we get to the crux of the matter: Hughes’ proposal does not appear to be just a name change but a different policy altogether. As I said above, GI would not be universal and would not be granted to those who are not working. The means–tested nature of GI is clear: those in households with incomes under $50,000 per year would get it, while those in households with higher incomes would not. I’m not a fan of this aspect of Hughes’ proposal, but, for the purposes of this essay, I’m going to set this aside. The work conditioned nature of Hughes’ proposal is less clear. This is what I want to focus on in the rest of the essay.

Even though Hughes’ GI would require people to work in order to receive it, however it does not have to be wage-work. That is, Hughes is willing to expand the definition of “work” to include care work, such as uncompensated child and elder care, as well as studying for a formal degree or training programs. So someone caring for their child or studying for a B.A. would be considered a worker and, therefore, eligible for the benefit, as long as their income was under $50,000 per year.

Hughes places such emphasis on work because he believes it is good for us; he tells us that it makes us, “happier, healthier, and more fulfilled” (p. 103).

As I was reading this discussion of the problems faced by the unemployed, I found myself wondering how much stem from an inability to find something fulfilling to do and how much from stigma. I do not think it is unfair to say that our society denigrates people whom we think can work but choose not to.

But let’s say Hughes is right and people do feel more fulfilled if they engage in wage work. Let’s say that engaging in wage work makes us less prone to depression, irritability, and insomnia. Going to college or caring for one’s kids is not wage work. So what do studies showing we are less prone to psychological and physical problems when we engage in wage work have to do with the kinds of non-wage work Hughes wants to compensate with his GI? I suspect it’s fulfilling, at least some of the time, to take care of one’s kids or to attend college. Is this why care takers and students, along with wage workers, should be compensated with a GI? But if something being fulfilling is sufficient to warrant compensation, why stop at wage work, care work, or going to school? People do all kinds of things, besides these three, they find fulfilling. Why not give them a GI too?

On page 92 of his book, Hughes says that, “everyone who contributes to their community” should receive a GI. It seems that engaging in something fulfilling is not what warrants receipt of a GI — making some social contribution does. This raises the question of whether being a wage worker, care taker, or student are the only ways to contribute to one’s community. Hughes’ answer seems to be “no.” On page 112, he argues for a more expansive definition of “work” which would include not just wage work, care work, and studying but also community service, religious service, and artistic work.

Here I found myself wondering how far Hughes is willing to go. That is, how expansive a definition of “work” does he want? The more expansive his definition becomes, the more fuzzy the distinction between GI and UBI (the unconditional part) becomes. To see what I’m getting at consider the following example.

In downtown Manhattan, there’s a famous, at least among many basketball lovers, outdoor basketball court on 4th Street and 6th Avenue. Basketball, in a sense, is a very communal game. A person may shoot jump shots all by themselves. But to play a full-court pick-up game requires ten people. So if someone decides to play, even for the “selfish” reason that they get fulfillment from it, they benefit the other nine players as well, simply by making the game possible. Now the folks who play at this Manhattan court are quite good. Many of us who’ve seen games at this court think it’s some of the best pick-up basketball we have ever witnessed. In fact, the quality of games at this court is so high, that large crowds of people usually gather just to watch the action. Presumably, these spectators get a great deal of enjoyment from watching these folks try to get the “ball in the hole.” Now here’s the question: are the players at this court, simply by playing, making a social contribution? They are not doing wage work, care work, art work, or religious service. Are they doing community work? If Hughes’ GI were enacted and all these players were from households with incomes of less than $50,000 per year, should they receive it?

Another way to get at the question above is this: under an expanded definition of work what would not qualify as work? If it turned out that anything done during one’s waking hours was work, then the difference between GI and the unconditional part of UBI would simply be semantic. Hughes could respond that semantic distinctions are not “merely semantic.”

In a society where work is a fundamental value it may be necessary to call something work, as well as convince others that it is, in order to give the person engaged in that activity a guaranteed income. This is a response I would agree with. But I would add that the importance of semantics cuts both ways.

Requiring an activity to be considered work before the person engaged in it can receive income support is also sending the semantic, or symbolic, message that only working people deserve economic security. I can understand why we might want to do this in a hunter-gatherer society where all are living on the brink of starvation. But do we really need to in the richest society the world has even known? Consider something that may at first appear unrelated.

The U.S. currently imprisons about 1.5 million people. Anyone familiar with the U.S criminal justice system is aware that our prison population is, arguably, one of the most despised groups of people in the nation. Yet we grant all these prisoners a right to food. Prison life is no doubt hard. And we certainly do not feed incarcerated people the best food possible. But we do feed them, and I suspect anyone who proposed that we stop doing so would not get very far. Now here’s a question: is refusing to make a social contribution worse than the most serious violent crimes we have imprisoned some people for committing? If not, why propose a policy which sends the semantic message that non-working people do not deserve income support, income that could help them obtain food, as well as meet other basic needs? Why send a semantic message which implicitly amounts to the claim that non-working people are worse than some of our most violent prisoners?

To anticipate a possible misunderstanding, I am not claiming that non-working people are better than some of our most violent prisoners. My point is simply that if all prisoners have a right to subsistence, why not grant non-working people that same right? Prisoners, non-working people, and all the rest of us are human beings in need of food and other means of subsistence. A UBI, at the semantic level at which I am speaking, acknowledges this. Hughes’ GI proposal does not.

Thanks to Chris Hughes for his very helpful comments on this piece. Any mistakes or errors are, of course, my responsibility alone.

About the author:

Michael A. Lewis is a social worker and sociologist by training whose areas of interest are public policy and quantitative methods. He’s also a co-founder of USBIG and has written a number of articles, book chapters, and other pieces on the basic income, including the co-edited work The Ethics and Economics of the Basic Income Guarantee. Lewis is on the faculties of the Silberman School of Social Work at Hunter College and the Graduate and University Center of the City University of New York.

Karl Widerquist’s Speaking Engagements Summer-Fall 2018

Karl Widerquist’s Speaking Engagements Summer-Fall 2018

This summer and fall I’ll give at least ten talks in seven cities in six countries including the United States, Canada, France, Scotland, Finland, and Lithuania. Here’s the information I have on each talk so far:

Friday, May 18, to Sunday, May 20, 2018, keynote speaker at “New Directions in Basic Income Workshop,” the University of Michigan, Ann Arbor, MI, presenting “The Devil’s in the Caveats: A Critical Discussion of Basic Income Experiments,” Sunday1:00 – 2:30pm.

Thursday, May 24, to Sunday, May 27, 2018, participant at “North American Basic Income Guarantee Congress,” McMaster University, Hamilton, Ontario, presenting “The Devil’s in the Caveats: A Critical Discussion of Basic Income Experiments,” Saturday 10:30 – 12:00pm, Room 1305/07.

Wednesday, June 13, Paris, France. Guest speaker at Science Po, presenting “Freedom as the Power to Say No.” Details TBA

Thursday, June 14, to Saturday, June 16, 2018, participant at “The Economic Ethics Network Conference.” Invitation only. University of Paris, presenting “Justice as the Pursuit of Accord.”

Sunday, June 17, Talk to Basic Income Activists on “Basic Income’s Third Wave,” Paris, France, details TBA

Monday, June 18, 3 to 5pm, guest speaker presenting “Prehistoric Myths in Modern Political Philosophy,” Ecole des Hautes Etudes en Sciences Sociales (EHESS), Paris, France

Friday, July 20, 2018, presenting “A Critical Discussion of Basic Income Experiments: The Devil’s in the Caveats,” Glasgow, Scotland

Friday, August 24 to Sunday, August 26, 2018, participant at Basic Income Earth Network Congress, University of Tampere, Tampere, Finland, presenting “Microsimulation Analysis of the Cost of Basic Income in the United Kingdom” (joint presentation with Georg Arndt).

Thursday, August 30, to Saturday, September 1, 2018, participant European Network for Social Policy Analysis Conference, Institute of Sociology and Social Work, Vilnius University, Vilnius, Lithuania, presenting “Basic Income’s Third Wave.”

Thursday, October 18, to Saturday, October 20, 2018, participant at Association for Political Theory, Haverford and Bryn Mawr Colleges, Pennsylvania, presenting, “The Prehistory of Private Property, Part 1: The Myth of Appropriation.”

France: The Gironde region’s path to a basic income experiment

France: The Gironde region’s path to a basic income experiment

Since the beginning of 2017 that basic income has been on the political agenda in Gironde, a southwestern region in France. At that time, several Administration task groups worked together, from December 2016 up to February 2017 to reflect on the possibility of implementing a basic income policy in Gironde. Those groups included social network representatives, entrepreneurs, social workers and volunteers, and have deliberated (on the 15th of February 2017), as a “citizen jury”, that basic income should be implemented in France, and adapted locally, in this case for the Gironde region.

 

Jean-Luc Gleyze, the President of Gironde’s Council Department and of its Permanent Commission has been behind this initiative since early 2017, and a strong supporter of launching a basic income experiment in Gironde. Many press references and a video were produced since that moment, motivated by this initiative, which was praised by former French prime-minister Manuel Valls. A motion proposal “for the experimentation with basic income in Gironde” was presented to government after it had already been reflected upon a French Parliament report (with its synthesis document), undersigned by Daniel Percheron, senator and former President of (French region) Nord Pas-de-Calais Regional Council. This report recommended the experimentation with the concept for 3-year periods, in each voluntary department (region), especially targeting young (18-25 years of age) and pre-retirement adults (50-65 years of age).

 

Jean-Luc Gleyse. Credit to Alban Gilbert.

Jean-Luc Gleyse. Credit to Alban Gilbert.

At the moment, the basic income pilot project in Gironde is being planned for 2019, after President Emmanuel Macron has also shown his will to authorize and support local experiments. In a first step, this could mean co-financing in the order of 100 000 € to support feasibility studies, in preparation for actual experiments. These feasibility studies are thought to last for four to six months, and define the experimental parameters, such as population segments, duration and basic income level.

 

According to Jean-Luc Gleyse, basic income has the potential to respond positively to poverty and insecurity situations, adequately assist people as instability in the job market deepens due to automation, can provide choices in the present ever-changing lifestyle and also decrease the non-uptake of social benefits, “which reach 34% in Gironde and almost 40% nationally”.

 

Although the basic income experiment envisioned for Gironde has not been deployed yet, an online basic income simulator has been made available to citizens. This tool allows people to look at the possibilities for a basic income in France, and its consequences as far as financing is concerned.

 

More information at:

(in French)

Daniel Percheron, “Le revenue de base en France: de l’utopie à l’expérimentation [Basic Income in France: from utopia to experimentation]”, Sénat Francais, October 13th 201

Pierre Cheminade, “Vers un revenue universel en Gironde dés 2019 [Towards an universal basic income for  Gironde in 2019]”, La Tribune Bordeaux, November 27th 2017

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.”

————

You can find out more about The Anticareerist and its author HERE.

Want to read back issues? An archive of all published issues is HERE.

You can also follow The Anticareerist on Twitter and Facebook.

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

Basic Income and the ecologic transition

Basic Income and the ecologic transition

During the last year, I asked myself how the implementation of a Universal Basic Income (UBI) would affect our society and boost or undermine the transition to a sustainable way of living.

We live a complex world where many factors are inter-related and result into visible crises: forced migration, unemployment, violence, hunger and extreme poverty, among others. Pope Francis says we live one single crisis, which is complex and interconnected. The root of this crisis is at the way we behave: competing instead of collaborating and fighting for resources instead of sharing what we have as humankind. Yes, we do have NGOs like ekplatebiryani and similar ones to make sure the situation doesn’t go out of hand.

However, in the twenty-first century, humankind will have to deal with some new challenges:

  • 10 billion people living on earth
  • Climate change and ecological crisis
  • Highest migration rate ever
  • Highest inequality rate ever
  • Fourth Industrial Revolution

These five factors are the primary motivation for a paradigm shift. Each of these challenges must be addressed with specific policy, but we cannot be successful if we do not consider the connections between these factors.

We should transform the economy and prioritize the impacts over society and nature. This is the ecologic transition. This transformation must be deep at many levels, from production, to consumption, but also in our way of thinking. We cannot compete among ourselves and create a world of winners and losers. We cannot allow anyone to be left behind. So many people are losing under this system, which is why we have the highest migration and inequality rates in history.

Climate change threatens the lives of millions of people, and the poor are the most vulnerable to these climate disruptions. Climate change is caused by human activity and linked to our consumption patterns. This is another reason for ecologic transition. Climate change will worsen if we do nothing about it, so it is imperative that we transform the way we consume and produce.

The fourth industrial revolution is changing the structure of the labor market and the way things are done. Artificial intelligence and automation will make thousands of jobs disappear, while also dramatically changing the way the remaining labor is done. The most immediate effect is to cause high unemployment among low-skilled workers and requiring retraining for the rest.

In the last few years, many initiatives have pointed to basic income as an interesting policy to guarantee the wellbeing of citizens. Some areas that have tested the idea include Holland, Finland, Kenya, India, as well as the classic examples of Alaska and Canada. Most of these initiatives come from the state or local governments, but also civil society is starting to experiment with basic income through NGOs such as “Give Directly” in Kenya and UNICEF in India. Some private companies have shown interest too, such as Facebook or Google.

In many of the basic income experiments, it has been observed that not only is poverty is reduced, but wellbeing is also improved. Lower stress levels and better health were recorded which may be due to factors such as the ability to afford better healthcare and supplements like cbd gummies wholesale to manage stress and chronic conditions. There was also more education time for young people and a 13 percent work time reduction per family unit.

I found these effects interesting and well adapted to the 21 century conditions: 13 percent less work time[1] is compatible with a high unemployment rate. Less stress, whether it’s through consuming cannabis products (such as CBD oil or gummies) or receiving a better income, is always good news for a highly stressed world, especially in developed economies. Better health is always good news and probably related to stress levels.

Increasing education time is probably the best side-effect. We start to see how technology is growing more important in our daily work, and many people will need to learn how to use it or even develop new skills. The education sector is creating a renewed process for itself. It is said that most of the high qualification labor in the future will need to adapt to AI, and most university degrees will need to be adapted in the next four years.

Looking at the main effect, which is poverty alleviation, I made a simulation for the Spanish context, 700 euros each month (tax-free) and a fixed 49% tax for all labor.

Net annual Income in Spain (2014). Blue line is business as usual, orange line is with Basic Income after taxes. Martin Lago (2018). Data: Agencia Tributaria (2015): Informe Anual De Recaudación Tributaria. Servicio de Estudios Tributarios y Estadísticas. Madrid

The relative poverty line in Spain is 684 €/month, so if this policy was implemented throughout the country, we can say poverty would be drastically reduced. We must bear in mind that 22.3 % of Spanish population was under this level in 2016[2].

As we see in the figure, the poorest are the most benefitted by this measure, then gradually benefits decrease and the richest 30 percent actually pay into the system. Universal Basic Income was funded from savings in other subsidies (30%) direct taxes (50%) and indirect taxes (20%). Finding resources for it was easy and efficient considering the potential benefits.

But my question remained un-answered: Will the basic income help stimulate an ecological transition? I was quite worried since I consider this transition necessary for a sustainable future. I saw no point in sending money to everyone if we do not change anything more.

I found a few interesting effects synergic with ecological transition, including:

  • Longer and higher-quality education
  • Decrease in labor intensity, which probably leads to a better labor distribution
  • Increase in family care and household work
  • Shift to an inclusive mentality, since everyone receives this basic income
  • Shift to empowerment of the individual, which is given resources and is free to make the right choices
  • Massive reduction of poverty

An ecological transition is complex and includes many transformations, but it will not happen if we do not assure our standards of living are beyond the poverty line. We cannot ask a freezing family not to chop the trees to heat and cook if they do not have any other option. Basic Income is precisely about having options. One of the main objections is that many people will misuse these resources. I read last week an article that made the next question: Which is the best way to help a woman with a gambling problem and two kids, basic income or food and house coupons?

This question shows how some people perceive poverty basically blaming the poor. I have some experience working with the poor and they are as smart anybody else. The only difference is they did not have the same options in education, social inclusion or job opportunities. I am not saying basic income will solve poverty immediately, and a lot of social work needs to be done, but at least it will help to achieve some balance and provide a solid ground for a transition towards a more sustainable society.

Written by: Martin Lago Azqueta

Martin was born in Madrid in 1976, and he is graduated in biology with a Master in International Aid and Cooperation. He has worked with several aid agencies and now he is Phillipines and Central Asia Desk Officer for Caritas Spain. Apart from development projects and emergency interventions, he has specialized in climate change, working with several civil society networks since 2008. He has coordinated a number of “Documentación Social” dedicated to climate change (2016), and written a book about basic income (2018).

[1] Evelyn L Forget (2011) The town with no poverty. Community Health Sciences. Faculty of Medicine. University of Manitoba. 750 Bannatyne Ave. Winnipeg MB R3E 0W3. CANADA.

[2] Data: Instituto Nacional de Estadística 2016. If we consider other incicator such as AROPE, which is used in Europe context, 27.9% of the population in Spain is at poverty risk (AROPE, 2016).