by USBIG | Jan 23, 2017 | News
Karl Widerquist, co-chair of the Basic Income Earth Network and long time Basic Income advocate, will give six talks in five days in the United Kingdom.
Karl Widerquist
He will discuss Basic Income at a graduate student seminar at the University of Edinburgh, in Edinburgh Scotland from 11:00 to 12:00 on January 26. This event is invitation only.
At 16:00 to 18:00 that day, Widerquist will participate in a launch of his new book, Prehistoric Myths in Modern Political Philosophy (Edinburgh University Press, 2017, coauthored by Grant S. McCall of Tulane University). Widerquist will offer an overview of the book, followed by comments from Dr Leila Sinclair Bright (Anthropology, University of Edinburgh), Dr Simon Hope (Philosophy, University of Stirling) and a Q and A. The event is sponsored by the Foundations of Normativity Project at at University of Edinburgh. It will take place at S1 in 7 George Square, Edinburgh and will be followed by a wine reception sponsored by Edinburgh University Press. More information and preregistration is available online at Eventbrite.
On Saturday, January 28, Widerquist will speak twice at the Conference, “Basic Income: Real Social Security,” Kelty Community Centre, Kelty, 10:30 – 14:00. This event will be the launch of the Citizens Basic Income Network Scotland (CBINS) and will investigate the feasibility of a citizen’s income for local politics in Fife. It will be attended by more than 100 people. Other speakers at the event include Ronnie Cowan and Alex Rowley, both members of the Scottish National Parliament; Professor Mike Danson, Heriot-Watt University; Maggie Chapman, of Scottish Green Party; Paul Vaughn, Head of Community and Corporate Development, Fife; and many others. A news report at Common Space, entitled “Fife to open investigation into citizen’s income as MP attends launch event,” has additional information about the upcoming event.
On Monday, January 30, Widerquist will deliver a public lecture entitled, “Basic Income: the centrepiece of a just society,” as part of an event from 13:00 to 15:00 at Manchester Metropolitan University (MMU). The event is hosted by Steady State Manchester and the Research Center for Social Change and Community Wellbeing at MMU. Details about Widerquist’s lecture, including registration information, are available on EventBrite. The event is free and open on the public.
Finally, Widerquist will present again on his latest book, Prehistoric Myths in Modern Political Philosophy, at the Politics department in the Arthur Lewis Building at Manchester University from 16:00 to 17:30. This event is invitation only.
by Roland Duchatelet | Jan 18, 2017 | Opinion
Finding the money to pay for our social security is becoming more difficult, because paid work is being replaced by robots — the financial foundation of the social security system is crumbling. This is true whether we talk about financing basic income or any other social security system. Increasingly, automation is replacing “productive” jobs. There is still room to create jobs in basic services. However, such jobs do not create enough “added value” to “contribute” to the financing of our social security system. We are happy that these new jobs provide an income to those families. But it is too far stretched to believe that prices for such “proximity” services, helping each other, can be inflated by social security contributions.
Because the distribution of purchasing power is essential to fuel our economic system, time has come to search for other sources of funding, other than “social security contributions” from labour.
An obvious tax-free way to help fund social security is to reduce the cost of public administration and public services through productivity gains. Another tax-free way is to use the profits of state owned companies to fund social security. Many countries own companies, in full or in part, such as in transportation, mobility, housing, banks, car manufacturing, electricity, water distribution, telecommunication etc. Some of those companies do well, others do not. In most countries, the sum of the profits (and losses) derived from those state-owned companies is low in comparison to the cost of the social security system. Sovereign wealth funds are a special category of state owned companies. Their goal is to generate profit out of the collective savings by the country to cover future social security expenses, like retirement benefits, but also to conduct economic stimuli programs in periods of economic decline.
This induces a discussion regarding to which part of the social security should be funded by savings and which part should come from “redistribution” (sometimes referred to as “repartition”). There are both public and private schemes to fund retirement benefits out of savings. However, in most countries repartition funds the biggest part of the retirement budget. In most countries, the non-retirement social security benefits like child allowances, unemployment, illness, and health care are almost entirely funded by redistribution. It is largely recommended that no matter what state your country’s economy is in, you should always save money yourself for your retirement too. It is possible that you might become incapacitated and unable to decide how this money is handled due to old age, therefore electing someone to have power of attorney on your behalf is also a crucial part of planning for your future. You can learn more about power of attorney here.
Very little academic work has been done on the ideal mix of social security funding between savings or repartition. Imagine a social security system which would be completely funded by (public and private) savings. That would be a huge challenge for any economic system because the percentage of required savings in the real economy would be extremely high. Moreover, there would be huge asset inflation leading to high volatility in stock markets and perceived personal wealth, this in turn yielding high instability in spending in the real economy. The short answer therefore is that the part of savings in our social security system should be relatively low.
Some defend the idea of money creation to fund basic income. The problem with this proposal is that it supposes an expanding economy while the population in most European countries are starting to shrink.
What would happen if we dig a hole into the ground and we discover tonnes of gold, gold available in massive quantities, just like water? What would be its value? Except for a few industrial applications, gold is useless. The reason it is used in jewels is based on its scarcity rather than its beauty.
However, we found something more useful while digging: oil. It can be used to make plastics and all sorts of other useful materials. Moreover, it can be used to produce heat or electricity. In oil or gas-rich countries the oil industry is massively contributing to the state income: social security is funded, at least in part but often completely, by this “black gold.”
Astonishingly, so far, the benefits of the black gold bonanza were only moderately used in countries which do not have these natural resources. They could have levied far higher import or consumption taxes on oil products than they actually did.
Higher taxes on energy consumption is an obvious way to finance social security in 2017, rather than demanding low income workers to share a big part of their small income to fund their health care and future retirement. Such a tax would surely reduce energy consumption and lower CO2 emissions. What is wrong with that? Either way when it comes to finances and especially retirement in our day in age now, more people are in fear of their own instability, if you’re one of these people you should be looking at ways to increase your retirement pot.
Maybe there are other “good” taxes? In Macau, the gambling tax, which is mainly contributed by visitors, finances a yearly basic income for all inhabitants as well as a fair share of the health care system. While in Sweden, their gambling tax seems to be in order to regulate their gambling market, preventing it from spiraling. You can read more here – https://battrenyheter.se/artikel/spelskatten-taljer-guld-at-svensk-ekonomi/. Different countries require gamblers to file their winnings in different ways, so it’s important for people to check their country’s regulations on gambling income. For anyone who is interested in bringing in some gambling income, it might be worth looking for an online livemobile66 slot game. That will give users the option to play for money, allowing them to start bringing in some gambling money.
Any other taxes?
Taxes should fulfill 3 requirements:
- They should be significant enough such that the cost of enforcing and collecting them is small compared to the revenues.
- They should be socially desirable. For example, a tax on exchanging services with each other is undesirable. A tax on cigarettes is a very good tax, a tax on alcoholic beverages as well, just like a tax on electricity or oil products.
- They should be difficult to avoid or defraud.
Why not a smart tax on robots? For example, a tax on products made by robots, while it doesn’t matter if those products are made in the country or elsewhere. However, even if a smart phone would cost twice the current price, we still would buy it, just like we would buy our PC or fridge at twice the price. The easy way to implement such a tax in practice is to increase the value added tax or the sales tax on such products. The goal is to replace the “social security contributions” on low wage labour, because tax on low paid jobs is a bad tax. The problem is that the political world is not aware of that yet.
The replacement of high added value jobs by robots undermines the current mechanism of redistribution of wealth, such that some political voices emerge which are pleading to reduce social security benefits. We need to find a better way to fund our social security. This is essential to win the battle for basic income.
by Kate McFarland | Jan 17, 2017 | News
Juliana Bidadanure, Assistant Professor of Philosophy at Stanford University, has designed a graduate seminar on the philosophy of basic income, which she is currently teaching for the winter term.
According to the official course description, the seminar will address questions such as the following: “[I]s giving people cash no strings attached desirable and just? Would basic income promote a more gender equal society through the remuneration of care-work, or would it risk further entrenching the position of women as caregivers? Would alternative policies be more successful (such as job guarantees, stakeholder grants, or a negative income tax)? How can we test out basic income? What makes for a reliable and ethical basic income pilot?”
The seminar will analyze and critique basic income from multiple perspectives in political theory, including feminism, liberalism, republicanism, communism, and libertarianism. Initial readings include classic works by Philippe van Parijs and responses from his critics. Subsequent sessions will address contemporary philosophical work on basic income, as well as potential alternatives, such as job guarantees. Additional topics include empirical work on the health (and other) effects of basic income, the role of automation in motivating basic income, and basic income in relation to gender and racial justice, among others.
Explaining why she was inspired to develop the course, Bidadanure says, “It has been my dream for a while to teach a class on the Philosophy of Basic Income. First, because I am committed to the idea that everyone has a right to an income and because I think that UBI deserves serious treatment; second, because I think it is a great lens through which one can teach Political Philosophy. There is great writing for and against basic income from within pretty much each and every school of political thought. And so my idea was to introduce students of a variety of disciplines to a broad range of writers in political philosophy by focusing on UBI. Given the recent interest in Basic Income in the US, including by computer scientists, engineers and economists, I thought that the timing was right to launch the class!”
On February 8, a special panel on basic income experiments will be held in connection with the seminar.
The panel will feature guests Guy Standing (Professorial Research Associate at SOAS, University of London; BIEN co-founder), Elizabeth Rhodes (Research Director of Y Combinator’s basic income experiment), and Joe Huston (Regional Director at GiveDirectly). Standing, Rhodes, and Huston will speak about basic income research in (respectively) India, Oakland, and Kenya. The event will be presented as a roundtable discussion and open to the public. More information on this event is available here.
Reactions from Students
Although housed in the Department of Philosophy, the seminar spans topics of interest to students in many disciplines. The seminar group is constituted by 10 enrolled participants as well as a further 10 auditors, comprising students of philosophy, political science, psychology, economics, computer science, engineering, and business.
Asked about his interest in the seminar, one participant, a PhD student in Economics, remarks, “Basic income is such a hot topic, but I’ve not come across much rigorous academic thinking on the topic, in any discipline. I now discover there is a whole bunch in philosophy, which I was unaware of and which is really exciting!”
Commenting on his reactions after the first session, he adds, “It’s awesome that the class is about a third economists, a third philosophers, and a third computer scientists – it seems like the venue for a truly exciting exchange of views; and the arguments for and against basic income are so much richer and more diverse than this economist expected!”
Another student in the seminar, Sage, is currently working towards a masters in Symbolic Systems while also finishing an undergraduate degree in Computer Science. Her interest in the topic derives from her work in the technology sector:
“My masters thesis is a work of political philosophy analyzing the responsibility of tech companies to help those in poverty. I am interested in Universal Basic Income because it has grown increasingly popular in the US due to the fear that one day all of our jobs will be completed by robots. I am interested in exploring the other reasons for Universal Basic Income and determining if it is a viable choice in the U.S. given our trajectory in the tech sector. I was impressed by how diverse our class was by region, interest, and background. Having the opportunity to discuss topics in basic income with students so different from me is a fantastic opportunity to round out my research.”
Anusha, a graduate student in Computer Science says her love for data structures (especially the top view of binary tree) made her focus on natural language processing and computer vision. She became interested in the seminar due to her background in AI:
“I was really interested in this seminar because Universal Basic Income has been receiving a lot of attention lately, especially in the Computer Science and AI communities, due to the potential impacts of automation on the future of work. There have also been a lot of discussions around the joint responsibilities of Silicon Valley and policymakers to help those whose jobs are most at risk. I’m really excited about this seminar because it addresses Universal Basic Income from several different perspectives, and I’m eager to learn about the various arguments for and against UBI from those standpoints.”
Nishith, an undergraduate senior in Computer Science who works on computer vision and reinforcement learning, became interested in UBI following a discussion of the economic impact of self-driving trucks and President-Elect Donald Trump’s emphasis on bringing manufacturing jobs back to America. He is excited by Bidadanure’s seminar, adding, “I was surprised to learn that discussions about UBI need not revolve around automation (as they do in Europe) and had a great time talking about the potential benefits and pitfalls of this proposed policy [at the first class meeting].”
Dr. Bidadanure, who holds a PhD in Political Philosophy from the University of York, has research interests at the intersection of philosophy and public policy.
She has written on the theory and practice of equality, including, in particular, age-group justice and what it means to treat young people as equals. She has written on the specific arguments to give a basic income to young adults as well as on hybrids of basic income and basic capital.
Bidadanure plans to teach an undergraduate course on basic income at Stanford in the next academic year. She is also working to launch a basic income research initiative at Stanford as part of the Center for Ethics in Society in 2017.
Reviewed by Genevieve Shanahan.
Information and photo provided by Juliana Bidadanure.
by BIEN | Jan 16, 2017 | News
Councilors of the small Ontario town of Smiths Falls voted on December 19 last year to reject participation in its province’s basic income pilot, to the objection of residents and the town’s mayor. A petition requesting a re-vote is currently circulating online. The story begins, however, in 2008.
That year The Hershey Company shuttered its Canada operations, at the time based in Smiths Falls, largely for cheaper Mexico-based labor. This exit of the area’s biggest customer precipitated the same by other businesses, and although the ensuing purge of jobs merely reflected a manufacturing decline already underway in the province, the disappearance of five hundred positions at Hershey’s alone, accounting for nearly 6% of the town’s population, catalyzed especially forward-looking pain. That year the town operated at a surplus of C$11.2m, and by the town’s most recent reported fiscal year, its once budget excess had trudged through increasingly tight leverage to a deficit of C$1.3m (albeit improved since 2013). Today the town struggles with unemployment above the national rate, and a third of children live below the poverty line.
Given also an aging population and petering labor force – per census data the town’s median age increased by 2.1 years in the five years leading up to 2011, and the overall population declined by 2% – it could be in the interest of Smiths Falls’ residents to entertain a basic income system. Indeed the petition created by resident Carol Anne Knapp has so far gathered 113 supporters, with a goal of one thousand. This is despite the council’s three-two vote, with two councilors absent, against mayor Shawn Pankow advocating to Ontario’s finance minister for participation in the program. Pankow has meanwhile expressed interest in holding a public meeting on the topic this month, health officials in tow.
A prominent councilor, Dawn Quinn, cast one of three “nay” votes. According to Jordan Pearson, writing for Motherboard, her vote was at least partly informed by her credo of frugality, stating that “folks sit around in Tim Hortons all day instead of looking for jobs, and they should consider buying a tin of Tim Hortons coffee to make at home instead of buying a cup.” On that point Pearson continues, “[Quinn added] they could consider shoveling snow to earn some extra money.” Similarly conveying Quinn’s underlying sentiment, Kate Porter quotes her in CBC News: “They need to be able to learn how to take that money and stretch it […] we need more of that kind of thinking.” So it appears the belief that basic income causes squander was, at least for one decision maker, a reason for the council’s vote outcome.
There is, however, some evidence from a bordering province that suggests this perspective is dogmatic, as reflected in Knapp’s petition letter requesting that a “new vote be based on science and evidence.”
Nearly forty years ago, Dauphin, a similarly small town in the Canadian province of Manitoba, underwent a five-year minimum income (dubbed “mincome”) experiment. Mincome was also similarly basic income-lite. Rather than a true guarantee, which is regardless of preexisting income status, mincome subsidized only those poor enough and was reduced for those who earned above a threshold. Likewise, Ontario’s pilot makes whole those earning below a set threshold. Even so, the experiment provides refutation to Quinn’s apprehension of lethargic congregations at Tim Hortons.
Evelyn Forget (credit to: Ecocide Alert)
According to Evelyn Forget, an economist at the University of Manitoba and academic director of the Manitoba Research Data Centre, primary earners in Dauphin worked only marginally less within the five-year study, and much of the other reductions in labor force participation was comprised of women who extended maternity leaves and male high school students who simply stayed in school rather than work. Additionally, hospitalizations, in particular for mental health problems, dropped significantly (nearly 9% across the board) and would alleviate the burden on healthcare programs today.
Quinn acknowledges, though remains unpersuaded by, the Manitoba findings and is further dissuaded by cost – a concern currently aggravated by budget shortfalls. She protests that Smiths Falls became financially saddled after a 1970s investment in low-to-moderate income (LMI) housing, giving rise to her concern about opting into another government-borne program. A ten-year housing plan published in 2014 by Lanark County and Smiths Falls, however, notes that 74% of the county’s dwellings requiring major repairs were constructed prior to 1971. Coupling two observations then – 60% of LMI housing was developed under the program to which Quinn is referring; and renting in lieu of owning has been on the rise since Hershey’s departure – the 1970s investment appears to have provided an arguably necessary safety net.
Expenses, furthermore, reflect precarity when business output, curbed by economic disempowerment of consumers, constrains municipal revenues. In pursuing a conservative bottom line, rejecting basic income has a potentially truncating effect on the top, and budget woes thereby persist. On this, councilor Lorraine Allen, one of two “yea” votes, says the proposal would enable residents to “shop more, buy more groceries, perhaps be more involved in things that they couldn’t before.” Hence her vote for the program.
Still, the short-lived nature of the pilot is consistent with another of Quinn’s concerns: that a pilot implemented, then taken away, could prove negligibly meaningful. In the town’s 2015 operations approximately C$2.4m was spent on social and family services. Tucked inside these costs were, in addition to unspecified uses, assistance to the elderly, childcare and the social housing expenses which Quinn resents of the 1970s. If the Ontario program follows the recommendation by former senator Hugh Segal (a monthly allowance of C$1,320), the combined cost to eligible individuals could perhaps exceed the town’s existing social and family services expenditures. This mainly reinforces the need for cooperation between municipality and province-level governments to realize success from basic income. Eating the full burden, what Ontario offers is more generous than that. But in order for such a program to live past a test phase, the council of Smiths Falls would first have to heed the needs of its residents – and try.
Thanks to Genevieve Shanahan for reviewing this article.
Cover photo by wyliepoon.
More information at:
AreaScore, “Smiths Falls unemployment,” 2016.
Carol Anne Knapp, “Smiths Falls council reverse the decision regarding basic income,” Care2 Petitions, December 21, 2016.
City-Data, “City data of Smiths Falls,” 2011.
Evelyn Harford, “Basic income pilot project a no-go for Smiths Falls town council,” InsideOttawaValley, December 20, 2016.
Jesse Ferreras, “Ontario basic income should be $1,320 per month, adviser says,” The Huffington Post, November 4, 2016.
Jordan Pearson, “Why a struggling town voted against a basic income,” Motherboard, December 22, 2016.
Kate Porter, “Smiths Falls residents fight for guaranteed income pilot project,” CBC News, December 22, 2016.
Lanark County, “Lanark County and the town of Smiths Falls ten year housing and homelessness plan 2014-2024,” 2014.
Sarah Gardner, “On the Canadian prairie, a basic income experiment,” Marketplace, December 20, 2016.
Statistics Canada, “Census subdivision of Smiths Falls, T – Ontario,” 2011.
The Canadian Press, “Ontario floats idea of guaranteed minimum income to ease poverty,” CBC News, March 14, 2016.
Town of Smiths Falls, “2009 consolidated financial statements,” 2009.
Town of Smiths Falls, “2015 consolidated financial statements,” 2015.
by BIEN | Jan 12, 2017 | News, Testimonies
Interview by Scott Jacobsen
*Conducted via email with minor edits.*
The economy has shifted into high gear for knowledge and ability, the currently labeled Knowledge Economy concomitant with the Fourth Industrial Revolution. How has this affected inequality based on standard metrics of knowledge and ability, such as credentials from post-secondary institutions in relevant disciplines?
It has pretty much always been the case that an education will help you get a better job, with better pay and conditions. This is still basically true, though we are seeing even amongst the highly educated longer periods of unemployment, a failure to get “good” jobs, and increasing insecurity in the work that they do get. Why? Because we just don’t need the same number of people employed in order to make the economy work. By all means, get a great education, but look at it as much as an investment in developing yourself so that you will have a meaningful life as in getting a good job. Because maybe there is no job to be got.
You have argued for some form of Universal Basic Income (UBI) as fundamental to the “progressive civic” and “economic reinvention.” What are other terms or phrases for ideas associated with, but not the same as, UBI? What characterizes them?
There are a number of forms of basic income, not all of them universal. A common one is the idea of a negative income tax. So instead of paying tax, you are paid an allowance, but as you move back into work, get a job, the amount you are paid tapers until finally, you are back to paying tax and must make sure you do your year end tax planning. The real difference between this and a UBI is that it tries to integrate the allowance with the labor market whereas UBI tries to establish an income independent of it.
What makes the UBI plan of action unique?
I guess at heart it is the way it has the potential to break the nexus between remuneration and a job. It recognizes that many of the things we do as citizens and individuals fall outside the normal parameters of paid work but that nonetheless those things we do — from caring for children to volunteering with community organizations or political parties or sports groups — are valuable to society and so it makes sense to recognize that contribution. It also empowers workers to be able to say no to crap jobs offered on a take-it-or-leave-it basis.
What are the most common success stories of UBI or similar programs? Any failures?
Every trial of UBI I know of has been successful in that it has dispelled one of the biggest myths about giving people a no-strings-attached income, namely, that people become lazy and do nothing. Every trial shows almost the exact opposite. One of the most comprehensive trials is the one I talk about in my book, run by UNICEF in India. But similar positive results have been shown in other trials, including the one in New Jersey run by the Nixon Administration.
What city seems the most progressive and forward-thinking in its implementation of UBI?
Hard to say. A number of cities, including Utrecht in the Netherlands, are running trials, as are a couple of cities in Canada and Finland. I think this is great. It builds momentum and adds to the data supporting implementation on a larger scale.
What country seems the most progressive and forward-thinking in its implementation of UBI?
I guess Finland, but I think there are some issues with the route they have decided to take. They have chosen to test a partial rather than a full version. Still, it is good to see a national government move in this direction, however tentatively.
Any advice for would-be policymakers or activists about strategies for the implementation of UBI?
Gather data through trials. With trials, implement them with populations that will receive conservative support. In Australia, that might include rural communities, including farmers. Don’t pitch it as “free money” because it isn’t. Don’t let that description stand. Educate people about the notion of universality and why, in a democracy, it is important that everyone is entitled to certain benefits. Reach out across ideological divides, right and left. Involve business in discussions. Lobby for corporations to set aside a percentage of stock to be held by the government as part of the common wealth. It’s going to be a hard sell, so the sooner you start, the better!
And this raises the major piece of advice I would give: don’t oversell the idea of Universal Basic Income. As important a tool as it is likely to be for dealing with technological unemployment, it will not by itself solve the various social and economic problems that beset us and we should be careful not to suggest that it will.
This is the Korean version of the text.
