by Karl Widerquist | Feb 6, 2019 | Opinion, Research, The Indepentarian
When people ask me where to find empirical research on the effects of Basic Income online, I tend to recommend the following sources, both for the sources themselves and for the many more sources you’ll find in their bibliographies:
Karl Widerquist A Critical Analysis of Basic Income Experiments for Researchers, Policymakers, and Citizens, Palgrave Macmillan, December 2018. In case you can’t find my book at your university library, I posted an early draft of it (and as far as I know everything I write) for free on my personal website.
Karl Widerquist “A Failure to Communicate: What (If Anything) Can we Learn from the Negative Income Tax Experiments?” The Journal of Socio-Economics (2005). You can find an early free version here.
Calnitsky, D. (2018) ‘The employer response to the guaranteed annual income’, Socio-Economic Review, 25, 75–25.
Kangas, O., Simanainen, M. and Honkanen, P. (2017) ‘Basic income in the Finnish context’, Intereconomics, 52, 2, 87–91.
Karl Widerquist, “The Cost of Basic Income: Back-of-the-Envelope Calculations,” Basic Income Studies, 2017. Again if you don’t have access through your university, you can find an early version of The Cost of Basic Income on my personal website.
“Basic Income: An Anthology of Contemporary Research” is helpful, although only a small part of it is empirical.
Widerquist, K., Howard, M. (Editors) Alaska’s Permanent Fund Dividend: Examining Its Suitability as a Model and Exporting the Alaska Model: Adapting the Permanent Fund Dividend for Reform around the World, two books both published by Palgrave Macmillan in 2012. Contact the editors (karl@widerquist.com) if you have trouble locating the books.
Evelyn Forget, “The town with no poverty: The health effects of a Canadian guaranteed annual income field experiment,” Canadian Public Policy, 2011
Go to Google Scholar: search “basic income” and/or other names for the concept with our without additional key words to narrow it down. Scroll through as many pages of links as you have time for.
Go through the tables of contents for each issue of the journal Basic Income Studies.
Go through the news on Basic Income News, as far back as you have time for, looking for mentions of and links to new research.
Go to the “Basic Income FAQ/wiki,” on Reddit and look for the empirical articles.
I’m leaving out a lot of good stuff because I can’t find it online, but those things together should give you a good idea of the current state of UBI research.
What links would you add (please answer only if you can give the full information about it including an actual links to it)?
by Kate McFarland | Aug 9, 2018 | News
Photo: “Fight for $15” Minimum Wage Protest, CC BY-SA 2.0 The All-Nite Images
A recently released survey shows support for an income-tax-funded basic income from people of color and the working class, but opposition from college-educated white Americans.
The left-wing think tank Data for Progress included a question about universal basic income (UBI) in Polling the Left Agenda, an opinion survey recently conducted to gain insight into the political viability of potential “big-ticket” progressive proposals.
The think tank hopes to remedy a lack of data concerning voter support for such policies, policies that politicians might be inclined to dismiss as too radical to gain sufficient support from the electorate:
“Because the policies that are exciting progressive voters have not yet caught the attention of most pollsters, debates over how ready the broader electorate is for a more progressive Democratic platform have been reduced to mere speculation. We set out to change that … We chose policies that haven’t been polled often, but could be central to the 2020 Presidential election.”
Policies considered in the poll included not only UBI but also a federal job guarantee, a stakeholder grant or “baby bond”, reparations for black Americans, and a 90 percent marginal income tax on millionaires, among other proposals.
In collaboration with YouGov Blue (a division of market research organization YouGov that serves clients from the political left), Data for Progress interviewed 1515 eligible US voters between July 13 and 16, 2018. Respondents were randomly selected and represented the full US political spectrum, not only progressives (e.g. about 44 percent of respondents who voted in the 2016 Presidential election backed Republican nominee Donald Trump).
Querying Support for UBI
Although the survey did not explicitly use the term, UBI was the intended target of one of the survey’s ten policy questions:
Would you support or oppose giving every American a monthly check from the government of $1,000, which would be paid for by raising taxes on individuals earning more than $150,000 a year?
Overall, 37 percent of respondents supported the policy (23 percent strongly and 14 percent “somewhat”), while 43 percent opposed it (31 percent strongly), and the rest remained neutral or undecided. However, as discussed below, net support for the policy was observed within some demographic groups, such as Blacks, Hispanics, women, eligible voters under 45 years of age, and those without any college education.
It bears note that the questionnaire did not query respondents about UBI per se but about a specific type of UBI: one of a certain specified amount (US$1000 per month) and funding mechanism (a higher personal income tax for individuals making more than US$150,000 per year).
Because of this, we must be cautious in making comparisons between the Data for Progress poll and other recent surveys of Americans’ opinions on UBI, such as those conducted in 2017 by Ipsos, Morning Consult, or Gallup, or the poll commissioned by the Economic Security Project in 2016. None of the latter polls included reference to a specific amount or funding mechanism in initial questions about UBI (although some proposed specific sources of funds in follow-up questions). At the same time, included other extraneous qualifications (e.g. Gallup’s poll asked specifically about a UBI introduced “as a way to help Americans who lose their jobs because of advances in artificial intelligence”). Thus, although ostensibly all surveys about Americans’ attitudes UBI, these studies cannot be said all to have measured the exact same thing.
Of particular significance is the fact that the Data for Progress questionnaire asked specifically about a UBI funded by a personal income tax. Data from earlier surveys already indicate that support for UBI decreases when respondents are told that the program would be accompanied by higher taxes.
A 2017 survey of British adults, for example, found that 49 percent of respondents would support “a regular income paid in cash to every individual adult in the UK, regardless of their working status and income from other sources”, but support dropped to 30 percent if the policy would entail an increase in taxes. Similarly, as Jurgen De Wispelaere has pointed out, a government-sponsored working group in Finland “found that Finnish support for basic income decreased quite radically once questions about the amount of basic income are paired with corresponding questions about the taxes needed to fund it”. And a 2016 Canadian poll found 67 percent of respondents in favor of a guaranteed income of C$30,000 per year, but only 34 percent said they themselves would be willing to pay more in taxes to support a government-sponsored guaranteed income.
Past American surveys have shown similar results. In the aforementioned Gallup poll, 48 percent of individuals surveyed supported “a universal basic income program as a way to help Americans who lose their jobs because of advances in artificial intelligence”. However, out of those who expressed support for the program, only a minority (46 percent) replied affirmatively to a follow-up question asking whether they would be willing to pay higher taxes to fund it. Moreover, the Economic Security Project study revealed a drop in support for a “base income” from 45 to 39 percent, and an increase in opposition from 35 to 50 percent, after respondents were informed that the program “would be paid for by tax revenues”. Notably in the latter case, the survey respondents were not told specifically that they themselves would have to pay higher taxes.
It is not uncommon to hear American basic income advocates speak of a US$1000 basic income funded in part by an increase in personal income taxes. However, there are other reasons why details are not immaterial. For one important example, note that UBI proponents also frequently cite the popularity of Alaska’s Permanent Fund Dividend (PFD), an unconditional cash payment to all state residents, to argue that the policy could garner mainstream appeal in the US. The PFD, however, is a vastly different program from the description specified in the Data for Progress poll: Alaska’s PFD is distributed annually rather than monthly, closer to US$1000 per year than per month (its amount varies but stood at US$1100 in 2017 and US$1022 in 2016), and funded not from personal income taxes — Alaska is, in fact, one of a handful of US states with no state income tax — but from investment earnings on revenue from oil and other state-owned resources.
I will make one final note on questionnaire wording before turning to examine some results of “Polling the Left Agenda” in more detail: it is also important be mindful of what details are not explicitly noted in the survey question on UBI, such as the fact that the payment is not conditional on work or other requirements. The previously cited Economic Security Project survey found that support also declined when respondents were directly told that receipt of a UBI “is not tied to work or having a job” or that the money “could be used for anything”. Although the unconditionality of the grant is implicit in the description of “giving every American a monthly check”, individuals’ reactions and responses can vary depending one what is made salient and explicit when questioned.
Additional Survey Results
Race and Education Level
The UBI proposal received the strongest support from people of color and non-college educated Americans (or “working class” as Data for Progress labels the latter group).
As Data for Progress summarized what it referred to as the “key finding” of its study, UBI “is most popular among working class people of color, followed by college educated people of color” and “net support among working class whites” while being “rejected by college-educated whites”.
Black respondents supported the proposal by a margin of 49 percent to 19 percent (with 33 percent expressing strong support), while Hispanic respondents supported it by a much narrowed margin of 36 percent to 34 percent. In contrast, 47 percent of white respondents opposed the policy (with 35 percent strongly opposing it), while 36 percent supported it.
Across education levels, the policy proposal received net support only among those with no college education (40 percent in support to 29 percent opposed). Overall, over 40 percent of college graduates strongly opposed the policy.
Cross-tabulated data tables from Data for Progress.
These demographic trends remain consistent with the results of the 2017 National Tracking Poll conducted by Morning Consult and Politico, which queried over 1400 eligible US voters on their support or opposition to “a proposal in which the government would provide all Americans a regular, unconditional sum of money, sometimes referred to as universal basic income” (see the discussion by Patrick Hoare in a Basic Income News article on the survey).
Political Alignment
The UBI proposal also received majority support from respondents who voted for Democratic candidate Hillary Clinton during the 2016 presidential election, with 35 percent of Clinton voters strongly supporting the policy. (We might here note that, while Clinton herself is sometimes classified as a UBI supporter due to a jettisoned proposal described in her memoir, she opposed UBI during her campaign, and her rejected proposal was for a resource dividend inspired by Alaska’s PFD, not financed by a higher personal income taxes.)
In contrast, less than 17 percent of Trump voters in the survey supported the idea of an income-tax-funded UBI. Indeed, among those who voted for the Republican candidate, 64 percent strongly opposed the policy.
Once again, this result aligns with last year’s National Tracking Poll, which found that 56 percent of Clinton voters supported a UBI, with 28 percent opposed to the proposal. In contrast, only 32 percent of respondents who voted for Trump expressed support for the idea of UBI, while 52 percent expressed opposition. Similarly, the Gallup poll found that only 28 percent of Republican respondents supported UBI as a policy to address technological unemployment, in contrast to 65 percent of Democrats.
Some UBI supporters, being keen to depict the policy as broadly trans-partisan (“not left or right but forward”), might balk at portraying the idea as specifically “progressive” or as a potential part of “the left agenda”. If these recent surveys are a valid measure, however, there is evidence that UBI is indeed an idea that strikes a much greater resonance with America’s left.
Other Demographic Categories
The poll also suggests that an income-tax-funded UBI is more popular among women, younger Americans, and lower-income individuals, and less popular among men, older Americans, and higher-income individuals.
Women displayed a slight margin of net support for the proposal (39 percent to 37 percent), although 10 percent remained unsure, while male respondents rejected the idea 50 percent to 35 percent (with 4 percent remaining unsure).
Additionally, while the policy proposal garnered net support from young voters (in both the “under 30” and “30-44” age groups), it received net opposition from those 45 and older, and nearly half of respondents over 65 strongly opposed it.
Again, these general demographic trends tend to reflect previous survey research, such as the 2017 Gallup poll, which found greater supporter for UBI among female respondents and declining support through each of its four age categories. The National Tracking Poll also revealed stronger opposition from older age groups (especially among those over 65). In the latter survey, however, men were seen to be slightly more favorable to a general UBI proposal than were women.
Finally, the Data for Progress poll showed that lower incomes tend to be associated with a higher degree of support for UBI; while supporters outnumbered opponents among respondents with family incomes under US$40,000 per year, opponents predominated in higher income categories. This finding also remains consistent with other recent studies.
Reaction from The Nation
So, then, is basic income a viable progressive proposal? Should Democrats back the idea in the 2020 election? Journalist Clio Chang is one commentator who believes that the survey results do indeed suggest an affirmative answer, as she writes in The Nation, the popular American progressive political journal:
“[S]ome sort of cash welfare should be part of the progressive agenda, not in small part because it would help blow up the racist idea that benefits should be tied to work and finally kill Reagan’s welfare-queen myth. As the polling shows, even the most radically progressive proposals are not the political death sentences that critics would have you believe.”
by Jelena Vitic | Aug 2, 2018 | News, Research
Picture credit to: iStock
The start of the longest and largest Universal Basic Income (UBI) experiment in Kenya and the approaching end of the trial in Finland spark a new discussion among experts on the effects of ‘no-strings attached’ money transfers.
An article published in Nature in May 2018 discussed the importance of randomized trials in informing researchers and policy makers alike about the feasibility of an UBI scheme. The article states that critics of the currently employed conditional welfare systems believe that the limited results do not justify large administrative costs that come with such policies. Some policy-makers see UBI as a more affordable alternative that has more potential to alleviate poverty, according to the article, but the costs and benefits of UBI schemes still have not been clearly identified. With that in mind, many decision makers prefer to employ a data-driven approach by making randomized trials, the most universally accepted method of gathering information about the effects of UBI. However, even supporters of the evidence-based approach claim that designing and conducting UBI trials comes with its own set of difficulties. They point out that it requires a large amount of planning and researchers need to look for benefits in a wide variety of areas such as health, education, nutrition and job-seeking. Furthermore, lack of standardized goals and agreed upon areas of impact pose another challenge for advocates of UBI trials.
Damon Jones, an economist at the University of Chicago believes that even clearly demonstrated benefits will not necessarily indicate that UBI would work in practice. He arguments that most resources for the trials come from private funds and only include a small portion of the population. Hence, he thinks trials do not say much about the affordability of big government programs and the willingness of people to fund them through tax increases. On the other hand, he adds that despite these inherent limitations research still should be done.
Others propose that trials have an ongoing impact on UBI discussions. Rob Reich, a political scientist at California’s Stanford University thinks trials will help researchers identify flaws in the process, refine goals and impact areas as well as provide policy makers with some answers they are looking for. Furthermore, supporters argue that over time the studies will provide more insight on the costs and benefits of guaranteed income schemes. Proponents of UBI trials recognize that despite being important, updating research is expensive.
On the other hand, Quartz interviewed experts that expressed doubt whether randomized trials are the best option for analyzing the effects of UBI in the first place. According to Karl Widerquist, many effects will play out over the years and will not be revealed during the experiment, regardless of its size and cost. Nonetheless, he notes there is very little downside to trying it out. Others believe that the benefits have already been proven by initiatives such as Alaska’s Permanent Fund Dividend and there is no need for more research. Matthew Zwolinski adds that UBI has to be “robust enough to survive the political process”, meaning that he sees gradual changes having a higher likelihood of being implemented, compared to radical policies.
Although opinions differ, supporters hope that big trials like the one in Kenya will open the door for future research and help the discussion move forward.
More information at:
Carrie Arnold, “Nature: Money for nothing: the truth about universal basic income”, Nature, News Feature, May 30th 2018
Kate McFarland, “Overview of current basic income related experiments (October 2017)”, Basic Income News, October 19th 2017
Kate McFarland, “US/KENYA: GiveDirectly Officially Launches UBI experiment”, Basic Income News, November 17th 2017
Olivia Goldhill, “We’re giving up on universal basic income before the evidence is in”, Quartz, May 29th 2018
by Karl Widerquist | May 30, 2018 | Opinion, The Indepentarian
This essay was originally published on Basic Income News in December 2012.
This year Alaskans received a dividend of $878, not bad compared to all the other states, but this dividend is the smallest since 2005, and it is only the second time in more than 20 years that the dividend has been below $900 per person. Alaska’s Permanent Fund Dividend (PFD) needlessly fluctuates widely. This year’s dividend is 25 percent smaller than last year’s dividend of $1,174, and it is 57 percent smaller than the 2008 record-high dividend of $2,069 (not counting the one-time supplement of $1200 that was added to that year’s dividend).
The declining dividend does not mean that the PFD is in trouble. Actually the Alaska Permanent Fund (APF), which financed the PFD, is at near-record high levels. It closed the 2011-2012 fiscal year at 40.3 billion dollars. The dividend was low this year because the state uses a complex formula averaging the returns over a five-year period to determine yearly returns. The five-year average was chosen to smooth out fluctuations in market returns to create a more stable dividend, but—as Alaskans can easily see—a five-year average is not enough to do that job. Markets tend to have stable long-term trends, but they can have occasionally large yearly fluctuations (either up or down) that can dwarf a five-year average. The mid-2000s market boom, and the 2008-2009 market bust were just such fluctuations. Now, several years later with the boom returns falling out of the calculations but the decline still in, the 2008 market bust affects the dividend the more than it did at the time.
There’s a better, more stable way to calculate the dividend. It’s called percentage of market value (POMV). Most financial managers agree that an individual can afford to withdraw up to 4 percent of a well-invested diversified portfolio and still expect it to grow in real terms over time.
If Alaska used this rule to calculate the PFD, this year’s dividend would have been $2,380. It would have been a record-high dividend, because the APF closed the fiscal year at a record-high level. Suppose then there was a major sell-off in the markets and the fund declined by 25% to $30 billion. The dividend would decline by 25% as well, to $1,846. Suppose instead it rose by 25% to $50 billion. The dividend would rise by 25% as well, to $3,076. Because 25% is an unusually large fluctuation, we can expect this to be an unusually large change in the dividend. Most often it would change by less than 10% from year to year, and in most years it would increase.
Perhaps Alaskans should be more conservative. The goal of the fund is not just to payout as much as possible. It is also to save for the future. The more the APFC pays out in dividends now, the slower the APF and the PFD will grow over the long term. So, perhaps a POMV rule of 3% would be better—a little more cautious—than the 4% rule. If so, payouts this year would have been $1860. Payouts after a 25% decline to $30 billion would be $1,395. Payouts after a rise to $50 billion would be $2325, and Alaska could expect to larger reinvestments by the APFC to help the APF get to $50 billion much more quickly.
POMV just makes sense. Nobody likes the big fluctuations. No one wants their dividend to be less than half of what it was a few years ago. POMV stabilizes dividends, making it easier for Alaskans to plan, and it can be part of a conservative payout strategy that will keep the fund growing over time.
-Karl Widerquist, Doha, Qatar, November 2012
by Karl Widerquist | May 23, 2018 | Opinion, The Indepentarian
This essay was originally published on Basic Income News in August 2012.
Last February two conservative commentators, Bill O’Reilly and Lou Dobbs, from the Fox News Network, praised the Alaska Dividend as “a perfect Model” of what America should be doing with its resources. It is amazing that prominent conservatives can praise a policy that redistributes income from the wealthiest Americans to all Americans unconditionally—without means test or work requirement.
O’Reilly began by saying, “It is my contention that we, the people, own the gas and oil discovered in America. It’s our land, and the government administers it in our name.”
Later, Dobbs added (as O’Reilly nodded and voiced agreement), “All of the vast energy reserves in this country belong to us, as you said. In Alaska, there’s a perfect model for what we should do as a nation. We should have—what it’s called there is a Permanent Trust. Let’s call it the American Trust. And the oil companies, that pay about $10 billion per year in fees and royalties—have that money go into this trust fund, not to be touched by the Treasury Department or any other federal agency, but simply for the investment on behalf of the American people (citizens). A couple things happen. One is, it reminds people whose oil this is, whose coal this is, and what the rights of an American citizen are. And it even puts a little money, a little dollar sign, next to what it’s worth to be a citizen. Have dividends disbursed and distributed every year. … [The other thing is] Peg [the royalties] to the price of gasoline … and that money go into that trust fund for the American people. I think you’d see a lot of people start to pay a little different attention to what people think and respect citizens a little more.”
It was a very good statement of what the Alaska model is for and how it ought to work.
But I doubt the two commentators realize how subversive their words were. If the government realized that the land belongs to all the people and truly began to administer it for everyone’s benefit, many changes would happen. If all the oil, coal, and natural gas of America belong to all Americans equally and unconditionally, so do all the gold, silver, bauxite, fish, timber, land, and groundwater. So do the atmosphere, the broadcast spectrum, and many other things worth an awful lot of money. If everybody who asserted private ownership of any of these things had to pay into the kind of public trust fund O’Reilly and Dobbs endorse, that fund would finance the most massive redistribution of wealth from rich to poor in the history of the United States (if not the world), and it could probably support a basic income large enough to permanently end poverty in America.
-Karl Widerquist, South Bend, Indiana, August 2012
Video of Bill O’Reilly and Lou Dobbs discussing the Alaska fund and dividend is online at: https://www.foxnews.com/on-air/oreilly/index.html#/v/1472237953001/government-
For more on the Alaska model, including cost estimates of the potential value of the natural resources the government gives away for free see the following two books:
Alaska’s Permanent Fund Dividend: Examining its Suitability as a Model, co-edited by Karl Widerquist and Michael W. Howard (Palgrave-MacMillan, 2012):
https://us.macmillan.com/book.aspx?isbn=9780230112070
Exporting the Alaska Model: Adapting the Permanent Fund Dividend for Reform around the World, co-edited by Karl Widerquist and Michael W. Howard (Palgrave-MacMillan, 2012)
https://us.macmillan.com/book.aspx?isbn=9781137006592
Or contact me: Karl Widerquist <Karl@widerquist.com>
