CALIFORNIA, US: State Legislature Recommends Carbon Tax and Dividend

CALIFORNIA, US: State Legislature Recommends Carbon Tax and Dividend

On Tuesday, August 23, the California State Senate voted to approve a resolution calling on the United States Congress and President to enact a national carbon tax-and-dividend.

The proposed tax would apply to fossil fuels, and be applied based on the amount of carbon dioxide that the fuel emits when burned. While it specifies no exact tax rate, the resolution suggests that the tax start low and increase steadily through the year 2050. The intent of the policy is to encourage a shift away from carbon-based fuels, with the ultimate goal of reducing emissions to 80 percent below 1990 levels by 2050.

The dividend is not the focus of the resolution; it is merely stated that “all tax revenue should be returned to middle- and low-income Americans to protect them from the impact of rising prices due to the tax.” The resolution further mentions that, according to a study by Regional Economic Models, a family of four would receive an average of $288 per month after 10 years.

The Citizens’ Climate Lobby (CCL), a California-based group that has been advocating strongly for a carbon fee-and-dividend, applauded the resolution — with 35 volunteers traveling to the state capital to voice their support.

In the United States, the carbon tax-and-dividend has been gaining currency as a possible way to introduce a basic income. For basic income advocates, of course, the interest is in the dividend: a universal and unconditional cash payment distributed monthly to individuals or households. Camila Thorndike of the Chesapeake Climate Action Network spoke about the connection between basic income and carbon tax-and-dividend policies on a recent edition of The Basic Income Podcast. The policy is one under consideration by the newly-formed National Campaign for Basic Income, whose founding member Steve May recently wrote an editorial in favor a carbon tax and dividend in Vermont. 

For an analysis of one such proposal, see Michael Howard’s article in Basic Income News: “Size of a Citizens’ Dividend from Carbon Fees, Implications for Growth” (September 14, 2015).

The full text of the California Senate resolution is available here.


Reviewed by Robert Gordon

Photo CC BY-NC 2.0 John Watson

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Basic Income Interviews: Juon Kim

Basic Income Interviews: Juon Kim

Juon Kim has been an organizer of Basic Income Youth Network in Korea since 2013. In March of this year, Juon ran for a proportionate candidate of Green Party Korea in the general election, representing the party’s UBI agenda. She’s currently a graduate student of cultural anthropology, and plans to write her MA thesis about basic income.

In this Basic Income Interview, Juon talks about how she came to learn about and support basic income, and why she is now an activist.

About 5 years ago, only a few people in Korea knew about basic income, including my friends. Since they were studying basic income, I became aware of it but was not attracted to it at first. But after reading two women’s books, I decided to live as a UBI advocate and joined the Basic Income Youth Network based in South Korea.

One book is Virginia Woolf’s A Room of One’s Own. “It is necessary for women to have five hundred pounds a year and a lock on the door if you are to write fiction or poetry.” It reminded me of basic income immediately. The other is Carole Pateman, a feminist political theorist saying that basic income could guarantee universal economic citizenship of women.

Juon Kim at the 2016 BIEN Congress in Seoul

Juon at the 2016 BIEN Congress in Seoul

When I was young, I dreamt of becoming a human rights lawyer. Many discrepancies in the society seemed to have been caused by law which is a tool only for the powerful. I entered university envisioning that I would stand in the forefront of social changes with the law as the tool for justice. I was even thinking of branding law firm ideas to increase my chances of being someone’s first choice to defend them.

But the university that I encountered back in 2010 was no more than a ruin. The gravity of making ends meet pulled heavily against my attempted search for friends with whom I would find solutions to the social ills. No time could be wasted if it wasn’t for career preparation, no space was available without fees, and ultimately no freedom to plan my life as I wanted was granted.

Fortunately, there were great classes and friends in and out of the campus. There were those who were being forcefully evacuated from the very place of their livelihoods in their cities, those who are taking their lives in their hands just to reclaim their lost jobs, and those religious figures, LGBT activists, disability-rights activists, grass-root activists and youth activists who fought against state violence and its forced militarization of Gangjeong village in Jeju island and forced nuclearization of Miryang in Korea.

I saw how they tried and worked to rebuild hope in their own respective communities. We met in support, delight and equality. I experienced happiness rising from others even amidst poor material conditions.

In our encounters I realized something. All of us who were dreaming of a better life, one that’s better than now, were in fact fighting against ‘dual poverty’. They fought against poverty of their own and simultaneously poverty of the world.

What I endured was not different from what they endured. It was in this moment I was introduced to the idea of ‘basic income’. I strongly related to its philosophy that the rights to eat and live should be guaranteed just for the reason that I am a constituent of this society.

What if the activists I met who suffered from dual poverty had basic income? What if my colleagues, women, youth and young adults, farmers, artists and seniors had basic income? What happens when there appears this gift called basic income in the Korean society, whose severe income bipolarization and winner-takes-all structures in all corners render all untrustworthy toward each other?

I imagined an alternative made possible by the hope called basic income to those who give up their lives or terrorize others’ lives because there cannot be a better tomorrow. Then I joined basic income movement because I wanted to imagine all these possibilities as one.

The ‘human rights’ that used to be so nondescript when I wanted to be its lawyer took shape as an economic citizenship, basic income. Basic income as the fundamental right for all humans. I hope it becomes a common sense to all everywhere in the world in the nearest future.

Photos used by permission of Juon Kim. (Cover photo: Juon promotes basic income at International Women’s Day, dressed as a suffragette.)

Juon wishes to thank her friend Heehe for translation assistance.


Basic Income Interviews is a special recurring segment of Basic Income News, introduced in July 2016 by Jason Murphy and Kate McFarland. Through a series of short interviews, we aspire to display the diversity of support that basic income receives throughout the world.

Have your own thoughts to contribute? Want to see yourself in a future Basic Income Interview?

Visit our interview form.

Basic Income, sustainable consumption and the ‘DeGrowth’ movement  

Basic Income, sustainable consumption and the ‘DeGrowth’ movement  

Sustainable Consumption

I recently went to a fascinating conference organized by SCORAI, the Sustainable Consumption Research and Action Initiative. This organization is dedicated to interdisciplinary study of consumption and the ecological impact of that consumption. They take seriously the threat of climate change and posed strong questions about the ways that our consumption decisions are driven by corporate culture and social planning. I went to presentations on transportation, automation, and ideology. Topics included driverless cars, e-bikes, downshifting, ecological footprints, mindfulness, and consumer wisdom. The topic of sustainable consumption pushes the research into posing hard questions about how humans are living and how they can live well. The conference had a blend of policymakers and scholars that you do not often see. I was reminded of the Basic Income Earth Network and US Basic Income Guarantee Network Congresses where I see activists, policymakers, and scholars listen to each other. Readers here should also consult SCORAI and keep their future conferences in mind.

Getting the Word Out about a Carbon Tax and Dividend

There was a sense of urgency given what we know about the amount of resources we are using and using up. Carbon taxes came up often. After all, they could impose the real ecological costs of consumption and manufacturing. I am a strong believer that a carbon tax is one of the ways we should fund a dividend for all.

We have heard about the “Limits to Growth” since the Club of Rome put out a now famous report bearing that title in 1970. Dr. William Rees, the inventor of the term “ecological footprint” pointed out to the conference that their projections have proven accurate in the 46 years since publication. This report predicts a series of economic collapses as consumption outpaces resource availability. So far, so scary. Rees calls for carbon taxes but also for cities to plan around local sustainability.

However, I was daunted by how often I found myself explaining what basic income is to participants. Most participants had heard of it recently but a surprising number looked curious when I mentioned it. If you are reading this, you have likely seen quite a few articles on a universal basic income and you may think “everyone else” has heard of it as well. We are not there yet. These are very clever and concerned people. Most were sympathetic. Not everyone thought a basic income was part of the topic of sustainable consumption just like not everyone at a basic income gathering would think the environment was a central part of the struggle against poverty. But we have to keep talking.

Concerns about Basic Income and ‘what the neighbors will think’

Those who were not on board (or at least not enthusiastic as me) came from many different angles. Many were speculating about how well basic income would “play” among the general public or in Congress. Some just wanted to know if the issue would hurt or help the Democrats in the upcoming election. These are the hardest people to convince. They are not actually asking themselves what they believe. We hear these sorts of things often elsewhere. These concerns will be met once a greater portion of the public has heard of basic income. Again, we have to keep talking. We have got a long way to go.

Direct Concerns about Basic Income

Some participants raised some very strong reservations about a basic income and I want to share them here and pose an initial response to them and a slightly longer one that includes an introduction to “degrowth.”

Most participants who were considering basic income were earlier proponents of a carbon tax to be used to fund ecological initiatives like public transportation, ecological energy production, and enforcement of environmental laws. Would a basic income squeeze out the budget for these things? That is a very real concern. Basic income is often sold as replacing other government functions. We have to acknowledge that this is a large budget item and all budget items can be seen as competing with other governmental functions. The best solution for this is environmental organizations writing bills with basic income in them. In the US, we have Citizen’s Climate Lobby and the Healthy Climate and Family Security Act, which has several congressional and organizational sponsors.

Another concern was raised as a research question. There is a strong link between income and ecological destructive impact. Worldwide, and in the US, the larger one’s income, the larger one’s “ecological impact.” Would a basic income turn every low-income American into a middle-income American? Would it turn middle-income Americans into Hummer-driving suburban developers? That would be an environmental disaster. I want to stress that this was posed as a research question. I heard no one straight out submit this as a rebuttal of basic income.

Income Now Drives Carbon Output

Jean Boucher’s research, presented at SCORAI, gave me another reason to think a carbon tax is important. He interviewed people who believe that climate change is a serious problem and those who do not. He compiled other research into climate beliefs and consumption patterns. He showed that people who believed climate change was a threat still used more carbon as their income increased. They used as much carbon as people with similar incomes who did not believe climate change was a threat. He noted that “liberals” tended to use up the carbon they save elsewhere with travel.

The fact that income makes people more dangerous as consumers is a strong argument for carbon taxes and other ecological regulations. Boucher, who supports a carbon tax dividend, shows that convincing people that climate change is real will not generate a sufficient amount of vegetarians with solar panels to actually make an impact. Carbon must be made more expensive.

Boucher has campaigned for a carbon tax through the Citizen’s Climate Lobby, which seeks a dividend. But could a basic income or any dividend reverse the benefits of the carbon tax? Would we just eat more cattle and travel more and ruin the planet?

We Cannot Build a Better World on the Backs of the Poor

If the ecological movement were to adopt this sort of reasoning, that would be a political disaster. They are already accused of forsaking jobs and prosperity for the sake of natural preservation. A basic income is a way to get around this. It also offers something to someone who has good reason to doubt they will be getting one of these new high-tech ‘green’ jobs preserving the environment. Can you really tell a coal miner to become an environmental engineer or an organic farmer? Do we not owe people something for pulling out the rug from under them, like that coal miner, even if we needed to?

We need to understand why depressed communities do not believe movement leaders who promise them jobs. They been promised this sort of thing before. They have been told jobs were created and they have been unimpressed. As I write, I just saw the Democratic National Convention run a video claiming Bill Clinton created millions of jobs. There is a whole belt of communities that just are not seeing it. A dividend would be a visible support for them and their communities. And a new sort of job creator. And it would reach the invisible and despised. Without a dividend, we give the opponents of environmental regulations a better opportunity to recruit votes from the less powerful.

We do not have the right to use deprivation, or the threat of deprivation, to promote even the best outcomes. It is very bad when the privileged argue that we should keep the threat of poverty in play so that people will work bad jobs for less money. It is still bad to leave people in precariousness even if our intention is to promote ecological sustainability. To talk that way is to combine a political disaster with our current moral one. After all, we are using the threat of deprivation to organize large sections of the population.

Basic Income and Degrowth

Giorgios Kallis’ keynote presentation steered me towards my provisional answer to these questions. He supports a basic income alongside the promotion of universal access to low-consumption versions of public transportation, education, and health. He sees this as a way of shrinking the destructive aspects of our economy, driven by capital, and increasing other parts of economic that we value, though ignored by capital.

Kallis’ main project is combining political ecology and ecological economics. These are two separate movements that he draws from in an attempt to take more seriously the material conditions that undergird our economic activity. We have a very long history of a link between growth in gross domestic product and a growth in carbon emissions. Kallis has called for “prosperity without growth” and is part of a “degrowth” movement. We have a finite planet and we cannot keep growing in the ways we have measured growth.

I have to admit that I have often presented a basic income as a vehicle for growth in those communities too invisible for current markets and current public planners to take action. Because I found this ecological argument for degrowth plausible, I wondered what this would mean for how I see basic income working.

The Gibson Graham Iceberg Model

In the course of presenting his argument, Kallis’ showed us was this drawing of an iceberg devised by feminist economists Katherine Gibson and Julie Graham. I have not been able to get it out of my head. Let us look at two examples, talk about them, and then get back to basic income and degrowth.

Drawing by James Langdon

Drawing by James Langdon

byrne

Drawing by Ken Byrne

They published under a combined name of “J.K. Gibson-Graham” and their work can be found at a website called “Community Economies.” Almost all economics, they argue, only looks at the “tip of the iceberg” which consists of capitalist markets and wage labor. Above the “water-line”, we have the sort of things that our market economy sees. If a price can be put on it, then someone with money to invest (a capitalist) or to consume (a customer) can make an offer for it. These are the things that our economics and our politics (and increasingly our culture) value.

Below the water-line are things that we do value but capital markets do not value in the same way we do. I went with two examples because the whole idea of the iceberg model is to get you thinking about the things you value and see where they stand. Think about how important so many of these “underwater” items are. We value culture, charity, education, health, and family life. We should not give these up in exchange for money. They have a value that is hard to reduce to a cash amount.

The list is not complete. Also, every item below the line has capital and wage versions. People pay for schools and policymakers do assign a monetary value to them. There is an art and music market. Lots of economic activity that used to take place in households are now taken care of with wage payments.

The problem is that we live in a world in which all of our decisions are being pressured to work using the terms we see above the line. Libraries and schools, when they submit their budgets, are asked to justify their existence in terms of capitalist markets and wage labor. Maybe we just want to learn. Environmental organizations are told to think about the “economy” as if we do not assign value to what we breathe, eat, drink, and look at.

Many of the terms below the water-line point to ways of belonging, to spaces where we recognize each other’s talents. Families are a large space and a lot of us would like to be able to work more with open-source technology and cooperative enterprises because we place a value on their less dominated character.

Markets and workplaces can also be such value-laden spaces but the values we use when we assess a market or a workplace must come from somewhere below the water-line. If all you thought about was money in evaluating health care at any level, you will not get to the goal of health. But so many health organizations’ decisions are driven only by the tip of the iceberg.

Giorgio Kallis shows us the Gibson Graham Iceberg Model in order to point out that the “degrowth” movement seeks to contract what is at the top of the iceberg in order to grow what is low on the iceberg.

Basic Income and Values Growth

Perhaps I am too indoctrinated by growth-oriented language but I cannot help but push against the word “degrowth”. Their adherents seem to be talking about “real growth” or “values growth” (“Values Growth” is a phrase I just invented). I suppose they need to be very clear that they think the earth can only be sustained if capital markets are organizing less of the planet’s resources. That part of the economy needs to shrink.

Giorgios Kallis makes it clear though that he is not talking about a sparser existence. Degrowth for him would not mean tightening our belts. He supports a carbon-tax-funded basic income precisely because he hopes people will opt out of the hurly-burly lives of wage-work and consumption of consumer goods. He actually hopes people opt out of the economy as it is right now. But they would live better as they see it.

Those who decide to try to live on just their basic income are, by definition, deciding they can live better with more time and less income than they would with the jobs they see available. These lives will consume less of what the capitalist market steers us now to consume. The lives they build will promote options for others as well. When we look around, we will see more than just the lives that corporations want us to value. It does not all have to be shopping between shifts at work.

When we present basic income, we are often called upon to prove that people will not opt out of the workforce. I often point out that a basic income is still yours when you take on a job. Right now, people dependent on disability worry about losing that support if they try out a job. (I am often referred by policy analysts to very complex regulations. MBA’s and lawyers disagree over the meaning of these rules. I hold a couple of degrees but I couldn’t tell anyone what would happen to them. Disability recipients, whether educated or not, are expected to understand how these policies will be interpreted. Basic income gets around all that.) Many start-ups will be buoyed by basic income.

But Kallis calls for a rethink here. For Kallis, this nightmare scenario is no nightmare at all. People who opt out of the wage-labor market simply will use up less of the earth. Everyone who opts out of the labor market in order to live more sparsely is buying the planet time.

We Do Not Need to Consume to Live or Live to Consume

Consumption becomes more expensive while we are empowered to give care and creativity the time they deserve. This answers Jean Boucher’s concerns about increased income and consumption. There are not a lot of low-consumption options now when we look at what to do with our income. There will be more with basic income, which will create new kinds of social actors.

Let us look back at the iceberg again. A basic income means that you have a property-like claim on an income. You do not have to please someone with money to have an income. You do not need a job or a patron. This means you can spend more money and time on things you care about besides capital markets, wage labor, and the people who run those things.

Basic income moves resources from the top of the iceberg to the bottom. We can see that markets are pushing their values onto other things we care about. A basic income large enough to live on is one that enables us to say “no” more often to the world on top of the iceberg. As we look around in order to build a life that we want, we will survey the values that are below the line. We will be more confident than ever that we know what we want.

We will have more examples of people living lives they value. These will include investor and entrepreneurs and job-holders but they will also include lives focused on culture, experience, ethics, and values. A basic income will increase the number of people who organize to promote what they consider to be good, fair, and true. We need more organizations besides for-profit corporations competing for our attention and time. We depend on people negotiating between their needs and wants and the beliefs and power relations that they have inherited. This new world may be more contentious, more diverse, than our current one. It also may be more deliberative if persuasion becomes a more important means to organizing people now being organized by capital and wage offerings. Combined with making environmental destruction more expensive, a basic income funded by taxing pollution will make less-destructive lives more meaningful.


Edit (August 13, 10:40 pm EST):

A line was changed by the author. The new version makes it more clear that many people with disabilities are highly educated.

VIDEO: Guy Standing’s Angus Millar Lecture on Basic Income in Scotland

VIDEO: Guy Standing’s Angus Millar Lecture on Basic Income in Scotland

As previously reported on Basic Income News, economist and BIEN co-founder Guy Standing (SOAS University of London) delivered the prestigious Angus Millar Lecture for RSA Scotland last May.

A video of Standing’s Angus Millar Lecture has been made available online, with some pretty cool music at the beginning.

YouTube player

Democracy TV, “Professor Guy Standing – Basic Income – in relation to Scotland,” YouTube; published on May 18, 2016.


Image Credit: Stan Jourdan, BIEN Congress 2012

UNITED STATES: Black Lives Matter endorses UBI in official platform

UNITED STATES: Black Lives Matter endorses UBI in official platform

The Movement for Black Lives, the network of organizations behind the United States’ Black Lives Matter movement, released its first official platform on Monday, August 1. The platform calls for a universal basic income for all Americans, with an additional amount distributed to Black Americans as reparations.

The Movement for Black Lives (MBL), a collective of over 50 groups affiliated with the Black Lives Matter (BLM) movement, released its official platform on Monday, August 1.

The platform is constructed around six core demands: Ending the war against Black people; Reparations for past and continuing harm; Investment in education, health and safety, and divestment from exploitative forces; Economic Justice for all; Community Control of laws and institutions; and independent Black Political Power.

The platform is explicitly radical and visionary, aspiring to a “complete transformation of the current systems”, but its authors have also written policy briefs that outline intermediary steps to reach these visions.

The Movement for Black Lives’ demands include universal basic income, as described in its policy statement on Reparations. The document makes clear that MBL endorses a basic income for all Americans, with an additional amount (a UBI “PLUS”) given to Black Americans as reparations for harms ranging from colonialism and slavery to mass incarceration.

Political scientist Dorian T. Warren, a Fellow of Roosevelt Institute and Board Chair of the Center for Community Change, authored the policy brief. Its section on universal basic income is reproduced below:

What does this solution do?

A Universal Basic Income (UBI) provides an unconditional and guaranteed livable income that would meet basic human needs while providing a floor of economic security. UBI would eliminate absolute poverty, ensuring economic security for all by mandating an income floor covering basic needs. Unlike most social welfare and social insurance programs, it is not means tested nor does it have any work requirements. All individual adults are eligible.

No other social or economic policy solution today would be of sufficient scale to eradicate the profound and systemic economic inequities afflicting Black communities.

As patterns and norms of “work” change rapidly and significantly in the decades to come – no matter how profound those changes are – it is likely that Black America and other populations that are already disadvantaged will bear the brunt of whatever economic insecurity and volatility results.

A pro-rated additional amount included in a UBI for Black Americans over a specified period of time.

The revenue saved from divesting in criminal justice institutions could be pooled into a fund for UBI; this revenue could be earmarked for the “PLUS” aspect of the policy that would be targeted toward Black Americans. If combined with other funds, it would effectively function as reparations, in a grand bargain with white America: All would benefit, but those who suffered through slavery and continuing racism would benefit slightly more.

Federal Action:

UBI would have to pass both houses of Congress and then be signed by the president. The revenue could be generated by multiple sources which would require structural reforms to the tax code including higher taxes on the wealthy, taxes on public goods like air (carbon tax) or on certain industries (financial transactions tax), or a dividend based on distributing resources from a common-owned asset (like oil).

State Action:

Similar to national policy, UBI would have to pass through state legislatures and be signed by governors. Other instances might require amendments to State Constitutions. The precedent here is the Alaska Permanent Fund, set up in the late 1970s/early 1980s. All residents of Alaska receive an annual dividend based on the invested revenue from the publicly-owned oil reserves.

How does this solution address the specific needs of some of the most marginalized Black people?

UBI would then provide an individual-sustaining basic floor for people who are formerly incarcerated upon re-entry that does not currently exist.

UBI would be an improvement on portions of today’s current safety net and would benefit cash poor Black people the most. Some benefits, such as food stamps, are replete with paternalistic restrictions that rest on racist tropes about recipients and their consumption habits. Others, such as the Earned Income Tax Credit (EITC), are significantly tied to work, which is problematic when structural racism continues to create so many barriers to Black employment. UBI lacks these flaws.

Dorian Warren; the Roosevelt Institute

Dorian Warren, Roosevelt Institute

The document also links to Warren’s essay “Universal Basic Income and Black Communities in the United States“. In this short paper, Warren describes the problem of racialized economic inequalities in the American economy, and proposes UBI as a solution. He emphasizes that most forms of UBI would benefit the black community, and that “even an equal income could disproportionately benefit black Americans” since white Americans presently earn more on average.

Warren goes on to argue, however, that a “Universal PLUS Basic Income” model, with an additional pro-rated cash transfer specifically for African Americans, would be preferable as a way to “take into account the historical and cumulative disadvantages of income, wealth and inheritance afflicting black communities”.

The Black Lives Matter movement originated in July 2013, after a Florida jury acquitted George Zimmerman of all charges surrounding the shooting death of unarmed black teenager Trayvon Martin. The movement spread on social media via the use of the hashtag “#BlackLivesMatter”.

Tuesday, August 9 marks the two-year anniversary of the death of Michael Brown, another unarmed black teenager who was shot and killed by a white police officer in Ferguson, Missouri. The fatal shooting launched a series of street protests that brought widespread national publicity to BLM to a point where the topic of raising the Black Lives Matter flag was discussed in various circles of the government to show solidarity against racism. The BLM flag may not be flying atop a monster flagpole anytime soon, but the discussions in several mediums have definitely carried forward the cumulative fears and concerns of the African American populace.

Ferguson Protest in Seattle CC scottlum

Ferguson Protest in Seattle CC scottlum

Monday’s release marks the first time in its history that BLM has issued a single, comprehensive set of policy demands.


MORE INFORMATION

The Platform is available at The Movement for Black Lives’ website: policy.m4bl.org.

Dorian T. Warren, “Universal Basic Income and Black Communities in the United States“.

General news about the release of the BLM platform:

Yamiche Alcindor, “Black Lives Matter Coalition Makes Demands as Campaign Heats Up“, The New York Times; August 1, 2016.

Eric M. Johnson, “Slavery reparations sought in first Black Lives Matter agenda“, Reuters; August 2, 2016.

Amée Latour, “How To Read The Black Lives Matter Agenda & See Its Comprehensive Plan For The Future“, Bustle; August 1, 2016.

Trymaine Lee, “Black Lives Matter Releases Policy Agenda“, NBC News; August 1, 2016.

Jamilah King, “The Movement for Black Lives’ New Policy Platform Looks Beyond the 2016 Election“, Mic; August 1, 2016.

Tess Owen, “Black Lives Matter reveals a policy platform that includes reparations and breaking up banks“, Vice; August 2, 2016.


Featured Image CC Gerry Lauzon

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