UK: University College London research group recommends Universal Basic Services over Universal Basic Income

UK: University College London research group recommends Universal Basic Services over Universal Basic Income

The Social Prosperity Network, a research network at University College London’s Institute for Global Prosperity (IGP), released a report this month arguing for Universal Basic Services for the UK.

The authors propose that the UK expand its set of free and universal public services to include shelter (social housing), food, transportation (e.g. bus passes), and information (e.g. internet access), in addition to the National Health Service, public education, and public legal services.

Like universal basic income, Universal Basic Services (UBS) are intended to secure the necessary means to a life for everyone, unconditionally. The unconditionality of the benefits is a key distinctive feature. As IGP’s Andrew Percy writes in the introduction to the report, the Social Prosperity Network has been motivated by the challenge to design a modern social safety net that is “[m]ore flexible and effective than the conditional benefits system we have inherited”.

As IGP Director Henrietta Moore mentions in the forward to the report, the authors have been inspired in their thinking by the recent global interest in basic income. Percy refers to the policies as “complementary components of a sustainable future for social welfare”:

Progressive proponents of a UBI assume the pre-existence of a platform of social welfare services, and advocates of UBS must acknowledge that there are both personal and specific needs that will require some form of monetary distribution to preserve freedom and agency.

While it is clear that Percy does not rule out UBI on matters of principle, he does maintain that UBS is a more effective use of available government revenue.

Jonathan Portes, Professor of Economics and Public Policy at King’s College London, contributes a discussion paper to the report in which (in part) he contrasts UBS with several other potential solutions to challenges currently facing the UK economy. Although he devotes more attention to basic income than other competing options, Portes worries that UBI fails to address the main shortcomings of the UK welfare system (housing and disability benefits), that it would be prohibitively expensive if paid at an adequate level, and that it could devalue the importance of workforce participation. He concludes that “while some version of a basic income may be a useful complement to ambitious reforms of the welfare system, expecting basic income on its own to be ‘the answer’ is neither realistic nor desirable”.

Technical analyses of the cost and distributional impact of UBS are contributed by Howard Reed of Landman Economics (a name familiar in UBI circles as the coauthor of last year’s report “Universal Basic Income: An idea whose time has come?” for the UK think tank Compass).

Download the full report here: “Social prosperity for the future: A proposal for Universal Basic Services

 

YouTube player

Reviewed by Dawn Howard

Photo: Demonstrators in London, UK, CC BY 2.0 DAVID HOLT

 

United States: CQ releases basic income research compilation

United States: CQ releases basic income research compilation

Congressional Quarterly (CQ) has published a research paper on basic income (BI) that explains its universal popularity due to automation growth estimates worldwide. The CQ Researcher covers everything from Scott Santens’ crowdfunded self-financing mechanism to U.S. ex-President Obama’s belief that the debate may last 10 to 20 years.

 

The 21-page research paper, written by London freelancer Sara Glazer, includes an explanation of the Alaska Permanent Fund Dividend (PFD) – a basic income like payment to all residents – and revels in the prediction of automation worldwide. Predicted percentage of job losses are shown in charts for 8 countries, as well as for the Organization for Economic Co-operation and Development (OECD) (made up of 21 countries).

 

BI appeal to the political Left is explained as the continuation of a welfare state. Its appeal to the political Right is explained as a libertarian limit on government intrusion and cost. However, the research warns that many people believe the poor may be worse off: “Some anti-poverty advocates say a UBI would increase both poverty and inequality by using welfare funds now spent on the poorest two-fifths of the population to provide cash to people of all income levels“.

 

The report also mentions the current endorsement of Facebook co-founder Mark Zuckerberg, as well as other Silicon Valley entrepreneurs like Chris Hughes. Moreover, references are made to the 1960s precedent of U.S. President Lyndon Johnson’s instituted War on Poverty as well as U.S. President Richard Nixon un-instituted 1970s negative income tax credit. This latter issue has been today resurrected by Congressman Ro Khanna, by his proposed bill for extending the earned income tax credit for the poor.

 

The Canadian 1970s experiment, called Mincome, is described as a positive pilot project, acting as a precedent for current basic income pilot projects in Finland, the U.S. (California ), Canada (Ontario ), Spain (Barcelona), Africa (Give Directly) and the Netherlands. In this report Karl Widerquist says that, with a BI, people will be allowed without fear to work the way they feel best. In an opposite viewpoint, Pavlina Tcherneva argues that a Job Guarantee program would be a better, less costly, way to make sure everyone had work they cared for.

 

More information at:

David Wheeler, “What if everybody didn’t have to work to get paid?”, The Atlantic, May 18th 2015

Chris Weller, “President Obama: We’ll be debating unconditional free money over the next 10 or 20 years” Business Insider, October 12th 2016

Kate McFarland, “SPAIN: Barcelona prepares study of Guaranteed Minimum Income”, Basic Income News, February 26th 2017

Peter Vandevanter, “United States: Ro Khanna introduces EITC bill, garners comparison to BI”, Basic Income News, October 2nd 2017

Kate McFarland , “THE NETHERLANDS: Government authorizes social assistance experiments in first five municipalities”, Basic Income News, July 11th 2017

Ashley Blackwell, “KENYA: GiveDirectly’s Guaranteed Monthly Income Expands to 200 Villages Fall 2017”, Basic Income News, September 10th 2017

Kate McFarland, “FINLAND: First Basic Income payments sent to experiment participants”, Basic Income News, January 12th 2017

Peter Vandevanter, “United States: Ro Khanna introduces EITC bill, garners comparison to BI”, Basic Income News, October 2nd 2017

Ashley Blackwell, “KENYA: GiveDirectly’s Guaranteed Monthly Income Expands to 200 Villages Fall 2017”, Basic Income News, September 10th 2017

Kate McFarland, “FINLAND: First Basic Income payments sent to experiment participants”, Basic Income News, January 12th 2017

 

Is Basic Income the next big population health intervention?

Is Basic Income the next big population health intervention?

Why it’s useful to see Basic Income through the lens of Population Health Intervention Research

Thanks in part to the health sciences, there is widespread public acceptance that being poor is bad for your health. It doesn’t take much for us to make the connections. We might expect that less to eat and poor housing conditions interfere with our ability to maintain healthy bodies and immune systems. Less money could mean no access to things like computers so that people can visit sites like Thenutritioninsider.com
to get advice on how to eat healthy and look after their bodies. It may also mean less access to the health services that could treat or prevent illness and disease.

We need to make treatments more accessible which is why using coupons from somewhere like Save On Cannabis for CBD products might enable the vast health inequality to become smaller in the future. Moreover, fewer resources might mean fewer opportunities and fewer job options. Poverty also compounds political and social injustice, with marginalized people such as women, Indigenous people and racialized groups profoundly affected by poverty. These groups often constitute much of the poor. Lastly, evidence suggest we suffer the psychological consequences of living in material deprivation, both in absolute terms and relative to others. Therefore it is a necessity for marketing cbd brands to change the narrative around cbd products so that there’s a change in the structure and more people get accessible medical care.

The immense research on poverty, income inequality, and the social determinants of health culminated in public sympathy for the plight of the poor. Yet for all the studies that have been done on poverty, perhaps it is time to develop research and public support for a solution – such as Basic Income. There are practical challenges to getting basic income into common public health parlance. The health of everyone is highly important, no matter the level of wealth, every person should have access to healthcare, for example, men may need sexual health medications (), which means that they must be able to have that access when required by their doctor.

The answer may lie in the understanding of Basic Income as an ideological proposal that can affect our health. The discourse around basic income as a deeply ethical idea is necessary, but perhaps insufficient. I believe we should consider reframing the concept concretely as a population health intervention.

Why call basic income a “population health intervention”?

A concept advanced by Canadian researchers Potvin and Hawe (2012) as being policies or programs that shift the distribution of health risk by addressing the underlying social, economic and environmental conditions, population health intervention research is a unique approach to figuring out how we are affected by policies that have a wholesale effect on people. Eminent basic income economist Dr. Evelyn Forget took this approach in her paper “New questions, new data, old interventions: The health effects of a guaranteed annual income” (Forget 2013). She used old administrative data from the well-known “Mincome” experiment in Manitoba, and looked at health records from the same time-period. She saw a reduction in hospital burden relative to a similar town’s health care use that did not get the income grant.

Calling basic income an intervention means that we can treat it as a ‘natural experiment‘.

We can study the impact of a policy on our health and well-being without necessarily running a Randomized Controlled Trial (where you randomly assign some people to a treatment, policy, or program, and not others).

Many have proposed that we need to conduct this sort of formal scientific experiment first. Some have questioned how useful such limited studies would be. A Randomized Controlled Trial might tell us whether basic income works in a certain social, economic, and political setting, but tells us little about whether the policy would work in other settings, or why the policy had a particular effect.

We ought to be careful not to set ourselves up to fail with studies too narrowly drawn in scope. Mixed or unexpected results from such studies also risks misinterpretation, and can be used to prevent basic income from entering policy.

Although the Ontario Pilot Program represents a step in the right direction, nothing stops us from advocating for the full national implementation of basic income. A host of different research and study designs would be embedded into the impact evaluation of this federal policy, on par with health care or public education. Framing a given policy as a population health intervention acknowledges the fact that many there are health-promoting aspects to programs outside of health care sector (Hawe and Potvin 2009).

Basic income is such a policy. Programs to alleviate poverty lie outside the doctor’s office, but nevertheless have a profound impact on health.

Population Health Intervention Research compels us to think bigger than ourselves.

Traditional medicine treats the individual person. If we are looking at the effect of social programs and policies, this unit of analysis is often too small to see measurable differences in any single person. Moreover, if we restrict a given treatment or social program to the poorest people – such as welfare, we may see limited overall benefits to the population as a whole.

Epidemiologist Geoffrey Rose recognized this problem (Rose 1985). Imagine that people lie on a continuum of ‘risk’ for certain diseases and health outcomes. For example, this could be said of high blood pressure as a risk factor for heart attack. Higher blood pressure puts you at higher risk of heart attack.

For our purposes, let’s say this distribution represents the relationship between poverty and getting sick. Higher poverty puts you at higher risk of ‘sickness’. We might expect that most people lie somewhere in the middle of the distribution, while those at very high or very low poverty sit somewhere at the tails.

Rose noted that traditional medicine’s approach was to target high risk people at the far right. However, these people are a smaller proportion, and paying attention only to them might not give us the biggest bang for our buck. Instead, he posited that interventions that reach entire groups of people would ‘shift’ the distribution itself. At the end of the day, he estimated that these far-reaching treatments would have a bigger impact overall (Rose 1985).

Basic income fits that profile – a social policy that brings everyone up, effectively ‘shifting’ the distribution. In order to examine policies that lend a helping hand to everyone, we need a scientific lens that is broad enough to capture the whole picture. Reframing basic income as a population shifter might fill that void.

Lastly, population health interventions allow us to redirect our thinking from the problem to the solution.

We keep studying poverty, not the fixes for poverty. A population health intervention approach calls for the health sciences to consider the potential gains to be made by studying the impact of income interventions on population health. We should be turning our attention from studying how poverty effects our health, to studying how fixing poverty effects our health.

You might be quick to point out that we have not eradicated poverty yet. So, how do we study this state of affairs, when it doesn’t yet exist?

In some ways, we can. We have the pilot run in Dauphin, Manitoba that in many ways, was ahead of its time. Dr. Forget was the first to recognize the strength of “intervention-alizing” the Canadian basic income experiment. We can also examine policies that get close to basic income, such as the Bolsa Família program of Brazil – a conditional cash transfer available to families with children. In Canada, the non-conditional income grant for senior citizens called the Old Age Supplement has been analyzed as an analog to basic income (McIntyre, Kwok et al. 2016) and indeed, those researchers found that participants eligible for OAS reported better self-reported physical, mental, and function health. Importantly, they also found those on OAS (which is non-conditional) where better off than those on conditional income programs. These are innovative approaches to the question of basic income’s potential impact, using information we already have. And, it might move us from studies of poverty, toward studies of basic income.

As it stands, promoting basic income as a population health intervention for the sake of our health is underutilized, yet it seems like a sensible way to communicate the idea. Poverty is intricately tied to the material conditions of our lives and societal position in the world, predicated on sex, race, and class. How a policy like basic income works among these conditions deserves no less than comprehensive and holistic look at how our health is profoundly impacted. Research that is based on an understanding of population health intervention attempts to do just this – and capture the value and differential effect of these interventions, the processes by which they bring about change and the contexts within which they work best (Hawe and Potvin 2009).

The Dauphin Experiment and the impending Ontario Pilot have and will continue to shape our thinking moving forward. They are also a testament to the desire of Canadians for a better, kinder, healthier society for all. However, we have not yet fully transformed the public’s conception of poverty alleviation as a necessary policy, worthy of widespread implementation as are universal health care, public education, or social assistance.

Implementing a basic income as an essential social program and for our health is possible, and fully within our experience of policy-making at both the provincial and national levels. The time has come to make this a reality.

Sarah M Mah is a PhD student in the department of Geography at McGill University. She is also a member of the Asian Women for Equality Society, an organization dedicated to the campaign for a Guaranteed Livable Income.

The opinions expressed above are not necessarily those of BIEN or BI News.

References

Forget, E. L. (2013). “New questions, new data, old interventions: the health effects of a guaranteed annual income.” Prev Med 57(6): 925-928.

Hawe, P. and L. Potvin (2009). “What is population health intervention research?” Can J Public Health 100(1): Suppl I8-14.

McIntyre, L., C. Kwok, J. C. Emery and D. J. Dutton (2016). “Impact of a guaranteed annual income program on Canadian seniors’ physical, mental and functional health.” Can J Public Health 107(2): e176-182.

Rose, G. (1985). “Sick individuals and sick populations.” Int J Epidemiol 14(1): 32-38.

AUSTRALIA: Labor MP rejects UBI as solution to technological unemployment in new book

AUSTRALIA: Labor MP rejects UBI as solution to technological unemployment in new book

Jim Chalmers. Credit to: Financial Review.

 

Jim Chalmers, a Labor Party MP in Australia, claims that basic income, a concept gaining traction in Australia, is a “backward step”. His concerns focus on perceived increases in inequality and affordability issues. Chalmers and Mike Quigley, former chief executive of NBN Co, have laid out these views in their latest book, “Changing Jobs: The Fair Go in the New Machine Age”, released on the 25th September 2017.

 

According to Chalmers and Quigley, the way forward is to aim for full employment, in the face of technological change. This generally aligns with previous claims by Labor Party shadow treasurer Chris Bowen. They also agree that introducing basic income will also equate to slashing on the welfare state. As for unemployment, Chalmers is blunt: “feared widespread loss of jobs in the coming age of automation will not be fixed by giving everyone a basic income”. He also views basic income as basically unfair, since it would amount to giving the same support to a millionaire and to “a single mom struggling to keep food on the table”. That, however, is given out of tax context, since basic income proposals usually revolve around redistribution of tax money from the relatively richer people towards relatively poorer ones. Within this context, a millionaire will naturally be a net contributor to the basic income scheme.

 

However critical of basic income, Chalmers and Quigley present their own views of what can work for humanity in the near future, of which the Australian people are a close example. They think it is possible to use Big Data to predict “social problems at the household level before they emerge”. This, of course, comes along with high surveillance over people’s “work patterns, hours and wages”. With that and new ideas such as “income smoothing”, which will arguably complement low-paid workers incomes, or smooth their transition from better paid jobs to less paid ones (admitting that well paid jobs will definitely diminish, on average, in the foreseeable future). They also refer to reinforced unemployment benefits, financed by extra taxes on the general public and/or large corporations. To tackle future unemployment, Chalmers and Quigley recommend compulsory education on programming and robotics, while strengthening existing curricula with computational disciplines in order to elevate technological skills in everyone.

 

More information at:

Roberta Stewart, “AUSTRALIA: Shadow Treasurer Chris Bowen (Labor Party) Urges Party NOT to Support Universal Basic Income”, Basic Income News, 16th July 2017

Gareth Hutchens, “Labor MP ridicules universal basic income push and says it would worsen inequality”, The Guardian, 24th September 2017

Daniel Raventós, “Basic Income – The material conditions of freedom”, Pluto Press 2007

IRELAND: Budget Analysis Seminar on Wednesday 11th October

IRELAND: Budget Analysis Seminar on Wednesday 11th October

Social Justice Ireland examines the fairness of seven different options for tax changes in their new publication released on Wednesday 4th of October. The new Irish Budget will be announced next Tuesday, 10th October, and the Social Justice Ireland analysis shows that much of what is being proposed is unfair and unjust. Fairer options are identified in the publication referred.

 

On the 11th of October, a Budget Analysis Seminar will take place, over which Social Justice Ireland will present a full Budget 2018 Analysis and Response, at 11am in Buswells Hotel. The seminar briefing will get behind the numbers and examine the impact of the choices Government makes in a variety of areas including taxation, social welfare, health, ODA and education. The analysis will identify who gains and who loses as a result of Budget 2018. There will also be an opportunity for questions and discussion. The event is free but pre-registrations are compulsory (registers here).

 

 

More information at:

 

Social Justice Ireland, “Fairness in Changing Income Taxes – seven options compared”, October 2017