UK citizens tend to support UBI until funding mechanism specified, survey finds

UK citizens tend to support UBI until funding mechanism specified, survey finds

The Institute for Policy Research at the University of Bath, which has published a series of reports on the feasibility and implementation of basic income, commissioned a recently published survey on attitudes towards basic income in the UK.

The survey was conducted by the British market research organization Ipsos MORI, who interviewed a sample 1,111 individuals from the UK population aged 18 to 75. Interviews were conducted online in August 2017. In the recently published results, the survey data are weighted to represent the general UK population according to age, gender, region, employment status, social grade, and educational attainment.

In a series of three multi-part questions, Ipsos MORI queried respondents about their views on universal basic income (UBI), which it defined, similarly to BIEN, as “a regular income paid in cash to every individual adult in the UK, regardless of their working status and income from other sources In other words, it would be: universal (i.e. paid to all), unconditional (i.e. paid without a requirement to work); and paid to individuals (rather than to a household).”

Interviewees were also instructed to assume, for the purposes of the survey, that the amount of the UBI “would be set roughly at the amount the UK government judged to be necessary to cover basic needs, e.g. food and clothing (but not housing costs).”

Before laying out the description of UBI, the survey questionnaire additional mentioned, “As you may be aware, some countries are considering introducing a basic income.”

Results

Asked whether they would support UBI described as above, 49% of respondents replied affirmatively (15% “strongly support” and 33% “tend to support”), while 26% replied negatively (17% “strongly oppose” and 9% “tend to oppose”).

Reported levels of support decreased substantially, however, when funding mechanisms were specified. Only 30% would support UBI if it entailed an increase in taxes, with 40% opposing UBI in this case. Meanwhile, 37% would support, and 30% would oppose, a UBI funded by cuts on spending on current welfare benefits. If both funding mechanisms were put into place, support for UBI decreases to 22%, while opposition increases to 47%.

The preceding result is similar to what was observed in a 2016 poll conducted by Canada’s Angus Reid Institute, which saw that respondents tended to favor basic income in principle, but  would not support an increase in taxes to fund it in their country.

In the second question, respondents were asked “Regardless of whether you support or oppose the UK Government introducing a basic income, which of the following, if any, would be your most preferred way of mainly funding a basic income, if it was introduced?” Options included “increasing taxes on wealth” (34% favored), “cutting existing welfare benefits” (28% favored), “raising income tax” (12% favored), and “other” (3% favored).

The second part of this question broadens the definition of a “basic income scheme” from the initial definition, asking respondents if they would support such as program if certain compromises were made to universality and unconditionality. More than half of respondents replied that they would support a policy “only paid to those who are in work, in training, doing voluntary work, or pensioners” (52% strongly support or tend to support) or one “only paid to those on low incomes” (57% strongly support or tend to support), with only 18% and 17%, respectively, reporting opposition to the policies. (It should be noted, however, that it would conflict with most established uses of the term–including that of BIEN–to call such a policy a “basic income” scheme.)

Support decreased if the program were only to benefit young people (aged 18 to 24) “who are in work, full time education, or in training”: 35% would support (or tend to support) such a program, while 33% would oppose (or tend to oppose) it.  

The third and final question queried interviewees on the “how convincing” they personally found each of six arguments that have been made in favor of basic income. The results tentatively suggest that, among British adults, arguments that emphasize the ability for UBI to support unpaid work tend to have more pull than those that emphasize the policy’s potential to encourage traditional paid work.

The argument judged most convincing was one that framed UBI as a way of recognizing the value of unpaid work: “Many people do very important work that is unpaid, such as caring or other voluntary work. A basic income would be a way of rewarding and encouraging others to do this type of work.” A full 79% of respondents found the argument “very” or “fairly” convincing, while only 15% judged it “not very” or “not at all” convincing.

All arguments provided were found to be more convincing that not (i.e. considered by a majority of survey respondents to be “very” or “fairly” convincing). However, the least persuasive was found be the following: “Many unemployed people do not have an incentive to find a job because benefits they may currently be receiving are withdrawn. As everyone would receive it, a basic income would encourage unemployed people to get a job by allowing them to keep that basic income if they find work.” A relatively small 57% deemed this argument “very” or “fairly” convincing, and 35% found it unconvincing (or “not very” convincing).

Other arguments focused on automation, job insecurity, bureaucracy in administering welfare, the “harsh and unfair” nature of conditional welfare programs.

 

More information about the survey, including all weighted and unweighted data, is available here:

Ipsos MORI, “Half of UK adults would support universal basic income in principle,” 8 September 2017.


Reviewed by Russell Ingram

Photo (Newquay, Cornwall, United Kingdom) CC BY 2.0 Giuseppe Milo

FRANCE: “Monthly Dossiers” debuts with issue on UBI

FRANCE: “Monthly Dossiers” debuts with issue on UBI

Cairn’s Monthly Dossiers is a free online publication designed to highlight the work of francophone scholars in the social sciences and humanities. Each month, the publication focuses on a topic of current social or political relevance.

Universal Basic Income (UBI) was the topic selected for the debut issue, released on June 15, 2017. As the introduction to the dossier notes, the issue came to prominence in France earlier in the year due the campaign of presidential candidate Benoît Hamon, who won the Socialist Party primary after making a UBI proposal a cornerstone of his campaign.

The dossier features the work of Stéphan Lipiansky, Jean-Éric Hyafil, Denis Clerc and François Meunier.

Lipiansky, an associate professor of economics and management, examines the rise of interest in UBI in Europe during the 1970s and 1980s, linking it to the decay of a “social consensus” around the goal of full employment. He emphasizes UBI’s potential role in a cultural shift in which occupational identity is no longer the key defining attribute of an individual’s social role.  

Hyafil, a leader of the French BIEN affiliate Mouvement Français pour un Revenu de Base, presents UBI as a means to emancipate individuals from the need to work (in view of the fact that, in present society, the pressure to work leads to the creation of and participation in “bullshit jobs” of little or no social utility). In his article, he delineates a UBI proposal for France, and describes a path to introducing the policy through a series of reforms to the revenu de solidarité active (RSA), the country’s existing minimum income scheme for the poor and unemployed (currently €460 per month).

Clerc, the founder of Alternatives Économiques, considers UBI proposals of three different monthly amounts–€100, €460 (equivalent to the RSA), and €800 (equivalent to the minimum pension)–and argues that any potential benefits are too uncertain to merit the risks and certain costs of implementing the policy. As an alternative social policy, he proposes lifelong training to increase individuals’ employability.

Meunier, an economist and consultant, takes on two arguments commonly given for UBI: that it is more respectful to recipients due to its lack of surveillance and paternalism, and that it is easier to administer due to its simplicity. Meunier contends that conditional welfare is not objectionable in its level of oversight–which might be construed as the expression of care for beneficiaries–and that the simplicity is illusory.

The dossier also includes links to supplemental material (in French) by Anton Monti (on the Finnish experiment), Philippe Warin (on the phenomenon of non-usage of the RSA and its implications for UBI), and Yannick Vanderborght and Philippe Van Parijs (on the history of the idea of UBI and its differences from programs like the RSA).

The second issue of Cairn’s Monthly Dossiers was on the topic of Populism.


Parisian café photo CC BY-NC-ND 2.0 Jeff Dzadon

United States: Philosophy class examines universal Basic Income whose time has come

United States: Philosophy class examines universal Basic Income whose time has come

A Stanford University class –available on a podcast replays the 1970s Manitoba, Canada, experiment called “mincome,” on the way to rejoicing in Universal Basic Income.

In the U.S., Silicon Valley entrepreneurs like Mark Zuckerberg of Facebook, who according to some is preparing to run for U.S. President, are promoting universal basic income.

What does basic income mean, students ask? The contentious subject raises many questions, such as: would society fall apart because everyone would just hang out on the couch?

The Stanford class seeks to separate the argument that robots will replace 47% of jobs, a prediction that fuels much of Silicon Valley’s support of basic income, from the “paradigm of work” dialogue, according to Juliana Bidadanure, Assistant Professor in Political Philosophy at Stanford University, who is teaching the class.

The podcast studies the observations of many “experts” on culture, race and gender in an effort to separate jobs (wage-work) from understanding the true nature of work. Several contributions are under analysis, such as the following:

– Doug Henwood — Journalist, economic analyst, and writer whose work has been featured in Harper’s, Jacobin Magazine, and The Nation, says if robots were really taking over, there would be a strong productivity growth in the U.S., which is not true, so far;

– Rutger Bregman — Journalist and author of “Utopia for Realists: The Case for a Universal Basic Income, Open Borders and a 15-hour Workweek” thinks that if basic income were accomplished by the government printing money, that situation would definitely lead to inflation. But no inflation fears would be attached to a taxation process;

– Kathi Weeks — Marxist, feminist scholar, associate professor of women’s studies at Duke University in North Carolina, and author of “The Problem with Work: Feminism, Marxism, Antiwork Politics, and Postwork Imaginaries” believes that wage-work is not the only meaningful activity. She points to pre-industrial society as a good example of when wage-work took a backseat to the value of non-paid work;

– Evelyn Forget — Economist and professor in the Department of Community Health Sciences at the University of Manitoba and academic director of the Manitoba Research Data Centre, who first reported the “mincome” data. Forget argues that “mincome” made it possible for single mothers to get off welfare and proudly have a profession.

 

A second podcast will be available that discusses whether universal basic income is the end of capitalism or not.

More information at:

Podcast: Universal Basic Income – An Idea Whose Time Has Come

 

 

 

TruthOut Interview with Jurgen De Wispelaere

TruthOut Interview with Jurgen De Wispelaere

Jurgen De Wispelaere, a research fellow at the Institute for Policy Research, University of Bath was interviewed on August 7th by Truthout, a nonprofit web-based news  and commentary site whose aim is to provide  “a platform for transformative ideas, through in-depth investigative reporting and critical analysis.”  In this interview, he makes several important points regarding some of the issues in the current debate and research on Basic Income.

 

De Wispelaere’s key position is that Basic Income’s aim should be first and foremost about relieving poverty and social exclusion. Poverty is fundamentally a lack of money and Basic Income offers a solution to that problem. Compared to other forms of welfare, Basic Income avoids the well-known poverty trap, where earning wages leads to a loss of benefits, while also reducing the need for some of the bureaucracy associated with contemporary welfare states. De Wispelaere also says that welfare states already dispense some amounts of cash or quasi-cash, with Basic Income the main difference is really about how the money is distributed.  As he says, “it is not just about whether or not you have more cash with a Basic Income, but also about how you get your cash.” Basic Income is characterized mainly by its unconditionality. De Wispelaere also mentions the Mike Leigh movie, “I, Daniel Blake” as an illustration of how current welfare policies can cause significant problems and how an unconditional Basic Income could make a big difference.

 

 

De Wispelaere also speaks about the value of Basic Income experiments, stressing that conclusions reached from one experiment may not be valid elsewhere due to limitations of time and location. Nevertheless, he argues that the experiments are worth pursuing and he identifies three key reasons for performing Basic Income experiments: implementation, politics, and philosophy.

 

There are a number of aspects of implementation that can be identified and fixed through running a limited experiment, things that are difficult to predict from a theoretical standpoint alone.  Basic Income, although it is often presented as such, is not a simple policy; it will interact with other policies such as housing benefits, disability assistance, the tax system and pension rights. When doing an experiment, these interactions can also be tested, along with other parameters. Another great motivation for Basic Income experiments is politics. Risk-averse politicians may like the idea of a Basic Income but be reticent to propose implementing it in full.  A limited trial can help gather more political support for a wider implementation. Finally, philosophical considerations reflect the different viewpoints as to whether we can trust people to play by the rules, or whether they are fundamentally lazy. Or, as De Wispelaere puts it, “do we think that the whole range of people to which Basic Income applies all are going to turn into Homer Simpsons?” According to De Wispelaere, “in many cases, evidence alone can’t solve these issues. It’s a philosophical and moral argument that has to be fought and won.”

 

De Wispelaere also says in the interview he is not convinced by the “Robots Are Coming” narrative. First, because we need Basic Income now to alleviate poverty, job fluctuation, and insecurity. Second, because when the robots do come there will be other significant issues that arise and Basic Income is not enough to solve those. Regarding the Silicon Valley positions, De Wispelaere says:  “It is a bit of a caricature, but what they are effectively proposing is a very polarized, divided society. They talk about Basic Income as a necessary part of the solution but don’t mention other important social and economic struggles between the ‘haves’ and the ‘have-nots’. For me, Basic Income may be necessary, but it’s certainly not enough.”

 

More information at:

 

Kristian Haug, “Universal Basic Income Is About Trust and Decency”, Interview with Jurgen De Wispelaere, August 7th, 2017

 

Kate McFarland, “Jurgen De Wispelaere and Lindsay Stirton, ‘When Basic Income Meets Professor Pangloss’”, Basic Income News, January 28th, 2017

China’s unconditional cash program: Implications for basic income

China’s unconditional cash program: Implications for basic income

The People’s Republic of China has created the largest unconditional cash transfer program in the world. It is called dibao, meaning Minimum Livelihood Guarantee. A recently published book is taking a fresh look at how effective dibao is at improving the livelihoods of impoverished Chinese people.

Dr. Qin Gao is on the faculty of the Columbia University School of Social Work, where she researches poverty, income inequality, and social welfare programs in China.

Gao has done extensive work researching dibao, and has released the book “Welfare, Work, and Poverty: Social Assistance in China,” which evaluates how well dibao has achieved its goals of lowering the amount and intensity of poverty in China.

The UBI Podcast recently interviewed Gao on her new book about the dibao program and asked her to give her thoughts on universalizing dibao.

Dibao is important to understand for basic income researchers because it demonstrates on a large-scale how basic income operates when it is not universal (since it includes a means test).

The dibao program allows each locality to set its own dibao standard (essentially the poverty line). Anyone below that standard is technically eligible for dibao assistance. The assistance in theory gives an individual enough money to reach the dibao standard. Eligibility for dibao is based on individual income, so one individual in a household could qualify, while another may not, Gao said.

For example, a dibao standard in Beijing, China is 900 RMB per person per month. If an individual made 700 RMB per month, dibao would provide 200 RMB in assistance to reach the dibao line of 900.

While some may worry that officials will cut off dibao assistance once an individual goes over the line, Gao said the reality is more complicated.

“In reality, many local officials are very considerate of the fluctuation in people’s incomes and other family situations. For example, education needs, health care needs. So many localities actually have initiatives to not discontinue people’s dibao benefits right away if they have income that’s higher than the local dibao line,” she said.

Some localities may allow a family to stay on dibao for three months after extra income is earned to make sure they have job security and they “do not fall back into poverty right away.”

Once a family receives the cash, it is unconditional, meaning there are no (direct) behavioral conditions to continue receiving the money.

Gao said the evidence that dibao creates a poverty trap, where families remain under the poverty line intentionally to receive assistance, is not strong.

Some localities have families update their income and wealth information every three to six months. Certain villages will even publish the names of recipients to allow for public feedback on whether a family should qualify for dibao. Based on the feedback, localities will randomly select people to verify their income information.

“So it’s a very systematic and stringent process,” Gao said.

For some villages, allowing others to comment on a family’s poverty situation may further stigmatize the dibao and other forms of welfare.

“Because the dibao is an unconditional cash transfer, so by design the policy requires applicants to tell the truth and other community members and neighbors to share the responsibility of monitoring. That is part of the design of this program,” Gao said.

While on paper, the dibao is technically an “unconditional cash transfer,” the way dibao measures wealth creates its own form of conditions.

Depending on the locality, dibao recipients may face a myriad of asset tests that prevent them from owning pets, a larger than average home, a car, or luxury items. Expensive private schools and schools abroad are off-limits. In the past, even a cellphone was a disqualifier.

“I think now, many localities are more lenient on that, especially on the cell phone. But there are certain luxury goods (so-called), that you’re not supposed to have. That also features into the feedback from the neighbors and community members. They would get critical and jealous if you have certain luxury goods that they don’t have but you are getting dibao,” Gao said.

In Gao’s book, she also analyzes the subjective well-being and social participation of dibao recipients. She found dibao recipients “tend to be more isolated, and less active in their social participation” than similar peers.

Dibao recipients may feel stigmatized from participating in these activities, such as going to the movies, since it is not a “culturally acceptable use of the dibao income,” she said.

After China’s transition from a planned economy to a market-based economy, society’s expectations about how families earn their own living changed. Now it is expected that people “earn a living through their own work.” Although, Gao said China is currently going through a debate about who “deserves” welfare.

“Previously people had guaranteed jobs, but many people during the economic transformation were laid off so able-bodied adults couldn’t support themselves through jobs anymore. And that group is making up about half of the dibao population,” Gao said.

One area of concern for policymakers is ensuring the dibao is reaching the “proper recipients;” that is people in poverty. There are reports of targeting errors in administering dibao “because of misreporting or difficulty to capture the real income or assets situation in rural areas.”

“The targeting error is real and local officials are very aware of it, but that will stay with the program because of the variations of family conditions and income,” Gao said.

The dibao standard is often used as a criteria for other welfare as well. This means that qualifying for dibao also gives a family access to a host of other assistance (including education, housing, and medical assistance). However, this could create a “welfare cliff” issue, where if a family exceeds the standard they may lose a lot more assistance than they gain as income.

“I think this is one of the policy design features of dibao that needs to be revised right now,” Gao said of dibao acting as a “gatekeeper” for other social assistance.

Overall, dibao has only reduced the rate of poverty to a “modest degree.” It is more effective at reducing the depth and severity of poverty, Gao said.

When asked about the potential to universalize dibao and remove the means-test, effectively creating a Universal Basic Income for China, Gao said this idea has been “very much on my mind recently.”

“I think the best possibility probably would be for certain more developed localities to experiment with such a program and see how it works,” she said.

As for creating a UBI program in China in the near-term, Gao said this would be challenging for many reasons.

“To make the dibao or a similar cash transfer universal all around China, I don’t think it’s very likely in the short-term, both in terms of fiscal challenges and also political and cultural challenges,” Gao said.