by Kate McFarland | Aug 9, 2016 | News
Labour Party leader Jeremy Corbyn stated in a recent HuffPost interview that he is “instinctively looking at” a basic income, along with Labour’s Shadow Chancellor John McDonnell.
Jeremy Corbyn, the Leader of Britain’s Labour Party, was recently asked about universal basic income (among other topics) in an interview with HuffPostUK. Corbyn replied that he and Shadow Chancellor John McDonnell are “instinctively looking at” the policy.
Here is the remainder of his answer:
I am looking forward to discussing it with our colleagues from Norway because we have to think radically about how we bring about a more just and more equal society in Britain, how we develop policies that achieve that.
Because what we are doing is heading in absolutely the wrong direction with a growing wealth inequality and an opportunity inequality for communities, as well as poorer families. It’s got to change and it will.
I can see the headline attraction to it. I don’t want to commit to it until I’ve had a chance to look at it very seriously and very carefully because this would be a major, major change in social policy and it’s something I would invite the whole party and the whole movement to have a serious discussion about.
What I want to do is develop policymaking through to 2020, where it’s very obvious what the general direction is we are going, on environmental policy, on housing policy, and health policy.
Corbyn was soon shown right about the “headline attraction” of basic income. Immediately following the interview, HuffPostUK editor Paul Waugh published an accompanying article with the headline “Jeremy Corbyn Looking At ‘Universal Basic Income'” And, on the next day, an article appeared in The Independent with the title “Universal Basic Income: Jeremy Corbyn considering backing radical reforms”.
John McDonnell has been a supporter of basic income prior to his appointment as Shadow Chancellor in September 2015. Earlier in this year, he encouraged the Labour Party to consider adopting UBI as official party policy on several occasions, most notably at events in February and June. To date, however, the Labour Party has not made basic income part of its platform.
Following Brexit, the Labour Party reached over 500,000 members, its highest number in decades.
More Information
Full interview with Jeremy Corbyn, which also touches upon housing policy and other issues:
Paul Waugh, “Jeremy Corbyn Interview: On Owen Smith, Trident, Brexit, The Housing Crisis And A ‘Universal Basic Income’“, HuffingtonPost UK; August 6, 2016.
Subsequent press concerning Corbyn’s remarks about UBI:
Paul Waugh, “Jeremy Corbyn Looking At ‘Universal Basic Income’; Says House Price Fall Could Help Tackle Housing Crisis“, HuffingtonPost UK; August 6, 2016.
Siobhan Fenton, “Universal Basic Income: Jeremy Corbyn considering backing radical reforms“, The Independent; August 7, 2016.
Background about the British Labour Party’s recent interest in UBI:
Kate McFarland, “UNITED KINGDOM: Labour Party to look into Basic Income”, Basic Income News; June 6, 2016.
Toru Yamamori, “United Kingdom: Labour Party considers universal basic income”, Basic Income News; February 21, 2016.
“Basic Fact Checking”
In his HuffPostUK articles, Paul Waugh states, “The universal basic income idea has been around since the 1970s but has recently become popular and Canada’s Ontario and Norway are both starting pilot schemes.” Two brief remarks:
1. Out of Scandinavian nations, Finland is much more advanced than Norway in planning a basic income experiment, with one set to begin in 2017. While Norway has held conferences to discuss the idea of a basic income, it has not announced any plans for a pilot study.
2. It’s true that the “universal basic income idea has been around since the 1970s” — but perhaps notable that the idea (and even the term ‘basic income’) has been around longer.
Jeremy Corbyn photo CC by ND 2.0 70023venus2009
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by Kate McFarland | Aug 2, 2016 | News
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.
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.
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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by Kate McFarland | Jul 24, 2016 | News
Eric Walberg is a Canadian journalist who specializes in the Middle East, Central Asia and Russia, and has been writing on East-West relations since the 1980s.
Last May, he published two articles related to basic income, which are available on his website:
1. “Basic Income: Helicopter money“* (May 26)
This article makes an argument for a guaranteed annual income (GAI) in Canada as a way of abolishing poverty. Referencing Evelyn Forget, he suggests a GAI of $18,000: if a Canadian has no other money, the state will issue them a GAI of $18,000 in full; however, the amout of the supplement would taper off with additional earned income, with a “break even” point around $30,000.
“Basic Income – International experience (Brazil, Namibia, Canada, India)” (May 31)
This article reviews the results of basic income trials in Canada (1974-9), Namibia (2008), and India (2011) (and, briefly, Brazil’s cash-transfer program, Bolsa Familia) — noting, for instance, that the trials provide strong counter-evidence to the common concern that, with a basic income, people will stop working or spend their money unwisely.
* While Walberg’s argument for GAI is well worth reading, it’s important to point out that the title of the article is misleading, as is a sentence in the first paragraph.
Two points of clarification:
• The term ‘basic income’ usually refers to unconditional or universal basic income (UBI), which is not the same as GAI. A UBI is not means-tested; for example, the $18,000 subsidy would go to all Canadians, regardless of other income, if it were a UBI.
When Walberg cites a cost of $12 billion, this is the cost of “topping up” the incomes of Canadians to a level high enough to get the unemployed and low-earners out of poverty — not the cost of providing every Canadian with $18,000 per annum.
• Neither ‘basic income’ nor ‘guaranteed annual income’ should be used synonymously with ‘helicopter money’. Helicopter money — the printing of new money to be distributed directly to individuals or households — is one possible way to finance a basic income. It has been supported recently by American investor Bill Gross and the European group Quantitative Easing for the People, among others. However, many supporters of a basic income (of GAI) do not favor the printing of new money; more commonly, in fact, their proposals rest on the redistribution of existing income.
by Guest Contributor | Jul 23, 2016 | News
The Government of Ontario is moving to undertake a basic income pilot project. In recent weeks it has been receiving expert information and advice, for example from Jurgen De Wispelaere (formerly on the Board of Basic Income Canada Network and now a member of its new Advisory Council). On May 26th De Wispelaere presented to the government’s Deputy Ministers Social Policy Committee.
Two of the most knowledgeable experts concerning the Manitoba Mincome experiment of the 1970s are its former executive director, Dr. Ron Hikel, and University of Manitoba economist and researcher Dr. Evelyn Forget. At the recent North American Basic Income Congress in Winnipeg, Dr. Hikel spoke about Mincome and lessons learned that could be applied to the Ontario pilot. I also recommend watching Dr. Forget’s appearance on June 13th on Steve Paikin’s program, The Agenda: the 17 minute video reflects Evelyn’s sweeping knowledge of the history and results of Mincome.
Another encouraging sign of the Ontario government’s seriousness behind giving basic income a try was its appointment last month of the Hon. Hugh Segal as the pilot’s special advisor. A trailblazer for basic income in Canada over the past 40 years, Mr. Segal will now “deliver a discussion paper to the province by the fall to help inform the design and implementation of the pilot….The discussion paper will include advice about potential criteria for selecting target populations and/or locations, delivery models and advice about how the province could evaluate the results of the basic income pilot” (source).
Ontario’s Premier, the Hon. Kathleen Wynne, has publicly recognized that Ontario needs to investigate basic income as an alternative to welfare. Among welfare’s many problems: its profound stigmatization of “clients” of the system. And on that, I recommend David Calnitsky’s fine academic paper exploring the non-stigmatizing effects of Manitoba Mincome.
by Rob Rainer
Basic Income Advocate and Member, Advisory Council of Basic Income Canada Network
by Guest Contributor | Jul 22, 2016 | Opinion
It was a remarkable moment in 1969 when President Nixon offered universal basic income (UBI) legislation that was passed twice by the US House of Representatives, but failed to garner enough votes in a Democratic controlled Senate on both occasions. It was defeated despite the intellectual clout of 1200 bi-partisan economists, including Milton Friedman who designed the “guaranteed income” bill, and John Kenneth Galbraith who publicly supported the bill. The irony: a public welfare program proposed by Republicans was stalled by Democrats, who viewed the suggested $1,600 ($10,000 in today’s dollars) per year for each recipient as insufficient. [1] While Europe maintained a broad network of intellectuals, publications, and conferences promoting the idea, UBI policy has been largely absent from American political discourse ever since, other than among a committed following on Reddit, some forward thinking academics, and US affiliates of BIEN.
Andrew L. Stern
President Emeritus SEIU
Columbia University Richman Center
Ronald O. Perelman Senior Fellow
Over the past year, though, growing support from an array of thought leaders suggests a rising tide for UBI in the US. President Obama, in an interview with Bloomberg News this June, discussed the need to “build ourselves a runway” to ease the transition into an increasingly automated labor force. [2] Bernie Sanders has, on multiple occasions, expressed his support of UBI, stating in a 2015 interview that he is “absolutely sympathetic to that approach.” [3] Recently, UBI has received full-throated support from leading thinkers like Berkeley’s Robert Reich, Columbia’s Joseph Stiglitz, INET President Rob Johnson, Google CEO Eric Schmidt, former Zipcar CEO Robin Chase, Judith Shulevitz – writing in the New York Times, and Nobel Laureate Angus Deaton. This June past, my book Raising the Floor: How a Universal Basic Income Can Renew Our Economy and Rebuild the American Dream was released, and has helped to expand the discussion of UBI to progressives, unions, and mainstream media outlets like the FT, CNBC, NPR, Fortune, and the New York Times.
Matthew Kessler-Cleary
The interest in UBI is gaining prominence and commentary in mainstream think tanks across the political spectrum, which is an anomaly in our modern, divided political dynamic. From the progressive to libertarian poles, at places like Roosevelt Institute, INET, OSF, CATO, and AEI, basic income is gaining support as a solution to the economic crises of our present, and future. In the fall, the CATO Institute, whose Michael Tanner is a libertarian thought leader and key discussant in my book, is planning to host a forum in Washington, DC including Charles Murray and myself.
Global developments around UBI should also help to bolster UBI’s place in American political discourse. Canadian Prime Minister Justin Trudeau has incorporated basic income into the Liberal Party’s platform, [4] and Canada is preparing a basic income experiment for residents of the Ontario province.[5] Following the city of Utrecht’s decision, several other Dutch cities will test basic income policies in the coming years. [6] As these trials play out, hopefully with positive results or lessons that allow for improvement, the American public and their elected officials will have solid evidence upon which an American policy, perhaps city or state based experiments, can be built. Already, a small-scale basic income experiment will be carried out by Y-Combinator in Oakland, where unconditional income will be provided to roughly 100 Oakland residents for 6-12 months. [7]
In my book, I state that the American response to the tsunami of job upheaval will look more like the response to the Vietnam, rather than the Iraq War. In the Vietnam era a draft placed the children of middle-class families at risk, as they are again, as present and future technologically motivated job loss does not spare college graduates or white-collar occupations.
During the Vietnam era, the selective service draft mobilized parents from every walk of life to be vocal anti-war activists. Once their own children could be drafted to fight and die, many parents began questioning whether President Johnson had any justification for sending troops there. The draft also mobilized young people: Vietnam did not fit into their college and career plans, nor did the idea of killing people or getting killed in a far-off land.
Job loss has for too long been considered a condition of a more blue-collar, uneducated, and low-skill labor force. Not only is this prejudicial and inaccurate, but it is no longer supported by employment statistics. Unemployment and underemployment among recent college graduates is still significantly higher than pre-Recession levels, indicating that in the New Economy, white-collar jobs are susceptible to job erosion much as blue-collar jobs have been for the past several decades. [8] So while it was easy for legislators, prominent thinkers, and middle and upper class individuals to discuss job loss from the comfort of their personal professional security, as economists still do, they and their children are increasingly affected by the shifting labor paradigm. Job loss and erosion in the white-collar economy has the potential to mobilize a far more diverse and broad political movement to search for solutions to the economic and employment challenges of the future.
While there is a myriad of ideas on how to combat the restructuring of our emerging socio-economic paradigm, none have as of yet enjoyed the broad political support that UBI does. None provide such a simple means of addressing very complex problems: ending poverty; offering stability during any economic transition; or providing for universal assistance as technology creates a tsunami of labor market disruption. In the United States a new conversation has started on UBI, and it is our responsibility to ensure that the momentum does not wane. The time is now, and the solution is simple: make Universal Basic Income an American reality.
References
[1] https://www.jacobinmag.com/2016/05/richard-nixon-ubi-basic-income-welfare/
[2] https://www.bloomberg.com/features/2016-obama-anti-business-president/
[3] https://www.vox.com/2015/7/28/9014491/bernie-sanders-vox-conversation
[4] https://www.liberal.ca/policy-resolutions/97-basic-income-supplement-testing-dignified-approach-income-security-workingage-canadians/
[5] https://qz.com/633974/ontario-canada-announced-a-plan-to-test-universal-basic-income-for-all-citizens/
[6] https://qz.com/473779/several-dutch-cities-want-to-give-residents-a-no-strings-attached-basic-income/
[7] https://blog.ycombinator.com/moving-forward-on-basic-income
[8] https://www.epi.org/publication/the-class-of-2015/
