BIG PILOT PROJECT IN NAMIBIA HAS POSITIVE IMPACT (from 2008)

This essay was originally published in the USBIG NewsFlash in October 2008.

 

In January 2008, a Basic Income Grant (BIG) pilot project began in the Otjivero-Omitara area in Namibia. All residents below the age of 60 years receive a Basic Income Grant of 100 Namibian dollars per person per month, without any conditions attached. According to BIEN, the grant is being given to every person registered as living there in July 2007, whatever their social and economic status. This BIG pilot project is designed and implemented by the Namibian Basic Income Grant Coalition (established in 2004) and is the first universal cash-transfer pilot project in the world. The BIG Coalition has just published its first assessment report on the project, which compares the results of a baseline study and a panel survey after the first six months of implementation.

1. The community itself responded to the introduction of the BIG by establishing its own 18-member committee to mobilize the community and advise residents on how they could improve their lives with the money. This suggests that the introduction of a BIG can effectively assist with community mobilisation and empowerment.

2. Since the introduction of the BIG child malnutrition in the settlement has dropped remarkably. Using a WHO measurement technique, the data shows that children’s weight-for-age has improved significantly in just six months from 42% of underweight children to only 17%.

3. Since the introduction of the BIG, the majority of people have been able to increase their work both for pay, profit or family gain as well as self-employment. This finding is contrary to critics’ claims that the BIG would lead to laziness and dependency.

4. Income has risen in the community since the introduction of the BIG by more than the amount of the grants. There is strong evidence that more people are now able to engage in more productive activities and that the BIG fosters local economic growth and development. Several small enterprises started in Otjivero, making use of the BIG money being spent in the community.

5. More than double the number of parents paid school fees and the parents prioritized the buying of school uniforms. More children are now attending school and the stronger financial situation has enabled the school to improve teaching material for the pupils (eg. buying paper and toner). The school principal reported that drop-out rates at her school were 30-40% before the introduction of the BIG. By July 2008, these rates were reduced to a mere 5%.

6. The BIG supports and strengthens Government’s efforts to provide ARV treatment to people suffering from HIV/AIDS by enabling them to access governments services and afford nutrition.

7. The residents have been using the settlement’s health clinic much more since the introduction of the BIG. Residents now pay the N$4 payment for each visit and the income of the clinic has increased fivefold.

8. The criticism that the grants are apparently leading to more alcoholism is not supported by evidence from the community. On the contrary, the introduction of the BIG has induced the community to set up a committee that is trying to curb alcoholism and that has worked with local shebeen [unlicensed tavern] owners not to sell alcohol on the day of the pay-out of the grants.

9. The introduction of the Basic Income Grant has helped young women recipients to take charge of their economic affairs. Several cases document that young women have been freed from having to engage in transactional sex.

10. Economic and poverty-related crime (illegal hunting, theft and trespassing) has fallen by over 20%.

11. The BIG has helped to achieve progress towards all eight Millenium Development Goals.

In brief, according to the report the initial results of this pilot project are very encouraging and by far exceed the expectations of the BIG Coalition. The local community has embraced the pilot project and is engaged in efforts to make it work well. According to BIEN, as commented by one of the community’s residents: “Generally, the BIG has brought life to our place. Everyone can afford food and one does not see any more people coming to beg for food as in the past. What I can say is that people have gained their human dignity and have become responsible.” (Jonas Damaseb, June 2008) Bishop Dr. Z. Kameeta, speaking at the report launch on October 2nd, said: “We, as a Nation, cannot wait to address poverty head on. We cannot wait to implement a universal Basic Income Grant nation wide. This is a challenge for the whole country.”
-Karl Widerquist, Oxford UK, October 2008
Further information about the project is available on www.bignam.org.
Including a video of the presentation of the report at https://www.bignam.org/page4.html.
An article on the report published by “The Namibian” (October 3, 2008) in online at https://allafrica.com/stories/200810030605.html

MEXICO: Potential presidential candidate Ricardo Anaya supports basic income in his campaign

MEXICO: Potential presidential candidate Ricardo Anaya supports basic income in his campaign

Ricardo Anaya. Credit to: OMB Online.

 

Ricardo Anaya, potential candidate for Mexico’s next presidential elections in July 2018, presents an unconditional basic income as his main proposal in matters of social policy. An overview of this proposal, as spoken by Anaya, can be watched in this short video. Here, in general terms, he presents the basic income proposal, describing what are the ten main advantages of its implementation, in his view. Financing it would essentially come from reorganizing public spending and deeply changing social policy programs within the government.

 

This initiative comes from a joint ticket between the centre-right Partido Acción Nacional (National Action Party – PAN) and centre-left Partido de la Revolución Democratica (Party of the Democratic Revolution – PRD), plus leftist Movimiento Ciudadano (Citizens Movement – MC), which calls itself Por Mexico al Frente (Put Mexico Ahead, former Frente Ciudadano (Citizen’s Front)). This coalition aims at “winning the Presidency, building a stable majority government and establish the first coalition government in Mexico’s history”, as ex PAN national leader Anaya Cortés has declared.

 

The basic income proposal under consideration within the bounds of this coalition aims at a 10 000 Pesos (US$537) per year for every Mexican citizen, including children. Jorge Alvarez, a Mexican congressman involved in the plan has said in an interview that financing this could be done by consolidating funds from federal, state and municipal welfare programs. He also added that this basic income for children could be made conditional on school enrolment. That latter comment, of course, deviates from what would be an unconditional basic income, but such condition has been introduced in other proto-basic income-like programs, such as the Bolsa Familia in Brazil. It could then be referred to as an alternative to basic income for children.

 

Independently, senator Luís Sánchez Jiménez from PRD has requested the Mexican Senate to look into the cost of various minimum income schemes, including universal ones, through its research department. This report will soon be available, authored by John Scott, a professor/researcher in the Department of Economics at the Centro de Investigación y Docencia Económic (CIDE) in Mexico.

 

More information at:

Editorial Processo, “PAN, PRD y MC desechan Frente Ciudadano; su alianza se llamará “Por México al Frente” (PAN, PRD and MC discard Frente Ciudadano: their aliance will be called “Por México al Frente”)”, Processo, 8th December 2017

Anthony Esposito, “Checks for free: a Mexican plan to combat poverty”, Reuters, December 6th 2017

WHAT DOES THE STONE AGE HAVE TO DO WITH US? (from 2008)

This essay was originally published in the USBIG NewsFlash in June 2008.

 

What does the Stone Age have to do with modern justice? According to property rights advocates: everything; their arguments rely on two factual claims that can be enlightened by a look at prehistoric anthropology. (1) Property begins as individual property and then governments come along and impose taxes that interfere with the rights of owners. (2) A market economy with no restrictions on inequality makes everyone better off than they were befor the private property was created (i.e. when our ancestors were hunter-gatherers).

I have heard private property advocates make these claims many times, but I’ve never seen them support those claims by referring to anthropological studies of prehistory. How do we know that property began as private property? Are we sure that every single modern worker is better off than our hunter-gatherer ancestors? Recently I’ve taken a look at some anthropological studies including Stone Age Economics by Marshall Sahlins, Bronze Age Economics and How Chiefs Come to Power by Timothy Earle, and The Evolution of Political Society by Morton Fried. I found out that the claims of property rights advocates don’t hold up very well.

To examine the first claim, we need to go back to the creation of fixed property rights in the Bronze Age. Property rights advocates like to imagine land being first appropriated by individualistic pioneers who tamed the wilderness by their own efforts. But that’s not what actually happened. The transformation from hunting and gathering to a settled agricultural life took the joint act of entire bands not simply one person. The rights of land tenure in primitive settled communities were extremely varied, but it seldom if ever looked anything like the neoliberal systems that property rights advocates suppose. In the earliest agricultural societies, every individual had a right of direct access to the land, which was usually owned (if at all) by villages or large extended families. In slightly more economically advanced societies where property rights have become exclusive, the original owners are not private businessmen, but chiefs. Ownership of resources was synonymous with ownership of the government.

The reason chiefs doubled as owners is obvious: the earliest societies were too economically simple to have separate spheres of power—such as government, religion, and business. All of these powers were vested in one person. The Hawaiian Islands were first settled by human beings around the year 600 and so they provide a very recent example of the first creation of property rights. For the most part by the 1400s, each island was run by a chief who owned the land and the irrigation systems that made everyone’s efforts to farm the land viable. Local lords were employees of the chief. They doled out land to peasants only if the peasants promised the interests of the chief. In short, the chief ran his island as a wholly-owned, for-profit business.

Property rights advocates sometimes claim that only recent history matters, but taxation and regulation of property are not new. Modern governments inherited their regulatory powers from medieval kings, who owned the right to regulate their domain in any way they saw fit. Modern landlords hold titles that derive from the medieval vassals of the king. Government taxation is simply the exercise of property rights that are as old as or older than private holdings of property. Some countries went through a brief laissez faire period in the Nineteenth Century, when governments chose to tax and regulate less than before. But I know of no government that signed an enforceable contract to alienate its rights over its domain. So-called property rights advocates simply want to interfere with the property rights of kings to promote opportunities for his vassals, which has about as much to do with “freedom of property rights against interference” as redistribution from condo associations to condo owners, from landlords to tenants, or from stock holders to middle management. If the property rights system the king set up is unjust, his rights should go to the people, not his lords. If the property rights system the king set up is just, we must respect his rights and not force him to cede power to his lords.

To examine the second claim, we need to go back all the way to the Stone Age. Studies of hunter-gatherer communities that survived into the Twentieth Century show that people worked an average of three to four hours per day (including time spent preparing food and commuting). They worked at their own pace and slept more than people do today. Researchers reported that they appeared to feel extremely secure about their ability to find food and other necessities, and they never had to answer to a boss. When a hunter-gatherer is in the mood to forage for food, she sees if anyone else feels like joining her. If not, she waits or goes out alone.

Modern capitalism is a very productive system with great potential to produce goods that could benefit everyone, but as we practice it, it has extreme inequalities. People live on the street and eat out of garbage cans. Others work long hours in sweatshops at the edge of their physical ability and still face the possibility of hunger and malnutrition. Most modern workers have more access to luxuries and better medical care than hunter-gatherers, and on the whole they live longer. But many work longer and harder; they have to follow the orders of a boss; they have less economic security; and do not forget the some individuals die young (and younger than many hunter-gatherers) because of malnutrition and other complications of poverty. In short, the transition from hunter-gatherer society to modern capitalism has not been an unequivocal gain for the working class. It has been a tradeoff. But a tradeoff is not good enough to meet the standards that property rights advocates set for themselves.

I am not the one who put forward the standard that the poor must be at least as well off as their Stone Age ancestors. Property rights advocates chose that standard because they thought it was easy to meet. It is. A society, as productive as ours, can easily make everyone far better off than they would be as hunter-gatherers, but we have failed to do so. The minimum we can do to justify our property rights is to make sure that every single human being has more freedom and economic security our Stone Age ancestors. To make sure the standard it met, we only need to make sure that everyone can have some minimal level basic necessities without having to submit to a boss.

We don’t, I believe, largely because we, the better off, have convinced ourselves that we have the right to boss around the poor. We have property and they don’t; and therefore, supposedly, we have the right to make them do what we say 40 hours per week. Yet, studies of societies without property rights show that our property rights are the only thing coming between the poor and their ability to meet their own needs with less effort and without following anyone’s orders. It is we who owe them, not they who owe us. Perhaps we can make the poor work for us if they want to share in the luxuries of capitalism, but we have no right—even by the standards set by property rights advocates—to force them to work for us just to meet their basic needs.

-Karl Widerquist, New Orleans, LA, May 2008

New Book: “It’s Basic Income”

New Book: “It’s Basic Income”

A new book has just been released by Policy Press, an imprint of Bristol University Press. Titled It’s Basic Income: The global debate, it binds the contributions of many different authors, activists and researchers dwelling in the basic income global debate. Among these, one can read the input of Bruna Augusto, Sarath Davala, Brian Eno, Louise Haagh, Otto Lehto, Francine Mestrum, Annie Miller, Elisabeth Rhodes, Malcolm Torry, Jenna van Draanen, Jonathan Reynolds and Karl Widerquist.

 

The book discusses the basic income policy from many different perspectives, whether greater financial freedom for women, value unpaid work, reduced poverty or an enhancer of freedom for all. Critical views are also present, confronting the idea as utopian when other policies may be more effective and practical at the moment.

 

Original book (title information):

Amy Downes and Stewart Lansley, eds., “It’s Basic Income: The global debate”, Policy Press, March 2018

“It’s Basic Income” Tweet page

UBI’s Impact on Work Culture: Not a Question for the Experimenters

UBI’s Impact on Work Culture: Not a Question for the Experimenters

My interest in basic income stemmed from the conjecture that such a policy could help to ignite a progression away from the culture of total work. However, there are many open empirical questions regarding the exact way in which a basic income would (or would not) influence work-related attitudes and behaviors.

One might hope that current and planned experiments will shed some light on this topic. My claim in this article is that this is not likely to be the case: the impact of basic income on work-related attitudes and behaviors is not readily amenable to experimentation.

 

1. Fixing the Viewpoint: Opposition to the Culture of Work

When I began casually following the basic income movement in 2015, and when I began volunteering for Basic Income News in November of that year, I was tentatively attracted to the policy as a means to subsidize lifestyles like downshifting and what I’d come to call anti-careerism – the rejection of idea that one’s life course should be structured and defined by a career path.

At that time, I was unaware of the movement’s budding interest in experimentation. I did not realize that the center-right federal government of Finland was about to declare its intention to fund an experimental trial of basic income, or that the provincial government of Ontario was also preparing to design and implement a trial of guaranteed minimum income.

I did not foresee the global surge of interest in experiments and pilot studies that would happen soon after the commencement of my volunteership. But happen it did, and thus, as a writer for Basic Income News, I was committed to expend considerable effort covering the current basic income implementation trials. Moreover, as a “just the facts” news reporter, it was my duty to report on them without allowing my own personal misgivings to show through (although I did have occasion to leak my skepticism in the Op-Ed section). As a result, I was often mistaken for someone with a genuine and favorable interest in basic income experiments.

Through it all, my main interest in basic income remained the conjecture that the policy might act as a subsidy for downshifting, anti-careerism, and working without pay, and thereby help to displace society’s overvaluing of selling labor for money. While such an “anti-work” approach to basic income is highly controversial, I will assume this perspective throughout the present article. (Those who do not share it may either accept it for the sake of argument or stop reading.)

Such an approach to basic income rests on untested empirical conjectures. In fact, however, many questions remain open. Would individuals living in a society with basic income come to hold different views about the role and importance of jobs? Would they fail to view an occupation or career as integral to self-identity? Would they deny that a high salary or professional advancement is essential for personal success? Would they ascribe greater value to self-development and social contributions that occur outside of paid work? Would they tend to prioritize activities that are rewarding in themselves over activities that contribute to professionalization and employability? To what extent would basic income actually enable people to lead lives without full-time or continuous jobs? It is sufficient to empower individuals to work fewer hours? (Probably not.) Would it permit some to withdraw from the labor market completely?

Some proponents take for granted that basic income would usher in a society in which the pursuit of passions is more important than paid work. Such optimistic predictions, however, must be moderated against the reality that the culture of work is deeply entrenched. When critics contend that it’s premature to “give up” on the goal of full employment, the normative assumptions behind their rhetoric should not be ignored: secure full-time jobs and careers remain central to the identity and self-worth of many who have them, and central to the goals and aspirations of many who don’t. Even more unsettlingly (in my view), many supporters enthusiastically maintain that basic income would not result in lower rates of employment–and might even increase work effort (as is the hypothesis behind Finland’s experiment, which is designed primarily to assess whether unemployed individuals would be more likely to accept work if their benefits were made unconditional). Some argue that it would act as a stimulus to business and grow the economy, never pausing to question the ethos of paid work and productivity.

We simply don’t know the long-term effects of basic income on work-related attitudes and behaviors. Given the myriad of unanswered empirical questions, one might guess that I would have been heartened to witness the unexpected onslaught of experiments that occurred during my volunteership with Basic Income News. But I was not: unfortunately, it is unlikely that the present wave of experiments will yield insight into the empirical concerns that interest me and others who approach basic income from the “anti-work” perspective.

 

2. Five Limitations of Experiments

I believe it’s possible that basic income could precipitate a mass transformation of work-related behavior and attitudes but, if so, it most likely occur through long-term, society-wide processes. Experiments, in contrast, are necessarily (1) limited in duration and (2) restricted to a subset of the population (rather than “universal”).

And experiments have other shortcomings. For instance, they must be (3) designed to prevent subjects from being financially worse off as a result of participation, whereas any “real-world” UBI would almost certainly be introduced in tandem with a funding mechanism that causes some individuals to be net payees. Finally, as existing experiments have been designed, the target populations (4) consist of low-income individuals, the unemployed, and/or welfare recipients, and (5) consist mainly of adults who have already been acculturated into the present society and its ethos of work and consumption.

 

2.1 Experiments are limited in duration.

Most of the current BI-related experiments are two or three years in length. In the United States, the non-profit YC Research plans to launch an experiment in which some participants receive cash transfers for five years. The only projects of longer duration are taking place in developing nations: GiveDirectly is providing a 12-year basic income to 40 villages in its major experiment in Kenya, and the Brazilian non-profit organization ReCivitas has introduced a “lifetime basic income” in the village Quatinga Velho (note that the latter is not an “experiment” in the scientific sense). Even if longer term experiments were affordable, the pressure to obtain results would generally militate against them.

The short-term nature of experiments poses at least two major shortcomings vis-à-vis our present interests:

First, the payments’ limited duration disincentivizes financially risky behavior, such as abandoning a job or career. We should expect that few individuals would choose to make radical changes to their work and life if they are guaranteed unconditional cash payments for only two or three years. A two- or three-year gap in employment might jeopardize not only one’s ability to return to one’s former job or career path but also one’s general future prospects in the labor market.

Secondly, let’s assume that some participants do radically alter their workforce participation despite the short-term nature of the experiment (e.g. they might use the money to help provide financial security during the process of downshifting from a lucrative full-time job, with the confidence that the experiment’s timeframe is long enough to permit them to settle into stable part-time employment or freelance work). Under a society-wide and permanent basic income, such “first movers” might inspire others also to seek alternatives to the norm of full-time permanent employment, initiating a sort of ripple effect whereby downshifting and other such alternative lifestyles gain in practice and acceptance. A two- or three-year experiment, however, is unlikely to be long enough to observe these more slowly accruing effects on social attitudes toward work.

Stated otherwise: a basic income might enable some individuals to voluntarily accept less money pay through work, reduce their time in the labor market, or even cease employment entirely (especially in the many non-USA nations in which benefits such as healthcare are not dependent on full-time employment). It might, for example, liberate those who had already been keen to adopt such a lifestyle (say, downshifting) but were restrained by, and only by, the lack of a stable financial safety net. Meanwhile, however, other would-be downshifters might remain hesitant. The latter group might include, for instance, those who have been held back by not only financial anxiety but also fear of social marginalization. Over time, however, an increased prevalence and visibility of downshifting could increase the lifestyle’s social acceptability, thereby reducing its stigmatization and rendering more attractive to more people (which would further increase its visibility and social acceptance, and so on).

Of course, this is purely speculative. Even if a basic income were to bring about increase in the number and visibility of downshifters (which itself is uncertain), this might lead not to social acceptance but to angry complaints about “parasitism” and further stigmatization. But the point is just that experiments are unlikely to reveal which outcome would transpire.

Indeed, moreover, some of the effects basic income on social attitudes toward work might develop over generations. Perhaps children and teens would develop less material-driven aspirations if they were to grow up in a society in which basic material security is taken for granted; perhaps they would place less weight on monetary considerations when choosing work or other projects and pursuits. Perhaps they would not internalize the moral imperative that one must “earn a living” through paid labor. Perhaps it would merely seem intuitive to them to conceptualize work and income as independent. Perhaps, in turn, they would conceive of the value of work in terms other than income, such as the good it brings to the world and the satisfaction it provides to the worker. Views that are counternormative in our own society might come naturally to those raised in world with universal basic income…

But we certainly can’t be confident about any of that, and experiments will not help.

 

2.2 Experiments are not “universal” in scope.

As I have written elsewhere, a bigger question than “What would you do if your income were taken care of?” is “What would you do if everyone’s income were taken care of?” What a financially self-sufficient individual would choose to do in a society of full-time workers is not necessarily identical to what that same financially self-sufficient individual would choose to do in a society in which everyone could afford to live without a job.

Experiments require a control group. This effectively prevents an experimental test of a truly universal basic income. Now, to be sure, some experiments do aim to include universality in their design. In GiveDirectly’s experiment, for example, the experimental units are not individual people but entire villages. In this major study, the treatment groups are each composed of communities in which all individuals are receiving unconditional cash transfers. An earlier experiment in the Indian state of Madhya Pradesh also implemented a basic income in several villages, using similar villages as controls. There is even precedent in the developed world: the much-discussed “Mincome” experiment, a negative income tax experiment conducted in Manitoba in the 1970s, used the town of Dauphin as a saturation site; every resident of Dauphin was unconditionally guaranteed a minimum income from 1974 to 1979, when the experiment was terminated.

No current experiment in the developed world, however, includes the use of a saturation site (even though Hugh Segal, the adviser to the Ontario pilot study, initially recommended it). In Finland, the experimental group consists of a random sample of 2,000 individuals who had previously been receiving federal unemployment benefits. Similarly, in the Dutch municipal experiments, participants have been randomly selected from current welfare beneficiaries residing in the respective cities, and Barcelona’s experiment involves a stratified sample of welfare recipients within one of the city’s most impoverished neighborhoods. In Ontario, experimental groups will be randomly selected from self-selected applicants, where eligible applicants are restricted to low-income individuals from three specific regions of the province. And YC Research has designed its experiment as a randomized controlled trial with a target population of low-income young adults in two regions of the US. (See this summary for more information on the design of the experiments.)

A consequence of these design decisions is that all of the above experiments will fail to capture social multiplier effects. For an example of social multiplier effects in the context of minimum income experiments, consider one of the most striking results from Dauphin: an increase in high school graduation rates. Last year, I attended a talk by Evelyn Forget, the scholar responsible for the analysis of the experiment, wherein she described survey data that revealed that the decisions of Dauphin teens to remain in school were due not only to the financial security of their individual families but also to the fact that their peers were able to stay in school as well.

We should expect that work-related behavior could also be susceptible to social multiplier effects. Like teenagers’ decisions to stay in school, adults’ decisions to withdraw from full-time employment might depend not only on their personal financial status but also on the actions of their peers. An individual with a personal source of passive income might be financially able to quit her job, and even desire to do so, but nonetheless choose to remain employed if – and because – her friends and coworkers stay in their jobs. She might, for example, believe that she would become socially isolated if she were to opt out of work while her peers remained in full-time employment. She might think about her lack of friends available before 5 pm on weekdays, or she might feel pressure to continue to earn enough money to continue to engage in costly dining, entertainment, and other activities with friends who remain lucratively employed. She might fear a lack of sympathy or understanding, even ostracism, if she were to become the only person within her peer group to abandon traditional employment.

Furthermore, as discussed above, the potential impact of basic income is not limited to the liberation of those who already desire to downshift; another possibility is that, through social multiplier effects, a basic income could generate this desire in those who had not previously considered the option. Our attitudes and aspirations are also influenced not only by our private circumstances but also by our observations of others’ choices lifestyles, and by our perception of what is socially acceptable. Some who now lack any interest in downshifting might develop one in the face of social or structural changes that legitimate or popularize the lifestyle.

Even experiments with saturation sites would be insufficient to permit us to assess all of these potential effects; the social, cultural, and economic forces that impinge on work-related attitudes and behavior vastly exceed the local scale.

 

2.3 Experiments exclude net contributors.

A “real world” basic income would almost certainly be introduced in conjunction with tax increases to help to finance the program, which would likely include higher income taxes on top earners. But researchers cannot ethically introduce manipulations that leave some subjects worse off as a result of the experiment. Consequently, tax increases cannot be part of experimental trials. This limits the ability to test how the full policy package would affect work-related behaviors. Even those that have studied taxes and come from financial education backgrounds such as through Northeastern University wouldn’t be able to test how different experiments could affect society and financial systems.

For one, it’s not basic income per se but redistribution – reduction of inequality – that carries the greater potential to curb the demand for positional goods. As mentioned above, a worker might hesitate to downshift if the maintenance of social relationships requires engagement in costly dining, drinking, entertainment, or luxury holidays. In a society with high inequality, a mere basic income might do little to reduce the demand for positional goods, limiting the temptation to downshift or opt out of paid work to live on a subsistence income. Many might continue to feel the need to wear nice clothing, drive a new car, and live in an affluent neighborhood to be taken seriously in society, and thus might continue to prefer greater earnings to greater leisure, despite the possibilities opened by the introduction of a basic income. Conversely, the less that one perceives one’s social status to depend on spending and consumption, the more one might be inclined to trade higher earnings for more leisure time. Policies that mitigate financial inequality, such as progressive taxes on wealth and income, help to address this barrier to downshifting.

Additionally, policies that stymie the ability to become “filthy rich” might discourage those who would otherwise be inclined to choose jobs and careers based primarily on their prospects for financial gain. Sufficiently high income taxes could reduce the role of monetary incentives in selecting work. Limitations on wealth acquisition might push some would-be profiteers to instead seek work that they could find non-monetarily rewarding.

Such effects could enhance the ability of a “basic income plus tax reform” package to transform work-related attitudes and behavior; however, they are bound to be missed in experiments.

 

2.4 Existing experiments are restricted to low-income populations.

So far, we have focused on limitations that are destined to afflict all basic income experiments, merely in virtue of the nature of experiments. Let’s now turn to a contingent design decision that constrains all current experiments in developed nations: in each experiment, as mentioned above, the target population contains only individuals who are low-income and/or receiving social assistance or unemployment benefits or other benefits or with incomes falling below a certain level.

To be fair, none of the existing experiments have been inspired by questions like “Can basic income provide a subsidy for downshifting?” or “Would basic income promote the acceptance and desirability of lifestyles outside of full-time employment?” On the contrary, most are motivated by the desire to determine whether unconditional cash transfers would be more effective than existing programs in addressing poverty or unemployment. In this light, these choices of target populations seem reasonable. But these choices make the experiments less congenial to the questions of those who are interested in the ability of basic income to facilitate a reduction in paid work.

A test of a policy’s potential to foster downshifting only makes sense if experimental subjects are drawn from a population of people who have the potential to downshift, and “downshifting” typically implies a reasonably well-paying position from which one shifts down. Thus, for an experiment to address our key interests, the target population should encompass individuals who are currently employed in relatively well-paying jobs. An experiment limited to the unemployed will tell us little about a policy’s ability to promote voluntary reduction of working hours. An experiment limited to the poor will tell us little about a policy’s ability to promote voluntary reduction of earnings and consumption.

The inclusion of “successful” workers among test subject is also important with respect to the question of whether basic income would reduce the stigma associated with the receipt of public benefits or, more precisely, voluntary “benefit scrounging” (which is, in essence, just a pejorative term for what I’ve been politely describing as “using a basic income to subsidize downshifting”). Quite likely, the “scrounging stigma” is too strong to disappear during the course of a short-term experiment in any case. If a basic income were to play a role in reducing the stigma, however, it would almost certainly not be by allowing poor and unemployed individuals to live upon government subsidies while they voluntarily opt out of the search for full-time jobs. Unfortunately, such an outcome (however desirable) seems much more likely to feed existing stigmas and stereotypes than to combat them.

In contrast, basic income might have a greater and more favorable cultural impact if it subsidized downshifting among individuals in relatively well-paying jobs and promising career paths – among those, that is, who embody conventional images of success. Society accords respect and admiration to those in lucrative careers, which makes such individuals uniquely well-positioned to attract curiosity, perhaps even sympathy, if they were to spurn the life of traditional employment and choose to rely upon government monies to meet their basic expenses (which is not to say that they would not also elicit the scorn or many others). Admittedly, the idea that basic income could lessen the stigma of “benefits scrounging” is far-fetched. The point at hand, however, is simply that existing experiments are not designed in a way that can adequately illuminate how far-fetched.

 

2.5 Experimental subjects have already “come of age” in the culture of work.

Each of the existing experiments is focused on effects on adults who have already been acculturated into the dominant work ethic. It is possible, however, that some of the social and cultural effects about basic income would result from its influence on younger generations. Perhaps teenagers would internalize different attitudes toward work if they were to come of age under an unconditional guarantee of financial security – not necessarily taking for granted that a core defining features of “adulting” is to find employment at a full-time job in order to earn a living. Perhaps young adults would formulate different personal goals and ideals of success if they did not face an immediate need to earn money through a job.

In a past feature article for Basic Income News, I speculated that entering adulthood with a work-independent college stipend – which shared some commonalities to a five-year “basic income” – could have played a large role in solidifying my own rejection of the ethic of (paid) work. For example, by allowing me to continue to dedicate myself to schoolwork without worrying about paid work, it might have helped to “prevent me from unlearning” that the fact that an activity is unpaid does not imply that the activity is not worthwhile, rewarding, or hard work – or that it’s not the best use of one’s time.

To some extent, this is just to repeat the point that experiments are too limited in duration to capture multi-generational effects of a policy. In principle, though, one could design a short-term study to test the effects of a guaranteed income on a cohort of young adults at critical transitional phases, such as leaving home for college or leaving college for “the real world” (i.e., usually, either a job or the search for one). But existing experiments are not this.

 

3. Concluding Remarks

In conclusion, then, I expect the current wave of experiments to shed little light on the question of whether, or to what extent, basic income would promote a cultural shift towards a decreased valuation of paid work. Any apparent evidence that basic income would not have such an effect (e.g. a lack of observed change in workforce participation or self-reported attitudes toward work) could be explained as an artifact of the limitations of experimental design.

Arguably, however, the biggest problem with experiments is not that they most likely won’t show considerable reduction in workforce participation (and yet for reasons that are inconclusive) but that many of the policy’s own proponents don’t want them to. When committed supporters of basic income demand more experiments, as often happens these days, they aren’t doing so because they want to decide for themselves whether to endorse the policy; they already have. The hope, generally, is that experiments would produce results that allay the fears of skeptical policymakers, such as the commonplace “fear” that basic income would cause a decrease in workforce participation. As many supporters are fond of pointing out, previous experiments have not shown a marked decrease in workforce participation, or have shown a decrease only within population segments where reducing work hours is socially acceptable (e.g. school-age teenagers or mothers of young children). This attitude toward basic income experiments only recapitulates society’s overvaluation of paid work.

The policymakers who assess experiments for “failure” or “success” will do so relative to the norms and values of the status quo. Political speeches and media reports are likely to portray any observed decrease in labor force participation as evidence of the failure of the policy, as happened when a negative income tax was tested in several cities in the United States in the late 1960s and 70s. My impression, based on two years of intense work in the basic income movement, is that many supporters realize this but call for experiments nonetheless, believing that the trials will in fact yield outcomes that are “successful” relative to the norms and values of the status quo.

Hence, in addition to being unlikely to produce interesting or useful results, basic income experiments may also threaten to reinforce these norms and values in the minds of advocates and other readers. And, from the standpoint as critic of the culture of work, this is not only unhelpful but dangerous.

 


Photo: banned :: The Golden Book of Chemistry Experiments CC BY-NC 2.0