‘The Tyranny of Merit’ by Michael J. Sandel

Book Review by Dr. Jan Stroeken

Michael j. Sandel has written a book about the deep causes of the inequality that is a key driving force behind the populist backlash of recent years. His analysis serves as a basis for justification of the introduction of a universal basic income. For the complete review, see: https://basisinkomen.nl/wp-content/uploads/Book-Review-Michael-Sandel-Jan-Stroeken.pdf

And in Dutch:  https://basisinkomen.nl/boekbespreking-de-tirannie-van-verdienste-michael-j-sandel/

Here you will find a short summary, being the last part of the review:

Public Debate and Basic Income
Sandel’s analysis is razor sharp. What he brings to the fore more than anything is how present-day populism is only indirectly fuelled by the unequal distribution of income and essentially dominated by an ethical and cultural component. A growing section of the population feels underrated. This has everything to do with the tyranny of merit driven by the meritocratic ethos that, over the past decades, has led to meritocratic hubris. This hubris is reflected in the winners’ tendency to let their success go to their heads, forgetting about all the luck and good fortune that helped them along the way. Those who make it to the top believe with self-satisfied conviction that they deserve their fate and that those who end up at the bottom do too. This leaves little room for the kind of solidarity that could arise if we were to realise just how haphazardly talent is distributed and how randomly fate can either be kind or cruel. Merit-based pay is, according to Sandel, thus a form of tyranny – an oppressive regime.

And so, Sandel launches into a plea for a sweeping public debate on how to move from today’s individualisation to a greater sense of solidarity and more self-determination for all. What is essential in this respect is his conclusion that for many to be successful in life, all forms of education and work would have to be taken equally seriously. Without explicitly mentioning it, he points to the core of what the implementation of a universal basic income is all about: more equal recognition of current paid and unpaid work, as well as a stimulus to go to school. In an interview with Dutch newspaper De Volkskrant (20 September 2020), Sandel describes this when he speaks about ‘that which contributes to the community’ as a key alternative criterion to purely performance/merit-based recognition:

 ‘It is, in any case, a more democratic method that allows us to recognise contributions that are currently ignored or undervalued. I mean contributions such as the unpaid work that is done within households, for example, such as raising children and caring for relatives. Or all the work that, due to the COVID-19 crisis, has turned out to be much more important than society gave it credit for: nursing care, cleaning work, waste collection, and logistics. Setting aside the matter of usefulness, the fact that there is equal dignity in every human being should also reverberate in the dignity of everyone’s work.’

Regrettably, Sandel hardly gets around to formulating specific solutions in his book. Nevertheless, his most concrete suggestion with respect to the revaluation of work is to improve wages at the bottom of the labour market, such as through wage supplementation schemes and by shifting the tax burden away from labour and onto consumption, speculation, and capital. While the latter suggestion is an excellent one, it would be even better if it were substantiated further to ensure that those who do unpaid work also benefit. 

This further substantiation also takes us to a second key argument for downgrading the role of merit-based pay, which is that the link between current wages on the one hand and individual work performance on the other is loosening. Pay is increasingly less personal. Our current level of prosperity, as initially reflected in people’s primary income, is the result of many years of productivity growth to which many generations have contributed. Our high income levels can, therefore, not be put down only to the labour performed and capital invested in companies at this point in time. In this context, distributing primary income only to those directly involved in the production process seems to be increasingly less of a given and implementing a universal basic income for all is an obvious alternative, i.e. regardless of someone’s position in the productivity-driven labour process. The state collecting taxes directly at the source, i.e. at the level of companies’ production, would then be the obvious choice. This would also automatically shift the tax burden to sources other than labour, which is merely one production factor.

The figures provided in the book demonstrate that there is growing support among the general public for the idea of universal basic income. Even so, there is a hard core of people who are against it and keep using counter-arguments that they cannot back up with facts, such as a universal basic income having adverse effects on the labour market and being too costly. Their rejection might very well have little to do with those counter-arguments and rather be driven by a strong meritocratic bias. There is a clear relation between implementation of universal basic income and the public debate that Sandel wants to initiate.

Finally, the results of the most recent parliamentary elections in the Netherlands can be explained based on Sandel’s The Tyranny of Merit. On the one hand, right-wing populist parties are on the rise. One in five Dutch people voted for populist right-wing parties that have become increasingly extreme since the days of Pim Fortuyn’s first populist revolt in the early 2000s: full of mistrust and bitterness directed at everything and everyone and not shy about avowing discrimination. Even in the knowledge that these parties will not be part of a coalition government and play no role in the actual governance of the country, people still vote for them. And people vote for these parties even though their election programmes are, at least in a socioeconomic sense, more likely to be prejudiced than to favour them. On the other hand, the two winners of the elections are supreme exponents of meritocracy, namely the People’s Party for Freedom and Democracy (VVD, the party for the successful) and Democrats 66 (D66, the party for the highly educated). What we need to do over the coming years, therefore, is to assemble a left-wing populist programme that addresses three pressing issues:

  • How to achieve a sustainable world as soon as possible;
       
  • How to reach a post-capitalist state by shifting the balance of power;
       
  • How to accomplish lasting labour market change in line with the foregoing through a national debate as proposed by Sandel.

Some possible solutions include a large-scale shift from taxation of labour to direct taxation of companies’ production as well as implementation of universal basic income.

The Tyranny of Merit: What’s Become of the Common Good?‘ is available from Penguin Random House, published September 2020

‘Forward to a better world!’ International Basic Income Week 2021 starts organizing

by Robin Ketelaars

History
Matthias Dilthey called for a day of basic income in 2006, which unfortunately received little support at the time.*

The first week of the basic income was held in 2008 and was designed as a sub-project of the EU-funded “Basic Income on the way to Europe.” This was initiated by Günter Sölken, from an idea the Basic Income Network Germany (Netzwerk Grundeinkommen) had proposed. It happened with the support of Basic Income Network and Social Cohesion Austria, BIEN Switzerland, Attac branches in Germany, Austria and Switzerland, along with the help of many independent basic income initiatives in Germany, Austria and Switzerland.

In 2009, a significant expansion took place. A call started from various initiatives, and finally 247 organizations and over 2,800 individuals participated. In Germany a website was developed to showcase the activity and creativity, with countless ideas, suggestions, and planned actions, under the editorial supervision of Martina Steinheuer. 

The 4th International Basic Income Week was held 19 to 25 September 2011 with a focus on “Basic Income in Europe“. In Germany and Austria, there were about 100 events and activities: discussions, workshops, readings, theater and film screenings, exhibitions, etc. The fifth International Basic Income Week happened 17 to 23 September 2012 with the focus on “Ways to Basic Income”.

In 2013, the year of the European Citizens’ Initiative for Unconditional Basic Income, “Basic Income a Human Right“, a further internationalization of the 6th week of basic income took place. The Netherlands organized the “Week van het Basisinkomen” but not much action was involved, we were all too busy collecting signatures for the ECI.

In 2014 a Basic Income Week website was set up in English to further internationalize the event by Robin Ketelaars. Manja Taylor handled promotion and activities.

Unconditional Basic Income Europe (UBIE) adopted the 8th International Basic Income Week in 2015 as a key item to organize every year by all countries individually. Also at the 15th Annual North American Basic Income Guarantee Congress, International Basic Income Week was adopted as a way to publicise UBI.

That year, 19 countries participated with live events: Belgium, China, Danmark, Germany, France, United Kingdom, Ireland, Canada, Malawi, Netherlands, Norway, Austria, Sweden, Swiss, Zimbabwe, Spain, South Korea, Hungary, USA. A further eight countries participated on the internet: Australia, Brasil, Bulgaria, Finland, India, Italy, Mozambique, New Zealand, Zambia, South Africa.

9th international Basic Income Week had the motto “Basic income goes worldwide”. In 2016 Basic Income Earth Network (BIEN) contributed to the week´s further globalization by starting a group on Slack for better collaboration. Jenna van Draalen from Canada and Christof Lammer from Austria were among the promoters of the IBIW along with many more UBI activists.  Themes for other yearly events can be found on basicincomweek.org.

International Basic Income Week is a self-organised participatory week. A lot can be done, from spreading the news to friends to organising your own event with films, speakers or creative action. We can help with finding presenters and promoting your event with our shared Basic Income Week website. We welcome new participants who can share time, money or ideas! Get in touch with your regional group or the international coordination team, and let us know what you decide to do! This year there was the start of the Videothon Playlist

From 2018 onwards there have been three synchronised events.
1)    Make a photo and share it on social media with the hashtag #countonbasicincome on the Wednesday
2)    Come and socialize, organize a #basicincomebeer on the Friday
3)    Since 2019 the #basicincomemarch is part of the week on the Saturday

Basic Income Marches
In April 2019, social worker and co-founder of Basic Income NYC Diane Pagen and 2020 candidate for U.S. Congress James Felton Keith came together to organize a public event in a show of force and inclusion for basic income.

2020 saw a huge growth in support for basic income in the United States. It was important to provide different ways for the community to celebrate. All sorts of events, live and online, from a film screening, panel discussions, to a Year of Basic Income Livestream event featuring commentary from Andrew Yang, Andy Stern, and over 10 Mayors from Mayors for a Guaranteed Income and more, marked the important progress made in 2020.

With COVID measures in place, city organizers got creative. From art installations, to bike and car parades, to street corner protests, Income Movement in the US built tools to make it easy for organizers to plan amazing, highly successful events while allowing for safe social distancing for community members. Many people who did not go on the streets posted a photo with the hashtag #talkonyourwalk and held Zoom sessions with shoes.

This year’s motto for International Basic Income Week is ‘Forward to a Better World!’

You can follow #basicincomeweek on the web
* Basic Income Week website
* Twitter: @basicincomeweek (for sharing)
* Facebook: basicincomeweek (also for adding events)
* Insta: @basicincomeweek
*The Basic Income March website (organizers can add your march to the calendar)

Future plans? Who knows? We hope that with BIEN’s support we can involve more countries in India, Africa, Asia and Latin America this year.

How can people contribute to or participate in IBIW this year?
Organize events and spread the B-word!
Social media activists wanted for @insta and other media outlets
There is a Slack group where activities are discussed which you can join: the Basic Income Outreach Group. Please let us know if you want an invite via the contact form.
We’re always on the lookout for more ideas!

*) Basic Income Day
In 2014 a website promoting Basic Income Day was started by Robin Ketelaars.
“If everyone is his own king, nobody has to be the king of the other.” This sentence by Michael Sennhauser (Swiss Radio DRS) in the review of the film Kulturimpuls Grundeinkommen by Daniel Häni & Enno Schmidt and the film scene at Basel SBB train station inspired the crowning of the first 500 heads 1 May 2009 on the market square in Lörrach. Since then, we want to unite with everyone who burns for an unconditional basic income to trigger a wave of change.”
The action was followed up in 2014 by Sylvia Mair and Oliver Der as a Basic Income Day on the 1st of May. This was supported by Scott Santens, a Basic Income activist from the United States, and other activists in Europe and the US.
The website is in use for more “basic income days”.
Human Rights Day is celebrated annually across the world on 10 December. In 2013 we participated by showing the world through our profile pic that an Unconditional Basic Income is a human right. The action this year will take place 4 to10 December.
International Women’s Day on 8 March could also become  a “Basic Income Day”.

‘Could a basic income support a circular economy?’ summary of the discussion on Basic Income Network Scotland

With the increase in  research on the circular economy system, the basic income and circular economy relationship has also started to be considered. For example, this relationship was examined in the article ‘‘How could a Basic Income support a Circular Economy?’’ published on the Basic Income Network Scotland website on 23 July 2019. In fact, this article is based on the transcript of an interview between Timothea Armor, Basic Income Network Scotland Editor, and Teja Hudson, a zero waste consultant and founder of Zero.

  The current system of capitalism, free markets, and endless growth, according to Hudson, disappoints us socially. She points out that there are many people who want to make the world a better place, but this disappointment forces them to struggle just to survive. Therefore, she claims that we have lost many bright and creative minds due to preventable social inequalities such as poverty, hunger, disease, gender inequality, persecution, violence and lack of education. Finally, she suggests we need social change, and  these people represent a great untapped potential for that social change.

   Adding to Hudson’s argument, it is very difficult to be creative when you are stressed, under pressure or not inspired, and especially when you are worried about money. As a result of this, there are a lot of artists and creative people struggling to practice their art and instead  interrupted by the need to earn a living. Hudson summarizes the potential contribution of basic income to this problem with the following statement: “This is where Basic Income would be a revelation.”  She claims that by implementing a Basic Income, highly experienced creative people, free thinkers and problem solvers will be ready to help solve the problems of 10 billion people on a small planet instead of getting stuck in a dead end.

  According to Hudson, circular economy is a way of looking at resources on our planet and understanding that everything is part of a circular system rather than a line. She believes the aim is to keep resources circulating in this cycle for as long as possible, minimizing the use of unused raw material and maximising productivity in the production process. 

  As for the potential relationship between basic income and the circular economy, Hudson points out that environmental and social concerns are very closely linked and that the goals and values of both systems are the same; “for humanity and the planet to survive and flourish together, so what helps the environmental movement to accomplish that will also help the social movement to accomplish that, and vice versa.” She argues that these two systems acting together could be more effective and bring sources and audiences together.

To read the article : https://cbin.scot/2019/07/23/basic-income-and-the-circular-economy/ 


A translation into Chinese can be found here

National Assembly in France decides to explore ‘Socle Citoyen’

Editor’s note: The use of the term ‘basic income’ or ‘universal income’ here does not correspond to BIEN’s definition of basic income, since the payments each month will fluctuate with income. ‘Socle citoyen’ corresponds more closely to a Negative Income Tax, adjusted on a monthly basis.

Interview with Marc de Basquiat, originally appeared on Atlantico.fr

On November 26 2020, the National Assembly voted on the resolution tabled by the group Agir Ensemble launching a public debate on the creation of a universal income called “Socle citoyen.” Why do you welcome this vote?

Marc de Basquiat: This vote is historic for three reasons. First of all, it was very broad, bringing together the votes of deputies belonging to five political groups close to the centre of the political spectrum: LREM, Agir Ensemble, MoDem, Libertés et Territoires, Socialists and related parties. Credit for this result goes to Valérie Petit, a northern representative, who launched and led an informal working group on the Socle citoyen project based on the platform we published in the Observateur on May 4 with the support of 80 co-signatories, including 50 parliamentarians. In-depth work was carried out, with a series of remote (because of Covid) meetings. The 48 deputies who tabled the resolution voted on November 26th really know the stakes and the key principles of the technical solution that we propose to study.

The second reason to applaud is the strong support of the La République En Marche deputies. Seventy of them voted in favour of the Agir Ensemble group’s resolution. At a time when many people have doubts about representative democracy, we can salute here the joint search for consensual solutions for our country by representatives from diverse groups, including the governing party. Let us recall that at its creation in 1988 the Revenu Minimum d’Insertion in 1988 received the deputies almost unanimous support. Yes, a reform as ambitious as the one proposed by this resolution aims to achieve consensus from all parties of the National Assembly. This is the process that Brigitte Bourguignon, Minister Delegate for Autonomy, supported with her speech.

The third reason to celebrate this advance is the fiscal nature of the Socle citoyen proposal that it is to be studied. Let us quote from the enacted text:

“The Socle citoyen is unprecedented in that it combines tax reform and improvements in social benefits. First of all, we propose to establish the universality of income tax: every French person, from the first euro of income, is taxed proportionally. This very fact constitutes being a part of and being responsible to the national community. It links one to the collective destiny and at the same time ensures assistance and solidarity.

With the mechanism of the Socle citoyen, the universal income becomes an individual tax credit, negative or positive. Thanks to tax withholding at the source, calculation and payment are now possible in almost real time. This is one of the great social benefits of this major tax reform: it makes it possible to calculate and automatically pay out the Socle citoyen, based on the universal tax, at the same time the reform achieves universality.

The fact that universal income is approached from a tax perspective revolutionizes the question of its economic feasibility. It is not a question of creating an nth social benefit that is painfully financed, but, first of all, of ensuring that all citizens are involved, in their own way, in the financing of public services. The same “right for all” is possible because, beforehand, we ensure the same “fiscal duty for all.”

Is this a sign that something is changing, at the parliamentary level and elsewhere, with regard to universal basic income?

Despite the trauma of the 2017 presidential campaign and the failure of Benoît Hamon’s project for a Universal Existence Income, many—of all political stripes, I can attest to that—grasped the importance of a transfer mechanism that would automatically guarantee a minimum of resources to everyone, regardless of the vagaries of life. But until recently, we hesitated to talk about it for fear of being suspected of providing a caution for the Hamonist party, Generation-S.

I believe that with the Covid-19 crisis, we all understand that the issues we are facing go far beyond political posturing and partisan arrangements. I am happy that the only Hamonist deputy in the Assembly, Régis Juanico, has lent his voice to the resolution drafted by Liberal deputy Valérie Petit. It is by working together that our elected officials will be able to re-inspire politics!

On the other hand, I am disappointed that no Les Républicains representatives dared to break with a conservative voting directive. The speech of LR deputy Stéphane Viry started well, but its conclusion is saddening:

“The group Les Républicains salutes the willingness of the National Assembly, the most essential forum for public debate, to address this major issue, since it touches on the fight against poverty, for work, and social cohesion. These are all foundations on which to build a social project, national cohesion, dynamism for our country. As part of our efforts, we must constantly, all together, open up new horizons. (…) You are right to put this debate on the table, and our group is very much in favour of a frank reflection on work, on activity for all, on social protection, on the fight against poverty. However, as it stands, as formulated, we will not follow your proposal.”

In 2016, the Senate had carried out a mission of information on basic income, in which all the political movements, from the right to the communists, took part, leading to the formulation of a consensual report that illuminated the way forward. Let us hope that the 11 deputies who voted against the resolution on November 26 will discover, moving forward, that the Socle citoyen has no other ambition than to strengthen cohesion, economic dynamism and fraternity in our country.

What are the liberal arguments to defend the proposal of a universal basic income and what form does it take in this framework?

What seems to me to be common to all liberals—whether one feels on the right or on the left for that matter—is the importance one places on individual choice. A Socle citoyen can be formulated as follows: everyone pools the same share of their income (around 30%) and benefits from the same individual transfer (around 500 euros per month). With this single rule, which is easy to implement using the mechanism of withholding tax, everyone is in the same boat and knows exactly how the income tax they pay or the assistance they receive will evolve according to the events in their lives: change of job or loss of work, marriage or divorce, etc. the impact is always easy to calculate.

Such a proposal is not really a revolution. In fact, for tax households that are subject to the 30% marginal rate, my proposal is just a reformulation of the current tax calculation, with an identical result. For 2020 income, taxpayers in this bracket pay a tax whose monthly calculation is 30% of the taxable income of the previous month, minus €498.52 per tax share (let’s say €500 for a single person and €1,000 for a couple). This would not change much.

The Socle citoyen amounts to applying the tax calculation formula for wealthy taxpayers to everyone! A single person without income who currently lives with an RSA of €497.01 plus a housing allowance would receive €500 and still receive the same housing allowance. No change in his or her case. On the other hand, all other cases of poor and low-income households would be winners, to what extent, depending on what they have today.

You have been defending universal basic income for several years, as president of the Association pour l’Instauration d’un Revenu d’Existence (AIRE) and as a Free Generation expert. Do you think that the coronavirus crisis can bring about a change in opinion?

In March, with the crisis, millions of people discovered unemployment. In restaurants, transport, household services, construction, shops… All these jobs where you work hard, where you get up early. The State has multiplied measures, first by taking over from employers to pay more than half of the wages! We can see that a hazard can bring the bravest of workers to their knees, making them dependent on the community to ensure their subsistence.

This invites everyone to question the solidity of their inclusion in society. Am I in this position only because I deserve it? Do I owe nothing to anyone? How could the country have endured a “laissez-faire” logic, where everyone was left to fend for themselves in order to make a living despite the fear of catching a virus—whose danger was not really understood at the time?

Today, everyone knows they are vulnerable. Everyone has also experienced their own docility! During the first confinement, we were happy to cheer from the windows, it gave us a recreation and a semblance of social interaction. But deep down, we really understood that we are vulnerable and that we have a vital need of others. This is why the ” Socle citoyen ” project speaks to everyone: we contribute as citizens—through taxes—to ensuring a vital base for everyone. In these circumstances, no one is spreading foolish rhetoric about handouts?

Is the Socle citoyen universel an effective response to the economic crisis that is looming with the coronavirus?

No one knows how the crisis will evolve. In the second quarter of 2020, China is the only G20 country whose GDP has grown. Germany posted -12%, France -18%, India -24%. The second wave caused us to fall back, less sharply, but global economic balances will take time to readjust. Public debt is exploding. Even if it is relatively painless in the short term, no one can predict what interest rates will be in 10 years. Our accumulated debts may weigh very heavily, preventing governments from playing their role as buffers against social shocks. At that time, we will be happy to have established a Socle citoyen, the universal distribution of part of the income among all, so that no one will be in total destitution.

We can also venture the hypothesis that our country will regain the growth necessary to adapt and face the planetary challenges. Here again, the egalitarian sharing of a portion of the fruits of growth will be a tremendous driving force for national unity, a multiplier of energies.

Translation from the original French: Pierre Madden

Reprinted with the kind permission of Atlantico.fr

More information on the Socle citoyen can be found here

Cost of Living: An interview with basic income documentarians

Cost of Living: An interview with basic income documentarians

A new film is hoping to answer the question of whether life itself should be subsidized. Directors Sean Blacknell and Wayne Walsh have produced a new documentary “The Cost of Living” which discusses the mental and physical burden placed on those with unstable incomes and whether basic income is the right remedy.

The film interviews many prominent basic income scholars, such as Guy Standing and Barb Jacobson. It is focused on the issues specifically facing the United Kingdom, where there are “3.5 million people in ‘in-work poverty.’” With the arrival of COVID-19, the film-makers argue the discussion about basic income is even more pertinent than ever. 

The filmmakers expressed that many of the current programs in the UK are failing to rise to the moment with extreme distress around the country, such as the universal credit which they called “dehumanizing.” 

“You have to prove you are deserving,” Blacknell said. 

Steve Botrill, the deputy chief executive of Urban Outreach Bolton, is interviewed in the documentary. He said that much of the current stress on the poor in the UK is due to reductions in benefits and more stringent conditions placed on social services.

As a result, Botrill said that this is a cause for the “astronomical” growth of food banks in the UK in recent years.

In the documentary, it is argued that much of a person’s wealth is dependent on luck, such as where a person is born. 

Initially, the film was going to take a broad look at social programs, but narrowed to basic income as they moved forward. In the long-run, the filmmakers noted that this discussion around basic income will continue to be important because of the changing economic and technology trends around the world. 

However, the filmmakers emphasized that after interviewing many scholars they do not believe basic income is a “panacea” on its own. By interviewing a wide range of viewpoints, they hoped to create a “more nuanced take” on basic income.

With new spikes of COVID-19 around the world, Wayne and Blacknell hope the film can reach a wider audience to facilitate this debate. It is now available on Amazon Prime for streaming.