Groups calling for basic income experiments spread across the UK

Groups calling for basic income experiments spread across the UK

Groups across the UK are calling for pilots of a radical alternative to the current welfare system.

With more people losing jobs to automation and the Devolution in the North East that’s currently happening, groups are worried that if this continues, the whole of the UK will be facing serious consequences in the future.

A Universal Basic Income (UBI) would see all citizens given a guaranteed income regardless of their eligibility for benefits or their employment status.

Finland, Kenya, India, and cities across the United States have recently piloted the revolutionary idea.

Supporters of a basic income, such as the University of London’s Professor Guy Standing, believe that it would guarantee minimum living standards and basic economic security across the UK.

The movement started in South Yorkshire with the founding of UBI Lab Sheffield in 2017. This is a grassroots group formed of researchers and activists exploring the potential impact of a basic income through calling for pilots in local areas.

In recent months, UBI Labs have launched in Liverpool, Leeds, Kirklees and the North East.

UBI Lab Liverpool was founded by Councillor Patrick Hurley, who introduced a motion supporting a UBI pilot at Liverpool City Council.

Artist Toby P Lloyd, whose work explores the liberating potential of a basic income, is leading UBI Lab Newcastle.

There are also ongoing discussions with groups interested in launching UBI Labs in Belfast, Hull, Birmingham, Derry/Londonderry, Exeter, Lancaster, Portsmouth, Manchester, Norwich, and West Sussex.

The UBI Lab network allows groups to share resources, promotional materials, advice, and experience.

In May, Shadow Chancellor John McDonnell announced that a Labour government would pilot basic income in Sheffield, Liverpool, and the Midlands.

Pilots in Canada, Namibia, and Finland have shown significant health benefits. Researchers found that a basic income reduced stresses associated with economic insecurity.

The pilot proposal produced by UBI Lab Sheffield is designed to measure the impacts on health and wellbeing as a key outcome of any basic income trial.

Members of the UBI Lab network have started conversations about basic income with council leaders, councillors and directly-elected mayors across the country.

The network wants to encourage more local authorities to lobby Westminster for a basic income pilot in their area and people interested in setting up new groups across the UK.

A recent Gallup poll found that 77% of UK adults favour the introduction of a basic income as a way to support workers who lose their jobs to automation.

In Spring 2020, the UBI Lab Network will host the second edition of UBI North in Sheffield. This will be the biggest conference on basic income in the UK.

 

Tchiyiwe Chihana of UBI Lab Sheffield said:

“Piloting a Universal Basic Income is an essential aspect of exploring potentially viable responses to the urgency of ever-expanding social and economic disparities. Consultative in approach, UBI Lab Sheffield ensures that multiple options reflecting the needs and experiences of people at micro and macro levels can be factored into a pilot while being adaptable. This also means that as many people as possible also have insight into the development of a potential UBI pilot in the city. Collectively, the raw data being developed has added to the resources of our city and has contributed to a sustainable knowledge pot for future use. The networking and the spin-off discussions that have developed out of UBI Lab Sheffield cannot be overstated.”

 

Cllr Erin Hill of UBI Lab Kirklees said:

“At a time when society seems very divided, the one thing most of us can agree on is that the current system isn’t working for anyone. Universal Basic Income – a regular payment made to everyone regardless of income or behaviour – isn’t a magic solution to all our problems, but it is a vital part of creating the better society we so clearly need. UBI doesn’t leave anyone behind. It provides basic security and opportunity for all citizens; protection for working people; a lifeline for those with caring responsibilities; better health and life chances for our children and grandchildren; support for marginalised groups, and so much more.

Right now, we have local people doing six or seven zero-hour contract jobs and still having to claim benefits; nurses and teaching assistants relying on food banks; people caring for relatives and being financially punished for it, and most people in poverty also being in work. Something has got to change. Across the world we have seen UBI transform lives and communities – I want us to be part of that transformation too.

Here in Kirklees we have a rich history of ordinary people standing up and demanding change for themselves, their families, and their communities – from women’s fight for the vote to the recent campaign to save our local hospital. I’m really proud that UBI Lab Kirklees has made a commitment to engage with local people, to make your voices central to the debate about what kind of society we want to be.”

 

Cllr Patrick Hurley of UBI Lab Liverpool said:

“The Basic Income is an idea whose time has come. Paying a wealth dividend to each citizen in order to help them make the best of their lives could be transformational for our country. People who want to take a chance on a change of career, or want to care for family members, or need a helping hand to smooth out life’s rough edges, would all benefit massively from something like this. At UBI Lab Liverpool, we think a series of demonstrations and pilots across the country could show the benefits to the wider population with limited downsides. That’s why we’re working with colleagues from across the city and across the country to promote Basic Income and see how best to implement it at a national level.”

 

Toby P Lloyd of UBI Lab Newcastle said:

“Critics of Basic Income say that it would make people lazy and they would all stop working. This argument has a very narrow view of ‘work’, defining it only as paid employment. Society relies on a huge amount of unpaid ‘work’ for it to function, most of this is done by women. Basic Income would not solve this, but it would be a first step in rewarding this unpaid labour and recognising its value. Basic Income would also be a way of investing in people, giving them more control over their lives and how they use their time, enabling them to reach their full potential. This is not possible for many people under the current system, because they are trapped in exploitative jobs which leave them with no time or energy to do anything else.”

 

Notes for editors:

 

– UBI Lab Sheffield is a collaboration between multiple organisations and individuals, seeking to explore the potential of a Universal Basic Income and the possibility of a pilot in the city. Organisations involved include Opus Independents, Sheffield Equality Group, The Centre for Welfare Reform and the University of Sheffield. https://www.ubilabsheffield.org/

– A feasibility study launched by the Scottish Government and supported by NHS Scotland is currently looking at the practicalities of a pilot in Scotland.

– Press assets and images are available at: https://www.ubilabsheffield.org/press

International: Basic Income supportive economists are awarded the 2019 Nobel Prize in Economics

Esther Duflo and Abhijit Banerjee. Picture credit: dailyO

Esther Duflo, Abhijit Banerjee and Michael Kremer were awarded the Economics Nobel Prize this year. That alone would not represent a huge novelty, given the standard these professionals and scholars have set in the last few years. However, in an article as far back as June 2016, Banerjee had already defended the basic income policy for India, as a way to reduce poverty, cut through corruption and minimize bureaucracy. Later on, already in 2019, Indian voters got not to elect the party (Congress Party) which was more serious about implementing (a version of) basic income in India, favoring the BJP ruling party. That, however, did not end the discussion about basic income in the Indian continent, in part because Banerjee, Duflo and other respectable scholars like Thomas Piketty, have been thinking, writing and speaking about the issue at the highest levels.

This award comes right before the release of Banerjee and Duflo new book, entitled “Good Economics for Hard Times”, a forward-looking elaboration on society, economic problems and creative social solutions. In it, basic income features as an important, if not crucial policy, for reducing poverty, simplifying governmental aid programs and increasing universality in cash transfers. In the authors’ own words:

Immigration and inequality, globalization and technological disruption, slowing growth and accelerating climate change–these are sources of great anxiety across the world, from New Delhi and Dakar to Paris and Washington, DC. The resources to address these challenges are there–what we lack are ideas that will help us jump the wall of disagreement and distrust that divides us. If we succeed, history will remember our era with gratitude; if we fail, the potential losses are incalculable.

Meanwhile, also, other heavy-weight economists like Angus Deaton, also a recent Economics Nobel Prize laureate, have come forward in defense of basic income-like type of policies.

More information at:

Abhijit V. Banerjee, “The best way to welfare”, The Indian Express, June 18th 2016

Abhijit V. Banerjee and Esther Duflo, “Excerpt: Abhijit Banerjee and Esther Duflo on Which Kind of UBI Could Work in India”, October 15th 2019

André Coelho, “India: The stars were not aligned in 2019, for basic income in the Indian continent”, Basic Income News, May 29th 2019

Canada’s Child Benefit is basic income ‘hiding in plain sight’

Canada’s Child Benefit is basic income ‘hiding in plain sight’

Updated on October 8, 2019 below article


In July 2016, the Liberal government of Justin Trudeau introduced Unconditional Basic Income to Canada and never mentioned it to anyone.

6.4 million Canadians can count on benefiting from about $500, tax-free, every month, no questions asked. It contributes $46 billion per year to GDP and adds $4 to GDP for every dollar it costs.

It’s called the Canada Child Benefit (CCB).

Why have we not heard that this program is, in fact, a Basic Income? When the Ontario government announced the abrupt cancellation of the Basic Income Pilot Project involving 4,000 low-income people after a few short months, it was all over the news. A permanent nationwide Basic Income involving 6.4 million Canadians and their parents (19 million people in total) runs for three years with stunning success and not one word in the press.

Indeed, I have spoken with many Liberal Members of Parliament who all express dismay and disappointment at the lack of visibility the CCB has among their constituents. Yet Canadians know how Basic Income works because one has existed for close to 70 years.

“In 1951, following an amendment to the British North America Act to permit the federal government to operate a pension plan, the Canadian Parliament passed the Old Age Security Act, which provided a universal pension, or demogrant, of $40 per month financed and administered by the federal government. All Canadians aged 70 and over who could meet the more liberal residence requirements were eligible, regardless of their other income or assets. Pension payments began in 1952 and were taxable.”[emphasis added]

Who was in power in 1951? Louis St. Laurent’s Liberals!

Why focus, in this discussion, on only one Party? Is that partisan politics? Some background:

The October 21st election is the perfect crucible in which to forge a new narrative about Basic Income in Canada. The centre-left Liberals of Justin Trudeau, whose father was prime minister from 1968 to 1984, swept into power in 2015 after a decade of Conservative rule. The progressive New Democratic Party is thinking about Basic Income on a 30-year timescale. The Green party is demanding more tests. Only the Liberals can point to action, although they refuse to admit it.

So, while Liberals can legitimately claim both a long history and recent accomplishments in implementing permanent Unconditional Basic Income programs (UBI), the public has no idea that here are two examples of highly successful implementations, hiding in plain sight! Both were introduced by Liberal governments and no one knows about it.

There is no mainstream recognition that Basic Income is a fait accompli in Canada. Sadly, many of the cognoscenti also resist this paradigm shift.

Yet a recent independent report sponsored by UBIWorks, shows that the CCB is not only an Unconditional Basic Income, but it is also a highly successful one for families and the economy. The report makes the following key points:

  • Canada has demonstrated the effectiveness of a national-scale Basic Income
  • 6.4 million Canadians benefit from about $500, tax-free, each month
  • The CCB directly touches approximately 19 million people. This not a test.
  • The CCB is an ongoing national program that has been running successfully for over 3 years
  • The CCB contributes $46B annually to the Canadian economy – exceeding the economy of Nova Scotia
  • CCB-related spending drives $85B / year in revenues and $18B in gross profits to businesses
  • 453,000 full-time equivalent jobs are contributed by the CCB, 2.5% of the Canadian labour force
  • Every dollar invested drives $2 of GDP and more than 55 cents of is recouped in taxes from economic activity
  • Therefore the CCB drives $4 of GDP for every net dollar it costs
  • The CCB has generated $27B in private capital investment and $77B in wage growth since its inception
  • The CCB has contributed to 3 years of economic growth, low inflation, and unemployment levels at record 40-year lows

Clearly, the Canada Child Benefit is a Canadian flavoured Basic Income which is as close as it gets to a UBI in the real world. It is a huge success hiding in plain sight. it is individual because strictly based on headcount and it is unconditional because you do not have to do anything special to deserve it, and you can do with it as you please, no questions asked. Furthermore, it is a regular, predictable, cash transfer paid monthly, for which you can sign up before you are even born. It is not means-tested. However, it is income-tested, which means wealthier families are phased out from the benefit. Does it deviate in some ways from the ideal, orthodox form of Basic Income? Of course! Where do we find ideal forms in the real world?

A similar demonstration can be made for Old Age Security. Since the facts show the economic impact of Basic Income for ages 0-17 and 65+, why not expand the programs to all those in between? Why not start right away with ages 18-19, who need the money to stay in school or get a good start in life, some other way?

As the incumbent Liberals struggle in the polls and are headed toward a minority government status in the October 21st elections, according to the latest projections, Basic Income advocates around the world can only look on in dismay at this missed opportunity to benefit from changing the narrative about Basic Income in Canada.

 

Updated October 8, 2019

Ten months before October 21st 2019 election, the National Post published an article with the headline: “Liberals say they are looking at ways to provide guaranteed minimum income to all Canadians.” 

Although the nomenclature of Unconditional Basic Income (UBI) is notoriously anarchic, clearly the federal Liberal Party of Canada was considering such a plan. In the article, the Canadian Press reports:

“Prime Minister Justin Trudeau and Social Development Minister Jean-Yves Duclos have argued that the Liberal-created Canada Child Benefit, among other measures, amounts to a guaranteed minimum income already.”

Yet not a word about this, 28 days into the campaign, as I have reported above.

During the first English-language debate, on October 7th, Justin Trudeau hammered home more than once that “Nine hundred thousand Canadians have been lifted out of poverty, including 300,000 children.” He made an oblique reference to the Canada Child Benefit, which is largely responsible for these numbers. 

Unconditional Basic Income was never mentioned even if there is no question that it helps reduce poverty. This is just not the best argument to support it when powerful economic data is available.

Why the Trudeau Liberals have chosen not to play the UBI card, I couldn’t say. They may come to regret the mistake.

Pierre Madden

​​WhatsApp/Cell: +1 514 238-0044

https://www.basicincomemontreal.org/

https://www.revenudebasevilleray.com/

https://www.facebook.com/PierreMadden

 

Pierre Madden
The book, “The Ethics and Economics of the Basic Income Guarantee:” Free Version available

The book, “The Ethics and Economics of the Basic Income Guarantee:” Free Version available

The Ethics and Economics of the Basic Income Guarantee (2005) edited by Karl Widerquist, Michael Anthony Lewis, and Steven Pressman, published by Publishing is availed in a free version at this link.

This book available because most publishers allow authors and editors to post early version for free on their personal websites. That means it has lots of typos and other problems. But it’s a reasonable approximation of the final version. Please see the published version if you can. It’s available at university libraries.

Summary from 2005

This book is divided into four Parts. They cover the history of BIG, philosophical debates over the vision of society it represents, sociological and economic debates concerning its effects, and finally some practical proposals for a BIG in several countries.

The four chapters in Part One trace the history of the BIG proposal from its beginnings in the late eighteenth century to the present with special emphasis on the guaranteed income movement of the 1960s and 1970s in the United States.

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Steven Pressman

In chapter 2, Fred Block and Margaret Somers examine the relationship between the welfare reform passed by the United States Congress in 1996 and Speenhamland, a British town that (in May 1795) decreed the poor were entitled to certain public assistance. As the program spread among English parishes, it generated a great deal of controversy. Critics argued that it provided relief to the able bodied, and thus reduced work effort and increased the local tax rates (to support the poor). Block and Somers revisit the Speenhamland episode. Drawing on four decades of recent scholarship, the authors show that Speenhamland policies could not have had the consequences attributed to them. They then seek to explain how the Speenhamland story became part of the accepted wisdom regarding public assistance to the poor and how it contributed to the 1996 welfare reform legislation in the United States. This argument has important consequences of BIG proposals, since it points out that income guarantees have not had negative consequences in the past and so they should not be rejected for this reason.

In chapter 3, economists John Cunliffe and Guido Erreygers focus on the historical antecedents of contemporary basic income proposals. Specifically, they focus on proposals put forth by the nineteenth century American writers Cornelius Blatchly, Thomas Skidmore, and Orestes Brownson. They argue that these writers may have been influenced by the ideas of Thomas Jefferson and Thomas Paine, American revolutionaries whose ideas about economic policy and distribution bear striking similarities to current basic income proposals.

Robert Harris gives an inside account, in chapter 4, of the politics behind the guaranteed income movement of the 1960s and 1970s. The movement grew out of dissatisfaction with the conditional welfare system that had been in place since the New Deal, which was failing to eliminate poverty either for workers or for people unable to work, and which was causing significant poverty traps. Many people on the left and right began to see the guaranteed income as a simpler and more effective system for both the working poor and those on social assistance. Nixon’s modified guaranteed income was overwhelmingly passed by the House of Representatives, but failed narrowly in the Senate thanks to opposition from both left and right and to lukewarm support from Nixon himself.

One offshoot of the guaranteed income movement was that five NIT experiments were conducted in the United States and Canada during the 1970s. These experiments divided a group of subjects into two groups. One group was part of a negative income tax plan; the other group was a control group that was subject to the regular United States income tax. The experiments were designed to measure the impact of NIT on labor force participation and marital dissolution in a rigorous scientific manner. These experiments were not only important for the basic income guarantee, but they were also the first large scale social experiments and had farreaching influence on policy research in a number of different areas. Some of the original scholars from the negative tax experiments reunite in chapter 5 to discuss their importance after 30 years. The panel members discuss the political reasons for setting up the experiments and their results. Although the results were largely positive, showing small workdisincentive effects and important effects on health, educational attainment, and well being, some politicians and pundits used the experimental findings to help quash the NIT.

Part Two examines the philosophical debate over BIG. The papers in this section of the book discuss various justifications for a BIG and compare the case for a BIG to the case for other types of income support plans.

In chapter 6, political theorist Almaz Zelleke examines political rights and BIG. Her concern is that social thinkers on both the right and left tend to agree that income policies should have work or social contribution requirements attached to them. After discussing and criticizing the arguments of thinkers such as Laurence Mead, Mickey Kaus, Anthony Atkinson and others who hold this view, she puts forth an alternative—the market should be regarded as a sphere of citizenship no less important than the polity. That is, the liberty that we grant to United States citizens is tied to the right to partake in the market as much as it is tied to the right to partake in politics. Thus, we should view income that lets people participate in the market as analogous to voting rights that let people take part in the political process. We grant people the right to vote and, likewise, the basic income should be viewed as a right to “vote” in the marketplace.

Philosopher Michael Howard’s article (chapter 7) is largely a discussion of the liberal neutrality principle associated with the philosopher John Rawls, and its relevance to the basic income debate. The neutrality principle roughly stipulates that an acceptable theory of justice cannot be biased toward any particular substantive conception of the good life. Howard’s thesis, presented with the argumentative and analytic skills philosophers are known for, is that any income policy that requires some contribution to society is biased toward those whose conception of the good life involves such contribution; a basic income isn’t biased in this way, rendering it the more just policy.

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Michael A. Lewis

In chapter 8, Karl Widerquist defends basic income against the “exploitation objection,” which asserts that a basic income allows individuals to benefit from social cooperation without contributing to society, thereby exploiting those who do work. He specifically addresses Gijs van Donselaar’s version of this objection, and argues this objection has three critical flaws. First, the conclusion that a basic income is exploitive relies on holding the poor responsible for the level of scarcity in the world. Second, van Donselaar treats work rents differently than other rents. Third, van Donselaar’s definition of exploitation is unworkable in practice, and the connection between it and a case against basic income is weak.

In chapter 9, Michael A. Lewis enters the debate between basic income and the basic stake proposal put forth by Bruce Ackerman and Anne Alstot. This proposal stipulates that a lump some of $80,000 be provided to each high school graduate at age 18 if the recipient plans to attend college or age 21 if she does not plan to do so. Lewis addresses the question of whether basic income or the stake is better at promoting freedom. He suggests that if one makes assumptions associated with rational choice theory it would seem that the stake is more freedom promoting. However, he goes on to argue that there appear to be pervasive patterns in decision making that might result in people allocating their stakes in ways they might later regret, and that a basic income might be more freedom promoting because it would constrain people’s ability to make such decisions.

While Part Two is philosophical in its orientation, Part Three is empirical. The papers in this section address questions concerning the real world impact of a BIG and its alternatives.

Steven Pressman, in chapter 10, addresses one of the key tradeoffs faced in a BIG plan—the lack of incentives to work hard and make more money that are likely to occur as a result of giving people a sum of money with no strings attached. Generating greater equity with a BIG will therefore also reduce economic efficiency. If these efficiency losses are large enough, reduced efficiency would constitute a good case against BIG. Using an international dataset that stretches back over 20 years (the Luxembourg Income Study), Pressman examines the tradeoff between equity and efficiency empirically. He finds negligible efficiency losses due to government redistribution efforts, and concludes that any efficiency-equity tradeoff is likely to be small (as long as redistribution efforts remain in their current range).

In chapter 11, economist James Bryan focuses on poverty reduction as a central goal of any income policy, but also attends to the effect such policies have on work incentives. Bryan looks at the extent to which the mid-1990s welfare reforms reduced poverty by focusing on trends in poverty before the reforms, from

1993–1995, and trends afterwards, from 1995–1996. He arrives at three conclusions: (1) poverty among families with children declined in the post-reform period but the rate of decrease was slower than during the pre-reform period, (2) among poor single-mother families there were reductions in disposable income, and (3) these reductions in disposable income were only partially offset by cash and in-kind programs such as the earned income tax credit (EITC) and food stamps. Bryan argues that a basic income guarantee could decrease poverty to a larger extent while creating smaller work disincentives than the current package of the Temporary Assistance for Needy Families (TANF), workfare, food stamps, and EITC programs. He attributes this to the high benefit reduction rate in current programs compared to the lower reduction rates that would obtain in basic income plans. From an economic point of view Bryan sees two arguments against the basic income. First, the volume of transfers needed to achieve an acceptable minimum income guarantee may be very high compared to more highly targeted programs. Second, to maintain work incentives for beneficiaries, the benefit reduction rate must be low. This would, in turn, create a small net donor population, thus requiring a high marginal tax rate and generating a larger work disincentive for this group.

In chapter 12, Thierry Laurent and Yannick L’Horty examine the work incentive problems of a basic income guarantee. They argue that most previous studies of the work incentive problem take a static approach. People are thought to balance just the income from working now against the income received now from a guaranteed income plan. However, Laurent and L’Horty note that there are also dynamic considerations. People with jobs today are likely to get promotions and higher pay in the future. So the real choice is a dynamic one, where individuals must balance both the short- and long-term benefits of work against the BIG. The authors then model labor force participation in an intertemporal framework, and use data from French labor market surveys to test their model. Their results show that there are differences between short-run back to work incentives and long-term problems. They also show that there is no obvious link between short- and long-run incentive problems. Finally, their results explain why some workers may have an incentive to accept jobs that do not pay, while others do not.

In chapter 13, Stephen Bouquin presents research results on the effects of tax-credit systems in Europe that use “in-work benefits,” which are meant to be combined with the wages of the working poor. He examines the labor market policies of three European countries that have been increasingly relying on inwork benefits, including the United Kingdom (Working Tax Credit, Income Support), France (Tax Credit), and Belgium (several policies). He finds evidence of what he calls the “Speenhamland effect” on wages. That is, in-work benefits can reduce real wages, as employers capture some or all of the benefits (intended for workers) by reducing the wages they pay. Through these effects, expenditures intended to benefit poor workers end up benefiting their employers. The existence of Speenhamland effects raises serious doubt for any policy based on forcing individuals into the paid labor market.

BIG also raises practical questions. How much would a BIG cost? How can it be financed? What is the optimal level of BIG, given tradeoffs between poverty reduction on the one hand, and costs and work disincentives on the other hand? Part Four, the final section of the book, contains chapters that examine the political prospects of BIG and chapters with nuts and bolts proposals for making basic income work in various countries around the world.

In chapter 14, Nicoli Nattrass and Jeremy Seeking discuss the possibility of implementing a BIG in South Africa. South Africa is the only country in the world with a major grassroots movement pushing for BIG, and it has a unique political and economic situation that make BIG politically feasible. The authors argue that BIG has been on the agenda because of the coincidence of four main factors. First, the country already has a system of public welfare that is unusually extensive in its coverage, unusually generous in its benefits and unusually redistributive in its effects. Second, poverty persists due to unemployment and the absence of subsistence agriculture, and there is little prospect of reducing poverty through job creation or land reform in the short- or medium-term. Third, the existence of an extensive system of private welfare, through remittances sent by employed workers to rural kin, means that it is in the interests of the powerful trade union movement to support a BIG. Fourth, the extent of inequality, paradoxically, makes it easier to finance a BIG based on redistribution from the rich to the poor.

Karl Widerquist, credit: Enno Schmidt

In chapter 15, Brazilian Senator Eduardo Suplicy discusses the movement for a BIG in Brazil. Suplicy and others have been pressing for BIG at the federal, state, and municipal level since the late 1980s. The measure was twice approved by the Brazilian Senate but languished until the Workers’ Party (of which both Suplicy and President Lula are members) took control of the presidency. Success was finally achieved in January 2004 when President Lula signed a basic income bill into law. The new law gives the executive wide authority to determine the timing of the phase-in, but it authorizes the gradual introduction of a small basic income guarantee within the next eight years.

In chapter 16, political scientist Yannick Vanderborght discusses recent debates over BIG in Belgium and the Netherlands. Reviewing the various arguments both for and against the basic income, he concludes that the supporters of a basic income have an uphill battle. Vanderborght views the main obstacle to the basic income in these two countries as the widely held belief that able-bodied recipients of income assistance should make some social contribution in return for assistance. He concludes with a discussion of the so-called “participation grant,” a policy that would provide a universal grant to all citizens or residents as long as they engaged in some socially beneficial pursuit. Such a pursuit does not necessarily mean one has to sell her or his labor. Thus, providing uncompensated (by the market) care for children, or for other friends or relatives, and a host of other “outside the market” activities would qualify. Vanderborght argues that such a policy might have a more promising future than the “pure” basic income.

In chapter 17, Derek Hum and Wayne Simpson provide some cost estimates for several possible Canadian BIG programs. Employing two different definitions of poverty, Hum and Simpson estimate that a BIG to eliminate poverty in Canada would cost between $141 billion and $176 billion (or around 15 percent of Canadian GDP). This, they believe, is too costly and would not be politically acceptable in Canada. They also provide estimates of alternative BIG plans that provide income guarantees below the Canadian poverty line. These programs would cost little more than current income transfer programs because they include a negative tax or claw back of the income guarantee. Hum and Simpson find that these programs would do much less to reduce poverty and the income shortfall facing the poor. They conclude by noting that there are many possibilities between these two extremes; these plans would not be very expensive, yet would be relatively effective in reducing poverty in Canada.

In chapter 18, Randall Bartlett, James Davies and Michael Hoy explore how to set up a negative income tax in the United Kingdom. Their goal was to formulate a set of programs with a guaranteed income and a single flat tax rate that collects the same amount of money as the existing United Kingdom progressive tax system. They then test whether their negative income tax is as progressive as the current United Kingdom tax and transfer system. Their findings are that it would be relatively easy to structure a negative income tax for the United Kingdom that is more equitable than the current system and that does not require high marginal tax rates.

The chapters in this book bring the debate over basic incomes into a contemporary and eclectic context. They provide many different perspectives to the BIG proposal in specific and to antipoverty policy in general. And they show that BIG is a feasible policy alternative.

 

The Ethics and Economics of the Basic Income Guarantee (2005) edited by Karl Widerquist, Michael Anthony Lewis, and Steven Pressman, published by Ashgate

A free version is available at this link.

Universal Basic Income and the Philosophy of Freedom

The following is an extended excerpt from, “The Future of Work: Universal Basic Income and the Philosophy of Freedom,” by Romany Williams, SSENSE.

The rhetoric that increased entrepreneurship equals a utopian society is one-sided. What about equality as a means for liberation from these systemic ideals?

 

“UBI is voluntary participation capitalism. What we have now is mandatory participation capitalism. I believe this model of mandatory participation capitalism is an affront to a free society,” says Karl Widerquist, Associate Professor of political philosophy at SFS-Qatar at Georgetown University and author of Independence, Propertylessness, and Basic Income: A Theory of Freedom as the Power to Say No. “Capitalism is based on people who own all the resources, and other people who can only use those resources if they take a subordinate position. Most of us will have no choice but to participate in the capitalist system, not as a capitalist, but as a worker for years. Basic income gives you the power to say no to that. To say, ‘I work because I want to, not because you threaten me with homelessness and starvation.’”

 

“The potential for robotics to give us more leisure is incredible if we’re allowed to take it. But most of us can’t demand that. If we don’t work 40 hours a week, 50 weeks a year, we don’t have any income,” says Widerquist. “We should all receive some of the benefits of automation. If you’ve had a job anytime in the last 40 years, you’ve done something to further the great economic growth we’ve had.”

 

Chronic economic insecurity is toxic and a sense of freedom doesn’t come from an Instagram feed filled with pictures of nature. Nor does it come from endlessly climbing the corporate ladder. The scarcity mindset that is perpetuated by the lack of proper compensation and workers’ rights only worsens mental health issues, making for an increasingly volatile social and political climate. History proves that the only way to change things is to mobilize. “Remember the 1% is only 1% of the people,” says Widerquist. “We have the other 99%.”

The author of the article excerpted here is Romany Williams, a stylist and associate editor at the fashion magazine, SSENSE, (pronounced “S-sense” or “essence”). I never expected to be interviewed for a fashion magazine, but he did an amazing job giving my ideas context and letting me speak for myself—for good or bad. I’d edit it slightly if I could.

The full text of the article is online: “The Future of Work: Universal Basic Income and the Philosophy of Freedom,” by Romany Williams, SSENSE