by Tyler Prochazka | Dec 16, 2016 | Bios & background Info
Biography
Tyler Prochazka was born in Kansas. In high school, he got involved in competitive policy debate, which spiked his interest in government policy. In 2010, Western Kentucky University’s speech and debate team recruited him to compete on the team. Prochazka received degrees with honors in Economics, International Affairs and Asian Religions and Cultures. His honors’ thesis was a comparative analysis of Chinese and American youth political perceptions. While at WKU, he also learned Mandarin and studied abroad in China three times.
Prochazka has participated in research fellowships and internships at the American Enterprise Institute, National Center for Policy Analysis and Rand Paul’s (R-Kentucky) Bowling Green Senate office. Currently, Prochazka is completing a Master’s degree in Asia Pacific Studies at National Chengchi University in Taiwan through the Fulbright scholarship.
Advocacy
Prochazka’s interest in the basic income began while attending WKU, where he started reading about the libertarian case for a basic income in Reason magazine. In the summer of 2015, Prochazka started volunteering for the Basic Income Earth Network after watching a documentary featuring Guy Standing.
Since 2016, Prochazka has been the features editor for BI News. He has concentrated much of his research on the feasibility and implications of implementing a basic income in Asia Pacific countries. For his WKU economics thesis, Prochazka conducted an economic analysis of the minimum income guarantee in China (dibao) and the prospects of replacing the dibao with a universal basic income.
While studying in Taiwan, Prochazka is working with the Taiwanese basic income organization to plan events and promote the concept in the Asia Pacific. Prochazka also helps run the Facebook page Libertarians for Basic Income.
Capitalism and Basic Income
One of the appeals of basic income, Prochazka argues, is the positive economic impact it would have, especially as a replacement to the current welfare state. It would dramatically lower bureaucracy costs and lower effective tax rates for low-income individuals, allowing these individuals to work more if they choose.
A basic income has the potential to open the market place for everyone, making finding suitable jobs and starting businesses easier. Prochazka believes that if libertarians are serious about expanding and sustaining the free market, a basic income is a necessary step.
Media references
Article cited in Libertarian ticket could spoil Clinton party, CNN, 2016
Interviewed at New Taipei City Festival, Taiwan, 2016
Referenced in WKU sees record success in national scholarships, WBKO ABC News, 2016
Featured in WKU debaters visit Plano Elementary, BG Daily, 2013
Non-BIEN Publications
Would the Lee-Rubio Tax Plan Help Lower-Income Households?, National Center for Policy Analysis, 2015
The World in Transition: A Comparative Analysis of Youth Perceptions in China and America, WKU Honors Thesis, 2015
When you click Accept: concerns over new IT policy spark debate, WKU Herald, 2013
by Tyler Prochazka | Dec 14, 2016 | Opinion
In his new Kindle book Mending the Net, author Chis Oestereich describes how a basic income can address some of the “wicked problems” facing humanity.
For Oestereich, the basic income can help society rethink its consumption patterns and possibly upend the “treadmill of subsistence.”
In the book, Oestereich predicts that the economy could be headed toward a recession. In the interview he said that basic income can be a “shock absorber” of economic downturns. Without a basic income, Oestereich said he worries that the next recession will be much worse than the last for many people.
One of the most unique effects of the basic income is its potential to change how we view careers and allow “self-determination,” Oestereich said.
“By standing individuals up on an income floor, we could open the door for many to create unique, fulfilling lives that might not otherwise be possible,” he said.
The full interview can be found below.
You said in the book: “A universal program removes the opportunity for politicians to erode benefits in a death by a thousand cuts scenario”. Can you explain why you think universal basic income evades austerity?
I don’t think it evades austerity in general as there are other programs to cut that could still greatly impact lives, but rather that it evades austerity because since it is universal, any cut must be done to everyone. Means testing programs are a game of continually shifting goal posts wherein a small adjustment to a qualifying measure can mean the difference between families having enough to sustain themselves, and coming up short. By shifting to a universal program the goalpost moves could no longer trim away at those on the margins.
Chris Oestereich
I’ve heard some say providing a greater array of people more money through basic income would exacerbate environmental degradation with their new consumption? Considering lower income individuals spend a higher percentage of their income. What do you think the overall effect on the environment would be from basic income?
I think environmental impacts are one of several valid concerns around basic incomes. That’s why I advocate for significant testing to see what we can learn. Some people may be enabled to purchase and consume more goods and services as the direct result of a UBI, but I think that’s an argument for finding an appropriate level of UBI that’s not so large that it allows people to go from living lives of unfulfilled needs, to being enabled to live destructive lifestyles. But I think some of us might cut back on some work and consumption that are part of today’s treadmill of subsistence. Take away the need for a full-time job to get by and some of us might only work three or four days a week and consume less resources through commuting and other related efforts. We need to gain a better understanding of the effects of a widely-implemented UBI, and then we might need to update social norms to align with systemic needs. And it’s possible that we could gain unexpected positive effects like those experienced in Utah where giving homeless people places to live resulted in reduced use of medical care.
You mentioned that we are probably counting down to a recession. How would a basic income address the issues of economic recession?
I called UBI an economic shock absorber because it would be there to blunt the negative impacts anytime the economy went south. (If we had a UBI in 2007, how many of the millions of people who lost their homes to foreclosure might have squeaked by without falling into those dire circumstances?) With a little something coming in each month comes a modicum of hope, rather than the steady drumbeat of a straight-line declining balance in your checking account. But if we don’t have a UBI in time for the next recession, I think we can expect that the outcome of the next one will be worse than the last one—at least for some segments of the population—as losses from the Great Recession “were disproportionally concentrated among lower income, less educated, and minority households.”
Why do you think the profit motive is destructive? And how does basic income help address the profit motive force?
I don’t think the profit motive is inherently destructive. But when it’s the sole focus of an organization, the profit motive allows businesses to hold extractive relationships over their employees. When a person has no other means of subsistence, the terms of employment are often highly-unfavorable. Give an unemployed person a decent monthly payment via a UBI and the choice is no longer one of zero income or an extractive employment relationship, so the calculus around the decision changes tremendously. Instead of being in a take-it-or-leave-it scenario with only savings (if that) to fall back on, you have a choice of tightening your belt and squeezing by on any savings you have along with your monthly UBI check. It would give workers a little bit of leverage in scenarios where they often have none.
You mentioned “If you hear someone talking about Milton Friedman and basic incomes in the same breath, it’s probably safe to assume that they’re looking for overall cost savings to reduce their personal tax burden.” Do you think libertarians that support basic income are primarily concerned with bringing down costs? And along those lines, do you think a coalition including fiscal conservatives and libertarians on basic income is possible?
My sense is that libertarians are primarily concerned with optimizing their personal tax effects. If a UBI could reduce administrative costs, and they would end up with a net financial benefit, you’d probably have their ears. But if they ended up paying more into the system, I think you’d quickly stop hearing about how great it was. So, I think they could be willing partners up to a point, but that they’d likely drop off from the cause at some point, and that they would eventually oppose efforts to increase the amount of UBI payments. My thought is that we could probably work together to get the proof of concept testing done, but that in working to make an initial UBI happen libertarians might become a drag on the effort as they would likely be aiming for systemic savings, rather than an outcome that would be measured in improved lives.
What inspired you to write this book?
Mending the Net wasn’t planned. I was invited to write chapters for a couple of different books, the ItsBasicIncome project that will be published out of the UK soon, and another anthology around environmental issues. I wrote them both independently and then realized that they would fit together nicely in a Kindle single format as the essays offer two different perspectives on “why” we ought to consider trying UBIs. (Readers will have to look elsewhere for the “how” argument as that’s not my bailiwick.)
As for the topics of the essays, I’ve never been a big fan of the rat race, and I’m a huge proponent of self-determination. Basic incomes help along both of those lines. By standing individuals up on an income floor, we could open the door for many to create unique, fulfilling lives that might not otherwise be possible.
What is your involvement in the basic income movement?
I guess I’m sort of a passionate advocate, but I certainly don’t see myself as a movement leader. There are others (like Guy Standing and Scott Santens) whose work I regularly look to for ideas and updates on the topic. For my part, I’m working to systematically address all wicked problems. To that end, I’m currently working on a book on the UK’s Brexit issue, as well as the second anthology from the Wicked Problems Collaborative (my publishing company), that will look at the promise and peril of our rapidly advancing technological environment.
by Kate McFarland | Dec 13, 2016 | Opinion, Testimonies
This year, BIEN celebrated its 30th anniversary. An event commemorating the occasion was held at the Université catholique de Louvain (UCL) in Belgium on October 1, in connection also with the 25th anniversary of UCLouvain’s Hoover Chair of economic and social ethics and the retirement of BIEN cofounder Philippe van Parijs as its director.
Earlier this month, I had the opportunity to conduct an email interview with Philippe Van Parijs about the past, present, and future of BIEN.
What’s the most striking difference between BIEN’s earlier years and now?
Participants in BIEN’s founding meeting
The internet. It is hard for young people today to imagine what it meant to run an international network when all communication between its members had to happen through the post. The newsletter needed to be typed, then printed, then photocopied, then stapled. Each copy of the newsletter then had to be inserted in a big envelope, with a stamp stuck on it, and the whole lot had to be taken to the nearest post box. All this cost money. So, annual fees had to be collected. But bank charges were high for international transfers and would have absorbed half of these fees. We therefore asked people to send the money to Louvain-la-Neuve in an envelope in pesetas, deutsche Mark, French Francs, lire, etc. and I changed them at the bank before paying equivalent amounts in Belgian Francs into BIEN’s bank account. We more or less managed three issues per year, but given the time this cost to a tiny number of busy people, this was a recurrent miracle. To lighten the thankless burden of fee collection, we wisely switched in the late nineties to a life membership formula. And from 2000, thanks to increasing access to internet among BIEN’s members, we allowed ourselves to gradually switch from the tri-annual printed newsletter to more frequent e-mailed news flashes.
What were BIEN’s most memorable successes in its first 30 years?
The greatest success — and the first virtue of a good network — is simply to have kept going, with a newsletter sharing intelligible and trustworthy information every few months and with a congress unfailingly organized every two years. These congresses enabled a core of highly committed people to get to know each other personally, to inform, encourage and inspire each other, but proved also a powerful instrument for making more people aware of the idea of basic income and ready to take it seriously. The first two conferences (in Louvain-la-Neuve in 1986 and Antwerp 1988) were very modest, low-budget events. The first grand congress was organized by Edwin Morley-Fletcher, with the support of Italy’s Lega Nazionale delle Cooperative e Mutue at the European University Institute (Florence) in September 1990. I thought at the time that organizing such big and expensive events would be unsustainable. But I was proved wrong by a long and so far uninterrupted succession of enthusiastic conference organizers.
Eduardo Suplicy (CC BY 2.0 Senado Federal)
The second greatest success — and the second virtue of a good network — is to have kept expanding. As time went on, more and more people from outside Europe attended BIEN’s congresses. Among them, Brazilian Senator Eduardo Suplicy, who started suggesting, from 1998 onwards, that the Basic Income European Network should become the Basic Income Earth Network. Guy Standing was sympathetic to the suggestion from the start. I was very skeptical at first, partly because I knew too well how hard it had been to keep our little European network going, and partly because I thought that a broad interest in basic income could only arise in countries that experienced for a sufficiently long time the perverse effects of conditional income schemes. But by 2004, 25 percent of BIEN’s life members were from outside Europe. Moreover, in January 2004, Eduardo managed to get President Lula to sign his “basic income law”. And the internet was conquering the world. My resistance evaporated. At the Barcelona congress, in September 2004, the General Assembly approved our proposal to make BIEN a worldwide network.
Can these greatest successes be called memorable? Not really. A network acts discreetly in the background. It empowers its components, thereby helping them do a number of things, including memorable ones. Would there have been a basic income law in Brazil or a basic income referendum in Switzerland in the absence of the slow maturing and dissemination of the idea made possible by the existence of a lasting and expanding network? And would they stick as firmly in many people’s memories without an efficient and influential network that confers them a memorable rather than anecdotal status?
Can these greatest successes be called memorable? Not really. A network acts discreetly in the background.
What have been the biggest challenges?
Apart from the material concerns already mentioned, I can think of two main challenges. One is linguistic. Opting for English as the sole language of a European network was far less obvious thirty years ago than it has now become. There were voices rightly pointing out the elitism involved in this choice. In most countries, only bilinguals (or more) could be involved. Yet, given the resources available, only the monolingual formula was realistic. Consequently, a constant effort was required, far from fully successful, to correct the imbalance thereby created along many dimensions: from the overrepresentation of news and publications from Anglophone countries to the overrepresentation of Anglophones among active participants in our congresses or assemblies.
The other challenge is sectarianism. When people sharing the same conviction form an association, there is a danger that their meetings and publications will largely reduce to a rehearsal of the common faith and a denunciation of the stupidity or wickedness of those who don’t share it. It has been crucial to the vitality and impact of BIEN that it has resisted such sectarian degeneration. It has kept inviting to its congresses speakers who spoke against basic income. It has kept reporting in a fair way on criticisms and setbacks. And it has kept insisting that its membership is open to people “committed to or interested in” an unconditional basic income in a precise yet broad sense that does not stipulate a specific funding method, rationale, level or set of accompanying measures.
Has BIEN ever run the risk of dying?
Twice, I think. First, it could have been still-born. Driven by the pioneers’ enthusiasm, the initial plan, at the September 1986 founding conference, was to hold a conference every year, and someone offered to hold the next one in Maastricht in September 1987. But the proposal fell through and instead there followed a long silence. It is only in February 1988 that BIEN’s first newsletter was sent out, announcing a second conference, which Walter Van Trier, BIEN’s first secretary, managed to put together in Antwerp, in September 1988.
The second time agony seemed close was in the mid-nineties. With my four children, Louvain’s Hoover Chair to run and my Real Freedom for All nearing completion, I was struggling to combine the jobs of BIEN secretary and newsletter editor. To my great relief, at the London 1994 congress, a founding member who was hardly involved until then agreed to become the newsletter editor. I still dealt with the first issue following the congress, but thereafter, despite many reminders and repeated promises, nothing happened for many months. I took back the editor job and laboriously published a treble Christmas 1995 issue, after a full year gap. It made me realize both how crucial a newsletter is to the very existence of a network and how important it is for the sustainability of a network that people should only commit to what they are really able to do.
Philippe Van Parijs (photo credit: Enno Schmidt)
What do you see as BIEN’s biggest challenges moving forward?
One big challenge is to keep track of the countless fast swelling stream of relevant developments worldwide and to make their nature and significance intelligible to people across the world. Internet is no doubt a fabulous asset for a worldwide network. But working out the right hierarchy, in terms of relevance, significance and reliability, among the mass of information to which we now have easy access is both essential and difficult. BIEN’s current team is doing a terrific job in this respect.
Another challenge is to constantly find the right balance between utopianism and pragmatism, between on the one hand an attractive, stirring vision of a better world that can boost our hopes and stimulate our actions and on the other an acute, clear-headed awareness of difficulties, obstacles, defeats and disappointments.
What do you see as most exciting?
The fact that so many different people in such different countries discover, discuss and appropriate the idea and that this helps them regain the hope they had lost in a better future for themselves and for their children.
Philippe Van Parijs has been chair of BIEN’s international board since 2004. He was the organizer of BIEN’s founding conference (Louvain-la-Neuve, 1986), BIEN’s newsletter editor from 1988 to 2004, BIEN’s secretary from 1994 to 2004. He is the author (with Yannick Vanderborght) of Basic Income: A radical proposal for a free society and a sane economy, Harvard University Press, Spring 2017.
Cover Photo: Van Parijs at BIEN’s 30th Anniversary event (credit: Enno Schmidt).
by Guest Contributor | Dec 8, 2016 | Opinion
Written By: Pierre Madden
It is Voltaire who quipped that the Holy Roman Empire was neither holy nor Roman nor an empire. I am convinced that Basic Income will be implemented in the next decade. By its definition, BI is universal, individual and unconditional. However, none of these features will be a part of BI as it first materializes.
A universal demogrant is just too expensive to contemplate, except in Alaska where oil revenue is distributed to every man, woman and child. Giving the same amount to everybody only to claw it back in taxes from most, while philosophically pure, flies in the face of common sense. That is why all serious proposals are structured as a negative income tax (NIT). In fact, there are already features in the Canadian federal and provincial fiscal systems that function as NIT with regular cash transfers.
The basic unit in our society is the family. Statistics are kept by households. An individual is no more than a couple divided by the square root of two. This is in part just the common-sense recognition of the economies of scale of collective living. It is not four times as expensive to live as a family of four than to live alone, only two times (i.e.: cost of living alone times the square root of four). In Québec, two individuals sharing an apartment would each receive $623 per month for a total of $1,246. At some point, the government will consider them to be living in a “common law marriage” and cut the benefits to $965 in total (the government does not follow the square root rule). The fact that you do not sleep together or that you are siblings is not a defence. Across the board individuality would raise the problem of “the banker’s wife.” The banker is very rich but his wife who benefits from his wealth has no income of her own and would therefore qualify for any income subsidies. Of course, it has been argued forcefully that these women are often trapped in their gilded cage, unable to escape an abusive marriage, for instance.
Finally, governments are reluctant to abandon conditionality of benefits, a paternalistic remnant of the distinction between deserving and undeserving poor. A liberal democracy’s commitment to providing everyone with a quality education, for example, is not paternalism but the recognition of a basic right. This right is expanding to include people in their late twenties and early thirties as jobs for this generation disappear and those that are left require more qualifications. All non-health-related government benefits today are based on the condition of job seeking. The benefits themselves must in no way compromise the incentive to work. Part of the justification for this is economic, the fear that wages will skyrocket, profits will plummet and the economy will collapse if no one is willing to work anymore. Another part is ideological; education and work are seen as developing and preserving “human capital.” Government wisdom rather than individual freedom decides how that is defined.
While I am optimistic that Basic Income will see the light of day in my lifetime, I am prepared to accept an imperfect version and leave to future generations the task of improving it.
Author biography: Pierre Madden is a zealous dilettante based in Montreal. He has been a linguist, a chemist, a purchasing coordinator, a production planner and a lawyer. His interest in Basic Income, he says, is personal. He sure could use it now!
by Guest Contributor | Dec 6, 2016 | Opinion
Written by: Pierre Madden
On November 12 and 13 I attended a congress of the Liberal Party of Quebec, which is currently in power in the province.
The Minister of Employment and Social Solidarity, François Blais, confirmed that a joint working group, with his colleague in Finance, will issue a preliminary report on Basic Income in the Spring. Our neighbouring province of Ontario (which, together with Quebec accounts for 62 percent of the population of Canada) was just released a working paper on a pilot project to begin in April 2017. Quebec does not seem to be leaning towards a pilot project.
In his talk, Minister Blais placed much emphasis on the principles underlying the development of the government’s project:
- The development of human capital (though education, for example)
- The obligation of protection from certain risks (with unemployment insurance and health insurance, for example)
- Income redistribution
The minister’s speech was highly focused on incentives to work or study (especially for the illiterate or those without a high school diploma).
The principle of unconditionality, a fundamental aspect of Basic Income, will likely not be a feature of the government’s plan.
On the second day of the congress it was the minister’s turn to ask me if he had answered my question. I described my own situation as a case in point. I am 62, three years away from my public pension which here in Canada is sufficient to raise most people out of poverty (works for me!). Why would the government be interested in the development of my human capital? The minister replies: “In a case like yours, we would have to go back in time to see what choices you made.” I have several university diplomas, which doesn’t help his argument. I am still either underemployed or unemployable.
The minister could only answer: “I would have to know more about your individual case.”
And that is what the government does and will continue to do for all those considered “fit for work.” Petty bureaucratic inconveniences for those “unfit for work” will be removed and their inadequate benefits will be improved by dipping into the funds previously used for the “fit” as they return to the workforce. The government sees no difficulty in a law it passed just last week (Bill 70: An Act to allow a better match between training and jobs and to facilitate labour market entry). The government highlights the positive measures it imposes to help participants join the job market. Those who prefer a non-paternalistic approach (“Give me the money and let me make my own decisions”) are penalized.
The irony is that before he entered politics Minister Blais actually wrote a book in support of Basic Income for all. He confirmed to me that he still believes what he wrote 15 years ago.
In Canada, both the federal and the provincial governments partially reimburse sales tax. Here in Quebec, the Solidarity Tax Credit refunds part of the estimated sales tax paid by consumers. The higher your income, the lower the monthly payout, so it works like a negative income tax. The minister was asked about this as a stepping stone towards Basic Income. He simply said it would be “a more radical approach.” Of course, tax credits don’t impact on “human capital.”
You can be sure I will be rereading François Blais’ book when his work-group’s report comes out next year.
About the author: Pierre Madden is a zealous dilettante based in Montreal. He has been a linguist, a chemist, a purchasing coordinator, a production planner and a lawyer. His interest in Basic Income, he says, is personal. He sure could use it now!
