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Spain may issue ‘permanent’ basic income to fight COVID-19

by Tyler Prochazka | Apr 7, 2020 | Opinion

Reports are emerging that Spain is hoping to deploy a “permanent” basic income type program in the near future. The program comes as Spain aims to respond to the economic crisis from the global coronavirus pandemic.

Spain has one of the worst coronavirus outbreaks in the world with over 13,000 deaths.

Spain’s push for establishing basic income as a “permanent instrument” that “stays forever” will help reduce financial anxieties for many families worried about their jobs. Sending cash to families rather than corporations will better ensure economic security for the most vulnerable.

However, questions remain about the nature of the program and whether it will be truly universal and unconditional.

If Spain successfully implements basic income, it will become the first European country to implement the program on a national scale and one of the only places in the world to do so.

Finland famously experimented with a basic income pilot program. The experiment made recipients happier and healthier. Nonetheless, some government officials were upset the basic income pilot did not significantly affect employment status within a year for recipients.

Nadia Calviño, Spain’s minister for economic affairs, said the payments will be targeted to families and will differentiate based on their “circumstances.” In practice, differentiating based on circumstances will result in means tests that fall on the poor. If there are strict criteria, then some families who need assistance may be unnecessarily excluded or have their assistance delayed.

A better system is presuming each individual qualifies and allowing wealthier individuals to opt-out. If an individual who received basic income has a large income by the end of 2020, the government can phase out their basic income through the income tax system the following year.

Universality helps the poor, not the rich. It ensures all those who need assistance can receive it immediately. The true costs of universality are lower because it requires less administration and bureaucracy to implement the program.

Common Arguments Against Basic Income Don’t apply to the Emergency BI

by Karl Widerquist | Mar 27, 2020 | Opinion, The Indepentarian

The economy needs injections of cash right now

The Guardian newspaper asked me to write an opinion piece about the Emergency Universal Basic Income (UBI). They changed my headline but otherwise, printed it as I wrote it.

America is in crisis. We need universal basic income now. By Karl Widerquist, the Guardian, 20 Mar 2020

I’m reprinting it here in full:

A few members of Congress recently have suggested that the United States government institute an emergency Universal Basic Income (UBI) in response to the twin crises of coronavirus and the stock market collapse, which many economists believe could signal the start of a significant recession. UBI provides an unconditional sum of money from the government for permanent residents whether or not they work. Proposals for an emergency UBI vary. One common suggestion from lawmakers is $1,000 a month for adults and $500 a month for children for four months or more if the coronavirus persists. This amount would be an enormous help in this crisis.

I’ve studied UBI for more than 20 years, and I find that opposition to it usually comes down to two main arguments: that everyone should work or that we simply can’t afford it. Whether these are valid or invalid arguments against UBI in normal times has been debated for decades, but they simply don’t apply to the emergency UBI during the current situation.

Right now, we don’t need everyone to work. In fact, we need a lot of people to stop working. We don’t want food service and healthcare workers who might be sick to go into work and infect people because they can’t afford to stay home. In an economy where millions of people live paycheck-to-paycheck, an emergency UBI would give non-essential employees the opportunity to stay home during the coronavirus outbreak, slowing the spread of the disease. The more people we have who can afford to stay home the better off we’ll be, at least for the duration of the outbreak.

Most economists will agree that the economy needs injections of cash right now. When economies slide into recession, there is a “multiplier effect” as people lose their jobs and businesses contract, they spend less. Other people then lose their jobs or contract their businesses, and this multiplier effect continues. The economy shrinks, income declines, and money literally disappears from circulation.

Governments can help stop this process by creating money and injecting it into circulation. After the 2008-2009 economic meltdown, the United States government and governments around the world created trillions of dollars worth of currency out of thin air and injected it into the economy, usually by buying back their own debt, in an effort to stimulate demand and reverse the multiplier effect. Buying back government debt isn’t necessarily the best way to stimulate the economy, however. The money goes mostly to people who are already rich, and they have very little incentive to invest that money when everyone else is losing income.

An emergency UBI is just about the best economic stimulator that exists in modern times because it gets money in the hands of everyone. No one’s income would go to zero due to stock market-related layoffs or corona-related precautions. That income helps people maintain some of their spending, which helps prevent others from losing their jobs through the multiplier effect.

Congress should act now. An emergency UBI, providing $1,000 per adult and $500 per child, per month, for four months or as long as the outbreak lasts, can help everyone get through this critical time. The sooner our government acts, the sooner we start to recover. We don’t know how bad coronavirus will get. We shouldn’t have to worry about how we will be able to buy food and pay rent as well.

The economy needs more money and less labor.

We need people to spend money.

And we don’t need them to work for it.

CNBC Interview of Karl Widerquist on Emergency Basic Income

by Karl Widerquist | Mar 24, 2020 | News, Opinion, The Indepentarian

Annie Nova, “How the Trump cash infusion would help millions of Americans: Interview with Karl Widerquist.” CNBC, Mar 18 2020

Empty streets in California

Annie Nova, of CNBC, recently interviewed Karl Widerquist to ask about proposals for an Emergency Universal Basic Income during the twin crises of the coronavirus and the stock market meltdown. Some people have seen the latter as a positive thing, however, with intrepid sorts jumping onto the market after reading some robinhood app reviews and learning the way it works.

To prevent millions of Americans from running out of money amid the coronavirus, the government has announced plans to send out checks to them soon.

When Treasury Secretary Steven Mnuchin made the announcement about the cash infusion on Tuesday, universal basic income proponents felt validated. Now, the group of those calling for such a policy, if only in a temporary rendition, is quickly growing. Already some 1 in 2 Americans say they support a program in which the federal government sends out regular checks to everyone, regardless of their earnings or employment.

Tech entrepreneur and former candidate for president Andrew Yang centered his campaign on a $1,000 universal basic income. He dropped out of the Democratic primary last month, but now the hashtag #YangWasRight is taking off on Twitter.

As the pandemic forces schools and businesses to empty, Democratic senators, including Cory Booker of New Jersey and Sherrod Brown of Ohio, have called for immediate $2,000 payments to adults and children below a certain income threshold. Meanwhile, Sen. Mitt Romney, R-Utah, proposed giving every American adult $1,000.

CNBC spoke with Karl Widerquist, an associate professor at Georgetown University-Qatar and a founding editor of the journal, Basic Income Studies, about how a cash infusion could help Americans. (The interview has been edited and condensed for clarity.)

Annie Nova: Why do you think the Trump administration is considering sending cash directly to Americans?

Karl Widerquist: Some people have no other choice but to go to work, whether they’re sick or whether their child is sick, and it’s really not good to keep this threat over the heads of our entire working class. But the economy needs money and it needs money to go into the hands of people who will spend that money.

AN: Why is this policy preferable to the payroll tax cut the administration was also considering?

KW: The payroll tax is slower to take affect and it only effects formal workers. Informal workers, contract workers, the self-employed, single parents, children and the homeless need this money more than anyone else, but they’ll be left out by the rebate.

AN: How would a cash infusion make this less of a crisis?

KW: In very important ways. You’ve got a bunch of people who’ve been told, ‘Don’t go to work. Stay home. We don’t need you to wait tables and cook meals.’ And these people need to eat. That’s the first line. But it also has ripple effects across the entire economy. The stock markets are tanking, in such an enormous and rapid rate, that it implies we’re going into a very steep recession right now. During a recession, not everyone can find work, but we need them to keep up their spending because when they don’t spend, then the businesses where they buy stuff, they lose money and they go out of business. That increases unemployment. It’s what we call in economics a multiplier effect. So a universal basic income is going to keep people working by keeping people spending.

Annie Nova, CNBC

AN: These proposals often call for giving children money, too. Why?

KW: We give money for children because that’s why parents work. Parents have to go into work because their children need food, shelter and clothing. They need to pay the rent for the rooms in which their children live. If a bunch of people are having to stay home from their jobs, if they’re unable to pay their rent and if they’re unable to buy food, their children are going to suffer.

AN: Sen. Romney recommended a $1,000 payment. Some Democrats up to $4,500. How much is enough?

KW: Replacing people’s entire income is not necessarily what you want to do. That preserves existing inequality. If I’m staying home from my $100,000 a year job as a university professor, and the person next to me is staying home from their job as a minimum-wage dish washer, I shouldn’t get any more than they do. What you want to do is stop income from collapsing, and the best way to keep it from collapsing is to make sure everybody has a minimum amount.

AN: What could go wrong with the payments?

KW: I’m a little worried about the conditions. When you put conditions on at a time like this, when we’re in an emergency, there are problems. You waste money on figuring out who’s eligible and who isn’t and then you make mistakes. You’re going to give it to some people who don’t deserve it, and you’re going to deny it to some people who do.

AN: You have politicians on the left and right getting behind this cash infusion. Does that surprise you?

KW: The increasing polarization in this country is really sad to see. Hopefully, once in a while, we still can pull together. Both sides of the aisle are recognizing this is really a double crisis, with coronavirus and the stock market collapse happening all at the same time.

Canada: The Ontario Basic Income (cancelled) experiment, revealed

by Andre Coelho | Mar 12, 2020 | News

The findings of the McMaster University Basic Income Project (MUBIP) were released on the 4th of March 2020. The study looked into the impact of the Ontario Basic Income on over 200 recipients in one of the pilot sites, namely Hamilton-Brantford, where 1000 recipients were initially enrolled into the program. Even though the previously hired research team’s contract to evaluate the program was cancelled (by the present government), a new analysis was made possible through funding from the Hamilton Community Foundation, McMaster University and the Social Sciences and Humanities Research Council.

The findings were publicized at a lauch event on the referred day, organized by the McMaster Institute for Health Equity taking place at the L.R. Wilson Concert Hall, and having Hugh Segal as a guest. From the new study conclusions, it can be read:

Everyone who received basic income reported benefitting in some way.

Many recipients reported improvements in their physical and mental health, labour market participation, food security, housing stability, financial status and social relationships.

Basic income also had a noticeable impact on the use of health services, with many of the survey respondents indicating less frequent visits to health practitioners and hospital emergency rooms.

For a significant number of participants, basic income purportedly proved to be transformational, fundamentally reshaping their living standards as well as their sense of self-worth and hope for a better future.

The majority of those employed before the pilot reported working while they were receiving basic income. Many reported moving to higher paying and more secure jobs.

Those working before the pilot reported even greater improvements on some measures of well-being than those who were not working before.

More information at:

Laurie Monsebraaten, “Did basic income drive people to quit work? Not according to a Mac study of recipients“, The Hamilton Spectator, March 4th 2020

The Time is Now for the Yang Gang

by Karl Widerquist | Feb 27, 2020 | Opinion, The Indepentarian

With Andrew Yang out of the presidential race, the time is now for the Yang Gang to decide whether and how to build on their accomplishments. I think the Yang Gang should take heart for all they’ve done and realize that they have the power to transform their campaign into an effective long-term movement for the Humanity First platform as a whole and/or for its flagship proposal, the Universal Basic Income (UBI), in particular. Here are my thoughts on the how to do that:

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Basic Income March in New York, 2020, with subliminal message, “join the movement”

Why the Yang Gang should be proud of their accomplishments:

The Yang Gang built a huge movement for a very unusual set of ideas in a very short time. I thought the US UBI movement had grown a lot in the several years before Yang’s campaign but that was nothing compared to the growth it’s had since Yang got in the race. Many political movements make effective use of political campaign text messaging in order to drum up support from the public and inform their supporters of their activities and the latest news regarding the campaign.
The movement affected the national and international dialogue at the highest levels.
It will have lasting positive effects. I can’t prove this, but my personal experience convinces me.

I think that a very large number of Yang Gang members are committed to continuing to work on UBI & other Humanity First ideas in the long term, and now is the time to decide how-while the movement has momentum and local and national Yang Gangs are assembled.

https://global-uploads.webflow.com/5d5b16153889db2c3695fbad/5dc1fbbe478dfed5f8f39f87_DSC09068.jpg

Basic Income March in San Fransisco, 2020

The most important things to decide right now are the things the Yang Gang can do as a group:

Build on the existing enthusiasm now while it’s still hot. Try to keep as much of the gang together as possible. Transform all those local Yang Gangs into a network of local groups working either for UBI specifically or for the Humanity First platform in general.
I supposed you could keep the name Yang Gang, but you might want to pick a new name like “the UBI Gang,” “the Humanity First Gang,” “Forward Humanity,” etc. I don’t know whether Yang would be allowed to give some of his leftover campaign funds (if there are any) to whatever movement grows out of his campaign or whether people would be willing to contribute to a long-term movement like they did for the Campaign. But it would be great if some of them did.
I’d most like to see the Yang Gang do so by becoming a political movement for UBI. There’s already group called “Income Movement” committed to doing that. They organized the UBI march in 30 cities worldwide last October. It’ll be bigger this year. They’re doing more than just that, and they can do lots more if dozens or hundreds of local Yang Gangs join up with them. I’d love to see every local Yang Gang become a local chapter of the Income Movement with every member supporting it as strongly as they supported Yang (both with time and with money). Obviously, that won’t happen but if one-tenth of the membership of one-tenth of the local Yang Gangs does this with one-fourth of the effort, they will greatly multiple the size and influence of the Income Movement, and they will keep the US UBI movement growing.
Diane Pagen led local NYC UBI group that grew into the Income Movement. It’s also the most successful local UBI group in the USA so far. She might need help, or she might have advice for people trying to replicate Basic Income NYC‘s success.
There’s also a Basic Income-Based Super Pac. I bet the Yang Gang would be useful working with that movement.
There’s also a UBI caucus of dozens of candidates running on UBI platforms across America right now-mostly in House and Senate races. I bet there are dozens or even hundreds more running for lower offices. I bet the UBI Caucus needs lots of volunteers working in lots of different ways, and the coordinated effort of all the former Yang Gangs across the country would help enormously.
Some local Yang Gang’s might want to switch as a group to be the Gang of their local member of the UBI caucus. This will probably be the best strategy for Yang Gang’s located in places with a caucus member who is both trustworthy and a viable candidate. It will require some research.
I don’t know whether the Income Movement, the Pac, & the caucus should work together, but that’s something to look into.
I’m less enthusiastic about converting the Yang Gang into a long-term movement for the whole of the Humanity First platform. It might be worthwhile, but my guess is that it’s harder to keep a group together around a broad platform across many different issues than it is to organize groups dedicated to action on single issues.
Probably the Yang Gang will splinter into several different groups working for different aspects of the Humanity First platform in different ways. That’s OK. That’s a good thing. A collection of smaller groups doing parallel work has some advantages over one larger-group.
Whatever happens, the first step is for the local Yang Gang’s to meet and talk over their ideas of how to move forward from here.
Finally, I hope any UBI move movement that grows out of the Yang Gang presses for a much more ambitious UBI: especially the UBI proposal should be more than $1000 per month and includes children. I got the impression Yang’s version was a pre-compromise tailored for the political climate of the 2020 presidential election (and it worked well). But a long-term movement should work toward an exciting, ambitious goal, and compromise down from there only if it’s essential to getting something passed.

Assembled in America

Things Yang Gang alumni can do individually:

If you like working on political campaigns, research the UBI caucus, pick a candidate you can trust, and work as hard for their campaign as you did for the Yang Gang even if no one else from your local gang is doing it. The only candidate I know well enough to recommend at this point is James Felton Keith, who’s running to represent Harlem in the House of Representatives. I don’t know what he calls his volunteers-the Keith Gang, the JFK Gang, or whatever-but I bet they can use a lot more volunteers. Scott Santens has already joined the Mike Broihier campaign for Senate in Kentucky. Broihier has strongly endorsed UBI and other elements of Yang’s platform.
Volunteer and/or donate money to organizations like USBIG and BIEN. They are very different from the political activist groups mentioned above, but their role in the movement is just as important. They work on education and information about UBI. They are tax-exempt non-profits. (Political activist groups are subject to taxes.) The world needs lots of education and information about UBI. These organizations need lots and lots of volunteers and financial donations. Right now, BIEN is extremely short on reporters for Basic Income News. They could use like 100 reporters, but one new dedicated reporter would be enormously valuable. If you wrote one objective, just-the-facts story about UBI per week you’d quickly become one of the most valuable volunteers in the organization. I was the news editor of USBIG and then BIEN for a total of about 15 years. Doing so made me an expert on UBI. It indirectly led me to publishing at least three books and to the opportunity to speak about UBI on all six inhabited continents-including meeting heads of state one day and people living in shantytowns the next (in both Brazil and Namibia). It’s a thankless job on a day-to-day, but to me, it proved to be a great job in the long run. If your skill-set is more toward this kind of thing than activism, do it.
You could do what I did when I got enthused about UBI. I was a sleeper-cell of one for 16 years. I completed high school, got a college degree, got a PhD, and only then started working directly on UBI. I’m not really an activist, I specialize in “primary research” in both social science and philosophy. It won’t be the best strategy for most people, but that’s how I was able to give my best contribution.
It’s OK to leave UBI to others and work to stop the environmental collapse or to reunite families separated at the border, etc.
Do something else for UBI that I haven’t thought of. You might come up with some idea that everybody thinks is crazy. To be level-headed you have to realize that they’re probably right but because they could be wrong and because you feel so strongly, you should give yourself permission to follow up just in case. Even if 9-out-of-10 people in that position are wrong, you never know if you’re that tenth person with that great out-of-the-box idea.

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Yang Gang Supporters

Little thoughts about how to make whatever you do work:

Don’t waste any time thinking about which remaining presidential candidate the Yang Gang should endorse. Yang’s platform is too unique and Yang Gang members are too individualistic to make it possible for them to move as a useful block to another presidential campaign. Yang will probably endorse someone, but that’s his business.
Don’t put any effort into organizing for Andrew Yang’s next political campaign unless and until he asks you to do so. His next campaign will probably be local and probably not where you live. Even if his next campaign is national, it probably won’t start for at least a year, maybe several years. So, any effort for possible-future-candidate Yang is likely to be wasteful and frustrating.
Accept that the UBI movement won’t grow as fast next year as it did last year. Last year was a phenomenon. Growth will probably slow before it picks up again. That’s OK. That’s how long-term movements grow.
The effort to build on the Yang Gang’s accomplishments requires acceptance that movement for UBI and/or the Humanity First platform is long-term.
Believe in the ultimate success of the movement. Why? Not because anyone can actually predict the future, but because hope will make you happy. Despair will make you sad and less effective. However…
Don’t expect any progress in your lifetime. Assume the movement will succeed after you’re dead, and take any progress you see at any time as a bonus. Why? Because getting bonuses makes you happy. Every good piece of progress will exceed your expectations. Having dashed expectations makes you sad and frustrated. This attitude has really worked for me for the years. I’ve expect nothing, but I’ve watched the movement grow every year since I started paying close attention the 1990s.
Don’t expect anyone else to do anything for the movement. Don’t even expect people to follow through on their promises. Take anything anyone else does as a bonus. Why? Because get bonuses will make you happy. Being let down will make you sad and frustrated. If you expect 20 people and two show up, you’ll be disappointed. If you expect nobody, and two people show up, you’ll be like “Wow, two people!”
Accept the individuality of Yang Gang alumni. People will choose different strategies. Some will work on political issues that have nothing to do with the Humanity Frist platform. Others will do something nonpolitical, like care for relatives who need care. Others will work for something to do with Humanity First in ways that you’re convinced will fail. Don’t waste time telling them how wrong they are for not doing what you’re doing. You can give them quick advice, like I have in this blog post, but if they don’t take it, wish them well and hope you’re wrong. The belief that there’s only one right path is step toward becoming a cult, and becoming a cult is a one-way ticket to political irrelevance.
The UBI movement has so-far escaped becoming a cult because it has no party line. People support different sizes of UBI, different ways to resource it, and different strategies to promote it. People who are turned off by one person’s argument for UBI might be brought in by someone else’s conflicting argument for or version of UBI. If people start in-fighting and kicking others out for supporting the wrong version of UBI, we’ll stop growing & start shrinking.
The Yang Gang has to avoid becoming a cult of personality, a cult of the platform, or a cult of some specific version of UBI. Luckily, it’s easy to avoid becoming a cult: respect each other (see above).
The idea that people should respect each other might seem obvious, but there are a lot of people in the UBI movement who can’t seem to do it. I know people who’ve been working on UBI for 20 years, but their work seems to consist mostly of telling the rest of the movement that they’re doing the wrong thing. Lighting a candle is better than cursing the darkness, and it’s even worse to curse people who light candles for not doing enough.
Obviously, thank others for what they do. As obvious as that is, I haven’t done it enough. My thanks and apologies to everyone.
Finally, don’t take my work for anything. Everything I say is on an IMHO basis. Evidence-based reasoning is our greatest strength.