by Kate McFarland | Aug 23, 2018 | News
Photo: Newberry Building in downtown Stockton, CC BY-NC-SA 2.0 Onasill ~ Bill Badzo
A new discussion paper, released on Monday, August 20 by Mayor Michael Tubbs and the Stockton Economic Empowerment Demonstration (SEED) team, reveals details of the design of the basic income pilot planned for launch next year.
Stockton Mayor Michael Tubbs
Following in the heels of Silicon Valley’s Y Combinator, the mid-California City of Stockton announced in October 2017 that the municipality was readying a privately financed basic income pilot.
The project arose out of collaboration between Mayor Michael Tubbs and the Economic Security Project (ESP), an initiative founded in California in the previous year to support work related to basic income and cash transfers in the US.
Called the Stockton Economic Empowerment Demonstration or “SEED”, the program will provide approximately 100 Stockton residents with unconditional cash payments of $500 per month for 18 months.
ESP supplied a $1 million foundational grant to launch SEED, which would be followed by major contributions from such donors as the Future Justice Fund, the Goldhirsh Foundation, tech entrepreneur Serkan Piantino, and Facebook co-founder Andrew McCollum.
To prepare a study of the effects of the cash payments, the project has recently enlisted the assistance of two scholars: Dr. Stacia West of the College of Social Work at University of Tennessee, who gained press in the basic income community last year for her study of Dolly Parton’s My People Fund (which provided no-strings-attached cash support to wildfire survivors), and Dr. Amy Castro Baker of Social Policy and Practice at the University of Pennsylvania.
A new discussion paper from SEED, published on August 20, 2018, lays out newly disclosed details about the process of selecting and enrolling participants. The design is one that has been informed by feedback received from Stockton residents, consulting researchers, and others since the project was unveiled.
Seeding SEED (Participant Selection)
As described in the discussion paper, participants in SEED’s basic income trial will be chosen from the population of legal adults (at least 18 years of age) who reside in any Stockton neighborhood in which the median household income is no more than $46,033, the median household income of the city as a whole. The latter provision is intended to allow the project “to be inclusive of residents across the city while ensuring that resources reach those who are in need”.
Although eligible participants must reside in a neighborhood in which the median income is at or below the city’s median, there are no limits on the individual or household income of participants. An adult resident earning above $46,033 is still be eligible to participate in SEED.
Invitations to participate in the basic income demonstration will be sent to 1000 households randomly selected from neighborhoods meeting the income condition. Approximately 100 recipients will then be chosen at random from those who reply to the invitation and give consent to participate. Those who are not selected will be eligible to join the control group. Members of the control group will share the same type of information with the researchers (e.g. information about their financial security, health, and well-being), and they receive compensation in cash for their participation in supplying data, but they will not receive the $500 monthly income.
The invitations are to be mailed by January 2019, with first payments anticipated in February.
Project Assessment
Lead researchers West and Castro Baker will publish a pre-analysis plan in October, which will present the study’s methodology in depth.
But SEED’s latest discussion paper does provide a few new details: the project will examine outcomes including “financial security, civic engagement, and health and wellness” through a combination of surveys, interviews, and focus groups, and the research team will compare outcomes among the cash recipients to those of a control group (which, as mentioned above, will be composed of others from the population of eligible participants).
Although SEED is now to include a controlled experiment, the project still calls itself a “demonstration” instead of an “experiment”, and this not due (merely) to the attractiveness of “SEED” as an acronym rather than “SEEE”; the generation of stories and anecdotes remains a core purpose of SEED.
As also described in the recent discussion paper, Mayor Tubbs and his team aspire to produce stories about how a modest guaranteed income impacts individual lives, as well as how a social experiment impacts a city.
The demonstration will track the individual experiences of a small group of participants who volunteer to speak publicly about the effects of the program on their lives. Artists will also assist in delivering the narrative. For example, the paper indicates that a public event featuring poetry and spoken word performances is to be held at the conclusion of the project.
In addition to telling the stories of individual recipients, the SEED team intends to set the project “in a larger framework for a broader vision for a new social contract”, presenting it “as part of the larger story of Stockton, a trailblazing city on the rise”.
Motivation
The Stockton project is motivated by the belief that an unconditional basic income is “one of the most effective tools” to reduce poverty and mitigate economic insecurity. SEED states, “We are motivated to test a guaranteed income in Stockton because we believe it is to combat poverty. Unconditional cash can supplement and enhance the current social safety net.”
Inspired by Dr. Martin Luther King Jr.’s endorsement of a guaranteed annual income, Mayor Tubbs developed an interest in basic income as part of a broader program to help his city recover from economic devastation. Hit badly by the economic collapse of 2008, Stockton was declared “America’s most miserable city” by Forbes in 2011 and filed for bankruptcy in 2012, becoming the largest US city to have done so at the time (although soon surpassed by Detroit).
Tubbs was elected to Stockton’s City Council in 2012, at the age of only 22, and in 2016 defeated incumbent Anthony Silva to be elected as mayor of the city of 300,000 — the youngest mayor in the city’s history and the first African American.
Since assuming office, Tubbs has pursued a range of initiatives to combat the effects of economic devastation. He led Stockton in creating a Housing Mitigation Fund to reduce financial risk for landlords who rent homes to the homeless, for example, and he secured a philanthropic grant to launch another privately funded initiative, Stockton Scholars, which provides scholarships to help Stockton high school students attend college or university. Mayor Tubbs also spearheaded a partnership with the city and Advance Peace, a controversial program that aims to reduce gun violence by providing cash assistance and other personal support to those most likely to commit violent crimes. In addition to heading SEED, he is currently constructing a re-skilling program to help close the skills gap between employers and Stockton job-seekers.
It is against this background that SEED declares it is “taking place within a larger collective impact model to build a world-class cradle-to-career pipeline of education, public safety, and opportunity”.
A “Basic Income” Trial?
Past articles in Basic Income News have stressed that many existing so-called “basic income” experiments are constrained in ways that call into question their resemblance to a universal and unconditional basic income. In many cases, for example, participants have been selected only from pools of individuals with low incomes (Ontario, Y Combinator), who are unemployed (Finland), or who are currently receiving other welfare or social assistance benefits (The Netherlands, Barcelona). In some cases, moreover, the cash payments are reduced with earned income (e.g. Ontario, The Netherlands).
The design of the Stockton pilot is notable in that there is no requirement that individual participants be low-income, unemployed, or receiving government assistance. As mentioned above, participants must reside in neighborhood with an average income at or below the city median; however, participants themselves needn’t have an income below this level (e.g., in principle, invitations to participate could be sent to affluent investors who has purchased homes in low-income Stockton neighborhoods with the hope of later turning a profit).
Additionally, the $500 payments will not be clawed back with additional earned income. That said, however, other benefits might. SEED is currently working with government benefits agencies to determine how the unconditional cash grants will impact recipients’ eligibility for means-tested benefits. Under current US policy, such a $500 per month of “reasonably anticipated income” would generally need to be reported as household income. However, Tubbs hopes to secure waivers for participants to prevent or mitigate potential loss of benefits during the trial. SEED states that it will provide potential recipients with detailed information about the effect of participation on public benefits, as well as providing opportunities to consult with benefits eligibility counselors prior to consenting to join the project.
More Information
Official Paper: “Our Vision for SEED: A Discussion Paper” (August 20, 2018).
Official Website: www.stocktondemonstration.org.
by Guest Contributor | Aug 17, 2018 | Opinion
Written by: Alfredo Roccia
We talk so much about freedom.
-Ingmar Bergman, The passion of Anna
As argued by Karl Marx, “it is not the consciousness of men that determines their existence, but, on the contrary, their social existence determines their consciousness.”[1] Despite acknowledging the importance of external factors on men’s freedom, Jean-Paul Sartre did not share the Marxian thesis, however, asserting that “we have the war we deserve,” namely man, “being condemned to be free,” is only “responsible for himself,” regardless of their surrounding environment.[2] Therefore, according to the French philosopher, human beings have the decisive possibility to give meaning to their existence in absolute freedom, without any influence from pre-established principles.
However, what do we do when the future we want is precluded by precarious economic conditions or a staleness social system? What if we had to settle for what Martin Heidegger called “inauthentic” existence rather than pouring all our abilities out?
It is on the fine line between what Marx and Sartre exposed, that we could position the Universal Basic Income (UBI) and its significative impact on humanity’s freedom in a future scenario.
Although the reasons-be them of political, economic and social nature-which UBI advocates opt for, we could essentially group them in three sets of problems: (1) the current levels of unemployment, (2) the work threatened by the new advent of machines, (3) the current social care system as not sufficient for twenty-first century needs.[3]
However, the aspect of UBI which has won me over, besides the financial security that would result, is the freedom of choice that UBI could generate or at least reinforce in modern society. Also, those who Need Money Desperately might find this a huge relief. It can also pave way for their financial planning because now they have a recurring income to depend on.
A freedom that would allow everyone to express and legitimize his or her own talent through any job or activity without any kind of diktat from the market or society.[4] I personally consider this aspect deeply interesting since today, more than ever, human beings seem to have lost the ability to say “no,” being slaves of constant financial insecurity, trapped in not always satisfying careers, stressful working hours and short leisure time.[5]
Indeed, how do we define leisure time? Would it be perhaps a vacation every month, running away from the working stress, an apparent getaway from an unsatisfying life? Or maybe focusing on our own passions and talent just during weekends, because of the scarce free time we have, stolen from a job we do not love-therefore constantly working, ignoring the need for a vacation?[6] I believe it is clear how greater financial security would consequently enable a greater possibility of choice, less influenced by external factors, allowing our creativity to run riot, giving us greater flexibility within our lives.[7]
Staying in the creative sphere, it is clear how UBI could have a significant weight within the work of artists. Namely, it could help those who choose to devote themselves to art, despite sometimes agreeing to accept jobs not totally in line with their ambitions or realizing works whose typically commercial nature is imposed by the market and the need of paying the rent by the end of the month, rather than their artistic will.
Not being technically an artist, but feeling very tied with disciplines like photography, music, cinema or literature, I quite sympathize with those persons who, not being able of practice their own talent freely, are forced to follow careers alien to their pure artistic ambitions. However, thanks to current web platforms like YouTube, many young artists-among which also poets and philosophers, categories perhaps more penalized today than in the past from the job market-can display their own knowledge and talent through video tutorials, lessons, performances, etc., that are free and available to everyone. But, how can they finance all of this, since the working time required for writing, shooting, editing, and post-producing a very short video requires quite a lot of time? There are ways to make money from YouTube, such as by growing a large following and monetizing your videos. For small channels, it might be worth visiting Venturebeat to learn about buying YouTube subscribers. That could help the channel to grow, eventually leading to the channel making some money. However, there are other ways too. Crowdsourced funding platforms like Kickstarter, Indiegogo, Patreon (just to mention some), can help young creative minds by promotional campaigns for financing a single project (see Kickstarter) or by subscriptions that provide an income on a recurring basis or per work of art, in return of special contents or rewards (see Patreon).[8] Sounds familiar, doesn’t it?
So, it seems a kind of artistic basic income is already here and works quite well: many of these young artists can support their expenses with the help of their own backers, changing also the direction to their own career. It is common to see some of them quitting their job or devoting themselves to that virtual activity indeed.[9]
For instance, a case that personally surprised me and which I consider significative is that of a young YouTuber, Paul Davids, a Dutch musician who has shared video lessons about guitar and music theory since 2009.[10] Later, Paul joined Patreon, proposing special contents for his patrons, in exchange for a subscription. On February 20, 2018, Paul published a video telling his followers that he quit his job as a guitar teacher so he could devote himself to what he truly loves: offering high-quality videos, investing his time to improve his guitar skills and making more music.[11] It is interesting to note how Paul decided to quit that activity on which many musicians are “forced” to make do, namely scholastic or private teaching.[12] A difficult choice, but he thinks it could bring him more freedom to “take on bigger projects requiring more time.”[13]
Another example is the Patrick (H) Willems channel, registered on YouTube since 2011 and dedicated to short movies production and video essays about cinema. On a video published on May 7, 2018, the founder Patrick Willems shared the ambition of financing his works through Patreon community, so as to update his working tools, acquire a proper studio, and become more independent. He stated that he was grateful for getting as far as he could using equipment similar to avid media composer first editing software, audacity, and other free resources.
[14]
Those of Paul and Patrick are only some of the hundreds of cases in which young YouTubers, by the funding of Patreon or similar services, can finally pour their own ambitions out through a greater financial security.[15]
But, how long will all of this last? Can we really think that platforms such as Patreon could support young artists forever, behaving as a proper basic income?
Actually, it is important to stress how crowdsourced funding could not replace any form of UBI because of their fundamental differences. It is true how they allow people to collect money through crowdfunding and perhaps even more than what a person could get with any current experiment involving UBI. However, crowdsourcing is breaking what is probably the first rule of UBI, namely its universality. Platforms such as Patreon are not open to everybody in so far as creators need to offer content in return for being supported by their community. Poor or “uncreative” people are evidently excluded from this policy. Moreover, those platforms are usually made by private companies and run for private purposes: they could stop anytime, evolve in something totally different or even close the business for any reason. This could really affect people from planning their own career grounding on a variable amount of money they can get every month, while UBI would be potentially perpetual as well as more inclusive.
However, despite being its surrogate, crowdsourced funding is the proof that the UBI concept can be extremely useful for young artists, at least at the beginning of their career. Moreover, it could allow them to go beyond the current constraints which those platforms implicate-not always making frequent content can be an attractive thing for videomakers-as well as to exceed the rather narrow frame of YouTube.
Perhaps, we should start with what those platforms are representing at the moment and try to mutate the modern perception we have about work and the current values system which characterize it. A greater freedom for artists could mean a boost of creation of those “things that enable market production but lie outside the monetary system,” in a structure in which UBI would have been seen “as capital, and not just money,” allowing a cultural renaissance and the production of new values for an invigoration of the twenty-first century economy.[16]
About the author:
Alfredo Roccia is an Italian-born architect working in London, UK. He studied architecture at the “Università degli Studi di Napoli Federico II”, where he graduated in 2012. In the past five years, he has worked in Italy, the Netherlands and the United Kingdom, where he currently lives.
[1] Karl Marx, preface to A contribution to the critique of Political Economy, trans. Nahum Isaac Stone (Chicago: Charles H. Kerr & Co., 1904; initially published in German as Zur kritik der Politischen Oekonomie in 1859), 11–12.
[2] Jean-Paul Sartre, Being and Nothingness, trans. Hazel E. Barnes (New York: Philosophical Library, 1956; initially published in French as L’Être et le néant in 1943), 553–5; Jean-Paul Sartre, Existentialism and Humanism, trans. Philip Mairet (1948; repr. London: Methuen, 1960; initially published in French as L’Existentialisme est un humanisme in 1946), 29.
[3] For a deepened analysis about UBI and its more recent applications consult: Philippe Van Parijs and Yannick Vanderborght, Basic Income: A radical proposal for a free society and a sane economy (Cambridge, MA: Harvard University Press, 2017); Guy Standing, Basic Income: And how we can make it happen (London: Pelican, 2017); Amy Downes and Stewart Lansley, eds., It’s Basic Income: The global debate (Bristol: Policy Press, 2018).
Various are the forms that UBI is assuming in current debates and during tests adopted by some countries. However, herein I will refer to its most “pure” version, that is “an unconditional, automatic and non-withdrawable payment to each individual as a right of citizenship.” Malcolm Torry, “History and the contemporary debate in the UK” in Downes and Lansley, Basic Income, 123–4.
[4] “Somehow release those who are technically and imaginatively proficient from the restraints imposed by the business system and there will be unprecedented productivity and wealth in the economy.” John Kenneth Galbraith, A history of Economics: The past as the present (London: Hamish Hamilton, 1987), 172. In this passage, Galbraith summarizes the thought of the economist and sociologist Thorstein Veblen as he made explicit in his Theory of business enterprise (1904).
[5] Matt Zwolinski, “The libertarian case for universal basic income” in Downes and Lansley, Basic Income, 152. According to Society for Human Resource Management (SHRM), “nearly two-fifths (38%) of U.S. employees reported that they were very satisfied with their current job, whereas a greater proportion (51%) stated they were satisfied but to a lesser degree, indicating that the majority of U.S. employees are to some extent satisfied with their present job role.” SHRM, “2017 Employee Job Satisfaction and Engagement,” accessed May 28, 2018, https://www.shrm.org/hr-today/trends-and-forecasting/research-and-surveys/Documents
/2017-Employee-Job-Satisfaction-and-Engagement-Executive-Summary.pdf.
[6] John Maynard Keynes already dealt with problems within a future “age of leisure” in his “Economic possibilities for our grandchildren (1930),” in Essays in persuasion (New York: Harcourt Brace, 1932), 358–73.
[7] “We need to make the case that entitlement to an income and a dignified life should not be dependent on working for an employer, nor conditional on searching for employment. A basic income would free people from this compulsion, granting them much fuller freedom to direct their lives, engage in civic activity, or enjoy leisure time.” Avi Lewis and Katie McKenna, “A down payment on a new cooperative economy” in Downes and Lansley, Basic Income, 72.
[8] cf. GoDaddy Inc., “Top 20 crowdfunding platforms of 2018,” by Erick Deckers, last modified February 27, 2018, https://www.godaddy.com/garage/top-20-crowdfunding-platforms/.
[9] In 1969 Nixon administration already launched the “Family Assistance Program (FAP),” a welfare reform proposal whose unexpected results showed an increase of the time devoted to study or artistic activities by people involved in the experiment. cf. Jacobin, “Nixon’s Basic Income Plan,” by Rutger Bregman, accessed May 28, 2018, https://www.jacobinmag.com/2016/05
/richard-nixon-ubi-basic-income-welfare/.
[10] Paul Davids, YouTube channel, accessed May 28, 2018, https://www.youtube.com/user/Luapper/about.
[11] “Giving guitar lessons, especially private lessons, they are very time-consuming and with YouTube I get so many cool and awesome offer, all of the things I simply can’t do because I don’t have the time.” Paul Davids, “I’m Quitting,” February 20, 2018, YouTube video, 5:29, https://www.youtube.com/watch?v=6nruh9SSXoQ.
[12] “For many musicians…teaching is a way to pay the rent, to pay for food and everything else. When you don’t have many gigs, you want to have a secure income…but nowadays YouTube and everything around…can provide for those things for me.” Davids, “I’m Quitting.”
[13] “I’m very relieved to quit teaching. From now on I can really focus on my channel, work harder for my videos, accept more cool side projects and hopefully play in more bands.” Davids, “I’m Quitting.”
[14] “In the past year the channel finally got to the point where I can afford to do it full-time…just making enough to live off of. So, there isn’t much money left to put into the budgets for the video themselves.” Patrick (H) Willems, “Upgrading Our Videos (Patreon Announcement),” May 7, 2018, YouTube video, 3:48, https://www.youtube.com/watch?v=L6A57-1JteA&t=0s&index=2&list=WL.
[15] “We’ve got…a hundred and sixty-nine thousand subscribers. So, imagine if every one of them pledged $1 a month, it would be crazy!” Willems, “Patreon Announcement.”
Following the live streaming video platform Twitch, other companies such as YouTube and Facebook have recently launched the option of sponsoring videomakers. Artists make more money the more followers they have which is why many of them use one of the 22 Best Sites to Buy Twitch Followers to increase their profits. cf. Business Insider UK, “Twitch raises incentives for creators,” by Kevin Gallagher, accessed May 28, 2018, https://uk.businessinsider.com/twitch-raises-incentives-for-creators-2017-4?r=US&IR=T; CNBC, “Facebook is opening up ways for video creators to make money,” by Michelle Castillo, last modified March 21, 2018, https://www.cnbc.com/2018/03/19/facebook-opening-up-ways-for-video-creators-to-make-money.html; Variety, “YouTube Kills Paid Channels, Expands $4.99 per Month SponsorshiModel,” by Janko Roettgers, accessed May 28, 2018, https://variety.com/2017/digital/news/youtube-kills-paid-channels-1202563599/.
[16] Roope Mokka and Katariina Rantanen, “Universal basic income for the post-industrial age” in Downes and Lansley, Basic Income, 65–6.
by Kate McFarland | Aug 12, 2018 | News
The Chicago Tribune, the most-read newspaper in the Chicago area, has come out in opposition to Alderman Ameya Pawar’s proposal to use the city as a test site for basic income.
Earlier this year, Pawar proposed legislation to create a task force to investigate a pilot study in which 1000 Chicago families would receive an unconditional basic income of $500 per month. Pawar’s resolution is still pending approval from the Chicago City Council and Mayor Rahm Emanuel. The Alderman has not proposed a specific means to finance such a pilot project, and has indicated in interviews that he envisions the project being supported at least in part through private philanthropy.
In an editorial published on August 6, the Tribune foregrounds the issue of cost in rejecting Pawar’s idea for a municipal basic income pilot study — or, all the more, a full-fledged municipal basic income:
“Pawar’s plan suffers from a number of flaws, the most obvious being: How would Chicago pay for it? Chicago has huge unfunded pension obligations, a lousy bond rating and rising property taxes. This pilot program would cost at least $6 million a year. When asked on WTTW’s ‘Chicago Tonight’ where the money would come from, Pawar had no answer.”
“Even if the Chicago City Council could find the money and the project proved a great success, what then? Expanding to include everyone — the term is ‘universal basic income,’ remember — or even a significant share of Chicagoans would be prohibitively expensive.”
In the editorial, the Tribune does not reject the idea of basic income itself, but deems it financially infeasible on the city-level and politically infeasible on the national-level:
“Realistically, given the sums required, a UBI would require a new federal initiative, which is not going to come from this president or this Congress. [Chicago] City Hall would be wiser to look for ways to help raise incomes among working-class and poor residents without taking on commitments it can’t afford.”
With regard to alternative strategies to raise incomes of the poor and working class, the Tribune suggests investment in and deregulation of the private sector (“There is no substitute for a thriving private sector to generate employment and boost incomes”), job-training or apprenticeship programs, and an expansion of affordable housing.
The Editorial Board concludes on a somewhat ambivalent note concerning basic income experimentation, as a poor allocation of money and priorities at present, but as something potentially worth pursuing if and when it becomes affordable:
“If Chicago becomes economically healthy and fiscally sound, it will achieve far more benefits for hard-pressed Chicagoans than Pawar’s pilot possibly could. And who knows? Prosperity-driven increases in city revenue might make ideas like his affordable.”
The Chicago Tribune has no official political alignment. Wikipedia classifies it as “conservative” (right-wing), while websites purported reporting on media bias have placed it as “left-center” (Media Bias/Fact Check), “center” (AllSides), and “leans conservative” (Boston University Libraries). The newspaper endorsed a third-party candidate, Libertarian Gary Johnson, in the 2016 US Presidential Election.
Reference
Editorial Board, “Instead of a Universal Basic Income for Chicagoans…,” Chicago Tribune, 6 August 2018.
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Reviewed by Dawn Howard
Photo: “Chicago” CC BY-NC-ND 2.0 Peter Miller
