Crowdsourced funding as a ‘basic income’ for artists

Crowdsourced funding as a ‘basic income’ for artists

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.

US: Chicago Tribune against Basic Income for City

US: Chicago Tribune against Basic Income for City

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.

***

Reviewed by Dawn Howard

Photo: “Chicago” CC BY-NC-ND 2.0 Peter Miller

US: Poll of “Left Agenda” Examines Support for Basic Income

Photo: “Fight for $15” Minimum Wage Protest, CC BY-SA 2.0 The All-Nite Images

 

A recently released survey shows support for an income-tax-funded basic income from people of color and the working class, but opposition from college-educated white Americans.

The left-wing think tank Data for Progress included a question about universal basic income (UBI) in Polling the Left Agenda, an opinion survey recently conducted to gain insight into the political viability of potential “big-ticket” progressive proposals.

The think tank hopes to remedy a lack of data concerning voter support for such policies, policies that politicians might be inclined to dismiss as too radical to gain sufficient support from the electorate:

“Because the policies that are exciting progressive voters have not yet caught the attention of most pollsters, debates over how ready the broader electorate is for a more progressive Democratic platform have been reduced to mere speculation. We set out to change that … We chose policies that haven’t been polled often, but could be central to the 2020 Presidential election.”

Policies considered in the poll included not only UBI but also a federal job guarantee, a stakeholder grant or “baby bond”, reparations for black Americans, and a 90 percent marginal income tax on millionaires, among other proposals.     

In collaboration with YouGov Blue (a division of market research organization YouGov that serves clients from the political left), Data for Progress interviewed 1515 eligible US voters between July 13 and 16, 2018. Respondents were randomly selected and represented the full US political spectrum, not only progressives (e.g. about 44 percent of respondents who voted in the 2016 Presidential election backed Republican nominee Donald Trump).

 

Querying Support for UBI

Although the survey did not explicitly use the term, UBI was the intended target of one of the survey’s ten policy questions:

Would you support or oppose giving every American a monthly check from the government of $1,000, which would be paid for by raising taxes on individuals earning more than $150,000 a year?

Overall, 37 percent of respondents supported the policy (23 percent strongly and 14 percent “somewhat”), while 43 percent opposed it (31 percent strongly), and the rest remained neutral or undecided. However, as discussed below, net support for the policy was observed within some demographic groups, such as Blacks, Hispanics, women, eligible voters under 45 years of age, and those without any college education.

It bears note that the questionnaire did not query respondents about UBI per se but about a specific type of UBI: one of a certain specified amount (US$1000 per month) and funding mechanism (a higher personal income tax for individuals making more than US$150,000 per year).

Because of this, we must be cautious in making comparisons between the Data for Progress poll and other recent surveys of Americans’ opinions on UBI, such as those conducted in 2017 by Ipsos, Morning Consult, or Gallup, or the poll commissioned by the Economic Security Project in 2016. None of the latter polls included reference to a specific amount or funding mechanism in initial questions about UBI (although some proposed specific sources of funds in follow-up questions). At the same time, included other extraneous qualifications (e.g. Gallup’s poll asked specifically about a UBI introduced “as a way to help Americans who lose their jobs because of advances in artificial intelligence”). Thus, although ostensibly all surveys about Americans’ attitudes UBI, these studies cannot be said all to have measured the exact same thing.

Of particular significance is the fact that the Data for Progress questionnaire asked specifically about a UBI funded by a personal income tax. Data from earlier surveys already indicate that support for UBI decreases when respondents are told that the program would be accompanied by higher taxes.

A 2017 survey of British adults, for example, found that 49 percent of respondents would support “a regular income paid in cash to every individual adult in the UK, regardless of their working status and income from other sources”, but support dropped to 30 percent if the policy would entail an increase in taxes. Similarly, as Jurgen De Wispelaere has pointed out, a government-sponsored working group in Finland “found that Finnish support for basic income decreased quite radically once questions about the amount of basic income are paired with corresponding questions about the taxes needed to fund it”. And a 2016 Canadian poll found 67 percent of respondents in favor of a guaranteed income of C$30,000 per year, but only 34 percent said they themselves would be willing to pay more in taxes to support a government-sponsored guaranteed income.

Past American surveys have shown similar results. In the aforementioned Gallup poll, 48 percent of individuals surveyed supported “a universal basic income program as a way to help Americans who lose their jobs because of advances in artificial intelligence”. However, out of those who expressed support for the program, only a minority (46 percent) replied affirmatively to a follow-up question asking whether they would be willing to pay higher taxes to fund it. Moreover, the Economic Security Project study revealed a drop in support for a “base income” from 45 to 39 percent, and an increase in opposition from 35 to 50 percent, after respondents were informed that the program “would be paid for by tax revenues”. Notably in the latter case, the survey respondents were not told specifically that they themselves would have to pay higher taxes.

It is not uncommon to hear American basic income advocates speak of a US$1000 basic income funded in part by an increase in personal income taxes. However, there are other reasons why details are not immaterial. For one important example, note that UBI proponents also frequently cite the popularity of Alaska’s Permanent Fund Dividend (PFD), an unconditional cash payment to all state residents, to argue that the policy could garner mainstream appeal in the US. The PFD, however, is a vastly different program from the description specified in the Data for Progress poll: Alaska’s PFD is distributed annually rather than monthly, closer to US$1000 per year than per month (its amount varies but stood at US$1100 in 2017 and US$1022 in 2016), and funded not from personal income taxes — Alaska is, in fact, one of a handful of US states with no state income tax — but from investment earnings on revenue from oil and other state-owned resources.

I will make one final note on questionnaire wording before turning to examine some results of “Polling the Left Agenda” in more detail: it is also important be mindful of what details are not explicitly noted in the survey question on UBI, such as the fact that the payment is not conditional on work or other requirements. The previously cited Economic Security Project survey found that support also declined when respondents were directly told that receipt of a UBI “is not tied to work or having a job” or that the money “could be used for anything”. Although the unconditionality of the grant is implicit in the description of “giving every American a monthly check”, individuals’ reactions and responses can vary depending one what is made salient and explicit when questioned.

 

Additional Survey Results

Race and Education Level

The UBI proposal received the strongest support from people of color and non-college educated Americans (or “working class” as Data for Progress labels the latter group).

As Data for Progress summarized what it referred to as the “key finding” of its study, UBI “is most popular among working class people of color, followed by college educated people of color” and “net support among working class whites” while being “rejected by college-educated whites”.

Black respondents supported the proposal by a margin of 49 percent to 19 percent (with 33 percent expressing strong support), while Hispanic respondents supported it by a much narrowed margin of 36 percent to 34 percent. In contrast, 47 percent of white respondents opposed the policy (with 35 percent strongly opposing it), while 36 percent supported it. 

Across education levels, the policy proposal received net support only among those with no college education (40 percent in support to 29 percent opposed). Overall, over 40 percent of college graduates strongly opposed the policy. 

Cross-tabulated data tables from Data for Progress.

These demographic trends remain consistent with the results of the 2017 National Tracking Poll conducted by Morning Consult and Politico, which queried over 1400 eligible US voters on their support or opposition to “a proposal in which the government would provide all Americans a regular, unconditional sum of money, sometimes referred to as universal basic income” (see the discussion by Patrick Hoare in a Basic Income News article on the survey).

Political Alignment

The UBI proposal also received majority support from respondents who voted for Democratic candidate Hillary Clinton during the 2016 presidential election, with 35 percent of Clinton voters strongly supporting the policy. (We might here note that, while Clinton herself is sometimes classified as a UBI supporter due to a jettisoned proposal described in her memoir, she opposed UBI during her campaign, and her rejected proposal was for a resource dividend inspired by Alaska’s PFD, not financed by a higher personal income taxes.)

In contrast, less than 17 percent of Trump voters in the survey supported the idea of an income-tax-funded UBI. Indeed, among those who voted for the Republican candidate, 64 percent strongly opposed the policy.

Once again, this result aligns with last year’s National Tracking Poll, which found that 56 percent of Clinton voters supported a UBI, with 28 percent opposed to the proposal. In contrast, only 32 percent of respondents who voted for Trump expressed support for the idea of UBI, while 52 percent expressed opposition. Similarly, the Gallup poll found that only 28 percent of Republican respondents supported UBI as a policy to address technological unemployment, in contrast to 65 percent of Democrats.

Some UBI supporters, being keen to depict the policy as broadly trans-partisan (“not left or right but forward”), might balk at portraying the idea as specifically “progressive” or as a potential part of “the left agenda”. If these recent surveys are a valid measure, however, there is evidence that UBI is indeed an idea that strikes a much greater resonance with America’s left.

Other Demographic Categories

The poll also suggests that an income-tax-funded UBI is more popular among women, younger Americans, and lower-income individuals, and less popular among men, older Americans, and higher-income individuals.

Women displayed a slight margin of net support for the proposal (39 percent to 37 percent), although 10 percent remained unsure, while male respondents rejected the idea 50 percent to 35 percent (with 4 percent remaining unsure).

Additionally, while the policy proposal garnered net support from young voters (in both the “under 30” and “30-44” age groups), it received net opposition from those 45 and older, and nearly half of respondents over 65 strongly opposed it.

Again, these general demographic trends tend to reflect previous survey research, such as the 2017 Gallup poll, which found greater supporter for UBI among female respondents and declining support through each of its four age categories. The National Tracking Poll also revealed stronger opposition from older age groups (especially among those over 65). In the latter survey, however, men were seen to be slightly more favorable to a general UBI proposal than were women.

Finally, the Data for Progress poll showed that lower incomes tend to be associated with a higher degree of support for UBI; while supporters outnumbered opponents among respondents with family incomes under US$40,000 per year, opponents predominated in higher income categories. This finding also remains consistent with other recent studies.

 

Reaction from The Nation

So, then, is basic income a viable progressive proposal? Should Democrats back the idea in the 2020 election? Journalist Clio Chang is one commentator who believes that the survey results do indeed suggest an affirmative answer, as she writes in The Nation, the popular American progressive political journal:

“[S]ome sort of cash welfare should be part of the progressive agenda, not in small part because it would help blow up the racist idea that benefits should be tied to work and finally kill Reagan’s welfare-queen myth. As the polling shows, even the most radically progressive proposals are not the political death sentences that critics would have you believe.”

ONTARIO, CANADA: Project Advisors Oppose Termination of Pilot Study

ONTARIO, CANADA: Project Advisors Oppose Termination of Pilot Study

Photo: Stormy weather in Ontario, CC BY-NC-ND 2.0 Jeff S. PhotoArt

 

Ontario’s guaranteed income pilot has been ended nearly two years early, prompting researchers and advisors who contributed the project to speak out.

On Tuesday, July 31, Ontario’s recently elected Progressive Conservative (PC) government announced the cancellation of the province’s guaranteed income experiment, reneging on a statement made during the campaign that the PC would see the three-year experiment through to its end if elected to form the new government.

The abrupt and unexpected announcement stirred the ire of politicians, anti-poverty advocates, and, not least, program participants themselves. Nonetheless, Lisa MacLeod, who presented the news at a press conference in her capacity as Minister of Children, Community and Social Services, has held her ground, dismissing claims that the PC broke a campaign promise as “fake news” since the party never included a commitment to the experiment in its campaign platform. Her words, however, have left many unappeased and continuing to fight to save the project.

Those who have spoken out again this decision of the PC government’s include several individuals involved with the implementation of the experiment, such as project advisors Hugh Segal and Kwame McKenzie, and at least one researcher who spoke to the press anonymously out of concern for confidentiality.  

 

Former Canadian Senator Hon. Hugh Segal

The Honourable Hugh Segal, former Canadian Senator of the Conservative Party, was appointed as Special Advisor on Basic Income by Ontario’s Liberal government during the project’s initial planning stages. In this role, Segal authored the comprehensive discussion paper (“Finding a Better Way: A Basic Income Pilot Project for Ontario“) that laid the groundwork for the design and implementation of the experiment.

When MacLeod announced the pilot’s early termination, Segal responded with a scathing opinion column in The Globe and Mail, in which he foregrounds the issue of fairness to participants: “These people believed the promise that they would not end up worse off for signing up for the pilot project. They have now been let down badly.”

“[W]hen a party gives its word – as then-Official Opposition leader Patrick Brown gave me in 2016 and PC Party Leader Doug Ford echoed through his spokesperson during the 2018 election campaign – that it would let the pilot project go forward before judging the results […] , this assurance influenced those signing up.”

Segal also addresses the assertion of MacLeod and PC government that the experiment was too expensive to continue: “Looking at the cost of the pilot project is fair enough – but frankly, simplistic. We know that poverty is a perfect predictor of poor health and early hospitalization, bad educational outcomes, substance abuse and problems with the police – all of which cost Ontario billions.”

Drawing a connection to Premier Ford’s key policy goal of ending so-called “hallway health care” (hospital facilities so inadequate that patients must be treated and housed in corridors), Segal additionally speculates that a guaranteed income could lower hospitalization rates as low-income individuals begin “eating better, living more balanced lives and making progress in work, education and family.” He laments that “we will now never know” whether the policy would have had such predicted positive effects on health outcomes.

 

Dr. Kwame McKenzie

Dr. Kwame McKenzie, psychiatrist and CEO of the Wellesley Institute, had been named Special Advisor to the Ontario Basic Income Pilot by the previous provincial government. Like Segal, McKenzie is now concerned about the effect of the experiment’s cancellation on those currently enrolled in it. The psychiatrist tweeted on August 1, the day after the experiment was cancelled, that he “woke this morning more worried about the health impacts on participants. This is a high risk situation.”

McKenzie spoke to CBC Radio about his concerns, emphasizing that participants currently face a “difficult and stressful time” which could lead to many and severe possible physiological consequences. He noted that many of those who enrolled in the pilot have made “life-changing decisions” founded on the belief that they would have a three-year guaranteed income, and argued that they now need both adequate financial support (he recommended at least a year to wind down the project) and personal support in making new decisions.

Also like Segal, McKenzie believes that a guaranteed income could have promoted key objectives of the PC government. He stressed, for example, its potential to result in better jobs for low-income people. Asked by CBC about MacLeod’s work-focused approach to welfare, McKenzie stated that he agrees that “good jobs is a great health intervention” (while cautioning that bad jobs tend to worsen health). He went on, however, to explain that a guaranteed income might have offered a effective means to achieve this goal, bemoaning “Now I guess we’ll never know.” 

 

Speaking anonymously to CBC, another researcher on the experiment’s academic team more directly addressed MacLeod’s allegation that the pilot project is not working: “There’s no conceivable way that they were told the project wasn’t working. We just don’t have any data to know whether it was working or not.”

The researcher acknowledged that individual recipients have gone to the media with stories that are “very positive” but underlined the fact that these reports might not be representative: “[T]he whole point of our project was to just stand back from all the stories people are telling and try to look at the data in a reasonably scientific way.”

If the experiment had continued as planned, the research group was expected to evaluate outcomes in many areas — potentially including, among others, food security, stress and anxiety, healthcare usage, housing stability, education, and employment — comparing data gathered from the 4,000 guaranteed income recipients to that collected from a control group.

Results had been expected to be reported to the public in 2020.

Discussion on the future of UBI trials

Discussion on the future of UBI trials

Picture credit to: iStock

 

The start of the longest and largest Universal Basic Income (UBI) experiment in Kenya and the approaching end of the trial in Finland spark a new discussion among experts on the effects of ‘no-strings attached’ money transfers.

 

An article published in Nature in May 2018 discussed the importance of randomized trials in informing researchers and policy makers alike about the feasibility of an UBI scheme. The article states that critics of the currently employed conditional welfare systems believe that the limited results do not justify large administrative costs that come with such policies. Some policy-makers see UBI as a more affordable alternative that has more potential to alleviate poverty, according to the article, but the costs and benefits of UBI schemes still have not been clearly identified. With that in mind, many decision makers prefer to employ a data-driven approach by making randomized trials, the most universally accepted method of gathering information about the effects of UBI. However, even supporters of the evidence-based approach claim that designing and conducting UBI trials comes with its own set of difficulties. They point out that it requires a large amount of planning and researchers need to look for benefits in a wide variety of areas such as health, education, nutrition and job-seeking. Furthermore, lack of standardized goals and agreed upon areas of impact pose another challenge for advocates of UBI trials.

 

Damon Jones, an economist at the University of Chicago believes that even clearly demonstrated benefits will not necessarily indicate that UBI would work in practice. He arguments that most resources for the trials come from private funds and only include a small portion of the population. Hence, he thinks trials do not say much about the affordability of big government programs and the willingness of people to fund them through tax increases. On the other hand, he adds that despite these inherent limitations research still should be done.

 

Others propose that trials have an ongoing impact on UBI discussions. Rob Reich, a political scientist at California’s Stanford University thinks trials will help researchers identify flaws in the process, refine goals and impact areas as well as provide policy makers with some answers they are looking for. Furthermore, supporters argue that over time the studies will provide more insight on the costs and benefits of guaranteed income schemes. Proponents of UBI trials recognize that despite being important, updating research is expensive.

 

On the other hand, Quartz interviewed experts that expressed doubt whether randomized trials are the best option for analyzing the effects of UBI in the first place. According to Karl Widerquist, many effects will play out over the years and will not be revealed during the experiment, regardless of its size and cost. Nonetheless, he notes there is very little downside to trying it out. Others believe that the benefits have already been proven by initiatives such as Alaska’s Permanent Fund Dividend and there is no need for more research. Matthew Zwolinski adds that UBI has to be “robust enough to survive the political process”, meaning that he sees gradual changes having a higher likelihood of being implemented, compared to radical policies.

 

Although opinions differ, supporters hope that big trials like the one in Kenya will open the door for future research and help the discussion move forward.

 

 

More information at:

Carrie Arnold, “Nature: Money for nothing: the truth about universal basic income”, Nature, News Feature, May 30th 2018

 

Kate McFarland, “Overview of current basic income related experiments (October 2017)”, Basic Income News, October 19th 2017

 

Kate McFarland, “US/KENYA: GiveDirectly Officially Launches UBI experiment”, Basic Income News, November 17th 2017

 

Olivia Goldhill, “We’re giving up on universal basic income before the evidence is in”, Quartz, May 29th 2018