by Sara Bizarro | Jun 6, 2018 | News
The 2018 NABIG (North American Basic Income Guarantee) Congress happened in Hamilton, Ontario, from May 24th to May 27th at McMaster University. There were around 120 people presenting and attendance between 270-280 people. The conference was notably diverse, with attendees from across the income spectrum, from people who have prospered in business, to people living in poverty. There were representatives from legislatures, civil services, business, academia and faith organizations, unions, agriculture, community service groups, advocacy groups, and First Nations communities. There were participants with long and deep knowledge about Basic Income, as well as people who were new to the concept. There was also a large number of young people, attending and presenting. There were participants from Australia, Brazil, Canada, Chile, Germany, Mexico, Portugal, Russia, the USA, and the UK, among others.
Guy Caron, Evelyn Forget, Art Eggleton, Sheila Regehr, Ian Schlakman and Laura Babcock.
The conference opened with welcome remarks from Hamilton Mayor Fred Eisenberger, followed by a panel that included Guy Caron, a federal Member of Parliament (MP) from Québec with the New Democratic Party; Art Eggleton, a Canadian Senator and former MP, and former long-serving mayor of the City of Toronto; Evelyn Forget, Manitoba health economist that uncovered the effects of Mincome on health and wellbeing; Sheila Regehr, chairperson of the Basic Income Canada Network and Ian Schlakman, Basic Income Action activist from the National Welfare Rights and Poor People’s Campaign. The moderator for that section was Laura Babcock, President of POWERGROUP Communications and a national current affairs commentator. Guy Caron spoke about his Basic Income proposal, a way to combine existing benefits such as the Canadian child benefit and tax credits into one policy that guarantees that no one would fall under the poverty line. Senator Eggleton also said he would be for an incrementalist solution to rolling out Basic Income in Canada. At the end of the panel, each speaker was asked to say one inspirational phrase that summed up their views and MP Guy Caron said: “Putting a man on the moon was a huge achievement. If we could end poverty in Canada, we would be the first country in the world to do so!”
Living Proof, Hamilton Basic Income Speakers: Jodi Dean, David Cherkewski, Lance Dingman, Jayne Cardno, Rhonda Castello.
The conference also had the participation of the group Living Proof, a select group of speakers that are participants in the Hamilton Basic Income Pilot. The Basic Income recipients stood up, one by one, and told their stories. Each of the participants spoke of how they went from having a comfortable middle-class life to living in poverty and about the challenges they faced on a daily basis. Jodi, one of the Basic Income recipients, said that she had a normal middle-class life before a divorce left her and her children in a dire situation, especially since one of her children has Brittle Bone disease. She talked about a night when she had a child with a broken leg and had to worry about taking her to the hospital because she had no money to pay for parking. Others spoke about mental health and disability challenges and referred to several difficulties with the current social security system whose job is more felt as policing rather than helping them find exit strategies for their situation. Interestingly, all recipients said they started volunteering in their communities since they have been receiving the Basic Income and this has inspired them to try to change their situation of poverty and of those around them.
Living Proof, Hamilton Basic Income Speakers: Margie Gould, Jayne Cardno, Lance Dingman, Tim Button, Dave Cherkewski, Jodi Dean, Rhonda Castello and John Mills (Living Proof group coordinator).
The event was entitled, Basic Income: Bold Ideas, Practical Solutions, and the main plenary talks were on two themes, Convergence and Reality. The Convergence topic intended to presenting Basic Income from different perspectives, from social justice to health, human rights, faith, technology etc. The Reality theme, which goes beyond the reason why we need a Basic Income, included implementation issues on how a Basic Income should operate, e.g. how to fund it and how to gain public support.
The complete program can be downloaded here and the paper and presentations will be available at the Basic Income Canada Network website after June 17th.
More information at:
Nicole Smith, “Canada Could be the First Country to Eliminate Poverty”, Raise the Hammer, May 29th 2018
by Claire Bott | Jun 5, 2018 | News
Johann Hari, a successful non-fiction writer, has used his latest book, Lost Connections, to explore the topic of depression, looking at certain possible solutions to the debilitating condition.
Although most traditional solutions for depression are individual and aimed at the depressed person, Hari, who suffers from the illness himself, suggests that solutions for depression could include radical social change in order to avoid bringing about the conditions under which people tend to become depressed. Although, this is sometimes said to be difficult to control so many will opt to seek professional advice or try products like this penis envy dosage in order to uplift their mood.
Depression can happen to anybody, and it can occur for a number of different reasons. This is why no one ever fully understands what is going on in someone else’s head. For example, you might see someone enjoying Organic CBD Nugs, or another form of cannabis, and assume it’s purely recreational. However, that person could be using the substance to calm their feelings of anxiety and depression. It could be because you’ve been subjected to emotional, physical, or sexual abuse, you’ve experienced a death, or you could’ve been diagnosed with a serious illness. Unfortunately, the list goes on. People are able to seek out remedies in the form of marijuana, which they can get from online retailers like get kush, which may treat their symptoms of depression and help them to fight off the low moods – but only if they can afford it. Plus, they will need to obtain a medical marijuana card, which you can receive from places like Green Health Docs, to help relieve the symptoms this way, the same can’t be said about what happens socially. What happens in the environment around us is out of our control, so this could be the reason why people are experiencing depression, like Hari.
In the final chapter of the book, Hari explores the concept of universal basic income (UBI), including interviews with Rutger Bregman, the Dutch historian and author who wrote Utopia for Realists (by giving people money to meet their everyday needs, Bregman argues, we can improve their well-being, free them from pointless jobs, and allow everyone to engage in meaningful activity again), and Dr Evelyn Forget, the Canadian economist. In an interview about Lost Connections, Hari referred to UBI as “a really potent anti-depressant”. Research, though limited, seems to back up this idea, which includes the large basic income trial which happened in Manitoba, Canada, in the 1970s.
Edited by: Patrick Hoare
by Karl Widerquist | May 30, 2018 | Opinion, The Indepentarian
This essay was originally published on Basic Income News in December 2012.
This year Alaskans received a dividend of $878, not bad compared to all the other states, but this dividend is the smallest since 2005, and it is only the second time in more than 20 years that the dividend has been below $900 per person. Alaska’s Permanent Fund Dividend (PFD) needlessly fluctuates widely. This year’s dividend is 25 percent smaller than last year’s dividend of $1,174, and it is 57 percent smaller than the 2008 record-high dividend of $2,069 (not counting the one-time supplement of $1200 that was added to that year’s dividend).
The declining dividend does not mean that the PFD is in trouble. Actually the Alaska Permanent Fund (APF), which financed the PFD, is at near-record high levels. It closed the 2011-2012 fiscal year at 40.3 billion dollars. The dividend was low this year because the state uses a complex formula averaging the returns over a five-year period to determine yearly returns. The five-year average was chosen to smooth out fluctuations in market returns to create a more stable dividend, but—as Alaskans can easily see—a five-year average is not enough to do that job. Markets tend to have stable long-term trends, but they can have occasionally large yearly fluctuations (either up or down) that can dwarf a five-year average. The mid-2000s market boom, and the 2008-2009 market bust were just such fluctuations. Now, several years later with the boom returns falling out of the calculations but the decline still in, the 2008 market bust affects the dividend the more than it did at the time.
There’s a better, more stable way to calculate the dividend. It’s called percentage of market value (POMV). Most financial managers agree that an individual can afford to withdraw up to 4 percent of a well-invested diversified portfolio and still expect it to grow in real terms over time.
If Alaska used this rule to calculate the PFD, this year’s dividend would have been $2,380. It would have been a record-high dividend, because the APF closed the fiscal year at a record-high level. Suppose then there was a major sell-off in the markets and the fund declined by 25% to $30 billion. The dividend would decline by 25% as well, to $1,846. Suppose instead it rose by 25% to $50 billion. The dividend would rise by 25% as well, to $3,076. Because 25% is an unusually large fluctuation, we can expect this to be an unusually large change in the dividend. Most often it would change by less than 10% from year to year, and in most years it would increase.
Perhaps Alaskans should be more conservative. The goal of the fund is not just to payout as much as possible. It is also to save for the future. The more the APFC pays out in dividends now, the slower the APF and the PFD will grow over the long term. So, perhaps a POMV rule of 3% would be better—a little more cautious—than the 4% rule. If so, payouts this year would have been $1860. Payouts after a 25% decline to $30 billion would be $1,395. Payouts after a rise to $50 billion would be $2325, and Alaska could expect to larger reinvestments by the APFC to help the APF get to $50 billion much more quickly.
POMV just makes sense. Nobody likes the big fluctuations. No one wants their dividend to be less than half of what it was a few years ago. POMV stabilizes dividends, making it easier for Alaskans to plan, and it can be part of a conservative payout strategy that will keep the fund growing over time.
-Karl Widerquist, Doha, Qatar, November 2012
by Guest Contributor | May 26, 2018 | News
Scott Santens published on Medium the transcription of a speech he wrote for a keynote session he presented in Sweden in 2017, with the title “It’s time for technology to serve all humankind with Unconditional Basic Income.”
The speech revolves around the impact of automation on society, acting as a disruptor in the labour market, making many jobs obsolete without creating more and better jobs for humans. This is a trend that goes on since the ‘90s: “Yes, it already happened. It’s not in the future. It’s in the past”.
Technological unemployment is a reality, he says, and it’s observable from the decline in occupation of the US population since 2000, the year in wich human labour peaked. Ephemeralization made a lot of middle-skilled jobs obsolete, creating an occupational vacuum filled by low-skilled jobs, as jobs are automated “from the middle out”. This translated in income stagnation for the middle class, growth in incomes monthly variance and rising income inequality. All factors which ultimately affect the wellbeing of individuals and society as a whole, producing a costant sense of insecurity in the population. But, according to Santens, we shouldn’t fear automation:
“We have the opportunity to forever free humanity from drudgery and toil, but as long as people require money to live, and jobs are the primary way of obtaining money, people will fear automation.”
Technologic unemployment ends up hindering productivity itself, because automation of the medium skilled jobs makes workers shift toward the low skilled ones, increasing the offer of low paid work and thus making automation less convenient and postponable.The answer resides in decoupling work from income, through the introduction of an Unconditional Basic Income, a solution which would make income circulate from top to bottom. It would eliminate the necessity to work in order to survive, thus driving very many undesirable jobs out of the labour market and making automation more impellent. With a better distribution of wealth, full automation could be reached, eliminating many unnecessarry and unsatisfactory jobs, and society would be ultimately able to floursih. Scott Santens puts this clearly:
“…how much are we holding civilization back by allowing impoverishment to continue? How much more could we accomplish as a species, if we made the choice, that’s right, THE CHOICE, to abolish poverty and extreme inequality forever, by simply investing in humanity — in each other?”
More information at:
Scott Santens, “It’s Time for Technology to Serve all Humankind with Unconditional Basic Income”, Medium, April 13th 2018
by Andre Coelho | May 20, 2018 | News
Andrew Yang has already made his name known by leading a presidential campaign which defends the implementation of basic income. Now he extends that with an interview for the Merion West journal, a news outlet particularly associated with low biases. In that interview, posted on the 9th of May, Yang affirms his conviction that humanity is going through an unprecedented shift, while the (United States) political class “is completely asleep at the switch”.
Yang, as other influential people in the United States, especially those dealing with technological developments and digital-based companies, is very worried about the job loss wave in the United States, due to automation. According to him, that is already happening, and will deepen in the near future. To counteract the predictable consequences of such job displacement “by software, AI, and machines”, he defends the implementation of a 1000 US$/month per adult basic income, which he calls a “freedom dividend”. That and a “human-centric capitalism”, an economic system which measures things like “childhood success rate, mental health, levels of engagement with work, freedom from substance abuse”, instead of GDP.
Asked about a possible parallel with the Industrial Revolution, where, despite strifes and strikes, displaced people eventually found new work, Yang says that (referring to manufacturing workers in the Midwest) “there was no magical reorganization of work; instead, many workers went home and killed themselves by the numbers”. According to him, anyone thinking this “magical reorganization of work” is possible, is “not paying attention to the real data on the ground rate now”.
As for basic income itself, Yang approaches it with a certain humour, even, when he says “One thing I’m looking forward to asking, when I’m president, which state would like to have universal basic income first?” However, he states it very seriously when putting forth his conviction that “universal basic income would dramatically improve the lives of tens of millions of individuals and families. There might be some tweaks and tailoring, but I’m very bullish on the substance”.
As for financing, Andrew Yang is confident that a basic income of 1000 US$/month per adult is affordable, considering its price tag is around 2 trillion US$ per year, compared with current welfare costs of 6 trillion US$ per year. That doesn’t equate to ending all welfare benefits, but that it is possible to include basic income within the benefits systems, by introducing an unconditional parcel. Even still, he defends, like Phillipe van Parijs has also proposed in the European context, basic income can be mostly financed with a value-added tax around 10%, or about half of what is practiced in Europe, on average. An expectation of further economic growth, due to a rise in aggregated demand by influence of the existence of a basic income, will self-finance the rest, given an equivalent rise in collected taxes.
Yang also believes that the US current system of social security, health and education are essentially broken, categorizing them as “dysfunctional welfare systems”. According to him, these systems generate vast disincentives amongst the population, or benefit traps. Hence, the introduction of basic income could break those economic and social traps, by providing a financial floor cumulative with earnings from a job. As far as economic policy is concerned, he concludes the interview with a deeper, more general call to society: “In America, we won’t trust our people, but the only thing we will trust are systems, and more systems and processes—and it’s immensely counterproductive. We need to start trusting our people again; we have to trust ourselves.”
More information at:
Sara Bizarro, “United States: Andrew Yang is running for President in 2020 on the platform of Universal Basic Income”, Basic Income News, April 8th 2018
Henri Matilla, “Interview with Andrew Yang, 2020 Presidential Candidate”, Merion West, May 9th 2018
