Taiwan holds ‘electric’ Asia Pacific basic income conference

Taiwan holds ‘electric’ Asia Pacific basic income conference

The Basic Income Asia Pacific 2018 conference signaled a feeling of growing momentum of the basic income movement in Asia Pacific, particularly in Taiwan.

Over 100 attendees filled the two day conference in Taipei, along with thousands of viewers of the online livestream and simultaneous translations. The speaker roster this year featured an extensive list of international and Taiwanese scholars and personalities.

Enno Schmidt, the 2016 Swiss referendum leader, and Sarath Davala, the leader researcher for UNICEF’s Indian basic income trial, led the keynote speeches for day one and day two respectively.

Davala said he felt “electricity” during the conference.

“The UBI Asia Pacific Conference is an important milestone in the basic income movement. It is a high voltage moment that we in Asia will talk to our children about. The energy in the conference was amazing, and I was inspired to see young women and men from different universities in Taiwan all fired up about the idea of basic income,” Davala said.

Schmidt said it was clear the Taiwanese group had put in a lot of effort since last year’s conference.

“At this year’s UBI Asia Pacific Conference, it was noticeable that the UBI team had already been working for a full year. Sarath Davala from India gave a rousing speech, and Patrick Havermann from the United Nations Development Program in Asia would like to make the entire UN network available to spread the idea of the Basic Income,” Schmidt said.

Taiwanese media emphasized the conference’s focus on Taiwan’s recent changes to the referendum law, which has opened up the possibility for a basic income referendum in Taiwan.

Taiwan’s Digital Minister Audrey Tang opened the first day of the conference, noting that while she believes more research should be done on basic income in Taiwan, she supported the spirit of discussion at the conference.

“Indeed, to build a sound re-distribution mechanism to improve human welfare and equality — this is a timeless subject that needs continuous review and revisit,” Tang said.

The UN Development Program (UNDP) Asia Pacific Advisor Patrick Haverman, who has been leading an effort to work with regional governments to research basic income, opened the second day of the conference.

Haverman held a series of round-table discussions with Chinese scholars and officials on the possibility for a pilot program in China.

“In my work with UNDP, I have helped establish round-table meetings on basic income across the Asia Pacific with other UN agencies, academics, and government officials to start a discussion about UBI and explore the possibility of piloting an basic income project,” Haverman said. “The Basic Income Asia Pacific conference is good way to exchange information and to discuss how potentially UBI can address some of the most pressing challenges of our time, like inequality and automatization potentially taking over some of the current jobs.”

UBI Taiwan also presented the current state of their research on both days. The research group said their main focus is creating a framework for a universal Partial Basic Income (PBI) that would gradually phase into a full basic income over a decade. The English overview of their research can be found here.

The proposal would increase taxes by five percent of Taiwan’s GDP and could provide 3,000 NTD ($102 USD) to every Taiwanese citizen.

Jiaguan Su, UBI Taiwan’s Research Director, said the scholars who had met with the research team to discuss the national proposal were “impressed,” and that their main takeaway is that the proposal must emphasize the values of UBI.

“The most important lesson we took from the conference is we must promote the core values of UBI Taiwan through the national proposal. Namely, UBI is for everyone, not just a specific group of people. Our research should focus on this value in order to demonstrate UBI’s ability to promote democracy and human rights in Taiwan,” Su said.

Jason Hsu, a KMT (Nationalist Party) legislator in Taiwan’s Legislative Yuan, spoke at the first day of the conference. Taiwan media reported that Hsu is considering raising the subject of basic income with large Taiwanese companies.

James Davis, a Columbia University student and UBI Taiwan Field Research Director, interviewed Andrew Yang, the 2020 US presidential candidate running on a basic income platform for the conference. Yang is ethnically Taiwanese and said he was excited by the discussion of basic income in Taiwan.

“UBI Taiwan is fighting the good fight. I was honored to contribute to the BIAP conference because job automation has the potential to seriously hurt Taiwanese workers – and American workers – if universal basic income doesn’t become a reality soon,” Yang said.

Davis also interviewed Qin Gao for the conference, the Columbia University professor who has written a book on China’s cash transfer program, dibao. Gao is the director of China Center for Social Policy at Columbia. Gao noted the problems and stigmatization that arise from some of the means-testing conditions on China’s cash program.

Andy Stern, the former President of the Service Employees International Union (SEIU) and former advisor to President Barack Obama, has been a consistent advocate of basic income in the United States and has provided advice and support to UBI Taiwan over the last several months.

“The clarity of UBI Taiwan’s vision and the tremendous work of its fellows is astounding. The time for universal basic income policies is now, not later. And the world is lucky to have UBI Taiwan on the vanguard of the global debate, designing UBI policy in practical, politically feasible ways,” Stern said.

National Chengchi University (NCCU) and National Taiwan University were the locations for the event this year. NCCU’s International Master’s Program in Asia Pacific Studies (IMAS) was the main organizer for the event. UBI Taiwan provided the volunteer team.

The U.S. State Department’s Critical Language Scholarship program provided a grant through its Alumni Development Fund to support the event to Prochazka, Elyse Mark, and Davis.

Tyler Prochazka, UBI Taiwan’s co-founder, was the director for the conference along with Dongyan Wu, UBI Taiwan’s Public Relations Director. Prochazka and Wu will appear on Taiwan television in April and May.

Ping Xu, UBI Taiwan’s co-founder, said she was excited by the results of the conference, particularly the connections made between different opinion leaders from around the region and within Taiwan.

“It was great success to have many influential opinion leaders from political, medical and social fields participate in the conference. This was a brand new milestone to help build the UBI movement in Taiwan,” Xu said.

Davala said the conference was a positive sign for the future of Taiwan’s UBI movement.

“UBI Taiwan, within a short period has been able to inspire and mobilize hundreds of students to stand up for an idea that is often dismissed as Utopian and impractical. Taiwan could very well be the first Asian country to go for a referendum on Unconditional Basic Income,” Davala siad.

The livestreams and simultaneous translation broadcasts can be found on UBI Taiwan’s Facebook. For the conference’s Twitter stream, go here.

 

THE ECONOMIC LESSON OF 1938 (from 2009)

This essay was originally published in the USBIG NewsFlash in August 2009.

If I use the phrase “lesson of 1938,” most people will probably think about Britain’s unsuccessful attempt to avoid war with Nazi Germany by giving away a piece of Czechoslovakia. There are important lessons in that event, but that’s not what I want to talk about.

1938 was also an important year in American economic history, and the economic lesson of that year is relevant to our handling of the global recession today. By 1937, the Great Depression had been going on for eight years. Franklin Roosevelt’s New Deal programs had been stimulating the economy for five years, and they began to show significant signs of working. Industrial production and national income were coming back up. Employment was going back down. The economy appeared to be just about out of the depression—

—and then—

Roosevelt and Congress decided to balance the budget. They raised taxes. They reduced government spending. They contracted the money supply and helped send the economy back into depression by 1938, and it remained in recession for three more years. Unemployment was still 10 percent when the United States entered World War II at the end of 1941. At that point, the government started spending massive amounts of money. They worried less about the budget deficit and more about spending what it takes to do the job. The depression disappeared almost overnight.

The economic lesson of 1938 is that the government cannot balance the budget during a major recession—even in the early stages of recovery. A depressed economy needs a stimulus. Although politicians usually won’t say it out loud, a stimulus often requires not only spending but deficit spending. One of the things that turn a financial crisis into a recession is that people and businesses stop spending in a reinforcing cycle. They can’t afford to spend because they’re not making money. They’re not making money because no one else is spending. Only the government has the size and budget flexibility to break the cycle. In a financial recession, concern for the government’s budget deficit can wait.

The government can get away with deficit spending because the government budget doesn’t work like an individual’s budget or even a corporation’s budget. Government creates the money supply; its spending is not limited to what it takes in or what it can borrow. If you or I spend more than we can get, we will go broke. The government doesn’t have to “get” money. It creates money. If the government creates too much money at any given time, it will overstimulate the economy and create inflation. If inflation becomes a problem, we can take action, by say, taxing some of that money back, but for now it is not a major concern. At a time like this, when resources are going unused because no one’s buying, the government as a lot of leeway to create and spend money without worry of inflation.

We should be more concerned with making sure that the direct beneficiaries of government stimulus are the people most in need. Too often the government stimulates the economy by helping corporations (such as investment banks, automobile manufacturers, and defense contractors), telling us that the stimulus will indirectly make its way to help those who actually need help.

A more effective way to stimulate the economy and help people is with universal programs. Universal healthcare or a universal basic income guarantee would be excellent ways to do so.
-Karl Widerquist, Doha, Qatar August 9, 2009

USA: Many in Silicon Valley Support Universal Basic Income. Now the California Democratic Party Does, Too

USA: Many in Silicon Valley Support Universal Basic Income. Now the California Democratic Party Does, Too

Credit to: Wikipedia.

The Democratic Party in California is supporting Universal Basic Income (UBI). It is now public that people like Elon Musk have supported the initiative, mainly justified through job losses due to automation.

However, this of course leads to questions about the source of the influence that is supporting a basic income in the California Democratic Party, which has adopted on the 25th of February its official 2018 Platform.

In the Californian Democratic Party scene, UBI is mainstream, apparently, since it now features in the Platform, but not in the US as a whole. Since politicians with a Democratic label have to read and support the party policies, one may conclude that the UBI concept has gained traction in the Californian state, at least.

A growing cohort of young political activist leaders have been adopting UBI in their political campaigns. One such examples is 27-year-old Michael Tubbs, the present mayor of Stockton, California. He has promoted and launched a pilot project in Stockton municipality (funded by the Economic Security Project).

Region 5 (a congressional district) Director for the California Democratic Party, Rocky Fernandez, said that he has been talking about UBI for several years. Bob Wieckowski has also played an important leadership role in having basic income become concrete and part of the platform. The UBI platform proposal went through and “was passed,” in the convention by “thousands of party delegates”.

UBI has now a main statement in the Economic Justice section of the California Democratic Party platform. However, the same platform reinforces traditional Democratic values, which focus on jobs to further economic mobility for all Americans. The Party platform justifies the UBI in order to eliminate poverty, while simultaneously supporting efforts to establish government guaranteed jobs, that will “help people climb the economic ladder.” This could be interpreted as being willing to secure basic economic conditions for all people, while not trusting that these people will work if they get to be economically secure.

 

More information at:

Shirin Chaffray, “Many in Silicon Valley support Universal Basic Income. Now the California Democratic Party does, too.“, Recode, March 8th 2018

Kate McFarland, “Elon Musk reaffirms UBI prediction at World Government Summit”, Basic Income News, February 17th 2017

Roger Phillips, “Stockton to pilot ‘basic income’ experiment”, Recordnet.com, October 18th 2017

USA: Forbes 30 Under 30 Names Stockton Mayor Pioneering UBI in California

USA: Forbes 30 Under 30 Names Stockton Mayor Pioneering UBI in California

Michael Tubbs. Credit to: Wikipedia.

 

Forbes published its “30 Under 30 in Law & Policy” and notes that these winners come from across the political spectrum. They have been associated with President Trump, the Democratic Party, and emerge from law schools and professional organizations.

Hundreds of online nominations came in for the listing. The nominations were judged by the CEO of Heritage Action for America Mike Needham, Harvard Law’s Laurence Tribe, FiscalNote’s Co-Founder Timothy Hwang, and the Senior Vice President of Legal Affairs at 3M.

Winners of this year’s 30 under 30 were people such as the co-founder of the National Trans Bar Association Alexander Chen, the co-founder of Upsolve Rohan Pavuluri, a top policy advisor for Medicare and Medicaid Services Jeet Guram, and numerous others.

One individual, Michael Tubbs, who is 27-years-old, is the mayor of Stockton, California was dubbed as “ambitious” in “an attempt to experiment with social policy.” In order to reduce the violent crime rate, Tubbs wants to replicate, at the time of the listing, the program from the Bay Area. The initiative “pays monthly stipends to young men determined to be likely to engage in gun violence to stay out of trouble, as well as provide mentoring, internships and travel opportunities.” Tubbs and the Stockton municipality had already been highlighted for the efforts concerning demonstrating basic income, which were intended to start effectively at the beginning of 2018.

Basic Income News has been reporting on the Bay Area initiatives in several news articles. You can find more information elsewhere (note 1).

 

More information at:

Avik Roy, “Meet The 30 Under 30 Activists, Washington Insiders And Legal Entrepreneurs Shaping U.S. Law And Policy Now”, Forbes, November 14th 2017

Sara Bizarro, “UNITED STATES: Stockton, California plans a Basic Income Demonstration”, Basic Income News, November 21st 2017

 

Note 1 – reference#1, reference#2, reference#3, reference#4, reference#5, and reference#6.

Rural basic income ‘maximizes impact’ for society

Rural basic income ‘maximizes impact’ for society

By JOHN MCCONE

Basic income has many advantages over means-tested benefits: no processing times (with funding gaps where people can be left homeless); no restrictions on freedom; less disincentive to work; and a higher credit value to raise loans at lower interest compared to means-tested benefits. Overall the reliability, unconditionality and lack of bureaucracy makes basic income the dream benefit to receive.

But while basic income may be the dream benefit for recipients, it is a budgetary nightmare for those funding it. Whichever way you run the numbers, a given tax revenue distributed evenly throughout society will provide the most needy with less than if they were the sole recipients. This typically causes enthusiasm for basic income to wane as policy makers consider the practicalities of budgeting for it.

Is there any way for society to reap the benefits of a universal basic income while reducing its cost? What if basic income was restricted to those who live in the countryside (who don’t regularly commute to the city)? Most developed countries today are highly urbanised with 70% or more of their populations living in cities (82.6% in the U.K. in 2015). A rural basic income would cost the taxpayer 3 to 5 times less than a universal basic income and leave room in the budget for means-tested benefits to the needy.

While a basic income limited to rural inhabitants would not be universally distributed, it would be universally available. Anyone could move to the countryside and automatically receive it. This would close any gaps in the benefits system and ensure that those who were truly desperate but did not qualify – or understand how to apply – for means-tested benefits could always move to the countryside and immediately receive a rural basic income. The countryside is very different from the city due to different ways of life. People in the city are more likely to go to the gym, whereas, those in the countryside are more like to go shooting or become a collector. You could learn more about shooting, accessories (red dot sight) and insurance at Sniper Country in case you wanted to give it ago!

In addition to reducing the budget, distributing a basic income to rural locations, where land rents are minimized, maximizes its impact. All a person really needs is food, shelter and water. Low rents make shelter less expensive as well as providing land where people can cheaply grow food. We often overlook the amount of extra time that otherwise unemployed people have compared to salaried workers which, given the right tools and resources, they can apply to provide for themselves. Thus, a basic income does not necessarily have to be large enough to enable people to purchase their material needs from retailers (e.g. groceries, restaurants); it must only be sufficient to give people access to the capital they need (e.g. fertilizer, greenhouses, farm tools) to apply their own labour to produce what they need for themselves. So low land rents have a huge impact on the cost of self-provision.

Given two choices people usually choose the more preferable option. If the goods that can be procured with a given amount of effort from a lifestyle in the countryside are greater than the goods that an identical effort in the city can procure, then people will tend to move to the countryside. It is perfectly possible that the quality of life that working in nature, with low rent payments and a solid basic income of £5,000 (front-loaded with a low interest loan to buy, say, a log cabin) in the countryside might be better than a precarious salary of £20,000 and a 2 hour daily commute in a high rent area of the city. If this is the case, all those with lower salaries than £20,000 will leave for the countryside creating labour scarcity and increasing the salary of unskilled labour to £20,000. Thus, a relatively modest basic income in an area where money is scarce and the cost of living low could exert a highly leveraged effect on salaries in areas where the cost of living is high and money is plentiful.

Beyond raising wages, giving everyone the option to provide for themselves in nature, as opposed to working for somebody else, will strengthen the negotiating position of employees across the board. Managers will have to struggle to retain their workers, this struggle will produce more satisfying jobs and a more fulfilling work environment. A scarcity of labour will also mean that jobs in the city will be easily available to anyone who wants to take them. Furthermore, even a small number of people heading for the countryside will leave a surplus of un-rented accommodation. This in turn will make rents more affordable.

From this we can see that, not only is a rural basic income an affordable way to conveniently pay benefits to those who choose to move to the countryside, but it will also indirectly increase wages, employment and job satisfaction in the city along with lowering rents. A rural basic income could thus affordably improve the lives of everyone.

 

Author of The Countryside Living Allowance (Link: https://www.blurb.co.uk/b/8487802-the-countryside-living-allowance)