by Aleksander Masternak | Jan 10, 2018 | Opinion
One of the most common objections to Universal Basic Income (UBI) states that the policy will disincentive individuals from working. There is an apparent fear that a UBI will bring widespread idleness. While we should be optimistic that basic income (or Negative Income Tax) experiments, which have recorded relatively low reductions in labour effort while decreasing poverty and increasing well-being, the devil’s in the details (and caveats) [1]. Instead, let’s take a step back and reflect on whether we should be working the long hours we still do and whether a hardline approach [2] to incentivising employment is necessary and effective.
Historical increases in productivity since the start of the 20th century developed predictions that citizens will not need to work as much as they had in the past. In the 1930s, Bertrand Russell remarked at the great productive capacities of the British economy during WW1 and detested the continued obsession with work for its own sake[3]. Nowadays, the need for basic products and services is adequately met and producing more does not mean working more. We need not be working the long hours we are required to for our societies to continue to grow. As economic historian Robert Skidelsky put it, “with our post-machine standard of living, we can afford to shed some of the Puritan guilt that has, for centuries, kept our noses to the grindstone” [4]. As such we should not worry about UBI earners enjoying more leisure time.
Increased leisure time allows individuals to pursue several goods in life, be it developing skills, learning something new, caring for the elderly or children, or just watching their favourite show. Shortening working days has been shown to increase productivity, promote well-being, reduce sick leave, and allow for a better work-life balance [5]. What should one do in their leisure time is up to them to decide. Long hours of work, however, seem to exhaust the worker as to prevent him from enjoying leisure time actively. Picture an “average Joe”, slumped in his armchair, watching a game of football with a beer in his hand. Admittedly, when a UBI is first introduced, the belief of many may be akin to that of “average Joe”. Long working days and passive evenings is what we’re used to after all.
Bertrand Russell thought, “…the wise use of leisure […] is a product of civilisation and education. A man who has worked long hours all his life will become bored if he is suddenly idle. But without a considerable amount of leisure a man is cut off from many of the best things.” [6]
If there are many slackers, we shouldn’t worry about them. With no requirement to work they should be able to pursue ends they would have attempted to do anyway. This may still be work, albeit in a different form, or training for a job for which you were previously thought unqualified. Many people may have waited for these activities or efforts until they had earned enough income. UBI reduces concerns of financial stability. We are not used to a society where individuals do not have (serious) personal financial concerns. It may take a generation or two for us to get used to it and be able to make wise use of our leisure time. A lot of people choose to spend their leisure time being productive, while others are happy to sit and play PC games all day long. In the meanwhile, many will be bored with the extra time they have on their hands and that might be a good thing.
Individuals work for reasons far exceeding the need to earn subsistence. Unfortunately, despite years of technological development and raised standards of living, individuals are still thought only capable of being motivated to work through the deprivation of their physiological needs. Empirical evidence suggests people care about their work for more than just earning a wage [7]. When the labour market does not offer a sufficient supply of meaningful work that a labourer can take on, earning subsistence seems to take precedence. Systematically denying individuals meaningful work, however, could be detrimental to the individual’s capacity of devising and pursuing their conception of the good life.
It is difficult to conceive of alternative ways to sustain oneself and pursue a good life. It is arguably easier to find meaning in the responsibilities placed upon you by virtue of employment rather than to find yourself bored, seeking meaning, deciding upon a pursuit, and motivating oneself to do it. A new field of psychological research, developed by Ryan and Deci, called Self-Determination Theory (SDT) should raise optimism.
SDT posits “human nature […] is deeply designed to be active and social and which, when afforded a good enough (i.e. basic-need-supportive) environment, will move toward thriving, wellness, and integrity” [8]. Humans achieve optimal functioning when managing their physiological needs, their psychological needs are often achieved as well. These needs include autonomy – when one’s behaviours are inline with one’s authentic interests, competence – feeling mastery in significant life contexts, and relatedness – when you feel cared for or significant in front of others. “People’s curiosity, creativity, productivity, and compassion are most robustly expressed” in social contexts in which their psychological needs have been taken into account.
If the current generation is afforded a UBI many who reduce their time at work will become bored. A well-implemented UBI policy guarantees one’s physiological needs are met and frees individuals to fulfill their psychological needs. When these same individuals recognise their boredom they will seek to alleviate it. Initially, this may take the form of passive entertainment (and some may stay here) while others will try and fulfil their psychological requirements through meaningful activities (congruent with their psychological needs). Those that never make an effort to improve themselves likely already have this inclination under the current social system, and this should be rare anyway. Figuring out one’s intrinsic interests is difficult and takes serious reflective deliberation. While instinct leads us to the fulfilment of psychological needs, we may not have these clearly defined ourselves or be properly aware of them. As such, in order to ease the existential burden of the first generation of basic income earners the public should be educated about their psychological needs and ways to pursue them.
About the author:
Aleksander Masternak is a freelance writer and web developer based in Berlin.
He holds an MSc in Political Theory from the University of Amsterdam and an MA in History and Economics from the University of Glasgow. In the past, he worked as an archival research assistant to the Great War Project in Glasgow, a TEDx conference event organiser, an English language teacher, a marketing manager for a start-up, and Centre Manager of a language school.
[1] Widerquist, Karl. (2017, November 28). The Basic Income Guarantee Experiments of the 1970s: A Quick Summary of Results. BIEN.
Weller, Chris. (2017, May 10). Finland’s Basic Income Experiment Is Already Lowering Stress Levels – and It’s Only 4 Months Old.
Widerquist, Karl. (2017, November 21). Basic Income Experiments-The Devil’s in the Caveats. BIEN.
[2] stick-approach: when one is incentivised to act through the threat of punishment and coercion rather than through the promise of reward (carrot-approach).
[3] Russell, Bertrand. (1932). In Praise of Idleness.
[4] Skidelsky, Robert. (2013). Rise of the Robots: What Will the Future of Work Look Like? The Guardian.
[5] Bernmar, Daniel. (2017, January 06). Ignore the Headlines: A Six-hour Working Day Is the Way Forward. The Guardian.
[6] Russell (1932).
[7] Gheaus, A., &; Herzog, L. (2016). The Goods of Work (Other Than Money!).
[8] Ryan, R. M., &; Deci, E. L. (2017). Self-determination theory basic psychological needs in motivation, development, and wellness. New York: Guilford Press.
by Albert Joerimann | Jan 4, 2018 | News
Michael Strobaek, Global Chief Investment Officer (CIO) of Switzerland’s second largest bank Credit Suisse (CS), is interviewed in the December 2017 issue of CS’s “Bulletin“, dedicated to questions around aging. According to Strobaek, it will be crucial to secure the livelihood of the millions of people who will be unemployed through technological development, automation and robotization, and that this has to be done through some sort of unconditional basic income (UBI). Although Strobaek has not provided any specifics about UBI, he is clear that it is required by future unemployment. This future unemployment, however has not been proven as a fact. Despite often cited reports, there is still no proven link between automation and net job loss, since these reports focus on job destruction, not job creation. For an alternative view, that finds that new technology will create new jobs as well as destroying old ones, see Ursula Huws’ article.
Asked who would be supposed to pay for the UBI, Strobaek answers: “The taxpayer. But the question then becomes just what is being taxed? Bill Gates proposed a robot tax to replace the income tax and social security contributions that will be lost through automation. As a society, we still need to find answers to this question.” But according to Strobaek the main challenge relates to future possibilities for human activities when there is very little paid work left. He suggests that “the structures of the world of work will need to be replaced by individual and self-selected structures. Intrinsic motivations will replace extrinsic ones. (…) When people have material security, then they will be able to become involved in the care of older people or of children”. This, however, seems to be in conflict with a deep job-centered logic that he defends throughout the interview, alongside a defence of large families, fearing for population and social security system decline.
Although Strobaek’s interview supports UBI, there is no information indicating whether this is the view of the CS board of directors, or of CS in general. Big banks do not usually publicize particular positions or make their own proposals, except about taxation and regulation within their own framework or on behalf of their clients, since they are doing business with a wide variety of clients, who support all political orientations. There is also no evidence in the interview of an alternative view to Strobaek’s support for UBI. This is consistent with the fact that large financial institutions are generally not criticized in any way in Switzerland, except at times by the political Left.
More information at:
“The New Old Age“, Credit Suisse Bulletin 4th Trimester 2017
Ursula Huws, “The future of work“, personal blog, January 29th 2017
This article was updated by André Coelho and reviewed by Malcolm Torry.
by Karl Widerquist | Jan 3, 2018 | Opinion, The Indepentarian
This essay was originally published in the USBIG NewsFlash in September 2006.
I was struck by a report in the Associated Press reported on October 12th that a 63-year-old Ohio man intentionally had himself convicted of bank robbery. Timothy J. Bowers sought a three-year prison sentence to bridge the gap until he becomes eligible for full Social Security benefits. Bowers had lost his job making deliveries for a drug wholesaler more than three years ago and had been unable to find anything but minimum wage labor, which he could not live on. So, finally, he went to a bank, handed the clerk an envelope and demanded that she put cash it in. He then walked straight to the bank’s security guard, confessed, handed him the envelope filled with only $80 in cash, and calmly waited for the police.
The court-ordered psychological evaluation pronounced him sane and competent to stand trial. Judge Angela White gave Bowers the three-year sentence he asked for. According to the AP, “Prosecutors had considered arguing against putting Bowers in prison at taxpayer expense, but they worried he would do something more reckless to be put behind bars.” Arguing against tough sentencing is an ironic position for American prosecutors well known for locking away petty criminals.
This is an isolated incident. It is hardly a repeat of the Irish Potato famine when there were stories of large numbers of people getting themselves arrested to avoid starvation. But still, I think it says something about the low-wage labor market in the United States today. U.S. prisons are not easy, pleasant, or kind places to be under any circumstances. America is not in a famine; by some measures, it is the richest country in the world. What does it say about the jobs we offer the underprivileged when a sane person can choose prison over labor market?
-Karl Widerquist, New Orleans, LA, September 2006
by Toru Yamamori | Jan 1, 2018 | News
Sonia Sodha (Twitter account image)
Sonia Sodha, lead writer at the Observer, urges the British Left not to support UBI. According to her latest opinion piece for the Guardian, UBI will not cure any social disease that UBI advocates claim will be alleviated, and rather, it is currently a fatal distraction from other battles on which the British Left should focus.
Sodha charted the rationales for UBI in the following three categories: tech utopians’s prophecy of a decrease of jobs, Ken Loachian welfare critics’ blame against inhumanely complex welfare system, and.labour market dystopians’ poverty backstop against insecurity.
Sodha dismisses the tech utopian’s argument by insisting it falls ‘lump of labour fallacy’. According to Sodha, ‘[f]ar from robots stealing jobs, the reality is that many firms are underinvesting in technology, suppressing productivity’ in Britain, and ‘technology will radically reshape the world of work without reducing its sum total’. She also dismisses the argument of what she calls ‘Ken Loachian-welfare critics’ (though Loach himself has never argued what Sodha labels under his name) and states:
“We could fix the caring issue simply by increasing the generosity of the stingy state benefits paid to those who care full-time for older people or adults with disabilities. If we were so inclined, we could get rid of punitive benefit sanctions and replace them with a welfare-to-work system that puts much more emphasis on training and support for people to find the job that is right for them, not the first that comes along.”
Finally, Sodha opposes the labour market dystopians, by accusing them of not fighting for labour rights but for ‘a dribble of cash’. Similar points to Sonia Sodha’s were made by Bo Rothstein in a recent Social Europe article, ‘UBI: A bad idea for the welfare state’ A response followed, ‘Universal Basic Income: Definitions and details’. The same detailed response would apply here.
Behind her accusations, there is a recent move for UBI inside the Labour party. See the articles below for more on Labour Party activity regarding UBI support:
Toru Yamamori, “UNITED KINGDOM: Jeremy Corbyn, candidate for Labour Party leader, recruits Basic Income advocate to draft economic plan”, Basic Income News, August 8th 2015
Toru Yamamori, “United Kingdom: Labour Party considers universal basic income”, Basic Income News, February 21st 2016
Kate MacFarland, “UK: Labour Leader to Investigate Universal Basic Income“, Basic Income News, September 15th 2016
Genevieve Shanahan, “UK: Labour Party sets up working group to investigate UBI”, Basic Income News, February 10th 2017
More information at:
Sonia Sodha, ‘UBI is no panacea for us – and Labour shouldn’t back it’, The Guardian, 18th December 2017.
by Karl Widerquist | Dec 24, 2017 | Opinion, The Indepentarian
This audio is of talk I gave on why we need a Universal Basic Income. I gave the talk for the “Sydney Ideas” series in August of 2017, and I’m particularly happy with it. It summarizes the reasons I think are most important, and I think I did a relatively good job of delivering it. It discusses how Basic Income removes the judgment and paternalism that pervade the world’s existing social welfare systems, and why doing so is so important not only for people at the bottom but also for the average worker. It also briefly addresses how to craft a realistic Basic Income proposal, how much it costs, options for paying for it, and evidence about what it can do.
Following the lecture the audio file includes a question and answer session where I’m joined by Dr Elizabeth Hill, Chair of Department of Political Economy, School of Social and Political Sciences, University of Sydney, and Professor Gabrielle Meagher, Department of Sociology, Macquarie University.