by Kate McFarland | Aug 30, 2017 | Research
Inequality in the UK has been rising for some time as gaps between the lower and upper classes increase. But, there are movements such as levelling up the north east that are looking to reducing this inequality to ensure everyone gets good healthcare, education, job opportunities, etc. And now, the Institute for Social and Economic Research (ISER) at the University of Essex has released a paper titled “Reducing poverty and inequality through tax-benefit reform and the minimum wage: the UK as a case-study” as part of its EUROMOD working paper series.
The paper uses the EUROMOD microsimulation model to examine the impact on poverty and inequality of the proposals put forth in economist Anthony Atkinson’s most recent–and final–book Inequality: What Can Be Done? (2015). Atkinson, himself a co-author of the ISER study, passed away on January 1, during the final stages of preparation of the working paper.
The proposals considered include a “significantly more progressive income tax structure,” a “major increase in the minimum wage” (i.e. a “living wage”), and an increase in the amount of the nation’s universal child benefit, and two types of programs of social transfers: a strengthening of the UK’s social insurance system, and a “participation income”. A participation income–an idea developed and promoted by Atkinson–is similar to a basic income in that it guarantees all members of society a stable and secure livable income. It differs from a basic income, however, in that it is not fully unconditional: as its name suggests, a participation income is subject to a participation requirement. According to Atkinson, however, fulfilling this requirement should not require paid work or looking for paid work; it should also be able to be met through caregiving, community volunteer work, full-time education, or other unpaid but socially valuable activities.
In the simulation study, the authors note that “this participation condition cannot be imposed in our simulation exercise due to lack of data” and thus carry out the study “on the basis that everyone is entitled.” In other words, for the purposes of the working paper, they have chosen to simulate what is effectively an unconditional basic income.
The authors simulate a basic income at the level of £75 per week (or £3,902 per year), which replaces many means-tested programs.
One conclusion of the study is that, in comparison to strengthened social insurance (SI), the set of reforms introducing a participation income (PI) “produces a larger immediate impact on both inequality and poverty”. As the authors summarize, “[i]n achieving this greater impact the PI-focused package affects considerably more households, both positively and negatively: 43% of all households see a substantial gain and 21% a substantial loss, compared to 34% and 10% respectively with the SI-focused alternative.”
Other researchers have also recently used the EUROMOD microsimulation method to model the effects of basic income policies–including Malcolm Torry of the Citizen’s Income Trust (“A variety of indicators evaluated for two implementation methods for a Citizen’s Basic Income“) and, to more skeptical conclusions, the OECD (“Basic Income as a Policy Option: Can it add up?“).
The full working paper is free to download from ISER’s website:
Anthony B. Atkinson, Chrysa Leventi, Brian Nolan, Holly Sutherland and Iva Tasseva (June 2017) “Reducing poverty and inequality through tax-benefit reform and the minimum wage: the UK as a case-study,” EUROMOD Working Paper Series.
Reviewed by Caroline Pearce.
Photo: “The Poverty Trap…” CC BY-NC-ND 2.0 Neil Moralee (taken in Taunton, England)
by Kate McFarland | Aug 27, 2017 | News
The Economic Security Project (ESP), a two-year initiative established in December 2016 to fund projects related to the study and implementation of basic income in the United States, is preparing to host its first public conference.
The conference, called the Cash Conference, will take place on October 19 at the San Francisco Mint in San Francisco, California. Established in 1874, the San Francisco Mint is said to have held nearly one third of nation’s wealth in its heyday, according to the venue’s website. The mint ceased its operations in 1937, and now functions as an event venue.
ESP describes the Cash Conference as meeting to “reimagine what an economy built on the well-being of all of our [America’s] citizens could look like.”
We want to redefine what ‘work’ means and explore how a basic income could provide economic stability to Americans and fundamentally change society. How do we bridge the gap between the ways the job market is failing Americans today, and what it could look like tomorrow? Can we find a new system that provides access to opportunity for everyone and gives all of us the freedom to chart the course of our lives?
The conference will feature contributions from politicians, academics, entrepreneurs, artists, storytellers, and comedians.
Tickets and further details concerning the place and time are available on Eventbrite. The event is free; however, space is limited.
Reviewed by Russell Ingram
Photo (San Francisco Old Mint in front): CC BY-NC 2.0 Shawn Clover
by Andre Coelho | Aug 26, 2017 | News
Keith Ellison. Credit to: The Boston Globe.
Keith Ellison, a member of the US Congress from Minnesota and Deputy Chair of the Democratic National Committee, has expressed an endorsement for basic income on Twitter. His tweet posted on the 17th August 2017, is straightforward: “I am for guaranteed basic income. Who agrees? Who disagrees? Why?”
This is relevant not only because Ellison is a prominent politician in one of the two major parties in the United States, but also because the tweet was liked around 4500 times, shared 850 times and commented almost 1000 times, in less than five days.
Ellison himself did not join the conversation on his Tweet. However, many other basic income advocates joined the thread, including well-known writer and activist Scott Santens, who wrote: “we didn’t invent technology to make sure we always had a job”.
Ellison’s endorsement was immediately noticed by the Economic Security Project (ESP), a two-year initiative supporting basic income projects in the US, which released a press release on his statement on the 18th of August. ESP co-founder Dorian Warren said in the press release: “we are thrilled that basic income has the support of a bold, progressive leader like Keith Ellison”.
by Dave Clegg | Aug 22, 2017 | News
In an online interview, Olaf Michael Ostertag, a member of the German socialist party Die Linke , speaks with Professor Michael Howard, co-ordinator of USBIG in the U.S. and Punita who immigrated from India to Germany a decade ago. While Michael Howard has long been associated with the Basic Income movement in the U.S. and abroad, Punita has only recently become aware of the subject and has many questions, concerns and some very insightful observations on the subject. Olaf himself also has a long involvement in the BI movement in Germany and does an excellent job of bringing the initial, albeit modest, ongoing BI efforts of many different nations around the world into the conversation.
Olaf presents a most engaging discussion which, along with Michael’s depth of knowledge and insightful observations regarding UBI efforts both in his country and in others, and Punita’s sceptical but open minded and intuitive grasp of of the subject, all come together to make this interview a must see for any individual or group that wishes to learn more about Basic Income for themselves.
by BIEN | Aug 22, 2017 | News
Futurism reported on automation, robots, and universal basic income through the provision of a chart-article. Some of the information summarized by the chart includes that fact that as there are 4.73 robots working per 100 human workers in South Korea. The global average is 0.66 per 100 workers. That ratio is reported to be rising rapidly throughout the world. Also, with more robots, they become cheaper to implement. Workers in the developing world are most at risk of losing jobs due to automation.
The problem is not limited manufacturing, however. It includes diverse areas such as farm labor, construction labor, truck drivers, mailer carriers, and so on. The chart mentions that $2,600 per month as a UBI solution is being considered in Switzerland, which BIEN has reported on, and only $1,000 per year in Kenya.(same paragraph as above) The chart also describes the cases of Alaska, Namibia, and Harper Lee.
It ends with quotes from supporters of a UBI, including Martin Luther King, Jr., Bertrand Russell, Harris Levine, Jeremy Howard, F.A. Hayek, and Thomas Paine.
More information at:
Futurism, “Universal Basic Income: The Answer to Automation?“, Futurism, June 2017
