by Guest Contributor | Aug 24, 2018 | News
In an article published on medium, with the title “How Not to Bungle the Revolution”, Conrad Shaw, who is working at the Bootstraps project, a docu-series following the stories of 21 Americans receiving an unconditional income supplement for two years, explores the evolution of the discourse surrounding universal basic income (UBI) in relation to the Federal Job Guarantee.
Shaw addresses progressives, warning them that the Federal Job Guarantee (JG), an idea presented as an alternative to Basic Income, is actually misguided.Answering some common questions about UBI, he tries to demonstrate that what makes JG a more appealing solution is mostly appearance. This appearence is given by the perception that it would let people gain purpose from their job, wouldn’t make the government as huge as UBI would, wouldn’t subsidize bad jobs, wouldn’t create inflation, wouldn’t give money also to the wealthy and, mostly, that it is more politically feasible.
Shaw examines the former statements, explaining how UBI isn’t a free handout of money, because it’s a redistribution of what it has been gained through the use of common resources, how it doesn’t subsidize bad jobs, but gives contractual strength to employees. In Shaw’s words: “UBI is like an individual strike fund for every worker.” According to Shaw, it wouldn’t boost unemployment, because, among other reasons, it is within human nature “to grow, to live comfortably, to have new experiences, and to thrive. Nobody wants to stare at a wall in a crappy apartment for 80 years, eating cheap grocery food, just because it’s possible.”
Even if UBI is also directed toward the rich, he continues, it actually acts as a mean of redistribution from the income top to the bottom, and whilst JG would make people dependent from the government, UBI is a mean to make bureaucracy extremely leaner. A FG, on the other hand, would mean a great deal of increase in bureaucracy, and most importantly, leave a lot of open questions about the actual possibility of matching skills with jobs.
Shaw gives particular attention to the subject of political feasibility. JC, he says, may sound as more feasible, but it the mere continuation of an existing paradigm, since it hasn’t the innovative strength of UBI. It must not be proposed as an alternative to UBI, because it lacks its transformative power and wouldn’t bring the same degree of change. However, there is nothing forbidding their combination. UBI nonetheless needs to be the first step, the foundation of safety on which to build, to which later on possibly add the job guarantee, as their combination would not lead to additional costs, because they partially overlap, but would allow for the leveraging of the benefits.
He predicts that given the growth of the movement supporting UBI, it will be one of the main themes at the elections in 2020, and as more trials are completed and the problem of automation becomes clearer every day, the discourse supporting UBI will only gain momentum. Given that, he recommends not to compromise, as accepting a FG in lieu of a UBI would wreak that momentum.
More information at:
Conrad Shaw, “How Not to Bungle the Revolution”, Medium, June 12th2018
by Guest Contributor | Jun 29, 2018 | Opinion
Written by: Leah Hamilton, MSW, PhD
Democrats and Republicans don’t see eye to eye very often, but they can safely agree on one point: welfare doesn’t work. Liberals are concerned that an ever-shrinking social safety net reaches fewer and fewer families in need. Republicans worry that welfare benefits create dependence. They are both right.
The primary cash assistance program in the United States, Temporary Assistance to Needy Families, served 68% of low-income families in 1996. Today, only 23% of poor families receive assistance. This change has been largely brought about by the imposition of five-year lifetime limits (states are allowed to set lower limits) and stricter eligibility criteria. Welfare caseload reductions have been solidly linked to the rise of deep poverty in America, family strain and increased foster care placements. 1.46 million US households (including 2.8 million children) now live on less than $2 per person, per day (the World Bank’s measurement of extreme poverty).
Meanwhile, welfare eligibility rules designed to encourage independence have achieved the opposite effect. For example, though many states impose strict work requirements, states which loosen these rules actually see recipients move to higher wage, higher benefit work, presumably because they have the breathing room to search for a good job rather than take the first one that comes along. Similarly, in states with strict limitations on recipient assets, poor families are less likely to own a car, making it nearly impossible to maintain employment in areas without public transportation. Even worse, some researchers are discovering a “cliff effect” in which welfare recipients immediately lose all benefits (including child care assistance) after a small increase in income. As a result, many parents turn down promotional opportunities because they would be ultimately worse off financially. Any parent would make the same decision if it meant the ability to feed their children and afford quality childcare.
We must redesign this entire system. In the most prosperous nation in the world, it is ludicrous that children are growing up in the kind of deprivation we normally associate with developing countries. Simultaneously, we must ensure that no one is discouraged from growing their income or assets. One potential solution is a universal basic income, which would provide an annual benefit to every citizen. However, this idea comes with a hefty price tag and would either increase our national deficit or increase the marginal tax rate, both of which might be political non-starters. The simpler solution is a Negative Income Tax (NIT) which is potentially cheaper than our current poverty alleviation efforts. An NIT is a refundable tax credit which brings every household to the federal poverty level. The most effective way to do this is to decrease the credit slowly (for example, a $0.50 reduction for each $1.00 increase in earned income) so that there is never a penalty for hard work.
Researchers at the University of Michigan calculated what this might look like in practice. If a family had no income, their tax credit would be 100% of the poverty line ($20,780 for a family of three). If the family’s earned income increased to half the poverty line ($10,390), their tax credit would decrease to $15,585. The credit would phase out completely once the family’s income reached twice the poverty level ($41,560). This plan would cost roughly $219 billion per year and could be almost completely paid for by replacing most or all of our current poverty programs.
With this one simple policy, we can achieve many goals of both the left and right. Poverty would be eliminated overnight. Work disincentives would be removed. American bureaucracy would be significantly reduced. Families would be free to make financial decisions without government intrusion. And in the long run, we would save money. Childhood poverty alone costs the US $1.03 trillion (yes, trillion) per year. In the 21st century, eradicating poverty isn’t complicated. We’re just going about it in the worst possible way.
About the author:
Leah Hamilton, MSW, PhD is an Assistant Professor of Social Work at Appalachian State University. She received a BSW from Metropolitan State University of Denver, an MSW from the University of Denver and a PhD in Public Policy at the University of Arkansas. She served as a Foster Care Case Worker and trainer for five years in Denver, Colorado. Dr. Hamilton’s research interests include poverty, economic justice, and social policy.
by Florie Barnhoorn | Apr 12, 2018 | News
Credit Picture CC Flickr.com / Foam: Futures of the Universal Basic Income
Reyer Brons, editor-in-chief of Vereniging Basisinkomen (Association for Basic Income), the Dutch branch of the Basic Income Earth Network (BIEN), and also member of the Network for Political Innovation (NPI, a Dutch think tank), has, in recent months, collected about seventy objections that people might bring up in discussions about (the introduction of) an unconditional basic income (UBI). All objections are subdivided into twelve themes and provided with a short explanation and a refutation or relativisation.
The intention of the work is to give people some background information which can help them in debates about the UBI with supporters and opponents of the policy. As the complete work is rather comprehensive and written in Dutch, only the themes and objections will be presented in this article. An overview of all objections is given (unfortunately only in Dutch) on the website of the NPI with links to the full descriptions. The arguments are also published on the website of the Vereniging Basisinkomen, in a special category of objections (‘Bezwaren’).
In this article, a first example is presented, a short description of an argument with its concomitant explanation and relativisation. Then, some other themes and objections are listed.
For instance, one of the arguments under the theme ‘Implementation’, states “We cannot oversee the long-term effects”.
The objection is followed by a short explanation, that notes:
“It is probably true, that disadvantages of the introduction of a basic income will become obvious in time. However, it will be regarded as an acquired right by that time and therefore it is to be expected that negative developments will evoke opposition among the general public. For example, lowering the level of the basic income would lead to major problems, because many people will not be prepared to face the reduction.”
Subsequently a refutation is given:
“This type of argument is fatal for every policy change. Of course, there will be unforeseen effects, but what policy has none? There are many examples of unexpected consequences, but it did not stop progress. Who could have thought that the exploitation of gas fields in Groningen [a province in the north of the Netherlands] could cause serious earthquakes after decades of drilling? Or that fatal traffic accidents could increase again as a result of the introduction of the smartphone?
In the course of time, society will change in a variety of ways due to the introduction of the policy. Proponents look forward to experience with an unconditional basic income. In their eyes, the effects will have a strong positive influence on society. Furthermore, it is also possible to model the long-term effects (e.g. via micro simulation studies).
If undesirable long-term effects arise, further measures must be developed to counteract the unfavorable consequences. This also applies to the current welfare system. It must be understood that the adverse effects of the current system can hardly be tackled, until that system is thoroughly addressed. When economic conditions deteriorate in a given society, it cannot be ruled out that the basic income payment must be lowered, but the same applies to current benefits. On the other hand, it also cannot be ruled out that the payment will increase over time.”
All objections are listed below, arranged by theme:
1. Common misconceptions
- Basic income is a utopian dream or a fantasy
- Basic income is a hype or a cult
- Basic income means free money and that is not possible
- Basic income is a new and still immature idea
- Basic income is a new label for the same old social security system
- Basic income is unaffordable or antisocial
2. Values and philosophy of life
- Reciprocity is necessary for the legitimacy of the social state and its moral support, that means that an unconditional basic income cannot be solidary
- Having a paid job gives dignity, status and a sense of social integration, basic income will make people lazy
- With basic income, young people no longer take the trouble to study
- Only a small group of people is capable of handling freedom well
- Basic income leads to an increase in the use of alcohol and drugs
- Basic income is bad for the emancipation of women
- The basic income lowers the participation of women at the labor market (they might stay at home to look after the children or take up other unpaid care work)
- Talents remain unused
- Basic income promotes overpopulation
- People always want something more than they see with someone else, therefore they will begrudge someone a basic income
- The group consisting of free-riders, maladjusted or anti-social people will grow, if there is basic income for everyone
- Many are annoyed by the behavior of free-riders, profiteers and anti-socials. Those people are not worth to get a basic income. If they should receive the payment, it would be disastrous for its acceptance
3. Social vision and ideology
- The idea of a basic income goes in the direction of communism, and that is bad
- Basic income is a socialist idea, that cannot work
- It is a reprehensible neoliberal idea
- Basic income creates an undesirable class distribution in society or a strengthening of it
- Basic income increases the chance of ghetto formation
- Basic income increases the power of the state and makes citizens passive and dependent
- Basic income requires unjust redistribution and is actually just theft
- Basic income is a Trojan horse, as soon as it is introduced, massive savings on government spending will be realized
4. Economy
- Basic income is unaffordable
- Basic income does not use sophisticated information and is therefore cumbersome and limited in its goals
- A basic income causes a huge inflation
- Introduction of the UBI will lead to higher taxes and that is bad for innovation and industry
- Basic income worsens the position of the Netherlands on the international market
- Basic income will boost the informal economy, illegal transactions and fraud
- Basic income promotes consumption and is therefore a catastrophe for the environment
- Basic income means that fewer people will accept work, hence the economy will stagnate or shrink
5. Job market
- Nobody wants to accept unpleasant work after the introduction of an UBI
- Many people will be satisfied with the basic income payment
- The loss of income due to unemployment will have a much greater effect with a basic income than in the current situation without a basic income
- If you give people a basic income, that means that you let them down
- Paid work is no longer necessary, so the meaning of work will ebb away. Which fulfilling, decent activity will replace it?
6. Government and bureaucracy
- Basic income makes us all too dependent from government
- The provision of cash to people is not a task for the government
- A basic income turns us all in benefit claimants
- Basic income will never be high enough in order to eliminate all bureaucracy
- Basic income promotes corruption of the government
7. Borders and migration
- The Netherlands on its own is too small for a basic income
- Basic income promotes immigration, especially of economic refugees
- Basic income is discriminatory for foreigners, who want to settle here, if the payment is only for residents
- Basic income promotes unwanted emigration
- Basic income promotes the closing of borders
8. An unconditional basic income will not solve the really important problems
- People with a lot of debt are no better off with a small basic income
- The growing inequality will not be resolved
- Introduction of an UBI is not good for the environment
- It is a solution from the system world, problems in the real world will not be solved
9. Interests
- Trade unions lose their position of power and are therefore against the policy
- Employment at social security agencies is at stake
- Basic income means a radical change in our common live as a society, which is of no interest for the ruling elite
- Most people don’t like the idea of an unconditional basic income
10. Procedures and institutions
- It is not in our hands, it is up to other people to decide on basic income
- The policy is too big for us to handle, we only have four years as a government
- Firstly, we have to do this and then that …, there are so many urgent problems that need to be addressed. The basic income case removes more important reforms from the political agenda
- The design of existing experiments is too small, they can’t tell anything about the real effects of a basic income
- When an UBI is implemented, and it fails to succeed, we can’t get rid of it anymore
- Anyway, introduction of the policy in our country is impossible
11. Amendment and modification
- Political decision making always leads to watery compromises that make our lives worse, not better
- Under the flag of a universal basic income, we introduce a very different policy
- People who really need a basic income will not benefit, others will benefit from it, rather than those for whom it is intended
12. Implementation
- We should not start with the policy, the introduction of a basic income is far too complex
- A basic income can’t be properly phased in, because if we do, we will have two concurrent welfare systems, which might lead to a lot of nasty implications
- We start enthusiastically with the introduction of the policy, but ignore all warnings pertaining to possible implementation problems
- We cannot oversee the long-term effects of a UBI
The reader will notice that some objections are in conflict with each other. For instance, some people may view an unconditional basic income as a ‘communist’ or ‘socialist’ idea, while at the other end of the political spectrum, it is considered as ‘neoliberal’ policy. The idea is rejected for all of these reasons. After all, opposition to the basic income comes from different angles. The same is true for immigration. One person might say that a basic income promotes immigration, whereas another thinks that it inhibits the influx of immigrants.
by Guest Contributor | Mar 1, 2018 | Opinion
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)
by Andre Coelho | Feb 2, 2018 | News
The Council of Europe Assembly voted on 23 January 2018 in favour of a Resolution concerning basic income. A clear majority of the participants voted in favour of the policy (52%), while 36% voted against it and 13% abstained.
With this result, the Council of Europe has adopted the Resolution’s text. The latter was based on a report delivered by the Committee on Social Affairs, Health and Sustainable Development (on the 5th of January 2018), which states the case for a basic citizenship income. In this short research report, the basic income policy is presented in general terms, justified mainly in its ability to reduce poverty and poverty-related social problems in welfare states, mainly focused in European countries. The report also defends the basic income policy on the grounds of it being able to remove present-day disincentives to work of most conditional means-tested social assistance programs in the referred countries, while reducing bureaucracy and stigmatization associated with these.
The Council of Europe had already released another report in 2015, making a close connection between living with dignity in the 21st century and basic income. The result of this vote from the Council of Europe’s Assembly generally reflects recent efforts to survey the opinion of people regarding basic income, such as the European Social Survey 2016 Round 8 results. A broad comparison shows that positions towards basic income are divided, but with a tendency to being open to the idea.
More information at:
Josh Martin, “EUROPE: Council of Europe releases largely pro-basic income report”, Basic Income News, September 7th 2015
Patrick Hoare, “EUROPE: European Social Survey (ESS) reveal findings about attitudes toward Universal Basic Income across Europe”, Basic Income News, January 20th 2018
