by Guest Contributor | Jul 7, 2016 | Opinion
Introduction: the minimum income
In Italy, the debate on basic income has lasted for almost 20 years. Back in August 1997, the ECN.org website published my pamphlet titled “Ten thesis on citizenship income”. This text, which saw a successful circulation, especially underground, was re-edited in the book “Tute Bianche” [1], presented an overview of the Italian debate regarding the introduction of a basic income, a proposal that had begun to circulate in the neo-worker environments in the previous 2 years [2].
Twenty years later, it should be acknowledged that the definition of “citizenship income” has created more negative effect than positive. At that time, the phenomenon of migration had not yet assumed today’s proportions, although it had started to see an uptick. So, guiltily, the term “citizenship” was used without thinking that the concept of “citizenship” is terribly ambiguous. In fact, it can be used in an ethical and philosophical framework for designating that every human being is born as a “world citizen”, regardless of his or her nationality of origin. But today, the concept of citizenship is increasingly tied to the legal-national sphere within a grid of limited rights ius soli, not be extended to all those who were born elsewhere. From this point of view, the idea of a “citizen’s income” can only be misunderstood as a limited proposal to whomever has that specific nationality, in contradiction with what is our idea of an individual “right to income”. The term “basic income” appears therefore more appropriate and inclusive.
There are now numerous proposed pieces of legislation in Italy and abroad, as well as policy initiatives and declarations in favour of the introduction in Italy of some form of income support independent of employment status.
There are also numerous different interpretations of such a measure. In the cultural political debate promoted by Bin-Italy [3], which for years has promoted a cultural and socio-political campaign aimed to introduce a guaranteed minimum income (basic income), it is necessary to define certain parameters, to reduce the interpretive confusion that has now reached a critical level, making it unclear what a “citizen’s income”, “minimum income” or “a dignity income” actually is (to use the most common names).
To actually talk about “basic minimum income” (we use this term in a broad and provisional sense), we believe that at least 5 criteria have to be verified:
- Individuality criterion: the minimum income must be paid at the individual level and not filtered through family members. From this we can discuss if children under 18 years enjoy this right or not.
- Criterion of residence: the minimum wage must be paid to all individuals who, residing in a given territory, live, rejoice, suffer and participate in the production and social cooperation regardless of their marital status, gender, ethnicity, religious belief, etc.
- Criterion of the maximum extension of unconditionality: the minimum income must be provided by minimizing any form of compensation and/or obligation, maximizing free individual choice.
- Access criteria: the minimum wage is paid in its initial phase of experimentation to all individuals who have an income below a certain threshold. This threshold may, however, be greater than the relative poverty line and converge toward the median level of the personal distribution of existing income. Moreover, this level of income must be expressed in relative terms, not absolutely, so that increasing the minimum threshold (as a result of the initial introduction of the measure) the range of beneficiaries will increase continuously until it reaches universality.
- Criteria for funding and transparency: the modalities of financing of minimum income must always be set out on the basis of economic viability studies, detailing where resources are obtained based on an estimate of the necessary costs. These resources have to fall on general taxation and not on other assets of origin (such as, for example, social security contributions, sale of public assets, privatization proceeds, etc.)
The criteria 1, 2, 5 should not be amendable, while criteria 3 and 4, are expressed in relative terms, may be subject to additional definitions depending on the context of reference, but within the principle directives we have just outlined.
The basic income as a primary income and therefore unconditional
The basic income today is a good and just idea. The reasons for this claim are inspired by the forms of the social composition of labor and the modalities of accumulation and exploitation which are today dominant.
In this regard, it is necessary to propose a cultural leap before we take the political leap and affirm that Basic Income is a primary distribution variable: the basic income must intervene, in fact, directly in the income distribution of productive factors, such as salary (which remunerates certified work hours), profit (which rewards the business entity), or rent (which derives from a property right). Primary distribution variable means that it is not a re-distributive variable: it directly occurs at the level of the balance of power and social relations within a certain process of accumulation. Despite it, a redistribution of income, which occurs at a later stage, is the outcome of a second level of indirect distribution, an extra market level, thanks to appropriate discretionary economic policies.
If basic income is remuneration, the question is what is the level of pay. To answer this it is necessary first to analyze what the main sources of exploitation are in contemporary capitalism. More and more studies confirm that today life itself, in every daily event, is the productive factor par excellence [4]. If we take into account the acts of daily life that characterize our existence, they can be categorized into four types: labor, work, leisure, entertainment/games. Today it is not only labor that is the basis of added value, but also the time of creation (opus/work), the otium/leisure time, entertainment time. These are all included in a growing and continuous enhancement mechanism.
The classic dichotomy of the Fordist paradigm between labor and non-labor time, between production and consumption, between production and reproduction are now partially obsolete. It is the result of a historic process of structural changes in manufacturing processes and labor organization, which marked the transition from a material Fordist capitalism to a bio-cognitive and financialized capitalism. Today, wealth production derives, at the same time, from absolute surplus value and relative surplus value extraction, where for absolute surplus value we intend the existence of a sort of primitive accumulation in capitalist organization based on capital employment and on private property. The result is the change of the relationship between productive and unproductive labor. What in the material Fordist capitalism was considered unproductive (i.e. no production of surplus value and therefore not remunerable), has now become productive, while the remuneration remained anchored to the one of the Fordist era (the salarization crisis). As a result, we are facing new ways of valorization such as “dispossesion” (Harvey [5]) and “extraction”, to whom no remuneration is applied, according to the dominant rules (legal, industrial relations, uses and so on).
It is no coincidence that unpaid labor is sharply increasing from those sectors in which more has been invested by the transformations of the enhancement methods and the adoption of the new linguistic-communicative technological paradigm (cognitve-relational activities).
Against this background, one proposal that could be advanced to counter this phenomenon of unpaid labour (i.e., basically “slavery” with another name, even though for most it is not perceived as such) is to proceed with its salarization. But we ask yourselves: is it possible? If the answer is yes, then the basic income should be not necessary
The vagueness of labor time
This question opens up a second theoretical problem – both political and methodological. When technological and organizational transformations favor the spread of increasingly intangible productions with a high degree of non-measurability, when value is created by a whole range of life activities, from learning processes, to social reproduction [6] and networks of relationships, then arises the problem of “measure.”
The theme of the measure is linked to the calculation/quantification of labor productivity. Unlike in the past, where this calculation was possible because employee labor activity could be measured in hours and by an equally measurable amount of production on an individual basis, productivity today has changed shape: it depends on the increasing use of new forms of scale economies: learning and network economies. These are scale economies no longer static but dynamic, because it is the flow (continuously) of time to allow for growth and learning of social skills as well as social reproduction and thus increase productivity, whose effects can be seen no more on individual basis but on social one. Both learning and networking, in fact, need a social context and a social cooperation. The productivity in bio-cognitive capitalism is therefore primarily social productivity or, with reference to the role of knowledge, general intellect.
Learning economies are based on the generation and dissemination of knowledge. Knowledge is not a scarce resource, such as material goods, but abundant: the more you swap, the more it spreads, the more it grows, with a highly productive cumulative mechanism: cumulativeness requires relationships and social networks. Learning and network are two sides of the same coin: if knowledge is not spread through relational over individual processes, it is not economically productive. Only if you develop social cooperation and general intellect does it become productive.
We are not talking in the traditional sense of the term co-operation, that is, “join forces” but co-operation, namely the interaction of individual operations that only achieve synergy in the common processes of accumulation and thus of surplus value creation. These relational activities often hide forms of hierarchy and exploitation, whose value is difficult to measure, not only on individual basis but collectively as well. If traditional factory productivity was based on precise technical mechanisms that allow you to measure individual productivity in the labor places today, then the productivity of social cooperation cannot be measured in terms of individual productivity.
Not just individual productivity but also the same product of social cooperation is not measurable. When you are producing symbols, languages, ideas, forms of communication, social control, what kind of measurement can we take? Every relationship between output value, its production time (measured in hours) and its remuneration (measured in wages) becomes almost impossible or very difficult and subjective.
The crisis of the labor theory of value derives from the fact that the individual contribution today is not measurable and the output tends to escape a unit of measurement, as production tends to become immaterial. And this takes place in a context in which the measure of value is no longer constrained by a scarcity factor. As was pointed out earlier, learning (knowledge) and network (space) are abundant inputs, theoretically unlimited (especially if we consider the virtual space), as the human nature. A theory of value based on the principle of scarcity, such as the one implicit in the theory of free market founded on the law of supply and demand, no longer has any economic and social relevance. It is only artificially perpetuated in market dynamics which have continuously defined power relationships. Paradoxically, the only theory of value that appears adequate to contemporary bio-cognitive capitalism, the labor theory of value, is not able to provide one measure.
How to give a measure to social cooperation and general intellect?
It is a question that can only surmise some answers. One possible aspect to consider has to do with the sphere of financialization. The pervasive and central role of financial markets, such as investment financing tools, privatization of social welfare and the form of partial compensation of the high content of knowledge labor, has affected not only the sphere of realization but also that of production. In capital gains, the speculative activity partially derives from the value produced by the cognitive-relational living labor. It is in financial markets that we can roughly see the implementation of the process of expropriation of social cooperation and of general intellect.
This process is not immediate and direct. It is often handled by the dominant bio-power management and the hierarchical relationships that continually redefine the property structure and market structure.
From this point of view, basic income, as a primary income, becomes even more a tool of direct re-appropriation of the wealth that is generated by the common life time put to labor.
The inadequacy of wages form at the time of the body-mind
The order of discourse leads us to say that the traditional salary structure is no longer adequate, it does not fully capture the transformations in the valorization process. The classic wage structure can still be useful in those parts of the overall production cycle in which there is a measure of the value of labor in term of time. But it cannot be generalized. From a theoretical point of view, this issue leads to the need to review, rethink and redefine the Marxian labor theory of value.
The inadequacy of the wage form as remuneration of all the productive life, leads us to say that we need another way of remuneration (in addition to the wage forms where these are measurable). From this point of view, basic income is something structurally different from salary (though potentially, in the future, convergent); it cannot simply be understood as an extension of the wage form, because it is necessary to take into account the quantitative and qualitative change that new technologies have generated.
In particular, I would like to stress the relationship between human and machine.
In the sixties, the relationship between human beings (with his body, his nerves, his muscles, his brain, his heart, his eros) and the machine was a relationship between separate domains: on the one hand, the human being, living labor, on the other hand, the machine, the dead labor. The relationship between life and death was clear, physically traceable. From the point of view of human inner, the machine was something external and tangible, separate from himself.
From the nineties to the present, such a separation is no longer as clear. The machine becomes mechanic and loses some of its materiality: the old Tayloristic machine becomes increasingly linguistic and relational. In presence of linguistic-communication technologies (ICT), only the support is material (hardware) but the core depends more and more on cognitive-relational human faculties processes. The use of language as the main tool of the mechanic operation changes the relationship of interdependence between human and machine typical of Taylorist technologies. In digital technologies, the despotism of the machine is less prevalent.
But is this hybrid between man and machine that takes direction? And is it the machine that is humanized or rather the human becoming mechanical? That is the challenge of bio-robotic.
Consider the web 2.0 and the recent spread of social media. “The profit of advertising agencies, just like the profit of all firms in web 2.0, depend almost entirely on the ability to develop control technologies. Social control is then presented as the only way to innovate and develop in the future. But what is checked, exactly, today? Our identities and how they change. “The profiling algorithms of digital technologies feed on human biodiversity that it is itself channelled and integrated “in a Panopticon space, completely transparent, where we are called to act publicly”. See Google Pagerank, for instance.
Control of the body-mind becomes today (in agreement with the unpaid labor) the new enhancement border. Even if such activities were salarized or simply paid otherwise (which is not), our freedom of choice would be conditioned.
An unconditional basic income is a tool not only to recognize that our life is an active part (though often not aware) of contemporary exploitation but also able to exercise the right to choice, that is towards an individual and social self-determination: the right to choose our destiny as far as social participation is concerned, and also the right to refuse bad and indecent labor conditions. And this cannot be allowed, otherwise there is the risk to break the fragile balance between social control and the supine condition of subordination. From this point of view an unconditional income is subversive and that is the political struggle.
Author: Andrea Fumagalli (Università di Pavia – BIN Italia)
Andrea Fumagalli note for the conference: “Future of Work” Zurich 4 May 2016
[1] A. Fumagalli, M. Lazzarato (eds), Tute Bianche, Derive-Approdi, Roma, 1999
[2] M. Bascetta, G. Bronzini (eds), La democrazia del reddito universale, Manifestolibri, 1997. Il tema di un reddito sganciato dal lavoro, etichettato con il termine salario sociale era già stato patrimonio del dibattito degli anni Settanta a parte dalla formulazione del rifiuto del lavoro (salariato).
[3] See www.bin-italy.org
[4] A. Fumagalli, C. Morini, “Life put to work: towards a theory of life-value”, in Ephemera, vol. 10, 2011, p. 234-252
[5] D. Harvey, “The new imperialism. The accumulation by dispossession”, in Socialist Register, 2004
[6] C. Morini, “Riproduzione sociale” in C. Morini, P. Vignola (eds), Piccola Enciclopedia Precaria, Milano X, Milano, 2015
by Guest Contributor | May 10, 2016 | Opinion
To tackle spiraling deflationary trends, governments and central banks will soon have no other choice but to resort to printing money and giving it directly to the people.
Article by John Aziz, originally published on azionomics.com under the title “Universal Basic Income Is Inevitable, Unavoidable, and Incoming.”
The last time I saw universal basic income discussed on television, it was laughed away by a Conservative MP as an absurd idea. The government giving away wads of cash responsibility-free to the entire population sounds entirely fantastical in this austerity-bound age, where “we just don’t have the money” is repeated endlessly as a mantra. Money, they say, does not grow on trees. (Only as figures on the screen of a computer).
In this world, universal basic income seems like a rather distant prospect. Yes, there are some proposals, like Finland which is set to start local experiments in 2017 and Switzerland which is holding a referendum on universal basic income next month. I don’t expect the vote to pass. The current political climate is just too patriarchal. We live in a world where free choice is unfashionable. The mass media demonizes the poor as feckless and too lazy and ignorant to make good choices about how to spend their income. Better that the government spend huge chunks of GDP employing bureaucrats to administer tests, to moralize on the virtues of work, and sanction the profligate.
But this world is fast changing, and the more I study the basic facts of economic life in the early 21st century, the more inevitable universal basic income begins to seem.
And no, it’s not because of the robots that are coming to take our jobs, as Erik Brynjolfsson suggests in his excellent The Second Machine Age. While automation is a major economic disruptor that will transform our economy, assuming that robots will dissolve jobs entirely is just buying into the same Lump of Labour fallacy that the Luddites fell for. Automation frees humans from drudgery and opens up the economy to new opportunities. Where once vast swathes of the population toiled in the fields as subsistence farmers, mechanization allowed these people to become industrial workers, and their descendants to become information and creative workers.
As today’s industries are decimated, and as the market price of media falls closer and closer toward zero, new avenues will be opened up. To that end, Canada has seen a surge in startups in recent times. Towns that were once oblivious to people in the country have become a melting pot for fresh Fintech startup ideas. Case in point is this FinFund Media app that aims to simplify getting loans in The Pas for individuals by leveraging the power of local rural communities to send and receive money. Similarly, new industries will be born in a never-ending cycle of creative destruction to keep the economy churning. Yes, perhaps universal basic income will help ease the current transition that we are going through, but the transition is not the reason why universal basic income is inevitable.
Welcome to the world of hyperdeflation
So why is it inevitable? Take a look at Japan, and now the eurozone: economies where consumer price deflation has become an ongoing and entrenched reality. This occurrence has been married to economic stagnation and continued dips into recession. In Japan – which has been in the trap for over two decades – debt levels in the economy have remained high. The debt isn’t being inflated away as it would under a more “normal” rate of growth and inflation. And even in the countries that have avoided outright deflationary spirals, like the UK and the United States, inflation has been very low.
The most major reason, I am coming to believe, is rising efficiency and the growing superabundance of stuff. Cars are becoming more fuel efficient. Homes are becoming more fuel efficient. Vast quantities of solar energy and fracked oil are coming online. China’s growing economy continues to pump out vast quantities of consumer goods. And it’s not just this: people are better educated than ever before, and equipped with incredibly powerful productivity resources like laptops, iPads and smartphones. Information and media has fallen to an essentially free price. If price inflation is a function of the growth of the money supply against growth in the total amount of goods and services produced, then it is very clear why deflation and lowflation have become a problem in the developed world, even with central banks struggling to push out money to reinflate the credit bubble that burst in 2008.
Much, much more is coming down the pipeline. At the core of this As the cost of superabundant and super-accessible solar continues to fall, and as battery efficiencies continue to increase the price of energy for heating, lighting, cooking and transportation (e.g. self-driving electric cars, delivery trucks, and ultimately planes) is being slowly but powerfully pushed toward zero. Heck, if the cost of renewables continue to fall, and advances in AI and automation continue, in thirty or forty years most housework and yardwork will be renewables-powered, and done by robot. Water crises can be alleviated by solar-powered desalination, and resource pressures by solar-powered robot miners.
And just as computers and the internet have made huge quantities of media (such as this blog) free for users, 3-D printers and disassemblers will push the production of stuff much closer to free. People will simply be able to download blueprints from the internet, put their trash into a disassembler and print out new items. Obviously, this won’t work anytime soon for complex objects like smartphones, but every technology company in the world is hustling and grinding for more efficiency in their manufacturing processes. Not to mention that as more and more stuff is manufactured, and as we become more environmentally conscious and efficient at recycling, this huge global stockpile of stuff acts as another deflationary pressure.
These deflationary pressures will gradually seep into services as more and more processes become automated and powered by efficiency increasing machines, drones and robots. This will gradually come to encompass the old inflationary bugbears of medical care, educational costs and construction and maintenance costs. Of course, I don’t expect this dislocation to result in permanent incurable unemployment. People will find stuff to do, and new fields will open up, many of which we are yet to imagine. But the price trend is clear to me: lots and lots of lowflation and deflation. This, ultimately, is at the heart of capitalism. The race for efficiency. The race to do more with less (including less productivity). The race for the lowest costs.
I’ve written about this before. I jokingly called it “hyperdeflation.”
Global Japanization
And the obvious outcome, at the very least, is global Japan. This, of course, is not a complete disaster. Japan remains a relatively rich and stable country, even after twenty years of deflation. But Japan’s high level of debt – and particularly government debt – does pose a major concern. Yes, as a sovereign currency issuer borrowing in its own currency the Japanese government runs no risk of actual default. But slow growth and deflation are stagnationary. And without growth and inflation, the government will have to raise taxes to cover the deficit, spiking the punchbowl and continuing the cycle of debt deflation. And of course, all of the Bank of Japan’s attempts at reigniting inflation and inflating away that debt through complicated monetary operations in financial markets have up until now proven pretty ineffectual.
This is where some form of universal basic income comes in: ultimately, the most direct stimulus for lifting inflation and triggering productive economic activity is putting cash in the people’s hands. What I am suggesting is nothing less than printing money and giving it away to people – as opposed to trying to push it out through the complicated and convoluted transmission mechanism of financial sector lending. This will ultimately become governments’ major backstop against debt deflation, as well as the temporary joblessness and economic inequality created by technological acceleration. Everything else, thus far, has been pushing on a string. And the deflationary pressure is only going to become stronger as efficiency rises and rises.
Throw enough newly-created money into the economy, inject inflation, and nominal tax revenues can rise to cover the debt load. Similarly, if inflation gets too high, cut back on the money-creation or take money out of circulation and bring inflation into check, just as central banks have done for the last century.
The biggest obstacle to this, in my view, is the interests of those with lots of money, who like deflation because it increases their purchasing power. But in the end, rich people aren’t just sitting on hoards of cash. Most of them do have businesses that would benefit from their clients having higher incomes so as to increase spending, and thus their incomes. Indeed, in a debt-deflationary spiral with default cascades, many of these rentiers would face the same ruin as their clients, as their clients default on their obligations.
And yes, I know that there are legal obstacles to fully-blown ‘helicopter money‘, chiefly the notion of central bank independence. But I am an advocate of central bank independence, for a variety of reasons. Indeed, I don’t think that universal basic income should be a function of fiscal spending at all, not least because I think that dispassionate and economically literate central bankers tend to be better managers of monetary expansion and contraction than politically motivated – and generally less economically literate – politicians. So everything I am describing can and should be envisioned as a function of monetary policy. Indeed, what I am advocating for is a new set of core monetary policy tools for the 21st century.
by Guest Contributor | May 5, 2016 | News
Sunday #41 March (April 10th), place de la République in Paris. Hundreds of people were present to discuss the basic income and other topics related to employment. The French Movement for Basic Income attended the meeting thanks to the invitation of the #NuitDebout movement. This citizens’ movement was created following demonstrations against the proposed French labour reforms and has since organized several popular gatherings in Paris as well as in dozens of towns in France and abroad.
Employment, housing, refugees, feminism, participatory democracy, constitution. Many subjects, concerns and values were discussed every day at the Place de la République since March 31. These discussions demonstrated the real concerns of citizens without the filter of the media. With the revelations from the Panama Papers, public institutions, particularly political parties, do not seem to inspire much confidence.
#MFRB Debout
On this #41 March (lets accept this new calendar!) two dozens of MFRB members from all over France have met on the Place de la République to take part on the first day of the convergence of struggles. The atmosphere was rather cordial. Questions and answers were exchanged with passers-by all day long. A conference was held with the MFRB, the Réseau Salariat network and the Economist and basic income supporter Baptiste Mylondo.
Workshops, co-facilitated by members of the MFRB and the network Réseau salariat, have enabled hundreds of people to discuss the basic income, living wage and on matters related to work as well as education, equal opportunities, free time, and many other topics. By late afternoon, a debate enabled participants to better understand these topics.
Conference about work, basic income and living wage
At the beginning of the afternoon, Nicole Teke, international coordinator of the MFRB, introduced the conference presenting the French Movement for a Basic Income, the notion of basic income and how the idea is currently progressing in France, Europe and the world. Past experiments in Brazil, Namibia and India were also presented, the results of which in terms of health, schooling, women’s emancipation and economic recovery are very convincing.
Benoît Boritz, member of the CGT trade-union (General Confederation of Labour), journalist and author of the book Coopératives contre capitalism (“Cooperatives against capitalism”) has presented examples of companies that are self-managed by their employees in forms of cooperatives (SCOP). This form of organisation has been gaining ground since 2010, as a number of companies have chosen it for its greater capacity to ability adapt to an evolving economy. The SCOP often aims at integrating ecological issues in their production and daily operations. Since 2013 the SCOPs’ number has grown considerably, and today they employ about 51,000 workers.
Following this, Baptiste Mylondo, member of Utopia and teacher in economy and political philosophy presented his counterproposal to the labour reforms, in five articles:
Article 1: Recognize everyone’s work by giving everyone the status of producers and contributors, whether one is unemployed or employed, active or considered inactive.
Article 2: Free work from the constraint of employment. “We all work every day as volunteers in a large organisation called society” said Baptiste Mylondo.
Article 3: Establish a sufficient citizen’s income to a level equivalent to the poverty line calculated at 60% of median income, i.e. 1,000€.
Article 4: Set up a cooperative working model to free us from the grip of capitalism and exploitation.
Article 5: Free our lives of work’s temporal control by a reduction of working time and the creation of an unconditional right to chosen part-time work.
In conclusion, Baptiste Mylondo specified his thoughts and suggested what could be the first reform to be associated with the introduction of a basic income:
“I speak about a sufficient income, not a minimum income. About a space of acceptable inequalities. To escape poverty and exploitation, to create a society where everyone can participate in democratic life. I am in favor of a ratio of 1: 4 between the lowest income and the highest one.”
Finally, Stéphane Simard, member of the network Réseau Salariat, presented the living wage project – different from basic income, even though some similarities can be noticed. Starting from 18 years old, this life-long living wage is based primarily on the evolution of labour in the twentieth century, mainly through the creation of the general scheme of Social Security in 1945. The amount could increase by validation of qualifications – in regard to the individual’s contribution to the society in the previous years. This living wage would be financed through an overhaul of the contributions’ system. Each company would contribute with 60% of its added value to the salary fund, meaning the same 1250 billion now paid for salaries, and another part would be paid into an investments office that would be dedicated to financing projects as an alternative to bank loans.
Convergence of struggles
Dissociation of labour and income, the need to change subordination to work, the willingness to recognize everyone’s contribution to the common good, the recognition of social utility, the interest to the SCOP initiatives… The convergence of struggles supported by the #NuitDebout from the very beginning of the movement has definitely enabled basic income to take a prominent place in the public debate.
To see the photos of the event: https://www.flickr.com/photos/revenudebase/
Collectively written by the MFRB – translated by Celine Le Carpentier
