OPINION: The Basic Income Idea Spreads in the American Continents

A very positive sign that the Unconditional Basic Income proposal is advancing in the Americas is that a “Ley Marco de La Renta Básica”, “Draft Basic Income Framework Law”, was approved by the General Session of the Parlatino, Parlamento Latino Americano [Latin American Parliament], held last November 30th, 2012, in Panama City. After three preparatory meetings of the Commission of Economic Affairs of the Parlatino in Aruba, Curacao and Buenos Aires, with the cooperation of the Representatives Rodrigo Cabezas Morales, from Venezuela, President of the Commission, Maria Soledad Vela Cheroni, from Ecuador, Ricardo Berois, from Uruguay, and myself, during which the proposal was discussed, it was finally presented as a model for all the parliaments of all 23 nations of Latin America and the Caribbean.

This Ley Marco de la Renta Basica takes into account what is considered in the Brazilian Law, approved by the National Congress, by all parties, both in the Federal Senate, in 2002, and in the Chamber of Deputies, in 2003, and then sanctioned by President Luiz Inácio Lula da Silva in January 8th, 2004: The Citizen’s Basic Income will be introduced step by step, under the Executive criteria, taken into account first those most in need, such as the Bolsa Família Program does.

The Brazilian population in 2013 is around 194 million inhabitants. According to the Bolsa Família Program, all families with a monthly income per capita up to R$ 140.00 can benefit from the program with the following rules:

If the per capita family income is below R$70.00 per month, the initial basic benefit to the family is R$ 70.00. In addition, for all families with income per capita below R$ 140.00 per month, they have the right to receive R$ 32.00, R$ 64.00, R$ 96,00, R$ 128.00 or R$ 160.00 if the family has, respectively, one, two, three, four or more children up to the age 15 years and 11 months, plus R$ 38.00 or R$ 76.00 if the family has one or two adolescents, respectively, from 16 to 18 years of age.

There are some conditionalities: if the mother is pregnant, she must do the pre-natal health exam in the Public Health System of the region where she lives. The children up to six years of age must be taken by their parents to the Health System to take the necessary vaccines, according to the Health Ministry’s calendar. The children aged seven to 15 years and eleven months must be in school at least 85% of the classes. The adolescents aged 16 to 18 must attend at least 75% of the classes in school.

In January 2013 there were 18.491.302 families in Brazil with per capita income up to R$ 140.00 per month that, therefore, would be allowed to get the benefits of the Bolsa Família Program. By March 2013, there were13.872.243 families enrolled in the Bolsa Família Program that is 75% of those who, by law, are entitled to enroll in the program. Since there are around 3.5 people in each family among the relatively poor, we may say that almost one fourth of the Brazilian population of 194 million today benefits from the Bolsa Família Program.

Since June 2011, President Dilma Rousseff has launched the Active Search process through which all levels of government and social organizations of all kinds should help in finding those families with the right to have the Bolsa Família benefit and that have not been identified and enrolled in the program yet. Since March, 2013, all families enrolled in the Bolsa Família program with at least one child up to 15 years and eleven months of age whose monthly family income, plus the Bolsa Família benefits, does not reach the sufficient to provide at least R$ 70.00 per capita, the Federal Government, through the so called Brasil Carinhoso or Brazil Care Program, will provide what is needed to complete the monthly R$ 70.00 per capita to the family. Through this measure the government is trying to guarantee that all Brazilian families, from now on, have at least R$ 70.00 per capita per month.

One day, I hope in the near future, we will be able to make the transition from the Bolsa Família Program towards the Citizen’s Basic Income, not only in Brazil, but in all countries of the three continents of the Americas.

Link to the Draft Basic Income Framework Law approved by the Parlatino:
https://www.usbig.net/papers/Palestra%20USBIG2013_English.doc

Italy: 5 Star Movement and the confusing proposal of a citizen's income

[by Sabrina Del Pico – BIN Italia]

In January 2013, a few weeks before general elections, Beppe Grillo, the colourful leader of Movimento 5 Stelle – M5S (5 Star Movement) declared: “The first thing we will do, after entering the Parliament, is to introduce a citizen’s income for those who lost their jobs or do not have a job”. During the campaign for the national Parliament M5S presented its agenda including 20 points, the second of which was what Beppe Grillo improperly called a citizen’s income.

That term is usually used synonymously with the term basic income for an unconditional income given to all without any means test or work requirement. Grillo instead used it essentially as a new name for unemployment insurance conditional on readiness to accept a job if one becomes available. Grillo himself said in a recent interview (in Italian), “the employment offices will offer people one, two, three jobs. If they don’t accept those jobs they will lose the benefit.” He did not even clarify whether the job offer must be appropriate for the individual’s skills.

M5S won an astonishing victory. It emerged as Italy’s biggest single party in the lower chamber with 8.7 million over, nearly a quarter of all votes cast. Its leader did not eat his words pronounced during the electoral campaign and went on talking about the introduction of a what he calls citizen’s income as one of the most important actions to be taken.

If on the one hand, it is unprecedented that Italian mainstream politicians put on their agenda measures addressing citizens’ economic conditions; on the other hand it added confusion to political language and therefore also to concepts and outcomes. See the link below for an article misunderstanding Grillo’s use of the term citizens income. M5S’ proposal considers a measure that provides unemployed with €1000 a month for 3 years. It is a quite vague proposal as regards the implementation process but as one point: the measure is entirely conditional to availability for work or some kind of commitment to a reintegration trajectory. It is clear, therefore, that what they call a citizen’s income is actually a kind of unemployment benefit, either contributory or non-contributory. This is not a mere linguistic issue. It actually hides – or reveals, according to the standpoint – an inadequate and shallow knowledge of welfare state policies by mainstream politics, which implies the risk to implement a workfare measure passed off as a basic income.

Nevertheless, this proposal opened a lively debate in the mainstream politics about the necessity to provide citizens facing economic problems with some kind of income support. Nearly all Italian political parties are now aware that the issue of introducing an income support scheme is an inescapable fact.

As a matter of fact, in July 2012, BIN Italia, along with many associations and grassroots organisations, already launched a campaign to propose a popular initiative bill on guaranteed minimum income in Italy. The campaign, which ended in December 2012, was a great success. It reached its target to collect 50,000 signatures, and therefore the popular initiative bill on guaranteed minimum income may not only represent an important contribution to the current debate but it may also help determine implementation and practical aspects of welfare reform in Italy.

RELATED LINKS:

The website, truthout.org, published a long article (in English) on M5S’s policy entirely under the misapprehension that M5S had endorsemed basic income: Ellen Brown, “QE for the People: Comedian Beppe Grillo’s Populist Plan for Italy,” Truthout, Thursday, 07 March 2013: https://truth-out.org/news/item/14953-qe-for-the-people-comedian-beppe-grillos-populist-plan-for-italy

An article (in Italian) by Roberto Ciccarelli appears in Il Manifesto briefly explaining the difference between a basic income and the unemployment benefit particularly in the light of the latest statements made by main mainstream politicians. He clarifies the positions of Bersani (Democratic Party), Vendola (SEL Sinistra Ecologia Libertà – Left Ecology Freedom), and Grillo (M5S) as well as those of some grassroots organizations such as BIN Italia and San Precario. Ciccarelli is one of the few in the mainstream media to highlight the haziness of Grillo’s proposal: https://www.ilmanifesto.it/area-abbonati/ricerca/nocache/1/manip2n1/20130302/manip2pg/06/manip2pz/336754/manip2r1/ciccarelli/

OPINION: The One Minute Case for a Basic Income

OPINION: The One Minute Case for a Basic Income

“What?  You think the government should just give everybody money?!  Regardless of whether they worked for it or not?  Regardless of whether they even need it or not?  Why do you think *that* would be a good idea?”

You are out in public.  It just came up that you support a basic income guarantee, and someone just hit you with the above incredulous questions.  Unless you are on a college campus or at an academic conference, you can probably expect your listeners’ attention to last roughly one minute before they are either intrigued and ask more questions, or they tune you out completely.  What do you say?

Well, obviously there are a lot of different reasons why people support a basic income, and so your answer will depend in part on why you personally support a basic income.  And it will also depend in part on what you think your listeners’ core beliefs are, and what may therefor persuade them.  So there cannot be just one right answer.

With that in mind, I offer the following eleven suggestions.

All of the following arguments are my own derivative summaries and reinterpretations of other people’s ideas.  The Keynesian and Georgist arguments are derived from the writings of their namesakes.  The market utilitarian case is derived from the ideas of Milton Friedman, and the independentarian case is derived from the ideas of Karl Widerquist.  I am also particularly indebted to Widerquist for inspiring the fairness case.  None of the other arguments are original, but I have sadly forgotten the individuals from whom they are borrowed.

So please feel free to use any or all of them as you see fit to promote the abolition of poverty.  They can be used in person or in speeches, in blog posts or comments, in Congressional hearings or your Facebook status, or anywhere else you see fit.  Also feel free to modify them as necessary.

And yes, I have timed myself speaking all of them, and I was able to speak each of them at a normal speaking pace in one minute or less.

The one minute fairness case for a basic income guarantee:

Property is a social construct legally enforced by the government. If all people are considered equal, then absent any other considerations, each person should have an equal amount of property. So material equality should be the default. In a free market economy with a basic income at or below the highest sustainable rate, those who choose to live off of the basic income are not living off of the work of others. Rather, they are living off of less than their “fair share” of property and allowing the extra to be used by those who choose to work.

The one minute market utilitarian case for a basic income:

The free market is the greatest generator of wealth ever devised. Money is the most effective means of socially producing utility, as it allows each individual to obtain whatever needs and wants they subjectively require. However, one dollar in the hands of a poorer person produces greater utility than a dollar in the hands of a richer person, because the richer person can fulfill more of their more important needs and wants with the rest of their money than the poorer person can. So the transfer of money from a richer person to a poorer person increases overall utility. The government is incompetent at running people’s lives or regulating the economy, but the one thing it can do effectively is mail out checks. A basic income is most effective means of transferring money from the richer to the poorer with the least government interference and the least work disincentive. The natural limit on the amount of the basic income is the point where the work disincentive from the required taxes reduces wealth the point where the basic income would have to be reduced.

The one minute Keynesian case for a basic income:

Keynesian economics works when implemented correctly. But properly implementing Keynesian economics is politically very difficult. It requires politicians who are willing to spend a lot of money on stimulus when the government appears broke, and then turn around and become deficit hawks when the government is rolling in cash and everyone wants a piece of the pie. A basic income funded primarily from an income tax would become a massive institutionalized entitlement expected by the population whose cost would automatically increase and decrease in direct opposition to the economy. As unemployment rises, the number of net receivers goes up, and as unemployment falls, so will the number of net receivers. Keynes once famously said that the government should pay people to dig holes and fill them back up again. But why waste people’s time? Anyone who sits on the couch and watches TV while living off of a basic income will contribute as much to society as the hole diggers. And anyone who does anything more productive will create a net good for society.

The one minute human rights case for a basic income:

Poverty is not a natural tragedy like cancer or earthquakes. Poverty is a human caused tragedy like slavery or government oppression. Slavery is caused by societal recognition of humans as property. Government oppression is caused by governments punishing people for their beliefs or characteristics, and without due process of law. Poverty is caused by property laws that deny some people access to necessities. These types of tragedies can be ended by recognizing that humans have the right not to be subjected to tortuous conditions imposed by other humans. Humans have a right not to live in slavery. Humans have a right to be free of government oppression. And humans have a right not to live in poverty. A basic income is not a strategy for dealing with poverty; it it the elimination of poverty. The campaign for a basic income is a campaign for the abolition of poverty. It is the abolitionist movement of the 21st century.

The one minute Georgist case for a basic income:

Property is a product of creation, not of mere use. “I made this.” confers property rights, “Tag! It’s mine!” does not. Things that exist as a product of your labor must be yours, and for anyone else to appropriate them is to make you their slave. Land and natural resources, however, are not the products of people, but of nature or God. They are gifts to all of humanity. Individual property in land and natural resources may be practical or useful, but it is still theft. Utility might justify this theft, but compensation is still required. As the appropriation was done without consent, the compensation must be in the form that offers the greatest choice of use to the victims. That form is cash. The most efficient arrangement for payment is for the takers to pay the full rental or use value to a single entity which can then divide the proceeds equally among the population. Taxes are the tribute I pay to you for displacing you from land, the basic income is your dividend.

The one minute transhumanist case for a basic income:

Two hundred thousand years ago humans lived in hunter-gather societies. About 10 thousand years ago, humans began to live in agricultural societies, and then about 300 years ago, humans began to live in industrial societies. Since 30 to 50 years ago, we have lived in a service society. Theoretically, the last economic stage of society is a leisure society, where most people either work in the artistic or scientific fields, or do not work at all. So far, each phase has lasted only a small fraction of the time of the previous phase. If that pattern holds, service societies should last less than two generations, a time period nearing its end. Right now, worker productivity is advancing faster than the need for workers, and robots are inhabiting labs in research hospitals and at DARPA. It is time to prepare for a society in which we simply do not need everyone to work. A basic income will be needed to provide a living for people, and to provide customers for business.

The one minute conservative case for a basic income:

The welfare state may not be the society we would have created, but it has been here for 4 generations, people have come to expect and rely on it, and it would be extremely disruptive to society to get rid of it. But while we may not be able to get rid of the welfare state, we can reform it. The current welfare state necessitates an immense and expensive bureaucracy, it is prohibitively complicated for some of its intended beneficiaries to navigate, it puts bureaucrats in charge of the lives of the poor, it creates perverse incentives for people to avoid work and to remain poor, and it arbitrarily allows some people to fall through the cracks. A basic income would correct all of these problems. A basic income is simple to administer, treats all people equally, retains all rewards for hard work, savings, and entrepreneurship, and trusts the poor to make their own decisions about what to do with their money, taking these decisions out of the hands of paternalistic elitist politicians.

The one minute feminist case for a basic income:

Patriarchy has put the world’s wealth in the hands of men, prevented women from being professionals and entreprenuers, forced poor women into dead-end second-class labor jobs, and forced all women to become unpaid domestic servants and caretakers of the young, elderly, and disabled of their families. Women have been forced to be financially dependent on fathers or husbands who are often abusive. A basic income would change all of this. A basic income would be a massive transfer of wealth from men to women. Women would be free of financial dependence on any man, and the young, elderly, and disabled would all be fully supported. Women could afford to leave abusive husbands, those who chose to be caretakers would be fully compensated, and no woman would be forced into a dead-end job, and would instead be able to pursue her own financial goals as she saw fit.

The one minute (right) libertarian case for a basic income:

While it may have been theoretically possible to acquire property in a just manner soon after humans evolved, none was. Every square inch of inhabited land on earth can trace its title back to someone who acquired the land by force. All land titles on Earth are soaked in blood. And not just land titles. Thanks to past government spending, targeted tax breaks, intellectual property, corporate charters, slavery, and meddling regulations, no property or wealth can be said to have been justly acquired. If we assume that those who have the least are greatest net victims, a basic income would provide the best possible rectification with the least government control, producing the least unjust system of property distribution possible in the real world.

The one minute liberal case for a basic income:

A basic income would correct or ameliorate many inequities and inefficiencies inherent in market capitalism. The wages of unskilled and semi-skilled workers would rise as those who enjoy and are good at such work will no longer have to compete against those who are forced to seek such work out of financial necessity. The wages of highly skilled workers will fall as more people are able to take the time necessary to gain the skills to compete for those jobs, lowering the cost of legal, financial, and health care services. A guaranteed income will soften the blow to workers displaced by advancing technology and the creative destruction of the market. Job seekers will be able to take the time necessary to find work that is the best fit for them, increasing efficiency in the distribution of labor. And entrepreneurship will flourish as those wanting to start their own businesses will have an income to survive on during the long lean times that typically come when building a new enterprise.

The one minute independetarian case for a basic income:

Property rights are not natural, they are a social convention. But they give each individual freedom, as the essence of property is the right to exclude others, to have a place where no one else has dominion over you. The first rule should be that each individual has inalienable ownership over her own body and mind. But carving up all of nature outside of bodies leaves some people unnaturally without the means to obtain the necessities of life. Therefore each person must also have an inalienable property right to these necessities. Society owes you a living, because society is preventing you from foraging the land to obtain the necessities of life on your own. Society could rectify this problem by letting individuals forage for necessities wherever they wish, or by giving them the land they need to survive on their own, or by providing these necessities directly. But in modern societies, the most efficient way to provide for these necessities is with direct cash payments, a basic income.

GERMANY: economic program of the Pirate Party endorses BIG

The German Pirate Party, which has endorsed BIG in recent elections, has made it official by producing an official economic program including a basic income guarantee. According to the program, “For us, work is not just a commodity, but also always the personal effort of an individual. Therefore, it is an imperative of human dignity that every human is free to decide what career they want to pursue and what work they want to accept, but also, that this effort is appreciated correspondingly. The technological development allows that not every monotone, little meaningful or even dangerous task must be done by human hands. We see this as a great step forward that we welcome and want to advance further. Therefore, we consider the pursuit of absolute full employment as neither timely nor socially desirable. Instead, we want to commit ourselves to ensuring that all humans receive a just part of the overall prosperity and will for this purpose examine the introduction of a unconditional basic income guarantee.” The program was adopted at the party convention on November 24-25, 2012 in Bochum, Germany.

For more on the Pirate Party’s economic program (in English), go to:
https://en.thecitizen.de/2012/11/27/the-departure-from-the-dogma-work-pirate-party/

Opinion: Independence, Propertylessness, and Basic Income

My new book, Independence, Propertylessness, and Basic Income: A Theory Of Freedom as the Power to Say No, now has a release date of February 28, 2013. Although I have edited or coauthored six other books, this is the first book I’ve written all by myself. It is also the first published book in which I begin to outline—however tentatively—my theory of justice. The basic income guarantee is intimately tied up with this theory of justice, and so I would like to take this opportunity to explain some of the background that led me to write it.

I don’t know exactly when I began thinking about the ideas that made their way into this book. The general philosophical outlook is something that has been bouncing around in my head for a long time. The outlook didn’t appear as a whole at any one point; it gradually developed. My interest in social justice began when I was a kid. My parents were politically interested, liberal Christians (a rarity these days). They, my brother, my sister, and I regularly discussed politics around the dinner table. Growing up in that context in the 1970s, I was optimistic about the progress the United States had made against racism, and I began to believe that the biggest problem remaining in most democratic countries is the horrible way we treat the poor.

The television series “Free to Choose,” by Milton Friedman, first introduced me to the idea of a guaranteed income, which is now more commonly known as the basic income guarantee. He presented it mostly as a way to simplify the welfare system, but having thought about it over the years, I began to see it as the centerpiece of a just society and a serious challenge to the Left: If we really care about other people in society, we should care about them unconditionally. The effort that has so far resulted in this book is a self-exploration of why I think this perspective is so important.

As I see it, from the hanging gardens of Babylon to the modern sweatshop, one social problem occurs over and over again in different ways: advantaged people force disadvantaged people to serve them. Can this be justified? I find the social contract answer extremely dissatisfying: it’s OK to force people to do things as long as you can imagine conditions under which they would have signed a contract subjecting themselves to force.

For some time I thought I was a libertarian, but I eventually came to see the Right-libertarians, who call themselves “libertarians” in the United States, in a similar light as social contract theorists. I find their answer even more dissatisfying: it’s OK for owners to force the propertyless to do things, because someone did something before we were all born to give owners special rights over the Earth and its resources, so that the propertyless have no right to refuse the duty to serve owners. Right-libertarians talk about freedom from force, but they invite everyone to ignore the tremendous amount of freedom-threatening force involved in the establishment and maintenance of property rights to the earth and all its products. Without rectifying this issue, “libertarianism” becomes the defense of privilege at the expense of liberty.

Although these issues were important to me, I didn’t do much direct work on social justice until the mid-1990s, when Michael Lewis, Pam Donovan, and I decided to have weekly breakfasts to talk about the progress we were making on our theses. These discussions usually turned to politics, and one day we found the one thing we could all agree on was an unconditional basic income guarantee. So, Michael Lewis and I wrote a paper on it that was eventually published (about ten years later and in heavily revised form) as “An Efficiency Argument for the Basic Income Guarantee,” in International Journal of Environment, Workplace and Employment.

One paper on the basic income guarantee led to another as well as to involvement with the Basic Income Earth Network and to writing the Newsletter for the U.S. Basic Income Guarantee Network. I read a lot of impressive literature on basic income, but none of it quite seemed to articulate the reasons I thought it was so important. So, I had to explore my ideas further.

In 2001, I held a half-year fellowship at the Chaire Hoover at the Catholic University of Lovain in Belgium. By this time I had realized that my interest in economics was secondary to my interest in social justice, and I decided that the best way to work full-time on social justice was to go back to graduate school and get a doctorate in political theory. Getting a second doctorate still feels like a crazy idea, but in hindsight, it was the right thing for me. I started at Oxford in October 2002, and by April 2006 I completed a doctoral thesis entitled “Property and the Power to Say No: A Freedom-Based Argument for Basic Income,” which is my initial statement of the theory of justice as the pursuit of accord. Many of the ideas in this book appeared first in that thesis—often in a slightly different form.

I have discussed these ideas with so many friends, colleagues, students, and mentors that I can’t possibly name everyone who has influenced this book. If I’ve discussed politics or philosophy with you in my lifetime, you might have influenced this book in some way. So, thanks.

Since leaving Oxford, I have continued to rework and extend the ideas from my thesis on and off while working on other projects. Not long after Laurie Harting of Palgrave Macmillan approached me about becoming series editor for their new book series Exploring the Basic Income Guarantee, I thought about turning my thesis into a book. In the spring of 2012, I set out to do that, but as I revised it, I found that the chapters in the first half were growing and splitting into more chapters.

I finally realized that the book would be an extension of the first half of my thesis—concentrating on an exploration of the theory of freedom I call “effective control self-ownership” or “personal independence” and leaving the development of most of the rest of justice as the pursuit of accord for later works. Effective Control Self-Ownership is a theory of freedom that makes the freedom from directly or indirectly forced service central to an individual’s standing as a free person. The book defines, derives, and defends this theory of freedom in the context of the contemporary literature on freedom and justice. It examines the implications of the theory and argues that a basic income guarantee is an important tool to maintain personal independence in a modern society.

Now that the book is almost ready to be released, I still feel that it is tentative in many ways. I could spend years revising it, but it is best to get it out. Although tentative, it is a sincere expression of my beliefs on the issues discussed at this point. I hope to explore these ideas much more in the future.

-Karl Widerquist, Mojo’s Coffee House, New Orleans, Louisiana, August 2012; revised onboard a flight from Dallas to London, November 2012