by Andre Coelho | Jun 7, 2019 | News, Research
Apart from experimental designs testing basic income-like policies, in small scales, theoretical evidence keeps mounting, showing that basic income is not a pipe dream, but a practical reality within our reach. Published earlier this year, a new report issued by the Compass think tank demonstrates just that. It proposes two models for change in the British social security system, one that installs a partial basic income for a cost of 28 billion £/year (approximately the benefits cut per year since 2010), and another that would rise the unconditional transfer of the first model through the operation of a “citizens’ wealth fund”.
As a summary, it can be read in the report’s conclusions:
The to models presented satisfy the feasibility tests set out earlier. Both models:
- Are progressive: they raise the incomes of low-income households at the expense of those on the highest incomes, cut poverty and reduce inequality; the greatest benefits go to the poorest;
- Provide a basic income for all, while reducing the level of sanctions; Britain would finally have a secure income floor set to rise over time;
- Become more progressive and more powerful anti-poverty instruments as basic income payments rise;
- Help to correct the gender imbalance of the present system;
- Ensure that there are almost no losers among the poorest households
- Apply a new 15% rate of income tax, an additional 3% on each rate of income tax, and an extension of national insurance payments.
It is still worthy to say that the 28 million £/year figure cited above can be collected in a variety of ways, for instance reversing the freezing of diesel and petrol excise duties since 2010 (9 billion £/year), reversing cuts in corporate tax rates from 18 to 28% (26-28 billion £/year), reduce the number and value of tax reliefs (ex.: eliminating the “entrepreneur’s relief”, saving 2,7 billion £/year), phasing out financial support to home owners and private landlords (which mainly benefit property developers) (8 billion £/year), among other possibilities. All these imply reversing tax cuts and attributed benefits to the relatively wealthier members of British society, which makes them quite progressive measures.
More information at:
Stewart Lansley and Howard Reed, “Basic Income for All: From Desirability to Feasibility”, Compass, January 2019
by Andre Coelho | Jun 3, 2019 | News
Just before the latest European Parliament (EP) elections, held on the 23-26th of May 2019, the Unconditional Basic Income Europe (UBIE) activist group sent out a questionnaire to be answered by candidates, on the subject of basic income. The questions asked for their position on the European social policies, whether they would support European Union (EU) basic income experiments, and if they would vote in favour of a Eurodividend. That questionnaire was inserted in an introductory letter, to be sent to all EP candidates, written by Daniel Kruse.
Only a fraction of EP candidates actually responded, but those that did can find their answers posted here. These views, reflecting the opinions of these candidates from Belgium, Germany, Greece and Ireland, are mostly in favour of experimenting and implementing an EU-wide basic income, with a few variations. For instance, Olivier De Schutter argues that basic income should start for the youngsters, namely those between 18 and 25 years-old, fixed at 60% of the median income of their country. On the other hand, however, Olivier Maingain points out that paying a monthly basic dividend to all EU citizens is not within EU’s powers, at the moment.
Willie O’Dea, from the Fianna Fáil party in Ireland (which had also setup a candidate for the EP elections, Brendan Smith), had written, not long before these EP elections, an opinion article expressing his views on basic income, within a European perspective. In that article, O’Dea also takes the opportunity to clarify a few important aspects about the Finnish (basic income) experiment, linking its design features to its published results until now. According to him, these results are not surprising, given the way the experiment was setup, but are still encouraging, since he considers the social well-being of people to be “real and measurable tangible benefits”.
More information at:
Willie O’Dea, “Universal income pilot could point to a fairer future”, Independent.IE, April 7th 2019
by Andre Coelho | May 31, 2019 | News
Maricá at a distance.
Original article by Eduardo Suplicy
Last Saturday, May 25th 2019, an event took place in Maricá, a city on the coast of the state of Rio de Janeiro, where the mayor Fabiano Horta (representant from PT, Partido dos Trabalhadores), vice mayor Marcos Ribeiro and the secretary of Solidarity Economy, Diego Zeidan, announced that, from July 2019 onward, 50000 citizens, a third of its 150000 inhabitants, will receive a Citizen’s Basic Income of 130 Mumbucas, a local electronic currency, equivalent to 130 reais, or US$ 32,5 per month. The plan is to have all Maricá’s citizens receiving this unconditional cash, at least until the end of the present city government legislature.
Longtime politician (presently councilman in the City of São Paulo) and basic income activist Eduardo Suplicy had already explained the advantages of implementing basic income in Brazil, as a part of a general upgrade of social policy in the country. That policy, actually, has been written into Brazilian law since 2004 (Law 10.835/2004), but sanctioned by president Lula on January 8th 2004. There, it says that a basic income shall be rolled out in Brazil, step by step, starting with those most in need, until one day it benefits all citizens.
After an important Conference on Human Rights, held in Brazil in December 2015, where Suplicy reinforced his views, Maricá’s mayor at the time, Washington Quaquá, manifested his intention of implementing the Citizen’s Basic Income in his city. That same month, he was able to pass his purpose into municipal law, which would be introduced in phases: 95 Mumbucas per month in 2016 (85 Mumbucas from a Minimum Income program, plus 10 Mumbucas/month), 130 Mumbucas per month in 2017 (110 Mumbucas from the Minimum Income program, plus 20 Mumbucas/month), disbursed to 14000 families, and now in 2019, starting in July, that same amount will be enlarged to cover 50000 individuals. This payment will be now limited to citizens who belong to families enrolled in the Unique Register, having monthly incomes lower than three minimum wages (1 minimum wage is equal to around 1000 reais/month), but expected to cover all citizens in the village by 2021.
So, the ongoing cash transfer in Maricá is done in a non-transferable social local currency (Mumbuca), is set to cover one third of the population (although projected to cover the whole population by 2021), and amounts to the equivalent of 67% of the individual official poverty line in Brazil (1). Although far from ideal, this is a very significant step when in comparison to some recent basic income test trials such as in Finland (2000 unemployed citizens receiving 560 €/month for two years), Stockton California (125 citizens receiving 500 US$/month for 18 months), Namibia (1000 people in Otijivero receiving the equivalent to 12 US$/month, for 12 months) and India (6000 people in Madhya Pradesh receiving 300 (adults) and 150 (children) rupees/month, for 36 months).
Even though the Mumbuca is a local currency, most commercial stores in Maricá accept it. Also, a Communitary Bank Mumbuca was created in order to provide microcredit at zero interest rates, in Mumbucas, which can also fund housing projects. Maricá mayors (Quaquá and Horta) have, on the other hand, introduced social security measures / programs alongside with this more general basic income approach. For instance, a minimum income program has been created for pregnant mothers and youngsters. Additionally, starting in 2019, another specific program was initiated, dispensing 300 Mumbucas/month to 200 indigenous people that live in small villages near Maricá. There is also a Future Mumbuca program for young people, that are currently enrolled in high school courses involving solidary economy and entrepreneurship, which will pay 1200 Mumbucas per year. In that program, the valued is transferred once the youngster completes high school, starts a firm, a cooperative or becomes an undergraduate student.
Other social support programs have been created in Maricá, over the years, such as free transportation (14 lines in Maricá’s urban area), and special conditions for university students (around 4000), in and out of Maricá. Plenty other public investments were made in education, health, and even organic farming. This unusual plentiful municipal budget (16665 reais/inhabitant, compared to São Paulo’s 5041 reais/inhabitant) is the product of oil exploration royalties along Maricá’s coast. Despite the inherent pollutant nature of this municipal revenue stream, past and present city mayors have been investing in providing better living conditions for the population within their administration’s borders. This way, Maricá has become a bright example for all municipalities in Brazil, as well as for the federal government.
Note (1) – The official poverty line in Brazil stands at 387 reais/month per family. Considering a two-adult composition in each family, this equates to 194 reais/month per (adult) individual.
Article reviewed by André Coelho
by Andre Coelho | May 27, 2019 | News
Tomas Vargas, a recipient of Stockton’s “universal basic income” program.
Although the Stockton SEED (Stockton Economic Empowerment Demonstration) basic income-type experiment is still ongoing, some encouraging signs are already showing up. Stockton Mayor Michael Tubbs already says that “I think the data shows that people make good decisions, people are healthier, happier”, and a few of the program’s beneficiaries have already given positive feedback.
That is the case of Stockton resident Tomas Vargas, who earns less than the official poverty line, which at the moment stands at 46000 $/year. His view of the program and his personal experience has been recorded on a short podcast on Capital Public Radio, after he knew he would receive 500 $/month, no strings attached, for 18 months (more details of the program in previous news articles). Although that value amounts to only about 20% of Vargas earnings, and to 13% of the poverty line, he still says that “It makes a difference on choices I can make”. He talks about a “big stress relief”, and has a clear notion that the experiment will have an impact for the future of the basic income policy, at least in Stockton.
Although briefly, Tubbs skimmed through the UBI experiment in the latest State of The City 2019, where he delivered an hour-long, much appreciated speech focusing on poverty, crime, housing and community building.
More information at:
Rich Ibarra, “Low-Income Stockton Residents Praise City’s ‘Universal Basic Income’ Program”, Capital Public Radio, May 22nd 2019
Rich Ibarra, “Stockton Mayor Michael Tubbs Delivers 2019 State of The City”, Capital Public Radio, May 23nd 2019
Kate McFarland, “STOCKTON, CA, US: New Details Revealed in Planned Basic Income Demonstration”, Basic Income News, 23rd August 2018
by Rebecca Rosewarne | May 26, 2019 | News
Minna Ylikännö. Picture credit to: Kela
A half-day seminar called “Finnish Basic Income Experiment – Science meets social security reform” happened on the 4th of April, hosted by Kela, to focus on the presentation and discussion of the recently concluded (the cash transfer’s stage) basic income trial’s preliminary results. At the seminar, other Kela researchers communicated their analysis on the data, such as Olli Kangas (on the overall evaluation of the experiment), Ohto Kanninen (register data analysis) and Signe Jauhiainen (subjective wellbeing and financial stress)
The results had already been discussed by Minna Ylikännö, a senior researcher at
Kela, on a podcast recorded in February, hosted by Jim Pugh and Owen Poindexter. In this conversation, Minna confirmed that the
experiment has been more limited in scope than was originally planned by Kela
researchers, and that to date there has been no observable effect on take-up of
employment (on the long-term unemployed participants in the experiment).
Answering a phone survey (around 30% of the participants), Minna refers that those
in the BI trial reported significantly higher levels of life satisfaction and
well-being, more confidence in the future and self-perceived better mental
health in comparison with the control group. Even though the data analysis
process is not over yet, this process may not a include a second phone survey.
Minna Ylikännö also recommends, in the eventual pursuit
of other basic income-type of trials, that a careful consideration of all
factors which can motivate/demotivate people to look for a job, including a
series of subjective factors which enables them to do so. In her words: “it’s
not just about financial incentives, it’s about well-being”. In the referred
podcast, the hosts commented that, in talking about basic income experiments,
people tend to project their own desires or fears, over the results which can
easily be spinned in positive and negative directions.
