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.
by Andre Coelho | May 23, 2019 | News
Picture credit to: Bright Horizons
A few low-income families with children, in the United States, are about to receive 20 unconditional checks, and be subject to an overall health analysis, both mothers and their children. The program is called “Baby’s First Years” and is a research initiative from the New York University.
Starting next month, 1000 mothers will be randomly selected from poor households in New York, New Orleans, Minneapolis-St. Paul and Omaha (Nebraska). 400 of these mothers will be given 333 $/month, for 20 months, with no strings attached, while the other 600 study participants will only receive 20 $/month during the same period (this should be the control group). The study will focus on early-stage child development, hence the women in question will be mothers to new-born babies, but living below the federal poverty line, which for a parent in a family of four roughly equates to 1070 $/month (single income in the family). For comparison purposes, the living wage of an adult in a family of four, in New York, has been calculated as 4940 $/month (single income in the family). So, the experiment being rolled-out is testing the effects of a 7% (the percentage varies according to the living wage of the other cited cities) share of the living wage, even though it represents around 33% of the poverty line wage.
Researchers want to determine “whether money has a causal impact on children and families”. This relationship has already been established in other research studies, although less evidence exists on the impact on new-born babies and their mothers. According to Katherine Magnuson, one of the involved researchers and professor at University of Wisconsin, more than allowing these mothers to more easily buy essential products for their children, the point of the study is to know if the money can “help free up some of the mental bandwidth that gets gobbled up by living in poverty”. Again, the relationship between poverty and diminished brain functions has already been demonstrated through research, but not specifically involving mothers and their new-borns development.
The team theorizes that not only the money itself, but the simple regularity of the payments is in itself a stabilization factor, due to its predictability. That can lead to alleviating stress, hence more positive relationships between mothers and their children. In the words of Katherine Magnuson, “If you’re not worried about your bus pass, you’re going to be a lot more able to have a conversation with your 2-year-old”. That extra cash may prove enough to free up what researchers call “cognitive load”, and naturally allowing mothers to focus more on their children and their future, instead of worrying about bills to pay.
Several outcomes will be analysed, such as children’s overall health and brain activity (with EEG scans), as well as behaviour and language monitoring. IQ tests will also be applied, for children older than two-years old. Mothers will also be monitored, specially concerning their health, stress levels and interaction with their children.
Lisa Gennetian, one of the study’s lead researchers summarizes the intent of this work: “What is in the best interest of children is really what our study is designed to answer (…) I think the policy implications are much broader than UBI (universal basic income)”. That view may be a consequence of a too narrow interpretation of a broader UBI definition, but still the “best interest of children” should, in principle, have a positive impact on the adults they will one day become, and the society they will help to create.
Possible similarities may exist with the Magnolia Mother’s Trust, an initiative designed to help young African mothers in the United States, financed by the Economic Security Project.
More information at:
Leslie Albrecht, “Low-income moms in four U.S. cities are being paid $4,000 a year, with no strings attached”, Market Watch, May 12th 2019
Jessica Hagen-Zanker et al., “Understanding the impact of cash transfers: the evidence”, Overseas Development Institute, July 2016
André Coelho, “United States: The Magnolia Mother’s Trust innovates and starts a basic income-like experiment with African American women”, Basic Income News, November 11th 2018
by Faun Rice | May 22, 2019 | News
Yoni Assia. Picture credit to: CCN
The recent international basic income conference “Visions for a Brighter Future,” UBI-Nordic 2019 was held in Oslo from April 5–7; at it, Nir Yaacobi and Gilad Barner became the first representatives of a universal basic income (UBI)-related blockchain project to present at a UBI conference. Their not-for-profit research organization, GoodDollar, aims to develop an open-source method for implementing UBI through blockchain. Blockchain technology was popularized by cryptocurrencies, but is, in general terms, a distributed ledger (i.e., a database hosted by numerous servers rather than one central authority) where all transactions are verified publicly, rather than being controlled by a single administrator. Blockchain protocols can allow for the execution of smart contracts, or an encoded agreement that auto-executes once its terms are fulfilled. Due to the nature of the type of encryption that blockchain uses, each encrypted transaction includes information from the one that occurs before it, making transactions, once verified, theoretically impossible to change or erase. Some blockchain projects, like GoodDollar, aim to eventually create Decentralized Autonomous Organizations (DAOs) that eschew classical governance for a public, distributed, social and financial system based on blockchain.
The idea of GoodDollar was born over ten years ago in a paper called “The Visible Hand,” which outlined a framework for a monetary system where smaller investments are granted the same interest rates as larger ones in order to combat extreme wealth inequality. The organization’s current mission is to “build open-source solutions for efficient allocation of resources according to principles informed by research on UBI and related policy proposals.”
Other UBI-related blockchain and cryptocurrency initiatives reported by Basic Income News have included SwiftDemand, Grantcoin, and a BitNation exploration of the concept of UBI and cryptocurrency.
More information at:
Yoni Assia and Omri Ross, “Good Dollar Experiment: Wealth Distribution Position Paper,” July 11th 2018
Yoni Assia, “Good Dollar – The Visible Hand,” November 28th 2008
Cameron McLeod, “BitNation: Recent Advances in Cryptocurrency See Basic Income Tested,” March 30th 2017
UBI-Nordic, “Basic Income: ‘Visions for a Brighter Future’ UBI-Nordic 2019—Oslo, April 5–7”, Accessed May 13th 2019
by Guest Contributor | May 14, 2019 | Opinion
Written by: Mônica Dallari and Eduardo Matarazzo Suplicy
After the article “A Critical Poverty Eradication Experiment in Kenya”, published in the last issue of the BIEN News Flash, we now offer this complement with the interviews of the beneficiaries of the UBI in the rural villages of Kenya.
Stimulus to work
Richard O., 43, is a father of nine children. The couple and the eldest son, aged 18, receive a basic income. Richard paid school fees for his children to study and bought goats, $150 and $200 USD each. He also bought a cow for $250, which provides milk for the family. Now he wants a bull, which costs $300. Richard says basic income has encouraged him to work harder: “when there is opportunity, ambition grows”, he explains. “The benefit has created the possibility for people to dream of a better life.” Richard is dreaming.
Empowered women
Jane M. feels stronger now with basic income because she has the power to decide how the best use of her benefit. She and her husband have the same power in the negotiations. She felt very good to gain independence. Jane says that the basic income comes along with the responsibility of making the best use of resources, for being unconditional. As a seamstress, she receives $0.50 a day. She participates in a group of 10 women in the village who help each other. Once a month, they all get together and deliver $10 to one of them. By relay, one of the beneficiaries gets $100 each. Jane waits her turn, she wants to invest in her own business.
New house
Edson O.N. was happy for all the villages receiving Universal Basic Income (UBI), not just selected ones. Married, now 31 years old with two children, when he does not have occasional jobs in the field, he helps his wife sell used clothes in popular markets and gets $1. He lives in a house with a mud wall and a straw roof in his father’s terrain. He is raising money to acquire his own land and build a home for his family. He estimates that will need $1,000. The steel roof tiles, for the capture of rainwater, alone cost $210.
Reduction of domestic violence
Kennedy A.A. realized that violence and stress within families have greatly reduced with the introduction of the UBI. He is the elder of the village, a joint judge and chief of the community, not necessarily the eldest. He is often called in neighbors’ quarrels and family disputes. He is married at 43 years old with three daughters. He says: “when there is money, conflicts decrease. Men do not come back home angry and frustrated. The benefit brought peace to the families. Children, who grew humiliated in old and torn clothes, began to wear decent clothes. Access to food and medicines has improved. Everyone starts to know the feeling of well-being.”
No piper water
Nilton is 12 years old and Elvis is six years old. They are brothers and were carrying for the second time in the day buckets of water. The houses in the village don’t have sewage or piper water. In Kenya, 37 percent of the population do not have access to drinking water. Nilton and Elvis are responsible for getting water for the family. They walk about 400 meters to the reservoir. Nilton carries two buckets of 10 liters and Elvis two of 5 liters. When it rains, those who can take advantage of rainwater with the use of gutters in the steel roof, a privilege for only a few families.
Community teacher
Mary A. is illiterate. In the village, only 8 percent of the villagers know how to read and write. In Kenya, illiteracy reaches 22 percent of the population, but the prospect is that literacy will improve with the introduction of UBI. Now, no child leaves school. They all have food when they return home. In the village, no one else sleeps hungry. With three grandchildren in elementary education, Mary helps pay a teacher hired by the community. Since few teachers are offered by the government, parents get together to pay more teachers.
Prosperity
Aggrey O., 56, raises five children alone. Everyone studies. The money was primarily used to pay the high school of the two older children. Annuities can range from $300 to $550. As a farmer, Aggrey earns $1.50 a day. When the yield from his garden is very good, he can earn up to $3 a day. For him, life has improved a lot with basic income. To live it is necessary to have prosperity. He wants to send his children to university. He says that Felix, the youngest at eight years old, is very clever. “Why do I desire to send the children to university? The same way you left Brazil and are here for having studied, I also want my children to go to Brazil because they studied.”
Precarious health
Jane A., 76, is a widow and lives with her sister. She spends the money on medicine. Lack of sanitation causes many diseases. According to data from “Doctors Without Borders,” in 2016 there were 216 million cases of malaria in the world, with 445,000 deaths. Sub-Saharan Africa is responsible for 90 percent of the cases. Malaria is the leading cause of death in Kenya, followed by tuberculosis, a consequence of the HIV virus, which affects 1.5 percent of the population. Violence against women is one of the main causes of the spread of HIV.
Polygamy and the Marriage Law
Ruth O., 34, is the second wife of a bigamy husband. She has three daughters and takes care of five orphans: a nephew and four children from her husband’s first wife, who died in 2011. As the wives get along well, which is rare in these situations, Ruth decided to raise the children when their mother passed away. Frequently in cases of polygamy, wives live in separate houses with their children, but they share the same family terrain. The relations are not easy, the treatments are differentiated, a lot of rivalry arises between the children and the women. The first wife has certain privileges and rights, for being the only relationship officially recognized. There is no law regulating the registration of other polygamous relations.
Although the 2010 Constitution does not provide for polygamy, in 2014 the Matrimonial Law was approved by the National Assembly and the Senate, and sanctioned by the president, which legalized marriage as a “monogamous or polygamous union” between men and women. The women’s claim to allow the first wife to be consulted about the convenience of her husband having a second wife was rejected by deputies of the situation and the opposition. Polygamy is valid only for men.
No tools
Victor O., 24, has a son. He lives in his mother’s house along with five brothers. He is an electrician, he repairs cell phones, radios, and electrical materials, but he has no work. Victor stopped his studies in seventh grade. Victor regrets he has no tools to perform the repairs, which ends up restricting the work a lot. He has no offer of service, so he goes from house to house. He can do three or four services a month and earns about $4 a month.
Cemetery at home
Mary S., 48, has seven children and is the second wife of polygamous husband Joseph S.O., who died in 2010 and is buried in the family backyard. In the same terrain are the houses of the two wives. According to custom, the cemetery is reserved only for those who have no family. In fact, it is the solution to bury people who die at home without any kind of medical care. In 2017, according to data from the Kenyan government, of the 190,000 deaths, 100,000 occurred in hospitals and 90,000 in the residences.
