“A Critical Analysis of Basic Income Experiments:” an early version of this book is available for free download

An early version of the book, A Critical Analysis of Basic Income Experiments,  is available for free download on my selected works website.
The devil’s in the details is a common saying about policy proposals. Perhaps we need a similar saying for policy research, something like the devil’s in the caveats. I say this both because nonspecialists (the citizens and policymakers who are ultimately responsible for evaluating policy in any democracy) have great difficulty understanding what research implies about policy and because specialists often have difficulty understanding what citizens and policymakers most hope to learn from policy research.
This problem creates great difficulty for Universal Basic Income (UBI) experiments which are now getting underway in several countries. These experiments can add a small part to the existing body of evidence people need to fully evaluate UBI as a policy proposal. Specialists can provide caveats about the limits of what research implies, but nonspecialists are often unable to translate caveats into a firm grasp of what that research does and does not imply about the policy at issue. Therefore, even the best scientific policy research can leave nonspecialists with an oversimplified, or simply wrong, impression of its implications for policy.
This short book discusses the difficulty of conducting UBI experiments and communicating their results to nonspecialists given both the inherent limits of experimental techniques, the complexity of the public discussion of UBI, and the many barriers that make it difficult for specialists and nonspecialists to understand each other. This book is an effort to help bridge those gaps in understanding with suggestions in an effort to help researchers conduct better experiments and communicate their results in ways more likely to improve public understanding of the possible effects of UBI.
The book, A Critical Analysis of Basic Income Experiments, by Karl Widerquist is Published by Palgrave Macmillan (2018) and is available on Palgrave’s website, on amazon.com, and other online retailers. But an early version is available for free download on my selected works website.
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Groups calling for basic income experiments spread across the UK

Groups calling for basic income experiments spread across the UK

Groups across the UK are calling for pilots of a radical alternative to the current welfare system.

With more people losing jobs to automation and the Devolution in the North East that’s currently happening, groups are worried that if this continues, the whole of the UK will be facing serious consequences in the future.

A Universal Basic Income (UBI) would see all citizens given a guaranteed income regardless of their eligibility for benefits or their employment status.

Finland, Kenya, India, and cities across the United States have recently piloted the revolutionary idea.

Supporters of a basic income, such as the University of London’s Professor Guy Standing, believe that it would guarantee minimum living standards and basic economic security across the UK.

The movement started in South Yorkshire with the founding of UBI Lab Sheffield in 2017. This is a grassroots group formed of researchers and activists exploring the potential impact of a basic income through calling for pilots in local areas.

In recent months, UBI Labs have launched in Liverpool, Leeds, Kirklees and the North East.

UBI Lab Liverpool was founded by Councillor Patrick Hurley, who introduced a motion supporting a UBI pilot at Liverpool City Council.

Artist Toby P Lloyd, whose work explores the liberating potential of a basic income, is leading UBI Lab Newcastle.

There are also ongoing discussions with groups interested in launching UBI Labs in Belfast, Hull, Birmingham, Derry/Londonderry, Exeter, Lancaster, Portsmouth, Manchester, Norwich, and West Sussex.

The UBI Lab network allows groups to share resources, promotional materials, advice, and experience.

In May, Shadow Chancellor John McDonnell announced that a Labour government would pilot basic income in Sheffield, Liverpool, and the Midlands.

Pilots in Canada, Namibia, and Finland have shown significant health benefits. Researchers found that a basic income reduced stresses associated with economic insecurity.

The pilot proposal produced by UBI Lab Sheffield is designed to measure the impacts on health and wellbeing as a key outcome of any basic income trial.

Members of the UBI Lab network have started conversations about basic income with council leaders, councillors and directly-elected mayors across the country.

The network wants to encourage more local authorities to lobby Westminster for a basic income pilot in their area and people interested in setting up new groups across the UK.

A recent Gallup poll found that 77% of UK adults favour the introduction of a basic income as a way to support workers who lose their jobs to automation.

In Spring 2020, the UBI Lab Network will host the second edition of UBI North in Sheffield. This will be the biggest conference on basic income in the UK.

 

Tchiyiwe Chihana of UBI Lab Sheffield said:

“Piloting a Universal Basic Income is an essential aspect of exploring potentially viable responses to the urgency of ever-expanding social and economic disparities. Consultative in approach, UBI Lab Sheffield ensures that multiple options reflecting the needs and experiences of people at micro and macro levels can be factored into a pilot while being adaptable. This also means that as many people as possible also have insight into the development of a potential UBI pilot in the city. Collectively, the raw data being developed has added to the resources of our city and has contributed to a sustainable knowledge pot for future use. The networking and the spin-off discussions that have developed out of UBI Lab Sheffield cannot be overstated.”

 

Cllr Erin Hill of UBI Lab Kirklees said:

“At a time when society seems very divided, the one thing most of us can agree on is that the current system isn’t working for anyone. Universal Basic Income – a regular payment made to everyone regardless of income or behaviour – isn’t a magic solution to all our problems, but it is a vital part of creating the better society we so clearly need. UBI doesn’t leave anyone behind. It provides basic security and opportunity for all citizens; protection for working people; a lifeline for those with caring responsibilities; better health and life chances for our children and grandchildren; support for marginalised groups, and so much more.

Right now, we have local people doing six or seven zero-hour contract jobs and still having to claim benefits; nurses and teaching assistants relying on food banks; people caring for relatives and being financially punished for it, and most people in poverty also being in work. Something has got to change. Across the world we have seen UBI transform lives and communities – I want us to be part of that transformation too.

Here in Kirklees we have a rich history of ordinary people standing up and demanding change for themselves, their families, and their communities – from women’s fight for the vote to the recent campaign to save our local hospital. I’m really proud that UBI Lab Kirklees has made a commitment to engage with local people, to make your voices central to the debate about what kind of society we want to be.”

 

Cllr Patrick Hurley of UBI Lab Liverpool said:

“The Basic Income is an idea whose time has come. Paying a wealth dividend to each citizen in order to help them make the best of their lives could be transformational for our country. People who want to take a chance on a change of career, or want to care for family members, or need a helping hand to smooth out life’s rough edges, would all benefit massively from something like this. At UBI Lab Liverpool, we think a series of demonstrations and pilots across the country could show the benefits to the wider population with limited downsides. That’s why we’re working with colleagues from across the city and across the country to promote Basic Income and see how best to implement it at a national level.”

 

Toby P Lloyd of UBI Lab Newcastle said:

“Critics of Basic Income say that it would make people lazy and they would all stop working. This argument has a very narrow view of ‘work’, defining it only as paid employment. Society relies on a huge amount of unpaid ‘work’ for it to function, most of this is done by women. Basic Income would not solve this, but it would be a first step in rewarding this unpaid labour and recognising its value. Basic Income would also be a way of investing in people, giving them more control over their lives and how they use their time, enabling them to reach their full potential. This is not possible for many people under the current system, because they are trapped in exploitative jobs which leave them with no time or energy to do anything else.”

 

Notes for editors:

 

– UBI Lab Sheffield is a collaboration between multiple organisations and individuals, seeking to explore the potential of a Universal Basic Income and the possibility of a pilot in the city. Organisations involved include Opus Independents, Sheffield Equality Group, The Centre for Welfare Reform and the University of Sheffield. https://www.ubilabsheffield.org/

– A feasibility study launched by the Scottish Government and supported by NHS Scotland is currently looking at the practicalities of a pilot in Scotland.

– Press assets and images are available at: https://www.ubilabsheffield.org/press

Spain: The Barcelona B-MINCOME experiment publishes its first results

Spain: The Barcelona B-MINCOME experiment publishes its first results

The pilot project which is being carried out in Barcelona – B-MINCOME – combining guaranteed minimum income and active social policies in Barcelona’s deprived urban areas– published a report, on July 2019, with the results of its first operational year (2017-2018). The experiment, which began in October 2017 and is due by the end of 2019, aims to reduce poverty and social exclusion in highly vulnerable groups. During these 24 months, and based on a Randomised Control Trial model, 1000 households (randomly) selected from three of the city’s poorest districts (Nou Barris, Sant Andreu and Sant Martí) have been receiving a maximum cash transfer of €1675 a month. Of these 1000 households, 550 have also taken part in four active-inclusion policies which the project has set up: one for training and employment; one of fostering entrepreneurship in the social, solidarity and cooperative economy; one with grants for refurbishing flats in order to rent out rooms; and one involving community participation.

What makes this project so innovative is that it combines four modes of participation: Conditional (people randomly assigned to an active policy are obliged to take part in it), Unconditional (participation in these policies is not a condition for receiving the income), Limited (any additional income that might be obtained proportionally reduces the amount of the cash transfer) and Non-limited (where this additional income does not reduce the amount of the transfer).

Apart from reducing poverty and fostering personal autonomy, the B-MINCOME’s overall objective is to test which modality of income transfer is the most effective (concerning results) and the most efficient (concerning implementation costs). This experiment or pilot project is, therefore, an initial step towards implementing a municipal income-transfer system which should be consolidated in the near future.

In line with the results obtained in similar experiments, such as the one in Manitoba during the 1970s, the Finish one, the one suddenly cancelled in Ontario and those that are now coming to a close in various Dutch cities, such as Utrecht, the report now published by the Barcelona City Council shows very positive quantitative results. For example, an 11% average increase in general well-being and a 1,4% increase in economic well-being. It also shows an 8% reduction in the severe material privation index, and a reduction of up to 18% in ‘worrying about not having enough food’. It is also worth noting the 3% average reduction in the need to get money through means other than employment (e.g. by renting out rooms, a problem that especially affects the city of Barcelona) or the decreasing trend in developing mental illnesses and an improved quality of sleep, by 10% and 1% respectively – two results associated with a reduction in the financial stress suffered by these families. Furthermore, the qualitative and ethnographic evaluation of the project also reveals positive impacts, such as an increase of nearly 28% in happiness and general satisfaction with life, as well as a significant increase in engagement with and participation in neighbourhood and community life.

However, the report does not detect statistically significant changes in housing insecurity or in the households’ ability to cope with unexpected expenses (although this cash-transfer is not designed to make savings possible but only to meet basic expenses). Furthermore, no significant results have been observed regarding work placement or in other dimensions related to employment. However, it should be noted that this result was expected and is in line with other similar experiments, which also confirms the initial hypothesis: people in the Conditioned modality experienced a “lock-in effect”, as their (compulsory) participation in the active policies may have meant they had less time to look for work. However, it should be noted that most participants were suffering from a high degree of exclusion or job precariousness prior to the start of the project. It was, therefore, unrealistic to expect ambitious results in this sense.

The referred report only contains results obtained during the first year of the project, and hence the overall effectiveness and efficiency of the project can only be definitively evaluated in early 2020.

Given the recipients’ highly vulnerable profile, and the fact that these results come from a single year of (the pilot’s) implementation, there are motives for optimism. Final results are expected to be more significant and consistent from a statistical perspective, plus even more encouraging from a substantive point of view, i.e. in improving beneficiaries’ quality of life, increasing their freedom and autonomy and reducing their dependence on other public subsidies.

Written by Bru Laín (bru.lain@ub.edu). Affiliate professor of Sociology (University of Barcelona), researcher at the B-MINCOME project and Secretary of the Spanish Basic Income Network

Reviewed by André Coelho

Canada: A 20-year basic income experiment is being considered in Quebec

Canada: A 20-year basic income experiment is being considered in Quebec

Yv Bonnier Viger. Picture credit to: Huffpost Quebec

 

Gaspesie and Îles-de-la-Madeleine regional public health director Yv Bonnier Viger is convinced that basic income can have dramatic positive effects on people’s health. So much so that the local public health sector, plus other regional organizations focused on health, well-being and poverty alleviation, are pushing for a 20-year long experiment in these two localities, also including Bas-Saint-Laurent.

 

Viger already knows the usual results of basic income experiments: “The experiments done around the world have always given results that go along the same direction: reducing mortality, violence, urgent care visits, hospitalizations, etc.”, he says. Moreover, he is also aware that people (according to experiments) do not use unconditional cash to acquire superfluous things, or to stop working as a result of receiving it. In this context, an (basic income) experimental setup in this region would expectedly be confirming these same results tested at other locations.

 

This setup is being considered as a negative income tax (NIT), after knowing each recipient declared annual income. After surveying true living costs in the three municipalities abovementioned, the idea is to dispense (every two weeks) unconditional cash gradually, for all those earning less than 40000 CAN$/year. The income starting point – someone earning 0 CAN$/month – would then become 17500 CAN$/year, which approximately amounts to Quebec’s official poverty line.

 

Financing the experiment would be based on replacing conditional social aid already in place in the region, without touching, however, retirement income (which is based on lifetime contributions). The project’s overall annual cost has been estimated at 800 million CAN$, which is expected to diminish over time, as more savings are made available in the public health sector, social aid management and other public related expenditures.

 

 

More information at:

Quebec is considering a 20-year basic income pilot”, Basic Income Today, July 19th 2019

(In French)

Stephanie Gendron, “Idée d’un projet-pilote de 20 ans pour un revenu de base dans l’Est-du-Québec”, Le Placoteux, June 26th 2019

Canada: Report “Signposts to Success” shows how beneficial the cancelled Ontario basic income experiment was being

Canada: Report “Signposts to Success” shows how beneficial the cancelled Ontario basic income experiment was being

The reading of results from basic income type of experiments is, apparently, dependent on who is reading them. The Ontario present government officials did not think, for instance, that there were particular advantages or benefits from pursuing with the Ontario basic income experiment. The particulars of the Ontario (basic income) pilot cancellation have been extensively reported on (some examples below), so much so that a new report was published with some evidence of the benefits experienced by more than 400 participants, according to their responses. This may be another case of dissonance between government power and common citizens: what is felt by the latter as beneficial is discarded as ineffective and wasteful by the former. Why, then, was this basic income pilot program cancelled is a legitimate question one might ask, if the participants themselves felt it as a success.

For example, the baseline survey reported that at the start of the pilot 81% of participants were suffering from moderate to severe psychological stress); At the end over 70% had reported their mental state to have improved in several categories. This is attributed to having fewer financial worries such as debt. In addition, participants were apparently better able to buy edibles online canada and other treatments for their conditions, whereas before they may have refrained due to budget concerns. Due to the legalization of medical marijuana in several countries, such as the United States and Canada, many scientists are looking into the effects of CBD and cannabis. In terms of the physiological benefits of Cannabis, compounds like CBD seem to have anti-inflammatory properties, helping to relieve chronic muscle and joint pain. Nevertheless, when ingested, these effects might be amplified, so these relief properties could be felt in even greater strength with THC edibles that you can purchase from get kush or other such cannabis retailers online. There is growing evidence that CBD is an effective monotherapy or complementary therapy for the treatment of generalized anxiety disorder, social anxiety disorder, and post-traumatic stress disorder. Cannabis (rather a chemical in the Cannabis sativa plant known as cannabidiol) may be helpful in reducing anxiety, the most common mental health issue. The information provided here is not intended as medical advice and it is highly recommended that one consults a health expert before consuming CBD products. This is merely intended as an overview various types of CBD commodities (such as CBD Oil UK) of that may be of assistance to people suffering from anxiety or stress.

Overall, the participant experience compiled in this report partly mirror that of Finland’s basic income-type experience first results: more agency, anxiety relief, more social connection and financial security. The majority started eating better, and were able to make plans for the future…which evaporated as soon as the pilot was cancelled by Doug Ford’s government. In numbers, answers returned the following results (from Basic Income Canada Network):

  • 88% of respondents reported less stress and anxiety and 73% had less depression.
  • 58% improved their housing situation;
  • 34% found the basic income supported employment by affording transportation to work, child care or ability to start or expand a business;
  • 32% of respondents were able to go back to school or upgrade skills (note that a majority of employed participants in the government baseline survey – recipients and control group – said they were in dead-end jobs);
  • 74% were able to make healthy food choices and 28% stopped using food banks;
  • 46% were able to pay off debt;
  • 52% were able to see friends and family more often, 55% were physically more able to do activities, and 45% reported fewer health problems;
  • Many respondents talked about working hard their whole lives, often at multiple jobs, but never really having a life, until basic income made that possible.

More information at:

Kate McFarland, “ONTARIO, CANADA: New Government Declares Early End of Guaranteed Income Experiment“, Basic Income News, August 2nd 2018

Sara Bizarro, “Ontario, Canada: Reactions to Ontario Basic Income Pilot Cancelation“, Basic Income News, September 18th 2018

Daniel Fabbri, “Four Ontario Mayors asking the Federal Government to take over the Basic Income Pilot“, Basic Income News, September 30th 2018

André Coelho, “Canada: Ontario’s basic income experiment ended, but the ground is fertile for more pilots“, Basic Income News, December 22nd 2018

Sheila Rogehr and Joli Scheidler-Benns, “Signposts to Success: report of a BICN Survey of Ontario Basic Income Recipients“, Basic Income Canada Network, February 2019

André Coelho, “When a few drops of rain allow flowers to blossom: Finland’s basic income experiment generates its preliminary results“, Basic Income News, February 16th 2019