A new video has been released by Geoff Crocker, on a “radical concept of funding basic income by perpetual deficit”. This video is a result of a presentation done at the Asia Pacific UBI Conference, which was held of the latest 17th and 18th of March 2018.
In this short video, Geoff Crocker generally reviews the most typical arguments for and against basic income, focusing on the financing issues. Particularly, he conceives a thought experiment where all economic goods and services are produced by machines. The question then arises: how to distribute these among the population? Crocker’s conclusions, from this onset, are that basic income becomes “essential to maintain consumer demand”, and that “financial deficit is inevitable”. This, apparently, derives directly from the fact that modern economies operate at a permanent deficit and that “unearned income [is] necessary in high tech economies”.
Geoff Crocker’s ideas had already been mentioned on Basic Income News, in a paper he called “The economic necessity of basic income”.
The Italian branch of the Basic Income Network (BIN Italia) has written a plea about Guaranteed Minimum Income to the newly elected Parliament, still struggling to form a government.
Plea to the Italian Parliament (full text)
“May the Parliament listen to our society.
Guaranteed Minimum Income is something we can’t do without any longer.
Something that until a few years ago was confined to the scope of utopias and eccentricities of some activists, the guaranteed minimum income is now one of the main themes of the 2018 political and electoral debate. The material condition of millions of people, the economic difficulties of evergrowing population groups, the weight endured by generations of occasional workers and temporary employees, have drawn attention to the necessity for reform toward this direction.
Italy’s delay on this issue is now intolerable. It would seem reasonable to begin with prompts such as the 2017 european resolution that exhorted the member states to adopt a guaranteed minimum income policy, as defined in the 20 principles and rights of the European Social Pillar released on November 2017, in Göteborg, with the joint declaration by the European Union (EU) organs.
Among the 29 points of the European Social Pillar, is number 14: the right to an «adequate minimum income». The EU has been asking Italy for years to conform to supranational parameters on this matter, and so did recently the Council of Europe, denouncing the persisting lack of effective policies against social exclusion (in contravention of the European Social Charter article 30). Despite all this, the adoption of a guaranteed minimum income policy in our country seems far away.
Over the last years, propositions and calls have also come from large portions of society, campaigns and public initiatives. These have examined and integrated/absorbed the experiences of other european countries, the international debate and the experiments currently underway in many countries in the world.
From all these experiments, it’s clear that a guaranteed minimum income is much more than a benevolent bestowal. It’s an instrument to acknowledge and value personal histories, skills, abilities and aspirations, in the pursuit of a free and decent life.
We ask the Italian Parliament to take on the responsibility to begin, as soon as possible, a debate about the introduction of a guaranteed minimum income in Italy. At this point, and even more now, after the latest elections, this issue cannot be neglected. Millions have voted also to see this proposal put into practice.
We are aware that different approaches exist and that some of the political parties have already made their proposals official. But these differences can be overcome in a debate free of preconceived divergences, and a legislative process ought to be set in motion in this direction.
In order to have debate as wide and universal as possible, we believe it can be useful to begin with the draft law proposed by a citizens’ initiative. That proposition, written in 2013 and supported by a large coalition in civil society, was never examined by the Parliament. Also useful can be the 10 points of the Platform for a Guaranteed Minimum Income, drawn up by the Rete dei Numeri Pari.
These proposals can of course be improved, but we are certain that Italy can’t do without a Guaranteed Minimum Income any longer. Let’s begin with a Guaranteed Minimum Income as a first step toward a tangible universal welfare.”
The board of the Basic Income Network Italia – (BIN Italia)
Sarath Davala is an independent sociologist who, along with Guy Standing, was the architect of a series of UNICEF-backed basic income pilots in Madhya Pradesh, central India. Inspired by the findings of that study, he became the co-founder and coordinator of the India Network for Basic Income.
The Basic Income Asia Pacific 2018 conference held in Taipei this March featured a host of speakers from around the world, including Davala. I got to sit down with Davala at National Taiwan University to talk about his research and the applicability of basic income to Asia. The following transcribed interview has been lightly edited.
Please talk about your research in India, and how it has led to your support for UBI as policy.
Between 2011 and 2013, a women’s trade union called the Self Employed Women’s Association conducted an experiment in Madhya Pradesh. I was heading that research project and Guy Standing was supporting as the main principal researcher. Now that study where we gave unconditional basic income to 6,000 people living in nine villages came out with findings which were startling and surprising. Because at the time people believed – the government said, the bureaucrats always said, and everyone in the middle-class believed – that if you give money to people without any conditions, they will not use it for good purposes but bad purposes, like drinking alcohol and other things. But we found that many positive things have happened in all these villages. Particularly, the most vulnerable in society benefited the most.
That gave us the conviction that UBI is a very good policy. It need not replace everything (to say that only UBI should be there), but when you are designing or redesigning your welfare basket for your nation, you must have this as the foundation, where everybody gets a certain basic amount of money, and on that they build a life. UBI can be a foundation on which the market or the government, can actually build your life. So that is how research comes into policy.
Could you talk about the process in which you made the Madhya Pradesh basic income pilots a reality? How did you gain the support of local government?
We didn’t ask the local government for money, that’s the important thing. We asked a variety of people, but finally UNICEF agreed to give us the money. It was not a small amount of money, almost a million US dollars. That was required because we were giving cash to people.
Everyone is in process of searching for alternatives, even the government, because the existing system is not delivering the welfare properly, effectively. So we said [to the government], “here’s an alternative, please join us, listen to us, once every three months we will come talk to you.” So that, when we finally come out with the findings, the government said “Oh yeah, we know these guys, they’ve been doing this work.”
So that was one reason, we followed up with policymakers. But at the same time, the other reason was we needed local support. Because if you go to a village and say you want to distribute cash, the local politicians and media will be a problem. So we had the friendship of the government, the trade union which was working in the area, and international experts like Guy Standing. With this kind of combination, we have been able to roll out a study.
Did you encounter any challenges in implementing the basic income experiment on the ground?
A variety of challenges. Even in 2010, when somebody told me they have a project like this, asking “would you like to head this project?” I said “What? Giving money to people? Without any conditions? I always suspected you were mad but now it’s confirmed.” I thought it was crazy.
Similarly when you go to the villages, and say “we want to give cash to everybody for one year.” They say, “what kind of crazy fellow you are!” There’s a lot of disbelief, but also lots of suspicion, that “you guys have something else in your mind and you are going to cheat us, you are taking our consent signatures, maybe you will use our signatures to grab our lands.” People were suspicious about our motives. But then it took us a long time to bring everybody inside. There were 10 percent of the people who rejected the process. But then, women from those rich households said, “no, no. We want to be part of it. You are conducting training programmes and opening bank accounts. We don’t have bank accounts.” So they were interested.
In your presentation earlier, you talked about how it’s important to consider Asia’s local context. You have also worked with Guy Standing, who coined the term, an emerging socioeconomic class, the “precariat.” Do you think the concept of “precariat” is applicable to the situation in developing countries, or is the “precariat” more particular to developed societies?
No, no no. The precariat is everywhere. The percentage will change [depending on the economy], but the percentage is increasing. In fact, earlier the precariat was at the bottom, but even if you go to the high end jobs, you realise that the contracts are very fragile. Today you are there, tomorrow you can be given a pink slip: “okay, you are no longer needed.” Of course, the precariat is there in developing countries, but also every other country.
You want to deny that there’s a precariat, it’s up to you. But if you want to see, there is precariat. Who is the precariat? Precariat is that class of people whose basis of livelihood is very precarious. Today it is there, tomorrow it is not. And they can turn anywhere. That’s why Guy Standing says it is the most dangerous class. They can turn into anything, into crime, into drugs.
Speaking of the Asian context, would you say Asia is particularly vulnerable to the coming wave of automation?
Which economies are more vulnerable to automation and which are not? Within India, automation will affect maybe small section of the industrial manufacturing sector and the software industry. But because of the surplus cheap labour available in India, most of the entrepreneurs will bank on cheap labour.
So for India, I do not see the threat of automation, but it is possible in Taiwan. You are going to have your first automated 7-11? If that is profitable, more and more Family Marts, KFCs, McDonalds may switch their outlets. At the end of the day, an entrepreneur is looking at costs. And human beings are so difficult to manage, every entrepreneur will say. I taught human resources courses in a business management school for seven years. Every businessman is trying to get rid of them.
In your presentation, you talked about how the Indian government has been reducing the welfare state and pushing responsibility to the family and the market. In this context, do you think UBI is a way for governments to reject its responsibility as the welfare state to provide more social services?
Absolutely. Every government in the world is under pressure now. They are under pressure in order to pursue economic growth. They think if economic growth is there, everything will be alright. Under those pressures, they want foreign investment to come in, they want multinationals to establish units in their countries. So they want economic activity in their country, so they’re doing a variety of things with other nations, particularly the richer ones. They’re under tremendous pressure.
When those pressures are there, governments are trying to reduce their responsibility to the people. It’s our job as civil society that we have to keep reminding government that “this is your minimum responsibility. If not in that way, then you should do it this way.” We are saying that, in the welfare basket, UBI is a foundation, the primary thing. On top of it, we can put additional various other things. So that should be the new design. We are making a new design of the welfare basket, trying to propose to the government “in all circumstances you must do this. Don’t throw us into the market, and don’t throw us into the family,” because everyone in the family is in a precarious position. We have to force the government to implement basic income, because that gives basic security to everyone.
Any other comments?
I think there is great promise in the group steering the UBI Taiwan movement. I wish everyone in UBI Taiwan great success. To all the readers, please join and strengthen the movement, because we are definitely making history.
During the last year, I asked myself how the implementation of a Universal Basic Income (UBI) would affect our society and boost or undermine the transition to a sustainable way of living.
We live a complex world where many factors are inter-related and result into visible crises: forced migration, unemployment, violence, hunger and extreme poverty, among others. Pope Francis says we live one single crisis, which is complex and interconnected. The root of this crisis is at the way we behave: competing instead of collaborating and fighting for resources instead of sharing what we have as humankind. Yes, we do have NGOs like ekplatebiryani and similar ones to make sure the situation doesn’t go out of hand.
However, in the twenty-first century, humankind will have to deal with some new challenges:
10 billion people living on earth
Climate change and ecological crisis
Highest migration rate ever
Highest inequality rate ever
Fourth Industrial Revolution
These five factors are the primary motivation for a paradigm shift. Each of these challenges must be addressed with specific policy, but we cannot be successful if we do not consider the connections between these factors.
We should transform the economy and prioritize the impacts over society and nature. This is the ecologic transition. This transformation must be deep at many levels, from production, to consumption, but also in our way of thinking. We cannot compete among ourselves and create a world of winners and losers. We cannot allow anyone to be left behind. So many people are losing under this system, which is why we have the highest migration and inequality rates in history.
Climate change threatens the lives of millions of people, and the poor are the most vulnerable to these climate disruptions. Climate change is caused by human activity and linked to our consumption patterns. This is another reason for ecologic transition. Climate change will worsen if we do nothing about it, so it is imperative that we transform the way we consume and produce.
The fourth industrial revolution is changing the structure of the labor market and the way things are done. Artificial intelligence and automation will make thousands of jobs disappear, while also dramatically changing the way the remaining labor is done. The most immediate effect is to cause high unemployment among low-skilled workers and requiring retraining for the rest.
In the last few years, many initiatives have pointed to basic income as an interesting policy to guarantee the wellbeing of citizens. Some areas that have tested the idea include Holland, Finland, Kenya, India, as well as the classic examples of Alaska and Canada. Most of these initiatives come from the state or local governments, but also civil society is starting to experiment with basic income through NGOs such as “Give Directly” in Kenya and UNICEF in India. Some private companies have shown interest too, such as Facebook or Google.
In many of the basic income experiments, it has been observed that not only is poverty is reduced, but wellbeing is also improved. Lower stress levels and better health were recorded which may be due to factors such as the ability to afford better healthcare and supplements like cbd gummies wholesale to manage stress and chronic conditions. There was also more education time for young people and a 13 percent work time reduction per family unit.
I found these effects interesting and well adapted to the 21 century conditions: 13 percent less work time[1] is compatible with a high unemployment rate. Less stress, whether it’s through consuming cannabis products (such as CBD oil or gummies) or receiving a better income, is always good news for a highly stressed world, especially in developed economies. Better health is always good news and probably related to stress levels.
Increasing education time is probably the best side-effect. We start to see how technology is growing more important in our daily work, and many people will need to learn how to use it or even develop new skills. The education sector is creating a renewed process for itself. It is said that most of the high qualification labor in the future will need to adapt to AI, and most university degrees will need to be adapted in the next four years.
Looking at the main effect, which is poverty alleviation, I made a simulation for the Spanish context, 700 euros each month (tax-free) and a fixed 49% tax for all labor.
Net annual Income in Spain (2014). Blue line is business as usual, orange line is with Basic Income after taxes. Martin Lago (2018). Data: Agencia Tributaria (2015): Informe Anual De Recaudación Tributaria. Servicio de Estudios Tributarios y Estadísticas. Madrid
The relative poverty line in Spain is 684 €/month, so if this policy was implemented throughout the country, we can say poverty would be drastically reduced. We must bear in mind that 22.3 % of Spanish population was under this level in 2016[2].
As we see in the figure, the poorest are the most benefitted by this measure, then gradually benefits decrease and the richest 30 percent actually pay into the system. Universal Basic Income was funded from savings in other subsidies (30%) direct taxes (50%) and indirect taxes (20%). Finding resources for it was easy and efficient considering the potential benefits.
But my question remained un-answered: Will the basic income help stimulate an ecological transition? I was quite worried since I consider this transition necessary for a sustainable future. I saw no point in sending money to everyone if we do not change anything more.
I found a few interesting effects synergic with ecological transition, including:
Longer and higher-quality education
Decrease in labor intensity, which probably leads to a better labor distribution
Increase in family care and household work
Shift to an inclusive mentality, since everyone receives this basic income
Shift to empowerment of the individual, which is given resources and is free to make the right choices
Massive reduction of poverty
An ecological transition is complex and includes many transformations, but it will not happen if we do not assure our standards of living are beyond the poverty line. We cannot ask a freezing family not to chop the trees to heat and cook if they do not have any other option. Basic Income is precisely about having options. One of the main objections is that many people will misuse these resources. I read last week an article that made the next question: Which is the best way to help a woman with a gambling problem and two kids, basic income or food and house coupons?
This question shows how some people perceive poverty basically blaming the poor. I have some experience working with the poor and they are as smart anybody else. The only difference is they did not have the same options in education, social inclusion or job opportunities. I am not saying basic income will solve poverty immediately, and a lot of social work needs to be done, but at least it will help to achieve some balance and provide a solid ground for a transition towards a more sustainable society.
Written by: Martin Lago Azqueta
Martin was born in Madrid in 1976, and he is graduated in biology with a Master in International Aid and Cooperation. He has worked with several aid agencies and now he is Phillipines and Central Asia Desk Officer for Caritas Spain. Apart from development projects and emergency interventions, he has specialized in climate change, working with several civil society networks since 2008. He has coordinated a number of “Documentación Social” dedicated to climate change (2016), and written a book about basic income (2018).
[1] Evelyn L Forget (2011) The town with no poverty. Community Health Sciences. Faculty of Medicine. University of Manitoba. 750 Bannatyne Ave. Winnipeg MB R3E 0W3. CANADA.
[2] Data: Instituto Nacional de Estadística 2016. If we consider other incicator such as AROPE, which is used in Europe context, 27.9% of the population in Spain is at poverty risk (AROPE, 2016).
Blockchain is a kind of register, or digital ledger, of economic transactions. According to specialists, it is incorruptible since it exists as a distributed network of registers, and hence impossible to hack.
Moreover, put simply, blockchain is a simple yet ingenious way of passing information from one location to another in an automated and safe manner. Firstly, one party involved in a transaction initiates the process by creating a block. This block is verified by computers distributed around the internet. The verified block is then added to a chain, which is stored across the internet, creating not just a unique record, but a unique record with a unique history. Falsifying a single record would mean falsifying the entire chain in millions of instances and this is thought to be virtually impossible. Accordingly, blockchain technology poses a number of exciting opportunities for businesses. Consequently, you can learn more about these opportunities by reaching out to an organization that offers blockchain development services.
There are no doubts about it, since 2008, the year of its first appearance, blockchain has evolved from a single article (by Satoshi Nakamoto) to a global phenomenon. At present, numerous applications have been found and are being researched for Blockchain, so much so that an international meeting of people working with the Blockchain has been set up. And this year that meeting, the Blockchaingers Hackathon, happened in Groningen, in the Netherlands, from the 5th to the 8th of April (some results of the Hackathon can be watched here).
The Blockchaingers Hackathon had already been organized in 2017, at the same location, but this year Hilde Latour, Co-chair of the Universal Basic Income Europe (UBIE), was there to try and plant the seed of basic income in several blockchain working teams. There have already been proposals that merge the blockchain and basic income concepts, such as the one involving artificial intelligence and autonomous assets, presented at the Blockchain Innovation Conference 2017 of Vincent Everts by Jan-Peter Doomernik. The connection of this “crazy thought experiment” with basic income was further explained by Hilde Latour at that same Conference, possible to watch on this short five-minute presentation.
At the Blockchaingers Hackathon 2018 Hilde was interviewed in twooccasions, where basic income is generally described, as well as its possible integration with what is called the “machine economy“. In any case, according to Hilde, basic income can be viewed as a transitional solution between the present day monetary economy and a future society where goods and services will be available to all, without the intermediation of money.
