David Calnitsky has recently published a paper analyzing the impact of basic income on the labor market, on the Socio-Economic Review Journal. The Abstract reads as follows:
“How do firms react when the whole labor force has access to a guaranteed income? One view argues that the guaranteed income is an employer subsidy, facilitating low wages and a ‘low-road’ industrial strategy. The second view suggests that in providing an alternative to work, the guaranteed income tightens labor markets and pulls wages up. This article examines the impact of an understudied social experiment from the late 1970s called the Manitoba Basic Annual Income Experiment, or Mincome. This research focuses on Mincome’s ‘saturation’ site, the town of Dauphin, Manitoba, where all residents were eligible for unconditional payments. Using an archived survey of local firms that inquires into wage rates, applications, hiring, and work hours, I find support for the second view. I close by examining the mechanisms behind the employer subsidy argument and considering the conditions under which a variety of income-support policies might increase or decrease wages, and more broadly, foster compromise or conflict in the labor market.”
Calnitsky concludes in this article that it is unlikely that business organizations will come to support basic income, if it can be shown to increase the bargaining power of workers. However, dependent on certain implementation details, basic income can be made to facilitate exploitation by employers, rather than obstruct it. For instance, if it replaces some welfare state functions, leaving people less economically safe as a result, and hence more vulnerable to (economical) abuse. At the very end, he also reminds readers that support for basic income may be more efficient if made upon “the policy features themselves, rather than a generic proposal suffering from overly malleable and mutable definitions.”
The India Network for Basic Income recently released two new YouTube videos aiming to highlight issues around universal basic income (UBI). The first, which lasts slightly over one minute, addresses the payment of UBI to women, and makes the argument that, as women frequently do unpaid work such as childcare or housekeeping, providing them with a regular income does not count as giving them “free money”, but rather as recognising the work they already do. The second video, which is somewhat longer at over six minutes, deals with a research project on UBI which took place from 2011 to 2013, and with a recent follow-up to this which aimed to look at the long-term effects of the original experiment.
The India Network for Basic Income is the Indian affiliate of the Basic Income Earth Network (BIEN).
The Democratic Party in California is supporting Universal Basic Income (UBI). It is now public that people like Elon Musk have supported the initiative, mainly justified through job losses due to automation.
However, this of course leads to questions about the source of the influence that is supporting a basic income in the California Democratic Party, which has adopted on the 25th of February its official 2018 Platform.
In the Californian Democratic Party scene, UBI is mainstream, apparently, since it now features in the Platform, but not in the US as a whole. Since politicians with a Democratic label have to read and support the party policies, one may conclude that the UBI concept has gained traction in the Californian state, at least.
A growing cohort of young political activist leaders have been adopting UBI in their political campaigns. One such examples is 27-year-old Michael Tubbs, the present mayor of Stockton, California. He has promoted and launched a pilot project in Stockton municipality (funded by the Economic Security Project).
Region 5 (a congressional district) Director for the California Democratic Party, Rocky Fernandez, said that he has been talking about UBI for several years. Bob Wieckowski has also played an important leadership role in having basic income become concrete and part of the platform. The UBI platform proposal went through and “was passed,” in the convention by “thousands of party delegates”.
UBI has now a main statement in the Economic Justice section of the California Democratic Party platform. However, the same platform reinforces traditional Democratic values, which focus on jobs to further economic mobility for all Americans. The Party platform justifies the UBI in order to eliminate poverty, while simultaneously supporting efforts to establish government guaranteed jobs, that will “help people climb the economic ladder.” This could be interpreted as being willing to secure basic economic conditions for all people, while not trusting that these people will work if they get to be economically secure.
The suggested UBOF would consist of £5000 a year for two years, and would be made available to every person in the UK upon request. Although this would fall significantly short of a full, life-long UBI, the study’s authors, Anthony Painter, Jake Thorold and Jamie Cooke, suggest that the UBOF would have a number of potential uses: “A low-skilled worker might reduce their working hours to attain skills enabling career progression. The fund could provide the impetus to turn an entrepreneurial idea into a reality. It could be the support that enables a carer to be there for a loved one without the need to account for one’s caring to the state.”
Noting that the UK’s rate of corporate tax is currently being gradually reduced from 28% to 17%, the study suggests that the UBOF could be funded simply by returning the corporate tax rate to its original level.
The study states that “The UBOF is an ambitious effort to re-envisage the relationship between citizen and state, emphasising trust in people as opposed to a default of suspicion as is the case currently. It also represents a practical step and valuable experiment on the possible road towards a more permanent Universal Basic Income model.”
The RSA states that its mission is “to enrich society through ideas and action.” It regularly publishes research papers on a variety of social issues. Anthony Painter is the Director of its Action and Research Centre, while Jamie Cooke is the head of RSA Scotland, and Jake Thorold is a research assistant.
The second annual Basic Income Asia Pacific conference will be held in Taipei, Taiwan on March 17 and 18. This year’s theme is “Asia Pacific’s Economic Future.”
Keynote speeches will be delivered by Enno Schmidt, the Swiss referendum leader, and Dr. Sarath Davala, the lead researcher for the UNICEF basic income trials in India.
“The focus on Asia is necessary to understand how we are going to interpret the idea regionally – given Asia’s own specificities and peculiarities. This conference is going to open this much needed conversation. This event is yet another milestone achieved by the UBI Taiwan, one of the most dynamic national groups,” Davala said.
Leading thinkers in academia, government and NGOs from Taiwan, mainland China, India, Bangladesh, Singapore, the United Kingdom, and the United States will join the conference to discuss the challenges facing the Asia Pacific and potential solutions, such as basic income.
Dr. Hermann Aubie is a lecturer at Aston University in the United Kingdom. His research specializes on comparing basic income movements in East Asia and Europe.
“This conference offers a rare and precious opportunity in the Asia Pacific region to build upon the wave of renewed attention that Universal Basic Income gained in recent years to discuss actively how we can create a wider consensus and concrete initiatives that build upon existing basic income designs and pilot implementations across the world,” Aubie said.
The entire conference will be live-streamed on UBI Taiwan’s Facebook account, including both English and Chinese audio simultaneous translations.
Taiwan has recently lowered the threshold for referendums, which has opened the possibility for a UBI referendum in Taiwan. This will be a topic of particular focus for two of the presentations at the conference, including Schmidt who will present on how Taiwan can lead Asia with a UBI referendum.
“With the introduction of Direct Democracy this year in Taiwan, the UBI Taiwan proponents have the same chance and political tool to turn UBI into a nationwide discussion and to push it to a people’s vote like the Swiss have done,” Schmidt said.
The conference coincides with increased discussion of basic income in the Asia Pacific, with the UN Development Program holding roundtable discussions on basic income in Beijing, China last October and December, as well as Korea discussing designs for a a pilot program.
“With the second annual UBI Asia Pacific regional conference approaching, we have expanded into two days, allowing us to share our ideas of how to improve society through implementation of Universal Basic Income,” said Ping Xu, co-founder of UBI Taiwan and UBI Asia Pacific.
The conference will examine the economic and social challenges facing the Asia Pacifc region, and will assess what a basic income policy can do to address these issues, such as inequality, automation, globalization, demographics, and environmental issues.
Last year’s conference attracted 100 participants and thousands of online viewers. The conference helped bring attention to basic income in Taiwan, with the formation of a UBI summer fellowship program and discussions with the Taichung Social Affairs Bureau about a potential pilot program.
The event is organized by National Chengchi University’s (NCCU) College of Social Sciences, and NCCU’s International Master’s Program in Asia Pacific Studies. It will be held at NCCU on March 17 and NTU on March 18. The event’s volunteers and coordinating team are part of UBI Taiwan.
“At this juncture of history where poverty and inequality are rising rapidly, I think we urgently need a “new universalism” of the kind UBI promises. There’s a long road and a lot of work ahead of us to make it a reality, but as more and more people place their hope in UBI’s emancipatory potential to protect their livelihood, human rights and dignity, we just can’t afford to disappoint such expectations,” Aubie said.
