by Guest Contributor | Aug 24, 2018 | News
In an article published on medium, with the title “How Not to Bungle the Revolution”, Conrad Shaw, who is working at the Bootstraps project, a docu-series following the stories of 21 Americans receiving an unconditional income supplement for two years, explores the evolution of the discourse surrounding universal basic income (UBI) in relation to the Federal Job Guarantee.
Shaw addresses progressives, warning them that the Federal Job Guarantee (JG), an idea presented as an alternative to Basic Income, is actually misguided.Answering some common questions about UBI, he tries to demonstrate that what makes JG a more appealing solution is mostly appearance. This appearence is given by the perception that it would let people gain purpose from their job, wouldn’t make the government as huge as UBI would, wouldn’t subsidize bad jobs, wouldn’t create inflation, wouldn’t give money also to the wealthy and, mostly, that it is more politically feasible.
Shaw examines the former statements, explaining how UBI isn’t a free handout of money, because it’s a redistribution of what it has been gained through the use of common resources, how it doesn’t subsidize bad jobs, but gives contractual strength to employees. In Shaw’s words: “UBI is like an individual strike fund for every worker.” According to Shaw, it wouldn’t boost unemployment, because, among other reasons, it is within human nature “to grow, to live comfortably, to have new experiences, and to thrive. Nobody wants to stare at a wall in a crappy apartment for 80 years, eating cheap grocery food, just because it’s possible.”
Even if UBI is also directed toward the rich, he continues, it actually acts as a mean of redistribution from the income top to the bottom, and whilst JG would make people dependent from the government, UBI is a mean to make bureaucracy extremely leaner. A FG, on the other hand, would mean a great deal of increase in bureaucracy, and most importantly, leave a lot of open questions about the actual possibility of matching skills with jobs.
Shaw gives particular attention to the subject of political feasibility. JC, he says, may sound as more feasible, but it the mere continuation of an existing paradigm, since it hasn’t the innovative strength of UBI. It must not be proposed as an alternative to UBI, because it lacks its transformative power and wouldn’t bring the same degree of change. However, there is nothing forbidding their combination. UBI nonetheless needs to be the first step, the foundation of safety on which to build, to which later on possibly add the job guarantee, as their combination would not lead to additional costs, because they partially overlap, but would allow for the leveraging of the benefits.
He predicts that given the growth of the movement supporting UBI, it will be one of the main themes at the elections in 2020, and as more trials are completed and the problem of automation becomes clearer every day, the discourse supporting UBI will only gain momentum. Given that, he recommends not to compromise, as accepting a FG in lieu of a UBI would wreak that momentum.
More information at:
Conrad Shaw, “How Not to Bungle the Revolution”, Medium, June 12th2018
by Jelena Vitic | Aug 2, 2018 | News, Research
Picture credit to: iStock
The start of the longest and largest Universal Basic Income (UBI) experiment in Kenya and the approaching end of the trial in Finland spark a new discussion among experts on the effects of ‘no-strings attached’ money transfers.
An article published in Nature in May 2018 discussed the importance of randomized trials in informing researchers and policy makers alike about the feasibility of an UBI scheme. The article states that critics of the currently employed conditional welfare systems believe that the limited results do not justify large administrative costs that come with such policies. Some policy-makers see UBI as a more affordable alternative that has more potential to alleviate poverty, according to the article, but the costs and benefits of UBI schemes still have not been clearly identified. With that in mind, many decision makers prefer to employ a data-driven approach by making randomized trials, the most universally accepted method of gathering information about the effects of UBI. However, even supporters of the evidence-based approach claim that designing and conducting UBI trials comes with its own set of difficulties. They point out that it requires a large amount of planning and researchers need to look for benefits in a wide variety of areas such as health, education, nutrition and job-seeking. Furthermore, lack of standardized goals and agreed upon areas of impact pose another challenge for advocates of UBI trials.
Damon Jones, an economist at the University of Chicago believes that even clearly demonstrated benefits will not necessarily indicate that UBI would work in practice. He arguments that most resources for the trials come from private funds and only include a small portion of the population. Hence, he thinks trials do not say much about the affordability of big government programs and the willingness of people to fund them through tax increases. On the other hand, he adds that despite these inherent limitations research still should be done.
Others propose that trials have an ongoing impact on UBI discussions. Rob Reich, a political scientist at California’s Stanford University thinks trials will help researchers identify flaws in the process, refine goals and impact areas as well as provide policy makers with some answers they are looking for. Furthermore, supporters argue that over time the studies will provide more insight on the costs and benefits of guaranteed income schemes. Proponents of UBI trials recognize that despite being important, updating research is expensive.
On the other hand, Quartz interviewed experts that expressed doubt whether randomized trials are the best option for analyzing the effects of UBI in the first place. According to Karl Widerquist, many effects will play out over the years and will not be revealed during the experiment, regardless of its size and cost. Nonetheless, he notes there is very little downside to trying it out. Others believe that the benefits have already been proven by initiatives such as Alaska’s Permanent Fund Dividend and there is no need for more research. Matthew Zwolinski adds that UBI has to be “robust enough to survive the political process”, meaning that he sees gradual changes having a higher likelihood of being implemented, compared to radical policies.
Although opinions differ, supporters hope that big trials like the one in Kenya will open the door for future research and help the discussion move forward.
More information at:
Carrie Arnold, “Nature: Money for nothing: the truth about universal basic income”, Nature, News Feature, May 30th 2018
Kate McFarland, “Overview of current basic income related experiments (October 2017)”, Basic Income News, October 19th 2017
Kate McFarland, “US/KENYA: GiveDirectly Officially Launches UBI experiment”, Basic Income News, November 17th 2017
Olivia Goldhill, “We’re giving up on universal basic income before the evidence is in”, Quartz, May 29th 2018
by Toru Yamamori | Jul 5, 2018 | News
Scottish Parliament building.
As reported before on Basic Income News, the Scottish Government has committed to help local government advance their Universal Basic Income (UBI) experiments in four local municipalities (Glasgow, Edinburgh, Fife and North Ayrshire).
Here is an update. On the 20th June 2018, the first official meeting of ‘the Cross-Party Group in the Scottish Parliament on Basic Income’ was held in the Parliament. The group has been formed to examine the options for a basic income as a policy for reform of the current social security system in Scotland, including, where appropriate, its potential sources of funding. It will be co-chaired by Ivan McKee MSP (a member of the Scottish Parliament) and Alex Rowley MSP.
A Scottish Government spokesperson informed on the latest general situation as follows.
“Scottish Ministers have awarded funding to four local authorities in Scotland to undertake feasibility studies and to develop pilot models. This funding covers the financial years 2018-19 and 2019-20. The local authorities will submit a final business case, including proposed pilot models, to Scottish Ministers for consideration by March 2020 – this will set out full details of the ethical, legislative, financial and practical implementation of the pilot on the ground. A decision will be made at this stage whether to contribute to funding the proposed pilots.“
For more details, check Basic Income Scotland.
For more information:
Sara Bizarro, “Scotland: Scottish Government provides £250k to support feasibility work on BI pilots”, Basic Income News, December 2nd 2017
Kate McFarland, “Scotland, UK: Nobel-winning economist Joseph Stiglitz cautions again Basic Income during BBC interview”, Basic Income News, November 8th 2017
Claire Bott, “Scotland’s First Minister announces basic income experiments”, September 16th 2017
This article was reviewed by André Coelho.
by Andre Coelho | May 17, 2018 | News
Since the beginning of 2017 that basic income has been on the political agenda in Gironde, a southwestern region in France. At that time, several Administration task groups worked together, from December 2016 up to February 2017 to reflect on the possibility of implementing a basic income policy in Gironde. Those groups included social network representatives, entrepreneurs, social workers and volunteers, and have deliberated (on the 15th of February 2017), as a “citizen jury”, that basic income should be implemented in France, and adapted locally, in this case for the Gironde region.
Jean-Luc Gleyze, the President of Gironde’s Council Department and of its Permanent Commission has been behind this initiative since early 2017, and a strong supporter of launching a basic income experiment in Gironde. Many press references and a video were produced since that moment, motivated by this initiative, which was praised by former French prime-minister Manuel Valls. A motion proposal “for the experimentation with basic income in Gironde” was presented to government after it had already been reflected upon a French Parliament report (with its synthesis document), undersigned by Daniel Percheron, senator and former President of (French region) Nord Pas-de-Calais Regional Council. This report recommended the experimentation with the concept for 3-year periods, in each voluntary department (region), especially targeting young (18-25 years of age) and pre-retirement adults (50-65 years of age).
Jean-Luc Gleyse. Credit to Alban Gilbert.
At the moment, the basic income pilot project in Gironde is being planned for 2019, after President Emmanuel Macron has also shown his will to authorize and support local experiments. In a first step, this could mean co-financing in the order of 100 000 € to support feasibility studies, in preparation for actual experiments. These feasibility studies are thought to last for four to six months, and define the experimental parameters, such as population segments, duration and basic income level.
According to Jean-Luc Gleyse, basic income has the potential to respond positively to poverty and insecurity situations, adequately assist people as instability in the job market deepens due to automation, can provide choices in the present ever-changing lifestyle and also decrease the non-uptake of social benefits, “which reach 34% in Gironde and almost 40% nationally”.
Although the basic income experiment envisioned for Gironde has not been deployed yet, an online basic income simulator has been made available to citizens. This tool allows people to look at the possibilities for a basic income in France, and its consequences as far as financing is concerned.
More information at:
(in French)
Daniel Percheron, “Le revenue de base en France: de l’utopie à l’expérimentation [Basic Income in France: from utopia to experimentation]”, Sénat Francais, October 13th 201
Pierre Cheminade, “Vers un revenue universel en Gironde dés 2019 [Towards an universal basic income for Gironde in 2019]”, La Tribune Bordeaux, November 27th 2017
by Quentin Mathys | May 10, 2018 | News, Research
District of columbia Lincoln memorial Washington monument. Credit to: History Channel.
The district of Columbia has released on the 27th February 2018 a policy analysis that examines different approaches and strategies for providing a locally-funded guaranteed minimum income or universal basic income for its residents.
The study, named “Economic and policy impact statement: Approaches and strategies for providing a Minimum Income in the district of Columbia”, starts by evaluating the cost of living in absence of public social safety net assistance for three types of low-income households, 1) single adults without children, 2) single adults with one child, and 3) single adults with two children. The results show that a single adult without children would approximatively need an annual income of US$ 36 988 to meet their basic needs. For a single parent with one child, the annual income need is roughly US$ 66 113, while a single parent with two children would need about US$ 96 885 a year.
The paper then discusses the existing monetary and in-kind entitlements benefits, supports, and maintenance provided by the federal and District governments to low and moderate-income residents. According to the authors, the existing social safety net is strong enough to allow households who have full access to the public benefit programs to meet their basic needs. However, as Ryan Harrison underlines in his article about the report, households most in need for assistance do not qualify for the cash grants available, due to the work requirements of these means-tested policies.
In the next section of the study, the economic feasibility of implementing a basic income in the District is discussed. The authors explore three amounts for basic income where the first one is set at 100% of the Federal Poverty Line (FPL), the second one at 300% and the third one at 450% of the FPL. The associated gross cost of the three policies is estimated at 7, 21.5, and 32.2 billion US$ per year, respectively. According to the authors, the implementations of a basic income set at 450% of the FPL is the only approach that would allow all the households to meet their basic needs. This is debatable, since being above the FPL would, in principle, mean that basic needs were covered. However, the authors fear that such amount would lead to many households deciding to drop out of the workforce and making this implementation expensive and inefficient. This is also questionable, considering existing results from performed basic income pilots. Based on these issues, the report does not simulate the impact of providing a universal basic income in the Columbia district.
Furthermore, the authors only discuss the gross cost of implementing a basic income. Mentioning the net cost would have been relevant, as cost reductions can be expected in existing social assistance programs, and a restructuring of income taxes and /or other forms of taxes to finance the reform. The report, nevertheless, introduces an important discussion about the feasibility of a basic income implementation of in the district of Columbia.
More information at:
Susana Groves and John MacNeil, “Economic and policy impact statement: Approaches and strategies for providing a Minimum Income in the district of Columbia”, Office of the Budget Director of the Council of the District of Columbia, January 27th 2018
Ryan Harrison, “District of Columbia releases policy analysis for basic income”, Medium, April 8th 2018
“Council Budget Office releases Economic and Policy Impact Statement: Approaches and Strategies for Providing a Minimum Income in the District of Columbia”, David Grosso DC Council at-large, February 28th 2018
