by Daniele Fabbri | Nov 24, 2019 | Opinion
Credit Picture CC(Paul Domenick)
A series of articles concerning the role which basic income (BI) could play in the fight against unfree labour in now on openDemocracy.
The introduction by Neil Howard sets the tone for the debate: even though many thinks that coercion by evildoers is the main cause for modern day slavery and human trafficking, this is not the case. Exploited workers often consent to their situation because is their only option to make ends meet. The question arises: “if we really want to end ‘modern slavery’, and indeed if we’re serious about protecting people from all forms of exploitation, then why not simply ensure that everyone always has a minimum amount of money in their pocket such that they can say no to bad work?” Which is exactly what Universal Basic Income advocates maintain.
The debate starts with an article by Guy Standing, “Basic income and the three varieties of freedom”, libertarian, liberal, and republican freedom. As “freedom costs money”, the impact of the introduction of a Basic Income is greater than its monetary value. Guy Standing explains that the BI works by changing structurally the society in which it is implemented, ant its “emancipatory value is greater… than the money value”.
Simon Binrbaun and Jurgen De Wispeleare, with “The power to walk away: is basic income a bridge too far?”, are concerned with whether basic income really enhances workers’ freedom or not. Their point is that the rationale of BI as an instrument of freedom is clear, as it would endow workers with more contractual power, but when the proposal is faced with reality, some concerns arise. Firstly, the monetary amounts provided with UBI under current proposals seems insufficient to give workers true exit power from their job. Secondly, even if workers were to opt out from a job, the structure of the job market is such that it allows for horizontal but not vertical transfer. And thirdly, it remains to be seen how employers would react to more contractual power from their employees, having them the possibility to use automation as a substitute for human workforce.
Karl Widerquist’s article, “End the threat of economic destitution now”, focuses on how
“UBI is not something for nothing. It is the just compensation for all the one-sided rules of property and property regulations that society imposes on individuals.” Because governments enforce property rights systems that block many from accessing naturals resources, poverty and destitution are not the result of personal choices, but of the lack of freedom implied in this allocation of resources. UBI would thus acts as “… the just compensation for all the one-sided rules of property and property regulations society inherently imposes on individuals”.
Ana Cecilia Dinerstein, with “Basic Income bows to the master”, accuses basic income of just confirming the domination of money over our lives. The elephant in the room, she says, is the lack of a discourse about money per se. Pointing her finger not at the lack of money nor at its unfair distribution, she states that the problem is human dependence on money; one that cannot be solved with UBI. UBI, in her view, “will contribute to the perpetuation and subordination of humans to money”, and it wouldn’t bring dignity to people, as it would only assure material subsistence.
“Feminist politics and a case for basic income”, by Kathi WeeksandCameron Thibos, considers the potential for UBI to fix the severance of work and wages.
“Wages do not compensate workers, and especially women, for most of the work they do. A basic income could change that.” Inspired by the Wages for Housework movement in the 1970s, the authors discuss of how much of the activities people (and especially women) have to perform are not remunerated. UBI can be the right tool to enhance freedom in the household and in society as a whole.
In “Basic income can transform women’s lives”, Renana Jhabvalaexplores the result of basic income pilots in India. Starting from a small study in Delhi to the one of Madhya Pradesh, with eleven thousands taking part, we learn how the Self Employed Women’s Association (SEWA), a women’s trade union, became one of the earliest advocates of basic income in India. This happened because the introduction of UBI brought on positive welfare effects, an increase in equity, and generally economic growth effects.
“Our pilots showed that basic income has the power to transform the lives of whole families, and especially those of women. Now it is time for India to take the next step and make basic income a reality for all.”
More information at:
“Universal basic income, a way though the storm?”, openDemocracy, September 16, 2019.
by Andre Coelho | Nov 15, 2019 | News
Next year 20th Basic Income Earth Network (BIEN) Conference will be held in Brisbane, Australia, jointly hosted by Basic Income Guarantee Australia (BIGA), The School of Social Science and Faculty of Humanities and Social Sciences (University of Queensland) and The School of Public Health and Social Work (Queensland University of Technology).
The event will occur on Monday 28th to Wednesday 30th of September 2020, and is entitled “Basic income, the ecological crisis and a new age of automation”. Submission of abstracts can be done until Friday January 31th, 2020, considering the following main themes / questions:
Can basic income play a role in tackling the multifaceted ecological and social crises confronting the world today?
As climate change and the ‘new age’ of automation continue to re-shape the globe, can and should basic income form part our answer to these challenges?
Can basic income be part of a Green New Deal or is a Job Guarantee a better way forward?
Can basic income promote ‘de-growth’ and genuine sustainability?
Should automation and digitisation be used as a justification for basic income?
What is the evidence regarding the impact of these technological processes on the availability of jobs?
Is basic income an adequate replacement for any technological unemployment that may occur (now or in the future)?
More information at:
20th BIEN Conference website
20th BIEN Conference call for papers
by Guest Contributor | Oct 24, 2019 | Opinion
For the past 3 years, my primary goal has been to get the Liberal Party of Canada to include Unconditional Basic Income (UBI) on its electoral platform. (Support for this policy is already in the official Party program.) The election was held on Monday, October 21st and UBI was never mentioned. My ultimate goal is to see UBI implemented in my lifetime.
I ended up fighting on two fronts and losing on both.
The first front consisted of my lobbying efforts within the Liberal Party. I was hoping I could convince them to include a promise to implement UBI as a commitment to the electorate should they win re-election. When I got cold feet and neglected to contact the guy who was writing the platform, my project was probably doomed. Plus, several weeks into the 6-week election campaign I changed strategies. On September 19th an independent report by UBIWorks was published. It presented the case that the Canada Child Benefit was a UBI. I stopped presenting Basic Income as an experimental policy to be tested and, instead, argued that it was a fait accompli in Canada, hiding in plain sight. My efforts to get the press to ask questions and to stimulate debate among the Liberal candidates came to nothing.
Despite high-level contacts within the Party, I had the impression that my message was not getting through to the right people. In hindsight, it is equally possible that my suggestion was being heard loud and clear in the right quarters and that appealing to their electoral self-interest rather than their consciences was spot on the best approach. After all, while I was emphasizing the economic impact of the Child Benefit for GDP growth, job creation, corporate profits, and tax revenue, the platform kept droning on about poverty reduction, a subject that people would rather not think about because they find it depressing and it makes them feel guilty. Perhaps Liberal strategists, who were staking their reputations on their message, simply rejected my proposal as not being something that would, at this point in the campaign, help them win reelection. Was this a mistake that partially explains why the Liberals lost their majority in the House of Commons? It would be pretentious of me to suggest this.
However, today’s flop may yet bear fruit in the next electoral cycle in 4 years. This is what cooler heads than mine thought from the outset.
While all this was going on, a second front was opened with my allies in the Basic Income community. To bolster my position that UBI already existed in Canada under another name, I tried to convince famous people in the movement to lend their credibility to this argument. I was flabbergasted by the strong and nearly universal resistance I encountered: no, the Canada Child Benefit could not be called a Basic Income, full stop.
While two or three people got on board immediately, most of the cognoscenti insisted that what I was advancing was inconsistent with the Basic Income Earth Network (BIEN) definition of UBI for a variety of reasons. Theoreticians and experimentalists alike, as well as activists, flatly refused to go along with my plan to leverage this unique opportunity to change the narrative about UBI. I thought: “I’m caught in a paradigm shift, as it happens!”
Some argued that the Child Benefit was not universal because it was only earmarked for kids. Yang’s Freedom Dividend which excludes minors still qualifies as a UBI, though. Others claimed it violated individuality because it was given to families, as though it makes any sense to hand $500 to a toddler. However, most objected on the grounds that the Child Benefit is means-tested. This was the breaking point where everything I was trying to do simply collapsed. I never saw it coming.
The Canada Child Benefit is not means-tested, it is income-tested. People outside Canada are colour-blind to the distinction. Income-testing is just not part of their paradigm. Means-testing is an evil policy tool that allows bureaucrats to arbitrarily deprive vulnerable people of funds and services that they need and have a right to receive. It grinds them into the ground and makes an example of them to terrorize everybody else. Income-testing is a horse of another colour.
In Canada, we have a progressive tax system just like the one Adam Smith himself proposed: “It is not unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue but something more than in that proportion.” That is why no one questions the practice of taxing back from the rich funds equivalent to the Child Benefit from which they derive no important advantage and thereby recover some of the cost of a program, which is immensely useful for everybody else. Conscientious objectors to means-testing will insist that even when this claw-back is done specifically for the purpose of recouping UBI, it does not infringe on the principle of universality because it is done in separate operations, the right hand not knowing what the left hand is doing. In Canada, we tend to view this as an elaborate and unnecessary fiction. Covering up the mechanism does little to hide the process which serves no other purpose than to claw back UBI from the rich.
In the FAQ on the BIEN definition of Basic Income, we read under the caption Is Basic Income paid irrespective of income?
“Taxable “means” may need to be taxed at a higher average rate in order to fund the basic income. But the tax-and-benefit system no longer rests on a dichotomy between two notions of “means”: a broad one for the poor, by reference to which benefits are cut, and a narrow one for the better off, by reference to which income tax is levied.”
The second notion is used universally to assess the Canada Child Benefit, which is why we use the term income-tested and not means-tested. My argument failed to convince. How it is possible, on the one hand, to clearly distinguish the two notions and, on the other hand, still insist on using the same term to describe them?
I think we are confronted with two incommensurable competing paradigms in both the political sphere and the academic domain. The old paradigms have accumulated a thick crust of unresolved problems such that business-as-usual can no longer operate smoothly. In politics, poverty reduction continues to dominate social policy discussions even though it no longer provides useful solutions. In the UBI academic community, a rigid definition stifles progress towards implementation by ensuring that the ideal program remains unattainable. I will be fleshing out this argument at a later date.
I have not lost hope that the politicians will eventually learn to frame UBI as a powerful economic stimulant and an entitlement for all Canadians, especially the middle class. The academics too, will at some point loosen their church-like grip on orthodoxy and accept a leading role in promoting social justice, down in the trenches.
However, I would hate to end up like Moses, who never did reach the promised land, and spent 40 years not getting there. I do not have that kind of time. I will be quickly making new friends in the party that holds the balance of power and leveraging these connections to achieve my goal of seeing Unconditional Basic Income implemented for all, in my lifetime.
Pierre Madden
WhatsApp/Cell: +1 514 238-0044
https://www.basicincomemontreal.org/
https://www.revenudebasevilleray.com/
https://www.patreon.com/PierreMadden
by Andre Coelho | Oct 18, 2019 | News
Esther Duflo and Abhijit Banerjee. Picture credit: dailyO
Esther Duflo, Abhijit Banerjee and Michael Kremer were awarded the Economics Nobel Prize this year. That alone would not represent a huge novelty, given the standard these professionals and scholars have set in the last few years. However, in an article as far back as June 2016, Banerjee had already defended the basic income policy for India, as a way to reduce poverty, cut through corruption and minimize bureaucracy. Later on, already in 2019, Indian voters got not to elect the party (Congress Party) which was more serious about implementing (a version of) basic income in India, favoring the BJP ruling party. That, however, did not end the discussion about basic income in the Indian continent, in part because Banerjee, Duflo and other respectable scholars like Thomas Piketty, have been thinking, writing and speaking about the issue at the highest levels.
This award comes right before the release of Banerjee and Duflo new book, entitled “Good Economics for Hard Times”, a forward-looking elaboration on society, economic problems and creative social solutions. In it, basic income features as an important, if not crucial policy, for reducing poverty, simplifying governmental aid programs and increasing universality in cash transfers. In the authors’ own words:
Immigration and inequality, globalization and technological disruption, slowing growth and accelerating climate change–these are sources of great anxiety across the world, from New Delhi and Dakar to Paris and Washington, DC. The resources to address these challenges are there–what we lack are ideas that will help us jump the wall of disagreement and distrust that divides us. If we succeed, history will remember our era with gratitude; if we fail, the potential losses are incalculable.
Meanwhile, also, other heavy-weight economists like Angus Deaton, also a recent Economics Nobel Prize laureate, have come forward in defense of basic income-like type of policies.
More information at:
Abhijit V. Banerjee, “The best way to welfare”, The Indian Express, June 18th 2016
Abhijit V. Banerjee and Esther Duflo, “Excerpt: Abhijit Banerjee and Esther Duflo on Which Kind of UBI Could Work in India”, October 15th 2019
André Coelho, “India: The stars were not aligned in 2019, for basic income in the Indian continent”, Basic Income News, May 29th 2019
by Guest Contributor | Oct 5, 2019 | Opinion
Talk of a universal basic income has been in the news a lot recently, but what does it all mean? First off, it’s important to make the distinction between free money and services that comes from your taxes – the money for a universal basic income has to come from somewhere, so it’s not free money but rather a useful return for your tax payments. The idea is to level the playing field as much as possible in an effort to eliminate poverty and give families a fighting chance in a world where the cost of living has long since surpassed any positive movement in wage growth. What’s more, the idea of a universal basic income is not a new one at all.
As far back as 1516, Thomas More wrote about the idea of a basic income in Utopia. More surmised that this type of social program would prevent people from becoming desperate enough to steal to feed themselves and their families, eventually becoming swept up in a criminal life that would turn them into corpses.
Later in 1796, Thomas Paine suggested in Agrarian Justice that providing a basic monetary endowment for every adult over the age of 21 would lessen the burden of transitioning from a landed gentry economy to a more egalitarian economy.
In 1967, the Reverend Dr. Martin Luther King, Jr. proposed a universal basic income by which poverty could be eliminated, thus giving African Americans the ability to achieve their potential as well as economic stability.
Rather than making these payments in vouchers, goods, or services, the main idea is that in order to give people the most benefit in terms of freedom of choice in work, lifestyle, and education these payments would have to be made in the form of cash payments. The ultimate goal is to end poverty and lessen violence, crime, and addiction thought the elimination of hopelessness. But can it actually work?
There are several ways that have been proposed to pay for this system. A flat tax would basically take a percentage of everyone’s money and then give them back the same flat rate – a basic redistribution of wealth. A VAT, or value-added tax, would be a high tax on certain goods and services, usually those that are considered to be vices or luxuries, which would go into a fun to make these payments.
Already there are several places around the world that are testing this idea with varied results. Throughout this year in Stockton, California, 100 randomly selected people are receiving stipends, while over the last two years in The Netherlands test groups are receiving varying levels of stipends and benefits. While these programs are still ongoing, Finland found great success with its own pilot programs, including increased confidence in recipients’ financial situations, greater optimism for the future, and better health, but declined to continue the program after the test due to a lack of impact on employment.
Regardless of the inconclusiveness of these tests, a universal basic income may be the only thing that prevents mass poverty as artificial intelligence and automation take over jobs in the next industrial revolution. Jobs will be both created and eliminated, but it will take time to get the right people into the right jobs just as it was during the last major industrial revolution. While it’s not a perfect solution, a universal basic income might be the best tool we have to make the transition smoother.
Learn more about the pros and cons of universal basic income here.
Author Brian Wallace Bio: Brian Wallace is the Founder and President of NowSourcing, an industry leading infographic design agency based in Louisville, KY and Cincinnati, OH which works with companies that range from startups to Fortune 500s. Brian also runs #LinkedInLocal events nationwide, and hosts the Next Action Podcast. Brian has been named a Google Small Business Advisor for 2016-present and joined the SXSW Advisory Board in 2019.
