The Essential Reason I Support UBI

AUTHOR’S NOTE: This article is a draft of the first chapter of the book I’m working on: Universal Basic Income: Essential Knowledge. It can also be thought of as a reply to Bitch Bastardly’s guest article from last week. Comments welcome: Karl@widerquist.com.

            Every minute of every day, you use something you don’t own to meet your needs without asking anyone’s permission and without paying anyone for the privilege. You do this every time you take a breath. You can’t do that without an atmosphere. You don’t own the atmosphere, but you’ve never had to get a job to earn the money to buy the right to use the atmosphere to keep yourself alive. You simply used it as if the free use of a common resource was the most natural thing in the world.

Karl Widerquist
Karl Widerquist

            I bet you’d be pretty angry if the government made a new rule dividing atmosphere into private property without giving you a share large enough to meet your needs. I don’ think it would make you feel better if they gave you the opportunity to get a job to earn the money to buy the right to breathe in your area, and thereby keep yourself alive. I think you’d recognize that if you had that much need for a job, you’d be willing to accept very low wages. I don’t think it would make you feel much better if lifetime subscriptions to breathe were affordable, and if, after working for years, saving your money, investing it wisely, you have the chance to become one of the small portion of people who own piece of the atmosphere before retirement age or the even smaller portion of people who own enough of the atmosphere that other people will pay them to breathe.

            If the government tried to privatize the atmosphere, I think you’d say something like this. My ancestors and I have used the atmosphere freely for millions of years. We’re evolved to depend on it. If you take away our independent access to it, you make us dependent on whatever group of people owns it. If there’s some benefit in dividing the atmosphere into private property, either everyone should get a share, or those who don’t get shares should be compensated unconditionally for their loss with an income, and that compensation should be at least large enough to buy a lifetime subscription to the right to breathe.

            If you’d be that angry about needing some else’s permission to use the atmosphere to meet your need to breathe, why aren’t you angry that you need some else’s permission to use all the other resources you need to meet all your other needs?

            I think you should be. Our ancestors used the land and other resources of the Earth freely for millions of years, just as you and I use the atmosphere now. Every one of us is evolved to depend on it. No group of people “naturally” owns it. A few generations ago, governments took away the independent access our ancestors enjoyed. They created a system in which the resources we all need are owned by a few without giving the rest of us any compensation. By doing that, they made us dependent on the people who own the Earth’s resources.

            The vast majority of us who don’t own a large enough share of natural resources or of the stuff we make out of natural resources to keep ourselves alive and thriving. The vast majority of us aren’t allowed to use any resources but air without the permission of an owner. We can’t build a shelter, hunt, gather, fish, farm, start a cooperative, or start our own business. Except for the wealthy few, we get a job to earn the money to buy the right to do use the resources that were here before anyone and that we’re all evolved to depend on. Wages are such that, only the lucky few get to the point where we’re free to do something other than paid labor before we’re too told to work anyway.

            The division of the Earth’s resource into private and public property has many benefits, but if some people get a share and others don’t, the private property system has many cruel side effects, among them poverty, homelessness, alienation, fear, and hopelessness. Because most of us have no alternative to paid labor, we are all willing to accept lower wages, longer work hours, and less appealing working conditions than we otherwise would. In some situations, people are forced to accept dangerous jobs, sexual harassment, and other forms of abuse from employers or spouses, because they need the job or a spouse with money to keep them alive. That need is artificial, created by the way our governments chose to divide the Earth’s resources.

            Let’s consider a way to divide resources that isn’t so cruel.

            Back in 1918, Bertrand Russell’s suggested “that a certain small income, sufficient for necessaries, should be secured to all, whether they work or not, and that a larger income … should be given to those who are willing to engage in some work which the community recognizes as useful. On this basis we may build further.”

            Russell’s proposal is very much what we know today as Universal Basic Income (UBI). Later chapters define it in more detail, but his description gives you a very good idea what it is. UBI is not all there is to social justice, but it removes an exceedingly cruel feature built into our economic system. If we’re going to divide the resource of the Earth unequally, those who own more of the wealth we make out of resources have the responsibility to pay those who have to do with less access to resources.

            Although there are many reasons to introduce UBI, I started with this one, not only because I think it’s one of the most important, but also because I think it brings up the central decision that people have to make if we’re going to introduce UBI. Should everyone get an income—even the people who could take jobs but chose not to? I think that question already divides most readers into two groups with pretty firm positions: Yes, because no one should live in poverty or homelessness. No, because every nonwealthy person who can work must work.

            UBI, on its own, is a mild reform with far-reaching effects. Later chapters show that it isn’t terribly expensive. On its own, UBI creates a market economy where income doesn’t start at zero. People who don’t take jobs, get less than those who take jobs, but no one has to go without the money they need for food, shelter, or clothing in the same way that no one today has to go without the money they need to breathe.

            By offering good salaries and good working conditions, we have enormous ability to give people an incentive to engage in work that the community recognizes as useful. And if we’re not willing to pay enough to get people to freely choose do some particular job, maybe that job doesn’t need to be done all. If we do it this way, we end poverty and homelessness. We end the cruel treatment people at the bottom and relieve the fear of the people in the middle. We invite everyone—rather than frighten everyone—into participating in our economic system. That mild and humane reform finds resistance from the belief that everyone—or more realistically, everyone who isn’t wealthy—must work, and so the issue of whether everyone including those who refuse to take jobs should get the income comes up again and again throughout this book.

            The idea of UBI has inspired a growing worldwide movement. Although the concept of a UBI goes back at least as far as the 1790s, the movement for it is stronger as I write these words than it has ever been. The movement grows out of frustration with the ineffectiveness and political vulnerability of conventional approaches to poverty and inequality. The market system also needs many other reforms, but millions of people are coming to believe that one of the most important and fundamental reforms we need right now is UBI.

            The central goal of this book is to explain the essentials of UBI: what it is, how it works, the most popular arguments for and against it, how much it costs, how it can be financed, its likely effects, its history, and its possible future. But as I’m sure you’ve already guessed, I am a strong supporter of UBI. And so, this book’s secondary goal is to convince readers that UBI is a good, workable idea that should be enacted all around the world, but I will make this argument in a way that explains and addresses both sides of the debate over whether to introduce UBI. Whether you agree with my position on UBI or not, I think you can learn more from a passionate attempt to argue points for it and refute points against it than from a dispassionate list of points on either side.

            With this in mind, the book begins with a more thorough explanation of what UBI is.

-Karl Widerquist, begun sometime ago, but completed in Aspen, Colorado, July 29, 2021

BIRAL Seminar: International Perspectives in Basic Income Messaging

BIRAL Seminar: International Perspectives in Basic Income Messaging

Please join us for the second BIRAL seminar: “International Perspectives in Basic Income Messaging,” hosted by the Jain Family Institute (JFI) on the 14th of June, 2021 at 12PM EST – New York, 1PM São Paulo, 5PM London, 6PM Berlin. A recording of this seminar is now available on YouTube.

The event features guaranteed income researchers and advocates from around the world to discuss lessons in messaging and framing to build support for guaranteed income or UBI in varying political and cultural contexts. Speakers include Anne Price, President of the Insight Center for Community Economic Development; Barb Jacobson, Co-ordinator of Basic Income UK; Tatiana Roque, Professor at UFRJ and Brazilian Basic Income Network member; and Catherine Thomas, Stanford University PhD Candidate and Interdisciplinary Graduate Fellow. They will be joined by experts from across the globe. 

The event is part of the Basic Income Earth Network’s new BIRAL series, a collaboration between the Basic Income Earth Network, FRIBIS (Freiburg Institute for Basic Income Studies), Gyeonggi Research Institute Basic Income Research Group, and the Jain Family Institute.

Register here: https://us02web.zoom.us/meeting/register/tZYtfu6prDkqE9JpzhjToyUBdJUeeNAhclfr

After registering, you will receive a confirmation email containing information about joining the meeting. We welcome you to have your camera on as we hope to allow for discussion across many guaranteed income advocates and researchers in attendance. 

About the speakers:


Barb Jacobson

Barb Jacobson has experience on both sides of the welfare system, as a claimant and advisor, as well as working in a variety of other jobs. She has organised around women’s, health, welfare, and housing issues for over 30 years. Barb is Co-ordinator of Basic Income UK, and was the founding Chair of UBIE (Unconditional Basic Income Europe) from 2014 to 2017.

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Tatiana Roque 

Tatiana Roque is a Professor of Mathematics at the Federal University of Rio de Janeiro and a member of the Brazilian Basic Income Network. Her work examines traditional political movements and the ways in which new mobilization strategies may be employed at universities, unions, and wider political movements. She will speak about the movement for basic income in Brazil, and particularly surrounding the Maricá Basic Income.

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Anne Price

Anne Price is the President of the Insight Center for Community Economic Development. The Insight Center is a U.S. racial and economic justice organization working to ensure that all people become and remain economically secure. She also serves as a Fellow at the Roosevelt Institute, and was one of the first US thought leaders to examine and push for narrative change in addressing racial wealth inequality.

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Catherine Thomas

Catherine Thomas is a Ph.D. candidate in social psychology and an Interdisciplinary Graduate Fellow at Stanford University. Her research examines the integration of economic and social inclusion within cash-based policies, and in particular with regard to public opinion on cash policy in the U.S. as well as perspectives of cash-transfer recipients using varying narrative frames. Her research on cash-based policies includes work in East and West Africa with the nonprofit GiveDirectly, the World Bank, and the Government of Niger. She co-authored Stanford Basic Income Lab’s guide for cities conducting basic income pilots. 

Basic Income trial confirmed in Wales

Mark Drakeford, Wales’ new First Minister, announced soon after the Senedd elections in May that the government will launch a basic income trial in the country. As Basic Income News mentioned over a month ago, the support for trialing basic income in the country has greatly increased and Drakeford has confirmed that a pilot will be launched soon.

Jane Hutt, recently appointed as Minister for Social Justice, will be in charge of the supervision of the project. There is still no definitive information regarding the funding and date of implementation of the pilot, but the government’s commitment is firm. “A basic income pilot is one of the specific responsibilities of our new social justice minister. It will have to be carefully designed, it will draw on the experience of attempted pilots in Scotland, but I have a very long standing interest in basic income”, Drakeford said. “We’ll do it on a cross-party basis. There are 25 members of the Senedd in different parties who have expressed an interest in it,” he added.

The Future Generations Commissioner for Wales, Sophie Howes, said that the launching of the pilot shows an “incredibly significant commitment by the First Minister to tackling Wales’ poverty and health inequalities,” and that this trial shows that small countries can lead big policy changes.

Jonathan Rhys Williams, from UBI Lab Wales, said that “this is a huge moment for the basic income movement in the UK and around the world.”

Sources:
Wales to launch pilot universal basic income scheme. Steven Morris (The Guardian), 14 May 2021
Incredibly significant’: First minister commits to basic income pilot in Wales. Nation Cymru, 14 May 2021

King’s College Workshop explored “The Ethics of Basic Income in a Changing Economy”

YouTube player

On 23 April 2021, Diana Popescu, Otto Lehto, and Emil Panzaru from Department of Political Economy, King’s College London – organized a full-day online academic workshop called “The Ethics of UBI in a Changing Economy” that tackles the normative justifications and practical feasibility of UBI.

The program and rough times:
00:00:00 Otto Lehto Opening words
00:08:45 Guy Standing (SOAS) Battling Eight Giants
00:56:10 Christian Schemmel (University of Manchester) Just Workplaces: Asset equality vs workplace democracy?
01:32:46 – Martin Sticker (Bristol) Is a merely national “Universal” Basic Income just?
02:05:34 – Otto Lehto (King’s College London) UBI as a Discovery Procedure
02:41:23 – Deryn Thomas (St Andrew’s) Basic Income and the Collective Good of Work
03:18:47 – Nika Soon-Shiong (Oxford) Cash, Citizenship, and the Contemporary Politics of Belonging in India 03:44:48 – Jim Pugh (Universal Income Project) and Jamie Morgan (Brandeis) Accelerating Equity and Justice: Cash transfers and generational wealth
04:17:30 – Diana Popescu (KCL) How much Dignity is enough: Appearing in public without shame and UBI 05:07:30 – Bernhard Neumärker (Freiburg) UBI in Times of Crisis (Note: Due to technical difficulties, Prof. Neumärker’s presentation is missing the first few minutes. The presentation finishes in Part 2.)

Korea: Sea Cucumber Fisheries as Shared Property of Islanders – “rediscovering rural basic income experiments”

Korea: Sea Cucumber Fisheries as Shared Property of Islanders – “rediscovering rural basic income experiments”

Editor’s note: The use of the term ‘basic income’ for the sheme in Janggo Island does not correspond to BIEN’s definition of basic income, since it is paid not to all residents but to only participants in communal fish farming activities for 20 years, and paid not to individual but to household.

A forum took place on the meaning and issues of the basic rural income social experiment, which Gyeonggi Province plans to conduct in the second half of this year. Entitled, “The Meaning and Issues of the Community-centered Basic Income Social Experiment,” the first Rural Basic Income Policy Forum was held on the 29th of January and introduced cases and discussed India’s basic income experiment, distribution of shared assets in Boryeong, Chungcheongnam-do, and Jeju Island. The Hankyoreh Economic and Social Research Institute with the Gyeonggi-do Agricultural and Fisheries Promotion Agency, the Basic Income Korea Network, Lab 2050, the Korea University Institute of Government Studies, and the Korea Regional Development Foundation all participated in organizing the January event. Some of the presenters and debaters participated online.

Lessons from the Indian basic income experiment

Sarath Davala, the keynote speaker, is the architect of India’s basic income social experiment and chairman of the Basic Income District Network, which leads the discussion on basic income worldwide. He laid out the implications of basic income experiments conducted in India and Namibia.

Namibia and India conducted basic income experiments—in 2008 and 2011, respectively—during which Namibia paid USD 12 and India USD 4 per month to 2,000 people for a span of 12 months. “Contrary to many people’s expectations, people who received basic income did not become lazy. Start-ups and economic activity increased, new transportation facilities were opened, school attendance rates rose, household debt decreased, and other good things occurred. In Namibia, the consumption of alcohol remained unchanged,” Dr. Davala explained.

Dr. Davala also introduced changes in policies following basic income social experiments. “After the social experiment, the local government in India began providing cash allowances to all farmers proportional to their farmland area in 2018, and through this policy, the party won three-quarters of the local council. […] However, the program excluded sharecroppers and non-farmers and allowances were paid only to owners of land in rural areas, and basic income discussions focused mainly on ‘the excluded.’ […] The implications of the Indian outcomes on other basic income experiments is that one needs to follow the principle of individuality and avoid excluding anyone in the region.”

Dr. Davala emphasized the role of social experimentation in promoting social dialogue beyond the collection of evidence. “In the past, we did not conduct small-scale social experiments in advance before abolishing slavery or winning women’s suffrage. These policies were based on values, philosophy, and human rights. Obviously, the policy effect rationale is important, but the policy is not implemented only with evidence. In India, political movements took place after social experiments, and there was a close review and public discussion of what was better,” he said. Another aspect of the social experiment he emphasizes is that it triggered dialogue between the public and the media, experts, and political parties to discuss desirable alternatives. “In Korea, there have been experiments with things such as youth dividends in Seongnam City, a basic income for young people in Gyeonggi Province, and national disaster support funds amid the Corona crisis, which has attracted the attention of politicians and the public.”

Sea cucumber seeds become basic income for islanders

The forum also presented a case where a local community shares the profits generated from a shared asset. Kang Je-yoon, head of the Island Research Institute, explained how Janggo Island allocates the profits from collected seafood to the islanders. Janggo is a small island with 81 households and 200 residents and began allocating profits from sea cucumber farming grounds in 1993. In 2019, 11 million won (around USD 10,000) was paid annually to each household in basic income. Kang said, “Unlike other fisheries, sea cucumbers grow on their own when the residents sow seeds. There is nothing residents have to do with them until they are ready for harvesting. Residents of Janggo Island receive a basic income from sea cucumber farming, which requires minimal labor, and the same amount is allocated as labor income from collecting clams ten times over two months. “Since the village community provides a basic income and labor income together worth 20 million won per year (USD 19,000), Janggo Island residents earn equal and stable income, unlike residents of other islands, where large income gaps exist between those in the aquaculture industry and those who are not.

However, Janggo Island also went through a slow and painful process before residents received a consistent dividend. Initially, the fishing village fraternity rented out fishing grounds around Janggo Island to fish farmers, who paid rent to the village society. Director Kang said, “It is illegal to rent out fishing grounds, which no one owns, and beside that, the rent was 500,000 won a year, which was an absurdly low price for 1983. In 1983, the village’s newly appointed head persuaded residents to reclaim the fishing grounds, after which they managed the profits from the fishing grounds (now village property) for ten years, and gave out loans. After much controversy, the dividend first began in 1993, and residents’ complaints about fishing grounds profits subsided, and the community’s common interest in the fishing grounds increased the quality of management.” A fair distribution system supported the management of shared assets.

Kim Ja-kyung, an academic research professor at Jeju National University, who presented on the possibility of basic income through shared assets on Jeju Island, said, “Jeju Island has a tradition of distributing profits through communal operation of pastureland and fisheries. For example, one village harvests seaweed fusiforme and agar together and distributes them among the participants while allowing individuals to keep the collected seaweed for themselves. One hundred and one fishing village fraternities had their own unique customs and order.”

Recently, wind and wind power generation has been drawing greater attention as a new shared asset on Jeju. Professor Kim gave a wind farm in Haengwon-ri, Gujwa-eup, eastern Jeju Island as an example. “Six villages in Haengwon-ri receive part of their wind power generation profits and set aside the funds. […] There is always a possibility of conflict and disagreement in the village, which prevents certain people from arbitrarily exercising their decision-making authority.” There is still work left to be done to develop a system to distribute the new shared asset profits fairly.

Consideration of the impact of distribution system on residents

Lee Chang-han, director of the Korea Regional Development Foundation, which designed the basic income social experiment in rural areas in Gyeonggi Province, said the experiment’s primary purpose is to closely examine the impact of basic income on the local community. “Because of the name “basic rural income,” many people are confused whether it only benefits farmers. However, farmers in rural areas in Gyeonggi-do Province make up only about 16% of the total population. It is crucial how farmers and non-farmers interact in the same living space in these rural areas. Like Janggo Island, we will observe the impact of the distribution system on resident communities.”

Park Kyung-chul, a researcher at Chungnam Research Institute, said, “Since 2019, various local governments have introduced farmers’ allowances, and there has been a discussion on farmers’ basic income. […] However, since non-farmers are also, directly and indirectly, involved in agricultural activities in rural areas, and together they form local communities, expanding the scope of payments to all rural residents is the concept behind basic income.”

Lee Ji-eun, CEO of the Basic Income New Research Network, said, “The basic income social experiment in rural areas can be reevaluated in terms of climate justice.” She added, “We hope this experiment will lead to discussions on rediscovering ‘the commons’ (shared assets), discovering small sustainable economic models and revitalizing ecological feminism, reflecting the peculiarity of rural areas.”

Lee Won-jae, CEO of Lab2050, who headed the debate, said, “I think the basic income social experiment in Gyeonggi Province has a unique status, as does the basic income experiment in Finland…where the prime minister in power conducted a policy experiment. In Korea, the experiment is taking place when basic income is becoming a central political topic.” This means that it is an environment in which the country’s overall policy will follow the results of the social experiment.

For more information, check out Gyeonggi Rural Basic Income Social Experiment’s blog page: https://gg-rbip.medium.com/

Written by Yoon Hyeong-joong, visiting fellow at the Hankyoreh Economy and Society Research Institute, philyoon23@gmail.com
Translated by Eunjae Shin, researcher at the Hankyoreh Economy and Society Research Institute, eunjae.shin@hani.co.kr Reviewed by Toru Yamamori, Academic Research Editor of BIEN

Photo: Credit: Janggo Island, South Korea, is experimenting on sharing dividends from sea cucumber farming grounds with its residents. Provided by Kang Je-yoon.