My failure to change Canada’s basic income narrative

My failure to change Canada’s basic income narrative

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

The justification for basic income is ethical

The justification for basic income is ethical

“The justification for [basic income] is ethical, not instrumental,” states Guy Standing at the ShapingHorizons conference at Cambridge University, UK, on September 11, 2019. He goes on to assure his audience that basic income studies have revealed that it may reduce poverty and inequality, but that “the real reasons for wanting to support a basic income is a matter of common justice.” See his full speech.

For Guy Standing it is a clear case: everybody’s wealth and income are mainly due to the achievements and efforts of others, especially our ancestors. It is they who have created what we all enjoy in the form of, for example, public knowledge and social services. If we add natural resources to the list, we are looking at the three most important pillars of what people alive today have at most contributed minimally towards: the commons.

As it is common legal practice around the globe allowing “to receive something for nothing” in the case of private inheritance, Standing suggests extending this idea to the social inheritance of the commons. In contrast to private inheritance, the distribution of commonwealth should not be based on, e.g. family bounds. The entitlement to a share of public wealth should instead be based on the simple requirement to be human. However, instead of sharing our rich commons, they are “privatized and plundered […] in the name of rentier capitalism,” as Standing puts it.

In addition to stating ethical reasons for basic income, Guy Standing also took the chance to stress how the global debate about basic income has changed dramatically over the last few years. With participants from as many as 45 countries the BIEN congress 2019 in Hyderabad, India, at the end of August this year demonstrates the global significance of basic income.

Further, recent developments in the UK allow justified hope that basic income is soon to play a larger role in the political debate of a country that suffers under its austerity policies of the last decade or so.

First, the Green Party UK favors basic income while referring to it as “citizen’s income”, and second, Scotland’s SNP supports the idea of basic income in the form of a “Citizen’s basic income” and is preparing basic income pilots to be happening in the near future. Third, at the request of the Shadow Chancellor of the Exchequer, John McDonnell MP, Guy Standing has created a report to the British Labour Party detailing how UBI pilots could be implemented in the UK.

It is not only the first time that a British politician has specifically requested a report on basic income, but it is also unprecedented that the same politician has confirmed his commitment to conducting basic income pilots on the basis of such a report if his party wins the next general election.

For additional information on the ethical reasons for basic income, see Guy Standing’s most recent book “Plunder of the Commons”.

 

Hannes Mehrer
PhD student, Cambridge University

The documentary “UBI, our right to live” is now available on YouTube

The documentary “UBI, our right to live” is now available on YouTube

Credit Picture CC (Generation Grundeinkommen, Stefan Bohrer)

The film, directed by Alvaro Orùs, is now available on Pressenza’s youtube channel.

The 41 minutes long documentary focuses on Universal Basic Income (UBI), retracing its history, explaining its rationale, and investigating why and how the idea has reached a much larger audience and unprecedented support in the last years.

It does so with though many poignant interviews with prominent exponents of the UBI community, as Van Parijs, Guy Standing, Daniel Raventòs, Scott Santens and many others. “UBI, our right to live” makes a compelling argument for the necessity of the measure, is a manifesto for UBI in the present day, and is an excellent introduction to the subject.

The documentary addresses two of the main drivers that are bringing UBI at the center of the public debate: economic inequality and technological development. The two themes are correlated, as economic inequality has reached unsustainable levels, and automation may make it even worse, if not handled in the proper way. The risk is the increase of unemployment and growing inequalities between high and low skilled workers.

UBI could eradicate poverty altogether, and if it were to be financed through progressive taxation, reduce inequalities. Moreover, it would provide an economic safety net for workers, and thus endorse them with more bargaining power when it comes to choose a job. People could decide how to focus productively their energies in order to contribute to society and give meaning to their live, rather than being forced in unfulfilling jobs just to survive. Nobody would be left alone, as it is bound to happen under the patchwork that present-day welfare is.

The fruits of technological advancement, if distributed via a UBI, rather than accumulated in the hands of the few, may help to shape a more just future, as this is what UBI is about (something that the documentary highlights): UBI is about justice and fairness, not charity.

It’s the instrument meant to redistribute what belongs to each and every person, the natural extensions of human rights in ensuring to everybody a standard of living adequate for a human being.

 

More information at:

“The documentary, ‘UBI, our right to live’, now available online”, Pressenza, 15 August, 2019.

Is It Time To Talk About Universal Basic Income?

Is It Time To Talk About Universal Basic Income?

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.

Basic Income March Expands to 10 Cities worldwide

The latest news from the organizers of the Basic Income March is that it has spread to 10 more cities, which will all have marches on October 26, 2019. In the organizers’ words:

Largest Ever March for Universal Basic Income Set for October 26 in New York City

  • The Basic Income March is inviting New Yorkers and supporters of a Universal Basic Income to join them on Oct. 26 as they March from Harlem to the South Bronx to demand economic justice for the millions of people left behind in the current economy.
  • What started as a single march in NYC has grown into a global movement, with events planned in more than 10 additional cities, including: San Francisco, Berlin, Amsterdam, Kumbungu, Seoul, Toronto, Chicago, Salt Lake City, Honolulu, and Orlando.

 

NEW YORK CITY, New York. Oct. 2, 2019. Income Movement today announced that they have organized a historic march for universal basic income (UBI) in New York City, set for October 26, 2019. The Basic Income March is a people-powered movement sending the message that it is critical for the economy to evolve to meet the challenges of the 21st century.​ ​In New York, leaders from Labor and UBI organizations, US Congressional Candidates, the Andrew Yang 2020 Presidential Campaign, and Black Lives Matter, among others, will march and speak.

 

 

“The March of the Robots has to be countered by the March for Humanity. All of us have to participate in a national conversation about Universal Basic Income because all of us will be affected by the forthcoming drastic changes in the world of work.”​ – G​isèle Huff​, president of the Gerald Huff Fund For Humanity.

 

BASIC INCOME MARCH
1:00 PM | October 26th 2019
Starting Location: Convent Baptist Church, ​420 W 145th St, New York, NY End Point and Rally: Roberto Clemente Plaza, ​The Bronx, NY

Basic Income March Speakers at Convent Baptist Church:

  • Hawk Newsome, Chairman of Black Lives Matter, NY
  • Karl Widerquist: Political Philosopher and Economist, Georgetown University – Qatar
  • Member of presidential candidate Andrew Yang’s campaign

Basic Income March Speakers at Rally at Roberto Clemente Plaza:

  • James Felton Keith, candidate for US Congress in NY13
  • Andy Stern, ​President Emeritus SEIU and author of Raising the Floor
  • Chivona Renee Newsome, candidate for US Congress in NY15
  • Scott Santens, Thought Leader, Author, UBI Advocate

     

CONTACT

Organization: Income Movement Communications Strategist: Dylan Enright Phone: +1 917.536.6780
Email: ​dylan@incomemovement.com www.basicincomemarch.com