SWITZERLAND: Guy Standing to present on Basic Income at Davos

SWITZERLAND: Guy Standing to present on Basic Income at Davos

The 2017 Davos meeting of the World Economic Forum is to include a panel on basic income, in which BIEN’s Guy Standing will be participating.

Guy Standing (credit: Enno Schmidt)

BIEN co-founder Guy Standing (Professorial Research Associate at SOAS, University of London) has been invited to speak at the next meeting of the World Economic Forum (WEF) in Davos, Switzerland, which will take place from January 17 to 20, 2017.

The editor of The Economist will interview Standing on the precariat on January 17. Additionally, Standing will take part in a session on basic income on January 18.

By invitation only, the WEF’s annual Davos conference brings together over 2000 CEOs, political leaders, distinguished academics, and other “notables”, and has come to be regarded as one of the most elite economic and political conferences in the world.

 

World Economic Forum blog contributions

In connection with his invitation to Davos, Standing has authored an article on basic income for the WEF’s blog (“The precariat, populism and robots: is basic income a political imperative?). In it, Standing presents a series of justifications for basic income.

First, and most importantly, Standing argues that a basic income is owed to all as a matter of social justice: “Land, natural resources, and ideas that become ‘intellectual property’ are all part of society’s collective wealth, created and nurtured by generations of our ancestors. So, it is reasonable to argue that everybody should have a modest share, a social dividend, in the form of an equal, modest, individual, unconditional basic income.”

Standing contends that “all assets, including intellectual property, are resources to which all of society has legitimate claim”–recommending, for example, a “special levy on income generated by patents, copyright and other forms of intellectual property” to pay into a sovereign wealth fund.

Additionally, Standing argues that a basic income promotes individual freedom and security–noting that economic security is a requirement for rational decision-making–and removes the poverty and “precarity” traps in current welfare systems. (A precarity trap exists when a would-be worker decides not to accept short-term employment due to delays in benefits processing or other complications that encourage avoidance of temporary changes in benefits status. In this way, existing welfare systems often discourage temporary work.)

Dancing Robot at Davos 2016 (Robots for UBI)

Standing also points out that a basic income would be seen as remunerating unpaid labor–and that this, in turn, could encourage more environmentally sustainable lifestyles.

“Care work, voluntary work, community work and the ‘work’ many do in retraining are all statistically unrecognised today, but they are socially valuable, and are not resource depleting, unlike many forms of labour. A basic income would tilt the economic system towards socially and ecologically sustainable growth.”

Finally, although he seems to regard it as a comparatively weaker argument, Standing concludes by claiming that the automation argument–that is, that a basic income is necessary as insurance against a robot job takeover–“should not be dismissed”.

The precariat, populism and robots: is basic income a political imperative? (December 20) is the final article in a three-part series:

The first, “Meet the precariat, the new global class fuelling the rise of populism(November 9), describes the characteristics and structure of the precariat.

The second, “The 5 biggest lies of global capitalism (December 12), discusses “rentier capitalism” — a system in which increasing shares of wealth accrue to those who hold property from which they can extract rents — and explains how (in Standing’s view) it sits at the heart of contemporary economic inequities.


Reviewed by Genevieve Shanahan.

Davos photo CC BY 2.0 WebRatio Communications.

Brishen Rogers, “How Not to Argue for Basic Income”

Brishen Rogers, “How Not to Argue for Basic Income”

Some commentators view basic income as a one-stop solution, which is meant to eliminate the welfare state. Temple University Law Professor Brishen Rogers is one basic income proponent who’s speaking out against this trend.

Brishen Rogers (Source: Temple University)

Brishen Rogers (Source: Temple University)

Brishen Rogers, Associate Professor of Law at Temple University, is a long-time supporter of a universal basic income (UBI) to mitigate poverty and economic insecurity. At the same time, he is critical of certain pervasive “tropes” in the mainstream discussion of UBI. The latter are his focus in a recent Boston Review article (“How Not to Argue for Basic Income”), in which he criticizes discourse that portrays UBI as necessitated (only) by automation and technological unemployment, and that presents it as a replacement for all other welfare programs.

Although he praises former SEIU President Andy Stern’s “willingness to challenge labor movement orthodoxy”, Rogers challenges the presentation of UBI in Stern’s popular new book on the topic, Raising the Floor, which Rogers takes exemplify this problematic discourse:

Like many others in the future-of-work debates, he [Stern] presents UBI as an urgent policy solution to a problem—massive technological unemployment—that has not yet materialized. Also like many others, he signals a willingness to cut welfare benefits in order to get conservatives on board. These tropes of mainline debate are unfortunate. They alienate progressives who might otherwise favor a UBI and cast the policy as a one-stop solution for economic inequality, which it is not.

Opposing a UBI that replaces the social welfare state, Rogers proposes that basic income be integrated into a social democratic economy, rather than laid on top of a neoliberal one:

[T]he solution is not to buy off a hoard of displaced workers armed with pitchforks. Rather, it is to fight for a UBI while rebuilding a robustly democratic state that can enact broader progressive reforms to tax and welfare policies, subject large firms to far greater oversight, and protect workers and the unemployed in the here and now. Such reforms aren’t just good policy but also good politics, since they can help rebuild faith in the state. A standalone UBI simply cannot.

In previous academic work (“Justice at Work”), Rogers has argued that a basic income would not eliminate the need for minimum wage laws, which would continue to be necessary to promote fair and respectful treatment of workers.

References and Further Reading

Brishen Rogers, “How Not to Argue for Basic Income,” Boston Review, October 31, 2016.

Brishen Rogers, “Justice at Work: Minimum Wage Laws and Social Equality,” Texas Law Review, April 26, 2014.


Reviewed by Ali Özgür Abalı

Image: CC BY 2.0 Robert Couse-Baker

UK: Public Service Union Calls for Basic Income “Micro-Pilot”

UK: Public Service Union Calls for Basic Income “Micro-Pilot”

Photo: Results of “ball poll” at UNISON West Midlands Regional Games in Birmingham (credit: Becca Kirkpatrick).

 

The trade union UNISON has called on West Midlands mayoral candidates to commit to running a basic income pilot in the region.

UNISON, a major public service employee union, has released a 20-point manifesto, calling on candidates in the West Midlands Combined Authority (WMCA) mayoral election to declare which of the 20 “asks” they would implement if elected.

The election, which is to take place on May 4, 2017, will decide the first mayor of England’s West Midlands region. The WMCA was established to the govern the seven-authority area in June 2016.

One of the points of UNISON’s manifesto, which has been published in full on the West Midlands political blog The Chamberlain Files, is a demand for a “micro-pilot” of universal basic income (no further details of the pilot have been specified):

WMCA to run a micro-pilot on the use of a Universal Basic Income (UBI). A UBI could have many benefits including helping the long-term unemployed get back into work via part-time work and providing a basic income that would allow people to undertake entrepreneurial activities.

Unemployment is a pressing concern in the West Midlands. A new report from the Resolution Foundation, a nonpartisan think tank, reveals that WMCA has an employment rate of 64.5%, as compared to an overall employment rate of 71.6% within UK city regions other than WMCA.

The UNISON manifesto also calls for a range of improvements in education, transportation, housing and development, and government accountability in the WMCA.

UNISON has approximately 1.3 million members across the UK. It has over 120,000 members in the West Midlands, making it the largest union in the region. Members in the region comprise employees in eight main types of work: local government, health care, education services, water, energy, community, police and justice, and private contractors.

 

Sources

Kevin Johnson, “Nationalisation, seats for unions and free public transport – Unison unveils mayoral manifesto,” The Chamberlain Files, December 15, 2016.

Neil Elkes, “Call for universal basic income trail [sic] in the West Midlands,” Birmingham Mail, December 15, 2016.

Becca Kirkpatrick, personal communication.

Will basic income lower crime?

Will basic income lower crime?

This week, I had the opportunity to be a guest on New York University’s Students for Criminal Justice Reform podcast. I spoke with Thurston Powers about the positive effects a basic income may have on American society.

One overlooked potential benefit is the effect of basic income on crime rates. I noted that a basic income could create more stable households and increase the likelihood of parents spending time with their children. Unstable and low-income households are linked with creating long-term issues for children that grow up in these situations. The fact that crime could be higher due to these circumstances speaks volumes about how important it is for families to have access to an income that can help them provide for their children without them having to consistently work to keep a roof over their heads. Crime happens all the time, and the use of firms such as Salwin Law Group, as well as similar other legal representation, may be used to show evidence on how financial issues have provided this base for criminal activity, not as an excuse but as a show of how the system needs to change to help people in these situations.

Those that critically point out single mothers work slightly less under a basic income do not understand this is probably a good thing. Considering it is single mothers in the data that show reduced work hours, it is likely they are spending their extra time raising their child. In the long-run, raising a well-adjusted adult will produce social and economic dividends.

In fact, research shows that basic income experiments have resulted in increased social cohesion. Studies have shown increased school attendance after the introduction of a basic income-type grant. In Namibia, there was about a 40 percent drop in crime in areas where the basic income was introduced.

While it is highly probable the basic income would improve some of the factors that lead to crime, I said in the podcast there is virtually no chance a basic income could increase crime. Frankly, the conservative narrative surrounding welfare is just not true.

The problem is not that welfare recipients become lazy, it is that the structure of welfare can discourage work. This is because welfare benefits diminish sharply as low-income individuals improve their wages — which is precisely why a basic income is more effective.

I also noted that most research demonstrates that overall people will not work less, and in some cases may work more if it benefits them, under a basic income. For libertarians that are interested in creating an effective solution to deal with the upcoming wave of automation, a basic income is the most efficient answer.

Listen to the full podcast below:

https://www.youtube.com/watch?v=iW6KgITEdT0&feature=share

 

US: Cultural advocacy group releases platform, demands basic income

US: Cultural advocacy group releases platform, demands basic income

The U.S. Department of Arts and Culture, a non-governmental organization that promotes “programs and policies that cultivate creativity, empathy, and collaboration”, released a new platform on November 19, 2016 — aimed at protecting Americans’ right to culture under a Trump presidency.

The platform consists of 10 policy demands — from a public service jobs program to criminal justice reform to investment in arts education — including a basic income grant.

About the basic income grant, the USDAC writes (pp. 22-23):

[R]ising costs, falling spending-power, the uncertainty of the economy, macroeconomic policies that have placed corporate success above individual well-being. For artists and cultural organizers as for others, the current system mandates overproduction, often exacerbated by under-compensation. For example, existing subsid[ies] for artists operates almost exclusively on a project basis, forcing artists who apply for support to constantly seek novelty and conform to arbitrary deadlines rather than allowing work to evolve and emerge according to a more organic timetable. Competition for scarce resources is incredibly intense and hugely discouraging for those who don’t fall under currently favored criteria …

In virtually every field, decision-makers fail to prioritize necessary time for reflection, restoration, and conviviality. It’s a challenge to discern, integrate, and act on cultural development needs when competition for survival eats what could otherwise be time for creativity, connection, and pleasure. We long for a future in which overproduction and overconsumption will no longer distort our society, with a universal cultural benefit: the ability to live in balance with each other and the life of this planet.

In its abridged platform, USDAC emphasizes that similar challenges confront workers in many occupations and that the organization is not making a “special pleading for artists”.

USDAC proposes a basic income grant large enough to cover basic needs such as food, housing, and medical care, distributed in the same amount to all regardless of other income.

To fund the BIG and other reforms, the organization proposes taxes on advertising and financial transactions, as well as the sell of “social impact bonds” to private investors.

Read the full platform here: “Standing for Cultural Democracy: The USDAC’s Policy and Action Platform”   


Reviewed by Dawn Howard.

Cover photo: CC BY-SA 2.0 Edith Soto