Elizabeth Anderson, “Common Property: How Social Insurance Became Confused with Socialism”

Elizabeth Anderson, “Common Property: How Social Insurance Became Confused with Socialism”

Philosopher Elizabeth Anderson has written an article in Boston Review in which she analyzes and reviews the political and economic theories of Thomas Paine, Friedrich Hayek, and others.

Anderson identifies the roots of modern systems of social insurance in Paine’s Agrarian Justice. She traces the history of the idea and its implementation through the late 1800s — when German Chancellor Otto von Bismarck instituted the world’s first social insurance scheme — and on to the present. In the latter half of the article, she critiques Hayek’s opposition to social insurance programs such as Bismarck’s pension system. Whilst people are fine with people getting insurance from Covered.com.au or other sites, there can be confusion about this part of the social system. Anderson connects modern right-wing opposition to the welfare state with Hayek’s criticisms of social insurance, criticisms which she argues to be unwarranted.

The article is not presented as an argument for basic income, but as a general defense of social welfare schemes — especially those that protect the middle classes. Indeed, Anderson herself clearly favors Bismarck-type schemes, in which “pension and disability benefits were graded according to each payer’s contributions” over Paine’s (and Hayek’s) idea of distributing equal benefits to all. She only mentions basic income “by name” when describing right-wing proposals, such as that of Charles Murray. She rejects these right-leaning basic income proposals — which would do away with all other benefits and keep individual subsidies below the poverty line — as insufficiently generous and detrimental to the middle class.

Although she seldom discussing basic income directly, Anderson situates some of the idea’s most important predecessors in their historical and political contexts. Paine’s Agrarian Justice and Hayek’s The Road to Serfdom are both canonical works in the history of the basic income movement. However, Paine and Hayek endorse very different types of basic income policies, for different reasons and as responses to different political currents — which Anderson’s article does much to illuminate.

Elizabeth Anderson is the John Dewey Distinguished University Professor of Philosophy and Women’s Studies at the University of Michigan (or, as we say here in Columbus, “the school up north”). Her areas of research in democratic theory, equality, racial integration, the ethics of markets, rational choice theories, and the political philosophy of John Stuart Mill and John Dewey. Her current work focuses on the history of egalitarianism.

Read the full article here:

Elizabeth Anderson, “Common Property: How Social Insurance Became Confused with Socialism,” Boston Review; July 25, 2016.


Photo: Statue of Otto von Bismarck, via Bernt Rostad

Finland: Governmental announcement for the basic income experiment: the ministry’s comments, experts’ concerns

Liisa Siika-aho (provided by herself)

Liisa Siika-aho (provided by herself)

As we’ve already reported here, Finland’s Ministry of Social Affairs and Health has announced their most recent move in a plan to launch a basic income experiment. On 25th August the Ministry canvassed for the Finnish public’s opinion on a bill regarding a basic income experiment. Here is a follow up with the Ministry’s comments and experts’ responses.

Liisa Siika-aho, director, Ministry of Social Affairs and Health responded to BIEN on 26th August as follows:

Q: What is the basic income experiment and what is its aim?

A: The basic income experiment is included in Prime Minister Juha Sipilä’s Government Programme. The experiment is one of the activities aiming to reform social security so that it better encourages participation and employment.

 

Q: Why is the basic income experiment carried out?

A: The objective of the legislative proposal is to carry out a basic income experiment in order to assess whether basic income can be used to reform social security, specifically to reduce incentive traps relating to working.

 

Q: How are the participants selected?

A: Persons receiving Kela’s unemployment-related benefits, under certain limitations, would be included in the experiment. From the target group, a test group of 2 000 persons would be selected by means of random sampling.

Q: Is it mandatory to participate in the experiment?

A: Participation in the experiment would be mandatory for those selected.

Q: When will the experiment start?

A: It is suggested in the legislative proposal that a basic income experiment will be carried out in 2017–2018.

Q: What would be the level of basic income in the experiment?

A: The level of basic income would be EUR 560 per month. Basic income would be tax free for the receivers.

Q: How is the experiment financed?

A: A total of EUR 20 million has been reserved in the budget for the basic income experiment.

In addition to this, the benefits that Kela is paying at the moment would be used as an addition for those persons who are receiving basic security benefits at the beginning of the experiment.

Q: Who is responsible for carrying out the experiment?

A: The Social Insurance Institution of Finland (Kela) would be responsible for carrying out the experiment.

 

Finland has a long history of advocating UBI (for a brief summery, see here). Here are those advocates’ Comments.

Jan Otto Andersson with an article in the Helsingin Sanomat

Jan Otto Andersson with an article in the Helsingin Sanomat (taken by Toru Yamamori)

Jan Otto Andersson, Emeritus associate professor at Åbo Akademi, has been advocating UBI since around 1980 and is a founding member of the BIEN (European Network at that time). On 26th August, he had this to say:

It is not a test for what  a basic income for all in the society would mean, but for just to see how it affects those who have been unemployed. …. So it is limited but interesting. It will improve the discussion which has been here for a long time….It [my feeling on the experiment] is positive because this makes the idea more well known.

 

Osmo Soininvaara, a former minister of Social Services with the Finish Green League and another long term advocate of UBI in Finland, posted a harsh criticism on his blog on 26th August, where he calls the experiment as ‘such a stupid model’. His reasons were as follows:

 

            ……

In a proper BI model, the received basic income does not, indeed, get smaller when your income level rises, but taxation starts from the very first euro earned. That’s why a proper basic income does not bring net income gains to people in mid-income jobs.

In this experiment taxation is left untouched. If you get into a 4000 euro per month job, you will earn 560 euros more than the person doing the exact same job next to you. We cannot afford to increase the income level of every job earner by 560 euros per month.

In this regard, the model is guilty of the accusations levelled against BI by those people who do not understand who basic income is supposed to work.

…..

(translated by Otto Lehto)

 

Otto Lehto, the former president of the BIEN Finland, gave us his comments, which seems to have a more nuanced tone:

 

Feelings, as an individual and academic, formerly of BIEN Finland, can be summed up as follows: The research parameters are about exactly the sort of compromise that one would expect to emerge as a result of the recommendations of an expert coalition commissioned by a wide-ranging coalition government spurred to action by a vague and compelling sense that something needs to be done, but equally held back by the realization that many toes will inevitably be stepped on, and many special interests will need to be reconciled, before anything can be done. Change breeds fear, and fear breeds paralysis. To allay skepticism, the parameters are designed to be the least offensive to, and the smallest possible departure from, the established norms and expectations of the Finnish workfare/welfare-state. In particular, excluding young people and students is, in my opinion, a moralistic choice of little merit and little justification, but it makes sense as a compromise within the status quo, and as a precaution against the critics of “free money to lazy students.”

The budgetary constraints and time constraints are beyond Kela’s control, so the main fault lies within the government. They also set the original goals and parameters within which the labour market participation focus has been raised as the main criteria, with the predictable result that human right, liberty. equality and other considerations of social justice bent have been largely set aside, to the chagrin of many (myself included). This. however, is the state of things, and can only be changed in the next general election of 2019.

2000 participants is a small sample, but if the budget does not change, this cannot be helped. Limiting the sample to people on the government unemployment benefits makes nominal sense as a result of the government’s single minded focus. But it skews the experiment by excluding a number of potential beneficiary groups, including people on low-paying jobs, students, the self-employed, etc. This does not even make sense from the government’s own (limited) perspective, since labour market participation is a more complex notion than the old-fashioned distinction, reflected in the official unemployment statistics, between people who are “in” and “out of” work.

The taxation aspect is another potential disaster. If taxation cannot be changed to reflect the new benefit structure, this will inevitably make SOME recipients of basic income better off than their peers, while some of them will be worse off than their peers. Such a model, with its creation of a massive budget-deficit, cannot be generalized for the whole national economy, as Osmo Soininvaara, the father of the Greens’ basic income model, has written in his recent blog, very critical of the government’s/Kela’s proposal.

I am very skeptical this experiment will produce any really interesting scientific results, but it serves the function of satisfying the nominal requirements of the government’s plan, and the pressures from the various interest groups. It does not appear too radical, too left-wing, nor too right-wing. It might serve a useful purpose in propelling the basic income discussion forward. At the same time, many instances will probably try and use to it squelch any further discussion, too.

Beyond my own views, I will now say something about how this proposal has been received more generally. The overwhelming consensus among my own group of friends, representing multiple parties, left-wing and right-wing, those opposed to basic income as well as those in favour, is that the experiment seems disappointing in many respects, and perhaps even doomed to fail. (Some will conspiratorially add: consciously?) Many people, including opponents and skeptics, would like a more thorough, larger-scale and better designed experiment. The lukewarm success, bordering on failure, of the experiment, before it has even gotten off the ground, is a good indication of the difficulty of institutional change in our country. Good ideas become OK ideas, bad ideas become OK ideas, until we are left with nothing but OK ideas. So, yes, this experiment seems… OK.

Reviewed by Cameron McLeod.

Green Technology: Another reason we need basic income

Green Technology: Another reason we need basic income

Safety is a crucial issue. Without a sense of security, we don’t think straight, we don’t connect as well, and we don’t align as well with our core values. If we are not secure, we don’t feel safe, and if we don’t feel safe, fear grows from within. And with that fear comes distrust, anxiety and stress. And all of those blur clear-sighted decisions.

Ultimately, there is no denying that security is a hot topic at the moment. With crime levels rising on a daily basis, there is a general sense of unease within society. That being said, it is important to remember that there are plenty of actions that you can take to improve your sense of security.

For example, if you are a home or business owner, then installing a security system is strongly recommended. Hidden cameras and alarms are both fantastic crime deterrents and can help you to feel safer in your home or at work. Above all, everyone deserves to feel in control, and security systems can provide peace of mind during times of crisis. To learn more about some of the most popular home security options out there, take a look at the Verisure website.

Anyway, within this short essay I aim to provide support for the following proposition: given a minimum level of safety, people will make better decisions. In particular, they will invest more in green technology for their businesses and homes, which is unaffordable to many at the moment.

Before going into any details, though, we should ask this question: what is it that people want, anyway? Do they want more holidays? iPhones? Well-paying jobs? Less crime? Better security? As it seems, at a deeper level, what they want most is none of that.

According to an international questionnaire, created and administered by the association Together, people want the following:

Economy

Guarantee of purchasing power and financial safety for all

Redistribution of wealth for greater equality

Promotion of exchanges and circulation of means without money

The end of rampant consumerism, especially when producers are suffering from underpaid work

The development of a deconcentrated and stable economic system

Use of technology for the well-being and comfort of all

Governance

Zero poverty, zero exclusion, and zero carbon

Affirmation and implementation of the principles of co-responsibility

Empowerment of all and development a relationship of trust, freedom, and equality, to remove laws, regulations and cameras that focus on the control of people

Encouraging and teaching co-responsibility

Supporting all people’s engagement in society, regardless of role

Democracy

Giving participatory and direct democracy a holistic place

Improving representative democracy and abolishing dictatorship

Bringing elected representatives closer to citizens

Developing an ethics of democracy

Learning co-construction of policy by involving different actors including crossing perspective, skills and abilities

Empowerment of policy makers, making sure that they keep the promises that they have made

Transparency in actions of the government

Firmness and impartiality in justice

Simplification of the administration and legislation, and improved logistical organization

Policies to support the population, particularly for providing access to essential needs; an enhanced social state.

The end of media trash-talk that enhances racism and insecurity

Environment

Changing our relationship with nature, plants and animals

Reducing population pressure

Ensuring a rapid energy transition. Using the information provided by a service like Builder And Engineer to help people make changes in their home to waste less energy such as opting for a newer, more efficient boiler.

Fight against waste

Fight against pollution

Production that is more natural and small-scale

Cleanliness in public places, thanks to co-responsibility

Space management

Maintaining and protecting biodiversity

Preserving and developing agricultural and food-production areas such as family or community gardens

Arranging space to make it user-friendly and to facilitate common life, multiculturalism, creativity and new ideas

Adapting public roads for all while reducing traffic and enhancing transportation safety

Making the city a pleasant common good

Time management

Increasing the time available to people and improving management of time

Increasing time available for the family

Promoting volunteering by enabling candidates to get community service and recognizing volunteer spaces

Society

Enhancement of opportunities to live together and learn about others

Eliminating and prohibiting all forms of discrimination and racism in all areas, including employment

Avoidance of all forms of violence, harassment and war, plus eradicate those related to physical integrity

Facilitate networking and communication of the organisations and individuals

Maintenance of ethical and respectful behaviour for the sake of democratic functioning

Changing behaviour to encourage living together and respecting each other

Development of a common culture, whatever our religion

Solidarity with excluded and/or vulnerable people so that all are made to feel accepted

Reception of migrants and refugees as well as the homeless

More care for the poor by taking an upstream strategy to combat poverty

More aid for the disabled, including children and those who are alone and poor

These results are derived from the application of a specific methodology, the Spiral Approach, which has been applied in over 20 countries, involving around 120,000 people1. While this might be a small sample of all humanity, it is big enough to be taken very seriously. If these results mean anything, I assume, it’s that people would prefer to invest more in technologies that would lower their environmental footprint on this planet–if only they could afford it. And affordability has indeed been a major issue in contemporary Portugal. As we can observe in Figure 1, people have been losing purchasing power consistently over the past few years, except for a tiny percentage of people. At the same time, as expected, inequality has also risen (Figure 2).

8.16 figure 1

Figure 1 – Personal income savings in Portugal, percent of GDP

Figure 2 – Income inequality in Portugal (quotient between the 20 percent richest and 20 percent poorest average income)

Figure 2 – Income inequality in Portugal (quotient between the 20 percent richest and 20 percent poorest average income)

This is, of course, also mirrored in the growing number of poor people living in Portugal (Figure 3). These people might get free lunches (yes, these apparently do exist) if they prove their poverty – that’s how it goes these days – but, needless to say, it’s much harder to get a solar panel or an electrical vehicle, for example, just for being poor. But if you’re interested in learning more about solar panels check out Sandbar Solar’s residential solar services. You might be surprised as to what you can learn from them about the ranges of services that are available. Solar panels can generate a lot of energy (which can then be sold) but if you want to learn more about this, check out Solar MN.

Figure 3 – Poverty risk rate in Portugal,  percent (footnote 2)

Figure 3 – Poverty risk rate in Portugal, percent (footnote 2)

The question is: would they (or most of us, for that matter) actually buy these things, if they could afford it? Any direct response is, of course, mere speculation, since it’s impossible to run an experiment given the present mode of things. But we might take a look at what people who can afford greener technologies are actually doing with their money. Figure 4 and Figure 5 show a couple of trends in investment in electric vehicles and photovoltaic panels in recent years.

8.16 figure 4

Figure 4 – Solar and geothermal energy generation, in tonnes of oil equivalent (toe) in energy mix

Figure 5 – Number of electric vehicles sold in Portugal

Figure 5 – Number of electric vehicles sold in Portugal

A quick look at these charts clearly shows increasing trends in purchases of these items. In the case of photovoltaic panels, Figure 4 refers to energy output, but higher output is of course linked to increased solar panel installations. This has happened in the midst of the present day austerity-driven impoverishment of nations, of which the Portuguese society is a victim.

According to a 2012 inquiry / poll, housing and other property amount to 81 percent of all assets3 owned by the 25 percent poorest families, with motor vehicles accounting for 18 percent. This basically means these families own nothing else (or close to nothing). Meanwhile, the richest 10 percent of families own 71 percent of their assets in their own house and other property (30 percent in their own house), 25 percent in businesses and 2.2 percent in vehicles. It is also noteworthy that, according to the same inquiry / poll, 91 percent of all the richest 10 percent of families own vehicles and 20 percent own other valuables compared to 39 percent in vehicle ownership and 5 percent in other valuables for the 20 percent poorest families. These differences are also mirrored in the value structure of those assets: a typical rich family (from the top 10 percent) owns a median value of 17 300 € in motorized vehicles, while the poorest 20 percent own only a median value of 2000 €. In other valuables, the differences are even sharper, with the richest families owning a median of 17 500 €, while poorest own only 300 € (median). Finally, up to the 90 percent richest families, vehicles and other values stays at a median of 13 000 €, which is about 37 percent of the amount the richest 10 percent of families own in these items (median values).

What this means is that, apart from the 10 percent richest families, and maybe some of the 20 percent richest ones, no one can really afford to buy electric vehicles, which have an average cost at 33 400 € (with 7 year batteries), and photovoltaic panel systems (micro-scale systems start at 10 000 € per 4.6 kW package). Given this scenario, what could a basic income to give people the opportunity to purchase these low-carbon technologies and contribute to solve the climate crisis?

According to a basic income viability study for Portugal, a 435 €/month payment to every adult would generate income increases for everyone earning 1200 €/month or less, before taxes. However, that increase will only be truly significant (after taxes) for those earning nothing, or close to nothing. Of course, 435 €/month basic income will only allow for a person to care for basic needs, such as food and shelter–not electric cars or photovoltaic panels.

It would, however, mean more money in the hands of people who are nowadays consuming less than they ought to, given their basic needs. And this will lead to higher economic outputs, especially in local economies. That, in turn, will increase monetary circulation, and eventually enough accumulation that some families will be able to afford green technologies. Another possibility is that people will come together in condos, neighbour associations, cooperatives and such, and pool their basic incomes (or whatever extra amounts they can get, given the existence of basic income). This way, they can acquire this equipment through their shared resources and manage it cooperatively. Also, the prices of these products are getting lower. This is especially true for photovoltaic panels, the price of which has fallen as much as 75 percent since 2009, and is expected to continue falling. The forecast for electric vehicles prices is more uncertain; however, due to technological advancement and higher supply, it is expected that these prices will also drop in the next few years (Joana Balsa, 2013).

The relationship between basic income and increased purchases of low environmental impact technologies is not obvious, at least for the products discussed in this short analysis (photovoltaic panels and electric vehicles). However, I’ve hinted at some factors that may determine that rise, given the implementation of something like a basic income in Portugal. Of course options to reduce environmental impact is not limited to the purchasing of photovoltaic panels and electric vehicles. Many other possibilities are available, at much lower costs, such as replacing existing low efficient lamps for LED technology lamps, riding bicycles or even reducing the ingestion of meat (while eating more vegetables).

Notes:

1 – More information on the data gathering method and resulting platform can be obtained here (in French).

2 – percent of people living in poverty or in risk of poverty.

3 – Non-financial assets.

More information at:

In Portuguese:

Sónia Costa, Luísa Farinha, “Inquérito à situação financeira das famílias: metodologia e principais resultados [Inquiry into families financial situation: methodology and main results]“, Occasional paper 1, Banco de Portugal, 2012

Miguel Horta, “RBI financiado pelas pessoas [Basic income financed by the people]“, October 2015

NOCTULA, Consultores em ambiente, “Energias renováveis: a revolução do preço da energia solar [Renewable energies: the price revolution of solar energy]“, August 2015

Joana Balsa, “Avaliação do impacto da introdução de veículos elétricos na procura de combustíveis em Portugal [Impact evaluation of introducing electrical vehicles in the demand for fuels in Portugal]“, Masters Thesis, Coimbra University, September 2013

Fundação Manuel dos Santos, PORDATA – Base de dados Portugal Contemporâneo website

Sónia Peres Pinto, “Há cada vez mais carros elétricos em Portugal [Electric cars are increasing in Portugal]“, SOL Economia, May 19th 2016

Associação Utilizadores de veículos elétricos, “O Mercedes Plug-In C350e da Mercedes, foi o veículo elétrico mais vendido em junho de 2016 [Mercedes Plug-In C350e was the most sold eletric vehicle in June 2016]“, August 6th 2016

In English:

TOGETHER – territories of coresponsibility website

Statistics Portugal website

Zwolinski: Basic income helps ‘protect freedom’

Zwolinski: Basic income helps ‘protect freedom’

One of the most visible libertarian advocates of the basic income is Dr. Matt Zwolinski. Zwolinski is a professor of philosophy at the University of San Diego and has written extensively on the libertarian case for the basic income.

In my interview with Zwolinski, he said a basic income “can help protect the freedom of certain vulnerable people,” although he recognizes there is a trade-off due to the coercive nature of taxes.

Zwolinski also dismissed some of the common libertarian objections to the basic income, saying it is a hard moral sell to claim taxation to help the poor is indistinguishable from a mugger stealing for himself.

“I think there’s a moral case, based on freedom and a correct theory of property rights, that justifies some form of economic redistribution,” he said.

For those libertarians that think basic income disqualifies them from the libertarian label, Zwolisnki said this does not make much sense since many libertarian thinkers throughout history have advocated for the basic income approach.

“Libertarianism is and should remain a pretty big tent,” Zwolinski said.

As a libertarian, what is the best reason to support UBI?

I don’t think that there’s a single best reason. I’m a pluralist in my moral philosophy, and so I think that a lot of different kinds of reasons are usually appropriate in assessing the case for or against a particular piece of public policy.

But, basically, I think there are two strong libertarian arguments in support of a basic income, one broadly deontological in nature and the other broadly consequentialist. The deontological argument has to do with the limits to the libertarian case for private property. For reasons that I think were very well laid out by Herbert Spencer in 1851, I don’t think the standard Lockean story about self-ownership and labor mixing gets us very far in justifying private property in land and other natural resources. For starters, that account simply doesn’t match the historical reality in which most private property originated in force and theft rather than peaceful homesteading. But, more fundamentally, I just don’t see how mixing your labor in a natural object gets you a property right in the whole economic value of that object, as opposed to a right to that portion of the value created by your labor. Basically, I think Henry George was right. And so I think that there’s a strong case to be made for a basic income funded by a “Single Tax” on “land rent” – the economic value of unimproved natural resources such as land.

The more consequentialist case has to do with protecting individual freedom. I call it a consequentialist case rather than a utilitarian one deliberately. The idea is that a basic income can help protect the freedom of certain vulnerable people. But I recognize that a basic income that’s large and broad enough to do that might have to be funded by taxes that violate the freedom of others. So we’re trading off freedom for freedom. That might sound scary to some libertarians, but I think that unless you’re an anarchist you’re already willing to accept something like this. Tax-funded police services, after all, protect individual freedom but are funded by coercive taxation.

I think the seeds for a freedom-based defense of a basic income are present in the writings of Friedrich Hayek, especially in his Constitution of Liberty. Hayek himself defended a kind of basic income, but was never entirely clear about what he saw the justification for it to be. I’ve tried to work out what a plausible Hayekian justification might be, at least in terms of broad outlines. Basically, I see Hayek as embracing a kind of republican account of liberty, where freedom means not just not being subject to the initiation of force but, more generally, not being subject to the arbitrary will of any other person. Once you take that account of freedom on board, I think you can justify a basic income as a way of protecting the economically vulnerable. The idea is that people who might otherwise have to accept any offer an employer makes or else starve aren’t really free. A basic income gives them the ability to say “no,” and thus protects them from being bossed around by the economically powerful.

One interesting thing to note about these two arguments is that they’re not just different in terms of where they start – the moral premises on which they’re based. I think they’re also different in terms of where they end up – in the kind of basic income they justify. If the Georgist argument works, I think that justifies a truly universal basic income. The earth belongs to all of us, and so all of us have an equal claim to the economic value of unimproved natural resources. Now, depending on how much of present wealth you think is due to labor, rather than raw natural resources, the value of this kind of basic income might not be very large. So, on this argument, what you might end up with is a very broad but relatively small basic income. Everybody gets something, but nobody gets much.

The freedom-based argument, on the other hand, doesn’t give us any reason to write a check to Bill Gates. His freedom is already protected by his economic power, so there’s no real point in giving him any more money. And the same will be true of a lot of other people, not just the rich but probably most of the middle class as well. So if the case for a basic income is based on the protection of individual freedom, I think what that gets you is something less than a universal basic income. Not everybody gets something, but what those who need it get will be large enough to effectively protect them against economic domination by others.

What would your ideal UBI look like? 

Designing a policy like a universal basic income is obviously a complicated task. And I think it’s a task that should be highly sensitive not only to the kinds of moral considerations with which I spend most of my time as a philosopher, but to empirical considerations of the kinds studied by economists, sociologists, and the like. So I don’t want to claim that I’ve got anything close to the final word on this. I have some ideas, but this is definitely not a one-person project.

That said, I think that given the two distinct moral considerations that justify a basic income, there’s a case to be made for having two distinct basic income type policies that respond to those considerations. One would be a small, truly universal cash grant based on the economic value of unimproved natural resources. Think of this as something like the Alaskan Permanent Fund writ large. The other would be a less universal but more generous grant directed toward those individuals who fall below a certain specified threshold of economic sufficiency. I think the best way of implementing this second program is probably something like Milton Friedman’s Negative Income Tax, though I also like the proposal set forth by Charles Murray in his book, In Our Hands. In both cases, people earning less than a certain amount of money get a cash grant from the government, with which they can do whatever they wish; while people earning more than that amount get nothing. That conditionality makes the program less than truly universal. But I think you’ve got to do something like that in order to make a basic income economically feasible. Many basic income enthusiasts want a grant that is (1) universal, (2) large enough to provide people with an adequate level of income, and (3) economically affordable. But you can’t satisfy all three of those conditions at once. A Negative Income Tax satisfies conditions (2) and (3), which to my mind are the most important conditions, morally speaking. Condition (1) might be politically important in terms of generating and sustaining support for the program. I’m not sure. But it seems to me that something has to give, and I think there’s a strong case to be made for keeping (2) and (3) and relegating (1) to the land-tax component of the joint program.

Many libertarians say removing all welfare would be superior to replacing welfare with the UBI. Do you agree with this sentiment?

No, I don’t think so. But before I explain why, let’s be clear about two different conversations we could have about this question. One is a conversation about ideals – what is the best kind of society we could imagine as libertarians, regardless of how different that society might look from our own? The other conversation is about pragmatics – what should libertarians advocate here and now, given all the injustices, imperfections and disagreements with which any practical political proposal has to deal?

Now, as it happens, I don’t think either of those conversations gets you to the conclusion that all state-based welfare ought to be eliminated. That’s certainly not something that has any practical chance of being implemented in a world where, after all, most people aren’t libertarians. But I don’t think it’s very attractive as an ideal, either. I think there’s a moral case, based on freedom and a correct theory of property rights, that justifies some form of economic redistribution. Obviously, we’ve had a lot of bad redistribution in our society. We’ve have redistribution to the poor that’s made their lives worse, rather than better. And we’ve had a lot of straightforwardly regressive redistribution that actually takes money and opportunities away from the poor and channels it toward the better off. And libertarians have rightly criticized those programs. But the idea that anytime the state takes money from the well-off and gives it to the poor, that’s morally indistinguishable from a mugger on the street taking your wallet at gunpoint, well, that’s a hard sell. And not, I think, simply because non-libertarians are being thick-headed.

In my experience, many libertarians have called me a statist and denied me the label of libertarian for supporting the UBI. Have you had similar experiences and what is your reaction?

Sure, I get that all the time. Some people seem to think a desire to eliminate the welfare state is just part of what it means to be a libertarian. But what’s their basis for that? That Murray Rothbard thought so? Or Ayn Rand? But why should we take them as the final say on what libertarianism is or isn’t?

As I’ve written about before, there are a number of people who fall pretty squarely in the libertarian intellectual tradition – Milton Friedman, Robert Nozick, Friedrich Hayek, and Herbert Spencer, to name a few – who don’t hold that view. Why should their views count any less toward defining what libertarianism is than Murray Rothbard’s?

I’m finishing up a book on the history of libertarian thought with John Tomasi. And one of the themes of that book is that the libertarian intellectual tradition is incredibly pluralistic. Some libertarians are consequentialists, some are deontologists, and some are ethical egoists. Some are anarchists, some are minimal-statists, and some are classical liberals. Of course, not all of those views can be right, and libertarians should (and do!) argue amongst themselves about which view is the best libertarian view. But I think it’s silly – and more than a little ironic! – for libertarians to try to write people with whom they disagree out of libertarianism altogether on the basis of some putative ideological authority. Libertarianism is and should remain a pretty big tent.

Video: Basic Income and the Work of Karl Widerquist

Video: Basic Income and the Work of Karl Widerquist

Karl Widerquist’s August 2016 presentation on Armando F Sanchez Production. An analysis on how extensive the governmental economic policies are and yet fail to meet the needs of the poor. Guaranteed basic income extends beyond the issue of permanent unemployment. It is a vital issue of ethics and social justice for those that are born in a time where they cannot obtain and enjoy the benefits of the basic resources that are needed to live.