Interview: UBI and ‘Job Culture’ (Part One)

Interview: UBI and ‘Job Culture’ (Part One)

The following is part one of a two part series in which former Basic Income News editor Kate McFarland interviews D. JoAnne Swanson of The Anticareerist on Basic Income.

The original article can be found here.

KM: You have a long career–if I might use that term–of critiquing “job culture” and promoting, as it were, a more leisurely society. There are others with similar interests who have called for alternative strategies, such as mandatory reduction in the work week and increase in vacation time, policies to promote job-sharing, and policies to allow workers flexibility in trading income for time-off. What caused you to begin promoting basic income in particular as a means to move from a more job-oriented society to more of a leisure society?

DJS: My basic income advocacy began with love and outrage: a deep and abiding love of the arts that led to outrage when I learned that so many artists live in poverty. I want every creative person who’s ever wanted to devote themselves fully to their arts and crafts to be free to do so on their own terms. I mourn the tremendous waste of gifts and talents happening every day as artists spend so much time and energy in jobs to meet basic survival needs while their art gets pushed into the margins of their lives. Art is essential; it’s not a frivolous luxury. People need art. There have even been times in my life during which art, music, books, and dance were the only reasons I wanted to go on living. How many brilliant artistic works have never come into being because artists are forced into flipping burgers just to make ends meet? That’s a massive loss to all of us. In order to promote artists’ work, there should be a system that allows them to keep their art without having to worry about finances. As well, more and more schemes should be introduced that can help them in borrowing money as an artist. This might enable them to continue to work on their art while they take care of their financial issues. UBI could free artists to be of service in the way we do best. If we could meet our basic needs without having to sell our labor to employers to survive, the arts would flourish. That’s the world I want to live in. UBI could help us build that world.

More broadly, though, I started promoting UBI because I wanted to ease the burdens of all economically marginalized populations, including caregivers and other unpaid laborers. UBI could provide a means of harm reduction and self-determination for those who are struggling financially. I want to liberate work from the constraints of paid employment, and empower people to say no to coercive employment. Massive suffering occurs every day because people are divided into “deserving” and “undeserving” categories based on our ability and/or willingness to hold wage jobs. This is fundamental moral injustice. People who aren’t in paid employment – or can’t work at all – should not be treated as if they are worthless. Benefits recipients should not be forced to prove their worth in order to receive food, shelter, and health care. Many people with chronic illnesses and disabilities, for example, are suffering and dying because they aren’t healthy enough to maintain employment sufficient to pay their bills, yet the authorities deem them “not disabled enough” to qualify for disability income. UBI is desperately needed. It could save lives.

I do support reduced working hours, increased vacation time, job-sharing, and other policies that allow greater flexibility for employees. If well-implemented, these can be steps in the right direction. But those strategies only apply to employed people. UBI can make life easier for people outside of paid employment. I want people who hate their jobs to be able to quit without fear of homelessness and poverty. I want to help create conditions in which those who don’t want jobs don’t have to take them, and those who do want jobs can enter into them by choice and interest instead of by coercion born of financial need. When people don’t have the option to say no to selling their labor, they are much more easily exploited. A properly implemented UBI could strengthen the negotiating position of the labor force and reduce the suffering people endure when they can’t find employment that pays enough to meet their basic needs.

As for my career as a critic of job culture, I figure I’m justified in adopting the oxymoron “professional anticareerist” after 20 years of autodidactic study in a field of my own design, tongue-in-cheek though the title may be.

KM: Relatedly, do you think that, as a policy reform, UBI is sufficient to allow people to promote more opportunities for unpaid work, more leisure time, and the attendant ecological benefits to which you allude in your article?

DJS: I think it’s a necessary reform, but I don’t think it’s sufficient. A well-implemented UBI would be a major step in the right direction, but building a culture that values leisure and respects unpaid workers will require us to loosen the ideological chokehold of compulsory paid employment and the Puritan work ethic. I founded The Anticareerist (formerly known as Rethinking the Job Culture and whywork.org) to help facilitate this culture change.

So much of American culture is centered around a norm of full-time paid employment. Many people in the U.S. rely on jobs not just for income, but for health insurance. Making health insurance conditional upon employment or spousal relationships, as the U.S. does, exerts powerful coercive forces that keep many people stuck in unhealthy jobs and relationships to ensure they maintain access to healthcare. UBI alone would certainly be insufficient to address major structural issues like that, especially in the current political climate.

Regarding the ecological benefits of UBI…it’s often overlooked that compulsory paid employment is a major contributor to ecological crisis. As Ken Knabb puts it in his essay Strong Lessons for Engaged Buddhists:

“As long as there is big money to be made by producing weapons or ravaging the environment, someone will do it, regardless of moral appeals to people’s good will; if a few conscientious persons refuse, a multitude of others will scramble for the opportunity to do it in their place.”

Why does that multitude of others scramble for the opportunity to participate in ecological destruction? Because in a world without UBI, people desperately need jobs – any jobs – to pay for food and shelter right now, and that’s a powerful enough incentive that it leads our species to act in ways that threaten our long-term survival. What might we do with our time instead, if we weren’t forced into ecologically destructive jobs in order to feed and house ourselves? UBI provides a means to enable people to refuse ecologically harmful employment, and that’s a necessary reform…but even with a UBI in place, we’ll still need to address other incentives, norms, and ideologies that reward pathological behavior and punish responsible behavior.

KM: Some proponents of a job guarantee also support broadening the concept of “work” to include care work, housekeeping, volunteering, creative work, and so on–work like you describe in your article. That is, they would extend the job guarantee to cover such work. And, of course, employment would be guaranteed by the government, so doing the work wouldn’t require self-marketing. The job guarantee could also be accompanied by a shorter workweek and more vacation-time, to guarantee more time for leisure; it could even be a drastic reduction to allow for the interesting and important states of “deep leisure” that you describe. Some advocates of a job guarantee do also support shorter working hours, after all; the policies are not incompatible. Would you support such a job guarantee? Assuming that you would still prefer UBI, why?

DJS: Well, for starters, I’ll say that if I were offered government-guaranteed pay to do my self-driven creative work on my own terms – i.e., the work I’d be doing anyway, whether or not I ever got paid – I’d gladly accept it. So in theory, a job guarantee sounds like it could be an improvement on what we’ve got now. However, without getting into policy details, I don’t believe it could be implemented in a way that would make it so. It would be much more complicated than basic income.

Furthermore, it’s still conditional income. What would happen to me if I could no longer write, nor do any work at all? Is my life only valuable to the extent I can be productive (however “productive” is defined)?

A job guarantee leaves the dominant work ethic unchallenged, and I think this is one reason many people find it preferable to UBI. Everyone must earn their pay – or so the story goes – and those who don’t work don’t deserve to eat. This ideology is surely among the most deeply entrenched cultural barriers to a UBI. It’s a powerful shaper of policy, and all the more so because it’s so rarely called into question. Fundamentally, my goal is to break the coercive link between paid employment and survival. A job guarantee doesn’t address that, so I wouldn’t support it. Without a UBI in place, a job guarantee would still amount to coerced labor on the state’s terms. In my vision of justice, people are regarded as intrinsically valuable regardless of their employment status or productivity.

KM: Sometimes the poor and unemployed, including those on welfare, do make claims like, “I don’t want a handout from the government; I want a job so that I can support myself,” implying that they themselves do see paid employment, not government-provided financial security, as a source of freedom and independence. What would you say to such individuals? Do they have a false consciousness?

DJS: Unpacking this can get complicated quickly. In cultures organized around paid employment – i.e., the cultures most of us live in – it’s true that jobs are genuinely important to many people. I don’t think they have a false consciousness, because these beliefs do make sense within the normative framing conditions of the dominant job culture. Often, unemployed people feel as if they don’t have a socially acceptable place to belong in the world, whereas a job can bring instant respect and recognition.

When gainful employment is equated with dignity and benefits recipients are maligned as “welfare bums,” it’s understandable that many people become accustomed to tying their self-worth to paid jobs. According to this narrative, wage labor – any wage labor – is vastly preferable to welfare, because jobs are inherently morally good. These cultural norms also place responsibility for economic productivity on the shoulders of individuals, which is convenient for capitalism because it diverts attention away from the immense harm caused by structural forces that force people into jobs.

Conflating the word work with paid employment also devalues and obscures unpaid labor, which compounds the problem. For example, it’s common to refer to those who aren’t in the labor pool as “not working,” regardless of whatever other forms of work they may be doing outside the job market. If I clean my own house, for example, that’s not considered “work,” but if I clean someone else’s house and they pay me for it, then suddenly I’m doing economically productive work. The dominant narrative asserts that all paid work is good because it provides jobs, and those jobs are necessary for survival. If we don’t question the veracity of this paid-employment-is-the-only-real-work narrative, and we internalize social taboos against desiring income without working for it, then it’s logical to come to the conclusions you describe above.

But you asked what I’d say to them. Most likely I’d encourage them to look into the work of writers and thinkers who challenge this narrative, such as David Frayne, James Chamberlain, Kathi Weeks, Sharon Beder, Peter Frase, and David Graeber. Graeber suggests “a labor theory of value that starts with women’s work & caring labor as the paradigm,” for example. I think that would be a great start to dismantling the notion that paid jobs make people “self-supporting.” That’s a misleading notion, because it obscures our interdependence and devalues all the unpaid labor that undergirds the job market.

KM: You mention, in passing, that there are “good reasons” why your creative work “should probably remain unpaid”. Do you mean this independent of the fact that you need to devote so much work and effort to securing funders? That is, even if your creative work could become a guaranteed job, there are reasons it might be better off unpaid? If so, this seems like it could be a relevant and important difference between a UBI and a job guarantee like the one I just described, and I wonder if you would elaborate more on this. What are these “good reasons”?

DJS: Good question! It deserves a full essay of its own, but here’s a start.

I have a saying: “endarken the work.” This is how I remind myself that my best creative work – the kind that’s worthy of being called art – emerges through immersion in endarkened or daimonic states. I cannot control these forces of endarkenment; they live in the realms of the gift, and they show up of their own accord. I can only surrender to them.

Dwelling in these endarkened states of creative flow requires me to trust my gut and allow my instincts to point the way. (By the way, I love the phrase “trust your gut,” as it’s an everyday acknowledgment of embodied forms of intelligence other than the much-vaunted intellect.) I cannot steer this process toward any external outcome desired by my waking mind, whether that be money, attention, praise, love, or influence. My conscious mind must act as servant, not as master. The work must be undertaken willingly, and it must be done for its own sake. It must be done because these are the gifts I’ve been given, and this is the work I’m entrusted to carry out. Period. If I attempt to monetize the creative process itself, hurry it along, or shape it into any form it does not want to take, I compromise its integrity or spirit.

When the work feels complete and true, then I can start thinking about how or whether to market it. If I consider monetary factors too soon, the creative process becomes truncated, because I’ve squeezed the work into the straitjacket of the conscious mind’s agenda. Audiences know the difference between work produced for an agenda and work infused with the integrity of daimonic states. They may not be able to explain it, but they can feel it.

One of my favorite writers, Stephen Harrod Buhner, describes writing that emerges from these endarkened states of relaxed receptivity as “soaked in life force.” I think that’s an apt description. This is also where the deepest joys of work reside for me: in spaces of creative endarkenment. I think of these processes as forms of everyday magic. Like William Morris, I believe that taking pleasure in the work itself is a necessary condition for the creation of artistic beauty.

As a writer who works with daimonic forces, I have certain obligations: to keep honing my skills so I can be a fit vessel for the work; to arrange my life so that I can respond appropriately when words show up of their own accord (“daimonic necessity,” as Matt Cardin calls it); and to make allowances for fallow periods. As I wrote in my original piece, states of deep leisure are essential components of my creative process. Without sufficient leisure, silence, and stillness, I cannot endarken the work.

In a world without UBI, it’s difficult to maintain conditions that permit me to work this way, because leisure, silence, and stillness are made artificially scarce. I live in a culture that considers it not only acceptable but morally right that everyone should have to “earn a living” on the employer’s terms. The implicit threat underlying employment negotiations is: if you don’t find employment that earns enough money, you’ll be denied the basic means of life. Most people don’t have the option to say no to employment, which makes this structural coercion a fundamental moral injustice. If I don’t have time for creative incubation because my paid job consumes nearly all of my time and energy, then I can’t produce work that is infused with the daimonic.

So when I wrote that there are good reasons my creative work “should probably remain unpaid,” I didn’t mean my creative work is unworthy of payment. I’m talking about motivation. I mean that financial motives (or any motive that does not respect the integrity of daimonic forces) can compromise the integrity of creative work. In a world with UBI, I could do that daimonic work on its own terms, without regard to its marketability, and I could still pay my bills. That would liberate a great deal of energy, which would in turn allow me to produce better work. The same goes for all the other creators out there whose time and talents are being channeled into what Graeber calls “bullshit jobs” instead of devoted to their creative work.

In my original piece, I linked to your thought-provoking article “A ‘Paid Volunteer’ Against the Monetization of Voluntary Labor (and for Basic Income),” in which you wrote:

“…it seems that voluntary work is best supported and encouraged not by the monetization of that work, but by the provision of financial support entirely independent of that work – the type of financial support that would be provided, for instance, by an unconditional basic income. […] It is better to have enough financial security to work for no pay than to receive payment directly for the same work.”

I agree. My preference would be to receive unconditional income sufficient to allow me to work for no pay, rather than to receive direct payment for it. I have strong sources of intrinsic motivation to do creative work already, so I don’t need money as a motivator. But I do need it for material sustenance, so as long as I live in a world that requires me to “earn a living,” I must seek payment for it and/or maintain a day job for income.

Typically, when artists decry “selling out,” we’re talking about compromising the integrity of the creative process in order to satisfy market demands. “Art should be free” is one way of trying to give voice to this truth, but that phrasing is vague and easily misunderstood. Whether or not we can put it into words, artists intuit that art should be free of coercion. We know that true art comes to us as a gift. But that doesn’t mean art is financially worthless. It’s important not to conflate “free” in the creative sense with “free” in the financial sense.

We’re faced with a real dilemma, because art is socially valuable, and the world benefits when it’s made widely available. That’s what we’re getting at when we say things like “art should be free.” But if we make our art available free of charge in a world that requires us to “earn a living,” then our labor goes unrewarded. Art is real work. Art has social and political costs, many of which remain hidden to the general public. As things stand now, those costs are disproportionately borne by the artists themselves.

What causes this dilemma? The need to earn a living. The “starving artist” is not a problem inherent to art. Nor is it a problem inherent to money. The problem is structural; it’s about power relations. The problem is the need to sell our time for money. It’s hard to make space for full surrender to the creative process in a world that shoehorns nearly everyone into paid employment just to prove we deserve food, shelter, and healthcare.

When artists lose control over our time because we spend most of it at our employers’ behest, we pay a high price individually and culturally. That’s one of the tragedies of compulsory paid employment, and one of the reasons I started The Anticareerist.

KM: You have a very interesting passage in which you stress that Patreon is “a far cry from UBI”. I must say that, as someone who has dabbled in crowdfunding through Patreon, I couldn’t agree more. But, as you no doubt know, there’s a lot of talk in the basic income community about the writer and advocate Scott Santens as someone who crowdfunds “his own basic income” on Patreon. Indeed, Santens himself talks about having a “basic income” due to his support on Patreon. What is your opinion on the use of those like Santens as (purported) examples of people “who already have basic incomes”? Do you think it’s at all misleading or even dangerous to the movement?

DJS: In Scott’s case, I suspect that framing his Patreon earnings as a “basic income” may be a consciously chosen rhetorical strategy to attract support for the UBI movement. As a basic income writer, he’s demonstrating what he can do for the world when he’s given enough support by his readers to free him from the need to hold a conventional job. He’s using the phrase very loosely, for sure, because Patreon is arts patronage, not basic income. Scott doesn’t have a UBI; he has crowdfunding patronage that supports his media activism. UBI is unconditional and available to all. Patreon support is conditional, and it’s available only to those with sufficient artistic, social, promotional, and technical skills – and time! – to pursue their art while also managing a Patreon campaign.

Do I think the way he’s describing his income is dangerous? No. Misleading? Yes. However, considering our dire need for UBI – people suffer and die from preventable ailments every day for lack of a few hundred dollars – I’m also pragmatic enough to think this misuse is mitigated by the way his work helps to shift the dominant narrative and attract support for UBI sooner than it might come otherwise.

Scott wrote:

“Let’s get something straight here. It’s not that people with unconditional basic incomes won’t work. It’s that people with an actual choice instead of no real choice may not choose YOUR work at YOUR price. Basic income is the basic freedom to choose both OUR work and OUR price.”

Because he’s fortunate enough to have that ongoing financial support in place, he’s able to do his work by choice. Clearly he wants all of us to be so lucky, which is why he’s devoting his life to basic income activism. He knows what it’s costing the world not to have it. I respect that greatly. In a recent interview he said:

“There’s someone right now who is flipping burgers just to get by. They’re working for poverty wages for 100 hours a week. They’re too busy to be focused on really important, world-changing work. What is the cost to society of that? You can’t put a price tag on that.”

Indeed!

So although I’d prefer more accurate language about his crowdfunding situation – I’m a word nerd, after all – I think this is a minor “infraction,” especially when compared to the way so much of the discourse in the basic income movement reinforces the dominant work ethic.

KM: We see a lot of discussion these days about the idea that basic income encourages employment, because it removes a financial disincentive for those on welfare to take jobs. We see perhaps even more cases of basic income advocates rebutting the concern that people would work less if they had a basic income; a lot of proponents of UBI are eager to cite studies that show it doesn’t decrease employment. What is your reaction to this type of basic income discourse? Does it make you at all skeptical of the ability of basic income to combat the job culture?

DJS: I’ve been a basic income supporter for over 20 years, and I’m thrilled to see how much the movement has grown in recent years. But the prevalence of rhetoric supporting productivist values and the dominant work ethic troubles me enough that I often feel alienated from the movement. I think anti-careerism/un-jobbing needs an organized movement of its own. Ideally we could work collaboratively with the basic income movement.

Nonetheless, considering that the work ethic is so firmly entrenched, it does make sense that some of the discourse focuses on challenging the notion that UBI is about “enabling laziness” or discouraging work.

I find it discouraging that a typical first reaction to the idea of UBI is “but wouldn’t people just spend it on drugs or be lazy and not work?” Only in a world that normalizes compulsory employment could it be so widely accepted that people should be driven into jobs by shame about “laziness” and fear of destitution rather than by choice and interest. I think “laziness” is often a healthy resistance – a mutiny of the soul, as Charles Eisenstein calls it – to a coercive job culture. Even if some people were “lazy,” though, so what? Who cares? Coercing people into jobs they hate costs us a lot more than providing them with a UBI – not just economically, but also psychologically, socially, culturally, and ecologically. “Lazy” people stuck in ecologically harmful jobs for the sake of a paycheck could do more for the world by quitting their jobs and lying on the couch than they could by staying in those jobs. I’ll cheer them on!

When I first learned about UBI, “laziness” didn’t even cross my mind. I thought about how it might allow me to quit my day job and write on my own terms instead of my employer’s. I thought about how it could empower people to resist coercive employment. I thought about how it could enable people to leave abusive partners. I thought about how it could reduce food insecurity. I thought about how beneficial it would be for welfare recipients to receive support without the stigma and means-testing of a punitive social assistance system.

I also thought: How many people are doing tremendously beneficial work right now without much (or any) income from it? “A lot” would be a massive understatement; I think everyone reading this could name many of them without even missing a beat. How much easier could their lives be with UBI? Would we rather continue to allow masses of people to suffer because we think jobs prevent a few people from “being lazy,” when we could instead be saving lives, freeing people from abusive relationships, easing the burdens of care labor, and promoting a flourishing of the arts?

That said, I do think it’s important to note one of the ironies here: namely, that many people, myself included, yearn for a UBI out of ongoing frustration at not being able to do more of the work they want to do. This interview is a good example. It took me many months to squeeze in enough time to answer these questions, since most of my waking hours are consumed by wage labor and maintaining a household. In a world with UBI, my creativity would flourish, because I’d be free to do my unpaid work. I’m confident that I could be of much greater service to the world as a writer without a job (but with UBI!) than I can with one. But until we live in a world with a UBI, I doubt I’ll have a chance to prove it.


You can find out more about The Anticareerist and its author HERE.

Want to read back issues? An archive of all published issues is HERE.

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Basic income’s transition from radical idea to legitimate policy

Basic income’s transition from radical idea to legitimate policy

We know that basic income has risen dramatically in the public consciousness and also up the political agenda in the last two to three years. How has this been achieved? The academic literature offers theoretical explanations but no empirical evidence from any of the existing pilot projects. Therefore, I carried out research in four of the locations undertaking pilot studies, Finland, Scotland, the Netherlands and Ontario, to understand how basic income was legitimised as a policy, what problems they hope to address, and how the interpretation and implementation of basic income varies between them.

Through interviews with policymakers, experts and advocates involved in these pilots and in the promotion of basic income in these countries, I discovered a great deal of similarity in the factors which have allowed basic income onto policy agendas. Some have occurred by accident, some through long-term advocacy and political lobbying, and some through economic change. Importantly, these factors occurred at similar points in time, enabling them to interact and strengthen each other.

In all four of the pilot locations interviewees described how long-term support and advocacy for basic income has allowed public and political opinion about the idea to develop over time. Alongside this, long-standing problems such as unemployment and poverty have proved extremely difficult to address, and dissatisfaction with existing policies has grown. Interviewees explained how anxieties about the changing nature of work and the inability of social security systems to properly adapt to this new world have led increasing numbers of people to look to basic income as a radical alternative. Existing systems are seen as delivering poor outcomes, stigmatising those in poverty and being overly complex and bureaucratic. The assessment of basic income as a holistic and intersectional policy, capable of delivering multiple outcomes, was cited by several interviewees as reinforcing the desire to implement a pilot. Each pilot study aims for a range of positive impacts, both economic and social, pragmatic and ethical.

Interviewees in all four of the pilot locations reported high levels of public debate and engagement with the idea of basic income, and this appears to have been crucial in legitimising it as an idea . Public interest reached a critical mass, which, coupled with other factors, prompted political action. These pilot studies have not been developed solely by civil servants in a bureaucratic bubble but have been strongly influenced by campaigners, basic income advocates and experts from think tanks and academia. Evidence from the interviews shows that formal and informal coalitions and collaborations between these different groups has helped to shore up support and consolidate basic income as a legitimate policy.

Interviews in all of the pilot areas noted a context of growing interest in evidence-based social policy, and each pilot is framed as an experiment, not necessarily the precursor to a full roll-out of basic income. In Finland for example, both advocates and opponents of basic income supported setting up the pilot in order to evaluate if basic income can live up to its promises. The emphasis on experimentation was an important factor in enabling the Finnish pilot to take place but also meant that it does not necessarily signal deep political or social change.

It should be noted at this point that none of the pilot studies that are running (Finland, Netherlands, Ontario) are experimenting with a ‘full’ basic income: a universal, non means-tested payment with no obligations or conditions attached, paid regardless of other income.

Each study retains some element of conditionality, targeting or an earnings cap, above which the basic income payment is reduced.  A clean break with existing policies and paradigms of social security has not been achieved or indeed attempted for the most part. Interviewees discussed political, bureaucratic, and experimental pressures that led to compromises in the scope and ambition of their pilots. These compromises appear to have been critical  in allowing the pilots to take place, as they resulted in proposals that were deemed to be politically and experimentally acceptable. At a detailed level, each of the pilots look very different in how they were designed, whom they target, and how they operate; local influences  proved powerful in translating the core concepts of basic income into operational models.

These compromises could be considered as a de-radicalisation of basic income, and have resulted in a curious situation in which pilots are not testing a ‘full’ basic income but have retained the basic income ‘brand’. This appears to be a presentational issue; many interviewees described a desire amongst politicians to demonstrate innovation, leadership and radical thinking, and basic income was seen as a way to do this. Retaining the basic income ‘brand’ even though the experiments deviate in important ways from the core ethical and economic values  of basic income confers  a positive light on those involved and attracts international attention.

When look at their specifics, each pilot in the study is different, influenced by myriad local factors. However, each pilot demonstrates striking similarities in the clustering of a number of factors that have allowed basic income onto the political agenda. Broad agreement on the importance of tackling poverty and unemployment, and the steady rise in public interest in basic income coupled with a desire for evidence-based policy and the hope that basic income could tackle multiple problems. As a small-scale, qualitative study, these findings cannot be considered a ‘how-to’ guide for other places hoping to develop their own pilot project but may prove useful in understanding how a radical idea such as basic income can find a place in mainstream policy.

 

Anna Dent is a consultant working in employment and skills policy and implementation for the public and non-profit sectors. She has particular interests in low-income workers, the changing nature of work, and welfare benefits. She holds an (Master of Science) in Public Policy from the University of Bristol, and is a fellow of the RSA (Royal Society for the Encouragement of Arts, Manufacturing and Commerce).

Ville-Veikko Pulkka, “A free lunch with robots – can a basic income stabilise the digital economy?”

Ville-Veikko Pulkka, “A free lunch with robots – can a basic income stabilise the digital economy?”

Ville-Veikko Pulkka, a public policy researcher and doctoral candidate at the University of Helsinki, has published his paper “A free lunch with robots – can a basic income stabilise the digital economy?” in European Review of Labour and Research.

Pulkka was previously employed as part of the research team at Kela, the Finnish Social Insurance Institution, responsible for the design and preparation of the nation’s two-year experiment replacing conditional unemployment benefits with an unconditional basic income.

The Finnish experiment has been the topic of most of his previous published work and presentations related to basic income (including presentations at conferences in Switzerland, Poland, Finland, and Ireland).

Pulkka’s research at the University of Helsinki, including his doctoral dissertation, centers on the implications of the digital economy for labor and public policy.

“A free lunch with robots,” his latest publication on basic income, moves away from focus on the Finnish experiment to explore the latter topic in more general terms:  

The discussion on the possible implications of the digital economy for labour continues unabated. An essential dimension of the discussion is the widely shared view that a basic income could guarantee sufficient purchasing power for unemployed, underemployed and precarious workers should technological unemployment and labour market insecurity increase. A budget-neutral basic income has serious limitations as an economic stabilisation grant, but if financing proposals are revised, these limitations can be tackled. Even though guaranteeing sufficient purchasing power for unemployed, underemployed and precarious workers does not necessarily require an unconditional universal benefit, it seems clear that traditional activation based on strict means-testing and obligations will not be a strategy flexible enough to guarantee sufficient consumer demand in fluctuating labour markets. An economically sustainable solution might be to reduce means-testing gradually and to study carefully the effects.

The full article is available behind a paywall here.


Reviewed by Russell Ingram.

Photo CC BY-NC 2.0 Helen Taylor

The Netherlands: ‘Free Money’ at Studium Generale Utrecht University, October 25, 2017

As the social assistance experiments in several Dutch municipalities will begin this fall, Studium Generale of Utrecht University has organized an event dedicated to ‘Free Money‘.

Studium Generale is a university’s public platform for knowledge sharing and reflection by organizing lectures, seminars and other activities aimed at students and the general public. Entrance is always free and accessible without reservation.

In the Netherlands, municipalities are responsible for the provision of tailor-made benefits to anyone who has insufficient means to support him or herself, and for achieving the purpose of the Participation Act, that is, making recipients independent from social assistance. Several municipalities are conducting two-year experiments, in the context of which they have the option of implementing social assistance regulations in an alternative way.

Each experiment will include at least three treatment groups, who are subjected to various regimes, and a control group. The restrictiveness of obligations between the groups will vary, from a group which has fewer obligations imposed on it to a group which is even more intensively supervised. In addition, participants in a third treatment group may retain a limited amount of their income from work on top of their payments. See the links at the bottom of this article for more details.

Researchers of Utrecht University, one of the four universities that will supervise the experiments scientifically, have been critical about the design of the pilots because of its limited scope and complicated nature.

The experiments, as they are proposed now, raise a number of questions, such as: why don’t we all give a basic income? Is it too expensive, or are there any other objections?

Rutger Bregman (The Correspondent) and Professor Ingrid Robeyns (political philosopher and economist at Utrecht University) will address these issues during the “Free Money” event on October 25, 2017.

Rutger Bregman has written several books on ‘Free Money’ — for instance, Utopia for Realists — and was one of the speakers at TED2017 in Vancouver last April.

Ingrid Robeyns holds the chair in Ethics of Institutions. In her teaching she focuses on normative and applied ethics and (normative) political philosophy. She has been teaching about justice theories and economic ethics at the masters level in recent years. In her own research, Robeyns addresses a number of normative issues related to demography, gender, family, and institutional economy. Robeyns writes for the English-language group blog Crooked Timber and occasionally on her own site Buiten Categorie. She will also be one of the speakers during BIEN’s 17th Congress next September in Portugal.

The event will take place on October 25, 2017. The language is Dutch. Those interested are invited to join the discussion on Facebook event. For more details, see here.


Previous information on social assistance experiments in The Netherlands:

Florie Barnhoorn, “The Netherlands: Amsterdam on collision course over social assistance experiments” (August 5, 2017).

Florie Barnhoorn, “The Netherlands: All that’s left is the action. Where do we stand with the experiments?” (June 2, 2017).

Kate McFarland, “The Netherlands: Social Assistance Experiments Under Review” (May 9, 2017).

Florie Barnhoorn, “The Netherlands: Design of BI Experiments Proposed” (October 26, 2016).

Credit Picture Flickr.com CC Ealasaid.
Thanks to Kate McFarland for reviewing this article.

The OECD and the problems of basic income

The OECD and the problems of basic income

According to the OECD, basic income (BI) is not an effective tool for reducing poverty. However, the outcome would depend on the model chosen for implementing a BI system, as well as the changes made in other parts of social protection.

 

The Organisation for Economic Co-operation and Development (OECD) published in May a Policy Brief paper studying the feasibility of a basic income model in four OECD countries, one of which was Finland.

On June 16, Kela organized a seminar in which Herwig Immervoll, a senior economist at the OECD, discussed the findings of his study and analysed the strengths and weaknesses of a BI scheme. After the seminar, the national broadcasting company YLE reported: “Universal basic income might increase poverty and inequality”.

Apart from Finland, the OECD study includes France, Italy and the United Kingdom. The analysis was done with the help of the EUROMOD microsimulation model. In each country, the starting point for the analysis was to take all existing spending on social cash-transfers together and see what level of BI they would amount to. Eventually, the level of BI was set near the existing levels of guaranteed minimum-income benefits for single individuals in each country, adjusted so that it would not increase the public expenditures.

In Finland, this resulted a BI of 527 euros for the working age adults and 316 euros for children and youth under 18 years of age. Those entitled to old-age pensions within the current main statutory retirement age (in Finland over 65-year-olds) were excluded from the BI model.

In the BI model used in the OECD analysis, all existing working-age benefits (including social insurance benefits) apart from cash transfers for housing and disability would be abolished. Also, the zero-rate tax bands of income-tax schedules and equivalent tax-free allowances would be abolished, and all income-tax thresholds would be shifted downwards by a corresponding amount. BI would be made taxable under personal income taxation alongside other taxable incomes.

The OECD model would create many gainers and losers

The most important outcome of the OECD study is that the simulated BI model would strongly impact the income distribution in all studied countries. However, the effects vary greatly among the countries.

In all income groups, the BI model would create many gainers and losers. It would change the net income of most people in one way or another. It would lift some groups out of poverty and thrust others below the poverty line.

The simulated BI model would increase the income level of those small income groups who are currently not receiving any social benefits, or whose benefit level is very low. In turn, those receiving earnings-related benefits or several means-tested benefits would see a decline in their standard of living.

In Finland, those below 65-years-old receiving old-age pensions and single parents with low incomes would be among the losers of the model. The middle-income earners instead would generally benefit from the model.

The conclusion of the OECD is that particularly in countries with a comprehensive social protection BI is not an efficient tool for reducing poverty, since it does not target the benefits effectively. According to the OECD, a budget-neutral BI would not be distributionally neutral. High enough to be socially and politically meaningful and fiscally realistic, a BI would still require tax rises as well as reductions in existing benefits.

A very low basic income, instead, would have little other significance but increase poverty.

The outcomes of BI depend on reforms in taxation and social protection

How the findings of the OECD study are to be interpreted in the Finnish context?

Perhaps the most important issue that the research sheds light on is the fact that there are many institutional challenges in implementing a BI system, and those challenges differ among countries due to their different systems of social security and taxation.

As the OECD report (p. 5) notes, BI as an idea is simple, but the existing social protection systems are not. Therefore, there are grounds to argue that the same model of BI does not fit everywhere. If a reform such as BI were to be carried out, it needs to be adjusted to the existing institutions of social protection and taxation in each country separately. The parameters of the model should be adjusted so that it will not produce excessive changes in people’s incomes.

The greatest problems of the OECD’s microsimulation are that the income taxation is not changed to correspond with the BI model, and that the existing systems are demolished by the same means everywhere without examining the structures of social protection in each country separately. Due to this, BI seems to have unpredictable effects to income distribution.

The income distribution produced by a BI model can be influenced by adjusting the parameters of taxation and social security. In his presentation at the Kela seminar, Herwig Immervoll mentioned that tax reforms should be discussed in parallel with BI. Indirect taxes, such as environmental or value added taxes, have often been proposed as a complementary source for financing a BI scheme, combined with income taxation.

However, the OECD report does not mention these alternatives, and the premise seems to be that taxation in any form should not be increased.

In Finland, as well as in many other countries, some organisations and individuals have launched models of BI adjusted to the local context. Their objective has often (yet not always) been to not radically alter the income distribution or cause reductions in people’s after-tax incomes, especially in the lowest income groups. Microsimulation has been employed at least in the models of partial BI by the Green Party and the Left Alliance, and in the preliminary study for the national BI trial conducted by Kela.

In these models, BI is linked with a reform in income taxation that is designed so that radical changes in after-tax incomes will not occur in any income group. The aim is also to make the models budget neutral, that is, to cover the costs of BI by reforms in taxation and replacing the existing benefit systems. In these models, the old system will be abolished only in those parts where the level of benefits is lower than the BI.

One of the problems with the BI trial currently underway is that due to time constraints, the taxation reform proposed by the research team that designed the experiment was not included.

Will Finland implement a BI?

Though there exist BI models in Finland that would technically allow implementation of a BI system without radical changes in income distribution or public financing, the road of BI will probably be rocky even here.

The preparations of the BI experiment scheme revealed many institutional challenges in implementation of a BI model. The greatest obstacles for a BI are, however, ideological.

In Finland, BI has gained interest especially as a possibility to improve the incentives for paid work. The possibility to combine wages with social benefits more smoothly than today is an issue that no party opposes. Yet, many still find it morally wrong to give people money with no obligations. The opponents of BI fear that the “free money” would reduce people’s willingness to work and give a moral legitimacy to not apply for jobs.

If the only, or at least the most important function of BI is to improve work incentives, the great promises of BI may not be fulfilled after all. The preliminary studies for the BI trial revealed that BI models do not always unambiguously remove incentive traps, if parts of the old social security stay intact.

However, it seems likely that in Finland, as well as in other industrialised countries, the social security will be reformed in a direction that may contain some elements of BI, but not necessarily a ‘pure’ BI model.

If the political thinking emphasizing the labour supply and austerity in public economy prevail, the prospects for more generous BI models seem to be low. In the framework of current economic policies, the implementation of a BI would most probably mean at least demolishing large parts or other forms of social security.

BI as a social dividend?

The OECD report (p. 8) ends up recommending some kind of ’partial’ alternative of a BI model. One option mentioned is a possibility to introduce BI as a separate system from the existing social protection, whose function would be to share the benefits of globalisation and technological progress more equally.

This idea of ‘social dividend’ has often appeared in BI discussions. The state of Alaska is already giving an annual share of the permanent fund based on oil revenues to each citizen as a social dividend. There is similar thinking linked also to the idea of “helicopter money”, originally introduced by Milton Friedman, a cash transfer paid by the central bank to people’s accounts to stimulate consumer demand in economic downturns.

Considering BI as a social dividend would locate it in a new frame, where its function would not be to fix the problems of social security systems, but to distribute purchasing power also to those who lose their jobs or end up in low paid precarious jobs in the labour market turmoil caused by digitalization.

If BI were paid on top of other social benefits, its level could even be lower, or for instance connected to macro economy indicators. In that case, it could also be used to stimulate economies in downturns.

 

Johanna Perkiö
M.Soc.Sc., Doctoral Candidate
University of Tampere
email: johanna.perkio(at)uta.fi

 

Original article:

Johanna Perkiö, “The OECD and the problems of basic income“, Kela, June 30, 2017.