by Stanislas Jourdan | Jan 7, 2016 | News
A report written by a government agency dedicated to Digital Affairs for the French Ministry of Labor recommends experimenting with an unconditional basic income to cope with the fundamental transformations of work in the context of the growing digital economy.
How do automation and digitalization of activities impact working conditions? This was one of the key questions the National Digital Council was tasked to address in a report sponsored by the French Ministry of Labor and Social Dialogue. The Digital Council is a public agency created in 2012 to advise the French government on matters related to the digital world.
The report was released earlier this week – see the full report here. It makes an important case for basic income, and calls for a thorough appraisal of “the various proposals and experiments around basic income”. Basic income is part of the twenty main recommendations contained in the report.
Minister of Labour is sceptical but does not reject the proposal
The Minister of Labor Myriam El Khomri was not so enthusiastic but did not close the door on the idea: “I do not want to dismiss it, but at first sight I am not sure about its cost,” she said.
According to the report, the existing social protection model has been pushed to its limits, and the labor market has failed to reward many different forms of activities, and thus provide an income to everyone.
These phenomena are not new, but technology is accelerating the trends. Automation is displacing jobs and killing aggregate demand in the economy. The development of invisible forms of production on the internet – what is commonly referred to as ‘digital labor’ – is leading to new forms of production that do not remunerate people for their work. As a consequence, there is a need for new kinds of redistribution systems, such as a basic income.
The report reviews many common arguments for introducing an unconditional and universal basic income, and quickly sketches different proposals on how to implement it. These include a reform of the tax-benefit system, various forms of money creation (such as quantitative easing for people), and raising corporate taxes to remunerate invisible and unpaid labor.
Although the report does not express a preference for a specific proposal, it calls for two concrete steps:
- A feasibility study on basic income to be conducted by a team of economists, statisticians, fiscal and legal experts. The aim would be to develop a simulation tool of the transition to a basic income, and carry out an impact assessment of each proposal in the public debate.
- Local basic income experiments that complement the feasibility study and consider various scenarios.
“We cannot ignore this movement.”
“This is the first time a report of a public agency discusses a basic income linked to digital transformations” Benoit Thieulin, one of the report authors, said. “Governments need to seize the opportunity and help with the reform of our solidarity and redistribution models. Experiments are conducted in several countries, we cannot ignore this movement.”
Basic income was only the last of 20 recommendations, yet it made most of the headlines in French media.
“For a long time I have also been sceptical about basic income … I wasn’t too convinced,” Thieulin explained in an interview. “But today this idea puts everything into question. Especially now that the welfare system is cracking everywhere. Half of the people don’t claim their benefits! Administration costs are enormous! … At some point one has to ask if it would not be simpler, less expensive and more beneficial for all if we had a universal safety net.”
The French Movement for Basic Income, a BIEN affiliate, was among the organisations consulted during the writing process and welcomed the release of the report. “It is a timely report that opens the debate in the best possible terms,” International Coordinator Nicole Teke said to BIEN.
The French government has commissioned another report to review all social benefits, with special attention to be paid to the existing minimum income scheme. The French Movement for Basic Income announced that it will submit proposals to pave the way for the introduction of a basic income.
by Nicole Teke | Dec 20, 2015 | News
As part of an electoral alliance, the Socialists and the Greens in the French region of Aquitaine committed to carry out a pilot with an unconditional minimum income, as a step in the direction of a basic income. They won the elections, now it is time to deliver.
French regional elections held this month received wide coverage by the international press because of the dramatic rise of the far right party Front National. Meanwhile, an interesting development the basic income movement went largely unnoticed. In the south-western region of Aquitaine, one of thirteen mainland French regions, major strides towards a basic income have been made.
Five months ago, the Aquitaine Regional Council – the elected regional parliament – adopted a motion to conduct pilots to test the implementation of an “unconditional RSA”. The Revenu de Solidarité Active (Active Solidarity Income), or RSA, is the means-tested national minimum income. The unconditional RSA would entail scrapping the work requirement, and would make the grant less discriminatory and less bureaucratic. A recent study shows that the RSA uptake is only slightly over half of the eligible beneficiaries.
While this is not an unconditional basic income, it is a major move in that direction. The motion notes that it is a “first step towards a universal basic income” (read the French text here). At the time, the Council had a left-wing majority, headed by the Socialist Party and including the Greens. The initiator of the motion, Green councilor Martine Alcorta, suggested that the pilots should be based on a proposal drafted last March by the French Movement for Basic Income, an affiliate of BIEN.
However, the fate of the basic income pilots depended on the results of the regional elections. Basic income supporters feared that if the left-wing coalition lost the region, the whole project might have been compromised. In the second round of elections on December 13, the Greens and the Socialists merged their lists to beat the right-wing coalition led by the Republicans, and the National Front, running separately. Just a few days before, the two left-wing parties agreed to renew their commitment to unconditional RSA pilots.
This was not an easy task, as the Socialist Alain Rousset, top candidate in the electoral roll and outgoing president of the Regional Council, had been strongly opposed to the pilots. The inclusion of the unconditional RSA experiment in the program means that measures that are closer to a basic income are gaining ground among other political parties. The Greens and the young anti-austerity formation New Deal already support a universal basic income.
Now that the left alliance won the elections, they are to go ahead with the pilots. Martine Alcorta was re-elected in the Regional Council, and the Greens are entitled to two vice-presidents as part of the deal with the Socialists.
If the newly elected regional councilors put their words into actions, a feasibility study will be conducted to come up with different designs for local pilots. The French Movement for a Basic Income has already offered its services to help the Aquitaine Regional Council with the project.
French Movement for a Basic Income, “PS et EELV s’entendent sur le revenu de base en Aquitaine-Limousin-Poitou-Charentes [Socialists and Greens in Aquitaine strike a deal on basic income],” December 12, 2015.
Stanislas Jourdan, “French Regional Council of Aquitaine to assess feasibility of basic income pilots,” Basic Income News, July 9, 2015.
by Karl Widerquist | Dec 6, 2015 | News
The 150,000 residents of the Brazilian city of Maricá will receive a monthly basic income of about 2.7 dollars, paid in local currency.
On December 3, Thursday, 2015, at the Faculty of Economics and Administration of the University of São Paulo, FEA-USP, the Mayor Washington Quaquá (PT), of the Municipality of Maricá, State of Rio de Janeiro, announced that from December 2015 on, all 150 thousand inhabitants of Maricá, as long as they have been living there for a year or more, will start to receive an Unconditional Citizens Basic Income of ten Mumbucas per month. Mumbuca is a social money intended to stimulate all kinds of solidarity economy forms that already exist in Maricá, such as the cooperative of the Landless Workers Movement (MST) that sell their goods to a Supermarket that accept payments in mumbucas from their clients. All small stores in Maricá accept payment in mumbucas. One Mumbuca is equivalent to R$ 1.00. Therefore, 10 mumbucas is a modest amount equivalent to US$ 2.70 per month, but it is a courageous start. There is a perspective that this amount might increase gradually with the progress of the city. Maricá has one important source of revenue since it receives part of the oil royalties that are explored in front of its sea coast. Mayor Quaquá also informed that he has introduced a free public system of transportation to the whole population of Maricá.
Eduardo Suplicy
Professor Paul Singer, National Secretary of Solidarity Economy, praised the announcement at this conference meeting. He explained that while the Bolsa Família Program is an efficient tool to eradicate extreme poverty, the Unconditional Citizens Basic Income is a Human Right equal for all that will always be there. Mayor Quaquá explained that 14 thousand families, one fourth of the population of Maricá nowadays receive the Bolsa Mumbuca or 85 mumbucas per month. If a family has six persons, it will receive 60 mumbucas more per month, summing up to 145. Professors David and Sabetai Calderoni explained that a new Factory of Recycled Material will be inaugurated in Maricá. The city produces 15 tons per day of garbage. The mill that will recycle the garbage will be a new source of revenue that may contribute to increase the Basic Income. David Calderoni will be the Rector of the Democratic Inventions University Darcy Ribeiro. It will help to organize next June in Maricá the Festival of Utopia. Professors Leda Paulani and Eduardo Suplicy, Honorary President of BIEN exalted the new initiative that may be followed by other municipalities, such as Santo Antonio do Pinhal and Apiaí that have approved laws to institute gradually the Citizens Basic Income.
Eduardo Matarazzo Suplicy emphasized that the Maricá initiative may encourage President Dilma Rousseff to form a Working Group to study the steps in the direction of a Citizens Basic Income to all 204 million inhabitants of Brazil, including the foreigners living in the country for a year or more, as it is written in the Law 10.835/2004, approved by all parties in the Brazilian Congress and sanctioned by President Luiz Inácio Lula da Silva in February 8, 2004. Suplicy has asked for an audience to the President to talk about this subject. He has proposed a list of 70 names among the best scholars on how to eradicate poverty and how to build a just and civilized society, to be members of this study group. Those economists, philosophers and social scientists that attended the XV International Congress of BIEN in Montreal in June 2014, signed a letter to President Dilma Rousseff saying that they are ready to contribute for this purpose. The President told Suplicy that she will receive him to talk about this as soon as these difficult times have passed away.
Credit picture CC Ana Guzzo
by Toru Yamamori | Sep 20, 2015 | News
Marcus Brancaglione, president of the Institute for the deinstitutionalization of life: ReCivitas, sends his solidarity message to ‘the Basic Income Week’.
Brancaglione, with Bruna Augusto, initiated and has been working hard for a basic income pilot project in a small village in Brazil since 2008.
by Karl Widerquist | Sep 1, 2015 | News, The Indepentarian
A recent poll asking Alaskans how to deal with the state’s increasingly severe budget deficit found that trimming the Permanent Fund Dividend or PFD (also know as “the Alaska Dividend”) was the most popular solution. The poll also found that a second strategy for trimming the dividend was third in popularity.
-Alaska Dispatch News
The Alaska dividend is the closest program to a basic income in the world today. Each year it pays out a dividend, usually between $1000 and $2000 per year, financed out of the returns from the Alaska Permanent Fund or APF—a savings portfolio of more than $50 billion accumulated from past state oil revenue. Its enormous popularity earned it the nickname of “the third rail of Alaskan politics,” meaning that any politician who touched it died.
This poll might be an indication that the dividend is losing that status in the face of Alaska’s financial situation, which is deteriorating because of the state’s dependence on oil revenues. The state has no sales or income tax. The vast majority of its revenue comes from taxes, fees, and royalties on the state’s oil exports. Not only have oil prices declined by more than 50 percent since 2014, but the amount of oil exported from Alaska has been declining significantly for years. The state is quickly running through the savings it built up in good years, and it is faced with the situation in which it must either make deep cuts in spending or seek new revenue.
Asking Alaskans to respond to several strategies of dealing with this issue, the Rasmuson Foundation found the following:
- 66% of Alaskans agreed with “Using a portion of excess earning from the Permanent Fund to fund public services and programs while protecting the dividend program.” 27% opposed.
- 57% agreed with “Introducing a statewide sales tax.” 41% opposed.
- 55% agreed with “Putting a cap on the yearly amount of Permanent Fund dividends.” 41% opposed.
- 54% agreed with “Reducing oil development tax credits offered by the state.” 32% opposed.
- 41% agreed with “Introducing a state personal income tax.” 55% opposed.
- 16% agreed with “Making deep funding cuts to essential public services like schools, police, health care, and roads.” 16% opposed.
The first option might not sound like a cut in the dividend, but it is. There are no “excess earnings” in the PDF. Every dollar the PDF receives in returns either goes to spending or to generating more returns and higher dividends in all the years to come. Any strategy that defines some returns as “excess” and diverts those to other spending, necessarily means lower dividends in the future. This opinion protects the existence of the dividend, but it does not protect its future growth or even its current level. If any significant amount is taken in “excess earnings,” it will slow the growth of the dividend in the future, and it might even create negative future growth in the dividend.
The poll did not ask people whether they would support eliminating the dividend entirely, but over time either of the two strategies suggested would lead to significantly smaller dividends than what would otherwise occur.
The poll also did not ask about spending the principal of the PFD, which is constitutionally protected. The legislature would need a constitutional amendment to spend down the $52 billion fund, but with a simple majority vote, it could cancel the dividend and use that money to finance state spending. Before the recent fiscal crisis, such a strategy was politically untenable, but the poll shows that movement in that direction might have become politically tenable.
The poll results suggest that Alaskans might view the dividend as a luxury to be distributed as long as the state is booming. If so, it is very different than how most basic income supporters view it: as an essential tool to promote social justice and an important way to show solidarity with economically disadvantaged individuals. Whether this or any other view of the dividend is strong enough to project it during Alaska’s fiscal crisis remains to be seen.
For more information see:
Alex DeMarban, “Poll: Alaskans prefer new revenue over deep cuts, including tapping Permanent Fund.” Alaska Dispatch News, August 13, 2015.
The Rasmuson Foundation, “Alaska Attitude Survey On The State Fiscal Climate.” The Rasmuson Foundation, Conducted July 13 – 21, 2015
Representative Wes Keller, “My Turn: Don’t be snookered, ther’es no ‘free ride.’” The Juneau Empire. August 20, 2015
Rep Les Gara, “My Turn: Open discussion needed on oil taxation.” The Juneau Empire. August 19, 2015.
NOTE: The paragraph beginning, “The first option might not sound like a cut…” was added after this article was first posted in response to questions from readers.
