by Dave Clegg | Oct 19, 2017 | News
Related to Ontario’s Basic Income pilot project there will be a lively 2 day panel discussion Oct 19, 2017, 7-9 pm followed by a Q&A at University of St. Michael’s College, in the COOP section of Brennan Hall, 81 St. Mary’s street, Toronto Ontario. Then Oct 20, 2017 also in the COOP section from 9 am to 5 pm,, there will be a Multi-Faith perspective on Basic Income entitled the Case for Solidarity examining employment, faith and social justice as related to a Basic Income. Both are free and registrations can be found at https://stmikes.utoronto.ca/event/the-case-for-solidarity-multi-faith-perspectives-on-basic-income/ Or
https://www.tst.edu/about/events/st-michaels-college-case-solidarity-multi-faith-perspectives-basic-income
by Florie Barnhoorn | Oct 4, 2017 | News
Introduction
Because of the publication of Thomas Straubhaar’s latest book Radikal gerecht – Wie das bedingungslose Grundeinkommen den Sozialstaat revolutioniert (Radically just – How Universal Basic Income Can Revolutionize the Welfare State) in February 2017 by the Körber Foundation, several articles in the German media appeared reflecting on the ideas outlined in the book. This gives me the opportunity to share with Basic Income News readers some of professor Straubhaar’s main ideas about Germany’s current social system, the modern challenges that in his view might jeopardize the old social fabric and his proposed response: a radical tax reform consisting of both the introduction of an unconditional basic income and a fifty percent tax rate on all value creation. The articles that I have used most, translated, summarized and from which I cite, are written down in the first footnote[1], see below at the end of the piece.
But first, I like to present two professionals whose stories will illustrate with what problems average Germans may have to deal with in today’s daily life under the current social welfare system. After that, I will depict the historic development of Germany’s social insurance system by introducing the social politics of its two founders.
Background: Germany worries that current social system shows more and more cracks
Baukje Dobberstein is a family doctor and psychotherapist in Hanover, Germany. Everyday she is confronted with the negative consequences of poor working conditions and the social security system in her country. She says: “Our work and social system makes people sick. Not only those who have lost their jobs, but also those who have accepted sickening work conditions, because they are afraid of a repressive social insurance system. Many of us experience stress. They fear existence insecurity, are afraid of terror, of strangers, of change,” and she adds, “Stress in itself is not a disease, but too much stress can make a person ill.” That is why she fights for her dream: an unconditional basic income.
Mayor Werner Wölfle (The Greens) also expressed his concerns. In an interview with the Stuttgarter Nachrichten, a local newspaper, he said, “Yes, also in this rich city, the capital of the German state of Baden-Württemberg, Stuttgart, more than 60.000 or over ten percent of all inhabitants depends on some form of social benefits.” The most vulnerable groups to poverty are women, singles and (older) migrants. Old-age poverty is on the rise too.[2] These figures have increased steadily. In 2004, 2787 low-income earners over age 65 received additional social assistance (or Grundsicherung im Alter), which counted for nearly three percent in this age group. In 2013, it was 4536, which is already more than four percent. For the future, Wölfle fears significantly higher levels. Elderly people with broken employment biographies, long part-time working periods, low-income earners and the effects of the Hartz IV regulation reforms, that is the downsizing of employment conditions, will become much more apparent in the coming years.
The historical context of the social insurance system in Germany
This country’s social policy, largely based on work, is showing serious cracks, warns Professor Straubhaar. It was Otto von Bismarck, the first chancellor of the united German states, who created the world’s oldest welfare state in the 1880s. His main goal was to gain working class support that might otherwise go to his socialist enemies. Bismarck worked closely with the large industrial sector and aimed to stimulate economic growth by giving workers greater security. In 1884 he declared
The real grievance of the worker is the insecurity of his existence; he is not sure that he will always have work, he is not sure that he will always be healthy, and he foresees that he will one day be old and unfit to work. If he falls into poverty, even if only through a prolonged illness, he is then completely helpless, left to his own devices, and society does not currently recognize any real obligation towards him beyond the usual help for the poor, even if he has been working all the time ever so faithfully and diligently. The usual help for the poor, however, leaves a lot to be desired, especially in large cities, where it is very much worse than in the country.
In the next years Bismarck implemented his social legislation: sickness, accident, old age and disability insurance, in that order, although he believed that welfare programs “with too much socialist aspects” would force workers and employers to reduce work and production and thus would harm the economy. The introduction of these laws, and the accompanying social benefits helped to reduce the emigration of young Germans to the United States.
Germany’s social system was further developed during its ‘Wirtschafstwunder’ (economic miracle), the post World War II period of rapid industrial growth and low inflation. Ludwig Erhard, Minister of Economic Affairs in Adenauer’s Cabinet, was the architect of these glorious economic days. He was able to combine market forces with a well functioning system of social security benefits in order to achieve “Prosperity for All”. The system is financed by contributions paid by employers and employees, each contributing for fifty percent. As a consequence, coverage is mostly confined to the formal workforce consisting mainly of workers depending on wages.
Modern challenges: globalization, digitization and individualization
“It is a time that no longer exists,” says Thomas Straubhaar, “Recent phenomena like globalization, digitization and individualization have made an anachronism of this social policy.” He continues: “A social security system, which is unilaterally based on contributions from wage income, stems from the time of industrialization and the unbroken lifelong work careers, when the salary of the husband was the most important source of a family income. Individualization has questioned the traditional role models and the solidarity within families. Digitization will lead to vending machines and robots will displace people from production. Not only standardized simple work on the assembly line, supermarket checkout or office will disappear. Even in more qualified areas of activity, such as locomotive drivers, insurance brokers or accountants, employees will become increasingly superfluous. He cites forecasts, according to which digitization could lead to the withdrawal of almost 50 percent of all jobs in the long term. Nonetheless, he welcomes the new mega trends, which will change everyday life, social relationships and the working world at a rapid pace, fundamentally and in every respect. “But”, he stresses, “Only as long as all people benefit”.
Professor Straubhaar considers digitization as a blessing, where people had previously to perform hazardous, dirty or risky jobs – for instance, in civil engineering, roofing and tunnels, slaughterhouses and laboratories, as well as control and watch services. In the future, he foresees construction robots that will drag bricks and windows, industrial robots that will use new construction and reusable materials. Intelligent machines and self-controlled cameras will control and react, and three-dimensional police robots will ensure internal security. According to him, everything that is possible must be done so that people can be physically and mentally healthy and unharmed during work and not become ill, burned-out or even permanently damaged. “People are economically too valuable to make them do dangerous, risky or damaging work, and then drag them through the welfare state over decades, some of them until they die,” he says, “This is a privatization of labor income and a socialization of the follow-up costs. And this can not be economically efficient.”
In the age of digitization and automation, robots and artificial intelligence, it is uninspired to maintain a system of exploitation, that forces people to do work that nobody wants to do. It is more appropriate to let robots, computers and machines do the dangerous, dirty, harmful and unworthy jobs for us and to train people in the freed up time for better and less strenuous work. We need a system that is able to ensure the participation of all, that can provide equality of opportunity for all, writes Straubhaar in his recent published book Radikal gerecht.
“Furthermore”, he told the reporter of Technology Review, “Life expectancy has risen sharply, which means that the start of a pension in the middle of 60 can hardly be financed in the long term. During the introduction of Bismarck’s pension insurance in 1889, the life expectancy for men was 36 years and for women 39 years, today it is 78 years for men and 83 years for women.”
A radical response: introduction of an unconditional basic income
No wonder that against this background the old idea of a basic income is being given new support all over the world. This is especially true for Germany, where a representative survey found early this year, that a majority of 75 percent is in favor of the introduction of an unconditional basic income.
This summer, during an Economic Forum of the CDU (Christian Democratic Union of Germany), Straubhaar advocated a radical reorganization of the welfare state by implementing a universal basic income. “Our current system cannot be reformed. This is the only way to achieve prosperity for all again”.
In Straubhaar’s view, the introduction of a basic income is nothing less than a radical tax reform. “Money for all means an income at the level of the subsistence minimum from the state without compensation such as an obligation to accept jobs or putting someone through activating measures. It is a fundamental change of perspective, from what previously has gone wrong. No more financing over taxes from work income, no more working worlds, family pictures and life-cycles, which no longer exist and do not correspond to daily life in the future. Towards a guaranteed participation and an empowerment of all. No other model takes into account both the effects of digitization and of individualization. In the social state of the 21st century, interrupted careers due to alternate periods of retraining, part time work, job change, informal care, volunteerism and so on, will be the new normal.”
How will Germany pay for a basic income?
“The future requires a ‘blind’ social state”, writes Thomas Straubhaar in Welt und N24. “Social schemes must treat all income equally, which means wages, interest, distributed profits, dividends, royalties, rental income, transaction and speculative gains, and should implement the same tax rate upon them, rather than preferring or discriminating against the other. Whether humans, robots or machines are at work, there are many good reasons, to tax every form of value creation at the source of their origins with a uniform tax rate for the financing of state tasks. All types of income should be charged with the same tax rate.”
The tax reform of the future will bundle all social policy measures into one single instrument, the unconditionally paid basic income. The concrete elaboration – that is to say the politically determined level of the subsistence minimum, which corresponds to the amount of the basic income – should provide sufficient scope for specific adaptations to new challenges in the future which are still unknown.
According to Straubhaar, the funding of an unconditional basic income follows a simple logic. It puts an end to all social insurance and social benefit payments financed by taxes and charges from the income of work. Instead, it consolidates as an universal payment all personal financial transfers and follows the concept of a negative income tax. This means that all Germans will receive money from the state, which corresponds to an outflow from the state’s perspective and thus the opposite of a tax inflow. If the whole welfare state should be replaced by an unconditional basic income, writes Straubhaar, this would suffice to pay everybody a monthly basic income of 925 euros.
More justice in society
As a result, according to Straubhaar, this fundamental tax reform will lead to more justice and efficiency to society and will create more support, security and freedom for the individual. People will be “relieved of the worries of economic survival”. With a guaranteed basic income, “it will not be economically necessary to force all people into labor for an ever-longer life”.
The basic income will guarantee a minimum subsistence level for all, from the infant to the old, for women and men, from the cradle to the grave through a financial payment by the state. No more, no less. If someone desires more than his or her basic income, this person can simply generate additional income. A smaller number of workers will have the chance to earn more than before due to productivity gains achieved through intelligent machines. However, all who earn income, will pay income taxes – at the source, from the first euro – in accordance with this principle: Whoever earns more, pays more taxes than those who earn less, emphasizes Thomas Straubhaar. At the end of the day, it will turn out that the majority of the population still pays positive taxes from the perspective of the state, so that in order to get a balance at the state’s level, the paid basic incomes are compensated by the tax revenues.
It is important, stresses Straubhaar once more, that the German government will tax capital income just as much as working income. This also applies to the profits, generated by robots. As soon as they are distributed to the owners of the robots, that is to say the shareholders, the same tax rate as for wages is applied to the source.
In Berlin, I saw a vivid culture around bottles: people drink beer or another (alcoholic) drink from a bottle and leave it behind for people whose job it has become to collect these empty bottles in order to cash the deposit money.
In an interview with Brand Eins, Straubhaar goes into more detail. When asked, who will pay for this unconditional basic income, he answered: “We all do by means of a taxation on value creation. When a company pays out money to one of the production factors, either to labor in the form of wages or to capital, as dividend or profits, a tax becomes due, and in both cases the same tax rate will be applied. If the profit remains in the company, thus continues to be part of the production process, no tax is payable. Only when money flows from the process to people – and not to legal entities – this money will be taxed.”
According to Straubhaar, there is nowadays in Germany a net added value of about 2,5 trillion euros and government expenditures at the federal level, at the state’s level, at municipalities and social insurance funds of a total of around 1,3 trillion euros per year. With a value-added tax of 50 percent, we would therefore come to an equilibrium, only taxes will be borne equally by labor and capital. The state does not need extra money to finance a basic income. In 2015 the social budget stood at 888 billion euros. This amount of money is enough to pay every German a monthly basic income of about 1000 euros. At present, we already pay nearly 50 percent for deductions when you sum up taxes and social security contributions in this country. It is only higher from a work income of 240,000 euros. According to statistics, this is not even one percent of the taxpayers. In the future welfare state, you don’t need to pay anymore for social insurances, because you have your basic income, you only pay for your health insurance. Everyone contributes financially to the basic income: self-employed persons, freelancers, civil servants, public representatives and the recipients of capital gains.
Asked if such a major change is politically feasible, professor Straubhaar answers: “If you really want to introduce big changes, you need a large group of winners who also recognize their advantages and are willing to fight for it. This is why both sides are of equal importance for the acceptance of a basic income: the expenditure side, that is, the securing of a subsistence minimum – and the income side, that is the taxation of value creation.”
What does it mean a tax rate of 50 percent?
Thomas Straubhaar continues enthusiastically by giving some examples to the interviewers of Brand Eins. Supposing a professor with an annual salary of 120,000 euros, from which she – like all others – must pay 50 percent for taxes. At the same time, like all the others, she receives a basic income of 12,000 euros, which means she pays a net tax of 48,000 euros, equivalent to a rate of 40%. She only has to buy her health insurance, there are no further social expenses. The financial picture of a branch manager with 60,000 euros per year looks as follows: 30,000 euros for taxes plus 12,000 euros of his basic income results in a net tax of 18,000 euros or 30%. At Grundeinkommensrechner.de everyone can calculate what such a basic income means for him or her. Regarding low-wage earners, for instance a cleaning aid, who earns 24,000 euros a year, in this tax system he or she has to pay 12,000, and at the same time he or she receives 12,000 euros as basic income. The net tax rate is therefore zero, and this person also only has to insure his or her health.
Straubhaar goes on: “Anyone who today receives unemployment benefits (Arbeitslosengeld II or Hartz-IV) and who earns something, has a marginal tax rate of 80 to 90 percent, because with each earned euro the social benefit payments diminish. With this proposal, this person will only pay the obligatory 50 percent. He also does not have to consume his entire fortune before he receives any payment, he does not have to justify himself and is not harassed anymore by anyone. And with this proposal, a policy instrument that bundles both a guaranteed basic income and the added value tax, it is not necessary to fix a general retirement age, which is anachronistic in a digital society: everyone works as long as he or she wants, and deducts 50 percent of the earnings.”
Some problems might occur from Straubhaar’s model
In her column at Piqd, entitled The welfare state of the future is called ‘basic income’, Antje Schrupp emphasizes the importance of a discussion about the future of the welfare state and the place of a basic income therein. That said, she also has doubts about the model of a basic income, as described by Thomas Straubhaar, in his interview with Brand Eins.
The model is a good basis, she writes, but she foresees problems in the elaboration. For example, in Germany one cannot get around with 1000 euros per month of which also the health insurance has to be paid. This is especially true for the chronically ill and elderly, who cannot afford 1000 euros per month for both their health care costs and costs of living. Furthermore, medical and nursing care of the sick and aging adults is too valuable to leave it to the nonprofessional hands of family and friends.
Meanwhile, Dr. Dobberstein, who is also a blogger and activist for an unconditional basic income, has become a candidate for Lower Saxony in the newly formed political party Bündnis Grundeinkommen (Basic Income League), that will take part in the Bundestag (federal) elections next September 24 (2017).[3]
Further reading or listening:
Book Review: Basic Income as a ‘realistic revolution of the welfare state’ by Albert Jörimann.
Radikal gerecht – Wie das bedingungslose Grundeinkommen den Sozialstaat revolutioniert (Radically just – How Universal Basic Income Can Revolutionize the Welfare State) by Thomas Straubhaar, Edition Körber-Stiftung, 2017 (in German).
Radically Fair: Lecture with Thomas Straubhaar, New York, March 2017 (English)
Thanks to Kate McFarland and Dave Clegg for reviewing this article.
Credit Photos: Wikimedia Commons (Hamburg), Wikipedia, Körber Foundation, Florie Barnhoorn (Berlijn).
1. Bedingungsloses Grundeinkommen: Der langsame Weg von der Utopie zur Realität! (Unconditional basic income: the slow path from utopia to reality!), by Thomas Straubhaar, 2013.
Warum wir ein bedingungsloses Grundeinkommen brauchen (Why we need an unconditional basic income), by Thomas Straubhaar, Welt und N24, May 2017.
Das Grundeinkommen ist nichts anderes als eine Steuerreform (Basic income is nothing but a tax reform) by Thomas Straubhaar, Zeit Online, February 2017.
Grundeinkommen ist eine große Steuerreform (Basic income is a large tax reform) by Sascha Mattke, Technology Reform, March 2017.
Straubhaar: Heutige Sozialstaat-Ausgaben würden für 925 Euro Grundeinkommen reichen (Straubhaar: Today’s social-state expenditure would suffice for 925 euro basic income) by Sascha Mattke, Heise Online, March 2017.
Umdenken bei der CDU? Ökonom Straubhaar plädiert für bedingungsloses Grundeinkommen (Re-thinking at the CDU? Economist Straubhaar pleads for unconditional basic income), Pfefferminzia.de by Juliana Demski, July 2017.
Wie überlebt der Sozialstaat die Digitalisierung? (How will the welfare state survive the digitalization?) interview with Thomas Straubhaar by Gabriele Fischer and Wolf Lotter, Brand Eins, May 2017.
Der Sozialstaat der Zukunft heißt “Grundeinkommen” (The welfare state of the future is called “basic income”), by Antje Schrupp, Piqd, July 2017.↩
2. The website Altersarmut – Armut im Alter has asked attention for the increasing poverty among the elderly in Germany. An important cause is the depreciation of the pensions. According to the Deutsche Rentenversicherung (German Pension Insurance), the standard pension in the Western states of the country will decrease as follows:
2010: 1083 euros
2020: 1069 euros
2030: 1024 euros
2040: 988 euros
In the former Eastern Germany the situation is even worse. When asked, “Are you afraid to be able to keep your living standards after your retirement or, if you are already retired, in the next few years?” 72 percent of respondents answered “yes”.↩
3. Sadly, Bündnis Grundeinkommen only got 0,2 percent of the votes on Sunday, September 24, 2017. This means that nearly 100.000 persons voted for the one-theme-party. However, it is not enough for a seat in Parliament.↩
by Kate McFarland | Sep 1, 2017 | Research
Teppo Eskelinen and Johanna Perkiö have published “Micro-investment perspective and the potential of the universal basic income” in Development Policy Review (June 2017).
Eskelinen and Perkiö analyze basic income as a tool to promote micro-investments by poor individuals and households, hypothesizing that a basic income would impart to such households a “greater confidence to undertake more risky activities, knowing they will have a minimum income to fall back on.”
As they explain in the abstract, the authors “aim to estimate potential impacts of the BI by synthesising existing knowledge. This estimation will not be quantitative, but rather show likely outcomes of a BI scheme. We will complement existing knowledge by exploring cognate cash transfer policies and other experiences that bear similarity to the BI.”
As a core part of their analysis, the authors examine the pilot studies conducted in the Namibian village of Otjivero-Omitara (2008 to 2009) and the Indian state of Madhya Pradesh (2011 to 2013), looking especially at the effects on “labour, behavioural impacts, psychological impacts, and investment in human capital.” Regarding psychological impacts, they point out that, in the Madhya Pradesh experiment, “households receiving cash grants were three times more likely to start a new business or production activity than control group households,” which appears to affirm their conjecture that “the availability of money combined with a sense of security is what eventually determines the occurrence of micro-investment.” Regarding behavior, they note a “recurring observation” that part of recipients’ additional income was “invested in income-generating activities.”
Eskelinen is a philosopher and social scientist who has published on political theory, political economy, global justice, and development theory. He is senior lecturer at University of Jyväskylä.
Perkiö is a doctoral candidate in the social sciences at the University of Tampere, writing her dissertation on the history of the basic income debate in Finland (see her November 2016 presentation for Kela). Many of her previous articles and blog posts on basic income available online, including the Transform! Network discussion paper “Basic Income Proposals in Finland, Germany and Spain,” the International Solidarity Work report “Universal Basic Income – A New Tool for Development Policy?,” and a response to the OECD’s recent critical report on basic income, published on Kela’s blog.
Reviewed by Russell Ingram
Photo: Store in Madhya Pradesh, CC BY 2.0 Brian Gratwicke
by Sandro Gobetti | Jun 29, 2017 | News
Naples. Credit to: Numeri Pari
Many associations, collectives, social movements, students and activists have joined the “Rete dei Numeri Pari” (Even Numbers Network – to which BIN Italia (Italian Basic Income Network) is also a part of), promoting a social campaign for the “income of dignity”. There will be 1000 squares across the country hosting public initiatives, debates and meetings where people will talk about the income of dignity proposal (a sort of guaranteed minimum income).
From the appeal: 1000 squares for the income of dignity
“Poverty, precariousness and inequalities are the reality of social suffering of millions of people in Europe and Italy, who pay the burden of a crisis they did not produce. All these people try to evade blame and responsibility, but we have not forgotten that it is the result of precise political and social choices. […] Over the years, we have witnessed the collapse of social policies: cuts in health, public transport, and social cooperation. We witnessed the rising cost of education and saw the right to study disappear from government agendas. Working conditions have worsened: the generations are divided between those who struggle to find a job and those who work in unacceptable conditions. This is evidenced by statistics on poverty, which now affects one Italian on three, while five million people are in absolute poverty.
We cannot wait anymore. […] Against growing social inequalities, it is necessary to affirm a new idea of society and solidarity.
It is necessary to break the chains of solitude imposed by this economic system. We must guarantee the fundamental right to a life worth living. The introduction of a guaranteed minimum income and the provision of quality and universal public services are the bases for a new system of social welfare and social security to protect people from poverty, mafia and work without rights. […] Despite the mobilization of so many, many of whom have in the last few years created a proposal for “guaranteed minimum income”, the government has instead chosen to promote “Inclusion Income”, a totally unsatisfactory proposal for the number of beneficiaries and resources invested, which does not even respond to the needs of a third of the population in relative poverty. […] Government and parliamentary measures have introduced an unconstitutional form of “selective universalism” […]
From the 16th of June, the “Rete dei Numeri Pari” will be in the squares […] We will act alongside women who want to get rid of a model of patriarchal and masked society. We will act alongside migrants to build together the right to a true and friendly citizenship. We will be in the streets with students for free education. We will mobilize with the impoverished labor force: employees, intermittent, precarious, and all workers who suffer due to the burden of the labor policies of these recent years.
We will be in over one thousand squares to say that an alternative society is emerging from the bottom and that we must mobilize together.”
More information at:
[in Italian]
Numeri Pari, “Appello: 1000 piazze per il reddito di dignità [Call: a thousand squares for a dignity income]”, Numeri Pari website, June 1st 2017
by Kate McFarland | Jun 19, 2017 | Opinion
It is better to have enough financial security to work for no pay than to receive payment directly for the same work — or, at least, this has been my own experience as a volunteer in the basic income community.
If my first year of active involvement in this community has done one thing to bolster my own support for a basic income, it has been this.
I began my work for Basic Income News as a “pure volunteer,” later dabbled in crowdfunding, and eventually received a grant for my work. Through it all, I have come to believe that there is good reason that voluntary work should remain voluntary, as long as it is financially feasible for volunteers to remain such (if, for example, volunteers had access to a work-unconditional guaranteed income).
Of course, no bold conclusions can be drawn from my experience alone. I am but one datum, a voluntary (no pun intended) sample of n = 1. The anecdotes that follow are meant only to be suggestive, to inspire critical reflection on ways in which the monetization of labor might compromise our attitudes as workers and, in turn, the quality (and quantity) of our output.
1. Background: Becoming a “Paid Volunteer”
When I began working for Basic Income News in early 2016, I did not seek financial compensation for my labor, nor did I have any expectation ever to do so. BIEN has been entirely volunteer-based since its inception and had no hiring plans for the foreseeable future. At that time, the praise and acceptance that I received as a result of my contributions — the satisfaction of providing something of quality and utility to people whom I respected — was all the motivation I needed. I also, at that time, had the means to support myself temporarily (a self-funded basic income, if you will). Thus, in mid-2016, I chose to treat this work for BIEN as if it were my “full-time job” while I self-financed my living.
Kate drinking fancy beer while supporting basic income
As my work began to gain attention, however, my situation changed. First, colleagues encouraged me to raise money for myself on Patreon, à la basic income writer and advocate Scott Santens. Allured by the prospect of a longer “career” as a freelance basic income reporter and writer, I did indeed create my own Patreon account, and reached a peak monthly “salary” of over $300 within only a few months.
However, crowdfunding — and the associated attempts to “brand myself” as a public figure — proved to be a considerable drain on my morale, and, as discussed below, it created perverse incentives that very nearly undermined my sense of solidarity with the BIEN and Basic Income News community. Thus, although I kept my account open, I ceased to devote time and energy to personal crowdfunding.
At the end of the year, though, the impulse to monetize my volunteer labor returned through a different vehicle: in December 2016, the Economic Security Project (ESP) launched in the United States, with the bold proclamation that it would be distributing $10 million in cash grants to projects related to researching or promoting basic income. With the support of my colleagues, I applied for, and received, a grant amounting to $2,000 per month to support my work for Basic Income News for one year. It felt like a dream come true to me — the highlight and capstone of an unexpectedly exciting and successful year.
In the ensuing months, however, I noticed that — despite its unquestionable benefits to my personal finances — even the receipt of the ESP grant began to impact my attitude and morale, my relationships with colleagues, and the quality of my work in ways that were not altogether salubrious.
Given the present political reality, my personal circumstances — being paid to volunteer, if you will — are about as good as they can be. But I believe that, if reality could be otherwise, I might have been a much more effective contributor to the good of Basic Income News and BIEN, and perhaps the basic income community at large, if I simply had the wherewithal to continue to support myself while engaging in true volunteer work.
2. From Collaborator to Competitor
In my experience, the single most salient adverse effect of monetizing volunteer work — whether through crowdfunding or through grant-seeking — has been its tendency to induce a change in mindset that transforms allies and collaborators into rivals.
Whether I was raising money to support myself on Patreon or pursuing an individual grant, I was pursuing money to support myself as an individual. I was forced to market myself, to promote myself, to present myself as individually (and uniquely among BIEN volunteers) deserving of funds — even though the job to which I had agreed, and the job that I initially loved, was to work for BIEN. During my first months with the organization, when I thought nothing about monetization, I tended to select my tasks for any given day based upon what I perceived as BIEN’s most pressing needs and demands, in conjunction with my own abilities, interests, and inclinations. But when I found myself faced with the tasks of earning and retaining funders, new questions emerged at the forefront: How can I make it appear that, out of all volunteers in the basic income movement, I am worthy of money? How can I stand out from the crowd?
Unsurprisingly, the drive to “stand out” as individually worthy of support can have deleterious effects on work in a collaborative environment like BIEN and Basic Income News. For example, the news service requires much “behind the scenes” work to remain functional. Most would-be funders, however, are not privy to our backstage activities — and would-be fundees like me know this. Meanwhile, Basic Income News posts are generally published under the names of their authors; thus, as actors on the front stage, news authors do sometimes gain the attention of those outside of the news team itself. As a consequence, the pursuit of outside funding tends to incentivize writing as much as possible under one’s own name, while minimizing administrative tasks, proofreading, editing, volunteer training, general website updates and maintenance, and any other such “invisible” work, despite the indubitable importance of the latter for BIEN.
Thus, for one, the pursuit of outside funds can create incentives that may lead the “fundee” to act contrary to their better judgement of how they could most effectively use their time and talents to further the good of their organization or cause. However, there can be even darker effects of the competitive, individualistic mindset engendered by personal profit-seeking.
Here are two examples from my experience — which, I must admit, fill me with shame and disgust even to relate. The first concerns a change in attitude towards proofreading and editing. I joined Basic Income News as a copyeditor and style editor, and I initially continued this work on an as-needed basis even after I also began to write articles under my own name. When I started crowdfunding, however, I nearly abandoned these proofreading and editing tasks — or, for that matter, providing any type of assistance to other volunteers — and I became much less thoughtful and meticulous when I did provide any type of editorial feedback. In part, this was motivated by the factor mentioned above: a newly acquired distaste for anything that distracted from the more “visible” work of self-authored posts. In part, though, it was driven by still more nefarious thoughts: “I have many ideas about how to make this draft into a better piece; thus, if I simply let it be published in its current state, my own work should then look better by comparison…”
Another tendency I noticed, after I began crowdfunding, was an avaricious urge to seize each and every good news lead for myself — neither asking nor caring whether any other volunteers might enjoy writing the story or might be better positioned than myself to write on its particular topic or region. When other writers claimed major news lead, I wasn’t happy to see that they were contributing, nor was I happy even to have less work for myself; instead, I felt a twinge of envy.
It’s a gross understatement to say that I’m not proud of these thoughts and never was; the feeling that I was required to outdo my own peers and allies was anything but fun or exciting.
It should additionally be noted that I encountered this perverse effect — the felt demand to treat collaborators as if they were competitors — despite the fact that no other Basic Income News volunteers were raising money for themselves. This is because, I think, I faced a special mental burden as the sole volunteer seeking monetary contributions: the burden of rationalizing to myself why I sought funding while my collaborators did not (or why, given that they were not receiving their own donations, I did not donate a portion of my own proceeds to them). When I observed my own money-seeking behavior, I saw that this behavior implied that I saw my own work and contributions as “more deserving” than those of my collaborators. Trying to “outdo” other volunteers, then, was in part a mechanism to relieve cognitive dissonance: if I could prove to myself that I was “the best” of the Basic Income News volunteers, I could rationalize my behavior of seeking donations for myself and myself alone.
In the end, I found one way to overcome these counterproductive attitudes and urges: I ignored the prospect of future money in basic income news writing, and accepted the assumption that I would not bring in additional money on Patreon, would not secure an additional year of grant funding, etc. That is, I retrained myself not to think of my work as a money-making venture.
3. The Threat of “Selling Out”
It probably requires little imagination to understand why seeking money from donors could threaten to compromise journalistic integrity. One should hope, at least, that news reporting would answer to the facts rather than the preferences and predilections of any monied interest.
Even when writing opinion pieces, such as this one, I consider myself to be bound by ethical and epistemic duties that the pursuit of donors might threaten to comprise. Roughly, I believe that I have a responsibility to write in support of positions that I believe Basic Income News followers should see supported, and to criticize positions that I believe Basic Income News followers should see criticized. Sometimes acting in accordance with this responsibility amounts to defending unpopular positions — such as, say, emphasizing some of the limitations of basic income or even questioning its feasibility — knowing that many readers are unlikely otherwise to seek out articles that challenge their pre-existing views. Indeed, even writing a full-fledged defense of basic income is likely to alienate some readers, given that there are many incompatible versions of basic income and that many incompatible reasons have been adduced to support them. I know, for example, that many basic income supporters would prefer to de-emphasize or outright reject approaches that turn on degrowth or post-work utopias.
When I supported myself financially, I was free to write whatever I believed needed to be written. Money seeking, however, introduces new questions. Should I try to remain as neutral and inoffensive as possible, even when writing opinion pieces, in order not to alienate potential funders? Should I avoid writing neutral and objective summaries of reports and articles that oppose basic income — knowing that most of my actual and potential funders would prefer to read a rebuttal? Should I try as much as possible to pander to the interests and positions of those basic income supporters with the most disposable cash (say, perhaps, those among the tech elite)? And, just to be safe, should I rule out ever writing a critical piece on the motives behind Silicon Valley’s interest in basic income? Should I assume that some rich potential supporters are likely to be pro-growth, and so stay away from ever writing in favor of a degrowth perspective — even though the latter is much closer to what I support? Should I avoid any sort of criticisms of the basic income movements that apply to my own funders? Should I stay quiet if I notice that one of my donors has begun spreading inaccurate or misleading claims about the status of one of the basic income experiments? And so on.
Fortunately, I was never tempted to compromise on my values as a journalist or writer in order to try to obtain donations, although it was distressingly easy to see that matters could have been different had I been in more dire need of funds, especially when attempting to crowdsource money through Patreon. I have occasionally, however, felt some pull after the fact to avoid criticizing those who have contributed to my funding — out of a sense of loyalty or respect to those who have shown generosity. Although superficially more virtuous, perhaps, the latter impulse — the desire not to offend those who have been charitable — can be just as problematic insofar as it becomes a threat to journalistic integrity.
4. From Social Norms to Market Norms
So far, I have focused on problems that arise when one fixates on the goal of securing or retaining funding. But adverse monetization-related effects on attitude and motivation can persist even within a secure funding arrangement — as I have experienced as a grantee.
Let’s look back to late 2016, prior to my receipt of the ESP grant. I have never tracked my hours, but I would guess that, at this time, I would sometimes willingly devote 50 or 60 hours per week to work for BIEN and Basic Income News. Since I did so for no pay, and without the expectation of future pay, the effort was clearly my choice; it was something I elected to do because of the appreciation it received from others and the sense of fulfillment it offered to me.
After I was offered $2,000 per month to complete the same work, my attitude began to shift. While there were surely many confounding factors, I feel certain that monetization played a distinct demotivational role at this point in my “career.” In fact, I felt a bit like an embodiment of research by behavioral economists like Dan Ariely on the tendency of monetary compensation to “crowd out” intrinsic and altruistic motivation to perform tasks. I grew disinclined to put in long hours of work, and sometimes even felt resentful when I imagined that others were expecting me to continue to work as much as I had been working at the end of 2016.
The fact that I was receiving only $2,000 per month played a role in this motivational change that was sometimes cognitively explicit. To be sure, this was the amount I had requested — the maximum amount, in fact — and I had requested this particular amount under the assumption that I would use it to cover basic expenses while continuing to work full-time (or more) each week. Prior actually to receiving the grant, I never thought about the fact that I was probably working at least 40 hours per week, and that, in the US, it would typically be seen as exceedingly cheap to hire a PhD-holder to perform a full-time job for a pre-tax salary of $2,000 per month without health insurance or other benefits.
After receiving the grant, however, I conceptualized my work much different: as Ariely might put it, I began to conceptualize my work in terms of economic norms instead of social norms. I was no longer working for the good of BIEN, for the basic income movement, or for any pleasure I intrinsically received from the work; I was instead working for $2,000 per month (with no benefits) — which seemed to merit no more than part-time work and effort. If I were to put in a 50 or 60 hour week, it no longer felt to me like I was voluntarily breaking my back for a good cause, as it did when I was doing the same amount of work for no compensation whatsoever. Instead, when I worked such long hours for a relatively small salary, I just felt underpaid relative to my efforts.
5. Epilogue
Eventually, I was able to work with ESP to resolve specific conditions on my grant funding, and I am happy to say that they are extremely reasonable (and, of course, they carry no expectation that I must work time-and-half!). It remains true, however, that the effect of financial compensation has not been to increase my effort or enthusiasm in my work for Basic Income News. On the contrary, I am now working much less for the news service than I was prior to being paid.
In the end, I believe, all of the effects of the grant have turned out well for me — even if not precisely (or at all!) in the way that might have been expected: given my tendencies toward workaholism, I am indeed rather grateful for any financially-induced loss of motivation. I am now much more inclined to moderate the time and effort that I dedicate to Basic Income News and, as as consequence, less stressed. It’s likely that, had it not been for monetization, I would have soon been a victim of burnout (yes, burnout at volunteer work).
Meanwhile, I have avoided other potentially adverse effects of monetization — such as the sense of competition against my peers — simply by adopting the acceptance that I will not continue to be funded in 2018 (and by assuring myself that this is okay, that I’ll find a way to make do, long enough, until I find something else). This mindset allows me to revert attention from the question “How can I secure money for myself?” back to questions like “What needs to be done?” and “What do I want to do?” The latter questions, I find, are much more conducive to the production of quality work and, certainly, healthier and happier attitudes.
So, while I have found an effective strategy, it depends, essentially, on having a personal financial safety net on which I can fall if I do not immediately secure additional paid labor.
It would irresponsible to assert that my experience can be generalized to others, in other circumstances of voluntary work. To the extent that it does generalize, however, 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.
Reviewed by Tyler Prochazka
Cover Photo: “Payment” CC BY-NC-ND 2.0 Richard Walker
