by Malcolm Torry | Sep 15, 2020 | Research
Luca Michele Cigna has written a master’s degree thesis about trade unions’ positions on Basic income: Looking for a North Star? Trade unions’ positions in the Universal Basic Income debate
First, unions’ propensity to support a UBI depends on
the degrees of socio-economic insecurity. In contexts characterised by high levels of poverty,
unemployment and precariousness, UBI proposals look more attractive in the eyes of union leaders.
Secondly, welfare regime generosity is a strong explanans of trade unions’ support. Less
encompassing welfare systems encourage trade unionists to regard UBI as a legitimate policy
alternative. Third, trade unions’ attachment to the work ethic and the insurance principle affects their
preferences for unconditionality and universality in policy settings. Fourth, their role in the industrial
landscape, and their degree of organisational inclusivity, have a strong influence on UBI support.
by Malcolm Torry | Sep 13, 2020 | News, Research
The original plan was for an international conference in Korea in February 2020, but the coronavirus pandemic caused the event to be postponed. An international conference has now been held online, and a wide range of speakers and discussants from around the world have contributed.
Session 1 was on ‘steppingstones to Basic Income: pilots and trials’; and session 2 was about Basic Income financing strategies. The sessions can be seen here.
Session 3 was about modern capitalism, modern life, and Basic Income; session 4 about Basic Income, local currency, and regional economy; and session 5 about the welfare state crisis and Basic Income. Sessions 3, 4 and 5 can be seen here.
by Barb Jacobson | Sep 6, 2020 | Opinion
Since I heard from a mutual friend at lunchtime today: ‘David is gone’, the shock I felt then seems to have reverberated around the world. One of the most curious of minds, finest of writers, kindest of hearts, most courageous and consistent callers of bull shit ever. Gone.
David and I met over a Twitter conversation about the appalling copy editing of the first edition of ‘Debt the 5000 years’. After swallowing the book whole when it came out in 2011, I complained on Twitter that it must not have had an editor, some of the sentences didn’t read as smoothly as most of the others, in fact were pretty confusing. David came back immediately that no, in fact it had too many, apparently nine before publication, but he was red-lining a copy for the paperback edition. I grumped in response that yes that’s it, no one had pulled a paper copy before, impossible to see all the faults on screen.
The last chapter of ‘Debt’ reintroduced me to the concept of basic income and sent me off round the internet to find out about it. UBI pulled together all the strands of my organising over the previous 30 years: housing, heath, welfare, work and women. Unlike monetary reform I could talk about it from my own experience, from the gut. I liked the fact that people either loved or hated the idea straight away, and it was fun to talk people round who immediately disliked the idea to at least consider it more seriously.
Later on in 2013 I invited David round for food with a friend, after feeling that if he had finally responded to Brad deLong’s obsessive trolling he must be lonely. He arrived in spatz, and was somehow nothing like the writer, or the Twitter warrior in his gentleness and kindness. I myself was at a low ebb: my job as a welfare rights advisor was getting ever bleaker with the reforms, and the propaganda campaign against claimants. His interest in the idea that shame about welfare is the flip-side of the shame about debt was encouraging, and he respected my experience even without a book to my name. We went on to be great buddies.
Since I’d lived in London and been politically active here since 1981, I knew the genealogies of most groups and people on the left. From David I got a better picture of what had been going on in the US in the aftermath of Occupy and in academia. We talked a lot about value, and care, politics of course – though we didn’t always agree – and personal travails, especially as Americans abroad.
By 2013 I was also trying to organise a movement for basic income here in the UK, but not making much of it. Over the next years David was consistently encouraging, getting me to speak about it at meetings, getting me a gig on the Keiser Report, doing an interview about it with me for Occupy London Youtube. I don’t know that I would have stuck with basic income without David. He helped me find my voice.
David refused to be pigeon-holed into writing about just one thing after he had a lot of pressure to carry on about debt after the success of ‘Debt’. He insisted that there was little point in being famous if he didn’t use it to write or talk about whatever interested him. We are all the richer for it, with considerations of bullying, democracy, bureaucracy, money, work, play, the future, care and many other subjects that defy expectation, challenge assumptions and expand our minds.
When David interviewed me about basic income for the final chapter of ‘Bullshit Jobs’ in 2018 I was worried about protecting the charity I worked for, so I didn’t want to be named. Also it seemed apt if everybody else was under a pseudonym that I should be too. He was sceptical, but respected it. And then made me two people for good measure.
David used the power he had as an academic, activist and a writer, and the money he earned by it, to pull many people and groups out of financial, academic, political holes. Others will talk in more detail about his role in saving the Syrian Kurds from Isis, but this is only the most famous of his interventions. He added his voice to defend Corbyn from the accusations of anti-semitism when Corbyn wasn’t defending himself. While a self-proclaimed anarchist, a practitioner and defender of direct action, an expert in consensus-building within groups, he was also a pragmatist about working with politicians, and did whatever he could to support working class demands.
David enjoyed what he had, and never forgot where he came from. He constantly acknowledged the fact that he got many of his ideas from conversations with other people, and insisted that the famous ‘We are the 99%’ was written by committee. He wrote and said publicly what so many of us thought or experienced silently, and in doing so changed our collective consciousness about it.
He always said, ‘The problem with privilege is that not everyone has it’. David lived his life working to spread what privilege he had as widely as he could, in whatever way came to hand. For that his life stands as an example of what to do with privilege, while owning one’s access to it.
That was the foundation of his support for basic income. For him it was a way to spread his privilege of having a secure, and sufficient income, while also having the freedom to pretty much do what he wanted. He wanted everyone to have that. ‘The imagination strikes back’, he said about it.
He was quite insistent that we start the negotiations high. ‘Oh I don’t know, about £30k? That’s good, isn’t it?’
I’m so grateful for what David wrote, and what he did, for our friendship and laughter over the years. But now there will always be that next other thing I won’t be able to discuss with him when it occurs.
I’ll always miss him. Forever.
by Karl Widerquist | Sep 5, 2020 | Opinion, The Indepentarian
Originally published by Open Democracy. 14 August 2020, under the title, “Basic income could virtually eliminate poverty in the United Kingdom at a cost of £67 billion per year”
Universal Basic Income (UBI) – a policy that would provide a regular, cash income to every citizen without means test or work requirement – is surprisingly inexpensive. The United Kingdom could introduce a full UBI (one large enough to live on) for just £67 billion per year or 3.4% of Gross Domestic Product (GDP), according to a study Georg Arendt and I recently completed.
Attention to UBI in the United Kingdom has increased substantially as the Scottish Parliament discusses experimenting with it and as policymakers discuss it as a temporary measure to boost the economy during the Covid-19 outbreak. While a pilot project can examine some of the effects of UBI, this kind of study is necessary to determine how much it is likely to cost.
The cost of UBI is often exaggerated because many authors focus on its ‘gross cost’: the size of the UBI times the population. The gross cost of UBI is not a cost in any meaningful sense, because it ignores the great extent to which the new taxes people pay to support UBI are cancelled out by new money they receive in UBI. The real cost of UBI is the ‘net cost’ – the amount people receive or pay after subtracting the amount they pay themselves. The net cost of a full UBI for the UK is only about one-third its gross cost.
Our study is based on data from the 2014/15 UK Family Resource Survey. It uses microsimulation analysis from the European Union’s EUROMOD Tax-Benefit Model to subtract out the amount people pay themselves and determine the cost of a roughly poverty-level UBI of £7,706 per adult and £3,853 per child.
Key findings of the study include:
- The cost of a full UBI for the United Kingdom is £67 billion per year or about 3.4% of GDP.
- This figure is the net cost – the real cost – of a UBI scheme of £7,706 for adults and £3,853 for children. This assumes a 50% income tax rate for net beneficiaries integrated into the UK tax-and-benefit system in a way that ensures the majority of UK citizens benefit from the transition and no one in the bottom 20% of the distribution of income is financially harmed by the loss of programmes replaced by the UBI. Although net beneficiaries’ tax rate increases, they receive more in UBI than they pay in additional taxes.
- This UBI scheme adds only 39% to the cost of the UK’s existing benefits system (not including the spending on the National Health Service), and an 8.7% increase in the UK’s total government spending (£67/£771 billion).
- This UBI scheme is a net financial benefit to most households in the lower 70% of the UK income distribution, making it an effective wage subsidy (or tax cut) for millions of workers and their families.
- The average benefit over the existing system for each net-beneficiary family is £4,056.
- Under this scheme, the percent of UK families with incomes below the current official poverty line would drop from 16% to 4% and poverty among children and the elderly would all but disappear.
- The net cost of this UBI scheme – the gross cost minus the amount people pay to themselves (£155 billion), and ignoring the costs and benefits of integrating the UBI into the existing tax and benefit system – is about one-third (35.4%) of its often-mentioned but not very meaningful gross cost (£438 billion).
- Also subtracting the cost of existing programmes that can be replaced by UBI without financially harming anyone in the bottom 20% of the income distribution makes the net cost only about 15% of the programme’s gross cost.
- This UBI system eliminates absolute poverty (e.g. as it is measured in the United States) from the UK.
- According to a 2015 piece in the Guardian, the UK currently spends over £93 billion per year on corporate subsidies and tax breaks. If so, the UK could entirely fund a UBI by eliminating corporate subsidies and tax loopholes. No increase in individual taxes would be necessary, and the government would still have £26 billion available for corporate subsidies.
- Countries with similar per capita income and similar tax-and-benefit systems should expect the cost of UBI to be a similar percentage of their GDP.
Those remaining in poverty under the scheme would be much closer to the poverty line than they are now and would have enough to get by in combination with other government payments and services. Therefore, we conclude that a UBI of this size would eliminate absolute poverty in the United Kingdom, a powerful result for less money than Parliament currently spends on corporate subsidies and tax breaks.
Download the full report
by Julio Linares | Aug 3, 2020 | News
It was late October 2019, when different academics and activists from all over Latin America were preparing to meet in the south of Chile to share our ideas and perspectives on UBI for the first time. The idea of forming a regional basic income network had been present for a long time and people were eager to contribute to it.
Suddenly, Chilean police and army went to the streets to suppress unarmed protestors. What started as high-school students protesting the rising metro fees became the a turning point in Chile’s history. The basic income event was sadly cancelled but the seed of something else was planted.
Fast forward to early March 2020, together with Gabriela Cabaña we decided to kick-start the network. Our first call was on Monday, March 9th, one day after the biggest protest turnout in Chile, on the eve when petrol prices went negative and right before the COVID-19 pandemic spread to most countries. We did not know what to expect next.
After the Corona virus hit, the interest on basic income surged tremendously in Latin America. In a matter of months, UBI in Latin America has gone from being almost no-where in the political radar to being the politics of the future, with events discussing the idea in countries like Argentina, Brasil, Colombia, Ecuador, Guatemala and Uruguay.
The Latin American Basic Income Network meets once a month. Since July and with the help of the Institute of Central American Fiscal Studies (ICEFI), the network has started to organize a series of talks in order to contextualize the importance of basic income in the region. You can watch the first one here, featuring Pablo Yanes (Mexico), Nelson Villarreal Durán (Uruguay) and Alejandra Zúñiga Fajuri (Chile), on the present importance of basic income.
Our goal is to produce a Latin American perspective on Basic Income, situating it in the socio-political context of the region on all it’s different dimensions, such as ecology, indigenous perspectives, welfare, democracy and so on. The next talk will be held on August 4th, 16h CDT, titled “Feminist Perspectives on Basic Income” which can be streamed live and viewed here.
Watch out for more news coming from the region! To get in touch, please contact us at: red-latinoamericana-de-renta-bsica@googlegroups.com