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Cure health inequality by reducing income inequality

by Guest Contributor | Aug 30, 2017 | Opinion

The relationship between health and social context includes a range of factors influencing overall well-being. Social status, class, lifestyle, education, and environment primarily shape these factors. Age, gender, race, and ethnicity are structural variables of equal importance to health outcomes. Health is being facilitated or inhibited by the socioeconomic, cultural, and political backgrounds, in which one is born and raised. The people that view these data points and makes correlations between socioeconomic status and backgrounds to health issues have an interesting career because they constantly have to adapt to the understanding of new societal groups and focus on why a certain group would make a certain decision, for example.

In the last few decades, we have seen growing income inequality between the poor and rich. Since the 1980’s, the United States of America has seen a shift in wealth from the middle class towards the wealthiest people and transnational companies. The top one-tenth of 1 percent owns as much as the bottom 90 percent. Firebaugh and Beck argued economic growth would automatically benefit the masses, which in hindsight seems questionable.

As health outcomes and life expectations closely liaise to within-country income inequality, policies should aim at finding appropriate actions to address this phenomenon. Meaning, getting basic family urgent care, in terms of medical needs cannot be compromised. Currently, in some countries, those who earn more are able to find medical treatments to treat their injuries or illnesses, whilst those who don’t have as much money are having to cope with their illness or find other treatments. For example, those who suffer from digestive problems would have to pay a significant amount to get their illness looked at, so people on lower incomes will find supplements to help them instead. The bio complete 3 supplement can deliver prominent improvements for people’s digestive systems, so people are able to treat these problems. However, not all problems can be treated with supplements. This is why changes have to be made.

Wilkinson and Pickett found health issues to be strongly correlated to income inequality within a country. To support this finding, they used two different measurement tools. The first index, applied to Western countries, was a ratio of the 20 percent top incomes in relation to the 20 percent of the bottom earners. For different states within the USA they used a second index, the Gini-index, which adopts a different methodology. Where ‘Gini = 0′ represents perfect equality (same income for everyone) and ‘Gini = 1′ is total inequality (if all income goes to one person). The outcome of these results showed that the widening income gap led to an increase of different health issues related to mental disorders, life expectancy, infant mortality, obesity and teenage births. Societal problems that correlated to income inequality included: lower levels of trust, less educational performance, more homicides, higher imprisonment rates and a lack of social mobility. Some authors found Wilkinson and Pickett’s dismissal of poverty in relation to health outcomes incorrect as they did not measure it. On the other hand, research by Beckfield and Bambra confirmed the correlation between life expectancy and health stating that the lagging welfare state in the USA led to an average loss of 3.77 quality life years in comparison to other OECD countries. The USA has an income gap of 8:1 (the average biggest earners have 8 times the wage of those at the other end of the spectrum) leading to a life expectancy of 78.7 years, which is in contrast with Japan reaching an average of 83.0 years with an income gap of 4:1. The same age dependent relation has been found in Scandinavian countries having similar income gaps as Japan.

Goda and Torres Garcia looked at the rise of global inequality and confirmed previous results by stating that within-country inequality is responsible for 70 percent of the global inequality, suggesting 30% is due to in-between country inequality.

Taking national and local figures into account for the UK, the Office for National Statistics observed a life expectancy for new-born baby boys to be 83.3 years in the Kensington and Chelsea area. Meanwhile, the life expectancy for the same cohort in Blackpool is merely 74.7 years. Nationwide, the female life expectancy is 86.6 years in Purbeck and the lowest in Glasgow City with an expectancy of 78.5 years. The authors conclude that inequality has increased over the last two decades despite improvements in these local areas.

Medical technology has improved greatly over the past two decades, with many illnesses that were fatal twenty years ago proving simple to treat now. Simple technological breakthroughs such as RFID labeling and instant messaging have meant that medical practices can be streamlined, saving time and money which can then be invested back into treating patients. With all these improvements in technology, why is there still little improvement in life expectancy in some areas? The answer lies again with income inequality, with areas that suffer from low income also suffering from lower government funding. This directly impacts the access local hospitals have to new technology, meaning they have fewer new technologies to utilise for their patients.

We may assume a strong relation between income inequality and health outcomes on a global scale as Dorling in recent research concludes there are overarching arguments. Dorling (2007) confirmed a strong relation between income inequality and negative health outcomes on a global scale after an observational study performed in 126 countries.

The academic world has provided alternatives to deal with the widening gap between poor and rich. Reformed minimum wages, living wages, basic income or a global ‘fair tax’ and redistribution are only a few austerity counter-proposals to ensure overall well-being by reaching or transcending the poverty line. Minimum wages have proven insufficient and a basic income is still globally debated. An international fair tax may even prove more challenging as this requires global political support.

Minimum wages and living wages have the same aim; raising income for the least fortunate to reduce the impact of a growing income gap. A minimum wage is defined as a minimum market valued income, imposed by law and paid by employers. A living wage is a locally liaised and negotiated pay rate that a fulltime employee needs for a household of four to reach the poverty line. For the latter, societal context is important, as living in a metropolitan area is more expensive than living in the countryside. The Basic Income Earth Network defines basic income as “a periodic cash payment unconditionally delivered to all on an individual basis, without means, test or work requirement”.

A locally implemented living wage project in the UK, facilitated by the General and Municipal Boilermakers Union in 400 councils, has proven to be successful in reducing (health) inequalities as well as being beneficial for government tax income. Awareness within the community influenced policy in a way that living wages became accepted as a benchmark for society. In this regard, a living wage clearly will contribute to individual well-being and social cohesion – both factors improve health within communities.

Proposals for a Universal Basic Income (UBI) are slowly reaching the minds of global policymakers, but this process will take more time in achieving broader support. In developing a short-term response tackling inequality, a living wage appears to be a possible solution for developed countries yet remains a huge challenge for developing countries.

Emerging new technologies will demand economical strategies that are able to cope with less job certainty and keeping up with growing demands in healthcare.

A redistribution of capital, as proposed by Thomas Piketty in his book ‘Capital in the Twenty-First Century’, in combination with a UBI may prove to be the best strategy in the long-run to counter income-related health inequalities on a global scale. We must urge politicians to finally face transnational companies and the top one percent in order to obtain a globally acceptable taxation rate.

About the author:

Sam Brokken hails from Belgium and lives near the city of Leuven. He studied physiotherapy, sports physical therapy and manual therapy practicing these areas for years in private practices within local communities. He lectures in musculoskeletal disorders in relation to manual handling and ergonomics for healthcare service providers.
He is currently engaged in postgraduate work at the Robert Gordon University (Aberdeen – Scotland) within the MSc Public Health and Health Promotion course.

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HAMILTON, NZ: BIEN co-founder Guy Standing to address economic precariousness among Māori

by Kate McFarland | Aug 24, 2017 | News

On August 30, BIEN cofounder Guy Standing will speak at the University of Waikato in Hamilton, New Zealand, as part of an event on economic precarity facing the Māori.

In influential books like The Precariat and A Precariat Charter, economist Guy Standing postulates the existence of a new social class that he calls the “precariat,” characterized by unstable and insecure employment. Although the status of the precariat as a “class” is a matter of some dispute among social scientists, the rise of precarious forms of employment, such as short-term and gig labor, is a commonly cited concern among proponents of basic income.

According to researchers at University of Waikato, precarity in employment is a particularly pronounced concern among the Māori, New Zealand’s indigenous Polynesian people.

On August 30, at a public event titled “When Work Hardly Pays: A Conversation with Guy Standing,” Mohi Rua (lecturer in Psychology), Darrin Hodgetts (Professor in Social Psychology), and Ottilie Stolte (lecturer in Psychology) will present their research project “Connections and Flows: Precarious Māori Households in Austere Times.”

As the researchers summarize the project:

We draw on recent scholarship on the precariat as an emerging social class comprised of people experiencing unstable employment, unliveable incomes, inadequate state supports, marginalisation and stigma. Our focus is on the Māori precariat, whose rights are being eroded through punitive labour and welfare reforms. While we document issues of employment, food, housing and cultural insecurities shaping precarious lives, we also develop a focus on household connections, practices and strengths.

After this research overview, Bill Cochrane (National Institute of Demographic and Economic Analysis) and Thomas Stubbs (lecturer in Sociology) will sketch a “demographic silhouette” of the Māori precariat, one of the key components of the “Connections and Flows” project.

These presentations will lay the ground for Standing’s lecture, in which he will discuss his theory of the precariat and its implications.

See the event flyer from the University of Waikato for details.

On the following day, Standing will head to Auckland to speak at an event on basic income convened by the New Zealand Fabian Society.

Reviewed by Russell Ingram

Photo: Māori rock carving, CC BY 2.0 Tom Hall

How Many Couch Potatoes Can You Live With?

by Jason Burke Murphy | Aug 16, 2017 | Opinion

I hardly ever respond to anything in writing if I am not remembering it at least a year or so later. The piece I am remembering is an episode of the podcast Freakonomics called “Is The World Ready for A Guaranteed Basic Income?” I recommend it as an introduction.

I am going to give you a quote and then I want you to keep reading.

Sam Altman runs Y Combinator, a technology venture capitalist firm that has had some great successes and is now interested in funding social science research that will include basic income. Here is the quote, which came up during his interview in this podcast episode:

Maybe 90 percent of people will go smoke pot and play video games. But if 10 percent of the people go create new products and services and new wealth, that’s still a huge net win.

We are back to the couch potato. This character appears in a lot of objections to basic income. Altman concedes that there will be couch potatoes. He just thinks that is a good price to pay to get more entrepreneurs, even only a few of them. I appealed earlier for the reader to keep going because most people in my orbit would not like this quote. (If it sounds good to you, then I guess I should still urge you to keep reading.) I will explain why some will push back and why I ultimately do not.

We are starting to see increased support for as well as new sorts of negative reactions to the idea. Not very long ago, basic income advocates were often introducing the idea to specific audiences. This meant one could get away with starting where you thought the listener would react best. If you were talking to someone on the left, you might call it a “strike fund for all”. If someone is more liberal, you would emphasize that a basic income reaches people that welfare is supposed to help. With libertarian types, you start with the efficiency and non-bureaucratic character of a basic income. I have been very impressed by recent writing that emphasizes basic income’s ability to remedy asset inequality for people of color and women.

Now, I am very pleased to see more people who have already heard about basic income from someone. Sometimes they caught the wrong person for them. As we explain basic income, we will need to separate the policy (giving everyone an unconditional cash grant) from the project (which can range from left to right).

A quote like Altman’s can swing a listener in different directions. I know this from my social media work. I imagine people running different movies in their head. Some hear “new products and services and new wealth” and visualize start-ups and think it all sounds great. Others try to imagine a world working well with 90 percent of people not doing anything anyone else wants them to do and they just can’t see that working out well. Others hear this and worry that basic income is part of a larger scheme to organize our lives around Silicon Valley capitalists. To them, Altman seems to overly glorify the tech entrepreneur. Other writers are more desperate in labeling basic income a “neo-liberal plot”, which would make you laugh if you went to one of our Congresses. We would not want to merely swap one set of capitalists for another.

I have not met Sam Altman. His other statements show that he also finds basic income interesting because it directly answers a moral mandate to make sure people are clothed, fed, and sheltered. I highly recommend the rest of the podcast. My objective here is to explain why I think we ought to look at this quote charitably. I will show in what way I think his quote is true. I also want to propose an alteration that makes it much more palatable for those I see reacting negatively.

No One is Saying Ninety Percent of Society Will Hit the Couch

Altman is not talking about a whole society in which only 10 percent work. He is saying that even if we lose some work-time to lame leisure (pot and video games), we will make it back even if only 10 percent start up new enterprises. Nor is he saying that he knows that we will get one successful start-up for every nine lives lost to the coach. He is only saying that losing nine to the couch would be an acceptable price to pay if we gain a start-up, which would offer something someone wants and would also be offering jobs. This is very plausible.

Most people with a basic income will live a lot like they do now. They will have a more stable income. They will worry less about many of their friends and family. They will have a plan if they need to train for a job or pay bills between jobs. This cuts into the number of people who would choose the couch. Work can be a place where we get recognized for our talents and for our cooperativeness. And jobs pay money. In fact, you can still count on a basic income if you take on a job. And you can count on it if you change your mind.

The problem now is that employees have very few options when workplaces go sour. Basic income creates one option (work for no one) and enables people to survive while they search for and train for other options. This will increase pressure on workplaces to improve.

I used to be suspicious of most rhetoric surrounding markets. I think that was because so much of it ended up with a conclusion like “Therefore, government should do less/nothing.” I have come to value markets more and more. Now, I want them for everyone. A basic income secures the capability to participate in markets for everyone. There are many sections of the United States that get very little government or market attention. That would be less likely with a basic income in effect. You will also see more start-ups under a UBI because failing doesn’t risk losing everything. Most entrepreneurs now come from the upper one percent of our society. Whole communities aren’t going to see much startup soon if we wait for the elite to try to make money there.

Add Caregivers and Organizers To The Mix

Someone organizing a non-profit, a political organization, or even an informal social scheme fits under Sam Altman’s phrase of “new products and services and new wealth.” He is not confining his hopes to technological startups.

Robert Putnam’s book Bowling Alone, written in 2000, lays out the loss of social networks and the harm that has caused most Americans. These can be voluntary associations, political clubs, fraternal organizations, or sports leagues. Participation has declined as work-hours per household has increased. This means that many will look for alternative ways to interact with like minded Americans, especially when it comes to sporting events.

There is a strong link between organizational affiliation and many different metrics for happiness or meaningfulness. We also see more affiliation in communities that have more political power and that generate more market activity. (There is likely a causal loop there. Lack of power and lack of market options may often precede losses in organizational depth. And a lack of organizational depth may well often precede losses in money and power.) Social-capital comes hand in hand with capital-capital.

Michael Lewis and Eri Noguchi apply Putnam’s work, and combine it with survey data, to give us strong reasons to think that we would see improvements in civic networks as well. Declines in civic participations can be shown to coincide with an increase in work hours. People who value civic participation will have an option to do so.

If you want to know how a basic income will benefit society, let’s make it clear that we are including “organizers” within our understanding of “entrepreneur”. Our culture is one that has to be reminded of this. Once we expand our understanding, we can look around and see how many people are trying to participate in institutions that organize in pursuit of truth, justice, and beauty.

Examples will help here: church committees, symphony boards, rotary clubs, sports leagues, poetry circles, craft guilds, environmental organizations, identity-based youth groups, identity-based cultural organizations, music bands, theater companies, unions, political organizations, lobbying organizations, etc. This list could go on a very long time.

At this point, I want to share a little bit of what I learned as a community organizer in Arkansas for ACORN. Organizing is difficult. There are many ways in which it is not like entrepreneurship at all. You aren’t selling anything. All organizations have trouble finding this skill set. It is also difficult to get the resources together for full-time organizing. We would often hire someone who loved the mission of the organization but had to leave for pretty small increases in money. It might also prevent the loss of organizers to the for-profit sector.

Please note: I have noticed that a large section of the US internet is trying to malign the very term “community organizer” but my argument includes organization of groups I disagree with.

The ratio of organizers to members goes beyond the one to nine ratio that Altman imagines. About six of us at Arkansas ACORN served around 5,000 households if you are only counting dues payers. The community that responded to our work was larger than that. There were meetings every month. People debated goals and tactics. Political leaders were interviewed or protested. Organizations that despised us did the same things, though often with more funding from fewer people.

Every time I hear the term “couch potato” brought up as some sort of nightmare case for basic income, I remember that I sat on thousands of couches, urging people to get active, to get involved with their community’s decisions. I know that with a basic income, we would have had more organizers and more active members. Rival organizations would have had the same benefit. We will live in a more democratic place.

I am still involved in political work, even though I am not employed to do it. I also have been published as a poet and as a photographer, though not paid. You will find a lot of people working on magazines, readings, and websites in which the true, the good, and the beautiful are debated. A lot of people can see how to raise some money doing cultural, social, or political work but they can’t get to a decent level. A basic income would generate audiences for artists, philosophers, preachers-good and bad. A thriving art world is full of disputed art. A thriving philosophical culture will have disputed philosophical projects. We will live in a more interesting place.

Norman Rockwell “Freedom of Speech”

Finally, we should look at the decision to care for a family like we would a “start-up”. The “caregiver” has started a “career” that works for many people like a vocation. For each caregiver, there is at least one other person, usually more, benefiting in a meaningful way. Economists often do not count care for children and elders unless someone is formally paid to do it. A basic income would enable people to say no to employment if someone they love needs them. We will live in a more caring place.

In fact, Robert Putnam shows us in his research, as do Michael Lewis and Eri Noguchi in theirs, that the “stay-at-home” mom was often a civic association organizer as well.

More markets, more culture, more democracy, more care. This looks to be well worth investing 3% of our GDP and letting a few people stay home.

When I read the comments and notes that come with all basic income articles, I can see that some people would worry about people not working because of basic income. Basic Income enables people not to work. Kate McFarland points out that a basic income enables people to say no to all social useful activity. But we are far away from that. Some people will live incorrectly. Many people live incorrectly now. Basic income is a good bet for increasing socially useful work.

More entrepreneurs means more people are offered employment.
More organizers mean more people are being invited to venues where what is true, what is good, and what is beautiful are debated and plans are made.
More caregivers mean more people are taken care of.

Therefore, most likely, for every couch potato, we will have better reasons than ever to get off the couch.

About the author:

Jason Burke Murphy teaches philosophy and ethics at Elms College in Western Massachusetts. He serves on the board of US Basic Income Guarantee Network and recently presented at their North American Congress. He helps with social media for US Basic Income Guarantee Network. He has written before for Basic Income News. His most read piece so far is “Basic Income as Proposal, as Project, and as Idea.”

China: The State Council has issued its first ArtificiaI Intelligence development plan

by Furui Cheng | Aug 15, 2017 | News

The State Council of China released an Artificial Intelligence (AI) development plan on July 20, 2017, which aims to build a domestic industry worth almost $150 billion and positioning the country to become the world leader in AI by 2030.

There are three steps in the plan. By 2020, the Chinese government expects its companies and research facilities to be at the same level as those in leading countries such as the United States. After another five years it is aiming for a breakthrough in aspects of AI that will drive economic transformation. Then by 2030 China aims to become the world’s premier artificial intelligence innovation center, establishing the key fundamentals for a great economic power.

However, rapid development of AI solutions is not without its drawbacks. In June, Kai-Fu Lee, the chairman and chief executive of one of China’s leading venture capital firms Sinovation Ventures and the president of its Artificial Intelligence Institute, expressed concerns about the downsides of AI, particularly the potential for mass unemployment. He raised basic income as a feasible solution.

According to Kai-Fu, the AI products that now exist are improving faster than most people realize and promise to radically transform our world, not always for the better. They will reshape what work means and how wealth is created, leading to unprecedented economic inequalities and even altering the global balance of power.

He highlighted the challenges brought about by two specific developments: enormous wealth concentrated in relatively few hands and vast numbers of people out of work.

Part of the solution to the loss of jobs will involve educating or retraining people in tasks where AI performs poorly. These include jobs that involve cross-domain thinking such as the work of a trial lawyer, however, retraining displaced workers to perform these highly skilled tasks will not be feasible in most cases. There is more scope for people to occupy lower-paying jobs involving the nuanced human interaction that AI struggles to perform, such as social workers, bartenders and concierges. But here too there is a problem: how many bartenders does society really need?

The solution to the problem of mass unemployment, Kai-Fu suspects, will involve “service jobs of love.” These are jobs that AI cannot do, that society needs and that give people a sense of purpose. Examples include accompanying an older person to visit a doctor, mentoring at an orphanage and serving as a sponsor at Alcoholics Anonymous – or, potentially soon, Virtual Reality Anonymous for those addicted to their parallel lives in computer-generated simulations. In other words, the voluntary service jobs of today may turn into the real jobs of the future. Other voluntary jobs may be more professional and therefore higher-paying, such as compassionate medical service providers who serve as the human interface for AI programs that diagnose cancer. In all cases, people will be able to choose to work fewer hours than they do now.

In order to pay for these jobs, it will be necessary to take advantage of the enormous wealth concentrated in relatively few hands.

Kai-Fu Lee writes:

“It strikes me as unavoidable that large chunks of the money created by AI will have to be transferred to those whose jobs have been displaced. This seems feasible only through Keynesian policies of increased government spending, presumably raised through taxation on wealthy companies.

As for what form that social welfare would take, I would argue for a conditional universal basic income: welfare offered to those who have a financial need, on the condition they either show an effort to receive training or commit to a certain number of hours of “service of love” voluntarism.

To fund this, tax rates will have to be high. The government will not only have to subsidize most people’s lives and work; it will also have to revenue previously collected from employed individuals.”

More information at:

In Chinese:

Guo Fa, “State Council for a new generation of AI to inform development management“, Chinese State Council, July 8th 2017

In English:

Paul Mozur, “Beijing wants AI to be made in China by 2030”, The New York Times, July 20th 2017

Kai-Fu Lee, “The real threat of artificial intelligence”, The New York Times, June 24th 2017

Article Reviewed by Caroline Pearce

BIEN Norway public meeting: “Basic Income on the agenda!” (Aug 26)

by Kate McFarland | Aug 14, 2017 | News

“Basic Income on the agenda: What now for the Norwegian model?”

BIEN’s Norwegian affiliate, Borgerlønn BIEN Norway (BIEN Norge), has organized a public meeting on basic income on Saturday, August 26 — two weeks before the nation’s parliamentary elections (September 11). The event will investigate current challenges to Norway’s welfare state and the potential for basic income to reinvigorate and further develop the Nordic model.

During the first part of the meeting, Heikki Hiilamo (Professor of Social Policy at the University of Helsinki) will discuss Finland’s currently running Basic Income Experiment, and Becca Kirkpatrick (Chair of UNISON West Midlands Community Branch) will apply her experience of organizing trade unions in the UK to explaining why unions should support basic income. BIEN Norge has invited representatives from four Norwegian unions to speak at the event.

The second part of the event will focus on the current situation in Norway–where the traditionally robust welfare state has been threatened by the privatization of public services, tax cuts, benefit cuts, and a weakening of labor legislation, where the universal benefits characteristic of the Nordic model are being replaced with targeted and means-tested benefits, and where automation and digitalization are challenging another cornerstone of the Nordic model: the goal of full employment and a duty to work.

Four scholars, all of whom are prominent Norwegian supporters of basic income, will present their ideas concerning the potential for basic income to confront the concerns facing the Norwegian economy and welfare state: Nanna Kildal (Research Professor at the University of Bergen), Margunn Bjørnholt (Research Professor at the Norwegian Centre for Violence and Traumatic Stress Studies), Karl Ove (Kalle) Moene (Professor of Economics at the University of Oslo), and Ove Jacobsen (Professor of Ecological Economics at the Business School at Bodø). A debate will follow the individual presentations.