by Tyler Prochazka | Jun 20, 2020 | Opinion
This past week, Finland released the final results from its two-year “basic income” experiment. The program produced a modest increase in working days among basic income recipients and noticeable improvements in perceived happiness and healthiness.
Is this a surprise? When governments give people cash assistance, of course, their lives will improve. And with financial stress alleviated, these recipients will still find productive uses for their time.
Simply imagine the unearned suffering billions of people could have been spared if governments had implemented basic income prior to the pandemic and global economic depression.
Basic income skeptics should consider which system failed when confronted with the current avalanche of suicide, descent into addiction, and hungry mouth these twin crises have created. But according to the government’s standard, Finland’s basic income experiment still “failed” because recipients only increased their working days by a week or so.
Let that sink in. Despite proof that the program improved basic income recipients’ physical and mental well-being, it was deemed a failure because it did not fix every aspect of the labor market in two years. Recipients worked more, but that apparently still was not enough.
Maybe the standard by which success is judged is, therefore, the true failure.
Our current situation shows us that the government was dead set on keeping us in jobs at all costs. And the natural result of that obsession to “preserve work” is that governments are now bailing out corporations instead of their people.
Of course, well-connected businesses like airlines are bailed out first (and multiple times) as average people languish on the edge of financial ruin. Meanwhile, complicated schemes in the United States like the “Paycheck Protection Program” are designed to create the impression of modest job loss, since employees are kept tacked to their employer by way of payroll. But these “jobs saved” are meaningless insofar as many small businesses will immediately shutter from falling demand whenever the program ends. Many are zombie employers, animated by governments’ obsession with “jobs” over human wellbeing.
Even increasing unemployment benefits with a $600 bonus has been a nightmare, having never gone to many informal workers like caregivers and mothers in the first place. The unemployed will now make every effort possible not to return to work. Unlike with basic income, where the payment is available unconditionally, people will lose their leisure time and $600 unemployment bonus when they accept their next job.
Unemployment payments are also being used to threaten employees to return to work before the pandemic is even under control. In Iowa, the governor said unemployment recipients will be thrown off unemployment assistance if they do not return to work when lockdowns are eased: even if their workplaces are still hotspots for COVID. This means even more lives will be sacrificed on the altar of “increasing work” and “saving jobs.”
In contrast, basic income would empower people to make an informed decision whether it is safe to return to work without the loaded gun of economic self-destruction being held to their head. Governments should pay people directly instead of paying their employers. If they did, employers would have to meet the safety and pay standards of the people they hope to woo back into work
Almost a year ago, I wrote that the era of “experimenting” with basic income to determine whether it causes “laziness” should end. This question is more often than not asked in bad faith by opponents of basic income, who ignore overwhelming evidence that it generally increases the number of hours recipients work: even leaving aside the productivity gains in those work hours, as people are given more freedom to choose how their labor is allocated.
When the article was written, Canada cancelled its basic income experiment and Finland released its first year of results. These experiments were deemed failures at the time. But the absurdity of that belief is clearer than ever before.
We stand at the abyss, with the highest unemployment rates and deepest recession of our lifetimes on the horizon. And yet governments have doubled down on putting “jobs,” narrowly defined as roles serving corporate interests, over our wellbeing. This paradigm, by supercharging the economic fallout of the pandemic and forcing people back to work without safety rails in place, defies all logic.
Basic income never failed us. Our “jobs” did.
By Tyler Prochazka and James Davis
by Guest Contributor | May 7, 2020 | Opinion
Time for a new story
A corona is the halo of light around the solar eclipse. The coronavirus crisis can ensure a more balanced economy. Care and solidarity must support our economy and society.
Under a crystal-clear sky and the chirping of birds, our economy glides into a state of slow motion. Foremost, the virus is a drama and poses a great risk for society and its people. Next to that, it is also a strange experience. It is quiet, mostly dogs with their owners populate the streets.
Only “vital functions” are fulfilled. Non-vital employees have to stay at home or work from home. They are not really necessary. Childcare is only available for people who work in healthcare, and other employees that we really cannot do without. The rest must arrange childcare themselves. Raising children is a vital function in society, and suddenly childcare is too.
This is remarkable. Our view of the economy and income is rapidly changing. Our values change. The term “Working Netherlands” takes on a different meaning than before. Our health is number one, and better-paid employees sit at home these days. We have traded shopping for a quiet walk. Nature makes itself heard, people no longer dominate everything.
Crucial reflection
And that new reality leads, next to all the illness and disruption, to crucial reflection. Considering how we have organized our society and our economy. We reflect on the value of well-paid, low-paid, and unpaid labor for the economy and our society. We reflect on the value of (working) time. And we reflect on what everything is all about.
Ever since the coronavirus spread throughout the world, there is great appreciation for the people who work in healthcare. Everyone now sees that these vital functions are worth a lot, but that at the same time they are not the highest-paying jobs.
It started with applause from balconies in Spain and Italy, followed by applause and flags in the Netherlands. A standing ovation. Professionals take care of the sick and are at risk themselves. This crucial interest is now visible and visibly appreciated.
In addition, there are care activities that are not paid. We also applaud all these unpaid people! Unpaid care activities, such as care for children, family, for the earth, the environment, social contacts, and culture, are vital as well. And this is more visible as well. In this time of crisis in the Netherlands, we are seeing more solidarity and more unpaid voluntary initiatives.
A different world
The current old economy is being hit hard, and we will soon have to deal with it when this is over. We are curious to hear what Prime Minister Rutte will say on behalf of the national government. Will it again be: “Buy the car you wanted for a long time”, trying to stimulate consumerism? Or does this crisis bring a different vision and a different world closer than ever?
Will there be a reflection on our incomplete society with our focus on rules and procedures? We need a vision of how we can organize society differently. A society where not money but people are completely central again.
Once again: paralyzing the current economy gives us time to reflect on this and think about a different economy. An economy in which we realize that it mainly consists of services and care. An economy in which solidarity and security of existence are paramount.
Making unpaid work visible
The crisis is a disaster, but it also shows us where we come short. And it brings up essential questions. How can we take better care of each other? How can we take better care of our Earth? How can we also make unpaid intrinsically-motivated care work visible in our economic model?
We should think about care credits. Some examples: a pension for unpaid caregivers, a universal global price for oxygen, better reimbursements for volunteers. And yes, we should consider a universal basic income.
These proposals and ideas can be a lever for changing values and appreciation for all the (unpaid) care work and solidarity that is now visible in this crisis. And these measures can be a safeguard to achieve a different society and a new economic model. Because there is no one who has never been taken care of, and everyone will ever take care of someone.
A corona is the halo of light around the solar eclipse. A fragile light shines behind the dark. The coronavirus crisis can provide a more balanced picture of the economy. It is not the banks and stock markets, but it is solidarity and care that support our economy and society.
It’s time for a new story.
Jan Atze Nicolai
Political thinker and poet
Member of the Board of Vereniging Basisinkomen (BIEN member)a
by Tyler Prochazka | Apr 12, 2020 | News
A debate has broken out in Taiwan over sending cash to combat the economic downturn related to the global coronavirus pandemic.
The ruling Democratic Progressive Party (DPP) plans to stimulate select areas of the economy using coupon vouchers. The second-largest party, the Nationalist Party (KMT), has pushed for cash instead.
The DPP argued that cash is more likely to be “saved,” while vouchers have a better “stimulative” effect on the economy because they must be spent.
Chiang Wan-an, a member of the KMT, said sending cash is a more realistic way of providing financial security for Taiwanese. Cash can be used on paying education fees, healthy food items, and other essential areas, Chiang said.
Singapore plans to send a one-time payment of $420 USD to all Singaporeans above age 21 on April 14.
Taiwan’s proposed vouchers could be used to reduce the price of certain goods by 25 percent. KMT members argued this would not be convenient for those who do not understand the mobile payment system it would require.
This voucher system would also not help the poor who need to make essential purchases not covered by the vouchers, the KMT said.
Taiwan’s ruling DPP party did not rule out cash, but said that plans to send out cash would be targeted to “disadvantaged groups.”
