Che Wagner, “The Swiss Universal Basic Income Vote 2016: What’s Next?”

Che Wagner, “The Swiss Universal Basic Income Vote 2016: What’s Next?”

The following is an abstract from Che Wagner, the co-director of the Swiss Campaign for Basic Income, for his Medium article “The Swiss Universal Basic Income Vote 2016: What’s Next?

On June 5, 2016 all Swiss citizens were asked if they would like to amend their federal constitution with a Universal Basic Income (UBI). The proposal was declined, but the campaign not only prepared us for future discussions on social welfare in Switzerland, it also gave us the key insights for how we can talk about the future of work and income in general.

In analyzing the voting results along with representative surveys asking voters why they voted for/against UBI, we learn about how much it matters how we speak about UBI and in what context of contemporary society. Additionally, with those reflections we are able to detect some patterns of “key groups” who might play a major role in pushing the framework of UBI further.

Lastly, the question remains: What’s next? In the case of Switzerland, there were strong indications that most voters want the debate about UBI to continue, even if they voted against the proposal. One way to continue would be to set up trials or experiments on local levels and survey’s show a high approval rate for that. Lately, there had been a series of meetings and discussions about setting up experiments in various places in Switzerland. But there still remains the question: what would be a set-up that would make sense – both on a political agenda and a international scientific agenda. It will be most crucial to discuss premise and purpose before the set-up is done. For the UBI debate is certainly a global phenomenon and will leave marks on both sides of the Atlantic.

For the full article:

Che Wagner, “The Swiss Universal Basic Income Vote 2016: What’s Next?“, Medium, Feb. 8, 2017.

SWITZERLAND: World Economic Forum founder considers basic income “basically plausible”

SWITZERLAND: World Economic Forum founder considers basic income “basically plausible”

Economist Klaus Schwab, founder and executive chairman of the World Economic Forum, expressed optimism about unconditional basic income (bedingungsloses Grundeinkommen) in an interview with Hamburger Abendblatt, a daily newspaper in Hamburg, Germany. Schwab called the idea “basically plausibly” and predicted that discussion about it would develop over the next decade.

  

The Hamburger Abendblatt interview covered a range of topics related to globalization and digitalization. At one point, the reporters asked Schwab about his assessment of US President Donald Trump’s contention that he will bring back jobs from Asia and Mexico. In reply, Schwab pointed out that some industry might return to the US in the form of “digitized factories”.

Schwab then broached the idea of unconditional basic income in response to a follow-up question about the future of work: if industry is becoming digitized, what should be done for “those for whom there is no longer any work”?

In Switzerland, there was recently a referendum about the unconditional basic income. At least 23% of the citizens voted for it. Even I assent the idea for a basic income is basically plausible. Furthermore, I believe in 10 years the discussion about it will be far more ahead than now.

In response to a question about the effect of a basic income on attitudes toward work, Schwab asserts that a basic income could be seen as recognition for certain types of work, such as care work, that are important to society but currently paid relatively low wages:

I deny that people would then put their hands in their lap and sit lazily at home. A nurse in Germany with 2000 euros gross pay might today feel worn out. If, however, she were to receive a basic income, she might see it as recognition, and she would have a different basic attitude towards her work. In the future, if jobs are swept away due to digitalization, we need on the other hand a humanization of society. Industrial jobs will be gone, but there will be more social work to be done, like medical and health care.

 

The World Economic Forum is best known for its annual meeting in Davos, Switzerland. Held each year in January, the Davos meeting brings together approximately 2,500 invited guests, comprising top business executives, political leaders, and distinguished academics, for a series of panels and discussions of pressing global economic, political, and social issues.

The Davos meeting itself has already proven receptive to discussions of basic income. This year, the event will include a panel on basic income, featuring BIEN cofounder Guy Standing. Last year, the event held a forum on a “world without work”, in which Nobel laureate Sir Christopher Pissarides expressed support for a basic income guarantee, and was the site of the dancing “robots for basic income”.

 

 

Full interview with Schwab (in German):

Hannes Koch and Jörg Quoos “Schwab: ‘Gewinner müssen mit Verlierern solidarisch sein’,” Hamburger Abendblatt, January 9, 2017.

 

Translation assistance by Ronald Heinrich. Reviewed by Danny Pearlberg.

Photo CC BY-NC-SA 2.0 World Economic Forum

SWITZERLAND: Guy Standing to present on Basic Income at Davos

SWITZERLAND: Guy Standing to present on Basic Income at Davos

The 2017 Davos meeting of the World Economic Forum is to include a panel on basic income, in which BIEN’s Guy Standing will be participating.

Guy Standing (credit: Enno Schmidt)

BIEN co-founder Guy Standing (Professorial Research Associate at SOAS, University of London) has been invited to speak at the next meeting of the World Economic Forum (WEF) in Davos, Switzerland, which will take place from January 17 to 20, 2017.

The editor of The Economist will interview Standing on the precariat on January 17. Additionally, Standing will take part in a session on basic income on January 18.

By invitation only, the WEF’s annual Davos conference brings together over 2000 CEOs, political leaders, distinguished academics, and other “notables”, and has come to be regarded as one of the most elite economic and political conferences in the world.

 

World Economic Forum blog contributions

In connection with his invitation to Davos, Standing has authored an article on basic income for the WEF’s blog (“The precariat, populism and robots: is basic income a political imperative?). In it, Standing presents a series of justifications for basic income.

First, and most importantly, Standing argues that a basic income is owed to all as a matter of social justice: “Land, natural resources, and ideas that become ‘intellectual property’ are all part of society’s collective wealth, created and nurtured by generations of our ancestors. So, it is reasonable to argue that everybody should have a modest share, a social dividend, in the form of an equal, modest, individual, unconditional basic income.”

Standing contends that “all assets, including intellectual property, are resources to which all of society has legitimate claim”–recommending, for example, a “special levy on income generated by patents, copyright and other forms of intellectual property” to pay into a sovereign wealth fund.

Additionally, Standing argues that a basic income promotes individual freedom and security–noting that economic security is a requirement for rational decision-making–and removes the poverty and “precarity” traps in current welfare systems. (A precarity trap exists when a would-be worker decides not to accept short-term employment due to delays in benefits processing or other complications that encourage avoidance of temporary changes in benefits status. In this way, existing welfare systems often discourage temporary work.)  

Dancing Robot at Davos 2016 (Robots for UBI)

Standing also points out that a basic income would be seen as remunerating unpaid labor–and that this, in turn, could encourage more environmentally sustainable lifestyles.

“Care work, voluntary work, community work and the ‘work’ many do in retraining are all statistically unrecognised today, but they are socially valuable, and are not resource depleting, unlike many forms of labour. A basic income would tilt the economic system towards socially and ecologically sustainable growth.”

Finally, although he seems to regard it as a comparatively weaker argument, Standing concludes by claiming that the automation argument–that is, that a basic income is necessary as insurance against a robot job takeover–“should not be dismissed”.

The precariat, populism and robots: is basic income a political imperative? (December 20) is the final article in a three-part series:

The first, “Meet the precariat, the new global class fuelling the rise of populism” (November 9), describes the characteristics and structure of the precariat.

The second, “The 5 biggest lies of global capitalism (December 12), discusses “rentier capitalism” — a system in which increasing shares of wealth accrue to those who hold property from which they can extract rents — and explains how (in Standing’s view) it sits at the heart of contemporary economic inequities.


Reviewed by Genevieve Shanahan.

Davos photo CC BY 2.0 WebRatio Communications

Referendum and basic income: Parallels with Brexit

Referendum and basic income: Parallels with Brexit

There was an uncanny similarity between two referenda held in June: the UK’s referendum on whether to remain in the European Union, and the Swiss referendum on a Citizen’s Income. In each case, the ballot paper asked a simple question: whether to remain or leave, and whether to establish a Citizen’s or Basic Income – an unconditional income for every Swiss citizen. In the latter case, the wording was explicit that the Swiss federal government was to decide on the level of the Basic Income and on the means of funding it.

And then in both cases the campaigns leading up to the referenda were less about the referenda questions than about very different issues.

In the Swiss case this was largely the fault of the proposers of the referendum question. The wording having carefully left the decision as to the level of the Citizen’s Income to the Swiss government, the campaigners then suggested a level of 2,500 Swiss francs per month – about £400 per week. It was largely this that led to so many members of the Swiss parliament asking people to vote against the proposal; it was the proposed figure that dominated the campaign; and it was the fear of the massive tax increase that would have been needed to fund such a large Citizen’s Income that led to so many people voting against the proposal. All of this could have been avoided quite easily. If the campaigners had wanted to inform the debate about potential levels of Citizen’s Income and possible funding methods then they could have undertaken the kind of careful costing work that we and others have undertaken in the UK. If that had happened, then the government could have made clear the level of Citizen’s Income that they would be likely to agree on if the referendum were to pass, and the debate and the decision might have been rather more rational.

Having said that, the referendum was in many ways a success. The referendum was held; it contributed significantly to media and public interest in Citizen’s Income, both in Switzerland and around the world; and 23% of the Swiss population approved of the idea. The referendum will be seen as an important stage in the Swiss and global Citizen’s Income debates.

In the British case there was always going to be a problem. Public understanding of the European Union is almost non-existent, so the only information that most people had available to them were the halftruths that campaigners on both sides and the press chose to feed to them. Members of the public were told that we could avoid EU workers having the right to live and work in the UK and trade within the single market, even though the European Commission had made it clear that remaining within the single market was conditional upon allowing EU workers to live and work in the UK. Throughout the campaign, leaving the EU was touted as a way of preventing immigration, whereas most immigration is from outside the EU and was therefore nothing to do with the question on the ballot paper.

There are two lessons to draw from these two referenda. One is that referenda are a bad idea in the context of an ill-informed public and a biassed media. The question on the ballot paper might be a simple one, but if it is about a complex reality then even generally well-informed members of the public might have little understanding of the possible consequences of a referendum result – whatever that result might be. In relation to complex issues about which members of the public understand little, representative democracy is the least bad system of government, and it is safer than referenda. It enables proposals informed by a civil service to be debated in a parliament and in committee, to be amended, to be tested in another parliament, and then amended again. Such a method has to be preferable to a one-shot referendum ill-informed by emotive campaigns. This is not to suggest that referenda are never appropriate. If the public is well informed about the issue on the ballot paper, if campaigns are based on evidence, if experts are heard, and if the print and other media see it as their role to educate rather than to persuade, then a referendum has some chance of assessing an informed population’s view on the question on the ballot paper. The 2014 referendum on Scottish independence came closer to this ideal referendum than either the Swiss Basic Income referendum or the recent British referendum on EU membership; and the Swiss Basic Income referendum came closer to it than the British referendum on EU membership. It would take a massive educational effort to enable the UK’s population to gain a sufficient understanding of the desirability and feasibility of a Citizen’s Income to enable it to compare a benefits system based on a Citizen’s Income with the current system. Whether such an educational effort is possible, or such an outcome feasible, must be in doubt: in which case the safer method will be for the institutions of representative democracy – Parliament and the Government – to evaluate the arguments for a Citizen’s Income and to decide in accordance with their findings.

The second lesson to draw is that careful research is essential if any future debate about Citizen’s Income is to be sufficiently well informed. It has been a pleasure to see recent well researched reports from the Royal Society of Arts, the Adam Smith Institute, and Compass, and up to date costings and other statistics relating to a particular illustrative Citizen’s Income scheme have recently been published by the Institute of Social and Economic Research at the University of Essex. We hope soon to be able to publish costings and other information relating to a couple more illustrative schemes, and we also hope to have available soon some information on how a range of typical households’ net incomes would be affected by some illustrative schemes. We would like to see even more research organisations involved in the rigorous testing of the financial feasibilities and consequences of illustrative schemes.

There is a connection between the Swiss and British referenda: EUROMOD, the microsimulation programme that we use to evaluate illustrative Citizen’s Income schemes. The programme’s development is funded by the European Union. We are very much hoping that the UK will continue to be involved in the European collaboration that makes such a useful piece of research infrastructure possible.

Another connection is the one between Citizen’s Income and important factors in the British European Union referendum. Widening inequality and deep social divisions appear to have been important motivations for voting to leave the EU, even though leaving the EU is unlikely to remedy the situation and might even make it worse. A Citizen’s Income would help to reduce inequality and to heal social division. It is therefore essential that widespread informed debate on Citizen’s Income should take place, and that the institutions of representative democracy should decide to implement a Citizen’s Income: perhaps informed by an advisory referendum.

VIDEO: Discussing the merits of Unconditional Basic Income with Enno Schmidt

VIDEO: Discussing the merits of Unconditional Basic Income with Enno Schmidt

Enno Schmidt, one of the founders of the people’s initiative for an unconditional basic income in Switzerland, was interviewed as a part of TEDxBasel 2016.

Questions addressed in the 11-minute interview range from “Would people stop working with a basic income?” to “How does the money feel about this?”


Video: TEDx Talks, “Discussing the merits of Unconditional Basic Income”; published on YouTube on Aug 30, 2016.

Cover Photo: CC BY-NC 2.0 Generation Grundeinkommen