United States: Green New Deal – the environmental and social revolutions are linked

United States: Green New Deal – the environmental and social revolutions are linked

Picture credit: CC (Giuseppe Milo)

With an article on The Conversation, Fabian Shuppeter investigates how Universal Basic Income may be the key to make the green transition possible.

A letter demanding to take swift action to address the threat of climate change, with over 600 signatories, was proposed earlier this year (on the tenth of January) to the American Congress.

Afterwards, a resolution was proposed on February 7 by Alexandria Ocasio-Cortez (AOC), outlining the ambitious Green New Deal, which calls for the federal government to have a pivotal role in the green transition.

The Green New Deal (GND) sets out to reach a reduction in greenhouse gases emission from human sources of 40 to 60 percent from 2010 levels in 2030, and net zero emissions by 2050, in order to tackle climate change.

These ambitious targets would be met via expansionary economic policies (the opposite of austerity): the GND requires a great involvement of the federal government,, which would be required to pump large amounts of money into the economy in order to support the transition, even more so as one of the milestone of the proposals is the promise of employment for everybody. In order to do so while decarbonizing the economy, governments and central banks would need to use state expenditure, incurring in an increase in national debt.

To be able to grant full employment, the state will need to act as an employer of last resort, as many job will be lost in the green transition, both in the industries that operates directly in the extraction of fossil fuels and in those which are dependent on them, the article states.

While it is true that many jobs will be created in the new green industries, Shuppeter maintains that two main issues remain: whether workers will be able to retrain in order to enter the new jobs created, and whether those new jobs will last in time, rather than just peak in the immediate, remains to be seen.

Given that full employment in the short-medium term appears quite unrealistic, what the author suggests is, rather than state created jobs, the introduction of Universal Basic Income (UBI).

UBI would not only be a more efficient way to administer benefits (rather than the plethora of existing means-tested social welfare payments), but would also protect workers in a time of transition.

Shuppeter writes that the workers harmed by the green new deal may find more support in UBI than in a job guarantee, which would inevitably force somebody in jobs they don’t want, created for the sake of creating employment: on the other hand, UBI would allow people to reinstate themselves in the new green economy. Moreover, UBI would stimulate the economy and empower people  to engage in a more sustainable lifestyle.  

“To win popular support for the Green New Deal its benefits must be truly universal. What better way to guarantee a just, green transition and ensure no one is left behind than universal basic income?”

More Information at:

Shuppeter, Fabian, “Green New Deal: universal basic income could make green transition feasible“, The Conversation, March 21st 2019.

UBI Taiwan aims to be ‘tipping point’ for basic income

UBI Taiwan aims to be ‘tipping point’ for basic income

A nearly-packed auditorium of mostly young Taiwanese arrived on an early Saturday morning to learn about Universal Basic Income and its role in addressing key trends for the next generation.

This is the third year UBI Taiwan held its international summit in Taipei to push discussion of basic income on March 16. This year’s conference focused on the challenges Taiwan and the global economy is facing in the coming decade and what steps could be taken to make basic income a feasible solution.

Dr. Sarath Davala, vice chair of Basic Income Earth Network, was the keynote speaker for the second year in a row. Davala said this year’s attendees were even more enthusiastic.

“UBI Taiwan exudes unique energy and dedication to the idea of basic income. This kind of energy is perhaps rare in the basic income movement. Nowhere in the world, have I seen such critical mass of students collectively excited about basic income,” Davala said.

Dr. Ryan Engen, an economic officer at the American Institute in Taiwan (AIT), the unofficial U.S. embassy in Taiwan, gave the opening speech for the conference. Engen said basic income is “perhaps the most promising policy” to address Taiwan and the world’s economic transformations.

“If you can succeed in what you are trying to do, I actually think it has the potential to be the tipping point that changes the direction for the rest of the world, and that’s not an exaggeration,” Engen said.

In justifying the need to explore basic income, Engen discussed how the return on capital has outstripped income, which has exacerbated global income inequality.

The world is moving toward nationalism as a result of globalization and automation, which requires “creating a new global social contract that leaves nobody behind,” Engen said.

Guy Standing, BIEN’s co-founder, provided a video message for the conference Taiwan. He said Taiwan’s activists should frame basic income primarily in human rights terms, rather than as just an economic policy.

“Basic income is a matter of social justice,” Standing said. “We believe every man, woman, and child has a right to a share of the public wealth of the Commons from the wealth generated over generations, whether it is in Taiwan, China, Britain or anywhere else.”

Standing said while basic income would reduce poverty, this should not be the primary focus of Taiwan’s UBI movement.

“We must constantly stress the ethical basis of the campaign for basic income,” Standing said.

In the final round-table discussion, Ta-Ching Shih, a Taiwanese economic specialist at AIT, said basic income activists in Taiwan must first get attention to the idea and then focus on the policy specifics later.

Peter Knight, a former World Bank economist and a member of Fernand Braudel Institute of World Economics, also produced a video message for the conference where he discussed the economic rationale for basic income.

Knight said Taiwan is likely to face high levels of job automation in the coming years, along with Japan, Singapore, and South Korea. Taiwan’s coming status as a super-aged society may also induce consideration of whether basic income could help alleviate this issue, he said.

“UBI and progressive taxation to finance it, and the use of advanced labor-saving technologies are the key policies for Taiwan to achieve economic, social, political, and ecological sustainability,” Knight said.

Professor Ku Yun-wen from National Taiwan University’s Social Work Department went through a detailed analysis of Taiwan’s welfare policies and discussed how basic income may fit into the system.

Ku had previously written a report on UBI for Taiwan’s National Development Council, Taiwan’s Executive Yuan policy planning agency.

Professor Fong from National Taiwan University’s Economic’s Department provided insight into some of the relevant economic trends to basic income, such as increasing automation and its potential impact in Taiwan.

The conference was assisted in funding from the U.S. State Department’s Critical Language Scholarship through the Alumni Development Fund (ADF).

Before Alan Krueger passed away, he discussed the prospects of basic income in Taiwan with James Davis, one of the managers for this ADF project. Krueger was the former chair of President Barack Obama’s Council of Economic Advisers.

Krueger agreed Taiwan implementing basic income would likely inspire conversation around the world. However, Krueger said “there is a lot of work to be done.”

Professor Hou-ming Huang, the director of National Chengchi University’s Sociology Department, presented on the economic and philosophical transitions of humanity throughout history.

A journalist from Taiwan’s magazine The Reporter spoke on the misinformation that is often spread in Taiwan and global media regarding basic income.

Despite this misinformation, Davala said he is optimistic about the future of basic income’s development in Taiwan.

“I am sure that the debate in Taiwan will progress beyond conference halls and to the policy corridors,” Davala said.

Engen ended his remarks by noting Taiwan could play a very important role in the global UBI movement.

Taiwan is a “melting pot” of international influence and is at the center of global supply chains, Engen pointed out. Taiwan is also the “most progressive example in all of the Indo-Pacific,” he said.

“UBI happening here in Taiwan is very different than it happening anywhere else because Taiwan is a fully developed market democracy that is a technology epicenter of the world,” Engen said. “If UBI happened here it would send ripple effects around the world.”

In the run-up to the conference, Elyse Mark and Brian Anderson, who were also managers of the ADF project, produced interviews with U.S. scholars. Mark interviewed a legislative director for a councilmember of the District of Columbia council who produced a policy report on implementing minimum income in DC. Anderson interviewed an economist to understand the benefits of basic income across Taiwan and the United States. Davis also worked with Stanford’s Basic Income Lab to understand the context for how research there could help propel basic income frameworks for Taiwan.

 

AOC buckled under pressure over basic income

AOC buckled under pressure over basic income

Alexandria Ocasio-Cortez, also known as AOC, is a fighter. Ever since she was elected to the United States (US) House of Representatives, she has been doing much “ass kicking”. She made clear that energy transition in America was imminently necessary, and made a few headlines with her Green New Deal. A first draft of the Green New Deal also included the outline of some bold social policies, including a few measures to curb the racial inequalities that still plague the United States as well as a universal basic income (UBI).

This was not the first time AOC had mentioned UBI publicly. On one particular occasion at a Netroots event, she mentioned that a UBI was not a new idea in American politics, citing initiatives from Democrats in the past.

This is ground-breaking in contemporary U.S. politics, where things are often dominated by corporate interests. AOC’s fearlessness can feel refreshing to the general public, which also infuriates some special interest groups. Even as a Democrat, AOC is often critical of her Democratic Party colleagues for their “moderation” and submission to corporate donors. She says that American society has deviated far from where we collectively think we should be. Therefore, speaking up for what we believe is right can be considered “radical.”

However, there is a difference between speaking at a general-public event before being elected to the House of Representatives and speaking in that same House after being burdened with a formal political responsibility.

The Green New Deal draft bill presented to the House included the idea that the US government would take care of anyone who may be “unwilling to work.” That did not go well among AOC’s colleagues, Republican or Democrat.

This backlash has been documented, and it showed very clearly that for most politicians and political pundits, “unwilling to work” is simply translated as “lazy,” which was fatal for the program.

From that point of view, helping those “unwilling to work” simply does not make sense. That materialized into open ridicule from Republicans targeted at AOC and her Green New Deal, as well as silence from fellow Democrats. AOC was trying to demonstrate that people may wish to refuse degrading working conditions, starvation wages and other abuses from the marketplace. In that case, the government could ease their transition into something better by implementing a social policy similar to UBI.

AOC was deserted. And that must be hard to take in.

AOC and her colleagues tried to amend the Green New Deal. In the process, they erased any mention of basic income in the Green New Deal’s final proposed bill, while declining to reference this aspect of the program at public events. One example is AOC’s speech at this SXSW 2019 event.

First, she now defends a “jobs guarantee,” a policy more in line with the Democrats’ mainstream political thought, explicitly backed by Dem “heavy-weights” such as Barack Obama and Joe Biden. Second, she does not mention basic income anymore, not even when questioned about social solutions to things like automation and human rights issues such as racism, sexism, and inequality. In other circumstances, it would be obvious to reference basic income as someone who had already defended the principle on previous occasions.

We are left to watch her avoid the basic income issue. This can be exasperating knowing how enthusiastically she had already spoken about it. To me, this is the product of fear. She is afraid of being ostracized, particularly by her Democratic peers.

The result is hypocrisy. That is because her belief has remained unchanged. It would make no sense to assume that in a couple of weeks she had completely abandoned UBI in favour of its political competitor, the Federal Jobs Guarantee. A jobs guarantee has not brought significant results in other places. She only orbited back to a more front-and-centre endorsement of a Federal Jobs Guarantee because that is the “official” position of the Democrats.

Her professed courageous rebellion and uncompromising talk have gone down the drain, at least in part. In her defence, this behaviour is understandable. Deep down, no one likes to be abandoned. On the other hand, it is also disappointing for those who saw in her the possibility of radical change in American politics and the rise of “anti-establishment” discourse in America’s political landscape.

Courage includes managing the isolation and the criticism from other politicians and pundits while continuing to defend what she believes in. It may be a strategic pull-back, but the message that comes through is one of cowardness and submission to the “moderation” she so often criticizes in her fellow Democrats.

This does not imply I lost interest in AOC or that she is now politically dead to me. It means that no one is exempt from weakness and that there are moments when the pressure is just too much to bear. I am sure AOC will return to her formal vocal support for basic income. She is young, intelligent and restless, so I am sure that basic income will still play an important role in her political career. Perhaps she will follow in the footsteps of Andrew Yang, a not-much-older Democratic colleague of hers and rising-star presidential candidate.

More information at:

André Coelho, “United States: Alexandria Ocasio-Cortez: uncompromising, intelligent and courageously, she is driving progressive values in the US like we haven’t seen in a long time”, Basic Income News, January 23rd 2019

André Coelho, “United States: Alexandria Ocasio-Cortez mentions basic income at a Netroots Nation event”, Basic Income News, December 29th 2018

André Coelho, “United States: Alexandria Ocasio-Cortez gets to the point of what it means to be “unwilling to work””, Basic Income News, February 22nd 2019

André Coelho, “UNITED STATES: Joe Biden believes that jobs are the future, rather than basic income”, Basic Income News, September 27th 2017

Karl Widerquist, “Obama speaks favourably about UBI but stops short of endorsing it (for the second time)”, Basic Income News, July 18th 2018

André Coelho, “Germany: The HartzPlus experiment is starting, and the basic income discussion is there to stay”, Basic Income News, March 3rd 2019

Unites States: Andrew Yang reaches milestone: likely to be in a televised debate

Unites States: Andrew Yang reaches milestone: likely to be in a televised debate

Andrew Yang on TV. Picture credit to: WMUR

In a statement issued to supporters, Andrew Yang has announced that his campaign has met the main criteria for appearing in a first round of debates to be organized by the Democratic National Committee (DNC). The latter have said that they will organize debates for candidates who have recruited over 65000 donors before May 15th. Yang’s team announced having reached this goal early on, by stressing the helpfulness of small donations. The campaign has also seen a large increase in social media followers and in funding. Moreoever, for the growth of any business, it is important to build a huge customer base. And one of the ways to achieve that milestone is by posting relevant content and using appropriate social media marketing strategies. However, in recent time, many entrepreneurs often purchase followers for TikTok and other social media platforms to get the necessary attention that could help the content to perform better. While considering this option, it would be prudent to remember that anyone who is serious about growing their customer base and engagements on a social media site should have an available budget for a social media growth tool. For instance, while browsing through the best site to buy Instagram followers or Tik Tok, they should be able to pay for the particular tool that they are planning to invest in.

Anyway, about Andrew Yang and the debate, the DNC has said that they will only go with the top twenty candidates, if a larger number reaches the fundraising mark. The organization will decide later on the number of candidates who will debate in September.

Articles on Yang usually include his arguments for a basic income, which he considers a “humane” response to poverty, “disintegration” and “automation”. Yang’s campaign is increasing the number of people who support basic income and who are considering it (judging by the increasing numbers of his followers). Supporters of basic income who admire other candidates are asking hard questions. Some rival candidates have come forward with conditional cash grant proposals and smaller asset-based program like the “baby bond” (proposal by Cory Booker). Many voters are prioritizing ideological affiliations, instead of Party affiliation.

Several polling organizations are still not including Andrew Yang when they survey. Polls continue to favour candidates with more name recognition (e.g.: Joe Biden). A recent poll, by Monmouth University, has Yang at one percent (of voting intentions among Democrats). Mid-level media appearances have a strong pattern of attracting people who are excited by basic income. These people are joining social media pages and posing questions that are familiar to longer-term supporters of basic income. A very robust discussion on economics and poverty is taking shape.

If the rules stay as they are, we can expect to see Andrew Yang in some televised debates. He will push basic income front and centre. Many will be hearing about it for the first time. In a very crowded field, Yang and basic income may end up getting a surprising amount of attention.

Maggie Stults, a volunteer for Yang’s campaign in Texas, said, “I can’t describe how incredible it is, to see the progress of this campaign. To see a platform of a universal basic income gain this kind of momentum, especially in communities that lean conservative, is a clear statement that the people want real answers to economic issues more than anything.”

More information at:

André Coelho, “United States: Andrew Yang is not only talking about basic income: if elected, the idea is to implement it“, Basic Income News, March 15th 2019

Article reviewed by André Coelho

United States: Andrew Yang is not only talking about basic income: if elected, the idea is to implement it

United States: Andrew Yang is not only talking about basic income: if elected, the idea is to implement it

Andrew Yang. Picture credit to: The Daily Beast

Few political analysts bear to take Andrew Yang presidential candidacy seriously, but that doesn’t seem to slow him down. Yang’s team (informally also called “Yang’s gang”) has already surpassed a 14000 donors mark, and has active members in more than 35 states.

From previous articles, and from several interviews, it is clear that at the core of Yang’s motivation for running for President is the understanding of two things: automation is upon us (sure to wipe out millions of jobs in the next few years) and present-day economy is just not working for the average human anymore. He has already said that, according to him, Trump won the 2016 elections due to automation taking away four million jobs in swing states like Michigan, Ohio, Pennsylvania, Wisconsin, Missouri and Iowa.

Some might say the replacement of human labour by machines is a terrifying perspective, but these dire predictions can only materialize if the social structure still demands income from jobs to assure survival. And then others criticize the basic income proposal as “socialist” – which has a very negative connotation in the USA – as if somehow the implementation of that particular policy would turn contemporary USA into mid-XXth century USSR. On that issue, Yang simply replies that “this is capitalism where income doesn’t start at zero”.

Naturally that Yang is frequently asked the million-dollar question of how is he thinking to pay for a basic income in the USA (he proposes a 1000 $/month for every adult citizen, no questions asked). To him, the answer seems straightforward: make tech giants pay value-added taxes (since these are the main movers behind the great automation wave), and savings on conditional benefits (which can be replaced by the unconditional stipend). Yang envisions basic income to be implemented as a Negative Income Tax (NIT) policy, in which the state would, in each yearly tax exercise, consider the full amount of owed taxes versus basic income, and determine how much each adult citizen would pay or receive under a NIT system.

That and a lot more Yang spoke about at this year’s SXSW Conference, where Alexandria Ocasio-Cortez has also been present (on another of the Conference’s sessions).

More information at:

David Smith, “Andrew Yang: the 2020 candidate warning of the rise of robots”, The Guardian, 24th February 2019

Daniele Fabri, “USA: Presidential Hopeful Andrew Yang speaks at the Register’s Political Soapbox”, October 6th 2018

Jacob Banas, “How universal basic income could be affordable, Andrew Yang explains”, Futurism, March 10th 2019