Social:Basic income

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Short description: Periodic governmental payment to all individuals unconditionally
On 4 October 2013, Swiss activists from Generation Grundeinkommen organized a performance in Bern in which roughly 8 million coins, one coin representing one person out of Switzerland's population, were dumped on a public square. This was done in celebration of the successful collection of more than 125,000 signatures, forcing the government to hold a referendum in 2016 on whether or not to incorporate the concept of basic income in the federal constitution. The measure did not pass, with 76.9% voting against changing the federal constitution to support basic income.[1]

Basic income, also called universal basic income (UBI), citizen's income, citizen's basic income, basic income guarantee, basic living stipend, guaranteed annual income, or universal demogrant, is a theoretical governmental public program for a periodic payment delivered to all citizens of a given population without a means test or work requirement.[2]

Basic income can be implemented nationally, regionally, or locally. An unconditional income that is sufficient to meet a person's basic needs (i.e., at or above the poverty line) is sometimes called a full basic income; if it is less than that amount, it may be called a partial basic income. The expression 'negative income tax' (NIT) is used in roughly the same sense as basic income, sometimes with different connotations in respect of the mechanism, timing or conditionality of payments. Some welfare systems are sometimes regarded as steps on the way to a basic income, but because they have conditions attached, they are not basic incomes. One such system is a guaranteed minimum income system, which raises household incomes to a specified minimum. For example, Bolsa Família in Brazil is restricted to low-income families, and the children of recipients are obligated to attend school.[3]

Several political discussions are related to the basic income debate, including those regarding automation, artificial intelligence (AI), and the future of work. A key issue in these debates is whether automation and AI will significantly reduce the number of available jobs and whether a basic income could help alleviate such problems.

History

The idea of a state-run basic income dates back to the early 16th century when Sir Thomas More's Utopia depicted a society in which every person receives a guaranteed income.[4] In the late 18th century, English radical Thomas Spence and American revolutionary Thomas Paine both declared their support for a welfare system that guaranteed all citizens an assured basic income. Nineteenth-century debate on basic income was limited, but during the early part of the 20th century, a basic income called a "state bonus" was widely discussed. In 1946 the United Kingdom implemented unconditional family allowances for the second and subsequent children of every family. In the 1960s and 1970s, the United States and Canada conducted several experiments with negative income taxation, a related welfare system. From the 1980s and onward, the debate in Europe took off more broadly, and since then, it has expanded to many countries around the world. A few countries have implemented large-scale welfare systems that have some similarities to basic income, such as Bolsa Família in Brazil. From 2008 onward, several experiments with basic income and related systems have taken place.

Governments can contribute to individual and household income maintenance strategies in three ways:

  1. The government can establish a minimum income guarantee and not allow income to fall below levels set for various household types, maintaining these levels by paying means-tested benefits.
  2. Social insurance can pay benefits in the case of sickness, unemployment, or old age, on the basis of contributions paid.
  3. Universal unconditional payments, such as the United Kingdom's Child Benefit for children.[5]

A means-tested benefit that raises a household's income to a guaranteed minimum level is unlike a basic income in that income delivered under a system of guaranteed minimum income is reduced exactly as other sources of income increase, whereas income received from a basic income is constant regardless of other sources of income. Johannes Ludovicus Vives (1492–1540), for example, proposed that the municipal government should be responsible for securing a subsistence minimum to all its residents "not on the grounds of justice but for the sake of a more effective exercise of morally required charity." However, Vives also argued that to qualify for poor relief, the recipient must "deserve the help he or she gets by proving his or her willingness to work."[6]

The first to develop the idea of social insurance was Marquis de Condorcet (1743–1794). After playing a prominent role in the French Revolution , he was imprisoned and sentenced to death. While in prison, he wrote the Esquisse d’un tableau historique des progrès de l’esprit humain ("Sketch for a Historical Picture of the Progress of the Human Mind"; published posthumously by his widow in 1795), the last chapter of which describes his vision of social insurance and how it could reduce inequality, insecurity, and poverty. Condorcet mentioned, very briefly, the idea of a benefit to all children old enough to start working by themselves and to start up a family of their own. He is not known to have said or written anything else on this proposal, but his close friend and fellow member of the U.S. Constitutional Convention Thomas Paine (1737–1809) developed the idea much further, several years after Condorcet's death.

The first social movement for basic income developed around 1920 in the United Kingdom. Its proponents included:

  • Bertrand Russell (1872–1970) argued for a new social model that combined the advantages of socialism and anarchism, and that basic income should be a vital component in that new society.
  • Dennis and Mabel Milner, a Quaker married couple of the Labour Party, published a short pamphlet entitled "Scheme for a State Bonus" (1918) that argued for the "introduction of an income paid unconditionally on a weekly basis to all citizens of the United Kingdom." They considered it a moral right for everyone to have the means to subsistence, and thus it should not be conditional on work or willingness to work.
  • C. H. Douglas was an engineer who became concerned that most British citizens could not afford to buy the goods that were produced, despite the rising productivity in British industry. His solution to this paradox was a new social system he called social credit, a combination of monetary reform and basic income.

In 1944 and 1945, the Beveridge Committee, led by the British economist William Beveridge, developed a proposal for a comprehensive new welfare system of social insurance, means-tested benefits, and unconditional allowances for children. Committee member Lady Rhys-Williams argued that the incomes for adults should be more like a basic income. She was also the first to develop the negative income tax model.[7][8] Her son Brandon Rhys Williams proposed a basic income to a parliamentary committee in 1982, and soon after that in 1984, the Basic Income Research Group, now the Citizen's Basic Income Trust, began to conduct and disseminate research on basic income.[9]

Milton Friedman

In the 1960s and 1970s, some welfare debates in the United States and Canada included discussions of basic income. Six pilot projects were also conducted with the negative income tax. President Richard Nixon proposed a massive overhaul of the federal welfare system, replacing many of the federal welfare programs with a negative income tax – a proposal favored by economist Milton Friedman. Nixon said, "The purpose of the negative income tax was to provide both a safety net for the poor and a financial incentive for welfare recipients to work."[10] Congress eventually approved a guaranteed minimum income for the elderly and the disabled, not for all citizens.[10]

In the late 1970s and the 1980s, basic income was more or less forgotten in the United States, but it started to gain some traction in Europe. Basic Income European Network, later renamed to Basic Income Earth Network, was founded in 1986 and started to arrange international conferences every two years.[2] From the 1980s, some people outside party politics and universities took an interest. In West Germany, groups of unemployed people took a stance for the reform.[11]

In 2002, a green paper was commissioned on the topic by the Government of Ireland.[12]

Since 2010, basic income again became an active topic in many countries. Basic income is currently discussed from a variety of perspectives, including in the context of ongoing automation and robotization, often with the argument that these trends mean less paid work in the future. This would create a need for a new welfare model. Several countries are planning for local or regional experiments with basic income or related welfare systems. For example, experiments in Canada, Finland, India, and Namibia have received international media attention. The policy was discussed by the Indian Ministry of Finance in an economic survey in 2017.[13]

So far, no country has introduced an unconditional basic income as law. The first and only national referendum about basic income was held in Switzerland in 2016. The result was a rejection of the basic income proposal in a vote of 76.9% to 23.1%.

Perspectives in the basic income debate

Automation

The debates about basic income and automation are closely linked. U.S. presidential candidate and nonprofit founder Andrew Yang has stated that automation caused the loss of 4 million manufacturing jobs and advocated for a UBI of $1,000/month rather than worker retraining programs.[14]

Some technologists believe that automation, among other things, is creating technological unemployment. Some in the "tech elite" (Marc Andreessen, Sam Altman, Peter Diamandis, and others) support the idea of a UBI.[15]

Andrew Yang holding a microphone while making a speech
Entrepreneur and 2020 Democratic candidate Andrew Yang has advocated for a basic income to counter job displacement through automation. His basic income policy, the Freedom Dividend, proposes to give every American adult $1,000 a month.

Bad behavior

Criticism of a basic income includes the argument that some recipients would spend a basic income on alcohol and other drugs.[16][17] However, studies of the impact of direct cash transfer programs provide evidence to the contrary. A 2014 World Bank review of 30 scientific studies concludes: "Concerns about the use of cash transfers for alcohol and tobacco consumption are unfounded."[18]

Basic income as a part of a post-capitalistic economic system

Erik Olin Wright

Harry Shutt proposed basic income and other measures to make most or all businesses collective rather than private. These measures would create a post-capitalist economic system.[19]

Erik Olin Wright characterizes basic income as a project for reforming capitalism into an economic system by empowering labor in relation to capital, granting workers greater bargaining power with employers in labor markets, which can gradually de-commodify labor by separating work from income. This would allow for an expansion in the scope of the social economy by granting citizens greater means to pursue non-work activities (such as art or other hobbies) that do not yield strong financial returns.[20]

James Meade advocated for a social dividend scheme funded by publicly-owned productive assets.[21] Russell argued for a basic income alongside public ownership as a means of shortening the average working day and achieving full employment.[22]

Economists and sociologists have advocated for a form of basic income as a way to distribute economic profits of publicly owned enterprises to benefit the entire population, also referred to as a social dividend, where the basic income payment represents the return to each citizen on the capital owned by society. These systems would be directly financed from returns on publicly owned assets and are featured as major components of many models of market socialism.[23]

Guy Standing has proposed financing a social dividend from a democratically-accountable sovereign wealth fund built up primarily from the proceeds of a tax on rentier income derived from ownership or control of assets—physical, financial, and intellectual.[24][25]

During the COVID-19 Pandemic of 2020, U.K. Chancellor of the Exchequer Rishi Sunak rejected calls for the implementation of a basic income, stating that the government were "not in favour of a universal basic income,"[26] whilst Business Secretary Alok Sharma said[when?] that the UBI has been "tested in other countries and hasn't been taken forward" [27]

Economic critique

In 2016, the IGM Economic Experts panel at the University of Chicago Booth School of Business was asked whether they agreed with the following statement: "Granting every American citizen over 21-years old a universal basic income of $13,000 a year — financed by eliminating all transfer programs (including Social Security, Medicare, Medicaid, housing subsidies, household welfare payments, and farm and corporate subsidies) — would be a better policy than the status quo." 58 percent of participants disagreed or strongly disagreed, 19 percent were uncertain, and 2 percent agreed.[28] The cost was an issue for those who disagreed as well as a lack of optimization in the structure proposed. Daron Acemoglu, professor of economics at the Massachusetts Institute of Technology, expressed these doubts in the survey: "Current US status quo is horrible. A more efficient and generous social safety net is needed. But UBI is expensive and not generous enough".[28] Eric Maskin has stated that "a minimum income makes sense, but not at the cost of eliminating Social Security and Medicare".[29] Simeon Djankov, professor at the London School of Economics, argues the costs of a generous system are prohibitive.[30]

Another critique comes from the far-left. Douglas Rushkoff, a professor of Media Theory and Digital Economics at the City University of New York, suggests that universal basic income is another way that "obviates the need for people to consider true alternatives to living lives as passive consumers". He sees it as a sophisticated way for corporations to get richer at the expense of public money.[31]

Some conservatives have contended that universal basic income could act as a form of compensation for fiat currency inflation.[32]

Economic growth

Some proponents of UBI have argued that basic income can increase economic growth because it would sustain people while they invest in education to get higher-skilled and well-paid jobs.[33][16] However, there is also a discussion of basic income within the degrowth movement, which argues against economic growth.[34]

Employment

One argument against basic income is that if people have free and unconditional money, they would "get lazy" and not work as much.[35][36][37] Critics argue that less work means less tax revenue and hence less money for the state and cities to fund public projects. The degree of any disincentive to employment because of basic income would likely depend on how generous the basic income was.

Some studies have looked at employment levels during the experiments with basic income and negative income tax and similar systems. In the negative income tax experiments in the United States in the 1970s, for example, there was a five percent decline in the hours worked. The work reduction was largest for second earners in two-earner households and weakest for the main earner. The reduction in hours was higher when the benefit was higher. Participants in these experiments knew that the experiment was limited in time.[36]

In the Mincome experiment in rural Dauphin, Manitoba, also in the 1970s, there were also slight reductions in hours worked during the experiment. However, the only two groups who worked significantly less were new mothers and teenagers working to support their families. New mothers spent this time with their infant children, and working teenagers put significant additional time into their schooling.[38] Under Mincome, "[t]he reduction of work effort was modest: about one per cent for men, three per cent for wives, and five per cent for unmarried women".[39]

A recent study of the Alaska Permanent Fund Dividend -— the largest scale universal basic income program in the United States, running from 1976 to the present -— seems to show this belief is untrue. The researchers, Damon Jones from the University of Chicago Harris School of Public Policy and Ioana Marinescu from the University of Pennsylvania School of Public Policy and Practice, show that although there is a small decrease in work by recipients due to reasons like those in the Manitoba experiment, there has been a 17 percent increase in part-time jobs. The authors theorize that employment remained steady because of the extra income that let people buy more also increased demand for service jobs. This finding is consistent with the economic data of the time. No effect was seen when it came to jobs in manufacturing, which produce exports. Essentially, the authors argue, macroeconomic effects of higher spending supported overall employment. For example, someone who uses the dividend to help with car payments can cut back on hours working as a cashier at a local grocery store. Because more people are spending more, the store must replace the worker who started working less. Meanwhile, the distribution of the dividend doesn't affect the international demand for oil and the jobs connected to it.[40][41] Jones and Marinescu found instead that the larger scale of the program is what allows it to work and not dissuade people out of the workforce.

Another study that contradicted such a decline in work incentive was a pilot project implemented in 2008 and 2009 in the Namibian village of Omitara. The study found that economic activity actually increased, particularly through the launch of small businesses, and reinforcement of the local market by increasing individuals' buying power.[42] However, the residents of Omitara were described as suffering "dehumanising levels of poverty" before the introduction of the pilot, and as such the project's relevance to potential implementations in developed economies is unknown.[43]

James Meade states that a return to full employment can only be achieved if, among other things, workers offer their services at a low enough price that the required wage for unskilled labor would be too low enough to generate a socially desirable distribution of income. He therefore concludes that a "citizen's income" is necessary to achieve full employment without suffering stagnant or negative growth in wages.[44]

If there is a disincentive to employment because of basic income, the magnitude of such a disincentive may depend on how generous the basic income was. Some campaigners in Switzerland have suggested a level that would be only just liveable, arguing that people would want to supplement it.[45]

Freedom

Philippe Van Parijs

Philippe van Parijs has argued that basic income at the highest sustainable level is needed to support real freedom, or the freedom to do whatever one "might want to do".[46] By this, van Parijs means that all people should be free to use the resources of the Earth and the "external assets" people make out of them to do whatever they want. Money is like an access ticket to use those resources, and so to make people equally free to do what they want with world assets, the government should give each individual as many such access tickets as possible—that is, the highest sustainable basic income.

Karl Widerquist and others have proposed a theory of freedom in which basic income is needed to protect the power to refuse work[47]; in other words, if the resources necessary to an individual's survival are controlled by another group, that individual has no reasonable choice other than to do whatever the resource-controlling group demands. Before the establishment of governments and landlords, individuals had direct access to the resources they needed to survive. Today, resources necessary for the production of food, shelter and clothing have been privatized in such a way that some have gotten a share and others have not.

Therefore, the argument is that the owners of those resources owe compensation back to non-owners, sufficient at least for them to purchase the resources or goods necessary to sustain their basic needs. This redistribution must be unconditional because people can consider themselves free only if they are not forced to spend all their time doing the bidding of others simply to provide basic necessities to themselves and their families.[16] Under this argument, personal, political and religious freedom are worth little without the power to say no. Basic income therefore may provide economic freedom which, combined with political freedom, freedom of belief and personal freedom, establish each individual's status as a free person.

Gender equality

The Scottish economist Ailsa McKay has argued that basic income is a way to promote gender equality.[48][49][50] She noted in 2001 that "social policy reform should take account of all gender inequalities and not just those relating to the traditional labor market" and that "the citizens' basic income model can be a tool for promoting gender-neutral social citizenship rights".[48]

Women perform the majority of unpaid care work around the world. In fact, if unpaid care work performed by women were compensated at even just minimum wage around the world, this would boost measured global economic output by 12 trillion USD, which is 11% of global economic output and is equivalent to the annual economic output of China, according to a study by the McKinsey Global Institute.[51] Thus basic income would be a way to compensate women for the essential care services they already perform and to raise the standard of living for women who devote a substantial portion of their time to unpaid care work.

Some feminists support basic income as a means of guaranteeing minimum financial independence for women.[52] However, others oppose basic income as something that might discourage women from participation in the workforce, reinforcing traditional gender roles of women belonging at home and men at work.[53]

Poverty reduction

Advocates of basic income often argue that it has the potential to reduce or even eradicate poverty.[54]

According to a randomized controlled study in the Rarieda District of Kenya run by the Abdul Latif Jameel Poverty Action Lab at the Massachusetts Institute of Technology (MIT) on the Give Directly program, the impact of an unconditional cash transfer was that for every $1,000 disbursed, there was a $270 increase in earnings, a $430 increase in assets, and a $330 increase in nutrition spending, with no effect on alcohol or tobacco spending.[55]

Milton Friedman, a renowned economist, supported UBI by reasoning that it would help to reduce poverty. He said: "The virtue of [a negative income tax] is precisely that it treats everyone the same way. [...] [T]here’s none of this unfortunate discrimination among people."[56]

Martin Luther King Jr. believed that a basic income was a necessity that would help to reduce poverty, regardless of race, religion or social class. In King's last book before his assassination, Where Do We Go from Here: Chaos or Community?, he said: "I am now convinced that the simplest approach will prove to be the most effective — the solution to poverty is to abolish it directly by a now widely discussed measure: the guaranteed income."[57]

Reduction of medical costs

The Canadian Medical Association passed a motion in 2015 in clear support of basic income and for basic income trials in Canada.[58]

British journalist Paul Mason has stated that universal basic income would probably reduce the high medical costs associated with diseases of poverty. According to Mason, stress diseases like high blood pressure, type II diabetes and the like would probably become less common.[59]

Transparency and administrative efficiency

According to Guy Standing's theories, basic income may be a much simpler and more transparent welfare system than welfare states currently use.[60] Standing suggests that instead of separate welfare programs (including unemployment insurance, child support, pensions, disability, housing support), social support systems could be combined into one income, or could be one basic payment that welfare programs could add to.[61] This may require less paperwork and bureaucracy to check eligibility. The Basic Income Earth Network claims that basic income costs less than current means-tested social welfare benefits, and has proposed an implementation that it claims is financially viable.[62][63]

A real-world example of how basic income is being implemented to save money can be seen in a program that is being conducted in the Netherlands. The city councillor for the city of Nijmegen, Lisa Westerveld, said in an interview: "In Nijmegen, we get £88m to give to people on welfare, but it costs £15m a year for the civil servants running the bureaucracy of the current system".[64] Her view is shared by Dutch historian and author Rutger Bregman, who believes the Netherlands' welfare system is flawed, and by economist Loek Groot, who believes the country's welfare system wastes too much money. Outcomes of the Dutch program will be analysed by Groot, a professor at the University of Utrecht who hopes to learn if a guaranteed income might be a more effective approach.[65] However, other proponents argue for adding basic income to existing welfare grants, rather than replacing them. [check quotation syntax] Support for basic income has been expressed by several people associated with conservative political views. While adherents of such views generally favor minimization or abolition of the public provision of welfare services, some have cited basic income as a viable strategy to reduce the amount of bureaucratic administration that is prevalent in many contemporary welfare systems.[66][67]

Wage slavery and alienation

Frances Fox Piven argues that an income guarantee would benefit all workers by liberating them from the anxiety that results from the "tyranny of wage slavery" and provide opportunities for people to pursue different occupations and develop untapped potentials for creativity.[68] André Gorz saw basic income as a necessary adaptation to the increasing automation of work, yet basic income also enables workers to overcome alienation in work and life and to increase their amount of leisure time.[69]

These arguments imply that a universal basic income would give people enough freedom to pursue work that is satisfactory and interesting even if that work does not provide enough resources to sustain their everyday living. One example is that of Nelle Harper Lee, who lived as a single woman in New York City in the 1950s, writing in her free time and supporting herself by working part-time as an airline clerk. She had written several long stories, but achieved no success of note. One Christmas in the late fifties, a generous friend gave her a year's wages as a gift with the note: "You have one year off from your job to write whatever you please. Merry Christmas". A year later, Lee had produced a draft of To Kill a Mockingbird, a novel that subsequently won the Pulitzer Prize.[70][71] Most proponents of UBI argue that the net creative output from even a small percentage of basic income subscribers would be a significant contributor to human productivity, one that might be lost if these people are not given the opportunity to pursue work that is interesting to them.

Welfare trap

The welfare trap, or poverty trap, is a speculated problem with means-tested welfare. Recipients of means-tested welfare may be implicitly encouraged to remain on welfare due to economic penalties for transitioning off welfare. These penalties include loss of welfare and possibly higher tax rates. Opponents claim that this creates a harsh marginal tax for those rising out of poverty. A 2013 Cato Institute study claimed that workers could accumulate more wealth from the welfare system than they could from a minimum wage job in at least nine European countries. In three of them; Austria, Croatia and Denmark; the marginal tax rate was nearly 100%.[72][73]

Problems associated with the welfare trap may be aggravated by workplace automation: this is discussed in the article on wage subsidy.

Proponents of universal basic income claim that it could eliminate welfare traps by removing conditions to receive such an income, but large-scale experiments have not yet produced clear results.[74]

Pilot programs and experiments

Omitara, one of the two poor villages in Namibia where a local basic income was tested in 2008–2009

Since the 1960s, but in particular since 2010, there have been a number of basic income pilot programs. Some examples include:

  • Experiments with negative income tax in United States and Canada in the 1960s and 1970s.
  • The province of Manitoba, Canada experimented with Mincome, a basic guaranteed income, in the 1970s. In the town of Dauphin, Manitoba, labor only decreased by 13%, much less than expected.[75][76]
  • The basic income grant in Namibia, launched in 2008 and ended in 2009.[77]
  • An independent pilot implemented in São Paulo, Brazil launched in 2009.[78]
  • Basic income trials in several villages in India.[79] whose government has proposed a guaranteed basic income for all citizens.[80]
  • The GiveDirectly experiment in Nairobi, Kenya, the longest-running basic income pilot as of 2017.[81]
  • An experiment in the city of Utrecht in the Netherlands, launched in early 2017, that is testing different rates of aid.[80]
  • A three-year basic income pilot that the Ontario provincial government, Canada , launched in the cities of Hamilton, Thunder Bay and Lindsay in July 2017.[82] Although called basic income, it was only made available to those with a low income and funding would be removed if they obtained employment,[83] making it more related to the current welfare system than true basic income. The pilot project was canceled on 31 July 2018 by the newly elected Progressive Conservative government under Ontario Premier Doug Ford.
  • A two-year pilot the Finnish government began in January 2017 which involved 2,000 subjects[84][85] In April 2018, the Finnish government rejected a request for funds to extend and expand the program from Kela (Finland's social security agency).[86]
  • A project called Eight in a village in Fort Portal, Uganda, that a nonprofit organization launched in January 2017, which provides income for 56 adults and 88 children through mobile money.[87]
  • Social Income started paying out basic incomes in the form of mobile money in 2020 to people in need in Sierra Leone. The international initiative is financed by contributions from people in the Global North, who donate 1% of their monthly paychecks.[88]
  • In a study in several Indian villages, basic income in the region raised the education rate of young people by 25%.[89]

Examples of payments with similarities

Alaska Permanent Fund

The Permanent Fund of Alaska in the United States provides a kind of yearly basic income based on the oil and gas revenues of the state to nearly all state residents. However, the payment is not high enough to cover basic expenses (it has never exceeded $2,100) and is not a fixed, guaranteed amount. For these reasons, it is not considered a basic income.


Quasi-UBI programs

  • Pension: A payment which in some countries is guaranteed to all citizens above a certain age. The difference from true basic income is that it is restricted to people over a certain age.
  • Child benefit: A program similar to pensions but restricted to parents of children, usually allocated based on the number of children.
  • Conditional cash transfer: A regular payment given to families, but only to the poor. It is usually dependent on basic conditions such as sending their children to school or having them vaccinated. Programs include Bolsa Família in Brazil, Reddito di Cittadinanza in Italy and Programa Prospera in Mexico.
  • Guaranteed minimum income differs from a basic income in that it is restricted to those in search of work and possibly other restrictions, such as savings being below a certain level. Example programs are unemployment benefits in the U.K. and the revenu de solidarité active in France.

Examples

  • Bolsa Família is a large social welfare program in Brazil that provides money to many low-income families in the country. The system is related to basic income, but has more conditions, like asking the recipients to keep their children in school until graduation. Brazilian Senator Eduardo Suplicy championed a law that ultimately passed in 2004 that declared Bolsa Família the first step towards a national basic income. However, the program has not yet been expanded to a full basic income.
  • The Rythu Bandhu scheme is a welfare scheme started in the state of Telangana, India in May 2018, aimed at helping farmers. Each farm owner receives 4,000 INR per acre twice a year for rabi and kharif harvests. A budget allocation of 120 billion INR (1.6 million USD as of June 2020) was made in the 2018–2019 state budget. The scheme offers financial help of 8,000 INR (105 USD as of June 2020) per year to each farmer (for two crops), holds no cap on money disbursed to the number of acres of land owned, and does not discriminate between rich or poor landowners.[90] Preliminary results in 2018 were promising for getting farmers funding they need to invest in farming — procuring fertilizers, seeds, pesticides, and other materials. The first phase of the survey concluded that 85% of farmers received checks for amounts ranging from 1,000 INR (13 USD as of June 2020) to 20,000 INR (262 USD as of June 2020) for farmland comprising less than an acre to about five acres, and about 10% of farmers received checks for amounts between 20,000 INR to 50,000 INR (654 USD as of June 2020). Only 1% of farmers got amounts more than 50,000 INR. The spending pattern revealed that 28.5% of farmers opted to buy seed, about 18% spent the money on fertilizer, 15.4% on new agricultural assets including farm equipment, and 8.6% on pesticides. Only 4.4% of beneficiaries said they utilized it for household consumption and an insignificant percentage for repayment of loans.[91] The scheme received a high satisfaction rate of 92% from farmers since other forms of capital investment like welfare or loans had many strings attached to it and would not reach the farmers before the cropping season starts. Other states and countries are following the development of the program to see if they can implement it for their farmers.[citation needed] This is a new type of program that is considered an embryonic UBI or quasi-UBI to replace traditional systems of agricultural support.[92]
  • Citizen Capitalism is a supplemental income program proposed by legal scholar Lynn Stout and her co-authors Tamara Belinfanti and Sergio Gramitto of the book Citizen Capitalism: How A Universal Fund Can Provide Influence and Income to All, published in 2019. In the book, the authors propose building a not-for-profit universal fund composed of shares donated by corporations and philanthropists in which every American would receive one share. These shares could not be sold, donated, or borrowed against. However, each "citizen shareholder" would receive an even portion of the net dividends paid out by shares in the fund, therefore contributing to the amelioration of income inequality. Each shareholder would also receive additional influence in the form of a vote (corresponding to their shares in the fund), potentially providing for a significantly expanded degree of citizen engagement in the role of public corporations in American society.[93]

Basic income in cryptocurrencies and as part of social media apps

Nimses is a concept that offers universal basic income to every member of its system.[94] The idea of Nimses consists of a time-based currency called Nim (1 nim = 1 minute of life). Every person in Nimses receives nims that can be spent on different goods and services. This concept was initially adopted in Eastern Europe.[95]

Electroneum is a cryptocurrency project which uses a mobile application to pay users.[96] The first KYC/AML compliant cryptocurrency, Electroneum enables users to mine[97] using their mobile phone through a simulated mining system. The system pays up to $3.00 per month to its users, with the goal of enabling the world's unbanked population with financial freedom.[98] The cryptocurrency can currently be used to purchase mobile top-ups from the South African telecommunications company The Unlimited[99] as well as to transact with any business that has integrated the Electroneum API, or directly between individuals.

In response to COVID-19

Democratic politicians Andrew Yang, Alexandria Ocasio-Cortez and Tulsi Gabbard were early advocates for universal basic income in response to the COVID-19 pandemic.[100][101][102] On 17 March, the Trump administration indicated that some payment would be given to non-millionaires as part of a stimulus package.[103][104] This amounts to $1,200 per adult and $500 per child in the CARES Act, which passed unanimously in the Senate and House and was signed into law by President Trump in late March.[105][106]

Mayors in 11 U.S. cities[lower-alpha 1] plan to establish basic income pilot programs in response to the economic downturn brought by the pandemic.[107]

Public opinion

Support for a universal basic income varies widely across Europe, as shown by a recent edition of the European Social Survey.[citation needed] A high share of the population tends to support the scheme in southern and eastern European Union countries, while enthusiasm tends to be lower in western European countries such as France and Germany, and even lower in Scandinavian countries such as Norway and Sweden. Individuals who face greater economic insecurity because of low income and unemployment tend to be more supportive of a basic income.[108] Overall, support tends to be on average higher in countries where existing unemployment benefits are not generous or the receipt of benefits is conditioned on certain job search behavior. [109] An April 2020 public poll by YouGov found that the majority of the public in the United Kingdom supported a universal basic income in response to the 2020 COVID-19 pandemic, with only 24% unsupportive.[110]

A poll conducted by the University of Chicago in March 2020 indicated that 51% of Americans aged 18–36 support a monthly basic income of $1,000.[111] Support for universal basic income spans the political spectrum, with conservatives, progressives, and libertarians all having camps both for and against basic income.[32]

Petitions, polls and referendums

  • 2008: an official petition for basic income was launched in Germany by Susanne Wiest.[112] The petition was accepted, and Susanne Wiest was invited for a hearing at the German parliament's Commission of Petitions. After the hearing, the petition was closed as "unrealizable."[113]
  • 2013–2014: a European Citizens' Initiative collected 280,000 signatures demanding that the European Commission study the concept of an unconditional basic income.[114]
  • 2015: a citizen's initiative in Spain received 185,000 signatures, short of the required number to mandate that the Spanish parliament discuss the proposal.[115]
  • 2016: the world's first universal basic income referendum in Switzerland on 5 June 2016 was rejected with a 76.9% majority.[1][116] Also in 2016, a poll showed that 58% of the EU's population is aware of basic income, and 65% would vote in favor of the idea.[117]
  • 2017: Politico/Morning Consult asked 1,994 Americans about their opinions on several political issues including national basic income; 43% either "strongly supported" or "somewhat supported" the idea.[118]
  • 2019: in a September poll conducted by The Hill and HarrisX, 49% of U.S. registered voters support basic income, up 6% from a similar survey conducted six months earlier.[119]
  • 2019: In November, an Austrian initiative received approximately 70,000 signatures but failed to reach the 100,000 signatures needed for a parliamentary discussion. The initiative was started by Peter Hofer. His proposal suggested a basic income of 1200 EUR for every Austrian citizen.[120]
  • 2020: A public poll by YouGov in 2020 has found that the majority of people in the United Kingdom support a universal basic income, with only 24% unsupportive.[110] In March 2020, over 170 MPs and Lords from all political parties signed a letter calling on the government to introduce a basic income during the coronavirus pandemic.[121]

Prominent advocates

Main page: Social:List of advocates of basic income

Prominent contemporary advocates include Economics Nobel Prize winners Peter Diamond and Christopher Pissarides,[122] tech investor and engineer Elon Musk,[123] political philosopher Philippe Van Parijs,[124] former finance minister of Greece Yanis Varoufakis,[125] Facebook founder Mark Zuckerberg,[126][127] eBay founder Pierre Omidyar,[128] and entrepreneur and nonprofit founder Andrew Yang, who ran for the Democratic nomination for the 2020 United States presidential election on a platform of instituting a $1,000-a-month universal basic income.[129]

On 13 March 2020, Democratic representatives Ro Khanna and Tim Ryan introduced legislation to provide payments to low-income citizens during the COVID-19 crisis via an earned income tax credit.[130][131] On 16 March, Republican senators Mitt Romney and Tom Cotton stated their support for a $1,000 basic income, the former saying it should be a one-time payment to help with short-term costs.[132] Senator Bernie Sanders has called for $2,000 in monthly basic income to help "every person in the United States, including the undocumented, the homeless, the unbanked, and young adults excluded from the CARES Act."[133] House Speaker Nancy Pelosi has also suggested that a basic income could be "worthy of attention."[134]

On 12 April 2020, Pope Francis called for the introduction of basic income in response to coronavirus.[135]

Prominent critics

See also


References

Footnotes

  1. ↑ Including Compton, Los Angeles , and Oakland, California; Atlanta, Georgia; Shreveport, Louisiana; St. Paul, Minnesota; Jackson, Mississippi; Newark, New Jersey; Columbia, South Carolina; and Tacoma, Washington

Citations

  1. ↑ 1.0 1.1 "Vorlage Nr. 601 – Vorläufige amtliche Endergebnisse" (in de-CH). admin.ch. https://www.admin.ch/ch/d/pore/va/20160605/det601.html. Retrieved 28 July 2016. 
  2. ↑ 2.0 2.1 "BIEN | Basic Income Earth Network". http://basicincome.org/. Retrieved 8 January 2019. 
  3. ↑ Mattei, Lauro; Sánchez-Ancochea, Diego (2011). "Bolsa Família, poverty and inequality: Political and economic effects in the short and long run". Global Social Policy 11 (2–3): 1. doi:10.1177/1468018111421297. 
  4. ↑ Bryce Covert, "What Money Can Buy: The promise of a universal basic income – and its limitations", The Nation, vol. 307, no. 6 (10 / 17 September 2018), p. 33.
  5. ↑ Spicker, Paul (19 January 2011). How social security works. Bristol University Press. doi:10.2307/j.ctt1t896gv. ISBN 9781447342854. 
  6. ↑ "History of Basic Income". Basic Income Earth Network.
  7. ↑ Sloman, Peter (2015). Beveridge's rival: Juliet Rhys-Williams and the campaign for basic income, 1942-55 (Report). New College, Oxford. https://www.repository.cam.ac.uk/bitstream/handle/1810/251445/Sloman%202015%20Contemporary%20British%20History.pdf. Retrieved 26 April 2017. 
  8. ↑ Fitzpatrick, Tony (1999). Freedom and Security: an introduction to the basic income debate (1st publ. ed.). New York: St. Martin's Press. p. 42. ISBN 978-0-312-22313-7. 
  9. ↑ "Citizen's Income – An unconditional, nonwithdrawable income paid to every individual as a right of citizenship.". https://citizensincome.org/. Retrieved 8 January 2019. 
  10. ↑ 10.0 10.1 "American President: Richard Milhous Nixon: Domestic Affairs". MillerCenter.org. Rector and Visitors of the University of Virginia. http://millercenter.org/academic/americanpresident/nixon/essays/biography/4. Retrieved 28 April 2010. 
  11. ↑ Blaschke, Ronald (January 2010). "The basic income debate in Germany and some basic reflections".
  12. ↑ "Basic Income A Green Paper". socialjustice.ie. September 2002. https://www.socialjustice.ie/sites/default/files/attach/policy-issue-article/3304/16601.pdf. Retrieved 22 June 2020. 
  13. ↑ Zhong, Raymond (31 January 2017). "India Considers Fighting Poverty With a Universal Basic Income". https://blogs.wsj.com/indiarealtime/2017/01/31/india-considers-fighting-poverty-with-a-universal-basic-income/. 
  14. ↑ Simon, Matt (2019-04-01). "Andrew Yang's Presidential Bid Is So Very 21st Century". Wired. ISSN 1059-1028. https://www.wired.com/story/andrew-yangs-presidential-bid-is-so-very-21st-century/. "...in order to pay for meaningful retraining, if retraining works. My plan is to just give everyone $1,000 a month, and then have the economy geared more to serve human goals and needs." 
  15. ↑ Schneider, Nathan (6 January 2015). "Why the Tech Elite Is Getting Behind Universal Basic Income". Vice. https://www.vice.com/read/something-for-everyone-0000546-v22n1. 
  16. ↑ 16.0 16.1 16.2 Sheahen, Allan. Basic Income Guarantee: Your Right to Economic Security. New York: Palgrave Macmillan, 2012.
  17. ↑ Koga, Kenya. "Pennies From Heaven." Economist 409.8859 (2013): 67–68. Academic Search Complete. Web. 12 April 2016.
  18. ↑ Evans, David K.; Popova, Anna (1 May 2014) (PDF). Cash Transfers and Temptation Goods: A Review of Global Evidence. Policy Research Working Paper 6886.. The World Bank. Office of the Chief Economist.. pp. 1–3. http://documents.worldbank.org/curated/en/617631468001808739/Cash-transfers-and-temptation-goods-a-review-of-global-evidence. Retrieved 18 December 2017. 
  19. ↑ Shutt, Harry (2010). Beyond the Profits System: Possibilities for the Post-Capitalist Era. Zed Books. p. 124. ISBN 978-1-84813-417-1. "a flat rate payment as of right to all resident citizens over the school leaving age, irrespective of means of employment status...it would in principle replace all existing social-security entitlements with the exception of child benefits." 
  20. ↑ Wright, Erik Olin. "Basic Income as a Socialist Project," paper presented at the annual US-BIG Congress, 4–6 March 2005 (University of Wisconsin).
  21. ↑ "Basic Income". Media Hell. http://www.mediahell.org/capitalsocial.htm. Retrieved 9 December 2012. 
  22. ↑ Russell, Bertrand. Roads to Freedom. Socialism, Anarchism and Syndicalism, London: Unwin Books (1918), pp. 80–81 and 127
  23. ↑ Marangos, John (2003). "Social Dividend versus Basic Income Guarantee in Market Socialism". International Journal of Political Economy 34 (3): 20–40. doi:10.1080/08911916.2004.11042930. 
  24. ↑ Standing, Guy (2017). Basic Income: And how we can make it happen. London: Pelican Books. ISBN 9780141985480. OCLC 993361670. 
  25. ↑ Standing, Guy (2016). The Corruption of Capitalism: Why rentiers thrive and work does not pay. London: Biteback Publishing. ISBN 9781785900440. OCLC 954428078. 
  26. ↑ "Chancellor rejects widespread calls for universal basic income, saying government 'not in favour'". 24 March 2020. https://www.independent.co.uk/news/uk/politics/coronavirus-universal-basic-income-rishi-sunak-ubi-rebecca-long-bailey-a9421281.html. 
  27. ↑ "Recap: Sky News' special report into coronavirus care home deaths". https://news.sky.com/story/live-total-number-of-deaths-drops-for-second-consecutive-week-11986907. 
  28. ↑ 28.0 28.1 "Majority of Economists Surveyed Are against the Universal Basic Income". 2016-06-30. http://www.nationalreview.com/corner/437296/economists-against-ubi. Retrieved 28 July 2016. 
  29. ↑ "Poll Results | IGM Forum". http://www.igmchicago.org/igm-economic-experts-panel/poll-results?SurveyID=SV_bPBNf8WXrT4jmtf. Retrieved 28 July 2016. 
  30. ↑ "The Changing Nature of Work". http://www.worldbank.org/en/publication/wdr2019. Retrieved 7 October 2018. 
  31. ↑ Rushkoff, Douglas (10 October 2018). "Universal Basic Income Is Silicon Valley's Latest Scam". https://medium.com/s/free-money/universal-basic-income-is-silicon-valleys-latest-scam-fd3e130b69a0. Retrieved 20 January 2019. 
  32. ↑ 32.0 32.1 Dolan, Ed (27 January 2014). "A Universal Basic Income: Conservative, Progressive, and Libertarian Perspectives". EconoMonitor. http://www.economonitor.com/dolanecon/2014/01/27/a-universal-basic-income-conservative-progressive-and-libertarian-perspectives-part-3-of-a-series/. Retrieved 29 September 2014. 
  33. ↑ Tanner, Michael. "The Pros and Cons of a Guaranteed National Income." Policy Analysis. Cato institute, 12 May 2015, Web. 2, 7 March 2016.
  34. ↑ "Basic Income, sustainable consumption and the 'DeGrowth' movement". BIEN. 13 August 2016. http://basicincome.org/news/2016/08/basic-income-sustainable-consumption-degrowth-movement/. Retrieved 14 December 2016. 
  35. ↑ "urn:nbn:se:su:diva-7385: Just Distribution : Rawlsian Liberalism and the Politics of Basic Income". Diva-portal.org. http://www.diva-portal.org/smash/record.jsf?pid=diva2:198164. Retrieved 16 February 2014. 
  36. ↑ 36.0 36.1 Gilles Séguin. "Improving Social Security in Canada – Guaranteed Annual Income: A Supplementary Paper, Government of Canada, 1994". Canadiansocialresearch.net. http://www.canadiansocialresearch.net/ssrgai.htm#Disposable. Retrieved 16 August 2013. 
  37. ↑ The Need for Basic Income: An Interview with Philippe Van Parijs, Imprints, Vol. 1, No. 3 (March 1997). The interview was conducted by Christopher Bertram.
  38. ↑ Belik, Vivian (5 September 2011). "A Town Without Poverty? Canada's only experiment in guaranteed income finally gets reckoning". Dominionpaper.ca. http://www.dominionpaper.ca/articles/4100. Retrieved 16 August 2013. 
  39. ↑ A guaranteed annual income: From Mincome to the millennium (PDF) Derek Hum and Wayne Simpson
  40. ↑ "A universal basic income experiment in Alaska shows employment didn't drop". Quartz. https://qz.com/1205591/a-universal-basic-income-experiment-in-alaska-shows-employment-didnt-drop/. Retrieved 20 November 2018. 
  41. ↑ "Critics of universal basic income argue giving people money for nothing discourages working—but a study of Alaska's 36-year-old program suggests that's not the case". Business Insider. https://www.businessinsider.com/alaska-universal-basic-income-employment-2018-10. Retrieved 20 November 2018. 
  42. ↑ "Basic Income Grant Coalition: Pilot Project". BIG Coalition Namibia. http://www.bignam.org/BIG_pilot.html. Retrieved 24 July 2013. 
  43. ↑ "Otjivero residents to get bridging allowance as BIG pilot ends". Archived from the original on 3 March 2012. https://web.archive.org/web/20120303041632/http://www.namibian.com.na/news-articles/national/full-story/archive/2009/december/article/otjivero-residents-to-get-bridging-allowance-as-big-pilot-ends/. Retrieved 28 July 2016. 
  44. ↑ Meade, James Edward. Full Employment Regained?, Cambridge University Press, 1995, ISBN:0-521-55697-X
  45. ↑ Wolf Chiappella (2013-11-27). "A universal income is not such a silly idea". Tim Harford. http://timharford.com/2013/11/a-universal-income-is-not-such-a-silly-idea/. Retrieved 28 July 2016. 
  46. ↑ "A Basic Income for All". http://bostonreview.net/archives/BR25.5/vanparijs.html. Retrieved 14 December 2016. 
  47. ↑ K. Widerquist. Independence, Propertylessness, and Basic Income – A Theory of Freedom as the Power to Say No. Palgrave Macmillan. http://www.palgrave.com/br/book/9781137274724. Retrieved 24 April 2018. 
  48. ↑ 48.0 48.1 McKay, Ailsa (2001). "Rethinking Work and Income Maintenance Policy: Promoting Gender Equality Through a Citizens' Basic Income". Feminist Economics 7 (1): 97–118. doi:10.1080/13545700010022721. 
  49. ↑ McKay, Ailsa (2005). The Future of Social Security Policy: Women, Work and a Citizens Basic Income. Routledge. ISBN 9781134287185. 
  50. ↑ McKay, Ailsa (2007). "Why a citizens' basic income? A question of gender equality or gender bias". Work, Employment & Society 21 (2): 337–348. doi:10.1177/0950017007076643. 
  51. ↑ Annie Lowrey, "Give People Money, How a Universal Basic Income Would End Poverty, Revolutionize Work, and Remake the World," (New York: Crown, 2018), p. 151
  52. ↑ Kaori Katada. Basic Income and Feminism: in terms of "the gender division of labor". http://www.basicincome.org/bien/pdf/munich2012/katada.pdf. 
  53. ↑ Caitlin McLean (September 2015). "Beyond Care: Expanding the Feminist Debate on Universal Basic Income". WiSE. https://www.gcu.ac.uk/wise/media/gcalwebv2/theuniversity/centresprojects/wise/90324WiSE_BriefingSheet.pdf. 
  54. ↑ Bregman, Rutger (6 March 2017). "Utopian thinking: the easy way to eradicate poverty – Rutger Bregman". The Guardian. https://www.theguardian.com/commentisfree/2017/mar/06/utopian-thinking-poverty-universal-basic-income. 
  55. ↑ "Research at GiveDirectly". https://www.givedirectly.org/research-at-give-directly. Retrieved 10 October 2018. 
  56. ↑ Orfalea, Matt (11 December 2015). "Why Milton Friedman Supported a Guaranteed Income (5 Reasons)". https://medium.com/basic-income/why-milton-friedman-supported-a-guaranteed-income-5-reasons-da6e628f6070. Retrieved 4 December 2018. 
  57. ↑ King, Martin Luther Jr. (2010). Where Do We Go from Here: Chaos or Community?. King, Coretta Scott; Harding, Vincent. Boston: Beacon Press. ISBN 9780807000670. OCLC 610201386. 
  58. ↑ "Opinion – Basic income: just what the doctor ordered". https://www.thestar.com/opinion/commentary/2015/08/26/basic-income-just-what-the-doctor-ordered.html. Retrieved 24 April 2018. 
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  60. ↑ Standing, Guy (2008). "How Cash Transfers Promote the Case for Basic Income". Basic Income Studies 3 (1). doi:10.2202/1932-0183.1106. ISSN 1932-0183. https://eprints.soas.ac.uk/15656/1/How%20Cash%20Transfers%20Promote%20the%20Case%20for%20Basic%20Income%2C%20published%20BIS.pdf. 
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  64. ↑ Boffey, Daniel (26 December 2015). "Dutch city plans to pay citizens a 'basic income', and Greens say it could work in the UK". https://www.theguardian.com/world/2015/dec/26/dutch-city-utrecht-basic-income-uk-greens. Retrieved 20 November 2018. 
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  139. ↑ @LHSummers (24 May 2018). "The fans of programs that accept & even encourage joblessness, like universal basic income, forget that human satisfaction doesn’t come primarily from material comfort, but from purpose, a feeling of accomplishment and the social support that often occurs in a work environment.". https://twitter.com/LHSummers/status/999621263663554561. 
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  141. ↑ Cockshott, Paul (19 February 2018). Why basic income is a bad idea. Retrieved 29 May 2020.

Further reading

External links




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