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Basic income guarantee

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Basic income guarantee

Not to be confused with Minimum income or Minimum wage.

A basic income (also called basic income guarantee, unconditional basic income, universal basic income or citizen’s income) is a proposed system[1] of social security that regularly provides each citizen with a sum of money unconditionally.

Basic income is entirely unconditional: the only requirement for receiving it is to be a citizen and/or resident of the country. In contrast, a guaranteed minimum income may be conditional upon participating in government enforced labor or other means testing.

A basic income of any amount less than the social minimum is sometimes referred to as a 'partial basic income'.

Similar proposals for "capital grants provided at the age of majority" date to Thomas Paine's Agrarian Justice of 1795, there paired with asset-based egalitarianism.

Arguments

The philosophical/moral need for basic income had been well articulated in terms of human right by John Locke: the right to Life, Liberty and Property (means of securing one's own and dependents needs).

In developed capitalist societies the means to life is unconditional living income. In other words, if the means to life is made conditional (on employment, for example), the right to life also becomes conditional.

One of the arguments for a basic income was articulated by the French economist and philosopher André Gorz:

...The connection between more and better has been broken; our needs for many products and services are already more than adequately met, and many of our as-yet-unsatisfied needs will be met not by producing more, but by producing differently, producing other things, or even producing less. This is especially true as regards our needs for air, water, space, silence, beauty, time and human contact...

From the point where it takes only 1,000 hours per year or 20,000 to 30,000 hours per lifetime to create an amount of wealth equal to or greater than the amount we create at the present time in 1,600 hours per year or 40,000 to 50,000 hours in a working life, we must all be able to obtain a real income equal to or higher than our current salaries in exchange for a greatly reduced quantity of work...

Neither is it true any longer that the more each individual works, the better off everyone will be. The present crisis has stimulated technological change of an unprecedented scale and speed: 'the micro-chip revolution'. The object and indeed the effect of this revolution has been to make rapidly increasing savings in labour, in the industrial, administrative and service sectors. Increasing production is secured in these sectors by decreasing amounts of labour. As a result, the social process of production no longer needs everyone to work in it on a full-time basis. The work ethic ceases to be viable in such a situation and work-based society is thrown into crisis...
André GorzCritique of economic Reason, Gallile, 1989

The Basic Income Earth Network (BIEN) describes one of the benefits of a basic income as having a lower overall cost than that of the current means-tested social welfare benefits.,[2] and BIEN has made several fully financed proposals.[3]

naturalfinance.net describes several benefits from basic income:[4]

  • The benefits of technology and automation make work less necessary, and are only possible if people can afford the outputs of technology and automation.
  • Wealth redistribution is the best possible economic development program because the wealthy don't spend as great a portion of their income as the poor do.
  • Wealth redistribution does not harm the wealthy, because all money is spent until it ends up with a saver. So, taxes paid eventually return to the tax payer.
  • Basic income is the most efficient possible form of wealth redistribution because there is no bureaucratic overhead needed to filter recipients, or find and punish abusers.
  • Basic income as an alternative to public retirement pensions (such as social security in the US) is the only possible prevention of generational theft that will occur if the funding sustainability of future retiree pensions and care is threatened
  • Reduced crime as a result of lower levels of desperation. If loss of income is a consequence of crime, it may in turn create more crime.
  • Balanced power in the labour market as a result of not needing work out of desperation, and better competitive position of workers if some people choose not to work.[5]
  • Better work opportunities as a result of people better able to afford an education or business start up.
  • Smaller government made possible and attractive by the alternative of increased basic income to offset any program cost reduction. Viewed this way, the cost of every government program is paid for equally by each citizen, even if the source of government revenue is progressive income taxation.
  • Social justice is achieved efficiently and automatically, with less requirement on charity and welfare.
  • It is easier for volunteer home owners to help the poor and secluded through group homes by being able to rely on their certain income. Its possible and easier for the disadvantaged to group up and help themselves in the same manner.
  • Natural finance's definition of social dividends (variable basic income: tax revenue surplus over social program expenses) essentially allows the level of basic income paid to citizens to rise with economic, productivity, and automation growth. The affordability of basic income adjusts automatically to the performance of the economy.

Difference between basic income and guaranteed income

Basic income and traditional welfare systems both share goals of assisting the poor. Unconditional Basic income provides that assistance without trapping people into continued eligibility for welfare, and thus not trapping them into poverty. Basic income is a supplement that is not reduced by any work income earned. (Welfare in North America is reduced by earnings). Guaranteed income is almost exactly like welfare, other than removing application forms and basing the grant on the person's tax return. Guaranteed income promises a supplemental grant for only the difference between other income and the guarantee level. The appeal of guaranteed income is based on the precept that if only the poor receive free money, then the amount of free money given to each can be higher.

Pitfalls of guaranteed or minimum income

  • Workers employed for part of the year would be uncompensated.
  • Part-time work would be unlikely to be compensated.
  • Those unemployed at the beginning of the year would be unlikely to find compensated work until the beginning of the following year.
  • Strong incentives to form unofficial untaxed cash arrangements with employers, or pay someone in the family who is ineligible for minincome
  • Business owners and others would prefer to be paid every 3 years instead of every year.
  • Where the tax code allows losses, it may be abused to collect minincome grants.
  • Because it is completely unpredictable what individual manipulations society's members might make to collect guaranteed income, its total cost is completely unpredictable compared to basic income.

The same paper speculates that misunderstanding basic income and guaranteed income as essentially similar concepts may be an intentional misunderstanding. If basic income can be misunderstood as something with major flaws, then it can be forever avoided.[6]

Criticisms

Disincentive to work

One critical view of Basic Income theorizes that it would have a negative effect on work incentive[7][8] and labor supply. Even when the benefits are not permanent, the hours worked—by the recipients of the benefit—are observed to decline by 5%, a decrease of 2 hours in a typical 40 hour work week, in one study:

While experiments have been conducted in the United States and Canada, those participating knew that their benefits were not permanent and, consequently, they were not likely to change their behaviour as much or in the same manner had the GAI been ongoing. As a result, total hours worked fell by about five percent on average. The work reduction was largest for second earners in two-earner households and weakest for the main earner. Further, the negative work effect was higher the more generous the benefit level.[7]

However, in studies of the Mincome experiment in rural Manitoba, the only two groups who worked less in a significant way 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.[9] Under Mincome, "the reduction of work effort was modest: about one per cent for men, three per cent for wives, and five per cent for unmarried women."[10]

Another study that contradicted such decline in work incentive was the Namibian pilot project implemented in 2008 and 2009 in the Omitara village; the assessment of the project after its conclusion found that economic activity actually increased, particularly through the launch of small businesses, and reinforcement of the local market by increasing households' buying power.[11]

The reciprocity objection

A frequent objection to basic income is the lack of reciprocity due to the unconditionality of basic income. Opponents like John Rawls see a moral objection of giving money to people without making sure that they will actually contribute to the economy in return.[12]

Examples of implementation

United States

The U.S. has an earned income tax credit for low-income taxpayers. In 2006 a bill written by members of the advocacy organization USBIG[13] to transform the credit into a partial basic income was introduced in the US Congress but did not pass.[14]

Alaska

Main article: Alaska Permanent Fund

The U.S. State of Alaska has a system which provides each citizen with a share of the state's oil revenues,[15] although this amount, $878.00 for the whole of 2012,[16] is far from enough to live on. The Alaska basic income is subject to income tax on the federal level. That way the "basic income" works like a negative income tax but with a "prebate" instead of a "rebate" (as far as state finances are concerned).

Negative income tax experiments

Main article: Negative income tax

Negative income tax is a form of guaranteed/minimum income, and not basic income. The benefit goes to 0 once fairly low levels of income are earned.

Namibia

From January 2008 to December 2009, a pilot project with a basic income grant was implemented in the Namibian village of Omitara (or Otjivero-Omitara) by the Namibian Basic Income Grant Coalition.[17][18] It was mainly funded by a German Protestant church, by individual contributions of German and Namibian citizens and by contributions of the German Ministry for Cooperation. The amount paid out per head was N$ 100 (around US$ 12).

Six months after the launch, the project has been found to significantly reduce child malnutrition and increase school attendance. It was also found to increase the community's income significantly above the actual amount from the grants as it allowed citizens to partake in more productive economic activities.[19][20] The project team states that this increase in economic activity contradicts critics' claims that a basic income would lead to laziness and dependency.[11]

After the conclusion of the pilot project phase, a monthly bridging-allowance of N$ 80 (around US$ 10) to all who participated in the pilot was paid regularly until March 2012.[11] One of the conclusions of the project was that, even with the restriction that only residents of the village for over a year since the pilot's start could benefit from the grant, there was a significant migration towards Otjivero-Omitara, despite the fact that the migrants wouldn't receive the grant. The project concluded that this phenomenon reveals the need to introduce such basic income systems as a universal national grant, in order to avoid migration to particular regions, towns or households.[11] Another finding of the project was that after the introduction of the pilot, overall crime rates fell by 42%, and specifically stock theft fell by 43% and other theft by nearly 20%.[11]

The above-mentioned conclusions about the effects of the project in Omitara have been derived from two empirical studies conducted by the Basic Income Grant Coalition: one study that covers the first 6 months of the project[21] and a second study about the first 12 months of the project.[22] No further empirical studies or project assessments have been published.

There is no public access to the project database. In a Namibian daily, the project representatives confirmed the lack of public access to their data and justified it.[23]

The design of the project and the conduct of the empirical studies have been criticized by some authors for intransparent procedure and inappropriate methods.[24]

The Government of the Republic of Namibia has repeatedly argued against the introduction of a Basic Income Grant and has not changed its mind during and after the pilot project.

In May 2012, the community leader of Otjivero-Omitara, Ernst Gariseb, told a journalist of a Namibian newspaper: "Since two decades we are sitting here without work, development and perspectives." The journalist concluded: "Despite the support of the BIG there is not any development to be seen in Otjivero."[25]

Iran

Main article: Iranian targeted subsidy plan

In 2011, Iran implemented a basic income grant in order to compensate risen prices of basic goods such as petrol and food.[26] A first assessment of the experiences in Iran is provided by H. Talabani (2011).[27]

Brazil

Main article: Basic income in Brazil

An independent and privately funded pilot project is currently in place in Brazil.[28] It provides R$30 monthly which is 4.4% of the minimum salary in 2013 (as defined by the federal government) and is not enough to meet basic needs.

India

Main article: Basic income in India

Two basic income pilot projects have been underway in India since January 2011.[29] According to the first communication of the pilot projects, positive results have been found.[30] Villages spent more on food and healthcare, children's school performance improved in 68 percent of families, time spent in school nearly tripled, personal savings tripled, and new business startups doubled.[31]

Canada

Main article: Mincome

The city of Dauphin, Manitoba, Canada took part in an experimental guaranteed income program ("Mincome") between 1974 and 1979.[32][33]

Advocacy worldwide

Basic income by country

In many countries, there are politicians, academists, philosophers advocating for a basic income. Several of the following advocates have actually proposed a negative income tax, which is means tested, rather than a basic income. Despite their differences in administration and effect, the two proposals are usually conflated.

Origins

One of the world's outspoken advocates of a basic income system is the Belgian philosopher and political economist Philippe van Parijs.[34] Other advocates include Gunnar Adler-Karlsson (Sweden), Götz Werner (Germany), Saar Boerlage (Netherlands),[35] Herwig Büchele (Austria), fr:Yoland Bresson, André Gorz (France),[36] Michael Hardt and Antonio Negri,[37] Charles Murray[38] (USA), Keith Rankin[39] and Gareth Morgan[40] (New Zealand), es:Daniel Raventós (Spain),[41] Osmo Soininvaara (Finland),[42] Guy Standing (UK),[43][44] Eduardo Suplicy (Brazil)[45] and Walter van Trier (Belgium).[46]

Advocacy by socialists

Many socialists have advocated a form of basic income or a social dividend as a means for distributing the economic profits of publicly owned and state-owned enterprises. These include economists Oskar Lange, Abba Lerner, John Roemer, James Yunker and James Meade.

Erik Olin Wright characterizes basic income as a socialist project and a further reform to capitalism that establishes the basis of a social economy by empowering labor in relation to capital.[47]

In his final book Full employment regained? James Meade states that a return to full employment can be achieved only if, among other things, workers offer their services at a low enough price, that the required wage for unskilled labour would be too low to generate a socially desirable distribution of income, and that therefore a citizen's income would be necessary.[48] James Meade advocated for a social dividend scheme funded on the returns of publicly owned productive assets.[49]

In 1918, philosopher Bertrand Russell argues for a basic income in Roads to Freedom.[50]

Advocacy by Libertarians

Basic income has been promoted by people associated with political views that are generally opposed to the public provision of welfare services, such as libertarianism, economic liberalism, and anarcho-capitalism. These people support basic income as a strategy to reduce the amount of bureaucratic administration that is prevalent in many contemporary welfare systems, as well as acting as a form of compensation for fiat currency inflation. Notable libertarian-capitalist proponents of basic income include Milton Friedman (in the form of negative income tax),[51] Robert Anton Wilson,[52] Gary Johnson (In the form of the fair tax "prebate") and Charles Murray.[53]

It is clear, however, that Friedrich Hayek did not advocate that any modern nation act to implement a minimum income. This was a concept that he attributed to his "Great Society," which was his Utopian liberal society, in the classical sense. Hayek emphasized a minimum income in the far future, and stated clearly that no wealthy countries such as the United States should guarantee any income not available to all around the world, as it would attract mass immigration and overwhelm the procedure:

"It is obvious that for a long time to come it will be wholly impossible to secure an adequate and uniform minimum standard for all human beings everywhere, or at least that the wealthier countries would not be content to secure for their citizens no higher standards than can be secured for all men. But to confine to the citizens of particular countries provisions for a minimum standard higher than that universally applied makes it a privilege and necessitates certain limitations on the free movement of men across frontiers... we must face the fact that we here encounter a limit to the universal application of those liberal principles of policy which the existing facts of the present world make unavoidable."[54]

Many of the people mentioned above have united in the Basic Income Earth Network, which recognizes numerous national advocacy groups. Here is a breakdown of all partisans of basic income, listed by region or country.

Geolibertarians seek to synthesize propertarian libertarianism and a geoist (or Georgist) philosophy of land as commonly and equally owned by all people, citing the classical distinction between unimproved land and private property. The rental value of land is produced by the labors of the community and, as such, rightly belongs to the community at large and not solely to the landholder. A land value tax (LVT) is levied as an annual fee for exclusive access to a section of earth, which is collected and redistributed to the community either through public goods, such as public security or a court system, or in the form of a basic guaranteed income called a citizen's dividend. Geolibertarians view the LVT as a single tax to replace all other methods of taxation, which are deemed unjust violations of the non-aggression principle.

In North America

United States

In his last book, Where Do We Go From Here: Chaos or Community?, published in 1967, Martin Luther King, Jr. calls for a guaranteed income.[55]

In 1968, James Tobin, Paul Samuelson, John Kenneth Galbraith and another 1,200 economists signed a document calling for the US Congress to introduce in that year a system of income guarantees and supplements.[56]

In the 1972 presidential campaign, Senator George McGovern called for a 'demogrant' that was very similar to a basic income. In 1973, Daniel Patrick Moynihan wrote The Politics of a Guaranteed Income (ISBN 978-0-394-46354-4) in which he advocated for the Basic Income and discussed Richard Nixon's GAI proposal.

Mike Gravel, a former US congressman and presidential candidate, advocates a tax rebate paid in a monthly check from the government to all citizens as part of a transition away from income taxes and toward a pre-bated national sales tax (the FairTax).[57][58]

Winners of the Nobel Prize in Economics who fully support a basic income include Herbert A. Simon,[59] Friedrich Hayek,[60][61] James Meade, Robert Solow,[62] and Milton Friedman.[63]

Richard Parncutt argues that income tax is effectively progressive when basic income is combined with flat income tax. The combination would simplify the tax-welfare system.[64]

Ben Wallace argues, in The Common Purpose Manifesto, that a shared base income, incorporating an unconditional basic income with a flat 50% tax rate, is necessary to correct the inevitable income inequalities that arise in free and open markets.[65]

In Oregon, Tax and Conversation[66] is a member-owned organization working to end all tax exceptions via a ballot measure (the initiative process requires 50% of voters plus 1 person to vote yes for it to become law) for 2014.[67] 66% of all dollars from current tax expenditures go to only 20 out of every 100 people with the most money[68] (paid tax on income after exceptions is regressive), and that money would instead be paid unconditionally: each full-year taxfiler will get $700 each month. The total expenditure amount would be slightly less than the current expenditure amount of $24 billion each year, because core government services will get more funding.[69]

Jeremy Rifkin, in his book The End of Work, argued that there may be an increasing need for such measures as automation would reduce the demand for workers in future.[70]

The Green Party of the United States 2010 platform advocated for "a universal basic income (sometimes called a guaranteed income, negative income tax, citizen's income, or citizen dividend). This would go to every adult regardless of health, employment, or marital status, in order to minimize government bureaucracy and intrusiveness into people's lives."[71]

Canada

The Green Party of Canada,[72] the francophone parti Québec Solidaire[73] and conservative senator Hugh Segal[74] advocate for basic income in Canada.

Basic Income Movement in Europe

The Basic Income Earth Network, first called "Basic income European Network" (BIEN) until 2004, was the first international organization trying to promote basic income internationally. It gathered essentially a group of researchers and economists working on the topic. BIEN recognizes numerous national advocacy groups, and coordinates international communication through its newsletter and a biannual congress.

Following a number of meetings in different cities in Europe (Vienna 2005, Basel 2007, Berlin 2008, Herzogenrath 2009, and Vienna 2011), several organizations such as the German Round-table for basic income have decided to work together for promoting basic income at the European level. In Vienna (2011) they agreed on the preparation of a European Citizens' Initiative.[75]

On 14 January 2013, the European citizens' initiative registration was accepted by the EU commission, thus triggering a 12 months aiming at collecting more than one million signatures in the European Union.[76]

Belgium

Historically in Belgium, the most active group promoting basic income is the movement Vivant and the philosopher Philippe Van Parijs - who founded the Basic Income European network (BIEN) in 1987. A Belgian basic income network affiliated to the BIEN was founded in 2012 in Brussels[77]

Czech Republic

During short period of Vlastimil Tlustý ministry of finance, he wanted to implement basic income and eliminate all other social support. Later ministers of finance never returned to this plan. Today in Czech Republic exist active movement and campaign to support basic income.[78] Basic income in Czech Republic is support by Green Party, Pirate Party, Communist Party and Social Democracy.

Finland

BIEN Finland launched a citizens' initiative.[79][dated info]

France

In France, the first prominent defender of basic income is fr:Yoland Bresson. In 1985, he founded the "Association pour l'Instauration d'un revenu d'existence" with Henri Guitton (fr)[80] for promoting basic income in France, and co-founded the BIEN the year after. Another prominent advocate of basic income is the philosopher André Gorz, who finally endorsed the idea[81] after having been an opponent for years.[82]

Leftist activists such as fr:Baptiste Mylondo, fr:Yann Moulier Boutang,[83] Toni Negri, Jean-Marc Ferry, Ignacio Ramonet, Jacques Marseille (fr)[84] also favour basic income.

On the political side, the Christian democrat Christine Boutin, the former prime-minister Dominique de Villepin, are the most well-known politicians claiming for basic income, along with some MPs like Karima Delli, Jean Desessard and Yves Cochet.

The very influential think tank fr:Centre des Jeunes Dirigeants (CJD) ("Young policymakers trust") also call for a basic income of 400 euros per citizen.[85] The CJD's and Christine Boutin's basic income proposals are based on Marc de Basquiat financing model,[86] which demonstrates a way of financing a basic income of 400 euros for every adult and 200 per child, while other advocates such as Baptiste Mylondo and Jacques Marseille promote a "high enough" basic income, around 750 euros. However, unlike Mylondo and Marseille, De Basquiat's model doesn't reduce any pension, housing or unemployment benefits.

In 2012 a group of citizens launched a transpartisan network in an attempt to join forces for raising awareness about basic income in France.[87] This network aim at participating to the European citizens initiative that is set to be launched in 2013.[88]

Germany

One of the most prominent proponents of basic income in Germany is Götz Werner, the former CEO of the store brand DM Drogeriemarkt, and one of the richest men in Germany. He also teaches economics at the Karlsruhe Institute of Technology.

The generalization of workfare policies known as "Hartz reforms" have encouraged a broader movement for basic income in Germany.[89]

In 2008, a petition launched by Susanne Wiest was supported by more than 52,973 citizens, thus offering the German activist a hearing at the Bundestag,[90] which helped to enlarge the public debate on the idea.

The German Pirate Party has officially endorsed basic income[91] since 2011. Inside the Christian Democratic Union, Dieter Althaus proposes a basic income model.[92] A group led by Katja Kipping also promotes basic income inside the leftist party Die Linke.[93] In addition, inside the Social Democratic Party of Germany, the Rhein-Erft-group favors basic income[94] since 2010. Within The Greens there are also a large number of advocates.

Greece

Though the idea of basic income is not well known in Greece, several economists have worked on the topic. In 2010, the liberal party Drasi supported a proposal for a basic pension scheme, aiming at simplifying the hundreds of pension schemes in a country being hurt by the debt crisis and pressured by the troika to balance its public budget. Manos Matsaganis and Chrysa Leventi co-authored a study that demonstrate the feasibility of such a proposal.[95]

Other heterodox proposals suggest that a Greek exit from the eurozone could be an opportunity to implement a "monetary dividend" for every Greek citizen as a way to manage the financial collapse of the country.[96]

Netherlands

The issue of the basic income gained prominence on the political agenda in Netherlands between the mid-1970s and mid-1990s[97][98] but it has disappeared from the political agenda over the last fifteen years.

Spain

Since 2001, the es:Red Renta Básica is the national network affiliated to the BIEN. It gathers researchers and activists for basic income.[99] From 2011 to 2012, the 15-M Movement also contributed a lot in spreading the idea among the Spanish society.[100]

Famous Spanish advocates of basic income are es:Daniel Raventos, es:David Casassas, José Luis Ley.

Switzerland

The association BIEN-Switzerland[101] (affiliated to the Basic Income Earth Network) promotes basic income in the francophone part of Switzerland. In the German-speaking part of Switzerland a group called "de:Initiative Grundeinkommen" is very active in promoting basic income.[102]

In 2006, the sociologist Jean Ziegler considered basic income as "one of the most pressing idea of all".[103]

In 2008, Daniel Häni and Enno Schmidt produced The Basic income, a cultural impulse, a movie that explains and praises the idea of a basic income. With more than 400,000 views,[104] the movie went viral and contributed a lot in spreading the idea among French and German speaking countries.

In April 2012, both groups launched a popular legislative initiative[105] aimed at collecting 100,000 signatures.[106]

In September 2013, the initiative achieved to collect about 126,000 signatures and handed them over to the government on October 4[107][108] thereby triggering a nationwide popular referendum, which would be the first of its kind on this issue, anywhere in the world.[109][110] The trade union de:Syna brought its support for this initiative.[111]

United Kingdom

"The Citizen's Income Trust promotes debate on the desirability and feasibility of a Citizen's Income by publishing a newsletter and other publications, maintaining a library of resources, and responding to requests for information."[112]

Co-founder of the Basic Income Earth Network, the professor Guy Standing is a famous advocate of the unconditional basic income. In his book The Precariat - the new dangerous class, he blames globalization for having plunged more and more people into the precariat, which he analyses as a new emerging social class.[113] He concludes on the necessity for "governments to provide basic security as a right"[114] - through a basic income.[115]

Edward Skidelsky and Robert Skidelsky favoured a basic income in their book called "How Much is Enough?".[116]

Basic income is also defended by the Green Party of England and Wales[117] and the Scottish Green Party.[118]

Norway

The Liberal Party of Norway, Norwegian Green Party and Norwegian Red Party endorse basic income in Norway.[119]

Hungary

Basic income - called Feltétel Nélküli Alapjövedelem (FNA) in Hungarian (unconditional basic income) is supported by the FNA Group, which held its first active-team-meeting was in Hungary/Budaörs, May 31. 2011.[120] Basic income is also endorsed by the Hungarian pirate party.[121]

Basic Income in Developing countries

Brazil

Main article: Basic income in Brazil

Namibia

Middle East

Main article: Basic income in the Middle East

Elsewhere in the world

Japan

In Japan, New Party Nippon and the Greens Japan support basic income, along with some economists such as Toru Yamamori and Kaori Katada.[122]

Funding

Affordability studies

Affordability of a basic income proposal is a function of the social/government services it replaces, any tax increases, and the less tangible positive effects on spending and tax receipts associated with wealth redistribution towards the poor, and any social savings as a result of less crime, or fewer incarcerable offenses.

Specific, though informal, measurements were made by Pascal J. for Canada.[123] A 2004 taxable basic income benefit of $7800 per adult could be afforded without any tax increases by replacing welfare, unemployment, and core Old age services. (Canada has supplemental poverty old age programs and pension system). The number excludes any intangible benefits of tax revenue increases due to higher spending and lower personal savings, and any expenditure savings on criminal enforcement.

To estimate affordability of basic income in the US, the starting point of 265M adult citizens and a UBI calculator.

Naturalfinance.net estimates that by cutting the $1.85T spent on social security and welfare in the US, $9905 can be given to each adult American citizen as a taxable basic income benefit[124] From the same paper, it is noted that basic income can also be funded through monetary policy. Instead of printing money for direct bank funding, money is printed to give directly to citizens who then spend it in the economy and fund banks indirectly through deposits. Monetary policy has never been used in this manner, but the paper claims there is no underlying economic reason it cannot be used as a partial or full basis for funding basic income.

Several sources of funding have been proposed for hypothetical socialist (public or common ownership of the means of production) economic systems:

Many different sources of funding have been suggested for a guaranteed minimum income for non-socialist economic structures:4

See also

References

Further reading

  • Raventós, Daniel; Wark, Julie. "Indignation, Basic Income and the First Social Law. Taking It to the Streets in Spain" Counterpunch, 14 May 2012.
  • Raventós, Daniel; Wark, Julie. "General Strike in the Kingdom of Spain: the Political Economy and Basic Income" "Opendemocracy", 30 March 2012.
  • Lo Vuolo, Rubén M.; Raventós, Daniel; Yanes, Pablo. "Basic Income in Times of Economic Crisis: The War Social and Working Rights," Counterpunch (Weekend Edition, November 5–7, 2010).
  • "History of Basic Income," BIEN (Basic Income Earth Network).
  • Social Contract Revisited publications: Basic Income and Income Support in the Modern Welfare State, The Foundation for Law, Justice and Society (Contributors: Amir Paz-Fuchs, Peter Edelman, Amitai Etzioni, Charles Murray, Michael Opielka, Dalmer Hoskins, Avia Spivak, Frank Bloch). [ Retrieved 17-02-2011 ].
  • Lord, Clive; Kennet, Miriam (2012). Green Economics and The Citizens Income, published by The Green Economics Institute

External links

  • The Basic income, a cultural impulse, German movie (available in more than 20 languages)
  • Center for Economic and Social Justice
  • Guaranteed Basic Income Studies: How it could be organised, Different Suggestions
  • Basic Income Earth Network (BIEN)
  • Basic Income Studies: An International Journal of Basic Income Research
  • US Basic Income Guarantee Network
  • Citizen's Income
  • smi2le, a multilingual journal about the basic income guarantee
  • Lectures on basic income
  • French network for unconditional basic income
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