Basic income critique – P2P Foundation https://blog.p2pfoundation.net Researching, documenting and promoting peer to peer practices Mon, 12 Jun 2017 08:29:41 +0000 en-US hourly 1 https://wordpress.org/?v=5.5.15 62076519 Getting to the heart of Universal Basic Income https://blog.p2pfoundation.net/getting-heart-universal-basic-income/2017/06/12 https://blog.p2pfoundation.net/getting-heart-universal-basic-income/2017/06/12#respond Mon, 12 Jun 2017 08:00:00 +0000 https://blog.p2pfoundation.net/?p=65921 Click here to read all our curated stories on Basic Income This post by Conrad Shaw  was originally published on opendemocracy.net The benefits of financial security are obvious, so why doesn’t the idea of UBI enjoy more popular support? If we took all of the income the United States makes in a year and divided... Continue reading

The post Getting to the heart of Universal Basic Income appeared first on P2P Foundation.

]]>
Click here to read all our curated stories on Basic Income

This post by Conrad Shaw  was originally published on opendemocracy.net

The benefits of financial security are obvious, so why doesn’t the idea of UBI enjoy more popular support?

If we took all of the income the United States makes in a year and divided it by the total number of Americans, then every woman, man, and child would be making over $50,000. That’s over $200,000 for a family of four.

If we wiped the slate clean and took all of the personal net wealth of the United States and divvied it up among every American with a heartbeat, each person would receive over $250,000 as a nest egg.

Let’s take a second to think about those numbers. Even though nearly 40 per cent of the country doesn’t work in paid employment and 46 per cent couldn’t come up with $400 if their life depended on it, the ‘average’ American apparently pulls in $55,000 a year and has a cool quarter-of-a-million Dollars in assets. The national poverty line is defined as just below $12,000 per year for an individual.

Does it surprise you to learn how much wealth there is in this country, or how rich the top one percent really are?

These facts should make it clear that we already have the resources to eradicate poverty if we want to. It wouldn’t require a revolution. It would only require an adjustment of our priorities in favor of a Universal Basic Income or UBI.

UBI is a serious solution that simply and elegantly delivers an economic floor of security to every person in society. As these figures show, we can easily afford it, so it should be a no-brainer on the basis of both logic and human decency.

Right now the UBI movement is exploding. It’s founded on the idea that everyone in a civilized society has an inalienable right to the basic necessities of life such as food and shelter and healthcare, and that the most effective way to guarantee those rights is through a regular cash stipend to each individual. In the US a good starting point for a full UBI would be around $12,000 a year for every adult, with a smaller amount provided for each child.

Beyond human decency, there are myriad other arguments to be made in favor of UBI: economic stimulus and sustainability, improved health outcomes, reduced crime, more community action, higher creativity, more self-fulfillment, more participation in politics, and more flexibility to spend time with and care for our children and loved ones when they need us.

Even Silicon Valley is pushing hard for it as a way to help people through the coming times of job displacement due to automation, since recent estimates forecast that we will lose up to half of our jobs to machines in the next 20 years. Basic income pilots are popping up all around the world, doing important research to test these claims and measure the efficacy of direct cash giving under a host of different scenarios.

But here’s the thing: the US has just witnessed a presidential election in which large numbers of voters rebelled against the technocrats and political elites on both sides of the aisle who have ruled America for decades. These voters felt ignored and decided to push back. What’s to say that UBI won’t be seen as another technocratic solution handed down by the same political class from Washington DC? If so, it would probably be doomed.

The UBI movement must avoid the establishment’s tendency to overestimate its own influence and take everyone else for granted, of valuing the support of billionaires and corporations above all else. Basic income is a policy of, by, and for the people, and to succeed it’s going to have to have the support of the great mass of those people, both Democrats and Republicans.

I care less about convincing another tech whiz kid CEO, veteran venture capitalist, or Nobel laureate economist to join the movement, and much more about bringing on board farmers in Missouri, displaced coal miners in West Virginia, and schoolteachers in Wisconsin. This is necessarily politics after all, not just economics and philosophy. To win a Universal Basic Income we must eventually pass legislation, and in order to do so people will have to stand up and demand it across the political divide.

So how do we handle the politics of UBI? My partner and I are filmmakers. Politics runs on storytelling, and we see film and visual media as the most powerful storytelling tool available today. So we’ve decided to make a film about UBI, a documentary film, but what kind of documentary?

It can’t just be for and about the experts and the reams of historical evidence; great research doesn’t rivet an audience. Statistics alone don’t capture hearts and minds or make an emotional connection that’s powerful enough to overcome the opposition. I’ll wager that every single one of the films you remember most vividly in your life, those that have had the most impact on you, have revolved around human stories, not talking heads and facts.

What’s more, they were likely not simple snapshots of people in interesting situations. They were rich character studies, following unexpected plot lines, and ultimately culminating in some kind of growth or change. An effective documentary about UBI must do the same.

And it also needs to honestly address the elephant in the room: some people’s fears about subsidizing laziness in others. While I expect a world with a Universal Basic Income would be freer and more productive—populated by more effective and intrinsically-motivated human beings—others might forecast a world of entitled do-nothings living off the work ethic of a noble few. If we want to prove them wrong we had better provide some evidence to back our claims.

This is the point of the trials that have already happened, or are underway or are coming soon around the world. But how much can a study of UBI in a rural Kenyan village or an already generous Scandinavian social support system offer to Americans? Even successful results in the trial that’s currently taking place in Oakland, California might not hold much water in making the case to a Montana rancher or a manufacturing worker from the Rust Belt.

So instead, what we’ve decided to do is to create a new basic income pilot program specifically for our film, crafted for the sole purpose of telling diverse American stories from all walks of life: a farmer, a student, an athlete, a new family, a manufacturing worker, a police officer, an artist, a teacher, a veteran and a retiree.

We want to know and show what all of them do with a floor of security to stand on. Each participant will receive a basic income of $1,000 per month for two years, and we’ll check in with them regularly, recording their achievements, failures, choices, and growth in their daily lives.

BOOTSTRAPS – proof of concept from deia schlosberg on Vimeo.

However, we aren’t billionaires or celebrities, and this film will boast no A-list stars. We’re artists and journalists, and so we need your help. While the big political movers and shakers would consider our $600,000 pilot budget miniscule, it’s an unachievable fortune for everyday Americans. So if you are invested in the idea of a brighter future through UBI please give a few dollars to the campaign to fund our pilot, and share this article widely.

As a former engineer, one of UBI’s greatest appeals for me has to do with human optimization. When people are operating through anxiety, they lose 10-15 IQ points. When they are worried about survival, they aren’t dreaming about what they can offer to the world. We are currently turning people into diminished versions of themselves through the systems that we’ve built, but it needn’t be that way.

We can invest in them and support them to bring their best selves to the challenges they face. If we expect people to pull themselves up by their bootstraps, the least we can do is provide the boots and a solid floor to stand on. When everyone around us has that same fair footing, we’ll all stand taller together.

You can make a contribution to the Bootstraps campaign here.


Lead image: Flickr/Russell Shaw Higgs

The post Getting to the heart of Universal Basic Income appeared first on P2P Foundation.

]]>
https://blog.p2pfoundation.net/getting-heart-universal-basic-income/2017/06/12/feed 0 65921
Working to Death: Leftist Critiques of Basic Income Fail to Offer Meaningful Alternatives https://blog.p2pfoundation.net/working-death-leftist-critiques-basic-income-fail-offer-meaningful-alternatives/2017/06/12 https://blog.p2pfoundation.net/working-death-leftist-critiques-basic-income-fail-offer-meaningful-alternatives/2017/06/12#respond Mon, 12 Jun 2017 07:00:00 +0000 https://blog.p2pfoundation.net/?p=65927 Click here to read all our curated stories on Basic Income This post by Miles Krauter in collaboration with Carter Vance was originally published on Medium.com, here and here. From Finland to Kenya to Ontario, it seems that everyone interested in social policy is talking up basic income. It’s not a new idea, having been theorized since at... Continue reading

The post Working to Death: Leftist Critiques of Basic Income Fail to Offer Meaningful Alternatives appeared first on P2P Foundation.

]]>
Click here to read all our curated stories on Basic Income

This post by Miles Krauter in collaboration with Carter Vance was originally published on Medium.com, here and here.

From Finland to Kenya to Ontario, it seems that everyone interested in social policy is talking up basic income. It’s not a new idea, having been theorized since at least Thomas Paine’s musings on a “citizen’s dividend” in the late 1700s, and with variations actually having been piloted in several US cities and in Manitoba during the 1970s. Though many variations of the concept exist, with terms such as “negative income tax,” “basic income grant,” and “universal social payment” all signaling slightly different policy approaches, the basic idea is the same: the government would ensure, either by a direct payment or a top-up in the tax system, that all citizens (in some plans, certainly those proposed on the left, this would be extended to include refugees and permanent residents) not fall below a certain level of income per year. The exact level of cut-off varies between plans, but is usually located somewhere just above the Low-Income Cut-Off (LICO) in Canada, which is roughly $24,000 per year for a single adult, or a similar poverty measure in other jurisdictions. You wouldn’t have to work, or, indeed, do anything else other than breathe and sign up for the benefit in order to receive it. Sounds simple, right? The idea is quite tantalizing in its simplicity, being touted by its boosters as having the power to, at once, end absolute forms of poverty as well as provide social support to workers buffeted by automation and outsourcing, while giving more bargaining power to people trapped in the modern piecework of the so-called “gig economy.”

At the same time, for reasons that are understandable, there has recently been a set of voices on the left calling this idea out as too good to be true. To this side of the argument, basic income is being advanced as a Trojan Horse by governments attempting to maintain and deepen a neoliberal policy project while putting a new coat of paint on it to placate an increasingly restive public. They warn that a basic income will be used as cover for continuing cuts in health and educational services, along with privatization of other social programs, and state that leftists who advance even cautious cases for basic income are being played for suckers. While such arguments are not without merit in certain respects, they nevertheless fail to recognize both the traditions of social citizenship on the left that a basic income, at least in its leftist variation, speaks to, and the necessity for positive, emancipatory policy visions. Furthermore, these critiques also have the unwitting effect of continuing to unduly valourize “work” performed under capitalist conditions in a way that testifies to the deep penetration of certain harmful ideas about the sources of human dignity and worth into our collective social psyche. Basic income, properly formulated and applied with a critical eye, offers at least the potential of thinking about social organization in a different way. Given the upsurge of interest in the idea currently, those on the left would be foolish to not at least engage with it in order to shape the policy outcome.

The Dangers Are Real

Critics of basic income are right that BI programs should not be viewed as a panacea and that, absent a political struggle to make them the kind of basic income that is actually redistributive, they are not inherently a good thing. We can easily imagine a situation where a “basic income” program is instituted by a right-wing government in such a way that it is both inadequate to purchase basic needs and has its existence used as an excuse to slash other social expenditures (that are not adequately replaced by the BI) and to privatize public goods. To this end, there is a rightful caution to not simply take something called a “basic income” as doing what it says on the label, particularly when it is being advanced by governments with questionable records on social service. The “basic income” program currently being pushed by the right-wing government of Finland, for example, is nothing of the sort, and in reality has had more to do with an attempt to cut down expenditure on unemployment benefits. However, this is more of a basic point about not being bamboozled by flashy promises and to always be skeptical of the intentions of those in positions of political power than it is about basic income as a proposal in and of itself.

Any “basic income” proposal deserves intense scrutiny, as does any government policy proposal. In particular, aside from the actual levels of the benefits, we ought to be critical about who can receive the benefits (will it be conditional on citizenship?), the ease of receiving them (are we still going to have to make humiliating trips to the social services office?), and what other benefit programs are going to be phased out as a result. This level of scrutiny, in fact, could actually temper some of the left criticisms of left BI, such as the argument that any adequate BI would be so expensive, that left proponents of it are simply dreaming.

Any evaluation of the costs of a left BI must account for the fact that it would need to be gradually implemented (just like hikes to the minimum wage), and that it could eventually adequately replace welfare, disability benefits and tax credits rendered redundant. It must also account for the money that would be saved on less-burdened healthcare and justice systems, as well as the multiplier effects attendant to cash transfers to people with little capital. Finally, left critics of BI should understand that left proponents are generally banking on significant changes to our national revenue streams to sustain a generous BI, such as quantitative easing for the people, increased taxes on the wealthy (financial transaction, corporate, income, luxury, inheritance, etc), but also increased public ownership; is it too fantastical to dream of new automation-exploiting crown corporations directly funding a BI scheme? The left critic response is, presumably, yes, because none of this is ‘on offer.’ Like so many ‘realist’ arguments, this one’s cynical assumptions have a more narrow view of reality — potential and current — than what is warranted.

One of the assumptions underpinning this line of criticism appears to be that a genuinely democratic socialist government, or at least one capable of pushing politics in that direction, is out of reach. This is presumably so, under this line of argument, because change necessarily comes from below, and worker power is not at a point where a transformational government is feasible or sustainable. This view of political change assumes the forces behind (socialist) change to be unidirectional and linear, necessarily building from below and emanating upwards. Of course, this is truer than the reverse assertion, but the reality is more dialectical: forces at the macro scale can also feed into and grow forces for change from below. This has been demonstrated most recently by the campaigns of Jeremy Corbyn and Bernie Sanders. History consistently demonstrates that socialist-inspired programs and policies generally appear to be out of reach — until they aren’t. Advocacy of BI within a broader left policy framework is coming to the fore in France (the programs of both Benoit Hamon and Jean-Luc Melenchon advocated versions of a BI), in the UK (with John McDonnell promising to win the BI argument in the UK’s Labour Party), and even the federal NDP in Canada appears to be moving in a leftward direction generally, with space for a BI as a plank in that broader program. Meanwhile, it seems highly unlikely that the — presumably outgoing — Ontario Liberals will ever convert their problematic pilot project BI into implemented provincial policy.

Further, the idea that BI is merely some kind of bait-and-switch is belied by the fact that previous BI experiments have yielded positive social results. In the Manitoba “Mincome” case, crime, hospitalizations, mental health-related incidents and general social stress all declined, while wages at entry level jobs rose at a level above the provincial average. Though that and other pilots were unfortunately terminated too early to fully analyze their effects, the evidence we do have suggests that such a program would be likely to increase bargaining power at work, rather than decrease it. It is perhaps true that some boosters for BI have oversold it by presenting the idea as a panacea to a wide variety of social ills, but that observation should not lead to the overcorrection of outright dismissal.

A further critique within this vein links basic income to its sometimes supporters amongst the likes of Silicon Valley CEOs, with the idea that the program will merely be a form of noblesse oblige whereby such crumbs stave off absolute destitution amongst the masses, while income inequality grows ever higher. Again, this is not entirely without merit, and it is certainly possible to see how such a scenario would come to pass. But, in saying that this in itself should make BI a dead letter for the left, a couple of basic historical and tactical points are ignored. For instance, even though Bismarck created the foundations of the modern European welfare state as an explicit way of heading off the rise of socialist politics, this does not mean the welfare state itself is inherently a poison chalice. Though sometimes making critiques of its paternalism, its lack of inclusivity and its need to be more democratically organized, defense of the welfare state is one of the causes most near-and-dear to the modern left, including those who critique basic income.

Guilt-by-association will not do in this case, particularly given that it could be just as easily argued that we sully ourselves by association with public healthcare and old age pensions since these programs are currently supported by so-called “welfare nationalist” groups and parties of the right, as well as being historically implemented by a wide variety of political forces for a wide variety of reasons. Indeed, Canadian public healthcare was, in part, achieved thanks to the Conservative Diefenbaker government, which helped T.C. Douglas fund the Saskatchewan Plan, and the later Liberal government who oversaw the introduction of the federal Medicare program. All of this, of course, took place in a context of social and labour mobilization and agitation in favour of such programs.

On a tactical level, dismissing BI off-hand even as there is a growing interest in it risks giving over the conversation entirely to the very neoliberal types that those doing the dismissing are ostensibly concerned about. Refusing to engage in a conversation is rarely a good way of shaping it, and the space for more radical action rarely comes in the absence of preceding reform. Even a modest implementation of basic income, which provided some benefits to a wide social strata, could be a good organization point for further reforms as it would create a more widely-held stake in cash-based assistance, which is currently deeply stigmatized and cordoned-off from the more popular parts of the welfare state. Like the introduction of other universal programs, BI would create a public that could then be mobilized to defend and enhance it.

It is sometimes said by left BI critics that the conditions for a livable basic income are impossible under capitalism, because capitalist states would not allow workers to have access to what amounts to a kind of permanent strike fund. But, again, this ignores a rather obvious point: that a welfare state of any kind should not exist if this were wholly true. Any kind of state-furnished provision, whether in-kind or cash-based, allows workers to exercise some degree more leverage when negotiating with employers (otherwise, would Republicans constantly be trying to remove food stamp eligibility for workers on strike?). To this extent, we already have some degree of “strike funds” within the current makeup of the welfare state.

Basic income can be won on the same terms, which is to say via political struggle, that those other forms of social provision were, and though it may seem impossible at the current moment to see a future with a sufficiently high BI program, it is doubtless true that public healthcare once seemed such an impossible dream as well. Even as it stands, ‘public healthcare’ in Canada, and in many other countries, remains insufficient — an unfinished project. Yet, this universal program, even in its flawed state, is doubtless worth supporting. The analogy to public healthcare is helpful, as it highlights the importance of universal programs vis-a-vis workplace contingent benefits. Certainly, the American model of healthcare, which remains very much contingent on one’s workplace, is not ideal, and would not be ideal even if the state set a floor for health benefits at each workplace. BI, then, could potentially be seen as a kind of nationalization or decommodification of the wage, on the path to increased separation of means of subsistence from capitalists and the workplace. That said, we should not expect the most ideal BI to be the one that is implemented at first, but we can struggle for BI to be enhanced and expanded once implemented.

Work Sucks! Let’s Do Less of It (but Still Get Paid)!

At a more basic level, though, the left case against basic income is fundamentally uninspiring, on both the strategic and the philosophical levels. On the first, it is curious that critics tend not to offer their own prescription for tackling some of the core concerns that BI speaks to. Yes, they will sometimes gesture in the direction of either a full-employment policy (which may be problematic in and of itself on environmental grounds, and is vulnerable to some of the same critiques of BI concerning what state and capitalism can and will permit), or some combination of increased welfare rates and expanded in-kind social service provision, but in most cases they prefer to keep the conversation on increasing wages, expanding collective bargaining and updating labour law protections, particularly for precarious workers. This is not to say that all of these shouldn’t be on the menu of left goals, in particular turning those sectors of the economy which are growing (such as home health care and customer service) into relatively desirable, secure positions. Even with a robust basic income in place, there would still be a need for increased investment in in-kind services such as health care and education and the left should be committed to fighting for those. However, we should also recognize that these programs are not necessarily a response in themselves to the questions that left advocates of basic income are putting forward. It is not exactly clear how the prescription often offered by these critics of higher social assistance rates combined with a less restrictive and punitive benefits system meaningfully differs from a system of direct cash transfers set a sufficiently high level. Further, administering this benefit through the tax system or some other state agency not heavily stigmatized and structurally problematic as the welfare bureaucracy would help to increase social buy-in to the idea of government cash transfers. Socialists usually argue in favour of universal, or at least widely distributed, welfare state interventions precisely for the reason that targeted services or benefits are more vulnerable to attack from the political right, so, it remains curious why they want to retain the structural essence of the social assistance system, even if they do want it to be more genuinely helpful in some general sense.

We are sensitive to the point that many individuals currently employed in the social assistance delivery system are genuinely attempting to help their clients and that they do, on many occasions, provide them with system navigation advice which goes beyond the monetary benefits they administer. We do not, unlike libertarian basic income advocates, see BI as a way to slash good-paying public sector jobs. However, those who oppose BI on grounds of these jobs being lost, particularly those in organized labour, should at least acknowledge that there are contradictions in the roles that workers perform within these environments, that their function has increasingly become to police the behaviour of individuals receiving social assistance, and that acting to protect these jobs without an actual stated plan to change their function appears parochial and impedes the development of solidarity between social strata. People receiving higher, less restricted, levels of monetary support would be less in need of “system navigation” assistance in the first place, and there is nothing to say that public employees currently charged with welfare case management could not be shifted to other, more genuinely helpful, functions in the event that a direct cash transfer came to replace social assistance as we currently know it.

Though it is right to be skeptical of the “automation” explanation for the loss of well-paid, unionized jobs in the manufacturing sector, it is nevertheless true that many rote tasks in factories and elsewhere no longer require nearly the amount of physical labour they once did. With machine learning and commercially-ready ‘AI,’ this effect is only likely to intensify over the coming decades. Doubtless, some new jobs will be generated to make up for those which are lost, but this points to a deeper question about what the purposes of “innovation” and, indeed, work itself are. If the left response to the proliferation of what David Graeber has described as “bullshit jobs” is simply to make them better remunerated, we would seem to simply be buying into the capitalist mindset that what society labels as “work” gives our lives meaning, regardless of how mundane and unfulfilling we find the tasks themselves. The tiresome folkloric tale of a coming ‘knowledge economy’ — told to us by neo-liberals and post-Marxists alike — amounts to little more than a euphemism for a service economy that is already here. Yet neither a job at Google nor a job at McDonalds, with their different approaches to enforced happiness, will lessen our reliance on alienated wage-slavery, even if the former is better paid and more pleasant than the latter.

Instead, why shouldn’t our program be focused on creating the maximum social benefit of technological change through political participation? In other words, in noting that technology has created vast wealth that is privatized, we nationalize it, either through a basic income, or a French-style reduction of working hours without reduction in pay, or any combination of policies in this direction. Recognizing that even those well-paid manufacturing jobs of yore were often unpleasant, alienating and intellectually numbing is not a hard thing to do (even Adam Smith wrote about it in Wealth of Nations), but when presented with at least the potential to overcome this aspect of life in post-industrial capitalist society, there is a demurring to the nostalgia of an older era. Instead of shifting the subject of social justice to a kind of social citizenship, which thinkers such as Eduard Bernstein and T.H. Marshall envisioned with the expansion of the welfare state, the thinking remains stuck on limited definitions of “work,” “worker,” and the “economy.”

The objection to this shift of emphasis, other than its fairly acknowledged political difficulty, seems to be that it betrays the classical Marxist notion of the “worker” as the central political identity and the workplace as the central point of political struggle within capitalist society. Moving away from this conception, therefore, threatens both the recognition of the capitalist economic base as the main determining factor of sociopolitical conditions and the notion of work as being key to the “species-being” of humanity. What this objection ignores, however, is that Marx was not using “work” to mean the now-general notion of remunerated employment, but rather an expenditure of productive effort. The alienation of this “work” occurs when one does not capture the full value of what one produces, but also when the work being done is not freely chosen or self-directed.

Under the utopian conception of a basic income future (in essence, automated machines do most or all of the unpleasant work and BI levels are set at a level at which no one needs to work for money if they do not wish to), people would still “work” in Marx’s sense (they would write, paint, create dank memes, etc), just not in the commonly understood sense. Marx even muses about something that sounds suspiciously like a BI proposal in his economic and philosophic manuscripts — “an equality of wages paid out by the communal capital” — as a ‘crude communist’ first step towards an end to alienated labour.

In all, such a notion of “work” appears to be deeply tied to an uncritical, productivist form of Marxist thinking which may have had relevance in another political context but appears hopelessly dated in the current reality. This is all to say nothing of the fact that there are many people who have disabilities which prevent them from “working” in the conventional sense of the term, either temporarily or permanently, who are entirely written out of this analysis and would likely stand to benefit most from a basic income. Even the removal of the often intrusive, deliberately demeaning and manipulative aspects of the current social assistance regime would be deeply beneficial here, absent higher benefit levels. Similar remarks could be made as to the way in which basic income would act to, at least in part, recognize unpaid care work, usually done by women, which is often not considered as “work” under the status quo.

A Legacy to Build On

Enhancing and expanding any less than ideal BI program will inevitably come up against the limits of state and capitalism, but it is unclear why this is a bad thing. Capitalism’s contradictions, and their attendant crises, are not going to be avoided through BI, or any other redistributive reforms for that matter. As socialists, we should hope to confront these contradictions when state supports are in place and the rungs of the societal ladder are closer together, for this is when those of us on the lower rungs are most healthy and most powerful, and least likely to be swindled by shock doctrine elites. Undoubtedly, one of the best ways to achieve redistribution is through workplace struggles, but we also need socialist governments to implement a framework that makes these more likely (and more likely to be successful). However, we must also recognize the need for socialist governments to implement other redistributive mechanisms that exist separately from the workplace, such as a BI, if we ever hope to achieve a post-work society, and not just a more equal capitalism.

Basic income-type plans have enjoyed purchase on the left for some time, with in particular such luminaries as Francis Fox Piven and Martin Luther King Jr. calling for their adoption in the late 1960s. More recently, books such as Nick Srnicek and Alex Williams’ Inventing the Future and Paul Mason’s Post-Capitalism have put the idea back on the table. At the same time, it is true that Austrian economic figures such as Fredrich Hayek and Monetarist’s like Milton Friedman also supported their own version of basic income, which involved the grant replacing most if not all of the existing in-kind welfare state provisions. It can often be unclear, in the current debate, from which direction particular proposals around “basic income” are coming from, and perhaps it is for this reason that so much confusion and discord around BI exists on the left.

However, there is a crucial difference between the two essential variations of the idea that bears repeating: the latter seeks, fundamentally, to liberate the market from the control of the state, while the former seeks to liberate human beings from the market. Accomplishing the dream of unalienated labour is no easy task, and it is doubtful that any one of us has the exact right cookshop recipe to make it so. That said, the leftist dismissal of basic income, though it emerges from genuine concerns as to the instrumentalization of BI, is at the very least premature. Moreover, it remains unclear why we should believe the public would be more likely to accept continued privatization and austerity with the presence of a BI (elites appear to be proceeding just fine without it). We struggle now for a higher minimum wage and against these forces; why would we not struggle for a higher annual income and against these forces in the future? The left should view BI, as it does most aspects of the welfare state, as a tool whose political character is dependent on a balance of social forces. Rather than dismissing the notion outright based on its also being supported by some neoliberal forces, we ought to be fighting to make it our own and to make the best version of it possible.

Carter Vance is an MA candidate in the Institute of Political Economy at Carleton University and a former legislative researcher with the offices of Erin Weir and Peter Julien. His writing has appeared online at JacobinTruth Out and Inquires Journal.

Miles Krauter is a PhD candidate in the Sociology Department, and an alumni of the Institute of Political Economy, at Carleton University. He is the Vice President External at his union, CUPE 4600, and an organizer with the Fight for $15 & Fairness Ottawa. His writing has appeared online at rabble.caRicochet, and Canadian Dimension.

Photo by familymwr

The post Working to Death: Leftist Critiques of Basic Income Fail to Offer Meaningful Alternatives appeared first on P2P Foundation.

]]>
https://blog.p2pfoundation.net/working-death-leftist-critiques-basic-income-fail-offer-meaningful-alternatives/2017/06/12/feed 0 65927
The key criticisms of basic income, and how to overcome them https://blog.p2pfoundation.net/key-criticisms-basic-income-overcome/2017/01/10 https://blog.p2pfoundation.net/key-criticisms-basic-income-overcome/2017/01/10#comments Tue, 10 Jan 2017 09:30:00 +0000 https://blog.p2pfoundation.net/?p=62635 How can a universal basic minimum income be made compatible with socialist principles and avoid inadvertently furthering a neoliberal agenda? Ursula Huws continues the conversation on Universal Basic Income in this article, originally published on Open Democracy’s New Economics section: More than one in five UK workers, over seven million people, are now in precarious... Continue reading

The post The key criticisms of basic income, and how to overcome them appeared first on P2P Foundation.

]]>
How can a universal basic minimum income be made compatible with socialist principles and avoid inadvertently furthering a neoliberal agenda?

Ursula Huws continues the conversation on Universal Basic Income in this article, originally published on Open Democracy’s New Economics section:

More than one in five UK workers, over seven million people, are now in precarious employment according to this analysis of official figures by John Philpott. Since 2006, the numbers on zero-hours contracts has grown by three-quarters of a million are and over 200,000 more are working on temporary contracts. My own recent research has found that some two and a half million adults in the UK may be working for online platforms like Uber, Taskrabbit or Upwork at least once a month, with about 1.2 million people earning more than half their income from this kind of work. A growing proportion of the population is piecing together an income from multiple sources, in many cases making even the concept of a fixed occupation anomalous.

Large numbers of worker do not know, from one day – or even hour – to the next if and when they will next be working. Yet we still have an anachronistic benefit system based on the principle that any fit adult (and, under the current regime, many who are less than fit) must either be ‘in work’ or ‘seeking work’. The old Beveridgean welfare state model is, in short, bust. What is left of the old welfare safety net is fundamentally incompatible with a globalised just-in-time labour market in which workers are increasingly paid by the task.

The victims of these incompatibilities are among the most vulnerable in our society – forced to take any work that is going but often unable to claim benefit when none is available. They are caught between the rock of harsh sanctions regimes and the hard place of capricious and unreliable employers, often with no dependable source of income whatsoever. And the numbers of these people missed by the safety net keep growing. The use of food banks has increased more than forty-fold since 2008, the estimated  number of rough sleepers has risen by 55% since 2010 and the number of children in poverty rose from 3.7 million in 2014-2015 to 3.9 million a year later – an increase of 200,000 in just one year. Something is clearly terribly wrong and the increasingly urgent question is how to fix it.

This is part of the problem to which the concept of a universal basic income (UBI) now presents itself as a solution to an expanding range of analysts. UBI is not only promoted as a way to update the benefit system to bring it into line with new labour market realities. It is also seen as a way to reward carers and others who carry out unpaid reproduction work in the home, to support artists, enable lifelong learning or give more autonomy to disabled people. This once-marginal idea is now seriously espoused in the UK by the Green Party, the Scottish Nationalist Party, some trade unions and sections of the Labour and Liberal Democrat parties and Plaid Cymru. Further afield is also actively promoted (including setting up experimental schemes) in Finland, the Netherlands, India, South Africa and, at the neoliberal end of the spectrum, by high-tech entrepreneurs in Silicon Valley.

At the headline level, indeed, UBI can seem to represent some sort of magic bullet that will solve all these problems simultaneously, and is often promoted as such. But a closer examination of the various models proposed reveals considerable differences between them. If these are not recognised, attempts to operationalise it could lead at best to risks of unintended consequences and at worst deep political fissures that could even exacerbate some of the problems UBI is intended to address. Most attempts to model how UBI could be implemented in practice in the UK (for example by Howard Reed and Stewart Lansley, Malcolm Torry and Gareth Morgan) have looked at it in what might be called a policy-neutral context, in which all other features of the economy and the tax system remain unaltered. But of course the reality is that any change in government policy that could lead to the introduction of UBI would be part of a much broader political upheaval that would transform many of these other features. Abstracting UBI from its broader setter in this way makes it harder to see such potential hazards.

For people who believe that the world’s sixth largest economy should be able to protect its citizens from penury, and are committed to (re)developing a welfare state that reduces social inequality and enhances choice and opportunity for its citizens, perhaps the time has now come for a serious debate, not just about the pros and cons of UBI in the abstract, but about which other policies it should be linked with to ensure that these objectives are met. This involves grappling with some difficult questions. Here I look at four of the risks that could arise if a UBI is introduced without such policy safeguards.

The risk of driving down wages

In the abstract, the relationship between a UBI and wage levels can be argued to be either positive or negative. Some argue, quite plausibly, that a guaranteed minimum income would enable people to be much choosier about which jobs they accept, giving them options to turn down really exploitative wage rates and perhaps even providing them with the equivalent of strike pay to enable them to negotiate more effectively with employers without their dependents suffering.

An alternative view draws on the experience of tax credits (and now, universal credit) to point out that providing an income top-up is, in effect, a subsidy to employers who pay below-subsistence wages. In 2015-2016, this subsidy was estimated at about £30 billion. Had this been paid out by employers as part of their wage bill then this would also have led to an increase in national insurance and tax revenues. These credits therefore represent a factor which, whether inadvertently or not, increase inequalities between those who rely on their wages for their livelihood and those who derive their incomes, directly or indirectly, from corporate profits.

If a UBI is not to exacerbate this state of affairs, it is imperative that it is linked to a high minimum wage and one, moreover, that can be linked to systems where workers are paid by the task, not just to hourly rates.

The risk of undermining collective bargaining for employer-provided benefits

An important argument against UBI comes from social democratic parties and trade unions, especially in parts of continental Europe with a strong tradition of sector-level bargaining, who argue that its introduction would undermine their efforts to make employers pay into schemes that provide negotiated benefits, such as pensions, health insurance or childcare. A UBI provided by the state would, they contend, shift the burden of paying for it from employers to the general taxpayer. As Richard Murphy has shown, ‘the poorest 20% of households in the UK have both the highest overall tax burden of any quintile and the highest VAT burden’. This shift would therefore exacerbate inequalities, rather than reducing them, at a societal level.

To avoid this risk, it is therefore important that the introduction of UBI should be accompanied by measures that support trade unions’ abilities to bargain with employers at company and sector levels for benefits for their members, by protection for existing company pensions schemes and by other measures that ensure that employers continue to contribute their share of the cost, for instance through employers’ contributions to National Insurance.

The risk of undermining collectively-provided public services

By giving everyone cash, neoliberal models of UBI play along with the grain of an increasingly marketised economy in which services are individually purchased from private providers. There is therefore a risk that UBI could become a sort of glorified voucher system, undermining collectively provided public services that are designed by bodies democratically answerable to the communities they serve, under the guise of offering individual choice. Quite apart from the considerable risks that this poses to democracy, social cohesion and the quality of services, this could disadvantage individuals with special needs who require more expensive and/or specialised services than the average, exacerbating inequalities even while purporting to offer everybody the same.

It is therefore imperative that the introduction of a UBI should be embedded with policies that protect the scope and quality of public services and their collective and universal character.

The risk of creating racist definitions of citizenship

If a UBI is defined as a right of citizenship, then this raises the question of entitlement: who is, or is not, a citizen? And on what basis is their right to UBI established? A final serious risk associated with the introduction of UBI is that it could become linked to a narrow definition of citizenship from which some people (for example refugees, asylum-seekers or residents who do not hold UK passports) are excluded. In addition to the support this could give to racism and xenophobia this could also lead to a two-tier labour market in which people who are not entitled to UBI become an exploited underclass.

The introduction of UBI must therefore be integrated with humane and well-thought-out policies on immigration and citizenship, perhaps by linking entitlement to the place of residence, rather than nationality.

Conclusion

I have highlighted here what I see as four major challenges that need to be confronted if UBI is to be introduced as a genuinely progressive initiative that can restore some dignity and security to the most vulnerable members of our society, enable a flexible labour market to function in ways that avoid exploitation while encouraging entrepreneurship and creativity and reduce social inequality. In doing so, I do not wish to pour cold water on the very idea. On the contrary, I think that, at this moment in history, it is crucially important – so important that what is needed now is a debate, not about the abstract idea of a UBI, but about how it could be introduced in the real world in a way that is genuinely compatible with social-democratic and feminist ideals and starts to rebuild the train-wreck that is currently all we have left of the 20th century welfare state that so many people worked so hard to create.

Photo by Mister Higgs

The post The key criticisms of basic income, and how to overcome them appeared first on P2P Foundation.

]]>
https://blog.p2pfoundation.net/key-criticisms-basic-income-overcome/2017/01/10/feed 2 62635