The Guaranteed Minimum Income as an alternative to the Basic Income

Excerpted from Francine Mestrum:

“However much one may want to introduce a universal system of social protection with individual rights, if a BI implies that a substantial part of society would have to live with an amount beneath the poverty line, it is not convincing.

In view of the fact that higher classes do not really need a BI, it seems to be more interesting to insist on the introduction, in all EU Member States, of a guaranteed income for all those who do not participate in the labour market or do not earn enough. Such an income should amount to 60 % of the median income in the EU Member States, the official poverty line. Such a system is also difficult to finance[6], but with solidarity among EU Member States and regions it is perfectly feasible.

It also seems clear to me that we should continue to resist the European efforts to exclusively focus on participation in the labour market and on having everyone working much longer. At this moment, there are not enough jobs for everyone, let alone for people older than 65 years. Social needs are not that important as to make this necessary.

The BI is an attractive proposal that implies a total re-thinking of our social protection. It therefore deserves to be further reflected on in order to see if more modulated versions can be possible.

At any rate, our social protection has to be re-thought and simplified, the excessive fragmentation has to be countered. The way social protection is now being dismantled is not acceptable. But trade unions are on the defensive and remain very silent whenever a progressive reform could be discussed. It means that our societies are now victims of neoliberal reforms. A partial decoupling of labour and income/social protection could be discussed. A passing on of non wage labour costs to the whole of society should not.

A flexible labour market in favour of workers, lower and differently organised social contributions in order to avoid the delocalisation of labour, a better and simplified protection against unemployment, better pensions, different family allowances and a more efficient health care system focused on prevention. These points are perfectly possible but are insufficiently reflected on to-day.

The system that will emerge from neoliberal reforms implies a lowering of social assistance and unemployment benefits, in such a way that people will at any rate be obliged to accept a ‘mini job’, even after they are pensioned. This system does not benefit anyone, except employers.

The BI is a system conceptualized by liberals that want to make labour more cheap, without allowing to eradicate poverty. It is conceptualized by the enemies of trade unions. It is also conceptualized by progressive people who think social protection is too complicated and who want to seriously simplify it. There are good arguments to defend such an idea, but the current proposals are highly unsatisfactory.”

1 Comment The Guaranteed Minimum Income as an alternative to the Basic Income

  1. AvatarTom

    “In view of the fact that higher classes do not really need a BI, it seems to be more interesting to insist on the introduction, in all EU Member States, …”

    Targeted policies does not a robust welfare society make. The most successful welfare societies have largely universalistic institutional structures and that is not by accident. The basic income is an extension of that universalistic tradition.

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