Canada, Finland, and Others Unveil Basic Income Experiments

Having been one of the first countries to test out a guaranteed basic income back in the 1970s, Canada is once again planning to experiment with this idea, via a proposed pilot program wherein low income participants will receive an average of $1,320 monthly without conditions.

The project, which is to be launched in Canada’s largest province, Ontario, in fall of 2017, is laid out in a paper authored by Hugh Segal, a former senator and now special adviser to the province. According to the official proposal, the program’s aim will be to answer the most common questions and concerns regarding a basic income, including:

  • Can basic income policies provide a more efficient, less intrusive, and less stigmatizing way of delivering income support for those now living in poverty?
  • Can those policies also encourage work, relieve financial and time poverty, and reduce economic marginalization?
  • Can a basic income reduce cost pressures in other areas of government spending, such as healthcare?
  • Can a basic income strengthen the incentive to work, by responsibly helping those who are working but still living below the poverty line?

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Why a Basic Income Won’t Lead to Mass Idleness — And Why Less Work Might Not Be Such a Bad Thing Anyway

Work has historically been seen as having a stabilizing effect on both individual’s life and society as a whole. Too much idleness means lots of important things aren’t getting done; widespread boredom and laziness will settle in, causing people becoming self-indulgent, hedonistic, or even immoral. It is little wonder that most people cannot conceive of any other order to our society or economy — what would a world with less work look like? Won’t giving everyone money only guarantee mass departure from the workforce?

Joel Dodge of Quartz takes to task this common counterargument to the universal basic income (UBI), pointing to research showing no ill effects on work ethic and societal productivity: Continue reading

Finland and the Netherlands Experiment With Basic Income

Finland became the first country in Europe to announce plans for the implementation of a basic income program, according to the Basic Income Earth Network (BIEN). (To recap: a basic income is a universal, unconditional form of payment to individuals that covers their living costs. It allow people to choose to work more flexible hours and devote more time to non-work related activities, from caregiving and volunteering, to studying and leisure.)

The commitment consists of one line: ‘Implement a Basic Income experiment’, in the ‘Health and Welfare’ section of the programme.

The main party of government, the Centre Party and the new Prime Minister Juha Sipilä, are known to be supportive of Basic Income, but his new government partners, the populist Finns Party and conservative NCP have not spoken publicly on the issue. The scant reference to Basic Income raises some doubts about the government’s commitment to the policy.

So while it is far from a done deal — especially as the government has yet to release any further details, including a timeframe — it is nonetheless a big step, as few other countries, even in socially progressive Europe, have ever made such a formal, nationwide commitment.

Meanwhile, the fourth largest city in the Netherlands, another country that has been mulling over a basic income, is set to implement a plan of its own. The intention is not only to determine if a basic income will help people in absolute terms, but to see how its efficiency compares to the status quo of welfare payments. From The Independent:

University College Utrecht has paired with the city to place people on welfare on a living income, to see if a system of welfare without requirements will be successful.

Alderman for Work and Income Victor Everhardt told DeStad Utrecht: “One group is will have compensation and consideration for an allowance, another group with a basic income without rules and of course a control group which adhere to the current rules.”

“Our data shows that less than 1.5 percent abuse the welfare, but, before we get into all kinds of principled debate about whether we should or should not enter, we need to first examine if basic income even really works.

“What happens if someone gets a monthly amount without rules and controls? Will someone sitting passively at home or do people develop themselves and provide a meaningful contribution to our society?”

It is not surprising that the Dutch would lead the way in this experiment, given that they already have a well-established fondness for less traditional work environments — 46.1 percent of the labor force works part-time, the highest proportion in the European Union, and the nation is nonetheless broadly prosperous, with a high rate of life satisfaction. This is a country that already leads the way in work-life balance, so it would be interesting to see how this endeavor goes and whether it will catch on elsewhere in the country or beyond.

Finland and the Netherlands are the first developed nations to experiment with a guaranteed basic income since the 1970s, when Canada conducted a pilot project dubbed “Mincome” in a small town, with great results. Other experiments have been performed more recently in India, Namibia and Brazil, each one of them reporting measurable, positive outcomes in everything from poverty reduction to healthcare and general wellness.

As BIEN notes, there is an increasing interest in Basic Income worldwide, as well there should be: from mounting inequality to a dearth of well-paying and sustainable jobs, there are plenty of good reasons to consider at least trying out this streamlined and promising approach to alleviating poverty and improving quality of life.

A Quick Guide to the Guaranteed Basic Income

Although not a new idea, the concept of a guaranteed basic income — also known as a guaranteed minimum income or universal basic income — seems to be gaining a lot more traction lately. Amid concerns about rising poverty and inequality, as well as greater scrutiny on the failings and inefficiencies of current welfare programs, the allure of a more streamlined and equitable income for all seems obvious; hence why thinkers and activists across the political spectrum — from Martin Luther King, Jr. to Milton Friedman — have advocated one form of it or another.

If you would like a great breakdown on what this idea entails and how it would be implemented, check out this article on Vox.com. It does a pretty good job of introducing the subject in a balanced and holistic way, including analyzing the various arguments for and against a basic income by conservatives, liberals, and libertarians. What do you think?