Finland’s Basic Income Trial Ends — But New Ideas Emerge

I previously discussed the Finland’s basic income experiment, which was one of several being conducted across the world. After a little over a year, the Finnish trial — which involved 2,000 unemployed citizens receiving a flat monthly payment of $685 — has come to an abrupt close following the government’s lack of interest. As the BBC reported:

 

Finland’s two-year pilot scheme started in January 2017, making it the first European country to test an unconditional basic income. The 2,000 participants – all unemployed – were chosen randomly.

But it will not be extended after this year, as the government is now examining other schemes for reforming the Finnish social security system.

“I’m a little disappointed that the government decided not to expand it,” said Prof Kangas, a researcher at the Social Insurance Institution (Kela), a Finnish government agency.

Speaking to the BBC from Turku, he said the government had turned down Kela’s request for €40-70m extra to fund basic income for a group of employed Finns, instead of limiting the experiment to 2,000 unemployed people.

It is unfortunate that a government otherwise open to bold new solutions to social problems has opted out of taking this trial to the next level. Continue reading

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Nearly Half of All Americans Avoid Health Care Due to Costs

Courtesy of Forbes comes a depressing yet not entirely surprising report:

Cost continues to be a barrier to treatment with 40% of Americans who say they “skipped a recommended medical test or treatment in the last 12 months due to cost.”Another 32% were “unable to fill a prescription or took less of a medication because of the cost,” the West Health/NORC poll of more than 1,300 adults said.

“The high cost of healthcare has become a public health crisis that cuts across all ages as more Americans are delaying or going without recommended medical tests and treatments,” West Health Institute chief medical officer Dr. Zia Agha said in a statement accompanying the poll results. The survey is being released at this week’s American Society on Aging 2018 Aging in America Conference in San Francisco.

The West Health-NORC poll is the latest national survey showing Americans continued frustration with high healthcare costs even as the U.S. spends more than $3.3 trillion annually on healthcare.

Note that those who skipped doctor’s visits and medication did so despite being sick or injured — such is the state of both the U.S. healthcare system and the national economy.

Also consider the following comparative analysis of maternal healthcare from The Economist:

In 2015, the Lindo Wing [where the third royal baby was born] charged £5,670 ($8,900) for 24 hours in a deluxe room and a non-Caesarean delivery. A survey in the same year by the International Federation of Health Plans found that the average fee for such a delivery in the United States was $10,808. That rises to roughly $30,000 after accounting for care given before and after a pregnancy, according to Truven Health Analytics. Insurers cover most of the cost, but parents are still left with an average bill of about $3,000. In many European countries, free maternity care is available.

A visual of this disparity really drives the point home:

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With all the wealth and economic potential of our $18 trillion-plus economy, one would think we could figure out a way to make having a baby, or getting routine treatment at a clinic, more accessible and affordable.

Executive Bonuses as Motivation

As much of the country laments the demise of Toys R Us — a source of much nostalgia for generations of Americans since the late 1950s — it is worth taking a look at one way the company tried to climb out of bankruptcy just a few months prior: giving its top executives millions of dollars. Quoting a December 2017 article of USA Today: Continue reading

The World’s 2,000 Billionaires Could End Extreme Poverty Seven Times Over

According to the latest report from Oxford International, a U.K.-based confederation of twenty independent charities, the world’s 2,000 or so billionaires saw their collective wealth surge by $762 billion — enough to end abject poverty seven times over.  As Time.com reported: Continue reading

The Rare Privilege of Education

Fewer than 7 percent of the world’s population (6.7 percent) has a college degree of any kind. (This is up from 5.9 percent about two decades ago.) An even smaller proportion of this population has earned a degree beyond a Bachelor’s, and an even tinier fraction of those people have attained a degree from a reputable or good quality institution.
 
As much as I obviously lament student debt, the financial inefficiency and inaccessibility of our education system, etc., I must acknowledge that I am still extremely privileged to be able to pursue a fulfilling career at a fairly prominent law school. I am fortunate to have been born in the right time and place where such opportunities are available; I am lucky to have enjoyed relatively good health, no major family tragedies, good parenting, and an overall stable socioeconomic environment that facilitated my educational attainment and development up to this point.
 
I must never forget how much good luck played a role in where I am today. It is a humbling and effective motivator for working hard and not squandering this rare opportunity, by global and historical standards. (And also a good cause of action to help more people get access to these opportunities..)

Why Do Millions of Children Have to Die?

It is fitting that following my previous post on the growth in the global millionaire community, I decide to reflect on the moral travesty that is child mortality. I say moral because it is a problem that need not still exist to the degree that it does, and that only persists because our global economic system are not sufficiently guided by ethical principles.

Historically, around 43 percent of children died before the age of five; as fairly recently as the 19th century, every second or third child would perish, even in relatively developed Western countries. Although child mortality has declined rapidly over recent decades — down to 4.3 percent globally, compared to 8 percent in 2000 and 18 percent in 1960 — it is still far higher than it should be.

Nowadays, anywhere from 6 to 9 million children die before their fifth birthday, and nearly half of them die within a month of their birth. (This does not include millions more that die before adulthood.) About 42 countries, mostly in sub-Saharan Africa, account for 90 percent of these deaths. Two-thirds of these children die from causes that are easily preventable, namely diarrhea, pneumonia, malnutrition, and malaria. Continue reading

How Global Inequality Undermines Global Democracy

Yet another massive leak of offshore banking documents has revealed the remarkable extent of the world’s “parallel economy”, in which a large and growing proportion of global wealth is secretly stashed away in a complex and opaque network of tax havens.

In addition to the obvious diversion of literally trillions of dollars of capital that could be better spent alleviating the needless suffering of billions (with plenty left over to spare), this development is arguably a threat to democratic governance the world over, as Matt Phillips at Vice argues. Continue reading

Distrust of Big Business at All-Time High

The post recession world has, understandably, been a deeply cynical place, and a major indicator of this is the historically high level of distrust of corporations, if not the U.S. economy in general. As The Economist reported:

The share of Americans who hold “very” or “mostly” favourable opinions of corporations has fallen from 73% in 1999 to 40% today, according to the Pew Research Centre. Surveys by Gallup of views on big business show less extreme swings, but point in the same direction (see chart). Over 70% of America’s population believes that the economy is rigged in favour of vested interests.

Such growing hostility to business is in evidence across the rich world. Britain’s decision in June to leave the European Union was driven in part by popular discontent with big business, which had lobbied heavily to remain. Many continental Europeans are becoming ever more vocal in expressing their long-standing doubts about “Anglo-Saxon capitalism”.

This backlash against big business is already having an impact on policymakers. The antitrust division of America’s Department of Justice says that under President Obama it has won 39 victories in merger cases—deals blocked by courts or abandoned in the face of government opposition—compared with 16 under George W. Bush. Those victories included a string of blockbuster deals such as Comcast’s proposed bid for Time Warner Cable and Halliburton’s planned takeover of Baker Hughes. The European Union has launched a succession of tough measures against Silicon Valley’s tech giants, such as asking Apple to stump up billions of euros in allegedly underpaid taxes in Europe, and allowing European news publishers to charge international platforms such as Google that show snippets of their stories. Britain’s new prime minister, Theresa May, has said that she may cap CEO pay and put workers on boards. Governments worldwide have started co-operating to curb the use of tax havens.

Continue reading

The Globalization of Plutocracy

According to a 2015 paper by American political scientist Larry Bartels of Vanderbilt University, the gap between the rich and poor — and the subsequent unresponsiveness of government to the needs of the majority — is not just a feature of United States, as a multitude of studies have revealed. The struggle between the haves and have nots seems inextricably tied to our species, varying only be degree.

For example, in almost every nation Bartels studied, the wealthy were generally and categorically opposed to social spending, even during bad economic times. Continue reading