The Seven Questions of Basic Income Implementation

From the first meeting of our Implementing a Basic Income in Australia group, I presented my outline of what I think are the fundamental questions which need to be answered before a Basic Income can actually be implemented.

In order to answer these questions we want to organise a range of experts on social and economic issues into working groups so that they can discuss the consequences of each decision and how it will be beneficial or detrimental to society, economics, welfare, well-being, employment, power imbalance, freedoms, etc.

The questions are:

  1. How Much / How Often?
    $1 – $10,000+ / Paid daily – Paid annually
  2. What scale is it implemented on? Where?
    Small town? Council? City? State? National.
  3. Who gets it?
    Everyone? Citizens? Residents? 18+? Based on tax return submission? etc
  4. How is it funded?
    Local government? Federal Govt? Increased taxes? New (resource?) taxes? Debt? Transaction tax? Charity? Crowd funding? New money straight to the people?
  5. How long will it run for?
    2 years? 10 years? Indefinitely? 5 years on, 5 years off, etc?
  6. What does it replace?
    Replace all welfare? Just unemployment benefit? Nothing? Minimum wage? Wait and see?
  7. Will there be a transitional period? What will it look like?
    Instant implementation, or gradual implementation over time?

(Have I missed any? Please leave a comment below if I have!)

The answers to each of these questions often influences the answers to others. For example, if you want a National (Q2) Basic Income, it will be virtually impossible to fund that through Charity of Crowd sourcing (Q4), but there is a chance that you could fund a Partial Basic Income (Q1) for 2 years (Q5) in a small remote town (Q2) via charity (Q4).

Of course, a partial income in a small remote town isn’t the ultimate goal, so then we’re talking about a first step implementation. A trial, or a demonstration of value, hoping that it will grow to other towns or else convince enough of the population to enact a nationwide Basic Income. In this case, we’d have to design the best “initial test case implementation” and then a second “Ultimate goal implementation” and perhaps even design the strategy which will take us from the initial test to the ultimate goal.

Whether we want a small test case first or not is still to be answered. I don’t believe the NHS, medicare, welfare etc had incremental steps to implementation, so perhaps it is an error to think that a Basic Income would need it. Perhaps we should instead be focusing on the best possible design for Australia, and then fight for grassroots support of that system while lobbying political parties and getting the support of influential think tanks.

This is all just a first step. We still need to reach out to existing Basic Income organisations (BIEN, QUT, Utrecht University (BIParty NL) etc) to see what information, research and conclusions they are able to share with us which will help inform our answers to these questions.

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A response to Tim Worstall’s article Raising America’s Pay; Might Someone Hit The EPI With A Cluebat Please

I came across this article shortly after it was published, and meant to publish this response back then, but have been exceedingly busy. So here it is now.

In his article Raising America’s Pay, Tim Worstall argues that the Economic Policy Institute has made untrue claims about poverty staying the same despite continuous economic growth because the way the USA measures poverty is flawed and doesn’t take into account the support provided by the government. In his own words:

The American system is much closer to a measurement of here’s the number of people who would be poor if we weren’t helping to alleviate their poverty.

So basically, Tim’s argument is that because the government provides support for many people who would otherwise be in poverty, the EPI’s claim that a growing economy has not proportionately pulled people up out of poverty is untrue.

This argument doesn’t make sense.

Companies are making more money than ever. The wealthiest are making more money. The poor though, they’re getting more government hand outs – therefore a rising tide floats all ships…? No. Clearly, the basic argument of the EPI report remains valid. Exceptional economic growth has NOT improved the lives of the poorest. Continual government oversight and support has done a bit to help them, and that is all.

So, the evidence here seems perfectly clear. Strong economies don’t alleviate poverty. Strong governments do. The rational advice would be to tax the wealthy more, and give that money to the poor.

 

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