Unconditional income is a form of social security system in which all citizens and residents of a country regularly receive a certain amount of money from the state or from any other public organization in addition to earning money. If the funds provided in this way are less than the minimum cost of living, then it is considered partial. Unconditional income is a key component of many models of market socialism. The apologists for the concept are Philip Van Paris, Ayles Mackay, Andre Gorz, Hillel Steiner, Peter Wallenstein and Guy Standing.
Historical roots
The discussion about the need to introduce universal unconditional income began in Europe in the 1970-1980s. It was partly driven by debate in the US and Canada. The issue gradually began to be discussed in all developed countries, Latin America, the Middle East, and even in some states of Africa and Asia. The Alaska Permanent Fund is considered one of the best examples of paying unconditional income, albeit partial. Similar social security schemes exist in Brazil, Macau and Iran. Basic income pilot projects were implemented in the USA and Canada in the 1960s and 1970s, Namibia (since 2008) and India (since 2010). In Europe, there are political decisions to try to implement them in France, the Netherlands and Finland. In 2016, a referendum was held in Switzerland on this issue, but 77% of people voted against the introduction of unconditional income.
Sources of financing
When Milton Friedman and other economists first proposed a negative income tax, it was believed that a proportional system would reduce bureaucracy and eventually lead to a guaranteed income for each resident. Supporters of this concept were the "greens", some socialists, feminists, and the so-called pirate parties. Representatives of various economic schools offered to finance this project in different ways. Socialists believed that universal unconditional income can be achieved through public ownership of the means of production and natural resources. The "right", for example, Friedman, believed that it was only necessary to introduce a proportional tax system. Greens have proposed their own way. They believe that unconditional income can be financed through environmental taxes. Among the alternative sources of unconditional income for all are the progressive VAT system and monetary reform.
Pilot programs
The most successful example that even a partial unconditional income can be introduced is the Alaska Permanent Fund. Similarly, the Bolsa Familia system works for poor families in Brazil. Other pilot programs include:
- Experiments with negative income tax in the USA and Canada in the 1960s and 1970s.
- A project in Namibia that began in 2008.
- An experiment in Brazil since 2008.
- The Indian project, which began in 2011.
- Give Directly Initiative in Kenya and Uganda. It involves sending charitable assistance via mobile phones to people living in extreme poverty.
- A study in the countryside of North Carolina in the USA.
In Germany, 26 people participate in the project, each of which the government pays 1, 000 euros a month. From 2017 to 2019, a certain amount of money will be paid to each resident of Finland as part of the experiment.
Bulgaria
At the end of March 2013, The Blue Bird Foundation found out about the “European Residents Initiative for Unconditional Income” and decided to join the campaign. Tony Badzhdarov proposed a comprehensive model for Bulgaria. The sovereign currency, refundable VAT and excise tax should be the source of financing for it. The team created its own website and pages on social networks. The campaign was advertised on national radio and in the subway. The fund managed to get the support of several associations and trade unions. The initiative in online voting was supported by a record number of people. In December 2014, the first political party appeared, which included the introduction of unconditional income in its program. It is called the “Bulgarian Union for Direct Democracy” and is fighting for the right of everyone to a decent life.
United Kingdom
In the United Kingdom, the unconditional basic income for each citizen has long been a topic of discussion. Dennis Milner played for him in the 1920s. Today, most political parties in Great Britain either do not consider this idea at all or oppose it. However, there are also supporters of unconditional income. The Scottish National Party, at a conference in spring 2016, advocated replacing existing social security. Some other political associations also spoke in favor. Among them: the "greens", the Scottish socialists and the "pirates" of the United Kingdom. In February 2016, John McDonnell announced that the introduction of basic income is being considered by Labor.
Germany
Germany since the early 1980s has been thinking about introducing unconditional income. Germany has just recently begun to implement a project in which 26 people participate. Over the years, only a few scientists, for example, Klaus Offe, have advocated the introduction of unconditional income in the country. However, after the reforms proposed by Gerhard Schroeder’s cabinet in 2003-2005, more supporters of this concept appeared in Germany. In 2009, Susanna Weist, a housewife, raised 52973 votes in a parliamentary meeting. In 2010, several demonstrations for unconditional income took place in Germany, the largest in Berlin. Since 2011, the Pirate Party began to speak in favor. Individual members of other political associations also support the concept of unconditional income.
Netherlands
Unconditional income was heatedly discussed from 1970 to 1990. The discussion was originally initiated by economist Leo Jansen in 1975. The introduction of unconditional income was included in the election program of the Political Party of Radicals. In the past 10 years, the question has been raised only once. In 2006, the leader of the Greens, Femke Halsema, included the introduction of unconditional income in her election program. In Utrecht, the fourth most populous country in the country, a pilot project has begun. However, unconditional income should only be paid to groups of people who already receive benefits. About 30 cities are currently also considering the possibility of implementing such a project.
Unconditional income: Finland
The Center, one of the four main political parties in the country, like the Left Alliance and the Green League, advocates the implementation of this concept. In May 2015, the government decided to introduce unconditional income. Finland will be the first country in which everyone will receive a certain amount of money over two years, starting in 2017.
France
Unconditional basic income has been regarded as a concept since the 1970s. However, only in 2015 did the regional parliament of Aquitaine vote for its implementation. In January 2016, a public digital advisory body published a report in which it recommends an experiment. A survey of the population showed that a large part of the population favors the payment of unconditional basic income to all citizens.
Switzerland: referendum
Unconditional basic income has long been discussed in the country. In Switzerland, the BIEN-Switzerland association and the Grundeinkommen group operate, which advocate for the implementation of this concept. In 2006, sociologist Jean Ziegler called unconditional income in Switzerland one of the most progressive ideas. In 2008, Daniel Honey and Enno Schmidt made a film in which they tried to explain the benefits of implementing this concept. It was watched by more than 400 thousand people. Largely thanks to him, even more people in German and French-speaking countries became supporters of the idea. In April 2012, unconditional income in Switzerland became the subject of a popular legislative initiative. The campaign managed to collect the necessary 126 thousand signatures. The referendum in Switzerland on unconditional income was held on June 5, 2016. More than 77% of residents refused to receive 2500 francs per month.
Russia
Many residents of the Russian Federation were struck by the news that the Swiss refused to receive money simply. The question immediately arose, is unconditional income possible in Russia? Among the shortcomings of such a social security system is not only an increase in the tax burden on the country's inhabitants and a decrease in motivation to work, but also an increase in the number of immigrants. In Switzerland, they suggested introducing an unconditional income of 2, 500 francs, which is approximately half the average wage. If we use this calculation methodology for Russia, then here it would be about 10, 000 rubles. From July 1, the minimum wage will be only 7.5 thousand, the cost of living is even less. Therefore, there are many who want to "sit at home." According to experts, the introduction of unconditional income in Russia can only stimulate inflation, because payments will not be personalized and aimed at the most vulnerable segments of the population. However, there is another point of view. Some experts believe that the introduction of unconditional income will allow people to do what their calling is. And this can have huge positive consequences in the long run. Perhaps people will begin to do more basic research. And Russia will be waiting for rapid technological progress. Or unconditional income can help people do more creative work. Thus, it is quite advisable to conduct an experiment in Russia within a single city or target group.
