Universal basic income



What if ... the state provided a proper safety net for all of its citizens? Most people would agree that this is indeed the state’s role, yet the failings of the current system can be seen all around us. Think of those evicted from their homes for non-payment of rent or mortgage, those queuing at food banks and soup kitchens, those who wish to go out to work but cannot due to prohibitive childcare fees: the list goes on.

Although it is most definitely not a panacea for all of society's ills, an unconditional/universal/citizen's basic income/grant - call it what you will - may nonetheless have an enormous role to play in improving on the status quo. I was keen to find out more, so attended the 2016 Social Justice Ireland conference Basic Income: Radical Utopia or Practical Solution? at which it launched its newly-published book of the same name.

It was an enlightening day attended by an interesting mix of academics, practitioners, policy-makers, even a writer researching alternative futures! I got the impression that most members of the audience - including me - were already in favour of the idea of redesigning our tax and social protection systems in order to provide people with a basic income. It would seem to be a much fairer and more efficient way of allocating resources and valuing all of the different types of activity that people engage in, not just traditional paid employment. Malcolm Torry of the Citizen's Income Trust in the UK has come up with well over a hundred reasons why a basic income is a good idea!

However, it was acknowledged throughout the day that this paradigm shift will not happen unless the majority can be convinced that it is both desirable and workable. Seán Healy of Social Justice Ireland outlined some of the objections that would have to be countered, such as: 'it would increase idleness’; 'it would lead to an unmanageable influx of migrants' and 'it would be an inefficient use of public resources'. Malcolm Torry outlined seven different types of feasibility test that would have to be passed in order to prove that the concept would work. Anthony Painter of the Royal Society of Arts in the UK continued this theme and warned that proponents of basic income must navigate a difficult path between competing ideologies. People's concerns about an idea as big as this must be taken seriously and much attention should be paid to norm creation.

There were presentations about basic income experiments that are due to be rolled out in Finland and the Netherlands, which were encouraging because they demonstrated a growing international interest. However, they also highlighted the difficulties encountered in persuading those in power in those countries to come fully on board with the idea.

The conversation then moved on to the possibility of introducing basic income in Ireland. Michelle Murphy of Social Justice Ireland outlined a range of possible pathways that could be taken, each with its own benefits and drawbacks. It became increasingly clear to me that any introduction of basic income would be partial (thus only reaping partial rewards) and/or gradual (5- to 50-year timespans were mooted). Many different possibilities were mentioned on the day, including, amongst others, negative income tax, universal housing subsidy and allowing young people to keep hold of their 'child benefit' (already a universal payment!) as they get older. None of the suggested proposals appear to do away entirely with all other welfare payments and tax breaks.

Basic income should not be considered in isolation. For instance, globally, there are links with unconditional cash transfers. Ideologically, for example, there are links with human rights, feminism, environmentalism and the health and well-being agenda. Lastly and practically, there are links with proposed changes to the state pension system, the need for improved social insurance systems and advances in technology.

The possibilities of basic income are enormous, yet so are the likely constraints. I suspect the journey towards basic income will be a long one. For now, I will watch I Daniel Blake, which was mentioned time and time again as a clear example illustrating why this topic matters so much.

Image: Sandra Velthuis