The Universal Basic Income (UBI):

It’s not that it is the Solution;

It’s that its Absence is the Problem.

The Universal Opportunity Foundation (UOF): The Underlying UBI Philosophy

Standing in stark contrast to The Safety Net, The Universal Opportunity Foundation philosophy states there are 4 cornerstones, which every individual needs in order to maximise their:

Human capital; Human utility (happiness); and, Human freedom (so long as it is not societally detrimental).

which, in turn, is needed to maximise a society’s stability-development capacity.

These 4 UOF cornerstones are:

Universal Liberal Democracy – i.e. an environment of freedom of information achieved through freedom of speech and a free press in which there is universal-suffrage, compulsory-voting and a secret-ballot; Universal Healthcare; Universal Education; and, The UBI.

While, until now, there has been no UOF narrative; nevertheless, since the start of the Industrial Revolution (when the modern society arose out of communal subsistence), in the West, all four of these cornerstones have, to varying degrees, evolved.

However, this evolution through bottom-up fighting as opposed to top-down implementation has resulted (and, because the process is not yet complete, continues to result) in vast Unnecessary Suffering bred right at the foundation of our societies.

While, in Australia, the first three cornerstones have evolved, the progression towards the UBI is stuck in an evolutionary cul-de-sac.

That is, during the Industrial Revolution, in the absence of a UBI, workers rightfully fought for and won wage (and conditions) increases.

However, while this eventually ensured all wages were above the poverty-line, this had two deleterious effects:

Minimum wages interfere – cause distortions – in the labour market; and, Minimum wages are non-universal – i.e. it is only applicable for workers.

However, instead of this being a first-step towards a UBI, this has led to a second-best so-called Safety Net Income consisting model of minimum wages, pensions, disability, Newstart etc in which the welfare component is characterised by:

Stigma; Means-testing; Mistakes; and, Inefficiencies including the welfare-to-work issue.

This Safety Net model is dominated by:

The trade-union lobby; and, Minimum wages.

Unlike the minimum wage, which distorts the market, distortionarily, the UBI is far less intrusive such that, rather than being government expenditure, it is a transfer to citizens in that the government is not purchasing anything – i.e. there is no exchange.

However, in order to extract our society from this evolutionary cul-de-sac, we need to embrace the UOF narrative and top-down implement the UBI.

A corollary to implementing the UBI is, with everyone living above the poverty-line, the labour market must also be deregulated, which will allow full-employment such that ‘anyone who wants a job can get a job’ .

Regarding the UBI’s financial cost-benefits, in terms of ‘back of the envelope’ calculations (2018 figures):

The Australian economy is $1.75 trillion; Social Service budget $175 billion;

The UBI headline transfer is about 350-400 billion – a UBI of $19,000 per adult ($5,000 per child) per year;

As a transfer, it has almost zero cost/dead-weight-loss except from the tax-raising distortion, which, as I shall show, is a vast improvement on what we have now;

Perhaps 150 billion saved from abolishment of Centrelink and other social service programs – still need a top-up for pension supplement;

Income tax revenue increased by about $35 billion through abolishment of tax free threshold; and,

20% GST implemented on all goods and services (currently GST revenue is around 60 billion and is distortionary because it is not consistently applied across the board), which will raise around $200 billion – i.e. around $140 billion more than is currently being raised.

At this point, we have: 400 – 150 – 35 – 140 = only $75 billion (maximum) extra to be obtained.

In addition to the added efficiency of the new full-breadth GST, there is also:

vast decrease in crime (jails, courts, police), health problems etc; vast decrease in environmental damage including waste; the labour market may be deregulated, which will achieve full-employment – currently, we have 5.7 million volunteers earning $0.00 per hour yet it is illegal to earn anywhere between $0.01 and $19.48 per hour. The unemployment is officially around 700,000 – so perhaps double that can now be added to the workforce – paying taxes and producing; productivity goes up (there is a worker’s paradise) because employers must make it a good place to work in order to keep their workers – accordingly, the low-paid begin being treated like those in demand (computer engineers etc) because, now, they are in demand; tradable industries return – perhaps car industry – because Australian workers are now competitive. with full-employment, the economy can be returned to its natural role of ‘efficiently producing the goods and services we need’ rather than as a system for ‘protecting and creating jobs’ of which many are nonsense jobs; and, current welfare to work distortion abolished.

Hence, the UBI won’t cost anything; on the contrary, it will make us rich (I suspect about as effectively rich as Luxembourg), productive and happy.

Thus, by educating people to the UOF narrative generally and to the UBI cornerstone specifically, we believe the UBI can be achieved.

Accordingly, The Citizen’s Dividend Organisation’s Intent is:

Short-term interim goal: By the 2022 Australian Federal Election, the UBI be an election issue – specifically, it be incorporated as the foremost policy in either an existing or new registered political party; Medium-term end goal: By 2025, the UBI be implemented.

With the UBI:

Australian Citizens: Every Citizen will be eligible to receive well in excess of $19,000 a year. Every Citizen who wants a job can get one. Unpaid Carers, Scientists, Inventors, Entrepreneurs, Artists, Writers, Amateur Sportspeople, Students etc. can live minimally without being forced into paid work. Australian Society: Social trust and cohesion will be maximised. The economy will be far better – stronger and far more efficient. Government spending on Health, Education, Environment, Defence etc. is not only increased but its effectiveness is also vastly improved. The environment will be immensely improved.

https://www.facebook.com/The-Citizens-Dividend-Organisation-1860033980792048/

Twitter: @paulross2