Hi Robert,



Two thoughts on this;



One, the UBI's and GBI's that have been proposed so far, have been contrived as if they were 'made to fail' the smell test for voters who might be asked to vote on such initiatives.



Two, there is nothing that a national (and effective) job-sharing scheme can't fix in regards to high unemployment levels, regardless of how high the unemployment rate soars.



I'm a firm proponent of UBI (Unconditional Basic Income) or GBI (Guaranteed Basic Income)



And I will strongly support it, in the absence of an effective job-sharing programme -- which should be our highest priority.



In Sweden, they have mandatory job-sharing. Which means that by law, every worker must work for a minimum of 6 months per year.



That's right, everyone who is not a student, not retired, not on maternity/paternity leave, or not disabled, is classed as a worker and must work a minimum of 6 months per year.



Sometimes, two people share the same job their entire career -- 6 months "on" and 6 months "off" work.



In Sweden, there are two unemployment insurance schemes:



One is the government scheme which pays unemployed workers 66% of their normal salary (most countries have this setup)



The other is a public/private insurer that workers can voluntarily pay into that allows them to purchase additional unemployment insurance coverage.



Both the government unemployment insurance scheme and the public/private unemployment insurance scheme are money-makers! (And why not?)



For the equivalent of only one or two pennies per dollar earned, workers can purchase additional unemployment insurance -- so that during their layoff (of up to 6 months) they receive the normal 66% of their salary from the government unemployment insurance scheme -- but also receive up to 33% of their normal salary from the public/private unemployment insurance scheme.



When Swedes get their layoff notice, it's not a traumatic event in their lives.



From the first day of layoff, they're on a fully-funded unemployment insurance program that pays them up to 99% of their normal wages, and with no application process, nor waiting period. It's automatic.



It depends upon how much additional coverage they've purchased, most people only purchase an additional 24% coverage, giving them 66% + 24% = 90% of their normal salary.



Why don't they buy 33% coverage?



Because they no longer have commuting expenses, work clothing expenses, and other work-related expenses. It's actually a net benefit to purchase only 24% coverage. But it's completely their call to purchase any amount of public/private insurance that they want.



In Sweden, workers don't need UBI or GBI -- as they are either working, or receiving unemployment insurance that they've purchased themselves.



Companies in Sweden like this arrangement as they always have a large pool of fully-trained workers from which to choose.



When workers return to the company after 6 months, they receive a 1/2 day refresher course on their old job.



Also, in the case of an ill or injured worker, Swedish companies simply call-in one of their unemployeds to fill-in for the injured worker -- at full pay.



Workers gladly accept this, as not only do they continue to receive their unemployment insurance benefits (both the government UI and the public/private UI) but they also get the daily wage from the employer for as many days as they're required to fill-in for the injured worker.



Yes. As you might expect, there's a waiting list! The most senior people are at the top of the 'Do Call' List, whenever an employee has time away from work for illness.



It's a great thing for companies, for workers, and for those trying to raise young families in uncertain economic times.



In Sweden, if you're a worker, you're covered! No matter what.



Either you're *at work* getting 100% of your normal salary -- or you're *at home* getting (typically) 90% of your salary.



And throughout your entire career, you will be in one of those two categories.



If you think that workers and their families like that system, you should talk to the companies! They like it even more.



In Sweden, Nobody Lives in Dumpsters.

Now you know why!



Thank you, Robert, for posting your illuminating essays at ProSyn!



As always, very best regards, JBS



https://johnbrianshannon.com/2015/06/24/in-sweden-nobody-sleeps-in-dumpsters/