Basic Income: An Idea Whose Time Has Come | James Mulvale | TEDxUManitoba

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Don't let it be a pacifier. (other thread edit: mean /u/Glucksberg comment in particular)

👍︎︎ 2 👤︎︎ u/Jasper1984 📅︎︎ Apr 23 2016 🗫︎ replies
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Translator: Michele Gianella Reviewer: Elisabeth Buffard Good afternoon, Bonjour, Tansi. [English, French, Cree] I'm with the Faculty of Social Work, and I'm here to talk to you about an idea I'm very excited about. I think, as the host mentioned, something we've talked about in Canada for a long time, but it's really been coming to the forefront very recently. It's called basic income, and the place to start is with the definition. It's an income unconditionally granted to each individual without a means test or other conditions. And it actually differs in very substantial ways, very important ways, from existing income security programs. It's paid to individuals, rather than households. It's paid irrespective of any income from other sources. So people will, in the vast majority of cases, continue to work for wages and salaries, will start small businesses, will farm. But it provides a floor for everyone for a very important form of economic security. And it's paid without regard to performance of any paid work. It differs very greatly from the kind of workfare, and punitive, income security programs, which have come into place in recent years. There's two delivery mechanisms for basic income, two general ways in which it can be paid out, and gotten into the hands of all the people in society. The first one's called "a demogrant". This is where a certain amount of money is paid on a regular basis to everybody in society. It could be a check in the mail, it could be deposited in your bank account or credit union account, it can be, if it's designed in this way, taxed back from high-income earners who perhaps need it less. But it does go to everyone in society. The second general way to deliver it is called "the negative income tax", also called "a refundable tax credit". And in this case, a threshold of adequacy is set, an income that everybody needs in order to live a comfortable and dignified life. If you fall below that threshold, then your benefit kicks in. The further you're below the threshold, the more benefit you get to bring you up to the threshold. In that sense it's targeted to those most in need, and it's also perhaps a cheaper way in which to deliver it. We actually have examples of both of these mechanisms still in place, in relation to current benefits for children. Those of you who are old enough to remember the old family benefits, - the baby bonus, in 1995, and previous - it was a demogrant. The current child tax benefit is delivered as a refundable tax credit, or a negative income tax. What I'm going to do for the rest of my talk is give an overview of what I think are the five key reasons we need to implement an effective basic income program in this country. I'll go through each one individually. First of all, it's really important in Canada that we address, reduce, and, one would hope, eventually eliminate poverty. This is an important reason on two counts. First of all, in a wealthy country like Canada, with bountiful resources and one of the highest qualities of life in the world, it's a moral obscenity that we have the high rates of poverty that we have. So there's a moral imperative. The second reason we need to reduce poverty in this country is because it's the smart thing to do. I'll talk briefly about both. First of all, on the moral side, why we need to address poverty. These are some quick statistics. One in seven, 4.9 million, Canadians live in a state of poverty. So it's a general problem. It hits certain vulnerable groups particularly hard. Racialized families, single mothers. The two shocking statistics for me here are 50 percent of status first nations' children live in poverty. Almost 60 percent of women with disabilities. So it's a general problem and it hits particular groups in very hard ways. The second reason we need to reduce poverty, and basic income is a means to do this, I would argue, is that poverty costs us. The combined public and private costs of alleviating poverty or addressing the problems that result from poverty, we get into staggering figures in the 70 and 80 billion dollar range. Remedial cost, this means there's a tremendous relationship between living in poverty and bad health outcomes; disease, hospitalization, heavy reliance on the healthcare system. So if we can reduce poverty, it make sense that we could also reduce costs in the healthcare system. There's other negative effects of poverty that cost us, including children that don't do well in school and need more help, child welfare costs, cost in the criminal justice system. All of these problems are related with high rates of poverty. The second point here relates with poverty, there are costs related to loss of revenues. When you're living in poverty you have many barriers to surmount in order to join the labor market and have a good job. For instance, if you talk to people who live in poverty and have to navigate the labyrinth, the maze, of benefits, conditions, and eligibility criteria, people in poverty often say, "It's a full-time job, trying to be a poor person and trying to get enough money to live." Even if you get some benefits, you're still below any degree of adequacy. So if we had a basic income to eliminate that bureaucracy, that maze, people that are currently living in poverty might actually have the opportunity to get job training, to reorganize their lives, to get a job, and become taxpaying citizens in the labor force. I'd like to move on to the second reason that we need to implement an effective basic income program in Canada. And that relates to equality. There's a relationship between equality and poverty, but they're also distinct reasons, and give us different reasons to think about implementing basic income. This chart here, just to orient you for a minute, this comes from the work of Wilkinson and Pickett, and the Equality Trust in Britain, which has done great work over the years on talking about the effects of inequality in society. Just to explain this chart, the axis on the bottom, going from left to right, tracks increasing levels of income inequality in various societies. Those dots are specific countries. The axis going up and down relates to health and social problems that are related to measures of different health and social problems such as infant mortality, low life expectancy, health problems, high rates of imprisonment, etc. You'll see on the scattergram here that it's good to live in a country that's on the lower left of the diagram. And it's not so good to live in a country that's in the upper right. I don't know how clearly you can see it, but far in the upper-right is the United States, which has high levels of income inequality, and comes out poorly on all these measures of social problems. Down on the lower left are countries where there's a large redistribution of income: Norway, Sweden, Finland, the Nordic countries, and some others. Canada's about in the middle. But what this chart demonstrates, I think, is that the more inequality you have the poorer the quality of life is in a given society. I would argue that basic income can increase equality and lower those kinds of poor social outcomes. The third reason to think about implementing basic income in Canada has to do with enabling human freedom and individual choices. Sometimes basic income is called "a left libertarian idea". It borrows from left political thinking, because it's about looking after one another, and collective responsibility, and helping each other out. But it's libertarian, or relates to freedom, because it also looks at what individuals want to do with their lives, and how they want to chart their course. And one thing that basic income can do is first of all, in a negative sense, give us an exit option. If we have a bad job with a bad boss, or we live with an abusive spouse, or we live in an oppressive community, having an economic floor, a regular income upon which we can depend, it gives us a chance to leave those bad situations and start a new life for ourself. On the more positive side, basic income can enable us to pursue an education, spend more time with our families, take a career sabbatical. Those kinds of choices. The fourth reason that we need basic income in Canada relates to recognizing and supporting all the work that we do, both paid work and unpaid work. First of all, in our society today we have a tremendous problem with precarious employment, increasing numbers of people who work part-time, work on short-term contracts, don't have security of tenure in their jobs. And this is particularly affecting young people. Basic income provides those folks with, once again, a floor upon which to pursue opportunities in the labor market without worry that they're going to... First of all, gives them chances to think about the long term, think about retirement, buying a home, but also gets them out of the day-to-day grind of just trying to make ends meet. There's also increasing attention to changes in the labor market, with information technology and what I would call the relatively jobless future. I don't think paid work is going to disappear. But on the other hand, we can think about automobile assembly line workers. Their work is now done by robots. We can think about bank employees who are increasingly displaced by online banking and automatic teller machines. I was reading recently that even highly skilled occupations like anesthesiology, doctors that work in operating rooms to keep people sedated, they now have machines that can handle all that. So I think the reality is, looking into the years ahead there's going to be fewer good jobs, so we have to think about how everybody's going to have enough money to live on. And lastly, what basic income does is recognize unpaid work, caring work in the home, and work that people do in the community, and expands their definition of work. The last and fifth reason on the list is that I think basic income will move us towards a more sustainable economy and society. I would argue that basic income is necessary: it's not sufficient by itself, it's not going to do the job. We need to think about other things like carbon taxes, lowering consumption, and clean technologies, and so on. But basic income is one necessary ingredient in leaving a habitable planet, an environmentally sustainable planet, for our children and our grandchildren. It talks about redistribution; it's not premised on economic growth. Our welfare state programs as they've developed have really been premised on a growing economy, where everybody gets a slightly bigger piece of the pie. Those days are over. We have to think about steady state economics, and we have to think about redistribution of wealth and society. I think basic income gets us partway towards that goal. And I think basic income can be one of these ingredients in an environmentally sustainable future, that helps us focus more on human relationships and local community life, and really connects us with those around us. It's not about more stuff, it's not about greater levels of consumption; it's about quality of life, and working and living in a communal setting. There's different examples of basic income-like programs that exist in other parts of the world. In the country of Brazil there is a program called "Bolsa Familia". It resembles closely a basic income. It's been in place for years. It's reached millions of Brazilians, and has had a tremendous impact on lowering the depth and breadth of poverty in that country. There's a partial basic income paid out in all places, of all places, the state of Alaska, in the US. The state of Alaska uses part of its oil and gas revenues, puts it away in a separate fund, and pays out a dividend on a yearly basis to every single resident of Alaska. In Europe right now, there's great interest in basic income. Finland recently decided it's going to experiment with this model nationally, and think about setting in place a program. There's local community cities in the Netherlands that are experimenting with basic income at the local level. Similarly, in the country of India, there's actually a very sophisticated study using randomized control trials. Villages, where basic income is given compared to villages were basic income is not given, to measure the effects, and see how it might work. And the initial results are very very encouraging. Right here in Canada, you've probably seen this in the media lately, there's been all kinds of interesti in basic income, just in the last three or four months. Partly due to the change in the federal government. At the provincial level, very recently, both the government of Ontario and the government of Québec have talked about their interest in moving ahead with a guaranteed or basic income model to refashion their income security programs. The Green Party of Canada has been a proponent of basic income for many years. The Green Party of Manitoba is talking about implementing basic income here in Manitoba at the provincial level. And the Liberal Party of Manitoba is talking about experimenting with it and seeing how it might work. It's an interesting idea because it really attracts support from across the political spectrum. It attracts what you might call "Red Tories" like former senator Hugh Segal; he's been a proponent for many years. It attracts thoughtful people in organized labor, on the democratic left, in the Social Democratic wing of our politics who are thinking about it, too. Just one example: the new Minister of Social Development, Jean-Yves Duclos, has signaled his interest in this. We'll see what happens at the federal level. There's a global and grassroots movement supporting basic income approaches. The Basic Income Earth Network [BIEN] is a global body that brings together people interested in basic income from around the world. They're having a conference in Korea at the end of June. The Basic Income Canada Network's [BICN] been around for a while. It's a national body affiliated with BIEN. We've been very busy lately at BICN because of all the interest. Very recently a network has emerged here in Manitoba, Basic Income Manitoba. Just in May, a couple months from now, less than two months from now, we're going to have a congress on basic income. So if anybody is interested in what's happening on the basic income front, might like to come to this congress. Just go on the Faculty of Social Work website and you can find out more about it. So I hope you'll think about it, I hope you'll be interested in this idea, and I really want to thank you for your attention today. Merci, Meegwetch. (Applause)
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Channel: TEDx Talks
Views: 154,198
Rating: 4.5550938 out of 5
Keywords: TEDxTalks, English, Canada, Social Science, Economics, Inequality, Money, Policy, Poverty
Id: ZBWsmoy5Re4
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Length: 17min 52sec (1072 seconds)
Published: Tue Apr 19 2016
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