Universal Unconditional Income in the EU and Russia

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:43

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 possible earnings. If the funds provided in this way are less than the minimum subsistence level, then it is considered partial. Unconditional income is a key component of many models of market socialism. The apologists for the concept are Philippe Van Parijs, Ailsa Mackay, André Gorz, Hillel Steiner, Peter Wallentine and Guy Standing.

Historical roots

The discussion about the need to introduce universal unconditional income began in Europe in the 1970s and 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 an unconditional income payment, albeit a partial one. Similar social security systems exist inBrazil, Macau and Iran. Basic income pilot projects were implemented in the US and Canada in the 1960s and 1970s, Namibia (since 2008) and India (since 2010). In Europe there are political solutions to try to implement them in France, the Netherlands and Finland. In 2016, Switzerland held a referendum on this issue, but 77% of people voted against the introduction of unconditional income.

Sources of funding

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 every citizen. The 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 could be ensured through public ownership of the means of production and natural resources. The “right”, such as Friedman, believed that it was only necessary to introduce a proportional system of taxation. The Greens came up with their own way. They believe that an unconditional income can be financed through environmental taxes. Alternative sources of unconditional income for all include a progressive VAT system and monetary reform.

Pilot programs

The most successful example of the fact that at least a partial unconditional income can beintroduced is the Alaska Permanent Fund. The Bolsa Familia system for poor families in Brazil functions similarly. Other pilot programs include:

• Experimenting with negative income tax in the US and Canada in the 1960s and 1970s.
• Project in Namibia that started in 2008
• Experiment in Brazil since 2008.
• Indian project that started in 2011.
• Give Directly initiative in Kenya and Uganda. It involves sending charitable aid via mobile phones to people living in extreme poverty.
• Study in rural North Carolina in the USA.

In Germany, 26 people participate in the project, each of which is paid 1,000 euros a month by the government. From 2017 to 2019, every resident of Finland will also be paid a certain amount of money 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 Bajdarov proposed an integrated model for Bulgaria. The source of financing for it should be the sovereign currency, VAT return and excise duty. The team has created its own website and pages on social networks. The campaign was advertised on national radio and on the subway. The Foundation has 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 an unconditional income inyour program. It is called the "Bulgarian Union for Direct Democracy" and fights for the right of every person to a decent life.

UK

In the United Kingdom, an unconditional basic income for every citizen has long been a topic of discussion. Dennis Milner also spoke for him in the 1920s. Today, most political parties in the UK 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 the spring of 2016 advocated the replacement of the 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 stated that the introduction of a basic income was being considered by Labor.

Germany

Germany has also been thinking about introducing an unconditional income since the early 1980s. Germany has only recently started a project involving 26 people. For many years, only a few scientists, such as Klaus Offe, advocated the introduction of an unconditional income in the country. However, after the reforms proposed by the cabinet of Gerhard Schroeder in 2003-2005, more supporters of this concept appeared in Germany. In 2009, Susanna Weist, a housewife, spoke at a parliamentary meeting, whose petition received 52,973 votes. In 2010, several free income demonstrations took place in Germany, the largest in Berlin. Since 2011"For" began to speak "Pirate Party". Individual members of other political groups also support the concept of unconditional income.

Netherlands

Unconditional Income was a hot topic from 1970 to 1990. The discussion was originally initiated by the economist Leo Jansen in 1975. The introduction of an unconditional income was included in the electoral program of the Political Party of Radicals. In the last 10 years, the issue has only been raised once. In 2006, Greens leader Femke Halsema included the introduction of unconditional income in her election program. In the city of Utrecht, the fourth most populous city in the country, a pilot project has begun. However, unconditional income should only be paid to groups of people who are already receiving benefits. About 30 cities are currently also considering the possibility of implementing a similar project.

Unconditional income: Finland

Centre, one of the country's four main political parties, like the Left Alliance and the Green League, advocates the implementation of this concept. In May 2015, the government decided to introduce an unconditional income. Finland will be the first country where everyone will receive a certain amount of money over two years, starting in 2017.

France

Unconditional Basic Income has been seen as a concept since the 1970s. However, it was not until 2015 that the regional parliament of Aquitaine voted in favor of its implementation. In January 2016A public advisory body on digital issues has published a report in which it recommends an experiment. A public opinion poll showed that the majority of the population is in favor of paying an 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 are active in promoting 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 126,000 signatures. The referendum in Switzerland on unconditional income was held on June 5, 2016. More than 77% of residents refused to receive 2,500 francs a month.

Russia

Many residents of the Russian Federation were struck by the news that the Swiss simply refused to receive money. 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 proposed to introduce an unconditional income of 2,500 francs, which is about half the average wage. If ause 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 lower. Therefore, there are a lot of people 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 directed 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 pursue what is their calling. And this can have huge positive consequences in the long run. Perhaps people will start doing more fundamental research. And Russia will be waiting for rapid technological progress. Or an unconditional income could help people get more creative. Thus, it is quite appropriate to conduct an experiment in Russia within a single city or target group.

Criticism

The commission of the German parliament discussed the introduction of universal unconditional income and considered the project unfeasible. She made the following arguments:

• It will cause a significant reduction in the motivation to work among ordinary citizens, which, in turn, will lead to unpredictable consequences for the economy.
• A complete restructuring of taxation, social security and pension fund would be required, at significant cost.
• Existing in Germanythe system is more efficient because it is more personalized. The amount of assistance provided is not fixed strictly and depends on the financial situation of the person. For some socially disadvantaged groups, unconditional income may not be enough to live on.
• The implementation of this project will lead to a significant influx of immigrants.
• It will entail the expansion of the shadow economy.
• A corresponding increase in taxes will lead to greater inequality due to a surge in the prices of basic products, which will worsen the financial situation of the poor.
• So far no real way has been found in Germany to finance the introduction of universal unconditional income.

As you can see, for Germany and many other countries, including Russia, the question remains open.