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UBI: The Future of Free Money

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  • UBI: The Future of Free Money

    From the rumblings going around, it looks like Universal Basic Income is about to get taken seriously. It might be the only way the DC pols stave off the torches and pitchforks. Here's something to start with. Your thoughts?

    https://mashable.com/feature/univers...income-future/

    The future of free money

    After the coronavirus, Universal Basic Income seems inevitable. What will the world look like when we all have enough?


    by Chris Taylor

    NOTE FOR 2020 READERS: This is the tenth in a series of open letters to the next century, now just 80 years away. The series asks: What will the world look like at the other end of our kids' lives?

    Dear 22nd Century,

    When I began this thought experiment of writing letters to a world eight decades in the future, I needed a handle on what that meant. So I thought about how different the world was eight decades in the past. How grim everything looked during the Great Depression and the run up to World War II! The high-tech, economically booming and relatively peaceful world I lived in, with all its flaws, would have seemed like utopia by comparison.

    Never did I imagine, in 2018 and 2019, that we would soon find ourselves teetering on the brink of another Great Depression. A recession, yes; those are cyclical, and we were overdue. But a Depression? Well, we don’t really have a standard definition for one, but we usually think of mass unemployment, which reached as high as 25 percent in 1933. Even in the darkest days of the post-2008 recession, unemployment was never higher than 10 percent. In December 2019, some 3.5 percent of the U.S. population filed unemployment claims, a 50-year low.

    Then came the coronavirus, and the worldwide shelter-in-place orders required to combat it. All of a sudden, the economy started shedding around a million jobs a day. By the end of April 2020, even government economists were predicting 17 percent unemployment, and that wasn’t even the worst-case scenario. The economy may shrink by up to 30 percent in the second quarter of 2020, they said; another common measure of a depression is a 10 percent-plus contraction. And if these statistics were too hard to process, we also had long lines at food banks to rival any Depression-era breadline photograph.

    But enough about us. Let’s talk about you. Will the 22nd century have learned from our mistakes? Will you look back at the unemployment crisis of the 2020s and shudder, grateful in the knowledge that it can never happen again? Will you, in short, have instituted a true, guaranteed, Universal Basic Income for every citizen?

    That future seems much more likely all of a sudden. If there is one silver lining of the coronavirus crisis, it is this: UBI is well and truly on the agenda. At the beginning of the year it was a fringe idea that one U.S. presidential candidate made the focus of his campaign. Now the House of Representatives’ finance committee has suggested paying every American $2,000 a month for the duration of the crisis and a year after. As I write this, House Speaker Nancy Pelosi — a cautious progressive at the best of times — announced that UBI is “worthy of attention… we may have to think in terms of some different ways to put money in people’s pockets.”

    Perhaps we won’t get a true UBI this go-around. But COVID-19 is likely just the first in a series of worldwide shocks we’ll have to steel ourselves for. Climate change makes pandemics more likely, not to mention other natural disasters that will threaten the lives of millions and the livelihoods of millions more. The quarantine we’re currently in is by no means the last of the century; it’s just the first one to shine a spotlight on how amazingly automated human society has become. We’re all feeling pretty disconnected and fearful right now, but without the internet and automated supply chains it would be a thousand times worse.
    Life after COVID-19

    The fact is, we can’t flatten the curve of automation. There is no vaccine for AI. According to a landmark 2013 Oxford University analysis of 703 occupations, reaffirmed by the authors in 2017, 47 percent of all jobs in the U.S. are at risk of being lost due to automation in the next 25 years. And that’s just based on the technology we know about now. The story of the 21st century is a story of a job automation apocalypse.

    To pick the most obvious example, there are more than 3.5 million truck drivers in the U.S. today, a record for the profession, according to the U.S. Census Bureau. It’s the most popular job in 29 states, more necessary during this pandemic than ever. But what’s waiting for them on the other side of COVID-19? A fleet of self-driving trucks, already in trials. Trucks with a (thus far) spotless safety record, trucks that never need to be paid or take a break. How long is it going to take America’s 711,000 trucking employers to do the cost-benefit analysis on that one?

    Let’s be generous and say it’ll take a decade or two for those 3.5 million jobs to be lost. What then? Maybe disgruntled former drivers will try to sabotage these trucks, just as the Luddites once smashed looms. They couldn’t arrest the march of technology. Neither will the drivers.

    Politically speaking, UBI is low-hanging fruit. According to a March 2020 survey of 2,200 people, there are clear majorities in favor of basic income on both sides of the aisle. Which makes a lot of sense. Republicans like it because it removes the need for a vast government bureaucracy. It’s a flat and simple system: Cut everyone the same check, and you don’t need to hire an army of busybodies to do means-testing or administer an array of complex tax credits. Democrats like it because it removes the stigma from the whole concept of welfare: If everyone gets the same, there’s no need to demonize one group or another.

    And nearly all of us — well, those of us in the 99 percent — have had times in our lives when even the fear of money insecurity could give us sleepless nights and diminished days.

    “It’s really the ultimate marriage of left wing and right wing thinking,” says Rutger Bregman, Dutch historian and author of the popular pro-UBI book Utopia For Realists. “It’s about individual freedom. In Silicon Valley, they call it ‘fuck you money,’ right? The idea that you need a certain amount of money to quit what you're doing right now. A basic income is 'fuck you money' for everyone. It's venture capital for the people.

    "Just imagine a society where everyone has that. It's very easy to see how this could lead to an explosion of innovation and creativity.”

    UBI isn’t just a nice-to-have — it’s the only way capitalism is going to function at all in a world of automation. “Free cash greases the wheels of the whole economy,” notes Bregman. “People buy more, and that boosts employment and incomes.” Does it require higher taxes? Yes, and taxes were raised on the rich prior to the economic booms of the 1950s and the 1990s — decades when U.S. GDP grew by about a third and a quarter respectively. What the rich give in taxes, they too reap rewards from in the long run. It’s not just the right thing for them to do, it’s the smart thing.

    I hope the rich folk of the 22nd century understand that. I think you will.

    Of course, we should never underestimate humanity’s most selfish tendencies. We often seem to need to prop up a bad system just because it’s the one we’ve always known. I’ve written about the English upper-class reactionaries who scuppered an 18th century attempt to provide a form of basic income, 40 years after the system was instituted. Maybe you are looking back on a mid-21st century golden age of basic income, before the notion that poor people have to be kept hungry and fearful in order to be productive reared its ugly head once again in the 2080s or so.

    But I doubt it. Already, the data is giving the lie to puritanical notions of what would happen in a world of UBI. Take the old canard that everyone would just waste their monthly checks on drugs and booze. In 2014, a World Bank study of studies looked at 19 cases of UBI-like cash transfers to the poor. Sales of alcohol or tobacco did not see a rise; if anything, there was a minor decline. It is the stress of poverty that leads to drugging and drinking, not the other way around.

    Because when we’re flush, it turns out, we tend to be aspirational, not escapist. Our brightest days feel like they’re ahead of us. We tend to invest in our best potential futures. And that investment, more often than not, benefits everyone.

    What does the world look like when we all have enough cash to put food on the table while pursuing our dream careers?

    This is a hard question to answer in 2020, in part because there is very little in the way of popular storytelling that attempts to answer it. Sure, we talk about “the Star Trek future” with the glancing understanding that Star Trek, set in the 23rd century, proposes a utopian Earth where everything you could possibly want can be replicated. As any Trekkie knows, we’re told these magical replicators have been made available to all: not just Universal Basic Income, but Universal Basic Replication.

    “In Trek’s universe, most if not all of the real-world conditions that drive economic behaviors essentially disappear,” writes economist Manu Saadia in the 2016 book Treknomics. “Currency has become obsolete as a medium of exchange. Labor cannot be distinguished from leisure. Universal abundance of almost all goods has made the pursuit of wealth irrelevant … but what really distinguishes the United Federation of Planets is that these replicators are free and available to all as public goods.” [Emphasis his.]

    Still, Trek’s shows and movies rarely reveal what Earth looks like as a result. The franchise dodges the whole question by sending us into space with magic technology. Its main suggestions for what people want to do in this utopian economy: Fly starships, seek out new life, use scientifically implausible teleport machines, and drink endless cups of tea, Earl Grey, hot. (The recent Picard series gave the retired captain a vineyard, but no details on how its business functioned.)

    Sadly, as we established in a previous letter, human travel beyond the solar system is unlikely in the next few centuries, if it all. We’ve also established that an asteroid mining boom, creating unprecedented wealth, is likely in the mid- to long-term future. That will be the career choice of roughneck entrepreneurs, the pioneer types, not the majority.

    Living inside the moon (or inside asteroids) is likely to be a thing, though mostly short-term for tourists. Some may stay, if they’re OK with spending their lives under fluorescent lights, breathing recycled air, surrounded by different kinds of dust and stone. As a NASA scientist once told me, explaining the kind of drudgery space colonists are likely to endure: “Hey, some people like Cleveland.”

    Nothing wrong with Cleveland (sorry, Cleveland!), and there’s nothing wrong with the Final Frontier as long as you don’t mind it being quite a bit grittier than it was in Star Trek.

    Luxurious Communists?

    And for those of us who prefer to live on a planet which will still, even in the midst of the darkest climate change scenario, be the most beautiful and abundant place we’ve ever found in the cosmos? What will life look like at home? What will be the dominant philosophy of a UBI society? Well, that’s where “fully automated luxury communism” enters the story.

    This odd name was coined by UK writer and activist Aaron Bastani, who confesses it was partly tongue-in-cheek. He made a video explaining it in 2014 and wrote a book, Fully Automated Luxury Communism, in 2019. In between, via blogs and articles and Tumblr, it traveled the world — so much that I first heard it at a Silicon Valley party in 2017, quoted approvingly as a likely summary of the future.

    What does it mean? Let’s break it down: Fully automated, as in a society where robots and AI are doing all of the work. (Sound familiar?) Luxury, as in the post-scarcity world of abundance created by this automated system: Pretty much anything you need will either be delivered digitally, fabricated at home in a cheap-ass 3D printer (not quite a Star Trek replicator yet, but close), or dropped at your door by drones at negligible cost. And communism, as in the actual original concept that Karl Marx’s acolytes failed to deliver — a more or less equal society where the people own the means of production. Just a way more consumerist version.

    Bastani’s vision isn’t always the most fleshed out. “If we embraced work-saving technologies rather than feared them, and organized our society around their potential, it could mean being able to live a good life with a ten-hour working week,” he writes. Which is great, so far as it goes, but then he adds as a rhetorical flourish: “Cartier for everyone, MontBlanc for the masses and Chloe for all!” These are luxury brands whose very existence relies on being unaffordable to most. If they fell to a price all could afford on a $2,000-a-month UBI, or if we could all make them at home in a replicator, would they even have a customer base?

    Such visions may be helping to spur a high-tech revival of the “communist” label, one that was also celebrated in Cory Doctorow’s novel of a post-scarcity future, Walkaway (2017). Millennials are less familiar with its negative connotations, having missed the Cold War, and the same will be true of each successive generation. An annual survey commissioned by the not-exactly-neutral Victims of Communism Foundation, but conducted independently, found Communism's favorability numbers on the rise among millennials — from 28 percent in 2018 to 36 percent in 2019.

    But if we are headed for a new kind of high-tech UBI-driven communism, it’s one replete with irony. “A basic income would be the crowning achievement of capitalism,” says Bregman, “because it would give everyone a bit of capital to invest in their own lives.” Marx’s vision of a worker’s utopia would have been delivered not by a dictatorship of the proletariat, but by the very system Marx hated.

    But if this is a new kind of communism, it’s one replete with irony. “A basic income would be the crowning achievement of capitalism,” says Bregman, “because it would give everyone a bit of capital to invest in their own lives.” Marx’s vision of a worker’s utopia would have been delivered not by a dictatorship of the proletariat, but by the very system Marx hated.

    Here is a more succinct summary of our fully-automated future: perpetual school. “The ultimate goal is to make life as close to the college experience as possible,” notes Greg Ferenstein, who is writing a book on Silicon Valley startup founders and their politics, “a life dedicated to research, exploration, and creativity, while automation ensures that everyone has enough food and leisure time to pursue their unique contribution to the world.”

    That’s what has happened to Scott Santens, the first person in the world to crowdfund a basic income. (He donates everything he gets over $1,000 per month to other basic income advocates.) He hasn’t stopped working — he was a freelance writer before and a freelance writer after — but he is able to pick and choose his projects now. He sees himself in a lifelong process of UBI advocacy, and puts more of his work out there for free on a Creative Commons license. Secure and free of money panic, he’s more willing to give.

    “I think you’ll see a shift towards a gift economy,” Santens said when I asked how a UBI-driven society might play out in the future. “We can expect to see a lot more volunteering, a lot more unpaid work. It’s more couchsurfing.com, less Airbnb, you know? Just give things to each other.”

    Santens hadn’t been to Burning Man, which is currently the 21st century’s best known example of a gift economy. But as a veteran of the oft-misunderstood desert event, where coffee and ice are the only two things on sale, I could confirm: Once you experience the gift economy, it’s hard to forget. Tell people to be radically self-reliant in the desert for a week, and they go overboard with generosity to strangers. Gifts take endless forms, such as (to pick a random example from 14 years ago) the camp that brought tanks of liquid nitrogen and freezers full of cream in order to dispense ice cream for all.

    This is true wealth, in a world where everyone has enough: Being creatively generous, going out of your way to earn as much delight and respect from as many of your neighbors as possible. This, not a Scrooge McDuck swimming pool of money, is what philanthropist billionaires from Andrew Carnegie to Bill Gates have had the luxury to seek all along. This also perhaps explains some of the stranger showboating behavior of billionaires who go to Burning Man, such as Elon Musk. And this, given the solid footing of UBI, will be a game the other 99 percent are able to play too.

    The revenge of bullshit jobs

    Is this 22nd century utopia inevitable? Of course not. We’re still human, and humans will find any way to ruin a good thing. Bregman says he’s grown disillusioned since writing Utopia for Realists, partly thanks to the number of people he met on a book tour who were convinced, regardless of the data showing UBI experiments work, that it will never work.

    The trouble with convictions like that: They create our reality. If we’re not open to new information, if we don’t accept the idea that UBI could work, we will fail to update our concept of what “work” really means. In other words, we’ll continue to let corporations make a lot of (digital) paper-pushing busywork for us.

    “We shouldn't underestimate capitalism's extraordinary ability to come up with new bullshit jobs,” Bregman says. Bullshit jobs was a term coined by the London School of Economics’ David Graeber, who wrote a 2013 paper on the topic and received a flood of confessions from people who felt their work was pointless. Two years later, a survey of 849 UK adults found that 37 percent said their work was “not a meaningful contribution to the world.”

    What happens if that number just keeps rising, along with the fear of unemployment that herds us into bullshit jobs just to keep food on the table? What if 75 percent or even 90 percent of us are essentially on corporate workfare? Will we all be sitting in cubicles watching algorithms making decisions on our screens, hoping desperately to catch an error in the code, focusing a lifetime’s worth of mental energy on making the boss think we’re useful?

    “Maybe at some point in the dystopian future we’re all pretending to be working,” Bregman says, “but really we’re drowning.”

    That’s what makes the shift to UBI so essential — and why the shift in our attitude needs to come with. Bregman, for his part, has written his follow-up Humankind to try to convince us, with yet another mountain of data, that humans are intrinsically good and kind, and therefore should be trusted with free money. But perhaps you will look back and see that our greatest teacher was the coronavirus pandemic itself. Perhaps it will not only lead to a basic income for all; perhaps it will remain in our memories as a reminder that we are, in the final analysis, a society that genuinely cares for everyone. And will go to extraordinary lengths to prove it.

    Yours in hopeful quarantine,

    2020

    Be kinder than necessary because everyone you meet is fighting some kind of battle.

  • #2
    Re: UBI: The Future of Free Money

    In the next 12 years, 1 out of 3 American workers are at risk of losing their jobs to new technologies—and unlike with previous waves of automation, this time new jobs will not appear quickly enough in large enough numbers to make up for it. To avoid an unprecedented crisis, we’re going to have to find a new solution, unlike anything we’ve done before. It all begins with the Freedom Dividend, a universal basic income for all American adults, no strings attached – a foundation on which a stable, prosperous, and just society can be built.

    https://www.yang2020.com/what-is-freedom-dividend-faq/

    Comment


    • #3
      Re: UBI: The Future of Free Money

      WE been here before, 1977 :-

      Comment


      • #4
        Re: UBI: The Future of Free Money

        Originally posted by Techdread View Post
        In the next 12 years, 1 out of 3 American workers are at risk of losing their jobs to new technologies—and unlike with previous waves of automation, this time new jobs will not appear quickly enough in large enough numbers to make up for it. To avoid an unprecedented crisis, we’re going to have to find a new solution, unlike anything we’ve done before. It all begins with the Freedom Dividend, a universal basic income for all American adults, no strings attached – a foundation on which a stable, prosperous, and just society can be built.

        https://www.yang2020.com/what-is-freedom-dividend-faq/
        The Dutch created very generous welfare system after discovery of their large natural gas reserves.
        The result was that unemployement was chronically high with a segment of society preferring to be on welfare.

        I'd expect similar results with UBI. Kind of ironic when immigration is proposed to fill shortage of labour due to demographics.
        engineer with little (or even no) economic insight

        Comment


        • #5
          Re: UBI: The Future of Free Money

          Originally posted by FrankL View Post
          The Dutch created very generous welfare system after discovery of their large natural gas reserves.
          The result was that unemployement was chronically high with a segment of society preferring to be on welfare.

          I'd expect similar results with UBI. Kind of ironic when immigration is proposed to fill shortage of labour due to demographics.
          I've heard some stories about this happening with the $600 weekly federal unemployment checks during the lockdown. Some employers are reporting that their employees don't want to return to work because it would be like taking a pay cut. I don't know how widespread this is. Is it a few isolated cases or a lot?

          Whether or not people go back to work if they have UBI would be dependent on their temperament, life situation and how much they get. $500 a month? $1000 a month? $2000 a month? And how much will that buy?

          Consequences if we had UBI and a lot of people refused to go back to work:

          Employers who need employees would have to offer higher wages. People doing low-end jobs deserve a living wage, but it will lead to price inflation which will hurt those same people.

          Employers who can will speed up their transition to robotics and AI wherever possible, permanently eliminating as many jobs as possible, thus making UBI even more necessary.

          There will be a lot of hyper-moral opposition to this experiment by notably immoral politicians.
          A lot of hypocritical talk about fostering laziness and moral hazard.
          A lot of justifiable fear of creating money out of thin air.
          All concerns that never stop the the creation of money to bail out the corporate sector, bankers, hedge funds, repo...

          Personally I am opposed to the Fed printing money at taxpayer expense to bail out anyone. That's what we have bankruptcy laws for. But if they are going to print money from thin air and I'm going to suffer the consequences of stagflation and inflation anyway, then I want some of that money before the inevitable crash and burn.

          And while I'm at it, if they are going to print money willy-nilly, then why should we pay federal taxes at all anymore? The Treasury should just print dollars for operating expenses like the Fed prints dollars for the corporate sector. What could go wrong with that?!

          UBI worst case scenario: Many people would become permanently unemployed, vegetative Joe sixpacks. Not that much different than multigenerational welfare families now. Envisioning crowd scenes a la Soylent Green.

          UBI best case scenario #1: Federal welfare programs are expensive and inefficient. As much as 75% of tax dollars collected go to administrative costs. By replacing these programs with UBI for people to spend as they see fit, the federal government would shrink and might actually save money.

          UBI best case scenario #2: Many people, bored and unfulfilled by boring and unfulfilling jobs, would use their subsidized leisure time in creative and innovative ways. Perhaps we would see new inventions and a flourishing in the Arts? This could be a real win for society but it might take awhile for people to adjust to life without time cards. The public school model was purposefully designed to create assemply line workers; to stifle creativity; to make people turn their minds on-and-off in response to bells. Few people survive 12 years of such conditioning with their creativity and spirit intact.

          But I expect the money to run out and a spectacular crash and burn before any of this actually happens. There will always be enough taxpayer money for corporate welfare and the military. But not only is there not enough money for the actual taxpayer, shame on us for asking.

          Be kinder than necessary because everyone you meet is fighting some kind of battle.

          Comment


          • #6
            Re: UBI: The Future of Free Money

            Originally posted by Techdread View Post
            In the next 12 years, 1 out of 3 American workers are at risk of losing their jobs to new technologies—and unlike with previous waves of automation, this time new jobs will not appear quickly enough in large enough numbers to make up for it. To avoid an unprecedented crisis, we’re going to have to find a new solution, unlike anything we’ve done before. It all begins with the Freedom Dividend, a universal basic income for all American adults, no strings attached – a foundation on which a stable, prosperous, and just society can be built.

            https://www.yang2020.com/what-is-freedom-dividend-faq/
            We already have a problem. This situation falls disproportionately upon low skilled workers. We just don't have the number of jobs of this type left in the economy. The loss of factories and other basic industry jobs (timber, mining, agriculture and so forth) coupled with automation is wiping these out. And there's not much to replace them.

            There also seems a stigma attached to many of the remaining unskilled/low skill jobs now - harvesting crops and the now infamous meat packing plants are filled with immigrant labour, some of it casual or seasonal. Near where I live two beef packing plants are shut down due to the virus. These two account for 40% of Canada's beef processing capacity. Most of the employees are Filipino.

            But if we think we have a problem, just imagine the issues China and India are going to have with this. They have dealt with this so far two ways; maintaining labor intensity internally by keeping wages low and, exporting lots of surplus labour to developing nations.
            Last edited by GRG55; April 30, 2020, 04:26 PM.

            Comment


            • #7
              Re: UBI: The Future of Free Money

              i don't know what the cost of living is where you people live, but i can tell you that $2000/month [$4000/couple] is not going to put you in the lap of luxury in my neck of the woods. you could live on it without strain, though, no doubt.

              i guess people who just want to loaf might want to relocate to cheaper parts of the country, providing an influx of cash flow to those locales.

              meanwhile non-college educated people can make very good livings if they learn a trade: plumbing, electrical work, hvac and so on. for them the ubi will just be a supplement, topping up their real earnings.

              health aides will be needed in large numbers over the next 20-30 years. these jobs are low paying and would probably have to increase wages to be attractive even as a supplement to the ubi.

              Comment


              • #8
                Re: UBI: The Future of Free Money

                Originally posted by jk View Post
                i don't know what the cost of living is where you people live, but i can tell you that $2000/month [$4000/couple] is not going to put you in the lap of luxury in my neck of the woods. you could live on it without strain, though, no doubt.

                i guess people who just want to loaf might want to relocate to cheaper parts of the country, providing an influx of cash flow to those locales.

                meanwhile non-college educated people can make very good livings if they learn a trade: plumbing, electrical work, hvac and so on. for them the ubi will just be a supplement, topping up their real earnings.

                health aides will be needed in large numbers over the next 20-30 years. these jobs are low paying and would probably have to increase wages to be attractive even as a supplement to the ubi.
                Wouldn't employers simply reduce salaries in response, as the cost of living effectively is partly subsidized by the state with UBI ?
                engineer with little (or even no) economic insight

                Comment


                • #9
                  Re: UBI: The Future of Free Money

                  That's how it works in the UK

                  Comment


                  • #10
                    Re: UBI: The Future of Free Money

                    Originally posted by FrankL View Post
                    Wouldn't employers simply reduce salaries in response, as the cost of living effectively is partly subsidized by the state with UBI ?
                    set the minimum wage at $15. also nationalize healthcare to take that off the backs of employers.

                    Comment


                    • #11
                      Re: UBI: The Future of Free Money

                      Agreed........I always viewed our NHS as a sort of "Buyers Club".......very good inexpensive healthcare........many Americans agree as they come here & drop themselves into our hospitals

                      Comment


                      • #12
                        Re: UBI: The Future of Free Money

                        A recent Finnish study on UBI:

                        Universal basic income seems to improve employment and well-being


                        By Donna Lu
                        Finland’s universal basic income study has revealed that the programme doesn’t seem to discourage people from working

                        The world’s most robust study of universal basic income has concluded that it boosts recipients’ mental and financial well-being, as well as modestly improving employment.

                        Finland ran a two-year universal basic income study in 2017 and 2018, during which the government gave 2000 unemployed people aged between 25 and 58 monthly payments with no strings attached.

                        The payments of €560 per month weren’t means tested and were unconditional, so they weren’t reduced if an individual got a job or later had a pay rise. The study was nationwide and selected recipients weren’t able to opt out, because the test was written into legislation.

                        Minna Ylikännö at the Social Insurance Institution of Finland announced the findings in Helsinki today via livestream.
                        The study compared the employment and well-being of basic income recipients against a control group of 173,000 people who were on unemployment benefits.

                        Between November 2017 and October 2018, people on basic income worked an average of 78 days, which was six days more than those on unemployment benefits.

                        There was a greater increase in employment for people in families with children, as well as those whose first language wasn’t Finnish or Swedish – but the researchers aren’t yet sure why.

                        When surveyed, people who received universal basic income instead of regular unemployment benefits reported better financial well-being, mental health and cognitive functioning, as well as higher levels of confidence in the future.

                        Read more: How the US almost introduced a universal basic income – 50 years ago

                        When asked whether basic income could help people dealing with situations such as the economic fallout of the covid-19 pandemic, Ylikännö said that it could help alleviate stress at an uncertain time.

                        “I think it would bring people security in very insecure situations when they don’t know whether they’re going to have an income,” she said.

                        The findings suggest that basic income doesn’t seem to provide a disincentive for people to work.

                        However, the effect of basic income was complicated by legislation known as the “activation model”, which the Finnish government introduced at the beginning of 2018. It made the conditions for accessing unemployment benefits stricter.

                        The timing made it difficult to separate the effects of the basic income experiment from the policy change, said Ylikännö.

                        “We can only say that the employment effect that we observed was as a joint result of the experiment and activation model,” she said.
                        Preliminary findings, released in February last year, had previously found no difference between the two groups for the number of days worked in 2017.

                        “Money matters, but alone it’s not sufficient to significantly promote either labour supply or demand,” said Ylikännö.

                        Be kinder than necessary because everyone you meet is fighting some kind of battle.

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