The Palgrave International Handbook of Basic Income (eBook)

Foreword 7
Preface 10
Acknowledgements 12
Praise for The Palgrave International Handbook of Basic Income 14
Contents 20
Notes on Contributors 23
Abbreviations 35
List of Figures 40
List of Tables 42
Part I Introductory Chapters 44
1 Introduction 45
The Purpose of This Handbook 45
Some of the Characteristics of This Handbook 46
Handbook of Basic Income 46
International Handbook of Basic Income 48
Repetitions, and the Order of Authors’ Names 48
The Structure of the Book 49
Part I: Introductory Chapters 49
Part II: Some of the Likely Effects of Basic Income 49
Part III: The Feasibility and Implementation of Basic Income 51
Part IV: Pilot Projects and Other Experiments 52
Part V: Political and Ethical Perspectives 55
Part VI: Concluding Chapter 55
References 56
2 The Definition and Characteristics of Basic Income 57
Introduction 57
Different Ways of Defining 58
Definition by Usage 58
Definition by Characteristics 60
Definition by a Recognised Authority 61
Defining ‘Basic Income’ 62
The Amount of the Payment 65
‘Universal’, ‘Unconditional’, ‘Citizen’s’, ‘Guarantee’ 66
‘Universal’ 66
‘Unconditional’ 66
‘Citizen’s’ 67
‘Guarantee’ 67
Policy Implications 68
Conclusion 70
References 70
3 Three Waves of Basic Income Support 72
Introduction 72
Before the First Wave 73
The First Wave 74
The Second Wave 76
Between the Waves 78
The Third Wave Takes off 79
How Far Can the Third Wave Go? 82
References 83
Part II Some of the Likely Effects of Basic Income 86
4 Employment Market Effects of Basic Income 87
Introduction 87
Diverse Employment Market Pressures Today 88
The Destruction and Creation of Jobs 88
Job Quality 91
Online Platforms 92
Micro-Control of Workers 93
Pressures Towards Enhanced Employment Rights 94
A New Employment Paradigm? 94
Would a Basic Income Be a Useful Response? 96
The Effects of Basic Income on the Employment Market 97
Would Wages Rise or Fall? 97
Towards a More Positive Employment Experience and Towards a Broadening of the Definition of ‘Work’
A Focus on Motivation 99
Evidence from Experiments 99
(a) Psychological Research Providing Indirect Evidence 99
(b) Direct Experimental Evidence on Labour Impact 101
A Theory-Based Approach to Motivation 104
Conclusion 108
References 108
5 Social Effects of Basic Income 113
Introduction 113
Citizen Level: Greater Social Cohesion and Non-stigmatising Effects 115
Case Study: People with Disabilities at the Level of the Individual 117
Community Level: Social Cohesion, Solidarity and Community Spirit 119
Case Study: People with Disabilities at the Level of the Community 120
Institutional and Societal Levels: Toward an Egalitarian Society 122
Case Study: People with Disabilities at the Level of Society 124
Conclusion: Basic Income, the Catalyst for Social Effects in Responding to Inequality 125
References 128
6 Some Effects of Basic Income on Economic Variables 131
Introduction 131
Modelling Different Funding Mechanisms 133
Basic Income Financed by Flat Income Tax* 134
Household Income* 135
Required Tax* 135
Basic Income Financed by Sources External to Labour Income 136
The Individual Utility Maximisation Problem* 136
Potential Effects of the Different Financing Mechanisms 137
Consumption and Unpaid Time (Individual Level)* 137
Consumption and GDP (Aggregate Level) 139
Income Distribution and Poverty Alleviation 140
Final Remarks 142
Mathematical Appendix 143
Basic Income Financed by Flat Income Tax 143
Taxation 143
Household Income 144
Required Tax 145
The Individual Utility Maximisation Problem 146
Discussing Potential Effects of Each Mechanism 147
References 149
7 Ecological Effects of Basic Income 151
Introduction 151
Basic Income and Ecology 152
Green Basic Income and Economic Growth 153
A Carbon Dividend/Green Growth 153
Degrowth 154
Basic Income and Consumption 156
Basic Income and the Labour Market 158
The Impact of Different Forms of Funding for Basic Income 160
Income Tax 160
Pollution and Resource Taxes 161
Value Added Tax (VAT) 162
Complementary Conditions for Green Effects Through Basic Income 163
Education 163
Working Time Reduction 163
A Maximum Income 164
The Impact of Alternative Policies 165
Strategies for the Implementation of Green Oriented Basic Income 166
References 168
8 The Gender Effects of a Basic Income 173
Introduction 173
Feminist Political Theory and the Normative Argument for Basic Income 174
Gender Critiques of the Welfare State and Gender-Egalitarian Precedents for a Basic Income 176
Grass-Roots Movements for a Basic Income 178
The Welfare Claimants Movement in the UK 178
The Welfare Claimants Movement in the US 182
Gender Effects in Cash Grant Experiments 185
Conclusion: Gender Effects of a Basic Income, and Consideration of the Structure of a Basic Income That Supports Gender Equality 188
References 189
Part III The Feasibility and Implementation of Basic Income 194
9 Feasibility and Implementation 195
Introduction 195
Financial Feasibility 196
Psychological Feasibility 198
Administrative Feasibility 201
Behavioural Feasibility 201
Political Feasibility 202
The Policy Process 203
Relationships Between Feasibilities 206
Implementation Options 207
Conclusions 209
References 210
10 Alternative Funding Methods 212
Editor’s Introduction 212
The People’s Stake: Basic Income and Citizens’ Wealth Funds 214
Funding Basic Income by Money Creation 217
The Impact of Technology on Basic Income and Its Funding (Crocker 2014, 2015) 217
The Nature of Income 218
The Nature of Money 219
Funding a UBI by Digital Royalties 222
The Digital Economy 222
Data, Meta-Data and Big Data 223
Data as Ambient Intellectual Property and Digital Royalties 224
References 226
11 Analysis of the Financial Effects of Basic Income 228
Introduction 228
Microsimulation 230
By Howard Reed 230
A Second Illustrative Basic Income Scheme 235
By Malcolm Torry 235
Net Cost, and Household Gains and Losses 237
Changes to Means-Tested Benefits Claims Brought About by the Scheme 238
The Poverty, Inequality and Redistributional Effects of the Basic Income Scheme 240
Discussion 241
Scenario Modelling of Basic Income in an Existing Situation 242
By Gareth Morgan 242
Conclusions 246
References 247
12 Alternatives to Basic Income 249
Introduction 249
Negative Income Tax 250
By Michael Story 250
Universal Basic Services 255
By Andrew Percy 255
The Job Guarantee 258
By Maciej Szlinder 258
The US Earned-Income Tax Credit 261
By Benjamin Leff 261
What Is the EITC and How Does It Differ from a UBI? 261
Possible Reforms of the EITC 263
Conclusion 265
References 265
13 Framing Basic Income: Comparing Media Framing of Basic Income in Canada, Finland, and Spain 268
Introduction 268
The Role of Ideas and Framing in Politics 269
Understanding Ideas in Politics 269
Framing Concepts and Literature 271
Who Can Frame? And How? 272
Successful, Hegemonic and Challenging Frames 272
Framing and Public Opinion 273
Methods 275
Case Study Selection: Basic Income in the Canadian, Finnish and Spanish Media 276
Understanding Basic Income Framing 277
Framing in the Basic Income Literature 277
Descriptive Results 278
Making the Case for Basic Income 279
Discrediting Basic Income: Counter-Arguments in the Media 281
Missing Frames in the Media 281
Discussion and Conclusion 282
References 284
14 The Philosophy and Political Economy of Basic Income Revisited 287
Introduction 287
The Basic Income Debate in Modernity 290
The Anatomy of a Global Debate 292
Institutional Political Economy (IPE) as Interpretive Method 295
i. Comparative-Industrial IPE 296
ii. Societal IPE 296
iii. Human IPE 297
iv. Financial IPE 301
Liberalisation, Poverty and Basic Income in the Global South 304
Globalisation of Basic Income: Developed Countries After the Crisis 305
i. Grassroots Activism and the Europe-Wide Project 307
ii. Consolidation of Capitalism 308
iii. Aid and Informal Communities 308
iv. Experimentation Within Public Bureaucracies 309
Devil’s Deals and World Time in Development 310
i. Neo-liberalisation 310
ii. Economic Populism 311
iii. Informal Marketisation and Illiberalisation in Developing Countries 313
The Case of India 313
Basic Income and Devil’s Deals in Developed Welfare States 319
Basic Income Complementarities Under Financialised Global Development 321
Conclusion 324
References 325
Part IV Pilot Projects and Other Experiments 334
15 The Negative Income Tax Experiments of the 1970s 335
Introduction 335
Labour Market Effects of the NIT Experiments of the 1970s 336
Non-labour-Market Effects of the NIT Experiments 344
An Overall Assessment? 344
Public Reaction to the Release of NIT Experimental Findings in the 1970s 345
Later Release of Experimental Findings 348
References 349
16 Citizen’s Basic Income in Brazil: From Bolsa Família to Pilot Experiments, with an Appendix: From Local to National: Mexico City and Basic Income, by Pablo Yanes 351
Introduction 351
The Context 351
The Bolsa Família as the First Step Towards a Citizenship Basic Income in Brazil 353
Pilot Experiments of Citizen’s Basic Income in Some Brazilian Municipalities 357
Conclusion 365
Appendix: From Local to National—Mexico City and Basic Income 366
References 369
17 Basic Income by Default: Lessons from Iran’s ‘Cash Subsidy’ Programme 371
Introduction 371
Genesis: Price Subsidy Reform and the Triumph of a De Facto Basic Income by Default 372
Implementation: A Process Derailed 374
The Impact of the Cash Transfer Scheme 378
Income Effect and Labour Supply Issues 379
The Inflationary Impact 381
The Impact on Income Distribution and Poverty 383
Long Term Trends and Future Prospects 383
Concluding Remarks: Potential Lessons of the Iranian Experience 385
References 386
18 The Namibian Basic Income Grant Pilot 388
Introduction 388
The Context of the Namibian Basic Income Pilot 389
The Basic Income Pilot and Its Impact 391
Contested Critiques 393
Basic Income, Politics and Patronage 398
References 401
19 Pilots, Evidence and Politics: The Basic Income Debate in India 404
Introduction 404
The Pilot Study: Design and Implementation 404
The Pilot Study: Main Findings 406
Pilot Study Follow-Up: Legacy Study Findings 409
The Basic Income Debate in Indian Discussion 411
New Direction and New Hope for Basic Income Movement 413
End Note 415
References 417
20 The Finnish Basic Income Experiment: A Primer 419
Introduction: The Age of Basic Income Experiments? 419
Why Finland Decided to Experiment 421
Finland Has Debated Basic Income Since the 1970s 421
Finnish Political Parties Are a Staple in the Basic Income Debate 422
Finland Has Embraced a Culture of Policy Experimentation 424
Experimenting with Basic Income in Finland: Process, Design, Implementation 425
The Decision Process 425
Design Parameters 426
Implementation and Evaluation 431
Lessons from the Finnish Basic Income Experiment: It’s Politics, Stupid! 432
References 434
21 A Variety of Experiments 437
Introduction 437
Local Experiments in the Netherlands 438
By Loek Groot and Timo Verlaat 438
The Institutional Background 439
Specifics of the Dutch Experiments 440
The Rationale Behind the Experiments 441
Basic Income in the European Periphery 443
By Enkeleida Tahiraj 443
Serbia’s Basic Income Proposal (UNDP 2018) 444
A Comparative View of the Serbian Proposal 445
Conclusions 447
Korean Experiments 448
By Gunmin Yi 448
Seongnam Youth Dividend 448
Basic Income-Related Policies Carried Out Within Small Private and Voluntary Organisations 450
Diverse Basic Income Lottery Projects 450
Barcelona: B-Mincome 451
By Julen Bollain 451
Why Scotland? 455
By Annie Miller 455
The Swiss Referendum About Basic Income 458
By Enno Schmidt 458
References 461
Part V Political and Ethical Perspectives 466
22 Libertarian Perspectives on Basic Income 467
Introduction 467
Minimal State Libertarianism 470
The Separateness of Persons 471
Satisfying the Lockean Proviso 472
Rectification 474
Classical Liberalism 475
Contractarian Theories 476
Consequentialist Theories 477
Left-Libertarianism 480
The Land Question: Henry George 480
Left-Libertarianism: Hillel Steiner 481
Varieties of Left-Libertarianism 482
Conclusion 483
References 484
23 Socialist Arguments for Basic Income 487
Introduction 487
How Society Works 488
Republican Freedom 489
Property 490
Socialism, and Control of the Means of Production 492
Basic Income and the Transformation of Money 493
Democracy-Enhancing Bargaining Power 494
Flexible Paid and Unpaid Work 496
A Socialist Basic Income Scheme 497
Control Over (Re)Production 499
Basic Income as an Anti-capitalist Project 500
References 501
24 Neither Left Nor Right 505
Introduction 505
The Conceptual Ambiguity of Basic Income 507
Defining Basic Income in Terms of Policy Design Features 507
Defining Basic Income in Terms of Principles and Goals 508
Productive and Efficiency-Related Motivations of the Right 509
Protective and Equity-Related Motivations of the Left 509
Left- and Right-Wing Basic Income Schemes 510
Empirical Assessment: Support for and Opposition to Basic Income 511
Political Actors: Playing ‘Hot Potato’ 511
Voters’ Attitudes Towards Basic Income 515
Discussion and Conclusion 517
References 519
25 Trade Unions and Basic Income 521
Introduction 521
History of Basic Income and the Labour Movement 522
Explaining Trade Union Attitudes to Basic Income 526
Basic Income and Workers’ Bargaining Power 528
A Basic Income Scheme That Trade Unions Could Support 529
Basic Income Under Full Employment: Benefits for Workers and Unions 531
Concluding Comments 532
References 532
26 The Ethics of Basic Income 534
Is Basic Income Ethically Justified? Wellbeing, Poverty Prevention, and the ‘so What?’ Objection 534
Two Challenges: What About Target Efficiency and Fairness? 537
Social Justice and Equal Opportunity: Basic Income as Pre-distribution 539
Interacting as Equals: Basic Income, Non-domination, and Exit-Based Empowerment 543
References 547
Part VI Concluding Chapter 550
27 Tentative Conclusions 551
Introduction 551
The Same Questions Will Need to Be Answered Over and Over Again 552
Is Basic Income a Good Idea? 554
Is Basic Income Feasible? 554
How Would We Implement It? 557
The Political, Social and Policy Context Will to a Large Extent Determine the Feasibility of Basic Income and the Likely Effects of Its Implementation 558
There Is Much More to Be Done 558
Institutions 559
The Verdict 561
Index 562