Universal Basic Income

From Claygate
The Wells School of Philosophy

Roll Call

25th March 2024, Hare Lane, 1000-1200 hrs:

Tutors: Linda (L), Steve (S)

Pupils: Alexis (A), John (J), Patricia (P), Ray (R), Robin (ℜ), Viki (V),

Scribe: Gavin (G)

Apologies: Colin (C), David (D), Howard (H), Margie (M)


The homework set

We decided to explore what case can or cannot be made for a Universal basic Income at our next meeting. In selecting this topic we accepted that whilst it was less directly philosophically rooted than, say, our recent Nietzsche deliberations, it still incorporates some important philosophical constructs. For example:

  • the balance between personal freedom and seeking the common good,
  • the nature/definition of 'work' and its benefits,
  • and the whole idea of 'universalizability', as conceived by Kant (on moral laws/imperatives) and Rousseau (the General Will) in particular.

The basic idea of UBI has deep roots in philosophical and social theory:

  • Julius Caesar willed money to all Roman citizens after his death.
  • Thomas More wrote about the need for universal benefits in Utopia.
  • Thomas Paine was an advocate of universality of benefits, and
  • Bertrand Russell was enthusiastic in 'Roads to Freedom'.
  • Willian Beveridge prompted debate on it in developing the Beveridge Plan, which led to the establishment of the 'Citizens Basic Income Trust'

Latter advocates included, somewhat surprisingly, Milton Friedman, Richard Nixon, along with such unlikely bedfellows as Elon Musk and Jeremy Corbyn!

The case for UBI is undoubtedly increased with the increasing deployment of AI, replacing workers, and potentially liberating them to undertake socially beneficial and fulfilling work, which previously has come under the heading of unpaid volunteering and caring.

There have been many trials of UBI, across countries (especially the USA) with mixed results. I found Wikipedia a useful way into the topic and a rich source of information. In particular, it differentiates between UBI and negative income tax, along with the distinction between means-tested and universal benefits.

Following the success of adopting a 'formal' proposer/opposer format for the discussion of compulsory voting we agreed that:

  • Howard and Patricia would make the case for UBI, and
  • Viki and Raymond would be in opposition.

As I mentioned on Tuesday I'm going to a Gresham College (free) lecture on The Case for a Universal Basic Income next Wednesday at 6.00pm. Gresham College is in Holborn and easily reached from Waterloo via buses to Holborn. I'd be very happy to have people join me, but you will need to pre-book via the Gresham College website. Alternatively you can watch online, either on Wednesday or later.

Looking forward to seeing you for more lively debate on the 25th.


Last night I attended the lecture at Gresham College, given by Guy Standing, on The Case for Basic Income. It was excellent, and I encourage everyone to watch it online. It is now available on the Gresham College website at https://www.gresham.ac.uk/watch-now/case-basic-income?_gl=1*1c163m4*_up*MQ..*_gs*MQ..&gclid=Cj0KCQjw-e6-BhDmARIsAOxxlxV-6M-WbZf7CTXycDI4_my0

I was concerned that the lecture would be a dry recital of economic stuff. Fortunately, it turned out to be almost entirely about making the moral case for a basic income; the freedom and justice it potentially generates; how it enhances the democratic process by prompting engagement, co-operation and deliberation rather than confrontation.

Guy Standing is an excellent and inspiring lecturer; provocative and thought-provoking, whether you agree with him or not.

David and Margie have very kindly agreed to make the case for a basic income, together with Patricia. Viki and Raymond will provide formidable opposition.

Introduction(S)

  • UBI has turned to be a philosophically rich topic, embraced at times by such people as Jeremy Corbyn and Elon Musk.
  • The shrinking state that should arise from UBI appeals to the right and is therefore opposed by the left.
  • The furlough scheme during the pandemic was a variation on a basic income provided by the state.

The Case For(G&P)

  • We all benefit from the security provided by state support if things go badly for us. This security enables to take the necessary risks in life, e.g. by advancing our education.
  • Universal basic income (UBI) is a welfare proposal in which all citizens of a given population regularly receive a minimum income in the form of an unconditional payment, i.e., without a means test or the need to perform work.
  • In contrast, a guaranteed minimum income is paid only to those who do not already receive an income that is enough to live on. A UBI would be received independently of any other income.
  • Universal basic income does not make a distinction between "deserving" and "undeserving" individuals when making payments.
  • Basic income will be unrelated to the amount of work, paid or unpaid, that people put in. It is not a reward to unpaid carers or mothers for their labour.

Examples

  • No country has implemented a full UBI system, but two countries—Mongolia and Iran—have had a partial UBI in the past.
  • Many countries have a system of child benefit, which is essentially a basic income for guardians of children.
  • A pension is a basic income for retired persons.

The Basic Argument

  • We are living in an age in which more and more of the world’s income is going to owners of property and capital .
  • AI will significantly reduce the number of available jobs. A basic income could help alleviate this problem by allowing everyone to benefit from society's wealth.
  • A UBI system would eliminate many means-tested benefits, together with the expensive bureaucracy needed to administer those benefits, which would help fund the cost of UBI.
    • UBI would reduce means testing and behaviour testing, which induce or oblige people to act contrary to their best interests – for instance, putting them through useless training or job-search programmes when they could be doing something more worthwhile.
    • Every means-tested scheme suffers from low take-up rates, due to stigma, ignorance or fear.
  • A basic income is fair because it ensures that everyone has a sufficient financial basis to build on, and therefore less financial pressure .
    • This would allow people to find work which better suits their interests and strengths, and also to take entrepreneurial risks, if that is their inclination.
    • A basic income acts as a form of guarantee against default on a loan, enabling people to borrow at lower interest rates.
  • Some governments take a utilitarian approach which aims to promote the happiness of the majority (often summed up as ‘the greatest happiness of the greatest number’), but this runs the danger of allowing politicians to care too little about making the minority miserable.
    • whereas a Rawlsian approach says that justice is served only if a policy improves the position of the least advantaged.
  • Unattractive jobs would have to become more attractive , in order to get citizens are already receiving a basic income to do those jobs.

The Moral Argument

  • The UK and particularly America have seen a rising tide of ‘deaths of despair’, through suicides, overdoses of prescription and illegal drugs, alcohol abuse etc.
  • A basic income would help the millions of people everywhere who live in chronic insecurity and are effectively losing many of their rights.
  • A basic income would encourage people to shift some of their time from resource-depleting activities to resource-preserving activities such as caring or voluntary work.
  • A basic income would strengthen the following freedoms :
    • the freedom to refuse a job that is onerous, boring, low-paying or just nasty;
    • the freedom to do care work for a relative or friend, or voluntary work in and for the community, that might not be feasible if financial necessity required long hours of paid labour;
      • Unpaid work, from running parent-teacher associations to visiting the elderly, is essential for communities to function and flourish. Yet involvement in voluntary organizations of all kinds has declined almost everywhere.
    • the freedom to do creative work and activities of all kinds.
      • Many great historical figures, from Galileo to Adam Smith, made their contribution to civilization precisely because they were ‘idle’ in the conventional economic sense.
      • Charles Darwin admitted that he was able to embark on his epic voyage on HMS Beagle because he came from a wealthy family whereby he had ‘ample leisure from not having to earn my own bread’.
  • Our government uses National Lottery money to fund potential Olympic champions. In effect, it gives them a basic income (not universal) enabling them to spend as much time as possible on their chosen sport.
    • The achievements of these ‘gentlemen of leisure’ could not have been predicted.
  • Basic income is about social justice, freedom, equality and security. These would all be enhanced whatever the level of basic income, although the higher the level the greater the effect would be.

  • All countries with UBI seem to be happy with it. Wales is currently running a trial which will finish in June.

The Case Against(V&R)

  • UBI cannot be universal. 'Universal' is a non-starter. People who don’t require state help should not receive it.
  • State aid should be directed: child poverty would be a good place to start.
  • Pericles said city-state funds should go to people who contribute—not to everyone.
  • Marx: "To each according to their needs" is a much better maxim
  • The communist state of Vietnam tried UBI, but it proved a disaster. There was no incentive for anyone to do any work.
  • The cost of implementing UBI would be prohibitive. A complete review of tax system would be required. The Rowntree Foundation calculates that the basic rate of income tax would need to go up to 58%.
  • UBI would increase reliance on the state. People would not be motivated to be self-supporting.
  • Rights and responsibilities go hand in hand.
  • There would be inflation: prices will go up because people have more money.
  • UBI would encourage migration. There would be increased competition for housing, healthcare etc.
  • The high-tax system would drive entrepreneurs and high earners away from the UK.
  • Preferable to UBI would be a Minimum Income Guarantee, to ensure no one falls beneath.
  • If there is spare cash in government pockets, it should be spent on foreign aid.

  • The assumptions about the activities of those who receive UBI see heroic. They can be expected to indulge their online addictions and liking for fentanyl and gambling.
  • There are more pressing cases for welfare reform than implementing UBI.
  • The costs of implementing UBI would lead to expanding deficits, or the reallocation of resources from elsewhere.
  • It would be detrimental to the most needy.
  • There are psychological benefits to work.
  • UBI would undermine incentives to participate in society.
  • UBI would encourage dependence.
  • Targeted non-universal basic income would be more effective.
  • A fixed basic income would have differing levels of marginal utility depending on the wealth of the recipient.
  • Experiences in the 1930s demonstrated how labour-intensive means testing can be.
  • To achieve social justice, there is a need is for full employment.

Discussion

  • The case against UBI is powerful and turns on its head what Standing said.(S)

Trials of UBI

  • Andy Burnham is talking about introducing basic income for the homeless of Manchester.(A)
  • There is talk of a pilot in Finchley. But two years is not long enough for a trial.(ℜ)
    • There are no longitudinal studies.(R)

Work Today

  • Trickle-down economics don't work, but bottom-up do.(A)
  • £8,000 is said to be necessary for survival.(ℜ)
  • UBI will be difficult to implement. Is it a good thing to aim for?(J)
  • UBI is about allowing people to make choices.(S)
  • Is work still beneficial to a sense of self? Previous jobs such as mining created camaraderie.(L)
  • Many firms are no longer offering internships.(L)

Taxation and Allowances

  • Beveridge believed his measures would make people nicer and less stressed.(S)
  • Why is administering the Winter Fuel Allowance based on pensions credit so difficult?(R)
  • Means testing vs needs assessment.
  • Your total income (including UBI) would be taxed.(S)
  • Why is Finland so happy when it is taxed so highly?(S)
  • In The Spirit Level it was stated that there are unexpected correlations, such as between the least equal societies and teenage pregnancies.(S)
  • Negative Income Tax used to be a Lib Dem policy.(S)
  • A carbon tax would hit the wealthiest hard e.g. via their private jets.(S)
  • The trouble with consequentialism is that you do not know what the consequences will be.(L)
  • The USA is more class-conscious than the UK.(R)
    • But it’s all money-based.(A)
  • People in Blackpool pay £400 more council tax on average than households in the South-East, because of the higher levels of poverty in the area that needs to be supported.

Education

  • No one in the current cabinet went to private school.(L)
  • We’re cutting back on education when we should be investing.(R)
  • Those who don't like school should be given the opportunity to leave school at 14 and then bank the option to take GCSEs later when the person is ready.(V)
  • The introduction of comprehensives was the best structural change she saw during her teaching career.(P)
  • The UK should be more like Germanny and Holland in fostering technical education for those who prefer to work with their hands or by doing.(R)
  • Arts education opportunities are diminishing.(L)

Books and Documents referenced


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INDEX
Justice
6.v.25
The Good Life
20.v.25
Hume & Testimony
3.vi.25
1H25 Reflections
17.vi.25
Nietzsche 1
24.ii.25
Nietzsche 2
11.iii.25
Universal Basic Income
25.iii.25
Hegel
22.iv.25
2024 Wrap-Up
10.x.24
Democracy
14.i.25
Civilisation?
28.i.25
Compulsory Voting?
11.ii.25
Berlin and Freedom
15.x.24
Nussbaum, Sen and Capability
29.x.24
Slavery Reparations
12.xi.24
Rawls
26.xi.24
Assisted Suicide
11.vi.24
Popper and Evolution
20.viii.24
Popper continued
17.ix.24
Berlin and Romanticism
1.x.24
Marx
19.iii.24
Kant and Knowledge
16.iv.24
Kant and Morality
30.iv.24
Education and Religion
14.v.24
Hobbes & Security
23.i.24
From Locke to Mill
6.ii.24
Rousseau: Social Contract
20.ii.24
Rousseau and Education
5.iii.24
AI and Ethics
31.x.23
Aristotle and AI
14.xi.23
Autumn 2023 Review
28.xi.23
Democracy
9.i.24
Private Education
5.ix.23
The Very Elderly
19.ix.23
Justifiable Law-breaking
3.x.23
Moral Authority
17.x.23