Wednesday July 06, 2022

Basic income

April 18, 2016

What would you do if somebody gave you a few hundred pounds each month to spend on whatever you wanted? Would you quit your job? Retrain and look for a better one? Spend more time with your kids? Get those vital repairs done on your house? Eat better food?

Basic income – the proposal to give a flat, non-means-tested payment to every citizen – is an old idea. It has been around for centuries, and for centuries its proponents have largely been dismissed as utopian, or insane, or both. This year, however, that insanity is gradually becoming a political reality. Finland is considering giving its citizens an unconditional stipend of €800 a month and the Dutch city of Utrecht is carrying out a similar experiment. Switzerland will hold a referendum on basic income in June.

Campaigns to get the idea taken seriously are sprouting like mushrooms around the world. In the US, the tech start-up funder Y Combinator is earmarking money to test the theory. In Germany, a crowd-funding initiative called Mein Grundeinkommen (‘my basic income’) to give a basic wage to as many people as possible has attracted over a quarter of a million contributors.

“Basic income is about power, about letting it go,” Michael Bohmeyer, a former entrepreneur who runs Mein Grundeinkommen, told me. “If we don’t disconnect work and income, humans will have to compete more and more with computers,” Bohmeyer explains. “This is a competition they will lose sooner than we think. The result will be mass unemployment,” he says, “and no money left for consumption.”

With that in mind, Bohmeyer began an experiment in anti-capitalism that has been more successful than he could have imagined.

So far, 39 people, chosen at random from a pool of applicants, have received €1,000 a month through the scheme – and almost none has spent the year twiddling their thumbs. One quit his job at a call centre to retrain as a pre-school teacher; another found that the removal of daily stress about work and money cleared up his chronic illness. Others found fulfilling jobs, having given up on the prospect years earlier, and almost all have been sleeping better, worrying less and focusing more on family life. What would society look like if that sort of freedom were available to everyone: if advances in technology and productivity could benefit not only the very rich, but all of us?

Basic income is an idea that manages to be simple, practical and wildly, unthinkably radical at the same time. It’s simple because it is the only concrete, even vaguely workable solution that has so far been offered to tackle advancing inequality, an ageing global population and the encroaching end of wage labour as we know it. It’s practical because basic income is that rare thing, that socioeconomic unicorn: a compromise that has received positive coverage from almost everyone, from Financial Times columnists to feminist campaigners, from libertarian techno-millionaires to young, left-wing organisers.

And it’s radical because, in its simplicity, in its pragmatism, unconditional basic income is a proposal that requires us to rethink the economic and ethical framework of neoliberal capitalism that has governed our lives for generations. All that it requires is that we trust one another.

The notion of an economic system based on trust and mutual aid rather than fear, shame and suffering still sounds like a fairy tale. But as more and more jobs are automated away, as mandatory wage labour collapses as a method of organising society, even the most conservative governments may find themselves with no other option.

We have a choice, not just as a society, but as a species. We can choose to let fear and suspicion run our lives as we all struggle harder each year to survive in a collapsing economic system on a smoking planet. Or we can choose to trust each other enough that everyone can share in the rewards of technology. It is blasphemous, unthinkable – but it may also be the only practical choice we have.

This article has been excerpted from: ‘What would society look like with Universal Basic