
The below is a special extended comment, a response to Bernard Keane’s article on April 10, “Universal basic income? More like universally bad idea“. Over the next little while, Crikey’s associate editors will occasionally publish longer comments from our readers. So if you’ve got big ideas about something you’ve read in Crikey, get in touch at [email protected].
Sir Thomas More, who presented the idea of a universal basic income in his great work Utopia, in 1516, would be surprised to hear Bernard Keane’s claim that it is a “neoliberal solution to a particularly neoliberal problem”. His proposal, which preceded liberalism by centuries, let alone neoliberalism, was grounded in the search for social cohesion by supporting people to feed themselves rather than punishing them for failing to do so.
And More, Thomas Paine and Bertrand Russell would all be taken aback by the idea that this most universalist of policy proposals has anything to do with individualism. Paine viewed it as a “natural inheritance” due to all of society, as part of a program of wealth distribution, and Russell as a combination of anarchism and socialism — a way to abolish poverty, alongside a broader welfare program.
Why is this history important?
For one thing, it’s worth emphasising that vociferous critics of an idea who have shown themselves too lazy to find out about its true heritage should have their broader critique questioned.
But, more importantly, the deep intellectual heritage of universal basic income, going back half a millennium through some of the leading lights of left-wing political philosophy, shows that it is an idea that demands serious consideration, not knee-jerk rejection.
UBI is a huge concept with many different models for its implementation. Indeed, the fact that it is currently being pushed by some on the libertarian right is even greater reason for the left to come together to envision models which do not follow those reductionist versions. At its simplest, though, it can be thought of as a system under which income doesn’t start at zero. Just like we agree that, in a decent society, nobody should do without healthcare, and nobody should go without at least a basic education, nobody should be left in poverty.
This proposal, while highly relevant to a world where work is increasingly precarious, actually isn’t driven by questions of the future of work. It’s driven by the desire to create a fairer, more equal world while giving people agency — control over their own destiny.
In that conception, UBI is an inherently democratising project, re-conceiving the relationship between the citizen and the state. It tells us that government’s job is to support and enable all of us, for who we are not for what we do. It recognises that there is a multitude of different ways people participate and contribute to society, not just through paid labour. It re-balances power between employers and employees, gives people the basic resources they need to take the steps they might want to take in life. It is an enabling policy for the great majority, while, through the implied and necessary tax increases on the rich, limiting and devaluing greed.
This is an enormous conceptual leap to make. It requires us to challenge the existing political economy and culture at a deep level; to rethink how our society operates and is organised.
But this is a challenge previous generations accepted willingly. And UBI is heir to previously bold ideas such as the eight-hour day, universal health and education, and the introduction of the welfare state, all of which were ridiculed by conservative thinkers at the time as sure-fire recipes for creating an idle class who would refuse to work. In fact, as history showed, they enabled more people than ever before to choose how to participate and contribute to society.
It’s also a challenge that huge numbers of people are accepting today, embracing a bold vision which many commentators are showing themselves unwilling or unable to share.
Poverty and inequality have many aspects and many causes. But, primarily, they are about lack of money and agency. A UBI, alongside universal public health and education, and support for affordable housing, can help address both — giving people both a basic level of money and a boost in agency. It’s not a silver bullet, but it can be part of a coordinated approach. It deserves serious, respectful consideration.
Tim Hollo has previously worked as communications director for former Greens leader Christine Milne.
67 thoughts on “Bigger than you, me and Bernard – UBI demands big thinking”
Draco Houston
April 11, 2018 at 7:11 pmGood thing the greens haven’t said or done anything about the 4 day week they suggested last year and instead now spruik this crap. This is why I never vote for you clowns.
Howard
April 14, 2018 at 9:57 pmSo which clowns do you vote for instead?
Richard
April 11, 2018 at 8:31 pmI believe the idea of UBI, so all can have a chance at some dignity in life, is the way to go, properly (the word) overseen. I assume of course this would be only for people below a particular threshold and guessing that savings in the welfare system will go a long way to pay for this. However, we will need to see a more humane face on the ATO before they are allowed to determine who qualifies!!
Anything that hastens the end of the mean, demeaning and wicked neoliberal delusion that trickle down will enable all users to pay, is to be applauded.
I only have two concerns .. 1) it would be tempting for some to use it as a form of behaviour control and 2) it will enable governments to gather even more data about people..
And the sodding Submit button still does not work in Chrome..!!!
Why not?
Fletcher Beverley
April 11, 2018 at 10:15 pmUniversal Basic Income seems to have become a naughty word. Which is weird to me – I genuinely don’t see how any future society will exist without one.
Anytime people have formed society, the result has been concentration of power into a finite number of hands. In modern society, power is almost entirely related to a person’s ability to leverage financial pressure on other people. Everyone who works is fundamentally disempowered from being able to seek improvements to their working conditions because there are more workers than work. My boss can give me the sack and my job will be filled in a fortnight.
A Universal Basic Income will distribute financial power more broadly and break up that concentration of power.
It serves to move the ‘minimum’ acceptable conditions for a worker a bit higher. Because if my boss fucks with me too much, I can leave and I will still be able to eat and live. If I decide to go on an illegal strike, I’ll still eat. And, perhaps more importantly, it allows people to opt out of work entirely. The fewer workers, the greater negotiating power each worker has and the better conditions will get.
A few common arguments (on the material left, we can discount the whole “dole bludger” crew as being twats that don’t like the idea of social welfare in the first place) is that because companies don’t realistically pay tax, it just serves to make the job of vacuuming up that money into profit easy. But that’s not a criticism of UBI, that’s a criticism of companies not paying tax.
The inflation argument as we inject money into the hands of “non-productive” people. Again, I don’t see this as a problem. At the moment half our GDP is “non-productive” profit from the FIRE(Finance, Insurance, and Real Estate) sectors. My landlord didn’t build the land I live on – by virtue of owning it he gets a license to garnish my wages. Yes inflation is a problem. No I don’t think the money available from UBI will be used in purchasing non-productive things. We all gotta eat, if companies can sell food they’ll make food. Regardless of whether the money they get is UBI money or money from a landlord.
Now forgive me for thinking pie-in-the-sky, I’m 25 and plan to live forever, I’ll dream long dreams if I want to… But what is standing in the way of public ownership of the essentials for life? What is standing in the way of public ownership of utilities, housing, food production… (Yes I know that didn’t go so well in USSR, but public does do it better. Half of the worlds food relies on the use of nitrogen fertiliser that was developed by a state funded research institute – and then it followed the age old pattern of public research leading to private profit. Also hello there internet.) Meteor busting satellites on the moon…
You name it, if it’s essential for all people to live shouldn’t it belong to all people?
And then a UBI to ensure that the basic essentials owned by the state and not for profit becomes the method that’s used to ensure equal distribution of those essentials. And it would continually redistribute wealth so that financial power never becomes concentrated in so few a hands that “Hiring half of the working class to kill the other half” becomes the more profitable option.
Richard
April 12, 2018 at 9:02 pmWhat is to stop it?
Outmoded “neoliberal” theorists with a stranglehold on the legislative process.
Howard
April 14, 2018 at 10:53 pmMaybe. But will people always allow neoliberals to have a stranglehold on the legislative process, and if so, why?
covenanter
April 15, 2018 at 12:50 amGood idea, Beverly, about the essentials being owned by people who are not going to exploit the prices of their services or goods to the point of “what the market can bear”, sweeping up all the money if they possible could, (conspiracies to fix prices being exposed by Smith in his Wealth of Nations).
Self employment in the form of co-operatives might see some UBI recipients take control of the means of production, with the guarantee of an income supplying Smith’s description of money as a “lubricant” for business, or more broadly “enterprise”.
Might the state disappear at about such a time when the people take control of the means of production?
The six or seven International Co-operative principles and the four International Greens principles tend to cover similar ground, and historically on either side of the Iron and Bamboo Curtains of the Cold War, co-operatives worked quite effectively.
For example, Gerry Peacocke, Member for Dubbo, and a former National party Minister for Co-operatives in NSW , organised the Australian Woolgrowers Co-op, and a Chinese Yarn making Co-op to supply an Italian Clothmakers Co-op, “co-operatively”, all parties happy.
That is, except Peacocke”s conservative National Party colleagues, who froze him out of a leadership role for being too radical, by involving “communist’ co-operatives?
Bob Hawke championed workers’ co-operatives in the 1980’s till the “conservative” element in Labor saw workers also being owners as “doing their heads in” as unionists and withdrew their support, existentialist angst in action?
UBI, bring it on, and with some imagination?
tinman_au
April 11, 2018 at 10:47 pmWe already have a form of UBI, it’s called “Dividend Imputation”. Fair enough, you need to buy into it to start with, but once you do, you can choose what you want to do from there on, much like UBI.
Richard
April 12, 2018 at 9:00 pmSo it is hardly universal.
Howard
April 14, 2018 at 11:12 pmNothing like a UBI. Dividend imputation is just another middle class income stream which doesn’t look after those that a UBI would mainly be designed for.
kyle Hargraves
April 11, 2018 at 10:48 pmA truly first class account but it sits only on the surface Tim. with regard to the observation “previously bold ideas such as the eight-hour day, universal health and education, and the introduction of the welfare state, all of which were ridiculed by conservative thinkers”. – A cursory scan of The Times had any number of persons (including reporters) asserting that “the French would invade within a week” if the proposal by Robert Owen (the ten-hour day in 1810) were to prevail.
Pity the article wasn’t somewhat longer because more detail could have been addressed but many on this list are going to have to abandon obvious prejudices (two employees of Crikey in particular) and undertake some reading to ascertain what it means to consider GDP from the three different perspectives of production, income and consumption. That is were we begin.
As for Arky I wonder if he has read Utopia. The comment is all too common among those who are challenged with a sense of history compared with a few memorised dates. The introduction, Arky, is central to the topic of distribution of production; GDP if one prefers.
“I only have two concerns .. 1) it would be tempting for some to use it as a form of behaviour control and 2) it will enable governments to gather even more data about people.”
.mmm.. at inception Richard. Now to a few specifics.
By analogy, given that the author of the article is a supporter of the Green/movement/Party, the UBI (for the want of a name – U.B.wealth might be preferable) so far, is going to suffer the same fate at the proposed four-day week announced by di Natale about a year ago. di Natale OUGHT to have pointed out that all production is by human means. What is currently being creamed off as surplus value (to give it the Marxist term) by companies can be paid to workers; four days work and paid for five days. Those who produce get more and those who merely employ labour (under a capitalist mode of production) receive less. Currently it is the other way about so we’re just changing the algebraic convention on the axis as it were.
The UBI/W is conducted against the same theme. The conflict is one of class and of class-consciousness. One requires an appreciation of both to appreciate either!
The Greens need to make it clear as to (1) the necessary changes in the Constitution for differential taxation (e.g. none above T. Capricorn or in many remote locations; fractional in the regons (less then 6,000 persons); less in small towns and maximum in the cities. After that (2) the taxation for companies, incorporated societies, churches and trusts needs to be revised with each of the aforementioned paying something like 30-39% with very few deductions. I envisage only cleaning, staff training – but not like the Training Guarantee Scheme and depreciation would be tax delectable for companies. Then (3) the lumpen protrolatrate needs to be considered; they either become susceptible to education or its Manus Island. Not really a concern Richard.
Education and health credits could be part of the package – rewarding healthy people and offering forbearance of unhealthy people. Ditto for education which is also a mess in this country.
If the Greens wish to sell this package then they need to select what is necessary as a “first swing of an axe” an attach some numbers to it. The social benefits (externalities ought to prove to be attractive in monetary terms. However, I expect that the Green Party is too wedded to NIMBYism, their own companies (paying zip tax) and other high-minded ideals which, with any luck, – they assume – will not have any effect upon the members of the Party but some positive effect upon the country. Hence the absence of detail
Arky
April 12, 2018 at 11:12 am“As for Arky I wonder if he has read Utopia”
Long time ago. I remember thinking the religious areas of it were particularly problematic, but then of course More was such a devout Catholic that he literally lost his head over it so that’s no surprise.
I don’t know why commenters feel the need to think I don’t know history extremely well just because I shit on the idea that old ideas have inherent worth just from being old. I have that view precisely from studying so much history. When the Iraq invasion was being mooted around by Dubya Bush and his deputy sheriff, I was one of the people running around screaming “It’s the Bay of Pigs all over again you idiots, read some history!”.
Howard
April 15, 2018 at 2:01 amReally! Why on earth were you running around screaming ‘It’s the Bay of Pigs all over again you idiots, read some history!’ when it wasn’t. The Bay of Pigs was a disaster and a failure. Dubya’s Iraqi invasion, although illegal, immoral and unnecessary, was successful. The Iraqi army was defeated and Hussein dealt with. This was Shrub completing what he felt Bush senior didn’t finish.
Of course the withdrawal was a disaster, but there was never any coherent plan to deal with the chaos that was to follow the defeat of Hussein. This of course led to the vacuum that allowed for the rise of ISIS, and the rest as they say, is history.
It’s not good enough to just read history. You need to also understand it and interpret it correctly. As for the worth of old ideas, they are no different to new ideas, some have worth and some don’t. There are certain universal truths that are unchanging and everlasting.
Howard
April 15, 2018 at 3:37 am‘Then (3) the lumpen protrolatrate needs to be considered; they either become susceptible to education or its Manus Island. Not really a concern Richard.’
Just me being pedantic again Kyle, but I do believe you meant: the lumpen proletariat.
Stu Pidman
April 12, 2018 at 8:10 amA new UBI currency is required. It would be used for food, housing, and other items deemed essential. Yes I know the definition of essential would be fiercely debated, but hard lines will need to be drawn, whatever UBI solution is chosen. This could work. For example you can’t buy Lear jets or maseratis with UBI, but maybe base model cars, etc. You get the drift?
There, basically I’ve solved it bar a few details.
brian crooks
April 12, 2018 at 9:30 amUBI is not a problem, its a solution to a world wide problem, unless something is done about job destruction by technology the world will sink into a universal depression with lawlessness and wars the result, even the rich will suffer because there is not enough of them to keep an economy going, with no income nobody can buy products or services no matter how cheaply they are produced, UBI will fund itself by boosting the economic spending which boosts demand, which boost tax receipts which pays for UBI ,its a self serving process, the same forces that opposed the end of slavery for greedy economic reasons, who opposed a living wage and oppose sickness payments and welfare of any kind will oppose this simply for greed and personal gain, its as much about power as money as the greedy powerful use poverty to control the masses, they always have and always will.
Arky
April 12, 2018 at 11:19 am“Technology will destroy all our jobs!” has been the refrain since the original Luddites if not earlier. Get a new arguments. I’ve been hearing “automation will destroy all our jobs!” since I was a child.
Some types of job are reduced, but new ones are created.
Fletcher Beverley
April 12, 2018 at 2:42 pmNothing like relying strictly on anecdotal evidence and calling everyone luddites to prove a point, right Arky?
Here are some non-anecdotal facts for you. Stop me when you start to see a trend:
Worldwide average work week per worker by year:
1870: 64.3 hours
1880: 62.5 hours
1890: 60.9 hours
1900: 59.5 hours
1913: 57 hours
1929: 47.8 hours
1938: 46.1 hours
1950: 45.4 hours
1960: 43.2 hours
1970: 41.7 hours
1980: 40.1 hours
1990: 38.9 hours
2000: 38.2 hours
Now how can you say there is the same amount of work available when each worker is working more than 30 hours less per week compared to 1870?
What will this look like in a hundred years? Will we be working 20 hour weeks? What will happen if the hourly rate stays the same and hours worked go down?
To dismiss the very real possibility that workers will not be able to get enough hours of work due to the ongoing automation of all industries is to bury your head in the sand shouting “they said that back in my day” while ignoring the facts which say they were right all along. Maybe they got the timeline wrong, but it’s already happening… We are working less – there is no factual evidence which contradicts this.
Automation is gradual, but it is reducing the amount of work available and has been doing so for a long time. To say that automation and labor don’t have a relationship is absurd.
That said, people should work less as productivity goes up, but in order for that to work their hourly wages must also go up.
Richard
April 12, 2018 at 9:10 pmThe Luddite movement did not want to destroy technological advances, they were quite correctly concerned about teh social consequences of mechanisation.
I guess those who are concerned which jobs might be taken over en masse by widespread automation will just have to get a new job, polishing robots .. oh, wait.. robots can polish themselves now.
kyle Hargraves
April 12, 2018 at 8:42 pmYou are challenged, somewhat over rejecting your pet refrain concerning income and jobs – it seems to me Brian; and I suspect others. Quite some number of people on this list have conveyed that you have it 180 degrees about (or arse-about in your day) in regard to income and inherent “job destruction” as you put it. For the nth time the matter is about GDP; i.e. about what actually is produced. [You will find the “production approach” to measuring GDP in any first year Econ. text or on the Net]. It is an irrelevance as to whether humans, horses, robots or god (or any combo) produced the total GDP. As to sharing its GDP/population – more or less.
Fletcher, below, has adopted an approach that refutes you altogether on the relationship between jobs and productivity/income (same thing – opposite sides of the coin). You seem to think that the distribution of product under capitalism is unfair and, yes, it actually is. In this regard you are half-way there.
What Fletcher could have added (the data is there) is the increase in the number of occupations from 1870 to the present in terms of A.10^n You will find that the variable “A” increases until n increases and thus the pattern of a radically increasing number of occupations. [The dot . signifies multiplication and could be expressed as (A)(10^n); ‘x’ in higher maths means something else].
You are right about the lumpen prols. (likely) not being able to assume responsibility with a greater proportion of wealth. In the short term : agreed. The same issues occurred when the post-war governments around the world cleaned-out the slums in the big cities (including Australia). Incidentally, the slum-dwellers offered the most resistance! People really do know what is good for them.
Bethany Challen
April 13, 2018 at 1:04 pm“This is an enormous conceptual leap to make. It requires us to challenge the existing political economy and culture at a deep level; to rethink how our society operates and is organised.”
It would seem many can’t even get to the starting blocks on this point. I don’t think I’ve ever been so disappointed reading Crikey subscriber comments on an article… Its been like Facebook but generally with better spelling! Tim’s article was thought provoking and written as such, not as a How To Manual for implementation! Yes let us “Imagine” a better society and then work on the structural reform to get there!
kyle Hargraves
April 13, 2018 at 2:17 pmOn the one hand : agreed (somewhat) Bethany and I do have some sympathy for your post. On the other, however, it is all very well to offer thought provoking scenarios but the implication, even in principle, has to be addressed if the proposal is to be considered seriously. Unfortunately for the Greens (and they are not entirely alone) detail does not seem to be their strongest suit.
Consider the political pamphlets of decades ago; indeed a century. The proposal, at least in principle, was argued forcefully. In the age of cynicism what passes for wishful thinking is deemed annoying. The more thoughtful pragmatists reading these pages (albeit conceding a lot of uninformed comment) are less sanguine as to the proposal attaining first base. In such a case the proponents have to re-double their efforts of advocacy.
You have remarked on the (improved) spelling re: Crikey c.f. FB. Do you have an opinion on the standard of punctuation? If similarly superior I might be at the right place.
Bethany Challen
April 13, 2018 at 2:31 pmI think everyone gets a tad lax with punctuation when they get excitable! And some folks seem to have become highly excitable about the very concept of UBI!
covenanter
April 15, 2018 at 1:04 amPerhaps the existing “political economy’s” neglect of the co-operative sector, officially begun in 1846, trialed by Robert Owen somewhat earlier, and well established in Australia in the 1800’s, is one problem which could be rectified by better education on the subject.
Recipients of the UBI, who might not have actual paid employment could use their new found “capital” to start their own wealth creating enterprises.. The Mondragon experience, post WWII, would be good beginning for any such education.
Definitely an element of Political Economy, by any description, though not much considered, and certainly not “Imaginary’.