Universal Basic Income Back In Vogue

(RTTNews) - The centuries-old concept of a guaranteed unconditional regular payment, or universal basic income, has returned to the attention of the world at the start of 2017 with Finland launching a two-year long experiment among 2,000 unemployed.

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The Belgium-based Basic Income Earth Network, an international network that serves as a link between individuals and groups committed to or interested in basic income, defines basic income as "a periodic cash payment unconditionally delivered to all on an individual basis, without means test or work requirement."

A darling for the Left to reduce poverty and inequality, the concept of a universal basic income traces its origin to Thomas More's 1516 essay Utopia.

In recent years, the idea is being embraced by libertarians and some conservatives as they worry over rising unemployment in the era of robotic automation.

The main criticism leveled against the universal basic income is that it could discourage people from seeking work and make them lazy. Less work translates to less productivity in the economy and less revenue for the government, all of which could make the basic income an expensive social welfare measure.

Economists also point out that basic income payments are mostly marginal and hence, would matter only to the most poor and only if it is in addition to other welfare benefits such as medicare.

All experiments on basic income are trying to disprove the notion that a basic income could create a disincentive to work. Instead, it could support the unemployed people's efforts to find a job such as gaining skill training.

In the Finnish experiment, 2,000 persons aged between 25 and 58 were selected from a random sample of existing jobless benefit recipients. They are set to receive a monthly income of EUR 560 for two years, in addition to existing welfare benefits. The first payment will be made on January 9.

In Switzerland, a proposal for a basic monthly income for every resident was rejected overwhelmingly in a referendum held in June 2015.

The rejection does not seem to have deterred the world from trying out the revolutionary welfare scheme. Along with Finland, Scotland is also set to trial universal basic income schemes in Fife and Glasgow later this year. The Netherlands also will carry out a two-year basic income scheme experiment in Utrecht and surrounding cities this year.

The Italian coastal city of Livorno launched a scheme to provide a guaranteed basic income to the city's 100 poorest families in June last year.

In Canada, Ontario's provincial government also announced plans to run a basic income pilot scheme.

Localized schemes have been trialed in Brazil by NGO's, while charities are planning to run pilot schemes in Kenya and Uganda this year.

Media reports citing BIEN's co-founder Guy Standing suggested that the Indian government is set to outline a basic income scheme for all its citizens as early as in January.

BIEN's Standing is also set to make a presentation at the World Economic Forum annual meeting in Davos, which will be held from January 17 to 20.