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    Who will implement a guaranteed annual income? PDF Print E-mail
    Contributed by John W. Warnock   
    Tuesday, 19 June 2007

    In 1980 the German Green Party adopted its Federal Program which included a call for a guaranteed annual income. This was part of a broad program which called for an ecological and social transformation of society. Not only did the Greens reject the Soviet model of state socialism, they also rejected capitalism as inherently destructive of the environment and exploitative of human beings. By its nature, capitalism produces gross inequalities in wealth, income, status and power. This system was to be replaced by a new social order with workers’ ownership and control of the private sector and workers’ control in all public institutions. Economic planning would be done by participatory democracy at the local and regional levels. The GAI and the reduction of the work week for all would be funded by a dramatic reduction in military spending.

    This policy was reversed after 1990-1 following an internal political struggle. Today the German Greens, who have been partners in government with the German Social Democratic Party (SPD), are committed to a “modernization” of the German economy which involves a dramatic reduction in the programs and benefits for unemployment insurance, social assistance, and pensions. The original GAI has faded from memory.

    At least since 1980 we have seen governments in all the industrialized countries progressively cut taxes on those with high incomes, corporations, and wealth. We have seen an expansion of regressive consumption taxes.  In all these countries there has been a steady roll back of the benefits of the welfare state. These governments have been Liberal, Conservative, Social Democratic, and broad left coalitions including Green parties. Without exception. We have seen the same thing here in Saskatchewan with the Romanow-Calvert government. For example, during the NDP government of Allan Blakeney (1971-82) social assistance rates were above the Basic Needs level, and they are now well below that level.

    Well what about the Canadian Green Party? At their August 2006 convention, the GPC replaced its historic commitment to progressive taxation. It now calls for “tax shifting” from taxes on income and corporations to consumption taxes on environmentally destructive activities. Their new policy on carbon taxes, strongly supported by Elizabeth May,  is a regressive consumption tax which offers no offset for low income people. In Denmark and The Netherlands, which have the most advanced ecological taxes, such taxes now make up 50% of the cost of electricity for the home and 50% of the cost of home heating fuels. The Green taxes implemented in Europe are occasionally offset to some degree for employees, but rarely offset by any compensation for low income people who are not employed or in the work force.

    Any GAI we are likely to get in such a political context will be similar to that proposed by the MacDonald Royal Commission, around $10,000 per year. Can anyone live on that? If we even get this kind of a GAI, it will likely be because of support from business interests. It is naive to suggest that a GAI of this order will result in any higher wages. We already have the example of government subsidies to private businesses as job creation programs, usually providing 50% of the wages paid to new employees. Does this result in a higher wage?  Not in the least. The employer accepts the subsidy, and the wages remain what is normal in that economic sector. A GAI in these political circumstances would be another subsidy for business. It would be justified as a way to continue with low wages in order to be able to compete with offshore low wage industries.

    I have been active in the general anti-poverty movement for years. I am a member of NAPO. I receive the GIS because my fixed income is below the poverty line. The best that we can do today is to continue to struggle to keep what is left of the welfare state and devote our efforts to building a new political movement that will challenge the present status quo. Pushing for a GAI in the present political context is a dead end and a diversion.

    John W. Warnock is a Regina political economist, retired from the formal work force and living on a fixed income which consists of the OAS, CPP and GIS.


       

    Comments
    Written by Hugo Chavez on 2007-06-20 10:33:53
    Jack, 
     
    It is time to step out of the time machine and join the new century. GAI is the best alternative to reach your goals and by stating that it will probably end up like this or that, you have given up before the fight has begun. 
     
    Also, I am not opposed to job subsidies for businesses and if a GAI creates more jobs or someone can take a low wage job and still live comfortably then isnt that an accomplishment in itself? 
    What would the real Hugo Chavez do?
    Written by warnock on 2007-06-25 09:16:23
    The real Hugo Chavez has a strong commitment to ending poverty, unemployment and inequality. If he were head of the NDP and Premier, he would certainly return to a progressive tax system on wealth, corporations and high incomes. Royalties on the extraction of natural resources would be raised at least to the levels of the past. He would re-create Sask Oil and by legislation give them 60% of all oil developments. He would merge Sask Energy with Sask Power and once again give the Crown corporation complete control over natural gas development. With the additional revenues (at least $3 billion) he would raise social assistance rates to a decent level and put lots of cash into affordable housing. He would also likely nationalize what is left of the forest industry and turn it over to First Nations to develop with workers' control. He might recreate Sask Forest Products and the Timber Board to give assistance. 
    In the last election in Venezuela 94% of the electorate voted and 60% voted for Chavez and his party. With such a policy record in Saskatchewan, who knows, the 40% who do not vote now might come out and give support to the NDP!
    Turn to the Heavens....
    Written by www.livableincome.org on 2007-06-27 00:05:15
    ABOUT Keynote Speaker Guy Standing: current co-chair of the Basic Income 
    Earth Network (BIEN) 
    http://www.etes.ucl.ac.be/bien/BIEN/EC_temp.htm 
    and former Director of Socio-Economic Security, International Labour 
    Organization 
     
    Author of: "Why unions should campaign for a basic income": 
     
    "Trade unionists, as well as all those who count themselves as 
    egalitarians and advocates of social solidarity, should support a basic 
    income as a right of a good society in which dignified work could 
    flourish… A basic income would also enhance real freedom…. It would 
    encourage people to gain greater personal control over how they use 
    their time. Anybody who counts himself or herself as on 'the left' 
    should be keen for the poor and the vulnerable gaining more control over 
    the key assets of society and time is one of them. By the same token, 
    granting a basic income would help to legitimize forms of work other 
    than labour, such as care work and community work… There is a huge 
    opportunity to develop a new progressive vision, if we have the courage 
    to take it and have open minds… A basic income should be part of that." 
    Guy Standing, European Trade Union Institute (TRANSFER), Review 04/2004. 
    Go to this web page with link to download the full article. 
    http://www-ilo-mirror.cornell.edu/public/english/protection/ses/frame.htm 
     
    Guy Standing is also author of the 2002 book: "Beyond The New 
    Paternalism" where he "argues for a complex egalitarianism, in which 
    basic income security is recognized as a right for all. Work (including 
    voluntary, community and care work), and not labor, must be the basis of 
    a 'good society,' and policies must be judged by their capacity to 
    promote occupational security." 
    http://www.amazon.ca/Beyond-New-Paternalism-Guy-Standing/dp/185984345X 
     
    He is also co-editor of "A BASIC INCOME GRANT FOR SOUTH AFRICA" 
    Standing, Guy & Samson, Michael. (Juta Academic Publishers), 2003, 152p. 
    "Edited by Guy Standing (ILO and co-chairman of BIEN) and Michael Samson 
    (Director of Research for Cape Town's Economic Policy Research 
    Institute), this is the most comprehensive book so far on the basic 
    income proposal for South Africa, with contributions by both proponents 
    and critics. 
    SOURCE: http://www.widerquist.com/usbig/25JAN-FEB2004.htm 
     
    And the editor of the 2005 book: "Promoting Income Security as a Right: 
    Europe and North America, ( London: Anthem Press, paperback, 601pp.) 
     
    He is also Professor of Economic Security, University of Bath, and 
    Professor of Labour Economics, Monash University and is one of the 
    leading speakers on Basic Income in the world. 
    Written by Hugo Chavez on 2007-06-28 14:30:33
    Jack, the REAL Chavez is also curtailing freedom of the press. Is that part of your plan, too? 
    More good news.
    Written by www.livableincome.org on 2007-06-29 17:28:20
     
    4. FINLAND’S PRIME MINISTER SPEAKS FAVORABLY OF BIG 
     
    NewsRoom Finland reports that the prime minister of Finland, Matti 
    Vanhanen, of the Centre Party, said that the structure and level of 
    basic security should be reappraised, and that the current wide range of 
    benefits could be replaced by a basic income guarantee of about 600 or 
    700 euros per month. He argued, however, that BIG should be supplemented 
    by incentives to encourage those capable of work to enter the labor 
    market. According to NewsRoom Finland, “Mr Vanhanen's comment comes amid 
    a clash between the Social Democratic Party [SPD], the Centre's main 
    government partner, and the opposition Green League over guaranteed 
    minimum income.” The Finnish Greens accused the Social Democrats of 
    using made-up arguments to reject basic income. NewsRoom Finland 
    reported on February 26, “Finland's opposition Green League on Monday 
    accused the SDP of deploying trumped-up and populist arguments to reject 
    the idea of a guaranteed minimum income. The Greens' critique was a 
    response to a report by the Kalevi Sorsa foundation, an SDP-leaning 
    organization, faulting a basic income scheme as promoted by the Green 
    League. The leaders of the Green League said in a joint statement that 
    the foundation's report played down problems related to social security. 
    Ville Kopra, a researcher, says in the foundation's report that basic 
    income could endanger both universal validity on the labor market and 
    earnings-related unemployment security. The Greens say the Social 
    Democrats' resistance to change is dividing people into two classes 
    where only those in regular employment should enjoy sufficient basic 
    security.” 
     
    Two reports are on line at: 
    http://newsroom.finland.fi/stt/showarticle.asp?intNWSAID=15100&group=Politics 
    http://newsroom.finland.fi/stt/showarticle.asp?intNWSAID=15103&group=Politics 
     
     
     
    8. SEVERAL GERMANS ENDORSE BASIC INCOME 
     
    Several Germans have recently endorsed basic income. Ulrich Beck, 
    prominent sociologist in Germany and author of "The Risk Society," and 
    Kayja Kipping, chairperson of the left party PDS, have both endorsed 
    basic income as a way to give workers greater negotiating power to 
    demand more meaningful work. According to Kipping, many leftist are 
    uncomfortable with BIG because they suffer from “work fetishism.” Asked 
    to explain she replied, “Many think only paid work is a valuable 
    contribution. The ideology ‘whoever doesn't work should not eat' is 
    malicious. To me, this is a completely strange understanding of 
    contribution. Persons in the arms industry do social harm through paid 
    work. On the other hand, many activities that are not paid are important 
    for society.” Vienna. Should basic security be only for persons willing 
    to work and the needy? Ronald Blaschke , a philosopher, sociologist, 
    educator, and spokesperson of the German Basic Income Network also 
    argued for BIG and against work fetishism in an interview with Beate 
    Lammer on diepresse.com. 
     
    German businessman Gotz Werner argues has been arguing for basic income 
    in recent years. He renewed his support for BIG in an interview with the 
    daily die Tageszeitung, last November. The BIEN Newsletter published the 
    following excerpts from the interview: 
    Journalist: You speak very positively. You own over 1700 drug stores. 
    You have annual sales of 3.7 billion Euros. You are one of the 500 
    richest Germans. 
    Werner: That is untrue. Like almost all entrepreneurs, I wanted more and 
    more in the past. Today maximizing meaning is my top priority. 
    Journalist: Do you see the world with different eyes? 
    Werner: I have read the classics, Goethe, Schiller. I understand my own 
    success is not everything. I want to help others succeed. People are 
    central, not business. I try to imagine a positive world. 
    Journalist: "Nothing is stronger than an idea whose time has come," you say. 
    Werner: Victor Hugo said that. I only quoted him. 
    Journalist: Is the time right for your idea? 
    Werner: At least the idea could be discussed at last. Two years ago that 
    was something for a few experts. The halls are full when I give lectures 
    today. 
    Journalist: What has changed? 
    Werner: The old political slogans have nothing to do with the world 
    where people live. Unemployment grows despite temporary announcements of 
    success. Unbridled growth damages our resources. If Angela Merkel would 
    say "full employment" is possible, nobody would believe her any more… 
    Journalist: The unconditional basic income already has supporters in the 
    parties - from left to right. Why is this? 
    Werner: Because this is the most radical form of socialism and the most 
    radical form of capitalism. After one of my addresses, a listener wrote 
    to me: "Your basic income model has reconciled my socialist heart with 
    my neoliberal mind." 
     
    The full interview in German is available at: 
    http://www.taz.de/pt/2006/11/27/a0146.1/textdruck 
    An English translation is available at: 
    http://www.indybay.org/newsitems/2006/12/14/18337615.php 
    Other articles on BIG in Germany are on the web at: 
    http://portland.indymedia.org/en/2007/02/354533.shtml 
    http://portland.indymedia.org/en/2007/02/353198.shtml 
    http://portland.indymedia.org/en/2007/01/352187.shtml 
    http://www.diepresse.com/textversion_article.aspx?id=607979 
    http://www.mbtranslations.com 
    http://www.commondreams.org 
    http://www.freitag.de/2006/50/06501501.php. 
     
     
    9. EDUARDO SUPLICY OPTIMISTIC ABOUT BASIC INCOME IN CHINA 
     
    Brazilian Senator Eduardo Suplicy, one of the strongest supports of 
    basic income in any ruling government in the world, recently visited 
    China and reports substantial hope for the future of basic income in 
    China. Senator Suplicy spoke about basic income with several 
    highly-placed officials in the Chinese government. He found that 
    elements of universal, unconditional support exist in some current 
    Chinese anti-poverty programs, and that there is some hope the China 
    will move further in that direction. Suplicy also spoke with Professor 
    Tian Xiaobao, who is considered to be the first economist in China, 
    author of a 2006 book on Social Security in China. 
    According to Suplicy, “It was with Professor Tian Xiaobao that I had my 
    longest and very productive three hour conversation. After explaining 
    all the advantages of an unconditional basic income to him, after 
    describing experience of the Alaska Permanent Fund Dividend System and 
    the perspective of having such a system in Brazil, I asked him whether 
    he considered possible to think about having the institution of an 
    inconditional basic income for all 1 billion and 300 million or more 
    Chinese in the future. Professor Tain Xiaobao answered that he 
    considered the Basic Income a very sound and rational proposal, making 
    sense and being consistent with the objective of building a harmonious 
    society, such as advocated by Confucius 520 years before Christ. It is 
    also consistent with the objectives of today's Chinese government. He 
    told me, however, that to attain the objective of paying a basic income 
    to all Chinese, it would be required a time of preparation for the next 
    three quinquenal plans. Thus, a Basic Income would be desirable and 
    possible in 2020.”

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