The argument goes that because we currently target money to those in need, by spreading out existing revenue to everyone instead, those currently targeted would necessarily receive less money, and thus would be worse off. Consequently, the end result of basic income could be theoretically regressive in nature by reducing the benefits of the poor and transferring that revenue instead to the middle classes and the rich. Obviously a bad idea, right? …
Basically, this particular argument would only make sense if we in no way altered our tax system to achieve UBI, and if our programs worked as we assume they work because that’s how they should work. The problem is they don’t work that way.
In the United States today, on average, just about one in four families living underneath the federal poverty line receives what most call welfare, which is actually known as Temporary Assistance for Needy Families, or TANF. It gets worse. Because states are actually just written checks to give out as they please in the form of “block grants,” there are states where far fewer than one in four impoverished families receive cash assistance. Continue reading
Category Archives: News and Analysis
Watergate Babies and the loss of the anti-monopoly and anti-bank tradition in the Democratic Party
A wonderful article. Brilliant analysis.
Indeed, a revolution had occurred. But the contours of that revolution would not be clear for decades. In 1974, young liberals did not perceive financial power as a threat, having grown up in a world where banks and big business were largely kept under control. It was the government—through Vietnam, Nixon, and executive power—that organized the political spectrum. By 1975, liberalism meant, as Carr put it, “where you were on issues like civil rights and the war in Vietnam.” With the exception of a few new members, like Miller and Waxman, suspicion of finance as a part of liberalism had vanished.
Over the next 40 years, this Democratic generation fundamentally altered American politics. They restructured “campaign finance, party nominations, government transparency, and congressional organization.” They took on domestic violence, homophobia, discrimination against the disabled, and sexual harassment. They jettisoned many racially and culturally authoritarian traditions. They produced Bill Clinton’s presidency directly, and in many ways, they shaped President Barack Obama’s.
The result today is a paradox. At the same time that the nation has achieved perhaps the most tolerant culture in U.S. history, the destruction of the anti-monopoly and anti-bank tradition in the Democratic Party has also cleared the way for the greatest concentration of economic power in a century. This is not what the Watergate Babies intended when they dethroned Patman as chairman of the Banking Committee. But it helped lead them down that path. The story of Patman’s ousting is part of the larger story of how the Democratic Party helped to create today’s shockingly disillusioned and sullen public, a large chunk of whom is now marching for Donald Trump. Continue reading
Chinese Cooperative and Basic Income
Finally, all Huaidi citizens have had a basic income of 1500 yuan [US $221] per year since 1995, which is directly transferred to their bank accounts in shares of 125 yuan [US $18.5] per month. For children under 18, this money is kept in parents’ accounts. This amount money was significant in 1995 (Chinese cities’ nominal per capita annual income was about 5000 yuan [US $738] in 1995), but not as much now, due to the rapid rise of GDP in the last 20 years (in 2015, the nominal per capita annual income in Chinese cities was about 50,000 yuan [US $7,379]).
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Depression and Trump
Torsten Bell, director of the Resolution Foundation, provided a useful breakdown of voting patterns in last Tuesday’s presidential election. Taken at face value, the results seem to show that Hillary Clinton did well among those voters on the lowest incomes. She led 53%-41% among those earning less than $30,000 a year and by 51%-42% among those earning between $30,000 and $50,000.
But these statistics are misleading. There was actually a 16-point net swing to the Republicans between the 2012 and 2016 elections among those earning less than $30,000 a year and a 6-point swing among those earning $30,000 to $50,000. By contrast, there was a swing to the Democrats among those on higher incomes, and this was particularly pronounced among those earning more than $100,000 a year. Continue reading
How the destruction of industrial Britain casts a shadow over present-day public finances
A new report by Christina Beatty and Steve Fothergill, Centre for Regional Economic and Social Research, Sheffield Hallam University
- UK manufacturing employment has fallen from 8.9 million to just 2.9 million overthe last fifty years, and 500,000 jobs have disappeared from the coal industry. This has destroyed the economic base of many communities, especially in the North,Scotland and Wales.
- The main effect ofthis job loss has been to divert vast numbers of men and women out ofthe labour market onto incapacity related benefits, these days Employment and Support Allowance (ESA) which accounts for almost 2.5 million adults of workingage. The highest claimant rates – 10per cent or more of all 16-64 year olds – are nearly all in older industrial areas.
- ESA and the additional benefits received by ESAclaimants – Housing Benefit and Disability LivingAllowance for example – are a £30bn-plus annual claim on the Exchequer.
- Low pay in former industrial areas depresses tax revenue and inflates spending on in-work benefits. Spending on Tax Credits, for example, exceeds £850 a year per adult of working age in much of older industrial Britain – double the level in parts of southernEngland.
- The Treasury has misdiagnosed high welfare spending as the result of inadequate work incentives and has too often blamed individuals for their own predicament, whereas in fact a large part ofthe bill is rooted in job destruction extending back decades.
- The welfare reforms implemented since 2010, and strengthened since the 2015 general election, hitthe poorest places hardest. In effect, communities in older industrial Britain are being meted out punishmentin the form of welfare cuts forthe destruction wrought to their industrial base.
- Across most of older industrial Britain the loss arising from welfare reform is expected to exceed £750 a year per working age adult by 2020-21.
- There is an alternative – a genuine rebalancing ofthe economy in favour of industrial production and a revival of regional economic policy.
- Policy makers need to take a long-term perspective, look at the differences between places, and stop thinking in silos.
F-35 on fire again
An F-35B Joint Strike Fighter caught fire while in-flight during a training exercise last month, according to a report from Hope Hodge Seck of Military.com.
The incident was listed by the Naval Safety Center as a “Class A Mishap” — the most serious mishap class — which means that there was $2 million or more in damage. Continue reading
Racism and Trump
I do not know what kind of America I will wake up to November 9. But I know that the result of the election does not hinge on Election Day. What happens to the U.S. will be the cumulative effect of a campaign that has mainstreamed bigotry and is now mainstreaming – or at least severely playing down – white supremacist violence.
Trump never specified what era he was referring to when he said he would “Make America Great Again.” Many assumed it was the 1950s, when job growth for whites was high and civil rights were denied. But when I visit Lovejoy’s grave across the river, I am reminded of life in St. Louis in the 1830s, of the mob violence that preceded the Civil War, of the way Lovejoy tried to convince people that non-whites were human and white mobs were a dangerous problem, and how he anticipated his own death as a result of these toxic politics. His era was one in which white men could attack non-whites with impunity, and those who defied them faced terrifying consequences. It would have been a great era to be Donald Trump. Continue reading
UN: 3C of warming under current global climate pledges
The United Nations Environment Programme (Unep) said that pledges put forward to cut emissions would see temperatures rise by 3C above pre-industrial levels, far above the the 2C of the Paris climate agreement, which comes into force on Friday.
At least a quarter must be cut from emissions by the end of the next decade, compared with current trends, the UN said.
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China’s J-20 Stealth Fighter
The J-20 was developed as a foil to advanced U.S. fighters, including fourth generation F-16 Fighting Falcons and F/A-18 Hornets and, more directly, fifth-generation F-22 Raptors and F-35 Lightning fighters.
In 2009, a breach of F-35 project resulted in the theft of several terabytes of data. Though the attack was never publicly attributed to China by the U.S. government, visual similarities in the chassis of the J-20 to the F-35 have led commentators to speculate that the stolen F-35 intellectual property helped state-owned Chengdu Aerospace Corporation develop their fighter.
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Petition: Cancel the F-35
A petition to the United States Congress and the governments of Australia, Italy, the Netherlands, Norway, Turkey, the United Kingdom, Israel, Japan and South Korea from the world and from the people of Burlington, Vermont, and Fairbanks, Alaska, where the F-35 is to be based. Initiated by Vermont Stop the F35 Coalition, Save Our Skies Vermont, Western Maine Matters, Alaska Peace Center, University of Alaska Fairbanks Peace Club, North Star Chapter 146 Veterans For Peace, World Beyond War, RootsAction.org, Code Pink, Ben Cohen.
The petition reads:
The F-35 is a weapon of offensive war, serving no defensive purpose. It is planned to cost the U.S. $1.4 trillion over 50 years. Because starvation on earth could be ended for $30 billion and the lack of clean drinking water for $11 billion per year, it is first and foremost through the wasting of resources that this airplane will kill. Military spending, contrary to popular misconception, also hurts the U.S. economy (see here) and other economies. The F-35 causes negative health impacts and cognitive impairment in children living near its bases. It renders housing near airports unsuitable for residential use. It has a high crash rate and horrible consequences to those living in the area of its crashes. Its emissions are a major environmental polluter.
Wars are endangering the United States and other participating nations rather than protecting them. Nonviolent tools of law, diplomacy, aid, crisis prevention, and verifiable nuclear disarmament should be substituted for continuing counterproductive wars. Therefore, we, the undersigned, call for the immediate cancellation of the F-35 program as a whole, and the immediate cancellation of plans to base any such dangerous and noisy jets near populated areas. We oppose replacing the F-35 with any other weapon or basing the F-35 in any other locations. We further demand redirection of the money for the F-35 back into taxpayers’ pockets, and into environmental and human needs in the U.S., other F-35 customer nations, and around the world, including to fight climate change, pay off student debt, rebuild crumbling infrastructure, and improve education, healthcare, and housing. Continue reading
“In the long run, the Pentagon budget won’t go down.”
Take the current budget. It’s down slightly from its peak in 2011, when it reached the highest level since World War II, but this year’s budget for the Pentagon and related agencies is nothing to sneeze at. It comes in at roughly $600 billion—more than the peak year of the massive arms buildup initiated by President Ronald Reagan back in the 1980s. To put this figure in perspective: Despite troop levels in Iraq and Afghanistan dropping sharply over the past eight years, the Obama administration has still managed to spend more on the Pentagon than the Bush administration did during its two terms in office. Continue reading
Intellectual Property and Inequality
That’s the displacement story, but suppose that robots are extremely cheap. There is no obvious reason they shouldn’t be cheap. After all, we probably won’t need any rare materials to make robots. And presumably robots could be mostly manufactured by other robots, so the labor involved wouldn’t be expensive. In this case, we should be able to buy a robot at our local hardware store or from our favorite internet retailer for a few hundred dollars.
Once we buy the robot, we can have it clean our house, cook our food, mow our lawn and do all sorts of other tasks that we may not want to do ourselves. We can probably even save on our food budget by having the robot plant and tend a vegetable garden. If robots are doing all this work for us and we no longer need to buy and maintain a car to meet our transportation needs, we should have all have a high standard of living.
But suppose that patents and related protections keep the price of robots high. And instead of technology driving down the cost of transportation with self-driving cars to almost nothing, patent monopolies allow the top executives and shareholders of Uber or its equivalent to get very rich at the expense of the rest of the population. In that scenario, most people may not benefit to any great extent from technology. In that case, robots may take our jobs, but instead of the benefits from productivity growth being passed along in higher wages and lower prices, as was true in past decades, the benefits go to minority of well-situated individuals. Continue reading
Posters, films & books – more ways to widen the breast cancer risk-factor debate this October
From Pink to Prevention activities & toolkit this Breast Cancer Prevention Month
Dear friends, supporters and colleagues,
As we find ourselves mid-way through the global fundraising phenomena that is Breast Cancer Awareness Month, we ask are environmental and occupational links to the disease ‘an elephant in the room’?
We want to draw attention to a breast cancer narrative that is excluded from the ‘pink’ limelight.
For decades now, scientists and activists alike have argued that the persistent exclusion of environmental and occupational risk factors for breast cancer (eg carcinogens and hormone disrupting chemicals) by government, breast cancer charities and industry is, at the very least baffling and, at worst, obstructing a basic public health right to know. We argue that the time has come for policy-makers to explain why they are refusing to acknowledge the evidence that links these risk factors to breast cancer.
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We can’t afford to have war with Russia
I don’t think there’s much question about it. Even if they think it’s unlikely, Russia thinks war is possible enough that steps are required.
Citing routine drills, Russia has even moved missiles within striking range of NATO targets, into the Kaliningrad enclave bordering Poland and Lithuania.
And,
Meanwhile, CNN informs us that:
“Moscow abruptly left a nuclear security pact, citing U.S. aggression, and moved nuclear-capable Iskandar missiles to the edge of NATO territory in Europe. Its officials have openly raised the possible use of nuclear weapons.”
It would take black Americans two hundred and twenty-eight years to have as much wealth as white Americans have today
Everyone knows that wealth is unequally distributed. The work of Thomas Piketty has made this a mainstream concern. But the magnitude of the gap between white and black Americans is on a different scale. According to a recent report from two progressive think tanks, CFED and the Institute for Policy Studies, white households own, on average, seven times as much wealth as African-American households (and six times as much as Latino ones). The Forbes 100 billionaires are collectively as rich as all black Americans combined. At current growth rates, it would take black Americans two hundred and twenty-eight years to have as much wealth as white Americans have today.
Some of the reasons are clear: the unemployment rate among black Americans is roughly twice that of whites, and black people earn, on average, between twelve and twenty-two per cent less than white people with similar education and experience. But the wealth gap between black and white Americans is much bigger than the income gap, thanks to a toxic combination of institutionalized discrimination, persistent racism, and policies that amplify inequality. As Thomas Shapiro, a sociologist at Brandeis and the co-author of the seminal book “Black Wealth/White Wealth,” told me, “History and legacy created the racial gap. Policies have maintained it.” Together, they contribute to what he’s called “the hidden cost of being African-American.” Continue reading
Inequality and democracy
Of the features of modern society that exacerbate that fear and threaten that hope, the distribution of wealth may not be the most important. Money matters to people, but status matters more, and precisely because status is something you cannot buy. Status is related to identity as much as it is to income. It is also, unfortunately, a zero-sum game. The struggles over status are socially divisive, and they can resemble class warfare.
Basic Income for India
First, any universal programme is expensive.
For example, if we were to give every adult exactly the amount of income that defines the poverty line, which would ensure that everyone would be brought above the poverty line, calculations suggest the bill would amount to 11% of the GDP (Gross Domestic Product). This is just a hypothetical example. One can, of course, offer a lower amount per person that would be more affordable.
However, in this context, a sense of perspective is needed in discussing expenditures on programmes aimed at the poor, who by official estimates, constitute 30% of the population. Calculations suggest that if we take just twice the amounts that define the poverty line, almost 80% of the population lives below that.
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CAAT: UK government works ‘hand in glove’ with arms firms
The British government and the UK arms industry have a “politically intimate and hugely compromising relationship” that sees government officials working “hand in glove” with companies promoting weapons exports, according to campaigners who have tracked thousands of meetings between officials and arms trade representatives.
Officials from the government’s dedicated arms export department, the Defence and Security Organisation (DSO), attended more than 1,000 meetings since the 2010 election – more than a third of all meetings recorded by the Campaign Against Arms Trade (CAAT), which has published data on contact between the government and the arms industry.
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Obama administration has sold more than $115 billion in weapons to the Saudi kingdom
In addition to providing Saudi Arabia with intelligence and flying refueling missions for its air force, the United States has enabled the bombing campaign by supplying $20 billion in weapons over the past 18 months. In total, President Obama has sold more than $115 billion in weapons to the Saudi kingdom – more than any other president.
27 U.S. Senators Rebel Against Arming Saudi Arabia
https://theintercept.com/2016/09/21/27-u-s-senators-rebel-against-arming-saudi-arabia/
Cost of Wars at $5 trillion
THE TOTAL U.S. budgetary cost of war since 2001 is $4.79 trillion, according to a report released this week from Brown University’s Watson Institute. That’s the highest estimate yet.
Neta Crawford of Boston University, the author of the report, included interest on borrowing, future veterans needs, and the cost of homeland security in her calculations.
The amount of $4.79 trillion, “so large as to be almost incomprehensible,” she writes, adds up like this:
- The wars in Iraq, Afghanistan, Pakistan, Syria, and other overseas operations already cost $1.7 trillion between 2001 and August 2016 with $103 billion more requested for 2017
- Homeland Security terrorism prevention costs from 2001 to 2016 were $548 billion.
- The estimated DOD base budget was $733 billion and veterans spending was $213 billion.
- Interest incurred on borrowing for wars was $453 billion.
- Estimated future costs for veterans’ medical needs until the year 2053 is $1 trillion.
- And the amounts the DOD, State Department, and Homeland Security have requested for 2017 ($103 billion).
Tipping Point North South 