In times of Coronavirus: UBI is an idea whose time has finally come

In times of Coronavirus: UBI is an idea whose time has finally come

The solution to poverty is to abolish it directly by a now widely discussed measure: the guaranteed income. … We are likely to find that the problems of housing and education, instead of preceding the elimination of poverty, will themselves be affected if poverty is first abolished.

Martin Luther King Jr., Where Do We Go From Here: Chaos or Community? (1968)

We hope this email finds you, and all those you care for, safe and well.

Many of us also have family, friends and colleagues in many different parts of the world and, coupled with the ever rising number of cases here in the UK/Europe/USA, the news about the spread of Coronavirus (COVID-19) across the global south, for many of us, will be even more worrying.

It is becoming more apparent with every passing day that the Coronavirus pandemic is holding a mirror up to every single aspect of human life and activity and that this scrutiny leaves much of humanity’s 21st century day to day behaviour sorely wanting. The ultimate damning evidence of this is the millions upon millions of our fellow sisters and brothers in the global south who don’t even have access to the basic protective shield of soap and water as this pandemic rages across the globe.

It’s not as if we didn’t know the system was long broken. We did. The evidence has been piling up for years and years. However, global inequality and the unstoppable ascendency of the tax evading greedy 1%; the harm of agribusiness and factory farming at one end and illegal poaching at the other; big pharma’s monopolies and the erosion of the primacy of publicly funded healthcare and research; and finally, ultimately, climate catastrophe; none of this was enough to force the hands of the political class, financial and corporate sectors to change course and ‘do the right thing’.
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70% of the UK’s working population “chronically broke”

Economic insecurity has become the “new normal” in the UK with at least 70% of the UK’s working population “chronically broke”, according to a study by the thinktank the Royal Society of Arts.

Thriving, striving or just about surviving, the RSA/Populus survey of more than 2,000 workers, found that while about 30% of respondents said they lived comfortably, 40% said their finances were permanently precarious. The remaining 30% said they were not managing to get by. Continue reading

Would Gandhi give the go-ahead to the UBI

India is nearly done building the plumbing to enable such a system by connecting the Aadhaar-based biometric ID system to individual bank accounts. It’s already replaced LPG gas canister subsidies with cash, a program that has 150 million beneficiaries and is the now the world’s largest cash transfer program. So could India take this example to its logical conclusion and replace all welfare benefits with UBI? (GiveDirectly is asking a similar question in a bold 10-year $30 million experiment in Kenya.)

The Survey’s assessment begins with quotes from Mahatma Gandhi suggesting both support and objection to the principles of UBI. The chapter then methodically addresses the conceptual pros (e.g., justice, equity, agency, efficiency) and potential cons (e.g., labor disincentives, moral hazard, political objections). It attempts various modeling, including a rough estimate that cutting national poverty in half via UBI would cost just 1.5 percent of GDP, less than the subsidy bill in the 2016-17 budget. For the data nerds, there are seven (!) appendices explaining all the estimates and calculations. Continue reading