Universal Unconditional Income in the EU and Russia

Unconditional income is a form of social security system in which all citizens and residents of the country regularly receive a certain amount of money from the state or from any other public organization in addition to possible earnings. If the funds so provided are less than the minimum subsistence level, then it is considered to be partial. Unconditional income is a key component of many models of market socialism. The apologists of the concept are Philip Van Parijs, Ailsa McKay, Andre Gortz, Hillel Steiner, Peter Vallentyne and Guy Standing.

Historical roots

The discussion about the need to introduce universal unconditional income began in Europe in the 1970s and 1980s. It was partly due to the debates in the US and Canada. The issue gradually began to be discussed in all developed countries, Latin America, the Middle East and even in some countries in Africa and Asia. The Permanent Fund of Alaska is considered one of the best examples of payment of unconditional income, albeit partial. Similar social security systems exist in Brazil, Macao and Iran. Pilot projects of basic income were realized in the USA and Canada in the 1960s and 1970s, Namibia (since 2008) and in India (since 2010). In Europe, there are political decisions to try to implement them in France, the Netherlands and Finland. In 2016, Switzerland held a referendum on this issue, but 77% of people voted against the introduction of unconditional income.

Sources of financing

When Milton Friedman and other economists first proposed a negative income tax, it was thought that a proportional system would reduce bureaucracy and eventually lead to guaranteed income for every resident. Supporters of this concept were "green", some socialists, feminists and so-called pirate parties. Representatives of various economic schools offered to finance this project in different ways. Socialists believed that to provide universal unconditional income can be at the expense of public ownership of the means of production and natural resources. "Right", for example, Friedman, believed that you only need to introduce a proportional system of taxation. Green offered their own way. They believe that unconditional income can be financed through environmental taxes. Among alternative sources of unconditional income for all, one can name the system of progressive VAT and monetary reform.

Pilot programs

The most successful example of that at least partial unconditional income can be introduced is the Permanent Fund of Alaska. Similarly, the Bolsa Familia system for poor families in Brazil operates. Other pilot programs include:

• Experiments with negative income tax in the US and Canada in the 1960s and 1970s.
• The project in Namibia, which began in 2008.
• Experiment in Brazil since 2008.
• The Indian project, which began in 2011.
• Give Directly in Kenya and Uganda. It involves sending charitable assistance by mobile phones to people living in extreme poverty.
• A study in the rural areas of North Carolina in the United States.

In Germany, the project involves 26 people, each of whom the government pays 1000 euros a month. From 2017 to 2019, each resident of Finland will also be paid a certain amount of money in the experiment.

Bulgaria

At the end of March 2013, The Blue Bird Foundation learned about the "European residents initiative for unconditional income" and decided to join the campaign. Tony Badzhdarov offered a comprehensive model for Bulgaria. The source of funding for it should serve as a sovereign currency, returnable VAT and excise duty. The team has created its own website and pages in social networks. The campaign was advertised on the national radio and in the metro. The Foundation managed to get support from several associations and trade unions. The initiative in online voting was supported by a record number of people. In December 2014, the first political party appeared, which included the introduction of unconditional income in its program. It is called the "Bulgarian Union for Direct Democracy" and is fighting for the right of every person to a decent life.

United Kingdom

In the United Kingdom, an unconditional base income for every citizen is a long time topic for discussion. For him acted even Dennis Milner in the 1920s. Today, most British political parties either do not even consider this idea, or oppose it. However, there are supporters of unconditional income. "The Scottish National Party" at the conference in the spring of 2016 advocated the replacement of existing social security. Some other political associations also came forward for it. Among them: "green", Scottish socialists and "pirates" of the United Kingdom. In February 2016, John McDonnell said that the introduction of basic income is being considered by the Labor Party.

Germany

Germany also since the early 1980s has been thinking about introducing an unconditional income. Germany has only recently begun to implement the project, which involves 26 people. For many years, for the introduction of unconditional income in the country were only some scientists, for example, Klaus Offe. However, after the reforms proposed by Gerhard Schroeder's office in 2003-2005, more supporters of this concept appeared in Germany. In 2009, at the meeting of the parliament, Susanna Weist - a housewife, whose petition received 52973 votes, appeared. In 2010, several demonstrations for unconditional income were held in Germany, the largest in Berlin. Since 2011, the "Pirate Party" has started to speak "for". Individual members of other political associations also support the concept of unconditional income.

Netherlands

Unconditional revenue was vigorously discussed from 1970 to 1990. Initially, the discussion was initiated by economist Leo Jansen in 1975. The introduction of unconditional income was included in the pre-election program of the Political Party of Radicals. In the last 10 years, the issue has been raised only once. In 2006, the leader of the "green" Femke Halsema included the introduction of unconditional income in his election program. In the city of Utrecht, the fourth most populous country in the country, a pilot project began. However, unconditional income must be paid only to groups of people who already receive benefits. About 30 cities are currently considering the possibility of such a project.

Unconditional Income: Finland

"Center", one of the four main political parties of the country, like the "Left Alliance" and the "Green League", stands for the introduction of this concept. In May 2015, the government decided to introduce an unconditional income. Finland will be the first country in which everyone will receive for two years a certain amount of money, starting in 2017.

France

Unconditional basic income has been viewed as a concept since the 1970s. However, only in 2015 the regional parliament of Aquitaine voted for its implementation. In January 2016, a public advisory body on digital issues published a report in which he recommends an experiment. The survey of the population showed that the majority of the population favored the payment of unconditional basic income to all citizens.

Switzerland: a referendum

Unconditional basic income has long been discussed in the country. In Switzerland there is the association BIEN-Switzerland and Grundeinkommen, which are in favor of implementing this concept. In 2006, sociologist Jean Ziegler called unconditional income in Switzerland one of the most progressive ideas. In 2008, Daniel Honey and Enno Schmidt shot a film in which they tried to explain the benefits of implementing this concept. It was watched by more than 400 thousand people. In many ways thanks to him, even more people in the German and French-speaking countries became advocates of the idea. In April 2012, unconditional income in Switzerland became the subject of a popular legislative initiative. The campaign managed to collect the necessary 126 thousand signatures. The referendum in Switzerland on unconditional income was held on June 5, 2016. More than 77% of residents refused to receive 2500 francs a month.

Russia

Many residents of the Russian Federation were shocked by the news that the Swiss refused to receive money simply. At once there was a question, whether the unconditional income in Russia is possible? Among the shortcomings of such a system of social security is not only an increase in the tax burden on the inhabitants of the country and a decrease in motivation to work, but also an increase in the number of immigrants. In Switzerland they proposed to introduce an unconditional income of 2500 francs, which is approximately half the average wage. If we use this calculation methodology for Russia, then here it would be about 10,000 rubles. From July 1, the minimum wage will be only 7.5 thousand, the cost of living is even less. Therefore, there are many people who want to "sit at home." According to experts, the introduction of unconditional income in Russia can only stimulate inflation, because payments will not be personalized and aimed at the most vulnerable segments of the population. However, there is another point of view. Some experts believe that the introduction of unconditional income will allow people to engage in what is their vocation. And this can have huge positive consequences in the long run. Perhaps people will start doing more fundamental research. And Russia will be waiting for rapid technological progress. Or unconditional income can help people to engage in creativity more. Thus, it is quite appropriate to conduct an experiment in Russia within a single city or a target group.

Criticism

The Commission of the German Parliament discussed the introduction of universal unconditional income and found the project unworkable. She put forward the following arguments:

• It will cause a significant reduction in motivation to work for ordinary citizens, which, in turn, will lead to unpredictable consequences for the economy.
• It will require a complete restructuring of taxation, social security and pension fund, which will lead to significant costs.
• The existing system in Germany is more effective because it is more personalized. The amount of assistance provided is not strictly defined and depends on the person's financial situation. For some socially unprotected groups, unconditional income may not be enough for life.
• The implementation of this project will lead to a significant influx of immigrants.
• It will entail the expansion of the shadow economy.
• The corresponding increase in taxes will lead to greater inequality due to a jump in prices for basic products, which will worsen the financial situation of poor people.
• While in Germany, a real way is not found to finance the introduction of universal unconditional income.

As we see, for Germany and many other countries, including Russia, the question remains open.