Basic Income. Thoughts?
I have, for a while, been pondering how to disrupt the trend of growing imbalance between wages and profits/professional fees... At some point there really does need to be a bit of a counter-offensive in the class war that's been waged for the last forty years.
And while unionism is nice, it only applies to those in the union, and then there are often disparites between those in the union...
And while a minimum wage hike is also nice, and also necessary (though in the 15 years since I started working, my province's minimum wage has at least managed to gain 17.5% on inflation, here's to small mercies...) it's not going to do much when an employer wants to take wages down to well-over minimum wage but well less than the professional wage workers were getting...
And while defending industries is important, sometimes, yes, mechanization can do the job more cheaply and improve overall utility, but try telling that to the person who just lost their job to a silicon scab.
We need a Guaranteed Annual Income. 25% of per-capita GDP, half linked to nominal GDP, half linked to inflation. And we need to raise income, corporate, estate, and fuel-excise taxes to cover the difference. I'll explain my reasons for the partial indexation in a bit... but let's start with the reasons this is good:
1. The level is just above the absolute poverty line.
Right now the GAI would work out to $1065 a month. Even the Fraser Institute, which I haven't got a lot of time for, says a single person needs a little more than $10K a year to meet bare-bones-subsistence... enough to keep the lights on and the milk bought and the clothes clean and so forth... it's not so high that anyone would be pleased to live off of it, but they can actually live off of it, which is more than you can say for any long-term income support program currently in operation.
2. It would serve as another form of regional equalization.
Net transfers to poorer people would be in poorer regions. The improved consumer spending alone would be stimulative.
3. It would mitigate the effects of [insert your]ism.
For example, I'd sooner see this passed than C-389 (though I want to see both passed) because it's an iron-clad safetynet against discrimination which is often difficult to prove.
4. An end to welfare paternalism.
Hell, it could be an end to arts-funding paternalism too. If you want to become a starving artist: The funding's there. If you want to write that novel, or perfect your better mousetrap, or go back to school? Ditto.
5. Eliminates survival work...
Of any kind. Sure, there'd be survival room-mate having on a grand-a-month, but it sort of eliminates the artificial distinctions between sex work and other forms of survival income.
6. Creates property tax room for municipalities.
The GAI for minors could be funneled to the school of their choce, with 20% permanently endowing the public school system, (i.e. can't touch the principal... no, the other principal ^^; ) 20% as subsidized healthy-food vouchers, and the remaining 60% to pay for classes at the school of their choice. So we'd create the tax room to fund needed local projects like infrastructure and public transit, while providing those who dislike the public system vouchers that don't actually drain the public school system's resources... which brings me to reason 7 in my list of [I haven't decided yet.]
7. It's palatable to much of the right-wing.
Sure, they won't like seeing income tax go up 20%, but they will like an end to welfare programs, to seeing the working poor pay a portion of their income in taxes, to seeing a radical shift in arts funding, to seeing a property tax cut, to a reduction in bureaucracy. The plan can be passed because it hits a lot of issues in the neo-liberal wheelhouse. That's why Stanfield and Nixon both tried proposing one roughly as generous.
8. We can still direct some responsible buying...
Say, a 5 or 10% discount unless the money's used for crown corporation basics where available, such as housing, green utilities, telecommunications, education... Not enough to pinch a budget, but enough to incentivize support for government initiatives that will transform our relationship to production.
9. Partial indexing will prove macroeconomically stabilizing.
If the economy suffers a recession, payments as a percentage of GDP will rise by half the size of the economy's decline. If the economy grows too rapidly, the proportional decrease in payments will slow the growth back to manageable levels, while still ensuring that a rising tide lifts all boats. As a result...
10. Productivity will become politically important, and carry universal benefit.
It will matter if a company figures out how to do something cheaper, it will be less politically difficult, while at the same time less lucrative, to simply end less productive work... the discussion will shift to utility from work. Further a GAI will disincentivize economically marginal work. Employees who don't have to work a borderline non-productive job just to stay employed will be less inclined to do so... management will be less able to exploit workers with the fear of poverty... and for that matter, a GAI will serve as a standing strike-fund.
Anyway, that's off the top of my head. Hope this kicks off some discussion.
Comments
Very true. It will, however make broad-based change possible.
Apparently, reading your full post, it will address, in whole or in part, every single problem facing Canadians, from war to the arts to the environment to mental illness to housing to shitty jobs to working conditions...
But it's not a "panacea".
And the megacapitalists who run this society are going to enact legislation to give everyone free money so that no one lacks for necessities, and furthermore, they can abandon their employment any time they feel like it because they have enough to live on without having to sell their labour power to anyone.
I'd like to use the words "delusional" and "delirious" and "diversionary". Would that be deemed as rude?
So you don't think it has a chance of happening due to the class implications of it, but you're still opposed? >:P
We live in a capitalist system. I tend to agree with Marx that the system is doomed. If it can't survive without growth as we've historically defined growth then it is definitely doomed. But that's not what this is about. I think most of the social programs and worker rights legislation you've talked about are great, but they don't undermine capitalism at all, and in fact may serve to buttress it. They function as adjuncts to capitalism at best. A GAI is also not an attack on capitalism per se. What it is is an attempt to spread capital around. As long as we live in a capitalist system, if we care at all about inequality we need to spread capital around.
No, not overmuch, though the first two tend to usually hit my eyes in connection with cissexists, that does nothing to blunt the utility or legitimacy of the word or its current user.
In response, however, I'd like to note that it's your belief that simultaneously radical capitalists will oppose a radical programme of wealth distribution and exploit said programme to dismantle the state. And instead your programme is a working-class uprising that will lead to unionization and employment rates of one-hundred percent, and then, and only then, will there be national embrace of all the social needs, which you refuse to list because the majority decides what is and isn't a right (how well that's worked in the past) but surely every province will embrace free university (unless the student comes from another province, how conveniently that special carve-out doesn't get mentioned when Quebec's education policy comes up) and free daycare and single-payer dentistry and food security and such... despite the pushback that's usually based on the fact that almost nobody is able to access most of these social benefits and thus no political consensus exists to support them.
Given this, I'm tempted to use the words, "doctrinaire," "[cognitively] dissonant," and, "d-..." Well the last one doesn't make it into use with polite company, so shall we go with "obstinate?"
Also Unionist, I didn't say a GAI would address mental illness. I said that the problem of homelessness would then become one of primarily mental illness.
Also Unionist, I didn't say a GAI would address mental illness. I said that the problem of homelessness would then become one of primarily mental illness.
True - I read that one too quickly.
PS: I'm not a cissexist (don't think I am anyway) - and quite the contrary, I've been personally involved in a couple of very tough situations which ended well (more or less) and with some fellow workers learning to look at themselves and their prejudices differently. I know you didn't accuse me of that, but I'm sensitive to your thesis about "majority" not being the best criterion for determining fundamental issues of human rights. But ultimately, and I hope you'll agree, we must work tirelessly to bring the majority to such an understanding, lest our small steps forward turn out to be followed by big steps backwards.
I didn't think you were a cissexist, I just wanted to note the irony. Usually when someone tries to call me deluded, it's because I refuse to be degendered. I knew that wasn't the case, my brain went into "Funny story..." mode.
And yes, it's important to build a political consensus in favour of a more equitable society. That's why I'm for the most broadly-based entitlements. If the majority of people benefit and come to rely on them, then they enjoy more support. So instead of university funding and social housing, you combine the two in terms of funding (but still separate them in terms of maintaining dual streams of public provision.)
And if we make inter-program subsidy a thing of the past, the numbers I'm getting from the Delta Cost Project, based on inflated American university program costs, put the cost of a full bachelor's degree well within the range of the current GAI, (not to mention provinces can still feel free to make up any shortfall that arises.)
Take our 1065 a month - $100 nutritional subsity - $420 single-payer daycare leaves us $545 a month, for five years, then factor in CPP's historic 4.2% inflation-adusted return, and we have $62,089 in 2011 dollars at age 18. That's far more than enough to completely wipe out tuition on a four-year degree, plus the living expenses are covered with GAI for however many years a student attends university.
So we can have free, publicly-funded, university... unless someone's in a very material-intensive seven-year program. And those can be bridged with student loans that are written off with public service in the relevant field.
We can do the same with social housing, putting together units at a cost of that $62,089 (or maybe a little more, financed by part of GAI) for those who aren't going to be able to enjoy the 80% wage premium that a university education provides...
And if someone's headstrong and decided to opt forr cash, we'll pay that credit out at 70 cents on the dollar, just like we did with private schooling, and use the other 30 percent to endow university and housing programs in proportion to respective numbers.
Also, to illustrate, one of the major short-term costs of post-secondary education is the foregone wages and living expenses. I have three years of an economics degree wrapped up. If I had to save for an unsubsidized tuition instead of a subsidized tution and living expenses, I'd be about $4000 closer to getting that degree. A GAI will make it easier for the working poor to get a degree, not harder.
Anyway, those are my clarifications on education & social housing policy.
(Edit: Forgot to carry a 1 earlier, and calculated off of a $645/mo education plan contribution. That's been fixed now.)
So you don't think it has a chance of happening due to the class implications of it, but you're still opposed? >:P
We live in a capitalist system. I tend to agree with Marx that the system is doomed. If it can't survive without growth as we've historically defined growth then it is definitely doomed. But that's not what this is about. I think most of the social programs and worker rights legislation you've talked about are great, but they don't undermine capitalism at all, and in fact may serve to buttress it. They function as adjuncts to capitalism at best. A GAI is also not an attack on capitalism per se. What it is is an attempt to spread capital around. As long as we live in a capitalist system, if we care at all about inequality we need to spread capital around.
gosh. well said.
Nonsense, Merowe. "Capital" isn't money that is given to individuals to spend on consumer goods and services. "Capital" is wealth that is invested in means of production.
I fully support "spreading capital around" - i.e., democratizing the ownership of factories and mines and telecommunications networks and financial institutions. Taking capital out of the hands of a handful of capitalists and putting it all in the control of working people.
But this GAI proposal doesn't even hint at that. It's about leaving the ultra-rich in charge of everything, and guaranteeing a sub-poverty-level cheque to every individual, which is higher than welfare and doesn't have earnings carved out of it - and leaving individuals to decide which services they need, cafeteria style. Instead of people taking control of society and ensuring the provision of goods and services to everyone.
Stephen Harper has already pioneered this notion, by giving everyone $100 a month for each kid under 6, and wiping out any notion of free or affordable child care, publicly run and delivered. He could easily be persuaded to do the same for education (a lump sum for every individual), or health care (likewise - not everyone needs that expensive stuff, they could spend the money as they please), or maybe just one big lump sum to cover everything. Whoops, that's GAI!
It's toxic. It's welfare, under a different name, and it's a ready-made pretext to reduce government and public services to nothing.
Non, merci.
Nonsense, Merowe. "Capital" isn't money that is given to individuals to spend on consumer goods and services. "Capital" is wealth that is invested in means of production.
I think that was kapital's main purpose ... in another era of capitalism - industrial capitalism. Money invested in production of commodities produces profit - M-C-M.
Today, however, corporations and investors are sitting on piles of cash regardless of neoliberal corporate tax cut incentives to get capital flowing and creating jobs. Under the "new" liberal capitalism the formula for kapital has become, simply, M-M. Money is invested interbanksistentially, in money, bonds and stock markets apparently to produce more money, ie. financial engineering a la neoliberal ideology since approx. the late 1980s.
And so do I support ownership of the means of production. But what if some large percentage of the means of production have become dilapidated rust and decay? We don't need no pig in a poke pawned off on us by capital for more than it's worth, otherwise buying the means becomes just another lesson in corporate welfare with taxpayers taking rusted and decaying machinery and equipment off their hands and paying in excess of what it's worth.
In that case, going directly to the heart of the matter and nationalising profits and raising corporate tax rates would avoid forcing taxpayers to buy numerous obsolete factories and associated tech and equipment. I think that in certain cases it would be better if the taxpayers started anew and started competing with private enterprise directly without buying their leftover lemons.
This is an interesting topic to have followed. Thanks Unionist for your words as at first I found it hard to see the pitfalls. And likewise thanks to RTTG and Boze for the other side of the story. For some reason, I think there's a bridge we could all use?
Unionist, to put a pre school-age child in daycare costs $600 a month. That's why the Harper plan is no solution. Because it doesn't adequately cover the costs of the thing it's supposed to cover.
To put a person in adequate shared housing costs $400-500 a month. Food costs about $300 a month if you're eating lots of fresh produce, and there are miscellany (clothing, transportation, telecommunications, furniture) that cost another $200-300.
If Harper's plan was a $600 a month grant, instead of a subsidy to stay-at-home parents, then you wouldn't hear any real complaint. It's that he doesn't cover the problem and calls it victory.
And if you haven't lived on $1060 a month with a roommate, I suggest you try it some time. It's pretty damn doable. This isn't 'sub-poverty' It's sub low-income-cutoff, which is based on median wage, not absolute need (Which does increase as living standards increase)
If you don't have to maintain a vehicle, and you don't if you don't have to have a job, eleven hundred bucks goes a long way... longer than any long-term income support goes at the moment, save the extra twenty bucks AISH and other disability programs provide. I'm sure the provinces can maintain a top-up until the economy grows another five percent and that slack is taken up by increases in the real value of a GAI.
Unionist, if you can't see that improving income security will aid in low-income savings and capital formation... well... you would've fit right in with most of my economics class, full of budding neo-liberals who thought that lifetime earnings were a good method for determining tax liability, or that minimum wage harmed the working poor, or that the kind of over-amped economy needed more corporate tax cuts... When you make people more secure, they become more adventurous, able to put ambition above fear. It's no surprise that the period of left-wing ascendancy coincided with the highest levels of income security and worker income as a percentage of the economy.
As to the political fight with the right-wing over whether we'll have public purpose once every Canadian is guaranteed a living income? You may say, "Non, merci." I shall maintain, however, that establishing income redistribution as a bedrock of the Canadian political consensus... detatching ourselves from a network of professional-class subsidies and moving to a broader definition of need and worthiness?
C'est le beau risque.
Consider, also, that one of the major means by which wealth and property have been transferred upwards has been bankruptcy and foreclosure especially during times of depression. Look at the situation in Greece. It's a fire sale of public assets but also private assets, as people are losing their homes and businesses. It's possibly the most dramatic and rapid example of mass-scale transfers of wealth upwards in modern European history, and right-wing forces say it's a great thing and will lead to productive investment. Maybe more than anywhere else in the world right now, Greece desperately needs a GAI.
And if it's the accumulation of capital someone's worried about, treating inheritances or international transfers of assets as income for tax purposes might help. And yes, that includes the poor, millionaire, farmers. (Though we can amortize any amounts owing at 5% for those with illiquid assets)
As a concession to the centre, we could take 80 as a multiplier, so that inheritance taxes would represent the approximate potential income per year... which would mean 30% of the first four million was taxed, 45% of the next four million, and 60% of everything after eight million.
With the average inheritance expected to rise to roughly $300,000 within the decade, and an annual death rate of about 250,000, we'd be looking at revenues of 22.5 Billion a year, or about 1.45% of GDP
Raising corporate taxes to 30% from their current 15% would raise another 1.5% of GDP
A carbon tax of $50 a tonne would raise about $800 per person, or $27.8 Billion, or 1.75% of GDP
Add that to the 5.5% of GDP that comes from eliminating federal-to-person transfers including the hated baby bonus, and the 3.6% of GDP of education funding that would move from a local and provincial taxation method of revenue rasing to a federal per-student grand, (once again, not eliminating education funding, but rather, making the funding more student-dependent instead of tax-base-dependent) and now we're up to 13.8% of GDP... just have to raise 11.2% more to make it revenue neutral.
Could trim 0.5% of GDP, or a third, off of defense spending... (Gee, this part of the problem would be so much easier in the US, but at any rate, leaving 10.7%)
National average of per capita social services spending (again, giving cash to people for things they need, if they ask someone with a social work degree real good) was $1721 in 2007. Let's round down to $1600, to be more than sure, and we're looking at savings of about $55 Billion, or 3.5% of GDP. That leaves us with 6.2% of GDP to raise... I'm thinking we won't even need a 30% bottom rate, but for income tax, the effects need to be scored, so I can't be 100% certain. Right now it's looking like the equivalent of a 20% across-the-board income tax increase would more than make up the difference, since wages account for a bit more than 40% of GDP (yeah, that's a shockingly low number) that should raise 8%... and we're home. And as GDP increases, revenues will grow faster than expenditures because of the partial indexation (half GDP, half inflation) of GAI, so we'll have fiscal room open up to spend on... you guessed it, other social needs.
If I lost anyone in budgetese back there, I apologize, but the fact of the matter remains, with a couple of targeted tax increases (raising corporate taxes by 15 points instead of the NDP's timid 1.5 points over 2012 rates, introducing carbon and inheritance taxes) we could more-or-less pay for a GAI without busting the budget or taxing working-class people back to the stone age. (Sorry, West Wing Fan)
RTTG, you refuse to speak to the real world situation of a system that is now privatizing all the social gains that were made possible in the post-war period by an expanding GDP and the availability of resources. That has all changed, and capital is being invested in the privatization process to create the only "safe" market investments for your investment portfolio.
It will be the limits of growth on a finite planet, discussed in depth sometime before your birth, and not discussed now out of fear, that will dictate the affordability of your scheme, an unworkable creature of the 60s.
Unionist, to put a pre school-age child in daycare costs $600 a month. That's why the Harper plan is no solution. Because it doesn't adequately cover the costs of the thing it's supposed to cover.
No, that's absolutely wrong.
It's no solution because it doesn't have to be spent on child care, whose primary purpose is to allow parents to work.
And because it doesn't create child care spaces.
It's a sop, a fraud, to justify the retreat from a national child care plan.
It's just like your concept - "here's money, spend it on anything you want - because we can't develop a social consensus on what you need".
You look at Harper's plan and decide it would be better if it involved money - just as Olivia Chow criticized it for not being tax deductible. The solution to everything is "more money".
We are light years apart, RTTG. That's ok, but at least it would be better if we strove to understand each other's views.
Could I be permited to make a slightly OT comment?
The Quebec child-care system has much lower standards than the guidelines here on PEI (and most other provinces). For example infants (generally considered under age 2) have a 1:3 ratio of babies to staff here, but in Quebec it is 1:5. that is outrageous and I would have been horrified if my daughter had been in such a situation. If going down to 7$ a day requires such a drop in standards and quality I want no part of it.
If we ever do get a national child care program, it should not be modelled around the Quebec standards, as in my view they are not high enough. Five infants to one staff member is ridiculous.
Unionist, to put a pre school-age child in daycare costs $600 a month. That's why the Harper plan is no solution. Because it doesn't adequately cover the costs of the thing it's supposed to cover.
No, that's absolutely wrong.
It's no solution because it doesn't have to be spent on child care, whose primary purpose is to allow parents to work.
And because it doesn't create child care spaces.
It's a sop, a fraud, to justify the retreat from a national child care plan.
It's just like your concept - "here's money, spend it on anything you want - because we can't develop a social consensus on what you need".
You look at Harper's plan and decide it would be better if it involved money - just as Olivia Chow criticized it for not being tax deductible. The solution to everything is "more money".
We are light years apart, RTTG. That's ok, but at least it would be better if we strove to understand each other's views.
The purpose of a national child care plan should not be "to allow parents to work." It should be to increase freedom. To give them the option to work, so that they are not, in your words, "chained to the kitchen," or to not work and still have access to a decent standard of living for themselves and their children, beyond the paltry amount provided by social assistance. Every parent and child should be entitled, yes, entitled to a decent standard of living regardless of whether the parent chooses to seek employment. If you give them MONEY then they can do EITHER. And your problem with this is...the dread of subsidizing idleness, I'm sure.
If you put a thousand dollar cheque in every person's hand tomorrow and every month from now on that would most definitely create child care spaces Unionist, and it would create a whole lot more than that. WE DO NOT NEED THE STATE TO CREATE CHILD CARE SPACES, JUST GIVE PARENTS MONEY AND THEY WILL DO IT BETTER. They will have TIME to do it better and they will have MONEY to do it as well. We don't need top-down solutions. A whole civil society is dissolving as we speak because people have less and less money and little energy to fill their little free time with more than television and arguing on internet message boards, lol. It doesn't have to be that way - begin the redistribution of wealth downwards immediately!!!
I like it. I don't think the right wing would openly disagree with it. The right wing decision makers at the top just don't want to talk about it all. And I think those within the right near the middle and bottom organizational layers find out sooner than later that real solutions for poverty reduction are just not on the party's agenda. Their reasons for maintaining poverty and workers desperation levels are more ideologically driven than by economics. And they tend not to want to debate ideology in the light of day.
Been suspicious of GAI since Barry Goldwater proposed it in a 1960s election, back in the days of great economic growth. Nothing Steve has done in the past eight months reassures me about "The State" assuming direct responsibility in the next little while. And the figures about affordability would be hard tr social democrats to sell on the brink of depression. No need to explain why it would be "good." But I thiink you would need a command economy and a world ready to accept such singular economic sovereignty.
We have centrally planned economies today. Governments in the English speaking countries essentially do things that most of their citizens disagree with, from bombing and invading other countries to spending billions on socialism for rich people. The rich go with caps in hand begging for taxpayer handouts all the time. Corporations and the rich beg/demand, and they receive in abundance.
We can't have full employment with today's obsolete economies. Scientists will tell us it can't happen. But that's not to say that because economies are obsolete that poverty reduction is not feasible. It is. Other rich first world countries have proven it.
I said this well over a year ago:
http://rabble.ca/comment/1197766
Universal basic income fails to address:
1) Structural and cyclical unemployment
2) Desire to work and avoid the stigma of not doing something
3) Inevitable downward pressure on wages as a result of implementation
4) Privatization of the social wage (welfare being substituted)
5) Class origins of political advocacy and beneficiaries (working-class vs. lumpen)
I would think that any basic income proposal could, at best, be advanced only when you've got a social-democratic condition combining Scandinavia on welfare, Germany on co-determination, France on labour laws, and Minsky's program.
Re. Minsky: Basically, instead of "working for your dole," compulsory "workfare," and means-testing, there's a huge voluntary ELR program on the order of $500-800 billion (based on the US economy here) where in anybody can go in and do childcare, clean streets, etc. plus the usual stunts for public works for a living wage. This goes beyond slogans for "public works" because of the service job component.
There is debate right now as to whether the living wage would be universal or whether there would be different levels above (i.e., riskier jobs in ELR would get paid more).
As well as setting an effective minimum wage, ELR can also set an effective maximum workweek.
The more libertarian of the right wing can definitely get on board with a basic income. Google "Charles Murray" "In Our Hands" to see. The main driver of his conclusion appears to be that vast swathes of existing bureaucracy would be obsolete overnight. I think he's too optimistic - just because a bureaucracy serves no useful purpose does _not_ mean it will disappear.
Jacob, the income effect would reduce the willingness of marginalized workers to supply labour. I see a GAI raising wages, not lowering them. A GAI is, among other things, an atomistic strike fund.
And of course a GAI fails to address structural unemployment. That's the idea, to make productivity the focus instead of an even distribution of work hours similar to those in an era when productivity was about one-third of what it is today. We can afford a bit of creative destruction if a layoff doesn't mean penury.
People who desire to work will still be able to work, but a modern late-industrial economy is a war against scarcity, and that war creates casualties, people who are unable to work for reasons other than the paternalistic ones we allow. Look at the trans unemployment rate for example. There are no intergenerational-mobility issues, no incabability to work, but discrimination is subtle and often unprovable in any instance but aggregate. Our current welfare system, for that matter any welfare system based on cultural values instead of entitlements, will only compound that discrimination.
As to the Social Wage? I'm an economist. I view the world in terms of utility. If some company fires all of us and gives us a quarter of its profits, we're better off. We can take our intellect and our ability to create and form our own businesses and economic relationships. What this does is fundamentally change the balance of power between capital and everyone else, ensuring they can only offer mutally beneficial employment freely entered into instead of dysfunctional survival relationships where fear is the motivator of decisions, and thus employees are obligated to accept boilerplate conditions.
As to rewarding good revolutionaries versus the lumpenproletariat? Sorry, as I said above, I oppose paternalism in income support, even if it's progressive and Marxian paternalism. You don't want to subsidize the lumpenproletariat. The right doesn't want to support concientious objectors. Hell, if Michelle Landsberg were the one deciding, I wouldn't be surprised if the incomes were withdrawn from those who transitioned, or in her words, self-mutilated. The crux of a guaranteed income is that we refuse to designate someone as a parasite class, that we say that basic human rights include a sufficient income if it's within the ability of a nation to provide that income. Yes, this means that money will go to people you don't like. So sorry.
Your proposed ELR also politicizes this basic right. I'm sorry, but the whole point of a basic income is that it's classist at best to say that there are people who deserve a basic standard of living and people who don't, just as we do with most medicial care.
I'm talking about an entitlement, for those of you who've forgotten what the word means, because nobody gets rich on their own, and nobody gets poor on their own, even in whatever you may view as your own personal utopia.
Actually, the great thing about this sort of program is that with partial indexation (half to per capita nominal GDP, half to inflation, and that can be CPI or GDP deflator, either's good, though maybe the latter's more ideal.) the program would be ideal to introduce in a sluggish economy. First of all, inter-person transfers cost the government about 5.5% of GDP, and education. which would be well-funded on a per-student basis with a GAI, costs 3.6%, so let's round that to 9% Then in a decent recession, you want a stimulus of about 5-10% of GDP... let's be conservative and say 5% So that leaves us with 11% to raise... maybe an across the board income tax increase of 15%, or even raise the bottom bracket to 25% and start it at dollar one of (non-GAI) income, again, it'd be a net gain to the people in that bracket. (For example, earn 28K a year, pay 7K in taxes, and get 12K bringing your after-tax income to 33K)
Introduce an estate tax and eliminate some investment tax shelters and increase corporate taxes a few percentage points and we're home.
And so you'd have a government running a deficit of 5% of GDP... this year. And then next year, with real growth at a sluggish 1%, you'd have a deficit of 4.5% while the basic income increased in real terms by 0.5%... and so on, so that we'd be in structural surplus after the economy grew by 10%
So we'd have structural surplus with which to pay down the debt, engage in programs of national importance, come to settlements with those nations the crown has wrongly expropriated land and soverignty from who are willing to settle for land and cash and symmetrical citizenship, start an aerospace program now that we can afford it and it won't be used to drop napalm on civilians, endow the arts with material, venue, spaces for production... (the basic income making grants to the artists unnecessary) build up local food production, (like, for example, ringing major cities with hundreds of square miles of greenhouses,) preserving water systems by being able to augment them through desalination technology... Anything, really.
But first a lot of the left (we can win the country on the idea, but first we have to have consensus enough to introduce it) have to get over some petty prejudices about the degree to which we should be concerned about what free people do with freedom, and we also have to get over our very short-term view of surpluses, the idea that when there is some scarcity, which there always is, that governments are heartless to attempt to improve the long-term fiscal position of the government. Surpluses, investment in the economy... the right hates these things, for they allow public purpose, the government, their beast, to grow. It's why they think that taxes should be lower: so that spending becomes more difficult. My view is the opposite. Government should take more than it can forsee needing now, because we will need it soon enough.
And I hate to triple-post but this, from Wikipedia... apparently Huey Newton agreed with me when it comes to productivity and employability:
In the late 1960s, Huey P. Newton and the Black Panther Party came to believe that the lumpenproletariat could have a progressive role. Newton argued that the economic and social system of his time was fundamentally different from that which Marx based his analysis on, saying, "As the ruling circle continue to build their technocracy, more and more of the proletariat will become unemployable, become lumpen, until they have become the popular class, the revolutionary class."[5] This is the class the Black Panther Party sought to organize, he said. Some disregard Newton's interpretation, saying he applied the term to, and sought to organize, the temporarily unemployed, rather than the true lumpen. However, a careful reading of his writings reveals repeated references to the "unemployed" and "unemployable" as those with revolutionary potential.
There was a saying among the old Social Crediters (before social credit and monetary reform were co-opted by the political right), that "He who calls for full employment calls for war."
In any society there will always be a tension between those who want to have more and those who want to work less. Between those who would use technological advances to produce more goods with the same amount of work, and those who would use technological advances to produce the same amount of goods with less work. Under capitalism the latter choice doesn't exist. But we are all the inheritors of technological advances and at this stage of the game, the amount of labour required from a human being to sustain herself is quite small, and nobody should have to work for another if she doesn't want to. Isn't that what machines are for?
Sadly I don't see any alternatives from the labour movement when it comes to those who will not or cannot participate in the labour market, for increasing the living standards of
1) A mother (or father) homemaking and parenting as a full-time job
2) A self-employed individual, or
3) Someone who will not work on command.
4) Or the disabled.
Higher wages don't help these people. What I hear from many in the labour movement is "We can give each of these people a GOOD JOB." Really? What about those who don't want to let their kids be raised by others just so they can re-enter the labour market? What about those who are simply lazy, or value their time more than money, and want to opt out of the consumption race? We should not be slaves to the economy.
edit: I misspoke. Higher wages help everybody and lower wages hurt the whole of the lower classes. But, higher wages won't directly help those who aren't paid a wage have the decent standard of living that we are capable of giving to every citizen of this planet.
edit #2: I don't want to seem like I'm arguing that unemployed people are lazy or unemployed by choice, but I'm lazy and have often been unemployed by choice. What I think is that almost everyone, from the unemployed to the working poor to the middle-class, deserves a top-up, at least $1000 dollars a month more than whatever they currently earn. At least. Especially the working poor. I don't think this would put downward pressure on wages at all, on the contrary, it should put upward pressure on wages. Half of the shitty jobs out there that rely on people's desperation to pay them a pittance for a wage would have to start paying more because people would have options.
Bad idea. Don't go there.
PS: I am not an economist.
Cindy L'Hirondelle speaking about GLI and why we need it
Can you embed videos on this board? Anyway this video is apparently 16 years old but just as relevant today.
I am wondering if anyone has done the math on a 1000$ per month x some millions of people, depending on the starting age of the recipients. I figure it doubles federal expenditures at a minimum, assuming revenues would be double to accomodate it the top marginal tax rates, varying by province would range from 70 percent to 116 percent of gross income. I hope my math is wrong, I did it in my head.
Actually, it'd work out to somewhat less than 25% of GDP, but then you can discontinue Education Funding 3.6% of GDP, (Use the GAI from minors as a per-student grant to schools) provincial welfare, all transfers from the federal government to individuals except CPP 5.5% of GDP (which is contributions based) so that means no more OAS or GIS (which would be smaller than GAI), or EI. Ultimately taxes would have to go up by about 16% of GDP to compensate, so that wouldn't mean doubling every tax. In fact you could increase the marginal rate at the bottom, go to a 30-45-60 system of brackets (30% until earning per capita GDP, which is about $50K, 45% until earning twice per capita GDP, and 60% thereafter) as well as introducing a carbon tax, and the working-class, (unless they're pulling down about 100K/year) would be better off. (and even then, more of their income is secure)
As to implimentation: If you introduce this program during an economic downturn, we're going to need a stimulus between 3 and 10% of GDP, so suddenly you might only need to raise 6-13% of GDP in new revenues... and if you're introducing this program during an over-heated economy, you can introduce it at a slightly lower benefit level, designed to taper up to the intended benefit, phasing it in, and phasing the paternalistic income supports (seniors, EI, disability) out as they become replaced by GAI.
Unionist: I am an economist. The numbers scream 'go-there' when we look at the much higher tax rates of the Fordist era, where wages climbed with productivity, and the disappearance of jobs. We no longer have demand sufficient to ensure that every marginally employable adult can work 2000, or even 1500, hours a year. Why isn't it a good idea, other than it rewards the hated, hated, lumpen?
Sincerely, a 52nd percentile earner.
Unionist: I am an economist. The numbers scream 'go-there' when we look at the much higher tax rates of the Fordist era, where wages climbed with productivity, and the disappearance of jobs. We no longer have demand sufficient to ensure that every marginally employable adult can work 2000, or even 1500, hours a year. Why isn't it a good idea, other than it rewards the hated, hated, lumpen?
We've discussed this to death over years. But let me give you a quick answer, without even trying to refute some of your claims such as the one contained in the above paragraph where you seem to suggest that employment is nearing extinction:
Here's what you said:
A GAI would be nothing but a legislated guaranteed poverty level for a sizeable segment of society, and it would become a neocon pretext to do exactly what you've just suggested: get rid of every single social program we've fought hard to win, and are still fighting to win.
Who needs pensions, OAS, EI, disability insurance? You've got GAI! Choose your own spending priorities!! Freedom!!!
Who needs $7/day child care (sorry, that's only in Québec for now), pharmacare, denticare, home care, lower or free post-secondary tuition, increased minimum wage... you've got GAI! Fill your boots!!
Remember when Harper campaigned for $100 per month per child, instead of public child care? Same idea - only applied to absolutely everything. One payment per month (at sub-poverty level) - and freedom!!!!
Sorry if that's not written in academic language.
GAI is worse than welfare. It's welfare PLUS a ready-made pretext for dismantling the much-hated nanny state.
As I said: Bad idea. Don't go there.
The ONLY problem with a child tax credit instead of public child care is the amount! It's not enough to pay for the kind of child care the advocates of a national child care program are saying everyone should have! That is the ONLY problem with the child tax credit. All of your stated complaints with a GAI stem from the fact that you don't think the amount would be enough.
I've lived on welfare, and on EI. Don't tell me a GAI is worse than welfare. Anyone who would say that has surely never had to live on $600 a month that you can't keep if you find any work at all. As for EI, recipients would become recipients of a GAI, like everyone else - why should person X be entitled to greater poverty relief when out of work than person Y, just because person X spent the last year employed? That is privilege, both persons should be entitled to unconditional relief.
You speak of "access to the necessities of life." In our society you access these things with MONEY. What is the problem with giving people money unless you just don't think we're talking about enough money?
The ONLY problem with a child tax credit instead of public child care is the amount! It's not enough to pay for the kind of child care the advocates of a national child care program are saying everyone should have! That is the ONLY problem with the child tax credit.
I never mentioned the child tax credit. I'm talking about Harper's "Universal Child Care Benefit". It pays $100 per month to parents for each child under the age of 6. It is treated as taxable income. It does not have to be spent on child care. And it does not magically create child care facilities where demand exceeds supply. In fact, it has nothing to do with child care, despite its title.
No, my stated complaints stem from the fear (as confirmed in RTTG's posts and many other sources) that a GAI would be used as an excuse to eliminate programs paid collectively (like EI, CPP/QPP, etc.) or by the state directly (health care).
How much would say the GAI should be in order to replace all the programs (existing and needed) that I mentioned? If you want to make everyone wealthy enough to pay for those essentials of life should they need them, that would be great. I just don't think everyone needs enough of a guaranteed income to pay for home care, dental implants, disability pension, employment insurance, tuition, child care... I think it makes more sense to provide all those needs for free (or very affordably) when and where people need them.
Ok, I know I said GAI is "worse than welfare", but I didn't mean to say that it would be less money. Of course social welfare is ridiculously inadequate and needs to be improved dramatically. But my real point was earlier in the post, when I said that GAI would be "a legislated guaranteed poverty level for a sizeable segment of society" - and the real further point being that it is a pretext to cut social programs.
That's a very egalitarian viewpoint. Why not go further and say that the working and the unemployed should be entitled to the same "unconditional" income? And that all workers should get the same salary, namely, GAI? I don't think we need to go to such extremes to address the problems of poverty and of progressively socializing the necessities of life.
I'd rather give them what they need - free, unconditionally - rather than give them money. That's just the way I am.
Okay, and I'm all for tuition subsides (we can't afford not to better train and educate our populace in the long run IMO) and universal health care and other things we don't have and could do better, pharmacare, etc. A modest GLI (a term I prefer, for guaranteed livable income) is a combination of a raise for most workers, a grant to stay at home parents, a subsidy for self-employment or small business, a rise in the welfare rates combined with the end of the welfare trap work disincentive, and economic security for anyone in any situation they'd rather not be in but feel they need to because the alternative is destitution - from people working shitty jobs to women in abusive relationships to sex workers. It should empower the proletariat and lumpen to stand up for equality because it would take away the capitalist class's biggest weapon - the threat of destitution. Can you put a price on that?
I am especially for cash grants to parents who don't want any part of anyone else's day care program. Day care for those who want to work is a grand idea but I don't think anybody should be cajoled into the labour market because of some kind of calvinist notion that "he who does not work, shall not eat!" Is that not what technology is supposed to help overcome? I think state-run day care centres would ultimately serve the interests of capital (who would be paying for it, that's why the part of the capitalist class that the Liberal party speaks for wants it) just like I think the public school system does.
Ok Boze... I think we're looking for different things from government, which is why perhaps our approaches are different. I understand yours better now.
Day care for those who want to work is a grand idea but I don't think anybody should be cajoled into the labour market because of some kind of calvinist notion that "he who does not work, shall not eat!"
I think that was a New Testament principle, later popularized by V. I. Ulyanov, not so much by J. Calvin.
εἴ τις οὐ θέλει ἐργάζεσθαι μηδὲ ἐσθιέτω
[Paul, in his second epistle to the Thessalonians]
Ok Boze... I think we're looking for different things from government, which is why perhaps our approaches are different. I understand yours better now.
Different people are looking for different things from government. I am looking for them to redistribute wealth.
The problem of poverty is money.
And I am looking for people to redistribute government.
The problem of poverty is freedom - economic, social, political.
Okay, I agree with that, but should that not include the right to use the educational institutions and the methods of child care of one's own choosing, and the right to the financial means of doing so? I support public sector workers but I'd never want my kids in a public school, because I absolutely loathed my own public school experience and I think the public school system serves the interests of capital and functions in many ways to dumb kids down and train them to tolerate tyranny. Don't get me wrong, most private schools are the same, but if I want to run a neighbourhood democratic school with seven students it should get, if not the same per-student funding as the public school down the road, funding on a similar basis.
Furthermore I would argue that universal health care systems in Canada and elsewhere have usually come about largely because enough of the capitalist class has been convinced that it's in their interests to have a healthy population. I think many of us on the left have really allowed ourselves to delude ourselves as to how much we've been able to affect the distribution of power in this society - not to in any way downplay the significance of hard-won achievements that have made a real difference in the quality of people's lives, but this is still a society owned and run by capital, the rest of us just live in it.
A GLI fundamentally changes the game, by eliminating the fear of destitution that forces people to do all sorts of work they loathe. I really like Red Tory Tea Girl's post #6 above - what would a GLI do for workers mulling over a strike action?
If you support people having access to the necessities of life and a dignified living standard, I don't know why you would oppose a guarantee of the money they'd use to access those things, unless you are worried that it would all be a lie because the GLI would be too small.
You do realize that those things are all money that people can spend on whatever they want? They just get them by being considered deserving recipients. Most workers would get a top-up from GAI, as well, though yes, it would be smaller.
And if you had read what I'd written, I did say that some of the money can be dedicated towards essentials (produce credits, housing credits, etc.) or given in cash at a small discount, five-or-ten percent. And yes, a GAI, one linked to production, one that rises over time, is redistributive, DOES increase economic freedom. What you're talking about is skilled-prole/petit-bourgeois freedom, the freedom to earn a little bit more in a job that already earns the national average and to have your daycare subsidized at the same time. (who said school shouldn't be a 9-5 exercise? or for that matter match the schedules of the parents? We do that just fine with university.)
Boze, as to higher education funding, I'd addressed that earlier: The first 4-5 years of a child's life, they'd have their GAI placed into an account, say, alongside CPP contributions, and that money could be used for higher education, and would be about as generous as what's paid now, or could be used as seed money for purchasing a home, or whatever.
Also, if we wanted to make higher education more affordable, we'd regulate the institutions and make sure that a relatively inexpensive degree like those in the humanities wasn't susbidizing a capital and materials intensive degree... say 10% of tuition can cover public facilities, 10% can cover scholarships and other programs, and the rest has to go into program-dedicated facilities, as well as staff and maintenance.
This would end the charade of particle physics and philosophy being considered nearly equally expensive to teach. That fiction makes liberal arts education seem like a frivolity.
Yes, Unionist, the problem of poverty is freedom. Freedom from the social disdain for people of lower-than-average productivity. Freedom from the ability of the political class to campaign on who deserves a basic standard of living. And freedom from the economic warfare of threatened poverty, (and $1065 a month may be low-income, but it isn't poverty. You just get a roommate) where a principled refusal to be exploited can threaten your life.
I want government to be redistributive as well, but the best way to maintain a policial consensus in favour of that distribution is guaranteeing anyone access when it becomes necessary.
Just a quick adendum: We don't have pharmacare or denticare either, though we should have them, at 100%, and without copay. That would increase government spending on health care by about 3% of GDP, and is definitely something doable... could even take the premiums for pharmacare and denticare out of that GAI, if you so desired. I have no problem with the necessities being paid for, like I said earlier with education: 30% endows the public system, 70% goes to whatever school you want, though ideally public, since they're going to have the best schools. There would, in effect, be a tax on private school tuition. We could even slap an across the board tax on private school tution, if you like, so if they charge an extra $5,000 per pupil, $1,500 of that goes to the public school system as an endowment.
And while public schools could vary their method and times of delivery (I imagine schools which have hours of 8:30-5:30 with some extra-curriculars thrown in will be pretty popular) as well as schools which taught at night for parents who work overnights, etc. they would have to teach the curriculum, first and foremost.
I think schools already struggle to find enough meaningful content to fill six hours a day and end up boring the pants off most of their students, who don't want to be there and whose time would probably be better spent doing just about anything else - with some exceptions of course. I can't imagine what they'd do for eight hours, unless the purpose is to train children to endure eight hours a day of boredom, in which case it seems like a jolly good preparation for working life! Their primary functions seem, to me, to be babysitting (so their parents can work in the economy), obedience training (for when the kids eventually work in the economy) and keeping kids out of the labour market (again, to keep adults employed in the economy)...but, that seems to be a separate thread. ;)
edit: and I think the reason schools struggle to find meaningful content to fill six hours a day for most students is that what constitutes "meaningful" is going to vary from student to student, and nobody needs or makes use of everything they're taught, but they all make use of some of it, so we just say teach it all to everybody - whether the students retain any of it or not!
Again, I had in mind some extra-curriculars, like sports, music, internet, what-have-you, and probably a much narrower core curriculum... make secondary schools a little more like universities.
That's correct. And other countries have shown that giving money directly to poor people is one of the most effective ways of eliminating poverty.
Also, income security tends to increase productivity, because people are more willing to take risks. Howard Bloom has written about this, how the greatest economic boom in the history of the West coincided with the introduction of an incredibly inteventionist welfare state with unheard of levels of taxation. People didn't have to keep their noses to the grindstone, and touched off a wave of invention and innovation and entrepreneurialism, much of it purely for public benefit, that the world won't see soon again.
εἴ τις οὐ θέλει ἐργάζεσθαι μηδὲ ἐσθιέτω
[Paul, in his second epistle to the Thessalonians]
and in Russian,
Kto He Rabotayet, Tot He Ect
I should mention that basic income and basic standards are hugely variable throughout the West;
in Switzerland, unions have run billboard campaigns in favour of a basic income approaching 3000 francs/mth, or a bit over $3000 Cdn., and a minimum wage of 20 francs/hr -- but then $50,000 is considered pretty basic wages in Geneva... that's why there are loads of Quebec nurses in Swiss hospitals
If any one can, I'd love to see the discussion in dollars rather than percentages of GDP, which is gross not net, domestic product and is a variable. I'm presuming an annual guarenteed income wouldn't vary significantly otherwise it would make individual planning quite difficult.
Well, Glenl, a GAI of 25% of GDP would amount to 492.34 every 2 weeks.
But the reason it should be indexed to GDP is twofold: GDP trends upward, and partial indexation ensures people a reasonable proportion of productivity increases.
And two: Then we don't have to come back to parliament every time the GAI falls in relation to inflation or production. It takes the issue away from right-wing governments to cut or left-wing governments to worthiness test, or centrist governments to means test. Our income tax is means tested. That's all we need.
It is based on the notion that the only problem in our society is that some people earn too much, while some others are extremely poor.
If we can only eliminate the "eyesore" of the extremely poor, then problem solved.
Now we have posters discussing what the lowest level of income can be so that we can feel good about ourselves. This is not only Utopian, it runs counter to any movement for fundamental social and economic justice.
Here's an analogy which some of you may appreciate:
Objective: Child Care.
Option 1: Build a national publicly-owned publicly-delivered universally accessible and affordable (or free) early childhood care and education system.
Option 2: Give people $100 per month. This replaces the need for any other state program. Never mind that it will be free money for some and grossly inadequate to meet the needs of others. It's "fair" for all and respects individual freedom. People can do whatever they like with their kids.
Now try that again.
Objective: Social and economic justice.
Option 1: Painstakingly develop a complex system of social programs (building upon the many that have been created over the decades) to fulfill identified needs of the whole population. Establish legal standards to guide and regulate service and delivery in all spheres. Nationalize the major means of production so that they can be the subject of social policy and serve the needs of the population rather than the hunger of a few individuals.
Option 2: Give people $1000 per month. This replaces the need for any other state program. Never mind that it will be free money for some and grossly inadequate to meet the needs of others. It's "fair" for all and respects individual freedom. People can do whatever they like with their lives.
No, thank you, Mr. Harper.[Posted September 1, 2006 by Unionist. Note my guess of $1000 per month, in 2006 dollars, is strikingly close to today's estimates in this thread...]
Why does giving money to poor people now have to interfere with the grand plan for a future utopian world of full employment?
Give money directly to poor people now problem solved.
And of course a GAI fails to address structural unemployment. That's the idea, to make productivity the focus instead of an even distribution of work hours similar to those in an era when productivity was about one-third of what it is today. We can afford a bit of creative destruction if a layoff doesn't mean penury.
People who desire to work will still be able to work, but a modern late-industrial economy is a war against scarcity, and that war creates casualties, people who are unable to work for reasons other than the paternalistic ones we allow. Look at the trans unemployment rate for example. There are no intergenerational-mobility issues, no incabability to work, but discrimination is subtle and often unprovable in any instance but aggregate. Our current welfare system, for that matter any welfare system based on cultural values instead of entitlements, will only compound that discrimination.
I'm just for the better proposal of realizing zero unemployment structurally and cyclically by means of expanding public services to fully include employment of last resort for consumer services (Minsky) and even to fully socialize the labour market as the sole de jure employer of all workers in society, contracting out all labour services to the private sector on the basis of comprehensive worker protections. This directly empowers labour, its wages and salaries concerns, etc. instead of going through the consumer demand side.
You're a marginalist. I take my stuff from non-marginalists and anti-marginalists. However, given what you've said, that mouthful paragraph above is, hopefully, something for you to think about.
We won't get full employment. The only politician in the Western world arguing for the Minsky plan is Newt Gingrich, saying that low-wage last-resort labour in sanitation and other fields should be opened to children and welfare recipients...
And that's the problem with what Unionist proposes:
We have something like that right now. Welfare rates that improve the utility of single parents over those of single adults or two-parent households, income supports that kick in not when someone's knees or back give out (but not what we consider to the point of inability to work) but when they reach an arbitrary age, and education supports that are funded not by all citizens but by the property taxes in municipalities, and thus face political pressure to conform to the prejudices of the ratepayer (witness bill 44) except, you would argue, the problem is that we haven't done that enough. We haven't had enough bureaucratic tinkering to determine who is and isn't worthy of support, never mind that groups that believe that people like me are politically problematic have the ear of this government, and if Nixon v. VRR was any indication, will have the ear of the next government, regardless of party.
The idea that bureaucratic tinkering with income support has not been practiced enough, that a little is destructive but more will make it better, is, frankly, ridiculous. Outcomes are the best measure of need and discrimination.
As to full employment, look not just at the unemployment rate but labour force participation, and the increase in the length of the average retirement:
We simply do not have, nor do we need, full employment. Far better to have a rotational system where people can drop out of and into full-time employment more-or-less at will.
Further, I don't really care about labour or capita per se. I care about consumption which is something every person does, not just half of the population. I care about people's fair access to a reasonable standard of living and reasonable incentives to provide for themselves and others.
A guaranteed annual income that rises with productivity will do that. This isn't giving someone a hundred dollars a month to deal with childcare, (because nobody would argue that one could afford childcare with a hundred dollars a month. I said as much during that election. It was a bad policy and it was a subsidy not of the raising of children but for guardianship of children).
There are times when we have a single-payer system and there are times when we have a market to allow for the complexity and changability of priorities, and the reason I know this is that I've never heard someone here advocate everyone get their basal metabolic rate in produce alloted to them.
You miss the important second step: You don't trust the market to provide necessities to be bought with those income supports: You provide a public option. You start public housing corporations designed to generate returns comparable to CPP instead of what private investors expect. You invest in infrastructure for domestic provision of produce. You invest in commercial real-estate so that anyone who wants to start a microbusiness can do so... you build plants to manufacture the solar cells and companies to install the broadband capacity, and hire engineers to build the electronics industry required to make internet access today the equivalent of CBC access in 1970.
You get government into the commanding heights of the economy again. You don't sit around thinking that the market will do anything more than ensure that if too many canteloupes are bought that a price will be found at which most of them will sell, or that people prefer blue-tinted tupperware to red-tinted tupperware... and you stop this obsession that the right and left have with how we earn the capacity to enjoy our lives, and rather focus on improving that capacity.
But at any rate, Unionist, I'd like to what non-medical expenses you forsee that will make a GAI of $1065 a month utter poverty, when we expect people to live on $550 now, and $1090 if they're severely handicapped, and further who should get what subsidy... because I think your metrics are based more on post-modernism than empiricism.
Who said that the Minsky plan was a low-wage plan? The effective minimum wage would be much higher than it is now. Also, why did you unnecessarily mention children? The program is mainly for welfare recipients and their paltry benefits:
http://www.thenation.com/article/161249/job-guarantee-government-plan-fu...
You're referring to frictional unemployment, but both you and Wray in the article above used the wrong term in the first place. I didn't use the flimsy term "full employment." I used the term "zero unemployment structurally and cyclically."
And that's the problem. Most economists care only about capital or consumption (in your case, consumption). Very few realize that the road to better consumption starts with labour.
You get government into the commanding heights of the economy again. You don't sit around thinking that the market will do anything more than ensure that if too many canteloupes are bought that a price will be found at which most of them will sell, or that people prefer blue-tinted tupperware to red-tinted tupperware... and you stop this obsession that the right and left have with how we earn the capacity to enjoy our lives, and rather focus on improving that capacity.
That sounds good, but the public option is too timid in some sectors. The whole banking system, including credit unions, should be nationalized if society wants more effective management of its money supply.
But at any rate, Unionist, I'd like to what non-medical expenses you forsee that will make a GAI of $1065 a month utter poverty, when we expect people to live on $550 now, and $1090 if they're severely handicapped, and further who should get what subsidy... because I think your metrics are based more on post-modernism than empiricism.
The minimum wage in Ontario is $1777 a month. You're asking me why a GAI which is only 2/3 of the minimum wage would be utter poverty?
Especially when it would be used to phase out EI, pensions, disability (not sure what you mean by that... CPP/QPP disability pension? 15-week EI? other disability insurance?), arts funding (your words), and those are just the ones you've thought of - others in this thread and certainly even more in Harper's caucus will use it to attack existing spending and veto new programs on health care, education assistance, job training, child care... in the name of freedom!!!
And you have actually attracted support in this thread from some who say that the solution to poverty is to give the poor money. Profound! Why didn't we think of that before?
If you want to double social assistance payments and call that GAI or GLI or whatever, I'm fine with that. But don't give it to anyone else, and don't take the money from anywhere else. For all the reasons that I and others have been citing on this discussion board over many years.
From Post #2
"But I thiink you would need a command economy and a world ready to accept such singular economic sovereignty."
Would really love for you to light on that observation for just a moment, RTTG.You do tackle this with the Weltanschauung of an economics class discussing the privalization of parks.
If you want to double social assistance payments and call that GAI or GLI or whatever, I'm fine with that. But don't give it to anyone else, and don't take the money from anywhere else. For all the reasons that I and others have been citing on this discussion board over many years.
Even with doubled social assistance those who pick up a few hours a week of work would lose whatever amount they make, dollar for dollar, thus eliminating all incentive to enter the labour market. I don't think people should be coerced into the labour market but they shouldn't be incented out of it either. What is the nature of opposition to giving workers the same cheques given to social assistance recipients?
I'll tell you if you tell me first, do you believe that people who are working should earn the same as (able-bodied non-retired) people who are not?
Deal?
No, Unionist, I don't believe they should earn the same. You'll note I'm advocating for a 30% income tax, not a 100% income tax. That minimum wage worker would see after tax their income rise by about 500 a month. That $1777 doesn't cover taxes, deductions, EI, does it? The actual utility for a full-time minimum-wage worker, not mentioning the time sacrificed, is much lower.
I do believe however, that our metric for able-bodied is not sufficient. And I've said this time and again, Non-discrimination laws don't cover all instances of employment discrimination, and trans people in New York City have the unemployment rate to prove it.
Further, most employees are required to sign employment contracts that would be charitably referred to as 'boilerplate' and giving them an avenue of economic resistance to this sort of mandatory exploitation is a key goal of mine. Nobody should be enjoined legally from telling their co-workers what they earn, for example.
If you've noted, CPP is a wage-based pay-as-you-go-system, and I've said it should be preserved, don't lump it in with ageist income supports like OAS which should be expanded and rendered non-ageist (OAS pays about 500 a month, GAI would pay more than twice that)
Suffice it to say: I believe in incentives to earn, but penury is not among them. And as someone who's dealt with our shoddy income support system by treating times of employment as though I was taking home about 60-70% of what was on my cheque and saving the rest for the inevitable constructive dismissal, I believe you fail to see how this will help workers too, by ensuring that when they work it will be on their terms.
But I'm glad we've gotten to the crux of the problem: You think that those who are not diagnosible should be forced to work, never mind that those who are diagnosible are often capable of working in some fields. I, on the other hand, think that everyone should be encouraged to work, that everyone should be incentivized to work, but should not be coerced into working.
And no, Jacob, capital, forgone consumption, is important to production too. Often in concert with labour, often minorly attended by labour. You can look at the number of person hours required to make a train car from ore mine to railyard, and they've gone down. Technology, capital, intellectual work, these are major drivers of productivity, and the only drivers of sustainable productivity. You can't just ask workers to indefinitely work harder, and in fact, this is the exact opposite of the appropriate goals of an industrial age.
You still resist explaining, RTTG, how you bring off this revolution in distribution without modifying the globalized banking/finance system on which it would depend for sustenance. Shouldn't you propose at least a Tobin tax to begin winning back sovereignty in that area - before engaging in the creation of a weirdly bifurcated society of investors and lumpen that will function somewhere in space?
Or is that to come in the next chapter of this neat economic model, entirely dependent on mathematics and bereft of sociological imagination, while laying on assumptions about "the appropriate goals of an industrial age?" Appropriate to the models created in the Chicago School?
Yes, let's introduce a 1% tax on the purchase of all financial instruments, sorry. Oversight on my part, as I was focused on the carbon tax and estate tax and surtax on rentier-class-sized incomes.
I believe, Gaian, that as a society we should say that our goal is not to be administrators, not to be manufacturers... our goal should be to be artists, and writers, and performers, and creators, and revelers in the human experience... but sure, of course, the financial sector that's eating up an extra 2-3% of GDP over what has been historical and ideal before the deregulation and privatisation of all banking, is what's more important. I keep forgetting that we have to re-fight the culture wars and make it about greedy bankers, and since they like economic growth, let's make it about economic growth, new-age luddites that we are, forever kvetching over our lost university or muscle-job wage premiums, and never minding that massive exploitation occurs in every sector of the economy.
I have had it up to here with those who, in Metric's words, "Think it's wrong to want more than a folk song." Yes, a GAI will work better, and be more affordable, with a better banking system, and mine will be the first vote for a publicly held commercial bank, the blatant cissexism of one of the few that exists aside, but I would maintain that it will work just fine without a better banking system.
We have seen the enemy, and it is us, not some shadowy group of one-percenters, as though the people earning 100-200K a year were blameless in all this.
I swear, if we'd had this debate in 1960, you'd be opposing medicare because it doesn't fix the leech-like system of private medicine, but rather, socializes the costs. Sometimes there's a bigger fight.
As to how?!
How do we currently process EI and CPP and OAS and AISH and any other payment from governments to an individual? It seems like those programs, adding up to about 6% of GDP work just fine, and with the acquiescence of the chartered banks.
The great thing about capitalism is you can always find someone willing to sell you the rope with which to hang the system they profit from. They'll take those cheques, just to be able to loan out the money for a single day on average, as long as that day rotates evenly throughout the year, and the nature of banking is that it does. Banks borrow short and lend long, be they public or private.
There is no festering wound from which the tree rots, it is a series of minor ailments, life-threatening in total, so that should we examine one element, we can blame it on the decay of the whole tree.
It is the perfidity of bankers, it is the working of religion into public life, it is the use of animals, it is the use of chemicals... and on, and on, and on. I suppose it's nothing to get worked up over, I see it in every brand of politics and why should the rights of the consumer and the marginal worker be any different?
The point of mechanization and technological development is to enable the worker operating said machine to be more productive. At least you didn't call intellectual work "human capital" or "knowledge capital," but since the cost per se of labour power in general (as opposed to labour power itself) is called "variable capital," I think now that there should be discussions on the evolution of variable capital ("knowledge economy") as well as of fixed capital (such as mechanization) using the classical frameworks underpinning both.
Besides, how do you explain the mismatch between increased labour productivity, on the one hand, and no increases in real wages plus no decreases in work hours?
quote: "I swear, if we'd had this debate in 1960, you'd be opposing medicare because it doesn't fix the leech-like system of private medicine, but rather, socializes the costs. Sometimes there's a bigger fight."
I was politically active in 1960, and joined the emergy NDP as soon as I got back from Quebec in 1961.
One of our banner struggles was the promotion of Tommy's medicare. Back then, social democracy was only planning to create the welfare state, it had dropped CCF plans for ownership of the means of production. Couldn't be sold to people increasingly happy with their lot. And as Tommy showed, it was a near-run thing to achieve something like Britain's condition. We knew that the U.S. was not an example to be followed.
You come late to asking the question "As to how?! We who have been in the game of fighting the lies of a better-funded propaganda machine for the votes of the Great Misled for more than a half century tend put that question first, before creating formulae for the betterment of humankind. A war solved the political-economic challenges facing our parents and grandparents generation. And I don't know how the even greater question of keeping production/consumption to sustainable carbon limits can be avoided, along with plans for a command economy and mobilization as for war against our consumption habits.
As Charles Taylor said in a paper, back in 1975, living conditions on Earth may worsen to the point where we have to row together - he used the example of Dunkirk - for survival. But that level of concern was appreciated more by those of us in political economy at U of T, even as we watched the Chicago School coming to dominate all thought.
I'll tell you if you tell me first, do you believe that people who are working should earn the same as (able-bodied non-retired) people who are not?
Deal?
Deal, of course I don't think that. I agree with RTTG's post above. People should be rewarded for their work. It is the absurdity of the welfare system that gives a recipient no incentive at all to pick up, say, 10 hours a week, because welfare functions only to "top them up" to a certain level - 600 or so a month, depending on the province - and if they earn a few bucks their welfare cheques are reduced by an equivalent amount and they're no better off for their work! Moreover they face another penalty - because welfare is calculated according to what you earned the previous month, and not the current month, getting a job and going off the system is risky, because if you lose the job after a month, unless your plea to a welfare official for an emergency grant is successful, you'reexpected to go a full month before receiving benefits again.
That's why I support a GLI that would give cheques to managers, workers and the homeless and everyone in between. And if the GLI is actually livable, it would ensure that every job really was freely entered into. If the GLI is actually livable and if it is combined with other public programs to ensure access to affordable housing, education and medical care, it will end economic coercion of all kinds and for all intents and purposes end destitution as well.
Three people work as cooks at KFC (or any other job you want), and they all start getting GLI cheques. One keeps working the same amount and gets an effective monthly raise of the amount of the GLI. Another reduces her hours voluntarily to where she is earning the same as she was before and uses the extra time to go back to school, thereby opening up work hours for KFC to hire somebody else. The third quits the job he hated, again opening up another job space, and retires to tend his garden, raise ferrets and live a frugal life off the GLI.
A fourth person who finds labour in greater demand gets a part-time job at KFC, in addition to the GLI. KFC sees that their good employees are less willing to work for 10 dollars an hour and has to pay their workers more. All of these workers have either more free time or more money, and therefore all have less stress. And so on.
Steady increase in market power of employers and the removal of broadly-based income supports.
Gaian, I don't know whence you have imputed some love or fealty to the Chicago School to me, but I can't stand freshwater economists. They have far too limited a view of what government can do without harming utility to begin with.
Boze: Yes, that's my analysis too. (Though that first KFC worker won't get a raise the size of GAI, since their taxes will go up a little... using the full-time minimum wage worker Unionist gave us:
Gross Earnings: $1,777 - Federal tax deduction 101.68 Provincial tax deduction 51.42 CPP deductions 73.52 EI deductions 32.52 For net pay of $1517.86
Then under a GAI at 25% of per capita GDP: (based on the 2011 numbers)
Gross Earnings: $1,777 - Federal tax deduction 533.10 Provincial tax deduction 51.42 CPP deductions 73.52 = $1118.96 + GAI of $1066.74 = $2185.7 Or a raise of more than $665 a month
Ok, I think I understand your concept of GAI better now: Free money for everyone. Sounds good. Where do I sign up?
No Unionist, income stability for those earning less than an average income. Ideally the program should approach revenue neutral for someone earning at the 60th percentile. But hey, I do like your characterization of the program. Lets me know what I should expect from the Harperite, welfare-bashing, 'common sense revolutionaries,' out there.
You realize that given the increase in education grants for minors, we could simply make a daycare program single-payer, right? Instead of letting private companies that underpay childcare professionals lap up subsidies and raise rates accordingly, we put daycares in schools?
Again, it's your confusion of 'withdrawn from the labour force' with 'parasite' that gets me. Sure under your plan we subsidize daycare but then all we've done is ensure that a single-parent works a 70-hour week to enjoy the same utility as a single person working 30 hours, and we've made it harder for parents to get off the two-income treadmill, made it harder for families that want to concentrate on one full-time job: Keeping a home and raising children.
Is there something so terrible about saying to someone earning $1777 a month, Maybe a system where you spend half your pay ensuring that you can earn the other half is little more than workfare dressed up as progressivism? Maybe you should have the option of spending those years before your kids are in school concentrating on taking care of them and perhaps upgrading education and thus earning capacity? Because subsidized daycare alone does none of that. Subsidized daycare subsidizes labour for those who already have time in short supply.
I don't care who the state pays to raise children, honestly, just so long as children are taken care of.
Quote:" Again, it's your confusion of 'withdrawn from the labour force' with 'parasite' that gets me. Sure under your plan we subsidize daycare but then all we've done is ensure that a single-parent works a 70-hour week to enjoy the same utility as a single person working 30 hours, and we've made it harder for parents to get off the two-income treadmill, made it harder for families that want to concentrate on one full-time job: Keeping a home and raising children."
That's not what $7 a day daycare has meant for the working poor of Quebec, and what social democrats are going to be campaigning on for the next couple of years. It will be nip and tuck, given the general economic malaise for industry in a petro-dollar economy, but not nearly as difficult as those textbook creations from formulae applied to a Neverland situation.
Well let's talk about what seven dollar a day daycare means (Never mind that the spots are limited) for a working poor single parent of two, earning that Ontarian minimum wage, grossing 1777 a month and taking home $1517.86.
The national median for daycare per month is a little less than $600. That means savings of $450 per month, per child... so now we have disposable income remaining of $1217.86 on which to raise a family of three.
Or we could have a GAI with single-payer daycare ($420 based on a 60% participation rate http://publications.gc.ca/Collection/Statcan/89-599-MIE/89-599-MIE200600...)and food subsidies of $100 deducted from the proportion of remaining GAI that would go into the equivalent of an RESP (again managed the same way CPP or the Caise does, ideally in the same fund.) Leaving $6500 per year to go into an RESP for the first five years of a child's life.
So now that same single parent has the equivalent take home pay of $2385.70 (Our earlier 2185.70 for our full-time ontarian + childhood food subsidy) Take away the single-payer daycare (Which there's no need to do) and the respective utilities are roughly the same, except now we have a guarantee that each and every child has enough set aside for a full university education, or money with which to buy an apartment so that she or he can afford to house those children when they're not at daycare.
Child care subsidies alone are workfare, making it economical to work but not economical to be a minimum-wage-earning parent of two who can save for their children's post-secondary and enjoy food security. What it has done for the working poor of quebec is make them seek work, not the dignity we commonly believe it provides.
What are you on about? The purpose of child care is so that parents can go to work. And yeah, the cheaper it is to care for your kid(s), the easier it is to get work, and job training, and a better job, and so on. Child care is not aimed at providing parents (primarily women) with "dignity". It's aimed at unchaining them from the kitchen and washing machine for at least a part of the day. And no, we should not just give parents money for each kid and let them spend it as they wish. Nor should we eliminate medicare and give families a "health care" lump sum to spend as the please either. These are Harper's solutions.
Is this too simple to be true .
Tax consumption at 50% - not labour .
This is in german with english sub titles. Tune in to 1 hour 03 minutes for the fiscality .
Could this work ?
http://dotsub.com/view/26520150-1acc-4fd0-9acd-169d95c9abe1
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Sadly that sort of tax will be far too regressive, and will once again continue the devaluing of leisure in relation to other goods.
What are you on about? The purpose of child care is so that parents can go to work. And yeah, the cheaper it is to care for your kid(s), the easier it is to get work, and job training, and a better job, and so on. Child care is not aimed at providing parents (primarilywomen) with "dignity".
Well then that's part of the problem. And yes, I know the female labour force participation stats, but thank you, it's not as though I'd considered that 80% of single parents are mothers and 50% of dual parents are mothers when I did a province by province analysis of the utility that welfare provides for each kind of family grouping and its sexist implication that a family with an adult male in it is less worthy of support, because for some reason men are inherently more capable of being an 80-hour-a-week worker and parent(?).
There's something sort of misogynistic about the idea that domestic work is inherently female, or for that matter a unique form of drudgery, (instead of one of the few implicit forms of income the government doesn't tax) but working as a janitor or running turnodown service, and taking domestic workers from the management of their home to the status of powerless cog is somehow a moral economic end. To some degree we have the alimony law that we have as recognition for the amount of valuable and necessary work, childcare, maintenance, preparation, that's done by a stay at home parent.
And while we can pay someone else to replicate that work, it's interesting that this is the only field in which the cultural left wants work to be done by a private firm instead of a household. Can't say that about food production, for one...
I'm not advocating that, and if you were busy dissecting my plan (single-payer daycare deducted from every under-5's GAI + in-kind childhood produce subsidy) you'd see that I was at no point calling for children to produce cash proceeds, but rather, providing necessary goods and services. A voucher for necessary food for children. A guarantee that any child could go to daycare FOR FREE. (That beats the ass out of your seven dollars, I tend to think.) But didn't have to commit to five years of working simply by putting in for a daycare spot that they then can't afford to give up.
Obviously.
Again, agreed, now will you please stop conflating them with mine? I'm for universal healthcare, pharmacare and dentistry included, (though as an aside I'll note that given the repeated denials of on-demand Exogenous Endocrine Intervention by governments of every stripe, and Quebec, home of Henry Morgentaler, is no prize pig there, requiring a doctor's note for something as simple as a name change, trans people of limited means are better off in most of the western world, the US with its terrible health care system included, when it comes to access to life-saving medicine then they are here. You've continued to declined to engage with me when I mention the cissexist implications of our current system so I'll explicitly ask you to do so here, considering the last time C-389 had a prayer of passing it was tossed overboard so that the NDP could posture on making heating oil 5% cheaper for seniors, considering that the last province to de-list any medicine for trans people was Manitoba. Not Alberta, NDP Manitoba.)
And I'm for a universally guaranteed basic income so that those who don't have the wherewithal (hello marginalized people) or legal right (hello Cynthia Nixon) to challenge their workplace discrimination or constructive dismissal (hello Jonquierre) are guaranteed a source of income. This ends the paternalism of income supports and expands the role of the federal government, not diminishes it. You hate it because, well, apparently because it has a conception of unemployable that doesn't cut neatly alongside the existence of a politically acceptable disability diagnosis. (Again, trans people, despite no diminished capacity, are far less likely to find work and they have a diagnosible condition. Curiously AISH funding has not been forthcoming.)
That my plan is saleable to some of the right wing for political-cultural reasons does not mean that it is an inherent evil. It's a compromise, where we agree to give money that allows a basic standard of living (gee, just like welfare, just like AISH, just like lots of income supports, that's how we administer them) to everyone and tax back the difference. That means that things the left doesn't like, like working-class nuclear families with a stay at home mom, (hell, I disapprove strongly of the nuclear family, and sanction of heterosexual relationships, but I've made my peace with them) get a subsidy, while professional class families, the kind who are rewarded by income splitting, won't, for many reasons, including the elimination of the base deduction. It also means that artists whose work isn't commercial and who would never pass the right-wing sniff test when it comes to political content for $12,500 grants, will now have the exact same utility, but even fewer constraints on how they create. (I'd like to see an endowment set up for space and materials, but that's nibbling around the edges.)
It means that right-wingers won't be able to campaign against welfare cheats (there won't be any, just tax cheats) or invent scenarios in which parents have children for the income support increases.
It's a big truce on all these little culture war issues, and a belief that maybe, just maybe, grown up people who are able to consent are going to be able to make better choices if they have more utility. If they aren't forced with threat of penury into relationships where one party has all the power.
What are you on about? The purpose of child care is so that parents can go to work. And yeah, the cheaper it is to care for your kid(s), the easier it is to get work, and job training, and a better job, and so on. Child care is not aimed at providing parents (primarily women) with "dignity". It's aimed at unchaining them from the kitchen and washing machine for at least a part of the day. And no, we should not just give parents money for each kid and let them spend it as they wish. Nor should we eliminate medicare and give families a "health care" lump sum to spend as the please either. These are Harper's solutions.
No one has proposed the elimination of medicare in this thread, that is your straw man. There are hundreds of different BI, GAI, GLI, negative income tax schemes. Just because Charles Murray or Milton Friedman has suggested replacing ALL government programs with one of them doesn't mean that's what progressives are talking about.
Weren't you going to tell me what your problem is with giving cheques to everybody and not just social assistance recipients?
Sadly that sort of tax will be far too regressive, and will once again continue the devaluing of leisure in relation to other goods.
Was that a response to my post ?
No one has proposed the elimination of medicare in this thread, that is your straw man.
You favour the elimination of universal free public schooling K-12 and aren't interested in the struggle for free post-secondary education. Someone else will favour more "flexibility" and "choice" on individual health care spending. The workers' movement, of which I am a proud member, opposes this libertarian capitalist attempt to reverse the gains of our decades of struggle.
I said that a GAI (which is the flip side of a flat tax) will serve as a pretext by the rich and their governments to eliminate each and every social program. "You've got all this money - choose how you want to spend it!" By eliminating social programs, they would use a GAI to redistribute wealth among the workers and the poor.
Sure. I oppose government subsidizing exploitative low-wage employers. I favour government raising the minimum wage substantially, imposing severe health, safety, environmental standards, and making it simple as A-B-C for workers to unionize, and vigorously enforcing workers' rights.
As to post-secondary, you'll find that $60 K will cover a graduate degree, especially when inter-program subsidies are eliminated and education or humanities students are no longer forced to pay tuition fees that fund the MBA program. Though again, that money could also be used to purchase social housing if a person isn't gifted enough to manage a university education, unlike you and I. As to whether we can get to free university? Perhaps, but endowments seem the ideal method so that funding isn't dependent on political pretexts as to what we can afford?
And yet you support the current system, which does just that, refusing people a basic standard of living, and creating an army of desperate low-wage workers, as well as lower tax rates on low-wage work as opposed to medium-wage work.
We can talk about how the base deductible is essential for the working poor under our current system (it very much is) but we can't do that and simultaneously pretend it's not a subsidy for low-wage labour.
You think that by opposing your "give everyone poverty-level money and let them spend it as they choose" scheme, that means that I "support the current system"? Those are the two alternatives?
I've said in thousands of posts what I support. And my primary wish and aim in life is to see the rich lose, not just some of their wealth, but all of their power, to the workers and the poor.
In the meantime, I want to see society provide every social need possible, free of charge, publicly delivered - not hand out money and tell people to go shopping.
Of course, you define what constitutes a social need, right? Does that mean that trans people will get on-demand health care just like cis people? Let's ask our socialist utopia health minister Michelle Landsberg, or even Gary Doer.
My point is that this does an end run around the prejudices that you haven't addressed and that don't disappear just because the left takes power.
Or people with an undiagnosed learning disability that has left them with dodgy syntax, these things cost people jobs without reason and you will never, never, be able to demonstrate discrimination in enough marginal cases for employers to stop doing that. They'll even go to court to defend their right to irrational and bigoted prejudices. (Hello Cynthia Nixon, or Jan Butterman)
Look, I can't appreciate first-hand the pain and discrimination suffered by trans folk, even at the hands of those who consider themselves oh-so-"progressive" on other fronts. I can tell you that our union (and with some of us pushing hard) fully supports Bill C-389, has intervened to ensure trans rights are protected in the workplace, does education and training on trans rights and respect, and we have a long way to go. Just as we bargained same-sex benefits in various sectors many years before same-sex marriage was legalized, and while the cowardly Ontario NDP government was still allowing "free" votes on the issue - sort of like yesterday's cowardly "free" vote on gun control.
So yes, I'm a leftist - but please don't associate me with the scummy remarks and/or actions of Michelle Landsberg and Gary Doer. You seem to have a tendency to create dichotomies to simplify discussion.
In conclusion, let me say this: Discrimination and oppression can only be ended by struggle on the part of mass social movements. That's how the few rights that anyone has have been won. That's how discrimination against trans people will be combated. It will not happen by giving them enough money so that they can individually buy their own drugs and surgical procedures, while society continues to treat them as aberrations. In any event, I don't think that's where the solution lies.
Again, please stop conflating my support for a GAI with support for eliminating single-payer healthcare. Can you start with that?
After that, I'm going to reiterate: I do really well for myself. I'm bright, I'm thoughtful, I breeze through interviews, and I'm read as cis unless I dispel that impression...
But there's never going to be a movement for people who are crappy at job interviews. There's never going to be a movement for people with annoying laughs. People will continue to roll their eyes at those calling for fat acceptance, despite the fact that their obesity doesn't harm their productivity to a degree commensurate with the reduced wages they receive.
All of these forms of discrimination are irrational, are wrong, and should be combatted, but to some degree they just all become lumpen, the 'losers' that people don't employ with the same frequency, and find themselves in a vicious cycle of reduced opportunity. We will never successfully combat their oppression on a micro level, even when we win legal equality. So let's be a little Rawlsian about this and understand that outcomes are a pretty good predictor of social esteem, and just guarantee that nobody's going to be homeless because they like to dance at their desk while unintelligibly glotterally humming along to the most obscure Weird Al tracks of the mid-1980s, or because they had some traumatic experience with Kafka as a child and now can't fill out forms.
Let's do that, because as cool as your union assuredly is? Not everyone's going to manage to be in it.
Sure, ok, you support single-payer health care. I acknowledge that. But I wasn't talking about you. I was talking about Stephen Harper, and what I see as the underlying logic of GAI and the dangerous direction that it may take us.
But you don't support single-payer education. I understand your argument about choices. I find it disappointing that you depict education as a benefit only to the recipient (as you said, to people "gifted enough to manage a university education"), and not to society as a whole. Your example of some using the money for university, and others for social housing, was very telling IMHO.
So that's where I see the slippery slope, to coin a phrase - or more importantly, the retreat in frustration from the notion that society can decide its needs and can then take measures to provide them.
You may support single-payer health care, but let me test that belief. I'm young, healthy, and strong. I need money for education and lodging. Someone else may need incredibly expensive cancer treatments, drugs, surgery... but their education is done, they have no kids, and their mortgage is paid. Why should I pay for them, and why should they pay for me?? Give us both our reverse flat tax (GAI) and let us have choices.
That argument is no more seductive to me when you carve out health care and apply it only to education.
Yeah, again, I support primary and secondary education being like medicare: You consume the services, the government gives a grant to the institution providing the services, and sets aside infrastructure grants in proportion to the population.
What I don't support is a sop to the professional class who enjoy a wage premium over those without post-secondary education, when we haven't covered the largest expense of post-secondary education: The fact that while you're a full-time student, you also need your living expenses paid.
A GAI would, on the other hand, be sufficient to cover a student's lifestyle, while the money that's put in trust for a minor would be sufficient to pay their tuition.
This isn't like healthcare where unexpected circumstances (getting cancer, being trans, you name it) arise and out of fairness we decide on a single-payer system. This is a subsidy that doesn't sufficiently cover the poor in the near-zero-sum game of post-secondary education. The Blair government massively increased post-secondary funding and got no improvement in productivity. Paul Krugman's pointed this out too: The IT economy? reduces demand for educated workers:
http://krugman.blogs.nytimes.com/2011/03/05/falling-demand-for-brains/I'm proposing that we set aside sufficient pay-as-you-go funding to cover the whole cost of university, which, going by the Alberta government's 30% rule on tuitions, is about $20K a year. (Though we've seen that it's less depending on the program) And for those people for whom university isn't an option? We give them another method of improving their earning potential: Such as money sufficient to buy a starter home, or to start a business.
Not everybody needs or can make use of those extra four years of education, and while they were invaluable to me, I don't ultimately think it's fair that I was given an economic opportunity that others aren't capable of.
At any rate, that argument from the right about dismantling the state? They do it already. They don't need us redistributing wealth for them to argue against single-payer health or fully-funded public education or public broadcasting... they do it anyway.
No one has proposed the elimination of medicare in this thread, that is your straw man.
You favour the elimination of universal free public schooling K-12 and aren't interested in the struggle for free post-secondary education. Someone else will favour more "flexibility" and "choice" on individual health care spending. The workers' movement, of which I am a proud member, opposes this libertarian capitalist attempt to reverse the gains of our decades of struggle.
I said that a GAI (which is the flip side of a flat tax) will serve as a pretext by the rich and their governments to eliminate each and every social program. "You've got all this money - choose how you want to spend it!" By eliminating social programs, they would use a GAI to redistribute wealth among the workers and the poor.
I don't oppose free public education at all, I strongly favour universal free public education for anyone of any age on a voluntary basis. I oppose coercive schools that serve the interests of capital and primarily function to train children to obey orders and show up on time. From elementary to grade 12, schools view tardiness and absenteeism as disciplinary issues and treat them more seriously than failure to understand the material. You can coast through high school with a c- average and nobody will care, but start skipping classes and you will face swift punishment by the school system, usually in the form of detention, i.e. forfeiture of even more personal time. The lesson is clear: schools exist to train the proletariat to show up on time every day and not gum up the works.
I want teachers, parents and children to take the lead in building alternatives, and I want them to have the choice of the money allocated for education funding for them going instead to a montessori school, a waldorf school, any kind of democratic school, or whatever they want. I also want the public school system immediately democratized and voluntarized and forced to make itself relevant to students.
Sure. I oppose government subsidizing exploitative low-wage employers. I favour government raising the minimum wage substantially, imposing severe health, safety, environmental standards, and making it simple as A-B-C for workers to unionize, and vigorously enforcing workers' rights.
I support almost all of as well, but as for wages I don't care who pays them, I care how much the worker is paid. Why does it matter whether government forces businesses to pay higher wages, or increases taxes on the wealthy to top up wages?
dp
Because increased taxes should be used to provide social needs to people.
Wages are paid by employers, because they get to keep and use and profit from what the workers produce. They give back a part of that in wages.
Now, let's say some employer refused (or said they "couldn't afford to") pay a decent legislated minimum wage. Well, the government could maybe expropriate that business and run it in accordance with the law. In that case, I would have no objection to the government (as the employer) paying the workers' wages.
At this point I think it's down to the emotional satisfaction of locking in a win, instead of getting it throught the diffuse method of increased corporate and income taxes.
Alright Unionist, write up an exhaustive list of social needs in a post-industrial economy. Don't forget clothing, access to telecommunications, a level of dignity of access commensurate with the myriad uses of those telecommunications, access to fitness to maintain health, shelter, security of personal effects, a basket of food to cover appropriate nutritional needs, transportation, etc.
I'm not going to do that, RTTG. Progressively, with time, people struggle for the provision by society of various services which they deem essential, and/or desirable, and which in the absence of public ownership/delivery, are available to working people and the poor to a limited extent or not at all, or at the pain of financial ruin. I don't choose those goals - the people do, in the course of their struggle.
That's how we came up with what we have now (pensions, health care, K-12 plus I should say free CÉGEP in Québec, cheap child care, some home care in some provinces, some pharmacare in some provinces, labour standards of all kinds and shapes, etc.). And that's also why we don't have some other things - like, for example, why aren't telephone and internet free for everyone? Or, why do we get charged for local minutes now, when in pre-cellular days they were always free in Canada? Or, why do we pay for the most basic TV reception now, when it used to be free? Why do have have to pay to use some highways now, when once they were all free?
What is a "social need" is not up to me or you.
My conviction, however, is that the panacea you are proposing is not the right answer. I've given you some of my reasons. I'm not ruling out the possibility that you may change my mind to some extent. But in my case, it won't be by making appeals to "freedom of choice".
Don't you realize there are major problems out there . That most people are having a hard time making ends meet . I come to this board to see whats happening about GAI ( as you call it ) or Revenue Garantie and I get a bunch of intellectuals that seem so full of themselves it hurts to read this thread .
All this bla bla bla 50 cent a word rhetoric you all are spewing sounds like you are running the country . Maybe I stumbled upon Role playing club huh .
Un revenue Garantie sounds like a great idea and the video I saw sounds simple and would appeal to the general public . Which IAM a part of .
sheesh
I'm sorry I used big words to identify the fact that we have social needs that there does not exist a political consensus for. Also, usually I get accused of using a higher denomination of verbiage.
Unionist, I think my point is, that if we need to have a majority behind every social need, that definition will perpetually ignore the needs of the minority.
A GAI allows people a reasonable level of self-definition of need for that which is not majority-defined.
You may really really like what your government guarantees, or you may think the list is too small, but the fact remains, without a GAI for services that, even when single-payer, will be market-delivered, the list will never focus on that which delivers greatest utility. It will always carry an air of paternalism. That list of social needs will reflect what the affluent political class thinks necessary and not the working-class or the lumpenproletariat...
I honestly can't comprehend your opposition beyond majoritarian impulses, and as history has shown those are never fair-minded impulses.
Again, I reiterate, a GAI is a political truce, the left lets people homeschool (at seventy cents on the dollar). The right lets people destroy all their belongings at the corner of Hastings and Robinson. The left lets Eisenhour-pastiches of nuclear families exist. The right guarantees that no member of the trans lesbian housing collective I'm a part of is going to not have rent...
We agree that social needs are not 100% uniform so that we can actually have a society instead of Thatcher's vision of an agglomeration of interest groups.
Otherwise, feel free to keep pushing against the wind, because you're never going to get the middle-class or working-class behind avant-garde art as a stand-alone concept... you have to bundle our pet projects with their pet projects, because I'll tell you, there will always be a steady line of people who reject public schools. (And having been sexually assaulted inside a public school and having nobody come to my aid, I'm ever-so-slightly sympathetic to that point of view.)
I'm not going to do that, RTTG. Progressively, with time, people struggle for the provision by society of various services which they deem essential, and/or desirable, and which in the absence of public ownership/delivery, are available to working people and the poor to a limited extent or not at all, or at the pain of financial ruin. I don't choose those goals - the people do, in the course of their struggle.
That's how we came up with what we have now (pensions, health care, K-12 plus I should say free CÉGEP in Québec, cheap child care, some home care in some provinces, some pharmacare in some provinces, labour standards of all kinds and shapes, etc.). And that's also why we don't have some other things - like, for example, why aren't telephone and internet free for everyone? Or, why do we get charged for local minutes now, when in pre-cellular days they were always free in Canada? Or, why do we pay for the most basic TV reception now, when it used to be free? Why do have have to pay to use some highways now, when once they were all free?
What is a "social need" is not up to me or you.
My conviction, however, is that the panacea you are proposing is not the right answer. I've given you some of my reasons. I'm not ruling out the possibility that you may change my mind to some extent. But in my case, it won't be by making appeals to "freedom of choice".
I don't think it should be presented as a panacea. It is not a panacea. It won't end the destruction of the environment. It won't end war, and it won't change that we don't have democratic control of the means of production. But it should end homelessness. Can you get behind that? It should empower and embolden labour, as has been argued in this thread, to strike, or to turn down a job one doesn't want, because people will not fear starvation or homelessness. Ever again! Can you get behind that? Far from being the endpoint to social change, I think it would be the beginning.
I don't think it should be presented as a panacea. It is not a panacea. It won't end the destruction of the environment. It won't end war, and it won't change that we don't have democratic control of the means of production. But it should end homelessness. Can you get behind that? It should empower and embolden labour, as has been argued in this thread, to strike, or to turn down a job one doesn't want, because people will not fear starvation or homelessness. Ever again! Can you get behind that? Far from being the endpoint to social change, I think it would be the beginning.
Now you re talking :+)
I'm sorry I used big words to identify the fact that we have social needs that there does not exist a political consensus for. Also, usually I get accused of using a higher denomination of verbiage.
I mean this is an Activist site isn't it ? I just had the feeling I stumbled upon a transcript from the House of Commons ...
Has a Projet de Loi been tabled for GAI ?
Has any Party adopted a GAI platform , or is contemplating adding one to its agenda ?
I agree that social needs are important , and empowering the labour force with a GAI would give people hope and a new found desire to get involved and fight for their rights .
Vive le Lumpenproletariat
Very true. It will, however make broad-based change possible.
It will, however, make a carbon tax/cap-and-trade which was going to fall disproportionately on those working poor who aren't in a position to hold out for a job with public transit much more palatable and progressive.
As to war, you're right, save for the fact that the political costs of attacking the arms industry will be reduced.
As to democratic control, again, you're right, but a move to more endowment and pay-as-you-go funding of education will put more ownership of capital in public hands. Money set aside during the first five years would be invested in the CPP fund, which, like the Caisse Populaire, increases domestic ownership of capital.
Beyond those unable to function with mental illness in any capacity, it will, and having moved homelessness from a question of neo-Calvinist income supports to the core issue of mental illness, greatly reduce homelessness and the economic stress that remains one of its root causes.
I think also, to relate back to democratic control of capital, you'll see more microentrepreneurialism, but yes, most assuredly, working conditions will improve. I know that I would, on principle, walk away from some of the ridiculous boilerplate employment contracts that had been shoved under my nose.
I quite agree. The effects will be small at first, the ending of economic homelessness, improved food security for the working poor... you'll see the slow dropping of workplace fear, the desperate need to keep a job, and also employment entered on one's own terms... you'll see more artists, more entrepreneurs, more writers, more volunteers... and I think also an improvement in the savings rate, as people start to plan around their core income, knowing, "Well, barring the complete collapse of western civilization, I can count on about 90% of that cheque I currently get." Productivity instead of activity will start to become the focus of popular economic concern, which will inevitably shrink our environmental footprint.
The GAI isn't important merely for what it does but what it makes possible.
[quotel]
I mean this is an Activist site isn't it ? I just had the feeling I stumbled upon a transcript from the House of Commons ...
Has a Projet de Loi been tabled for GAI ?
Has any Party adopted a GAI platform , or is contemplating adding one to its agenda ?
I agree that social needs are important , and empowering the labour force with a GAI would give people hope and a new found desire to get involved and fight for their rights .
Vive le Lumpenproletariat
Nobody's got a bill to introduce a GAI. That would have to come from the government, being a money bill.
The BC Greens seem to go back and forth on whether they would like to have one. They campaigned on it in 2009... beyond that I haven't heard anyone advocating it since Hugh Segal put out a paper in '04.