Sunday, April 7, 2024

"The Deep and Enduring History of Universal Basic Income"

It is beginning to appear that you can either have open borders or have a welfare state but not both (see Friedman, 1997, 1998, 1999, 2006):

Denver warns new migrants to leave sanctuary city and move elsewhere - saying that their lack of resources means asylum seekers will 'suffer'

  • City official Andres Carrea urged migrants to travel to New York or Chicago
  • Denver has already allotted more than $100 million to provide food and shelter
  • The city is now offering to pay for asylum seekers' bus fare to other locations

I wonder how UBI would fit into the picture?

It is long past time to make Washington D.C. the nation's official sanctuary city, if for no other reason than ease of administration.

And from the MIT Press Reader:

While the concept stretches back centuries, it has garnered significant attention in recent decades.

Support for universal basic income (UBI) has grown so rapidly over the past few years that people might think the idea appeared out of nowhere. In fact, the idea has roots going back hundreds or even thousands of years, and activists have been floating similar ideas with gradually increasing frequency for more than a century.

Since 1900, the concept of a basic income guarantee (BIG) has experienced three distinct waves of support, each larger than the last. The first, from 1910 to 1940, was followed by a down period in the 1940s and 1950s. A second and larger wave of support happened in the 1960s and 1970s, followed by another lull in most countries through about 2010. BIG’s third, most international, and by far largest wave of support began to take off in the early 2010s, and it has increased every year since then.

Before the First Wave

We could trace the beginnings of UBI into prehistory, because many have observed that “prehistoric” (in the sense of nonliterate) societies had two ways of doing things that might be considered forms of unconditional income.

First, nomadic, hunting and gathering societies of less than 60 people have often been observed to treat all land as commons, meaning that everyone can forage on the land but no one can own it. A similar right to use land has existed in many small-scale agrarian communities right up to the enclosure movement, which was not complete in Europe until the 20th century and is not complete around the world today. The connection between common land and UBI is that both institutions allow every individual to have access to the resources they need to survive without conditions imposed by others.

Second, most observed small-scale, nomadic, hunter-gatherer societies had strong obligations to share what they had with others. If someone camping with the group found more food than they and their immediate family could eat in one meal, they had to share it with everyone in the camp, including people who rarely or never brought back food for the community. The food shared around camp could be seen as a “basic” income.

Some trace the beginning of UBI history to ancient Athens, which used revenue from a city-owned mine to support a small cash income for Athenian citizens.

The modern definition of UBI stipulates the grant must be in cash, and because small-scale hunter-gatherer or agrarian communities do not have cash economies, they do not have UBIs. But these practices show how the values that motivate much of the modern UBI movement are not new to politics but have been recognized and practiced for a very long time.

Some writers trace the beginning of UBI history to ancient Athens, which used revenue from a city-owned mine to support a small cash income for Athenian citizens. This institution sounds like a UBI, except that the meaning of citizen was very different in ancient Athens. Citizens were a small, elite portion of the population. Noncitizens, such as slaves, women, and free noncitizen males, were the bulk of the population and virtually all of its labor force. A UBI for the elite is no UBI at all.

Proposals that begin to fit the modern definition of UBI begin in the 1790s with two writers, Thomas Paine and Thomas Spence. Paine’s famous pamphlet “Agrarian Justice” argued that because private ownership of the land had deprived people of the right to hunt, gather, fish, or farm on their own accord, they were owed compensation out of taxes on land rents. He suggested this compensation should be paid in the form of a large cash grant at maturity plus a regular cash pension at retirement age. That amounts to a stakeholder grant plus a citizens pension: nearly, but not quite, a UBI.

From a similar starting point, Spence carried the argument through to a full UBI, calling for higher taxes on land and a regular, unconditional cash income for everyone. If anyone can be said to be the “inventor” of UBI, it is Thomas Spence, but his proposal remained obscure, and the idea had to be reinvented many times before it became widely known.

Joseph Charlier, a Belgian utopian socialist author, reinvented the idea of UBI in 1848, suggesting the socialization of rent, with the proceeds to be redistributed in the form of a UBI.

Henry George, a late 19th-century economist, set out to solve the problem of persistent poverty despite economic progress. He proposed taxing land value at the highest sustainable rate and using the proceeds for public purposes. At one point, he suggested that part of the proceeds could be distributed in cash to all citizens, but UBI was never a central part of his proposal.

BIG proposals remained sparse until the early 1900s.

The First Wave

By the early 20th century, enough people were discussing BIG to constitute its first wave — or at least its first ripple — of support. The idea was still new enough that most advocates had little knowledge of each other, and they all tended to give their versions of the program a different name.

In the United Kingdom, Bertrand Russell and Virginia Woolf both praised the idea in their writings without naming it. In 1918, Dennis and E. Mabel Milner started the short-lived State Bonus League, which briefly attempted to get a conversation started with pamphlets and other publications, including what was probably the first full-length book on UBI: Dennis Milner’s 1920 publication “Higher Production by a Bonus on National Output.”

Several economists and social policy analysts, especially in Britain, discussed UBI, often under the name social dividend, in the 1930s and early 1940s. These included James Meade (economist and later Nobel laureate), Juliet Rhys-Williams (writer and politician), Abba Lerner (economist), Oskar Lange (economist), and G. D. H. Cole (political theorist, economist, and historian). It was apparently Cole who coined the term basic Income in 1935, although that term did not become standard for more than 50 years.

Major C. H. Douglas (a British engineer) included UBI under the name national dividend in a wider package of proposed reforms he called social credit. His ideas were most prominent in Canada, where the Social Credit Party held power in two western provinces on and off between 1935 and 1991, but the party abandoned support for Douglas’s proposed dividend not long after it first took power.

In 1934, Louisiana senator Huey Long debuted a Basic Income plan he called Share Our Wealth. He seems to have come up with the idea on his own; there is no evidence that he was influenced by the ideas spreading around the United Kingdom in those years. Long’s plan might have served as the basis for a presidential run in 1936 had he not been assassinated in 1935.

Although some of these early advocates were highly respected people, they were unable to get any form of BIG onto the legislative agenda in this era. As World War II drew to a close, most Western democracies built up their welfare systems on a conditional model, typified by the British government’s famous Beveridge Report, which recommended fighting poverty, unemployment, and income inequality with a greatly expanded welfare system based on the conditional model. Discussion of BIG largely fell out of mainstream political discussion for nearly two decades.

The Second Wave....

....MUCH MORE