USBIG NEWSLETTER VOL. 7, NO. 41, SEP-OCT. 2006

This is the Newsletter of the USBIG Network (http://www.usbig.net), which promotes the discussion of the basic income guarantee (BIG) in the United States. BIG is a policy that would unconditionally guarantee a subsistence-level income for everyone. If you would like to be added to or removed from this list please email: Karl@Widerquist.com.

TABLE OF CONTENTS

1.
USBIG CONGRESS: PROPOSAL DEADLINE EXTENDED TO NOVEMBER 10
2. EDITORIAL: MAN CHOOSES PRISON OVER POVERTY
3. BIG ADVOCATE WINS REELECTION TO BRAZILIAN SENATE
4.
ALASKAN DIVIDEND RISES AS OIL TAX RATE ON OIL COMPANIES FALL
5. CANADA: BIG REEMERGES AS A NATIONAL ISSUE
6. AUSTRIA: PARTY SUPPORTING BIG FINISHES FIRST IN ELECTIONS
7. KUWAIT: GOVERNMENT DISTRIBUTES OIL-DIVIDEND TO CITIZENS
8. IRISH NATIONALIST PARTY, SINN FEIN, ADVOCATES BASIC PENSION
9. MEMBER OF THE EUROPEAN PARLIAMENT SUPPORTS BIG STUDY
10. NAMIBIA: IMF CRITICIZES BASIC INCOME PROPOSAL
11. UPCOMING EVENTS
12.
RECENT EVENTS
13.
NEW LINKS
14. LINKS AND OTHER INFO

 

1. USBIG CONGRESS: PROPOSAL DEADLINE EXTENDED TO NOVEMBER 10

The Sixth USBIG Congress will be held in conjunction with the Eastern Economics Association Annual Meeting in New York City February 23-25, 2007. The deadline for paper proposals has been extended to November 10, 2006.

Scholars, activists, and others are invited to attend, to propose papers & presentations, and to organize panel discussions. Proposals are welcome on topics relating to the Basic Income Guarantee or to the current state of poverty and inequality. Suggested topics include but are not limited to the financing of BIG; the history of BIG; gender, family, and labor market issues of BIG; rights and responsibilities relating to BIG; strategies for implementing BIG; empirical issues of BIG; and the state of poverty and inequality. The purpose of the conference is discussion, and all points of view are welcome. The USBIG Congress is entirely autonomous in content and submissions are welcome in any academic discipline and from non-academics.

Featured speakers include Dalton Conley, Stanley Aronowitz, and Eduardo Suplicy. Dalton Conley is the director of the Center for Advanced Social Science Research and professor of sociology and public policy at New York University, and he is the author of Honky, Being Black—Living in the Red, and The Starting Gate. Stanley Aronowitz is a Distinguished Professor of Sociology at the City University of New York and author or editor of twenty three books including, Just Around Corner, How Class Works, The Last Good Job in America, and The Jobless Future. William DiFazio is Professor of Sociology at St. John’s University. He is the author of Longshoremen: Community and Resistance on the Brooklyn Waterfront and co-author of The Jobless Future. His most recent book, Ordinary Poverty, presents the results of welfare reform—from ending entitlements to diminished welfare benefits—through the eyes and voices of those who were most directly affected by it.

For details on how to submit a proposal go to http://www.usbig.net or contact the conference organizer, Karl Widerquist (Karl@Widerquist.com).

2. EDITORIAL: MAN CHOOSES PRISON OVER POVERTY


I was struck by a report in the Associated Press reported on October 12th that a 63-year-old Ohio man intentionally had himself convicted of bank robbery. Timothy J. Bowers sought a three-year prison sentence to bridge the gap until he becomes eligible for full Social Security benefits. Bowers had lost his job making deliveries for a drug wholesaler more than three years ago, and had been unable to find anything but minimum wage labor, which he could not live on. So, finally, he went to a bank, handed the clerk an envelope and demanded that she put cash it in. He then walked straight to the bank’s security guard, confessed, handed him the envelope filled with only $80 in cash, and calmly waited for the police.

The court-ordered psychological evaluation pronounced him sane and competent to stand trail. Judge Angela White gave Bowers the three-year sentence he asked for. According to the AP, “Prosecutors had considered arguing against putting Bowers in prison at taxpayer expense, but they worried he would do something more reckless to be put behind bars.” Arguing against tough sentencing is an ironic position for American prosecutors well known for locking away petty criminals.

This is an isolated incident. It is hardly a repeat of the Irish Potato famine when there were stories of large numbers of people getting themselves arrested to avoid starvation. But still, I think it says something about the low-wage labor market in the United States today. U.S. prisons are not easy, pleasant, or kind places to be under any circumstances. America is not in a famine; by some measures it is the richest country in the world. What does it say about the jobs we offer the underprivileged when a sane person can choose prison over labor market?

3. BIG ADVOCATE WINS REELECTION TO BRAZILIAN SENATE


On October 1, 2006, Senator Eduardo Suplicy, one of the strongest supporters of the basic income guarantee holding elected to national office anywhere in the world, won reelection to a third six-year term in the Brazilian Senate. Suplicy represents Brazil’s largest state, Sao Paolo. Suplicy is a founding member of Brazil’s ruling Worker’s Party. President Luiz Inacio Lula da Silva, also of the Worker’s Party, finished just short of the votes necessary to avoid a runoff election. He will face Geraldo Alckmin of the Brazilian Social Democratic Party on October 29. According to Suplicy, the reelection of President Lula will be extremely important for the future of the basic income guarantee in Brazil. In 2004, President Lula signed a bill proposed by Suplicy that authorized the gradual phase-in of a basic income guarantee in Brazil.

Senator Suplicy’s reelection demonstrates the enormous popularity of BIG with Brazil’s poor. Sao Paolo is Brazil’s largest state with 41 million out of Brazil’s 186 million residents, and is home to some of the greatest inequality in the world. Suplicy dedicated much of his campaign to that issue, giving ten speeches a week devoted entirely to it, promoting it in interviews on radio and television, and discussing it in twice daily television ads for 45 days leading up to the election.

Senator Suplicy will discuss the next steps toward phasing in BIG in Brazil at the BIEN Congress in Cape Town, South Africa, November 2-4.

4. ALASKAN DIVIDEND RISES AS OIL TAX RATES FALL


The Alaskan Government announced recently that the Permanent Fund Dividend this year will be $1106.96, or $5534.80 for a family of five. Residents will receive the fund over the next two months depending on how they signed up to receive it. This figure represents more than a 30 percent increase over the 2005 dividend of $845.76.

Steve Forbes, former Republican presidential candidate and editor of Forbes magazine, recently added his voice to those proposing an Alaska-style oil dividend for Iraq. The fund has been extremely popular in the state of Alaska, but it has so far failed to inspire similar policies in other U.S. states. Scott Goldsmith, of the University of Alaska, attributed the Fund as an inspiration for Alberta’s one-time oil grant in an interview with Eduardo Suplicy. However, Goldsmith said that there have not yet been any repercussions of the Alaska Fund’s success in the United States. “Several states have various types of permanent funds, funded by natural resource revenues, but they are earmarked for various public purposes like education.”

The fund has grown, despite declining oil taxes argues Ray Metcalfe of Alaska’s “Republican Moderate Party” writing for Alaskareport.com. A little known tax break for oil companies known as the "Economic Limit Factor" (ELF), passed in the 1970s, applies a mathematical formula designed to provide oil producers with a tax cut that increases automatically every year. According to Metcalfe, “Having eaten away at Alaska's original 15 percent severance tax for nearly 25 years now, ELF has reduced Alaska's severance tax on most of Alaska's North Slope oil fields to zero.”

The increase in this year’s dividend results mostly from the recovery of the U.S. stock market, because the fund’s dividend is determined by the return on the fund’s principle. The fund’s principle, now nearly 35 billion dollars, is determined by oil taxes. Therefore, the fund will continue to pay out dividends even if oil revenues stop completely. Metcalfe argues that repeal of the ELF could help the fund to nearly double in size before Alaskan oil revenues run out.

5. CANADA: BIG REEMERGES AS A NATIONAL ISSUE


The Basic Income Guarantee is once again gaining attention in Canada thanks to an oped piece in the Toronto Star by Senator Hugh Segal. The Star is Canada’s largest daily newspaper and Segal is an influential member of Canada’s ruling Conservative Party. BIG was last an issue at the national level in Canada in the year 2000 when the then ruling Liberal Party briefly floated a trial balloon on the issue. Conservative politicians were critical at the time, but now the idea is resurfacing as a Conservative Party idea.

Senator Segal reviewed the history of the BIG proposal in Canada (known as the guaranteed income), and connects it with a recent welfare study showing that Canadian welfare recipients are worse off now than 20 years ago. Segal proposes the guaranteed income as a solution, writing:

“For more than 30 years, I have been a relatively lonely Conservative proponent for a guaranteed annual income, or a basic income floor. I do not believe that, in a country such as Canada, fellow citizens must live so far below what we consider a poverty line that they are unable to provide the basic necessities of shelter, food and clothing for themselves and their children. And based on the current allowances provided by the welfare system, I also refuse to accept that people purposely choose to avoid employment in order to subsist on such a paltry income.”

“Individuals who turn to welfare do so as a last recourse. Whether the situation is the result of abuse, job loss, lack of education or training, addiction or single-parent households, our duty as Canadians and human beings is to guarantee an income that allows people to provide for themselves and their families while affording them a level of dignity that boosts confidence and inspires hope.”

“Surely the time has finally come to seriously consider a guaranteed income, financed by the money now in innumerable other programs. It is time to simply recognize that to be a Canadian should mean to be free of the fear that inadequate food, shelter, clothing, recreation and basic necessities of life cannot but impart. Poverty is rarely, if ever, a choice. Tolerating its worst consequences in a society awash in surpluses federally, provincially and in the private sector is an abomination.”

Sources in the Ottawa Parliament told the USBIG newsletter that there has been a noticeable increase in interest in the guaranteed income among Canadian MP’s since Segal’s piece first appeared.

At least one Canadian economist has followed Segal’s call for a basic income guarantee. W. Robert Needham, of Waterloo University, wrote an oped piece for the Waterloo (Ontario) record calling for Canadian leaders of Canadian business and public institutions to use their influence to see the universal basic income introduced in Canada. According to Needham, “There has long been a recognized solution route to poverty in the concept of an unconditional basic income provided to every man, woman and child from birth to death. This would contribute to greater equality of life chances for many people otherwise marginalized by the system, and as a result, the pool of potential entrepreneurial talent can be expected to be larger.” Needham’s piece is online at: http://www.therecord.com/NASApp/cs/ContentServer?pagename=record/Layout/Article_Type1&c=Article&cid=1161121817161&call_pageid=1024322168441&col=1024322596091.

Senator Segal’s piece is online at: http://www.canadiancrc.com/articles/Tor_Star_Welfare_study_shows_nned_guaranteed_income_02SEP06.htm.

6. AUSTRIA: PARTY SUPPORTING BIG FINISHES FIRST IN ELECTIONS

According to Wiener Zetung, Austria’s Social Democrat Part known as SPO unexpectedly won the most votes in Austrian elections last month, and is therefore in the process of forming a government. The SPO favors a guaranteed basic income of 800 euros per month for every Austrian citizen, but it will have to form a coalition government with the more conservative rival party known as the OVP, which opposes BIG.

7. KUWAIT: GOVERNMENT DISTRIBUTES OIL-DIVIDEND TO CITIZENS


Maktoob Business reports that each of the one million citizens of Kuwait will receive a one-time government grant of 200 dinars (690 dollars). This is hardly a universal basic income, however, because the two million foreign workers in the oil-rich emirate were not included. Foreign workers in Kuwait are permanent residents with limited political rights who make up two-thirds of Kuwait’s population. Many of the “foreign workers” were born in Kuwait, and many have nowhere else to go. This is the second such grant from ballooning oil revenues since 2004, but no plans have been announced to distribute a grant on a regular basis or to extend it to the majority of Kuwait’s population.

8. IRELAND (NORTHERN): SINN FEIN ADVOCATES BASIC PENSION


BIEN reports, on August 21, 2006, Sinn Fein Employment and Workers Rights spokesperson Arthur Morgan TD, commenting on figures published by financial institution Irish Life that three quarters of Irish women have no pension coverage, said that the figures once again demonstrated that the Government’s pension policy is failing women in particular. Morgan further argued that “private pensions are not the solution” and called for the introduction of “a universal ‘basic-income’ pension funded out of the general taxation system for all those of retirement age” to ensure economic independence for older women. For further information: http://www.sinnfein.ie/news/detail/15602

9. MEMBER OF THE EUROPEAN PARLIAMENT SUPPORTS BIG STUDY


BIEN reports, the President of the “Committee on Petitions” of the European Parliament, Marcin Libicki, approved on June 2006 the processing of a proposal to study the viability of a Basic Income sent by the association "Arenci" (Leon, Spain) with the support of Spanish socialist representative at the European Parliament Elena Valenciano. As it is stressed in the text approved by the “Committee on Petitions”, the proposal will be considered “because the issues that are raised fit in the list of tasks the European Union is responsible for”. This proposal considers a Basic Income of 421 euros per month, to be paid with consumption tax revenues. Elena Valenciano hopes that, as a result of this proposal, the European Parliament will issue a report on Basic Income. For more information, contact arenci@hotmail.com.

10. NAMIBIA: IMF CRITICIZES BASIC INCOME PROPOSAL


BIEN Reports, in its recent "Country Report" on Namibia (No. 06/153 April 2006), the International Monetary Fund indicates that the recent proposal to introduce a Basic Income Grant (BIG) providing a monthly cash grant to all Namibians below 60 years old would be very costly and may jeopardize macroeconomic stability. The current estimate suggests that the cost of such a grant would be close to 5 percent of GDP. While it would reduce poverty, the likely effect on income distribution is debatable, the IMF says. According to the fund, the implementation of a well-targeted conditional cash grant could be more effective in reducing poverty and improving income distribution over time. A targeted transfer would be significantly less costly and impinge less on macroeconomic stability. Furthermore, a conditional transfer could be directly linked to the achievement of lagging Millennium Development Goals (MDG) indicators, thereby addressing both current and future poverty. The report can be downloaded at http://www.imf.org/.

11. UPCOMING EVENTS


Cape Town, South Africa: BIEN’s Eleventh Congress:
The Basic Income Earth Network (of which USBIG is a national affiliate) will hold it’s Eleventh International Congress in Cape Town South Africa, November 2-4, 2006. BIEN Congresses are biannual, and are now in their 21st, year. This year’s Congress is the first to be held outside of Europe. According to BIEN, the Congress will include presentations from all over the world such as South Africa, Namibia, the United States, Brazil, and at least ten European countries. Archbishop Emeritus Desmond Tutu, who will be out of the country during the Congress, will make a video presentation to the Congress. The program for the Congress is available at www.epri.org.za.

Louvain-La-Neuve, Belgium: Workshop: "Is an Unconditional Basic Income Fair to Women?" November 22, 2006

According to BIEN, the Hoover Chair for Economic and Social Ethics at the University of Louvain will host this workshop. The main paper under discussion will be presented by Julieta Elgarte. Other participants include Pascale Vielle, Yannick Vanderborght, David Casassas, and Philippe Van Parijs. All available evidence suggests that the greater freedom the basic income would give for reducing or interrupting paid work would be exercised to a significantly greater extent by women than by men. This could largely offset the redistribution of income generated by the introduction of such a scheme. More seriously perhaps, it might end up strengthening the division of labor between genders, weakening women's commitment to the labor market, increasing their vulnerability to the circumstances of life and their dependence on men. If this is true, would it mean that a basic income, all things considered, would be unjust? Could accompanying measures prevent these consequences? Do alternative ways of strengthening women's position, such as a "homemaker's wage", collectively funded full-time childcare or strict enforcement of equal pay for equal work, offer better prospects for making our social and economic system fairer to women? Registration free of charge but obligatory no later than 15 November by mail to Therese Davio, <davio@etes.ucl.ac.be>. For further information: http://www.etes.ucl.ac.be/

Santiago De Compostela, Spain: The Sixth Symposium of Red Renta Básica November 30 - December 1, 2006:
BIEN reports, the Sixth Symposium of Red Renta Básica, Spain’s BIEN Affiliate, will be held at the Faculty of Political Science of the University of Santiago de Compostela on Thursday November 30 and Friday December 1, 2006. The provisional program includes roundtables on “20 Years Arguing for Basic Income: Philosophical Assessment and Perspectives”; “20 Years Arguing for Basic Income: Political Assessment and Perspectives”, and “Basic Income Assessed by Galician Social Actors”. For further information and a list of speakers see www.redrentabasica.org

New York City, 6-8 May 2007: The basic income guarantee in international perspective
Within the framework of the celebration of the 50th anniversary of the Wurzweiler School of Social Work, Yeshiva University (New York City), Richard Caputo organizes a session on “The basic income guarantee in international perspective” . The Conference is scheduled for 6-8 May 2007 at the Sheraton New York . Interested persons should contact Richard Caputo at <caputo@yu.edu>
An official call for papers has been released, and can be downloaded at http://www.yu.edu/Wurzweiler/CallForPapers_SaveTheDate.pdf

12. RECENT EVENTS


Rio De Janeiro, Brazil: International Seminar on Poverty and Vulnerability September 4-6, 2006
BIEN reports, this conference on "Development and Vulnerability: Outlooks for Resuming Development in Southern Countries", was organized by the Instituto de Economia at the Universidade Federal do Rio de Janeiro. Some prominent experts on the issue of poverty in developing countries, such as Pierre Salama (University of Paris XIII and author of the recent book "Le Défi des inégalités") and Joachim Von Braun (director of the International Food Policy Research Institute in Washington DC), had been invited to analyze the situation of Brazil. The Brazilian Minister of Social Development, Patrus Ananias, also gave a speech on Sept. 4. Anti-poverty programs, including basic income, were thoroughly discussed by one panel on Tuesday 5 September. In her presentation Lenas Lavinas (Federal University of Rio de Janeiro) focused on the regressive impact of Brazil's current tax-and-transfer system, and argued for a reform of the "Bolsa Familia" scheme. Yannick Vanderborght (Facultés universitaires Saint Louis, Brussels), also emphasized several perverse effects of this targeted scheme, and argued in favor of basic income in the Brazilian context. On Monday 4 Sept, the Brazilian version of Van Parijs and Vanderborght's book on basic income was officially launched, and this event offered another opportunity to discuss the proposal, especially with enthusiastic students in economics.
For further details see for instance http://www.ufrj.br/detalha_noticia.php?codnoticia=31
See also Vanderborght's interview in the Newspaper O'Popular: http://www.uclouvain.be/cps/ucl/doc/etes/documents/Interview_OPopular_Sept2006.pdf

Cordoba, Spain: 5th International Conference on Exclusion and Human Rights, October 13-15, 2006
According to BIEN, the organizers of this event state that “it is essential for an Association that is fighting for the defense of human rights to analyze the mechanisms that generate and perpetuate the situations of poverty and social exclusion in today’s societies. In view of the daily drama of millions of people starving, being forced to abandon their places because of wars and suffering the effects of certain supposed models of development, it is necessary, more than ever, a claim for an effective consideration of the Universal Declaration of Human Rights”. Speakers include Federico Mayor Zaragoza (former President of UNESCO) and Daniel Raventós (Universitat de Barcelona and President of Red Renta Básica), who gave a lecture on the scope of Basic Income with regard to the problems that will be raised during the Conference. For further information, contact cordoba@apdha.org

13. NEW LINKS


The Campaign for Universal Inheritance
This UK website proposes a one-time basic capital grant financed out of inheritance taxes for Britain for the purpose of creating greater equality of opportunity. It can be found on the web at: http://www.universal-inheritance.org.

Wikipedia on Basic Income
Wikipedia is a free, on-line encyclopedia written by its readers. Anyone can write or edit a Wikipedia article. The sight now contains a short article on basic income, some of which seems to be taken from the USBIG site. If you want to read or improve this article, go to: http://en.wikipedia.org/wiki/Guaranteed_minimum_income.

Global Justice Movement:
An article on the global justice movement website, entitled “transforming” money discusses universal basic income as a part of monetary form. Go to http://www.seek2know.net/money2.html for a direct link to the article, or to http://www.globaljusticemovement.net/admin/articles.htm for the global justice movement.

14. LINKS AND OTHER INFO


For links to dozens of BIG websites around the world, go to http://www.usbig.net/links.html. These links are to any website with information about BIG, but USBIG does not necessarily endorse their content or their agendas.

The USBIG Network Newsletter
Editor: Karl Widerquist
Research: Paul Nollen
Copyediting: Mike Murray and the USBIG Committee

The U.S. Basic Income Guarantee (USBIG) Network publishes this newsletter. The Network is a discussion group on basic income guarantee (BIG) in the United States. BIG is a generic name for any proposal to create a minimum income level, below which no citizen's income can fall. Information on BIG and USBIG can be found on the web at: http://www.usbig.net.

You may copy and circulate articles from this newsletter, but please mention the source and include a link to http://www.usbig.net. If you know any BIG news; if you know anyone who would like to be added to this list; or if you would like to be removed from this list; please send me an email: Karl@Widerquist.com.

As always, your comments on this newsletter and the USBIG website are gladly welcomed.

Thanks,
-Karl Widerquist, USBIG Coordinator. Karl@Widerquist.com