Finland will hand out cash to 2000 jobless people to test universal basic income
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Re: Finland will hand out cash to 2000 jobless people to test universal basic income
#2How is it "universal" if recipients are required to be jobless?
Re: Finland will hand out cash to 2000 jobless people to test universal basic income
#3How is it "universal" if recipients are required to be jobless?
It's a test. Here's what the article says about the motivations behind this test:
>> Now, the Finnish government is exploring how to change that calculus, initiating an experiment in a form of social welfare: universal basic income. Early next year, the government plans to randomly select roughly 2,000 unemployed people — from white-collar coders to blue-collar construction workers. It will give them benefits automatically, absent bureaucratic hassle and minus penalties for amassing extra income.
>> The government is eager to see what happens next. Will more people pursue jobs or start businesses? How many will stop working and squander their money on vodka? Will those liberated from the time-sucking entanglements of the unemployment system use their freedom to gain education, setting themselves up for promising new careers? These areas of inquiry extend beyond economic policy, into the realm of human nature.
Basically, no one knows how humans/societies will react to such a hand-out, and this is trying to figure out if an eventual universal income will be effective.
Also, this quote from later in the article:
>> Mr. Saloranta has his eyes on a former Nokia employee who is masterly at developing prototypes. He only needs him part time. He could pay 2,000 euros a month (about $2,090). Yet this potential hire is bringing home more than that via his unemployment benefits.
>> “It’s more profitable for him to just wait at home for some ideal job,” Mr. Saloranta complains.
>> Basic income would fix this, he says: “It would activate many more unemployed people.”
Re: Finland will hand out cash to 2000 jobless people to test universal basic income
#4tl;dr
Finland is going to selecting 2,000 unemployed individuals, at random, and offering them cash without strings. Current unemployment schemes, they believe, hold back individuals from finding part time work / any work because the benefits outweigh the job opportunities. They hope that this new scheme promotes people to take work and have an adequate safety net to prevent homelessness and hunger.
Re: Finland will hand out cash to 2000 jobless people to test universal basic income
#5Jobless people generally cannot earn additional income while collecting unemployment benefits or they risk losing that assistance.
Worst. Idea. Ever.
I know -- it's a common feature of income support systems, including here in the US.
I don't know whether UBI is going to prove workable or not. But even if it doesn't, if we could just redesign the systems we do have so they never give recipients a disincentive to work more, that would be a huge, huge improvement.
Re: Finland will hand out cash to 2000 jobless people to test universal basic income
#6Another limited duration trial (two years). What's the point? It's not going to measure the real effect. People will know it is going to run out and behave differently than if it was permanent.
Re: Finland will hand out cash to 2000 jobless people to test universal basic income
#7Jobless people generally cannot earn additional income while collecting unemployment benefits or they risk losing that assistance. Worst. Idea. Ever. I know -- it's a common feature of income support systems, including here in the US. I don't know whether UBI is going to prove workable or not. But even if it doesn't, if we could just redesign the systems we do have so they never give recipients a disincentive to work…
And taking a job once should not permanently disqualify someone from long-term aid programs like social security.
Re: Finland will hand out cash to 2000 jobless people to test universal basic income
#8Another limited duration trial (two years). What's the point? It's not going to measure the real effect. People will know it is going to run out and behave differently than if it was permanent.
Well it's probably better than just instituting a program and hoping it works. Ideally, all government programs should be subject to measurement and re-evaluation.
Re: Finland will hand out cash to 2000 jobless people to test universal basic income
#9Will Finland admit publicly when it fails or will they just hide their idea as if it never happened?
Remember Bio-Fuel? How progressive and wonderful it was suppose to be? Until it caused a global food shortage and suddenly none of the media ever talked about it again.
Re: Finland will hand out cash to 2000 jobless people to test universal basic income
#10How is it "universal" if recipients are required to be jobless?
So UBI is fundamentally a safety-net; insurance, if you will.
The "universal" quality is that all people will be eligible for UBI. Everyone will receive the difference between what they make and what UBI guarantees.
It's sort of like the popular phrase in the U.S. - "everyone is guaranteed the same opportunity but not the same outcome". Thus, while all will have access to UBI, the payout will be determined by individual circumstances.
Regarding Finland's program, it's likely they had to choose a group of individuals who were easiest to justify paying UBI under current popular-thought. Therefore, they chose a group already receiving or eligible for unemployment/assistance and argued they were simply replacing one for the other. That is of course just an educated guess on my part.
So, yes, UBI itself is in fact universal although the initial rollout, or test, is highly compartmentalized.
Edit: As someone pointed out, I'm probably confusing UBI with GMI - Guaranteed Minimum Income.
It's starting to feel like we're discussing rules on laying a foundation while others are already fast at work on their fourth and fifth floor, i/e, what's the point of giving everyone a ladder if the roof is consistently growing out of reach?