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LATEST NEWS UPDATES | Case for targeted basic income -Puja Mehra

Case for targeted basic income -Puja Mehra

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published Published on Jan 27, 2017   modified Modified on Jan 27, 2017
-The Hindu

The idea of a basic income is not new. The first known suggestion on an unconditional universal basic income for all adults regardless of other income sources was from Thomas More. Centuries later, in 1918, Bertrand Russell discussed a basic income sufficient for necessities as central to the social model combining the advantages of anarchism and socialism that he argued for in Proposed Roads to Freedom. “A certain small income, sufficient for necessities should be secured to all, whether they work or not, and that a larger income — as much larger as might be warranted by the total amount of commodities produced — should be given to those who are willing to engage in some work which the community recognises as useful.” Even on finishing education, no one should be compelled to work, and those who choose not to work should receive a bare livelihood and be left completely free, he wrote.

With anti-globalist populism on the rise, several advanced countries are considering whether they should start mailing cheques to the unemployed. Finland’s is the best known trial. Two thousand randomly selected unemployed Finns will for the next two years receive €560 in guaranteed tax-free incomes every month. The payments will continue even when they try out odd jobs. If the pilot is successful, the programme could be extended to all adult Finns.

Economists are advocating universal basic incomes for fighting inequality, slow wage growth, advancing automation and fears that immigrants will take away jobs. While free trade and technological advances have grown national incomes, not every individual is better off. There are winners and losers. Redistributive government intervention is needed so that no one is left worse off.

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The Hindu, 27 January, 2017, http://www.thehindu.com/opinion/columns/Case-for-targeted-basic-income/article17098187.ece?homepage=true


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