CNNMoney reports that Finland is about to institute an experimental guaranteed basic income:
Finland has started a radical experiment: It’s giving 2,000 citizens a guaranteed income, with funds that keep flowing whether participants work or not.
The program, which kicks off this month, is one of the first efforts to test a “universal basic income.” Participants will receive €560 ($587) a month — money that is guaranteed regardless of income, wealth or employment status.
The idea is that a universal income offers workers greater security, especially as technological advances reduce the need for human labor. It will also allow unemployed people to pick up odd jobs without losing their benefits.
The initial program will run for a period of two years. Participants were randomly selected, but had to be receiving unemployment benefits or an income subsidy. The money they are paid through the program will not be taxed.
If the program is successful, it could be expanded to include all adult Finns.
The results will be interesting, but, sadly, I’m afraid not as interesting as might be. For one thing the influence on behavior of a two year program is likely to be different from that of a permanent one. I would expect more participants to seek work in a two year program than would be the case with a permanent one.
Additionally, I’m not sure how applicable the results of such an experiment in a country with a population of 5 million, 90% of whom are ethnic Finns and 95% of whom are culturally Lutheran, in which the people speak a difficult language spoken nowhere else on earth and with a 5% immigrant population is to, say, a highly diverse country of 330 million, 15% of whom are immigrants. The Finnish language is probably a higher barrier than any wall.
Don’t remember if you’ve commented on the underlying story in the link below:
Top Ex-White House Economist Admits 94% Of All New Jobs Under Obama Were Part-Time
Not atypically for a Zero Hedge headline, the story isn’t exactly what the headline purports it to be, but there’s enough truth to make it very unsettling. But it’s your kind of thing, commentary-wise.
No, I didn’t comment on it when it came out. I thought it was obvious: total compensation has declined for many workers.
The interesting thing to me is that an economist close to the President, ostensibly one of the best in his field, seemed legitimately surprised by what he found. What fucking data had that idiot been looking at all these years? If that’s the quality of insight the President was getting….
Unfortunately from the US perspective this experiment can only really support a negative conclusion. Finland is too small and too. . . Finnish. . . to serve as a proof of concept for us, but if the experiment fails it will be a case of, “Even tiny Finland couldn’t make it work. . .”
I don’t suppose we can convince Canada to try it out? Much better petri dish.
Here you go Michael, Canada is experimenting with it
https://www.google.com/amp/s/amp.theguardian.com/world/2016/oct/28/universal-basic-income-ontario-poverty-pilot-project-canada
CuriousOnlooker:
Next let’s get Canada to try out various diets.
Did I ever tell you about the lament I once read in a Toronto (I think) newspaper? To the effect that they (the Canadians) could have had American technology, British traditions, and French cuisine but ended up with American traditions, French technology, and British cuisine.
Maybe that’s why I never look at moving to Canada. It’s hard to get worked up over a country where the national dish is the donut. And there’s the weather. I’ve already done Italy, but can you imagine what the lira would be worth if the Euro collapses? It’d be a real estate fire sale. And given the political excitability of the Italians, maybe with real fire.
Typical Canadian modesty. Deep down, Canadians think as a suburb of Toronto once said of itself relative to Toronto, “Canada, the country above America’
And what can be said about poutine? I also seem to recall that the late Anna Russell once remarked that Canada was the only country in the world whose flag was a soup can label.