Basic Income:
Progressive Dreams Meet Neoliberal Realities
John Clarke
I have to say that the one really common thread that I see running through all of the notions of a progressive BI is that they pay great attention to explaining how nice their systems would be but give little if any thought to the concrete prospects of implementation. Before looking further at these deficiencies and proposing an alternative approach, it might be useful to consider more seriously the neoliberal version that is hanging like a sword over all our heads.
If governments today, as they intensify the neoliberal agenda, are starting to consider the possibilities of BI, I see three factors at work. Firstly, there is the not unimportant issue of legitimacy. Particularly because they are being provided with a generous amount of ‘progressive’ cover, they are able to present their deliberations on BI as a responsible weighing of the common good. The Ontario Liberals stand out as international champions in this regard. Their BI pilot project consultations, have enabled them to put in place yet another round of fake dialogue, with the empty promise of a “better way” diverting attention as they push people even deeper into poverty. The World Bank and the IMF have been worrying out loud about the backlash against their austerity agenda and its devastating impacts. That IMF economists are themselves musing about BI, is perhaps significant in this regard. It advances their agenda but can be dressed up to look progressive. It may be the best thing for the institutions of global capitalism since the myth of ‘poverty reduction’.
The second element of BI that I think is of interest to the architects of neoliberalism is that it can fine tune economic coercion as they create an ever more elastic workforce based on the most precarious forms of employment. The income support systems that emerged out of the Poor Law tradition, stressed intense restrictions and moral policing. Along with horribly inadequate benefit levels, this has been very useful in driving people into low waged work to an unprecedented extent. It may, however, be time to rethink this to a degree. If people are moving between poverty wages and poverty level benefits more frequently in a precarious job market, perhaps they can be more effectively prodded into the worst jobs with less intrusive benefit systems. A less rule bound delivery of poverty income, that gives people a chance of retaining their housing, may be needed to keep them job ready. Linked to this, of course, is the huge boost to the employers of a BI system that constitutes a form of wage top up. Provided the payment is meagre, it will not impede the flow of low paid workers but it will mean that their employers receive a subsidy that absolves them from having to pay living wages or come under pressure to increase the amount they do provide.
Thirdly, the great advantage of neoliberal BI is that the inadequate and dwindling payment it provides turns those who receive it into customers in the marketplace. In my opinion, BI would be far from the best way to strengthen the social infrastructure at any time but in the context of an intensifying agenda of austerity and privatization, it is a recipe for disaster. It's really about the commodification of social provision. Your payment may actually be less conditional and somewhat larger but, as you shop through the privatized remains of the social infrastructure, with inadequate means and very few rights, you are dramatically worse off. That, in my view, is what is being prepared by those who will actually implement a system of BI and the hopes and wishes to the contrary of its progressive advocates don't count for very much.
https://socialistproject.ca/2017/01/b1350/
Progressive Dreams Meet Neoliberal Realities
John Clarke
I have to say that the one really common thread that I see running through all of the notions of a progressive BI is that they pay great attention to explaining how nice their systems would be but give little if any thought to the concrete prospects of implementation. Before looking further at these deficiencies and proposing an alternative approach, it might be useful to consider more seriously the neoliberal version that is hanging like a sword over all our heads.
If governments today, as they intensify the neoliberal agenda, are starting to consider the possibilities of BI, I see three factors at work. Firstly, there is the not unimportant issue of legitimacy. Particularly because they are being provided with a generous amount of ‘progressive’ cover, they are able to present their deliberations on BI as a responsible weighing of the common good. The Ontario Liberals stand out as international champions in this regard. Their BI pilot project consultations, have enabled them to put in place yet another round of fake dialogue, with the empty promise of a “better way” diverting attention as they push people even deeper into poverty. The World Bank and the IMF have been worrying out loud about the backlash against their austerity agenda and its devastating impacts. That IMF economists are themselves musing about BI, is perhaps significant in this regard. It advances their agenda but can be dressed up to look progressive. It may be the best thing for the institutions of global capitalism since the myth of ‘poverty reduction’.
The second element of BI that I think is of interest to the architects of neoliberalism is that it can fine tune economic coercion as they create an ever more elastic workforce based on the most precarious forms of employment. The income support systems that emerged out of the Poor Law tradition, stressed intense restrictions and moral policing. Along with horribly inadequate benefit levels, this has been very useful in driving people into low waged work to an unprecedented extent. It may, however, be time to rethink this to a degree. If people are moving between poverty wages and poverty level benefits more frequently in a precarious job market, perhaps they can be more effectively prodded into the worst jobs with less intrusive benefit systems. A less rule bound delivery of poverty income, that gives people a chance of retaining their housing, may be needed to keep them job ready. Linked to this, of course, is the huge boost to the employers of a BI system that constitutes a form of wage top up. Provided the payment is meagre, it will not impede the flow of low paid workers but it will mean that their employers receive a subsidy that absolves them from having to pay living wages or come under pressure to increase the amount they do provide.
Thirdly, the great advantage of neoliberal BI is that the inadequate and dwindling payment it provides turns those who receive it into customers in the marketplace. In my opinion, BI would be far from the best way to strengthen the social infrastructure at any time but in the context of an intensifying agenda of austerity and privatization, it is a recipe for disaster. It's really about the commodification of social provision. Your payment may actually be less conditional and somewhat larger but, as you shop through the privatized remains of the social infrastructure, with inadequate means and very few rights, you are dramatically worse off. That, in my view, is what is being prepared by those who will actually implement a system of BI and the hopes and wishes to the contrary of its progressive advocates don't count for very much.
https://socialistproject.ca/2017/01/b1350/
