According to an experiment in Oakland, California, basic income also has a positive effect on the mental side (from Unsplash).
2021 was a year in which basic income attracted more attention around the world as in 2020 due to the recession and worsening unemployment rate due to the spread of the new coronavirus infection (COVID-19).
Even before the spread of the new coronavirus infection, basic income was already being watched around the world due to the social background such as the declining birthrate and aging population and widening disparities, in addition to the progress of AI (artificial intelligence). .. In particular, with regard to AI, there are many discussions such as "AI robs work."
In this article, I would like to take a look back at the events related to basic income in 2021, with the expectation that "will it be realized next year !?"
Related article: An experiment where you can get 150,000 yen a month !? Looking back on basic income in 2020In March, in Stockton, California, USA, the result overturned speculation that "Introducing basic income will only increase the number of people who do not work!" "The amount of payment will only be used for cigarettes and alcohol!" It was revealed.
From February 2019, Stockton started a monthly basic income experiment of 500 dollars (about 54,000 yen). The recipients are 125 people who live in Stockton and are 18 years of age or older and are randomly selected from the condition that their household income is less than the median of $ 46,033 (about 5 million yen). The average age of beneficiaries is 45, of which 69% are women.
This time, Dr. Stacia West of the University of Tennessee, Dr. Amy Castro Baker of the University of Pennsylvania and others have released a research report entitled "Preliminary Analysis: SEED's First Year". This is a summary of the preliminary survey results of the basic income from February 2019 to February 2020, before the outbreak of the new coronavirus infection in the United States.
First and foremost, of course, one of the benefits gained by introducing basic income was that it was able to reduce fluctuations in monthly income. The household income fluctuated by 67.5% in the unpaid group, but the fluctuation was suppressed to 46.4% in the paid group.
Recipients were also able to get a full-time job. The group that received the payment had 28% full-time employment in February 2019, and one year later, in February 2020, it increased by 12% to 40%. On the other hand, the unpaid group had 32% full-time employment in February 2019 and 37% in February 2020, a change of only 5%.
Payments were made on the 15th of each month, or around the 15th of each month, with a prepaid debit card, and total spending data was collected. As a result, monthly spending is highest for "food," followed by "sales and commodities," which are thought to be food purchases at large stores such as Wal-Mart. In total, it accounts for about 60%. In addition, the payment was used for utilities, daily necessities, transportation, insurance, medical care, etc. Tobacco and alcoholic beverages were less than 1%.
Basic income also had a positive effect on the mental side. The paid group was healthy, had less depression and anxiety, and improved well-being. The couple, Pam in their late 20s and Jim in their early 30s, who were actually paid, used to have panic attacks due to financial conditions and childcare stress, but now they are anxious. Has decreased significantly, and there has been less quarrel between husband and wife.
In summary, this report concludes that basic income has a causal link to financial stability and improved mental and physical health. He added that while $ 500 was good for rent, childcare, and medical care, it wasn't enough to cover the exorbitant costs of daily necessities.
Related article: Basic income experiment of 54,000 yen a month "The number of people who do not work increases" "Used for cigarettes and alcohol" is wrong, California, USAIn the same March, the city of Oakland, California, USA, will start an experiment on "basic income (minimum income guarantee)" that provides low-income households of colored races with a monthly payment of $ 500 (about 54,000 yen). Announced. Basic income will start by the summer of 2021, and payment will continue for a year and a half.
This time, the basic income experiment announced by Oakland is named "The Oakland Resilient Families program". The financial resources will be $ 6.75 million (about 740 million yen) collected from private donors such as the national charity "Blue Meridian Partners".
Participation in the program requires that the income is 50% or less of the median of the region (about $ 59,000 / year for a family of three) and that there is at least one child under the age of 18. .. Half will be allocated to people with incomes below 138% of the federal government's poverty level (about $ 30,000 / year for a family of three). The usage of the paid amount is not specified at all.
You may be wondering why the program covers not only income but also race. The program aims to reduce the difference between rich and poor by race.
Oakland Mayor Libby Schaaf told Yahoo! Finance that "it is well known that the difference between rich and poor in this country is 10 times higher. In Oakland, white and black families The median income is three times different, "he said. The program is said to be the first attempt to qualify race for basic income.
Speaking of Auckland, the influence of "gentrification (regional upsizing, urban affluence)" cannot be overlooked. For example, in San Francisco, California, the art community is said to have lost 70% due to rising rents.
According to AFPBB News, Oakland Mayor Libby Schaaf responded to criticisms such as "Introducing basic income will only increase the number of people who do not work!" And "The amount paid will only be used for cigarettes and alcohol!" He argues against the results of a $ 500 monthly basic income experiment that began in February 2019 in Stockton, California.
Related article: Start of basic income experiment of 54,000 yen per month California, USA, aiming to eliminate the disparity between races up to 10 timesIn mid-May, San Francisco, California, USA, finally launched a "Basic Income (Minimum Income Guarantee)" pilot program for 130 artists for $ 1,000 a month. It seems that the payment has started.
The basic income that started payment this time was announced in 2020 by the mayor of San Francisco City, London Breed. According to past Artforum International reports, it is probable that applications were accepted until April 15, 2021 and the winners were notified by April 20, 2021.
This basic income is aimed at artists, and the money provided can be used for food, rent, art supplies, and anything else that an individual wants. The program is targeted at specific groups such as artists and has been criticized by critics for being different from "Universal Basic Income," which provides unconditional and uniform cash to all citizens.
On the other hand, rents in San Francisco have continued to rise in recent years. The American movie "The Last Black Man in San Francisco," which was released in Japan on October 9, 2020, is also a work based on "gentrification (regional upsizing, urban affluence)" in San Francisco.
San Francisco is said to have lost 70% of the arts community due to such rising rents. There are also positive voices saying that the basic income pilot program announced this time may help maintain artists in the city.
Related article: Basic income of 105,000 yen per month finally started to be paid, San Francisco targeted for artistsIn mid-August, Tesla co-founder and CEO Elon Musk announced that he would develop a humanoid robot "Tesla Bot" in "Tesla AI Day". He mentioned the need for "Universal Basic Income (UBI)".
The robot, which Elon Musk said will be developed, is about 173 cm tall (5 feet 8 inches) and weighs about 57 kg (125 pounds). It is equipped with eight cameras and a full-size drive computer, and has an autopilot system. You can hold the bolt in your hand and attach it to the car with a wrench, or go to the store to get groceries.
Elon Musk also mentioned that when the robot is completed in the future, those who want to be released from manual labor may be released. Labor is the foundation of the economy, so when he complained, "I think we need universal basic income in the long run," applause arose from the venue.
Related article: Elon Musk "Needs basic income in the long run" Motivated to develop humanoid robotsIn mid-September, it was reported that the movement toward the introduction of "Universal Basic Income (UBI)" began again in response to the spread of the new coronavirus infection in Switzerland. The founding committee aims to provide all people living in Switzerland with a monthly payment of about 2,500 Swiss francs (about 305,000 yen).
In 2016, Switzerland held a referendum asking whether to introduce basic income, and 76.9% of voters were rejected by throwing it in opposition. This time, in addition to the existing tax revenue and social welfare system, the launch committee also contributed to multinational companies such as GAFA (Initials of Google, Amazon, Facebook, Apple / * Facebook changed to Meta on October 28, US time). It should be done, and the method of raising funds has been clarified.
Switzerland has adopted a direct democracy and is holding a referendum not only on basic income but also on lockdowns and same-sex marriages associated with the spread of the new coronavirus infection. Recently, a referendum on the legislation of same-sex marriage was held, and the approval was 64.1%, more than half. Legalization of same-sex marriage will be possible from July 1, 2022.
It is said that if 100,000 signatures by voters are collected within three years, an initiative (national initiative) will be established and the referendum will be promoted.
Related article: Will a basic income of 305,000 yen a month be realized? Move again in Switzerland, which was rejected five years agoAt the end of October, the Chicago City Council of Illinois, USA, introduced a trial of "Basic Income (Minimum Income Guarantee)" that provides 5,000 low-income earners with $ 500 a month (about 57,000 yen) for one year. Passed. The target audience is those with an annual income of $ 35,000 or less, and is randomly selected.
The financial resources for this basic income are about the amount that Chicago received in the "American Rescue Plan", which was established by the Biden administration in response to the spread of the new coronavirus infection and was established for a total of about $ 1.9 trillion (about 200 trillion yen). It is based on 2 billion dollars (about 2.3 billion yen).
The Washington Post and others report that this basic income is endorsed by most of the 50 city council members in Chicago. Meanwhile, 20 members of the Chicago Parliamentary Black Parliamentary Union called for these funds to be used for anti-violence and reparations programs. There are also critics who say that basic income discourages people from participating.
Related article: Decided to introduce basic income that will provide 5,000 yen a month to 5,000 people Financial resources are over 2 trillion yen, Chicago, USAAlso at the end of October, Mayor Eric Garcetti of Los Angeles, California, USA, applied for a basic income program that unconditionally pays $ 1,000 a month to more than 3,200 households in the city. Announced that it has started accepting. He has already closed the recruitment on November 7, local time.
To apply for the Basic Income Program in Los Angeles this time, you must be "resident in the city of Los Angeles", "be 18 years old or older", "have at least one dependent child, or be pregnant". It is necessary to meet the conditions of "income is below the federal poverty level" and "experienced financial and medical difficulties due to the effects of the new coronavirus infection".
Mayor Garsetti has proposed a $ 24 million basic income guarantee project run by the Los Angeles Family Regional Investment Authority (CIFD) with a budget for 2021-2022. Several members of the city council will make additional investments, funding a total of $ 38 million for more than 3,200 households.
Related article: Basic income that provides 3200 households with more than 100,000 yen a month Financial resources are about 4.3 billion yen, California, USAIn August, the editorial department of Ledge.ai published an article about basic income from economist Tomohiro Inoue, who is known for his research on the impact of AI on employment and basic income. If you are interested, please check the following articles.
Related article: "We should leave welfare protection even with the introduction of basic income" Reasons for the attention economist: Interview with Tomohiro Inoue Related article: "I was surprised at the special fixed-rate benefit" Why economists famous for basic income get hot : Interview with Tomohiro Inoue