Terry Sarten: Basic income provides liberation and health

UP IN THE AIR: The Swiss choice on a universal income, though voted down, has opened up the issue for other countries round the world.

I see that the Swiss have just held a referendum that included a question about establishing a basic income for all its citizens regardless of their situation.

The notion was not successful with only 22 per cent voting in favour. The amount suggested as a basic income in the referendum proposal was considerable a factor in the lack of support. This would have been the equivalent of 30,000 Swiss francs ($23,00) per adult plus about $6000 per child. The pitch to voters was to "ensure the introduction of an unconditional basic income, which shall enable the whole population to live in human dignity and participate in public life."

Basic income is usually described as containing four elements: universal, individual, unconditional and high enough to provide a decent standard of living.

The fact that Switzerland was even debating the concept of a basic income is in itself surprising. It is a stable country, economically and socially with relatively low unemployment of 3.5 per cent. It is one of the world's wealthy countries. Wages are high and other nations regard it as an expensive place to live.

Although the proposal was defeated, the concept has now entered public discourse. Moving it beyond the realms of social economists into the streets and homes of citizens. Observers note this may have been the goal. Acceptance of this novel idea may come over time but the rabbit is now out of the hat.

The Swiss experiment has certainly generated interest all around the world with similar debates occurring. Finland is to conduct a trial of the concept, as is the city of Utrecht in the Netherlands, with pilot projects in Oakland, California and Ontario, Canada and by a charity working in Kenya. In Germany the realities of a basic income are being tested with a selected group of 26 people drawn from a ballot of 66,000 applicants. Each of those 26 is being provided with the equivalent of $1100 per month for a whole year. This amount sits in between two measures - it is half the average monthly wage in Germany and twice the amount of welfare.

The experiment is looking to see what people do and how they behave if provided with a basic income to live. Would they still go to work, remain motivated and productive in the lives? Opponents of the idea tend to gather round concerns that a basic income will result in low productivity and a high cost to governments.

The Germany experiment Mein Grundeinkommen (My basic income) is being privately financed by crowdfunded donations. Although it is seen as a creation of the left it has also gathered some support from the right. Michael Bohmeyer, started the My Basic Income project in 2014. He sees potential for a basic income providing a boost to creativity with people able to work creatively without worrying about security.

Participants are chosen at random from applicants and are free to use the money as they wish. The results, the basic income does not seem to prompt them to quit their jobs. Bohmeyer says that the one thing participants all report is that they're able to sleep much better. "But, ostensibly, not a lot changes: The students keep studying, the workers keep working, and the pensioners are still pensioners. But there is a big change that takes place in their minds. People feel liberated and they feel healthier."

Now we are hearing the politician starting to talk about basic incomes here in New Zealand as we collectively reel at the news that people, entire families, are living in cars because they cannot afford somewhere to live. The government inaction on the rapidly evolving housing emergency is a disgrace. All it requires is a capital gain tax on house sales and - swoosh the housing boom will deflate to a realistic level. That is a basic idea that can do more to address why people are living in cars while treasury fiddle with the concept of a basic income.

-Terry Sarten is a Whanganui based writer, social worker and musician. Feedback: tgs@inspire.net.nz