Geoff Crocker on Post-Covid Economics

Apr 19, 2021 | News

Photo by Ferran Fusalba Roselló on Unsplash

Geoff Crocker of the FRIBIS Team ‘Financing UBI’ (FUBI) writes in “Prospect” magazine, describing the complex way the state currently borrows money from itself to finance COVID aid spending, and how much simpler it would be if it consistently and openly created the money itself debt-free, and paid it out to everyone by means of a basic income – without danger of inflation. 
In fact, Crocker says, this is clearly taking place anyway in financing the lockdown, but it is clouded by traditional orthodox complex concepts, which make it inefficient, as well as unnecessarily creating risk free margins for intermediaries in the stock market.

The full article is available on the Prospect Magazine website.

Tender for Post-Doctoral Researcher in Bath, London

Apr 12, 2021 | News

The Institute for Policy Research (IPR) at the University of Bath is seeking a post-doctoral research associate for the FRIBIS-Team Microsimulations.
The Research Associate will conduct microsimulation research for the group and organise its collaborative activities, under the direction of Prof Nick Pearce, Director of the IPR. Expertise and experience in using microsimulation models such as EUROMOD is essential.
The post is offered for two years in the first instance, with the possibility of extension in due course.The full tender is available on the website of the Bath University

Expedition BGE starts recruiting cities for pilot project

Mar 2, 2021 | News

“Expedition Basic Income” is looking for cities and communities all over Germany to start pilot projects for an unconditional basic income. Until March 21, 2021, residents have the chance to register on their website. In all places, in which 1% of the population registers as interested, a peoples initiative targeting a referendum is started for this place. If this is successful, each participating person from this place will receive a basic income for 3 years.

BIEN Congress 2021 – Call for Papers

Feb 17, 2021 | News

The Basic Income Earth Network World Congress – BIEN Congress 2021 – will be held this year in Glasgow, Scotland, August 18th-21st.
(Assuming pandemic protection measures allow).

If you would like to contribute in front of an international audience of experts at the congress, please submit the completed contribution form by April 16, 2021.

Papers presented at the BIEN Congress may be submitted for the 2021 Basic Income Studies Prize by October 1st, 2021.

Funding Basic Income by dept-free Sovereign Money – Talk by Geoff Crocker

Feb 5, 2021 | Events, News

Announcement text:

Debt-free sovereign money is now here. How come?
Because the Covid crisis has demonstrated its feasibility.

During the Covid crisis, many holders of government debt, such as mutual funds, foreign central banks, and hedge funds, had to sell their bonds to cover huge withdrawals by their own investors.

Central banks like the US Fed and the UK Bank of England intervened by purchasing their government’s bonds to hold up their price in order to keep yields down. Purchases cumulated to >$2 tn in the US and £875 bn in the UK.

As an unintended consequence, central banks now hold substantial government debt. Sure, the government has to pay interest to the central bank, and must ultimately redeem the debt, but this is one government agency in debt to another, ie it’s a zero sum game. It equates to debt-free sovereign money.

So the challenge now is why not issue debt-free sovereign money directly to fund basic income and the reversal of austerity cuts? This proposal is similar to Modern Money Theory, but differs from MMT by the important distinction that money should be created debt-free.

Introduction of the Net Basic Income to the German Parliament’s Petitions Committee

Oct 30, 2020 | News

 

On the 26.10.2020, Prof. Dr. Bernhard Neumärker introduced his model of a Net Basic Income to the German Parliament’s Petitions Committee, with the intent of a direct implementation in times of the Corona-Crisis, and with the option to extend it to a full Basic Income once the crisis has passed.

Susanne Wiest’s Petition to implement a Universal Basic Income during the crisis was signed by 176.134 people, making it one of the most signed petitions in german history. In order to be able bring forward a concrete implementation proposal at the hearing, she asked Prof. Neumärker to illustrate his model.

Delegates of all parties of the german parliament asked questions about the Net Basic Income. Governmental representatives were also questioned about the government’s relief efforts during the Corona crisis in comparison to the possibilities of a Net Basic Income, as well as the possibilities of a quick implementation.

The delegates’ questions revealed a mainly critical attitute towards the model. They adhered to the priciple of individualized and requirement based support, even though it currently doesn’t reach all those in need, as Susanne Wiest and Prof. Neumärker emphasized. Susanne Wiest also pointed out that a Universal Basic Income constitutes a basic right to an income for everyone.

Some delegates suspected a discrepancy between the idea of a Universal Basic Income and the model of a Net Basic Income. An immediate implementation of the Net Basic Income was declared impossible by the governmental representatives. One delegate asked why people whose income isn’t affected by the crisis – such as parliamental delegates – should receive a basic income along with the people who actually need the support. The Net Basic Income in fact tries to give an answer to that question.

The hearing only allowed a rudimentary illustration of the Net Basic Income. With that, it is under discussion, and allows a further elaboration.

In comparison to the hearling of Susanne Wiest’s first petition regarding a Universal Basic Income ten years ago, the delegates were better informed and moreopen to the idea of a Basic Income. However, the parliament decided to reject the petition.

 

You can watch here the recording of the hearing on the german parliament’s media center and a discussion with Susanne Wiest, where she talks about the hearing and the next steps for the petition (both videos in german).

Media reports

BIEN: Bundestag considers Emergency Basic Income Petition

Berliner Zeitung: Could basic income help Germany tackle the effects of Corona?

 

Media reports in german

taz: Bedingungslose Hilfe in der Krise

Berliner Zeitung: Bedingungsloses Grundeinkommen: Aus der Utopie wird eine Möglichkeit

Badische Zeitung: “Viele fallen bei Corona-Hilfen durchs Raster”

Neue Westfälische: Warum sich diese Frau für ein Bedingungsloses Grundeinkommen stark macht

Enorm Magazin: So könnte das Krisen-Grundeinkommen aussehen.

Bayrischer Rundfunk: Ist jetzt der richtige Zeitpunkt?

Enno Schmidt at the Financial University in Moscow, “Growth or Recession: What to Expect?”

Nov 26, 2019 | News

At the invitation of the Financial University under the Government of the Russian Federation in Moscow, mediated by the Russian PhD student at the Götz Werner Professorship (GWP) at the University of Freiburg, Alexandra Pilyus, Enno Schmidt travelled as a research assistant of the GWP to the centenary celebration of the university to the international forum “Growth or Recession: What to Expect?”

The aim of the trip was to give some presentations on Universal Basic Income (UBI) at the congress, to meet Joseph E. Stiglitz, Nobel Prize Laureate in Economics and former Chief Economist of the World Bank, to discuss possibilities of scientific research on BGE and the Freiburg Institute for Basic Income Studies (FRIBIS), to meet activists of the Russian Basic Income Movement and to start building a FRIBIS group with professors of the Financial University in Moscow.

In his presentation, Joseph Stiglitz pointed out many things and called for a number of things to which a BGE could be an answer. He showed, for example, that typical financial incentive systems are neither effective nor efficient, in fact they are counterproductive, that non-material incentives have more impact, that societies/economies perform better when inequality is low and when social/economic action takes into account the impact on others. Rules and norms, he stressed, play a major role. He deplored instability and the loss of trust in institutions caused by the exploitative behaviour of the financial sector. The social contract, Stiglitz said, had been broken. Uncertainty slows down progress, hinders innovation. Economic security increases the necessary willingness to take risks. The economy must be there for the people, not the people for the economy.

A renewal of the social contract? Trust as a social basis, more stability and economic security for all not at least for more risk taking innovation? A renewal of social and economic norms? Reducing inequality, reducing the misconception that financial incentives generate worthy output? All this fits in with an attitude that can consider an Unconditional Basic Income.

Enno Schmidt reminded Mr. Stiglitz that he had made a statement on the 2016 referendum on the introduction of an UBI in Switzerland. He said at that time: An Unconditional Basic Income is the right step for Switzerland.
This time, however, his opinion on the BGE was rather incomprehensible and negative. He did not believe, he said, that people would be happy without meaningful work. The state must ensure that everyone can find a paid job. A life completely without work, perhaps in spiritual immersion, was probably attractive only to a few, he mused. There is also a lack of money for such a basic income. Money is scarce, he stated. And the basic income has to be high enough to really live on it.

In Russia, Unconditional Basic Income is still little known and not discussed. Who wants money should work. If the money just would be given without a request, people wouldn’t work and would be depraved. That is unanimously and unquestionably the attitude against a UBI. In addition, in Russia – as in other countries of the former Soviet socialism – the first thing that comes to people’s mind with the idea of a UBI is communism. A similarity is seen between the UBI and the ideals of communism. Under the objective of these ideals, much blood was shed, much suffering and oppression took place in the real existing Soviet socialism. They do not want that again. However, the assessment of the Soviet period is not so unanimous. Some think it was better then than today. There were more opportunities, things were fairer, and many good achievements were dismantled after the end of the Soviet Union. But also today the people of Russia are proud of their achievements and believe that as a country they are doing better and performing better than every other country. Just as people in other countries claim it about their country.

Under the mediation of Alexandra Pilyus and in talks with Enno Schmidt, a team of top-class academics from the Financial University came together for a FRIBIS group.

Vladimir Putin’s advances toward a guaranteed minimum income, higher pensions, state subsidies for children and families, etc. are going in the direction of a change in the social contract, in which a UBI is no longer completely unthinkable, but could even be seen as a simplification, an increase in effectiveness and efficiency among the goals set.

Report from the Opening Ceremony

Oct 28, 2019 | News

Freiburg Institute for Basic Income Studies (FRIBIS) has been established at the University of Freiburg, Germany. The opening ceremony took place on Oct. 28th.

FRIBIS is intended to become an international center for UBI investigation and cooperation.

Scientists from various faculties and basic income protagonists from civil society, NGOs, activists, work together in interdisciplinary topical groups to examine the unconditional basic income in all its facets, to scientifically accompany UBI projects and to contribute research results for implementation strategies. Knowledge transfer from science meets the challenges of civil society and strengthens its opportunities.

Founding directors of the Competence Network FRIBIS at the University of Freiburg are professors each from the Institute of Computer Science, the Institute of Psychology, the Institute of Ethnology, the Institute of Educational Science, the Faculty of Theology and Prof. Dr. B. Neumärker of the Götz Werner Chair of Economic Policy and Constitutional Economic Theory.

In May of this year, the Götz Werner Professorship was established with backing of the rector of the University of Freiburg. The donors of the Götz Werner Chair are Beatrice and Götz W. Werner. Götz Werner is the founder of the dm drugstore-market group with 60 thousand employees today. In the last decades he already has been one of the most important voices for UBI in Germany. The Götz Werner Chair was established for the head of the department of Economic Policy and Constitutional Economic Theory, Prof. Dr. Bernhard Neumärker. At the Götz Werner Chair, Enno Schmidt is in charge of public effectiveness, transfer and networking. FRIBIS is the next level based on the Götz Werner Chair.

Interdisciplinary teams already exist on following topics: “VAT-financed basic income”, among others with H. Pape, founder of “Generation Basic Income Austria” and Prof. Dr. Dr. F. Schneider from Linz / “Psychology of the Basic Income”, a cross-faculty research program / “The management of UBI NGO’s” / “Foreign Aid Basic Income”, UBI as strengthening the resilience of societies in particular in Africa against the sellout of the country and resources / “Sanction-free / HartzPlus”, an ongoing pilot-project in Berlin, the first realization of a guaranteed basic income in Germany, among others with project manager Helena Steinhaus and Prof. Dr. R. Wieland from the University of Wuppertal. Further national and international teams and cooperations are in preparation. FRIBIS will also organize conferences and create a young generation research team.

Contact: enno.schmidt@vwl.uni-freiburg.de
Website: https://www.fribis.uni-freiburg.de

A Freiburg Discourse on UBI

Oct 25, 2019 | News

Within the event series “Freiburg Discourses” (Heinrich Röder), Prof. Dr. Friederike Spiecker and Prof. Dr. Bernhard Neumärker met on 25 October 2019 at the University of Freiburg for a discussion on Unconditional Basic Income.

Prof. Spiecker is co-author of the book “Irrweg Grundeinkommen” (with Prof. Dr. Heiner Flassbeck), Mr Neumärker holds the Götz Werner Chair for Economic Policy and Constitutional Economic Theory at the University of Freiburg and is founding director of the “Freiburg Institute for Basic Income Studies” (FRIBIS).

It was remarkable that Prof. Spiecker clearly and empathically saw and addressed the undervaluation of women’s work and non-profit unpaid work in general, the degrading and rather paralysing than promoting practice of the Hartz IV legislation, including its magnifying effect on the low-wage sector, structural unemployment and the increasingly precarious work and living situation of very many people, but that she resorted to the primacy of gainful employment and the demand for higher minimum wages to solve the problems. Where one could have written behind the description of the problem as a solution: “Unconditional Basic Income”, she relied on the old economic methods of calculation.

Prof. Neumärker took up statements from her lecture in order to disenchant the old way of thinking and transfer it into a logical understanding of Unconditional Basic Income.

Both were largely in agreement in the description of the problem, diametrically opposed in the perspective of the solution.

By Enno Schmidt

First meeting of the VATUBI Group

Oct 14, 2019 | News

Value Added Tax and Universal Basic Income, is this a congenial couple?
One asks about its social component, the other about its financing.
A UBI as a disbursed tax allowance for the VAT included in consumer prices?
Can tax collection be switched to a sole and then high rate of VAT?
What is the effect?

On suggestion of Helmo Pape, founder of “Generation Basic Income” in Austria, on October 14th and 15th an Austrian team of scientists met with Prof. Dr. Bernhard Neumärker and Enno Schmidt in Freiburg to establish a FRIBIS group about the effects of a change in the tax system on consumption tax/value-added tax, and VAT as a form of financing the UBI.

The working group will start its proceedings in spring 2020.

Scientific team:

  • Dr. Elisabeth Dreer, Senior Sientist at the Research Institute for Banking of the Johannes Kepler University Linz, Austria
  • Prof. Dr. Dr. h. c. mult. Friedrich Schneider, former Prof. of the Department of Economic Policy, Research Institute for Banking, Johannes Keppler University of Linz
  • Dr. rer. soc. oec. Florian Walkobinger, Society for Applied Economic Research, Innsbruck, Austria
  • Prof. Dr. Bernhard Neumärker, Götz Werner Chair for Economic Policy and Constitutional Economic Theory, University of Freiburg, Germany

Transfer team:

  • Helmo Pape, Banker, Founder “Generation Basic Income”, Vienna, Austria.
  • Enno Schmidt, artist, co-founder of the initiative “Basic Income Switzerland”, Research Assistant at the Götz Werner Chair at the University of Freiburg.