Guaranteed minimum income (GMI), also called minimum income, is a system of social welfare provision that guarantees that all citizens or families have an income sufficient to live on, provided they meet certain conditions. Eligibility is typically determined by citizenship, a means test, and either availability for the labour market or a willingness to perform community services. The primary goal of a guaranteed minimum income is to reduce poverty. If citizenship is the only requirement, the system turns into a universal basic income.
A system of guaranteed minimum income can consist of several elements, most notably:
Basic income means the provision of identical payments from a government to all of its citizens. Guaranteed minimum income is a system of payments (possibly only one) by a government to citizens who fail to meet one or more means tests. While most modern countries have some form of GMI, a basic income is rare.
In 1795, American revolutionary Thomas Paine advocated a citizen's dividend to all United States citizens as compensation for "loss of his or her natural inheritance, by the introduction of the system of landed property" (Agrarian Justice, 1795).
French Emperor Napoleon Bonaparte echoed Paine's sentiments and commented that 'man is entitled by birthright to a share of the Earth's produce sufficient to fill the needs of his existence' (Herold, 1955).
In 1963, Robert Theobald published the book Free Men and Free Markets, in which he advocated a guaranteed minimum income (the origin of the modern version of the phrase).
In 1966, the Cloward–Piven strategy advocated "overloading" the US welfare system to force its collapse in the hopes that it would be replaced by "a guaranteed annual income and thus an end to poverty".
I am now convinced that the simplest approach will prove to be the most effective—the solution to poverty is to abolish it directly by a now widely discussed measure: the guaranteed income.— from the chapter titled "Where We Are Going"
In 1968, James Tobin, Paul Samuelson, John Kenneth Galbraith and another 1,200 economists signed a document calling for the US Congress to introduce in that year a system of income guarantees and supplements.
President Richard Nixon proposed reforms to the welfare program in 1969, where a minimum income would be paid to poor families. Contrary to popular belief, Nixon was critical of the idea of a guaranteed universal basic income. The proposal by Nixon passed in the House but never made it out of committee in the Senate.
In 1973, Daniel Patrick Moynihan wrote The Politics of a Guaranteed Income, in which he advocated the guaranteed minimum income and discussed Richard Nixon's Guaranteed Annual Income (GAI) proposal.
In 1987, New Zealand's Labour Finance Minister Roger Douglas announced a Guaranteed Minimum Family Income Scheme to accompany a new flat tax. Both were quashed by then Prime Minister David Lange, who sacked Douglas.
In 2017, Harry A. Shamir (US) published a book "Consumerism, or Capitalism Without Crises" in which the concept was promoted by another label, as a way to enable our civilization to survive in an era of automation and computerization and large scale unemployment. The book also innovates a method to fund the process, tapping into the underground economy and volunteerism.
Tax revenues would fund the majority of any GMI proposal. As most GMI proposals seek to create an earnings floor close to or above poverty lines amongst all citizens, the fiscal burden would require equally broad tax sources, such as income taxes or VATs, in order to fund such expenditures. To varying degrees, a GMI might be funded through the reduction or elimination of other social security programs such as unemployment insurance.
Another approach for funding is to acknowledge that all modern economies use fiat money and thus taxation is not necessary for funding; However, the fact that there are no financial constraints does not mean other constraints, such as on real resources, do not exist. A likely outcome based on the economic theory known as Modern Monetary Theory would be a moderate increase in taxation to ensure the extra income would not cause demand-pull inflation; This hypothetical Chartalist approach can be seen in the implementation of quantitative easing programs where, in the United States, over three trillion dollars were created without requiring taxes.
In July 2013, the Cypriot government unveiled a plan to reform the welfare system in Cyprus and create a 'Guaranteed Minimum Income' for all citizens.
In 1988, France was one of the first countries to implement a minimum income, called the Revenu minimum d'insertion. In 2009, it was turned into Revenu de solidarité active (RSA), a new system which aimed at solving the poverty trap by providing low-wage workers a complementary income; thus encouraging activity.
The United States has multiple social programs that provide guaranteed minimum incomes for individuals meeting certain criteria such as assets or disability. For instance, Supplemental Security Income (SSI) is a United States government program that provides stipends to low-income people who are either aged (65 or older), blind, or disabled. SSI was created in 1974 to replace federal-state adult assistance programs that served the same purpose. Today the program provides benefits to approximately eight million Americans. Another such program is Social Security Disability Insurance (SSD or SSDI), a payroll tax-funded, federal insurance program. It is managed by the Social Security Administration and is designed to provide income supplements to people who are physically restricted in their ability to be employed because of a notable disability, usually a physical disability. SSD can be supplied on either a temporary or permanent basis, usually directly correlated to whether the person's disability is temporary or permanent.
An early guaranteed minimum income program in the U.S. was the Aid to Families with Dependent Children (AFDC), established by the Social Security Act. Where previously the responsibility to assist needy children lay in the hands of the states, AFDC transferred that authority to the federal government. Over time, the AFDC was often criticized for creating disincentives to work, leading to many arguing for its replacement. In the 1970s, President Richard M. Nixon proposed the Family Assistance Program (FAP) which would replace the AFDC. FAP was designed to fix many of the problems that the AFDC suffered from, particularly the anti-work structure. Presidential nominee George McGovern also proposed a minimum income in the form of a Universal Tax Credit. Ultimately, neither of these programs were implemented. Throughout the decade, many other experimental minimum income programs were carried out in cities throughout the country, such as the Seattle-Denver Income Maintenance Experiments. In 1996, under President Bill Clinton, the AFDC was replaced with the Temporary Assistance for Needy Families program. This would block grant funds to the states to allow them to decide how aid would be distributed.
Another guaranteed minimum income program in the U.S. is the Earned Income Tax Credit. This is a refundable tax credit that gives poorer families cash assistance every year. The EITC avoids the welfare trap by subsidizing income, rather than replacing it.
Minimum income has been increasingly accepted by the Brazilian government. In 2004, President Lula da Silva signed into law a bill to establish a universal basic income. This law is primarily implemented through the Bolsa Família program. Under this program, poorer families will receive a direct cash payment via a government issued debit card. Bolsa Família is a conditional cash transfer program, meaning that beneficiaries will receive their aid if they accomplish certain actions. Families who receive the aid must put their children in school and participate in vaccination programs. If they do not meet these requirements, they will be cut off from aid. As of 2011, approximately 50 million people, or a quarter of Brazil's population, were participating in Bolsa Família.
Canada has experimented with minimum income trials, both in the past and in the present. The most prominent past example is the Mincome experiment, which ran in Manitoba in the 1970s. Mincome provided lower income families with cash transfers to keep them out of poverty. The researchers conducting Mincome found that it did not disincentivize work. The only recipients who reduced their number of hours worked were single mothers, who could now afford to stay at home and raise their children, and young men who preferred to stay in school rather than work. Budget shortfalls resulted in the shuttering of the program.
In 2017, the province of Ontario began an minimum income experiment. Approximately 4000 citizens began to receive a stipend based on their family situation and income. Recipients of this program can receive upwards of $10,000 per year. Government researchers are using this pilot as a way of testing to see if a minimum income can help people meet their basic needs. On August 31st, 2018, Premier Doug Ford announced that the pilot would be cancelled at the end of the current fiscal year.
The 1972 United States presidential election was the 47th quadrennial presidential election. It was held on Tuesday, November 7, 1972. Incumbent Republican President Richard Nixon defeated Democratic Senator George McGovern of South Dakota.
Nixon easily swept aside challenges from two Republican congressmen in the 1972 Republican primaries to win re-nomination. McGovern, who had played a significant role in reforming the Democratic nomination system after the 1968 election, mobilized the anti-war movement and other liberal supporters to win his party's nomination. Among the candidates he defeated were early front-runner Edmund Muskie, 1968 nominee Hubert Humphrey, and Congresswoman Shirley Chisholm, the first African-American to run for a major party's presidential nomination.
Nixon emphasized the strong economy and his success in foreign affairs, while McGovern ran on a platform calling for an immediate end to the Vietnam War, and the institution of a guaranteed minimum income. Nixon maintained a large and consistent lead in polling. Separately, Nixon's reelection committee broke into the Watergate Hotel to wiretap the Democratic National Committee's headquarters, a scandal that would later be known as "Watergate". McGovern's campaign was further damaged by the revelation that his running mate, Thomas Eagleton, had undergone psychiatric electroshock therapy as a treatment for depression. Eagleton was replaced on the ballot by Sargent Shriver.
Nixon won the election in a landslide, taking 60.7% of the popular vote and carrying 49 states, and he was the first Republican to sweep the South. McGovern took just 37.5% of the popular vote, while John G. Schmitz of the American Independent Party won 1.4% of the vote. Nixon received almost 18 million more votes than McGovern, and he holds the record for the widest popular vote margin in any United States presidential election. The 1972 presidential election was the first since the ratification of the 26th Amendment, which lowered the voting age from 21 to 18. Within two years of the election, both Nixon and Vice President Spiro Agnew resigned from office, the former due to Watergate and the latter to a separate corruption charge, and Nixon was succeeded by Gerald Ford.2007 Finnish parliamentary election
Parliamentary elections were held in Finland on 18 March 2007. Early voting was possible from the 7–13 March. The 200 members of the Eduskunta were elected from 15 constituencies.
Election themes included a reduction of income tax and VAT on food. A proposal for a guaranteed minimum income was introduced by some parties. The election debates were characterised by the high economic growth in Finland in recent years, which was thought to mean the government would have extra money to use on welfare services and transfer payments. Largest advertising budgets were spent by the Coalition Party (2,46 M€) and the Center Party (2,48 M€) with SDP far behind (1,37 M€).Altogether, 2,004 candidates were nominated, 799 of whom were women. About three-quarters of the candidates were nominated by parties currently represented in Parliament. The number of female MPs rose as 84 women were elected (formerly 75), now comprising a record 42% of the 200 MPs.
According to the newspaper Helsingin Sanomat, the number of advance voters rose in comparison with the previous election in 2003. After the Tuesday before the Sunday election, when advance voting ended, the voter turnout had already reached 29.2%, which was more than at the same point in the 2003 elections. However, total voter turnout, at 67.8%, fell short of the 2003 figure, 69.7%, reaching a new low since the 1939 elections.
Many prominent MPs decided not to stand in the election. Former Prime Minister (1995–2003) and Speaker of the outgoing Parliament, Paavo Lipponen left his seat, as did the fifth-longest serving minister of all time, Jan-Erik Enestam, and former Left Alliance party leader Suvi-Anne Siimes, who had harshly criticized her party after her resignation as chairman in 2006. Some former MPs made a comeback, former Finance Minister and presidential candidate Sauli Niinistö and the first European Green minister, Pekka Haavisto, former minister and National Coalition chairman Pertti Salolainen, former foreign minister Paavo Väyrynen and rock musician Pertti "Veltto" Virtanen being the most famous examples. Niinistö also set a record for the highest number of personal votes, 60,498, which is almost twice as high as the previous record, and with the application of the d'Hondt method used in Finland, as many as four other National Coalition candidates were elected to Parliament on the strength of these votes.
The date of the election was near to the 100th anniversary of the first Finnish parliamentary elections, which were held on 15–16 March 1907, and were the first elections held under universal suffrage in Europe.Basic income
A Basic Income, also called Universal Basic Income (UBI), Citizen's Income (CI), Citizen's Basic Income (CBI) (in the United Kingdom), Basic Income Guarantee (BIG) (in the United States and Canada), or Universal Demogrant, is a periodic cash payment delivered to all on an individual basis, without means test or work requirement. The incomes would be:
Unconditional: A Basic Income would vary with age, but there would be no other conditions: so everyone of the same age would receive the same Basic Income, whatever their gender, employment status, family structure, contribution to society, housing costs, or anything else.
Automatic: Someone’s Basic Income would be paid weekly or monthly, automatically, into a bank account or similar.
Nonwithdrawable: Basic Incomes would not be means-tested. Whether someone's earnings increase, decrease, or stay the same, their Basic Income will not change.
Individual: Basic Incomes would be paid on an individual basis, and not on the basis of a couple or household.
As a right: Everybody legally resident would receive a Basic Income, subject to a minimum period of legal residency, and continuing residency for most of the year.Basic income can be implemented nationally, regionally or locally. An unconditional income that is sufficient to meet a person's basic needs (at or above the poverty line), is sometimes called a Full Basic Income, while if it is less than that amount, it is sometimes called Partial. A welfare system with some characteristics similar to those of a Basic Income is a negative income tax, in which the government stipend is gradually reduced with higher labour income.
Some welfare systems are sometimes regarded as steps on the way to a Basic Income, but because they have conditionalities attached they are not Basic Incomes. If they raise household incomes to specified minima they are called guaranteed minimum income systems. For example, Bolsa Família in Brazil is restricted to poor families and the children are obligated to attend school.There are several political discussions that are related to the basic income debate. Some examples include the debates regarding robotisation, AI (artificial intelligence), and the future of work. One key issue in these debates is whether robotisation and AI will significantly reduce the number of available jobs. Basic income often comes up as a proposal in these types of discussions.Basic income in Canada
Basic income in Canada has been debated since at least the 1930s with the Social Credit movement, but as in other parts of the western world the discussion has increased during the last decades. Different names have been used, for example Guaranteed Annual Income (GAI), "Social Dividend" and "basic income". More specifically there have been plans to implement either a guaranteed minimum income or basic income; these are referred to here as NIT (for negative income tax) and UD (for Universal Demogrant) respectively.Basic income pilots
Basic income pilots are smaller-scale preliminary experiments which are carried out on selected members of the relevant population to assess the feasibility, costs and effects of the full-scale implementation of basic income or the related concept of negative income tax, including partial basic income and similar programs. The following list provides an overview of the most famous basic income pilots, including projects which have not been launched yet but have been already approved by the respective political bodies or for the negotiations are in process.Gesy
Gesy is the universal health insurance system of Cyprus.
The original Gesy legislation was passed in 2001, but the three government bills and regulations introducing the system were only agreed by parliament on 16th June 2017 after prolonged negotiations led by Yiorgos Pamboridis, the health minister. It is to be fully operational by July 1, 2020.The running of these service is in the hands of the Health Insurance Organisation.Islamic socialism
Islamic socialism is a term coined by various Muslim leaders to describe a more spiritual form of socialism. Muslim socialists believe that the teachings of the Quran and Muhammad—especially the zakat—are compatible with principles of economic and social equality. They draw inspiration from the early Medinan welfare state established by Muhammad. Muslim socialists found their roots in anti-imperialism. Muslim socialist leaders believe in the derivation of legitimacy from the public.Joseph Charlier
Joseph Charlier (20 June 1816 – 6 December 1896) was a Belgian self-described jurist, writer, accountant, and merchant. He was one of the earliest proponents of a citizen's income or guaranteed minimum income, preceding even the "state bonus" scheme published by British Dennis Milner (1892–1956) in 1920.
Charlier was influenced by Charles Fourier. According to John Stuart Mill, Fourierism required that "in the distribution, a certain minimum is first assigned for the subsistence of every member of the community, whether capable or not of labour." Fourier and his foremost disciple Victor Prosper Considérant criticized civilization for failing to provide a minimum to the poor, but feared widespread idleness and a collapsing civilization if workers previously depending on "repugnant" labor for income had a choice. Considérant, in some of his writings, suggested that society guarantee a right to work in order to compensate them for denying equal access to natural resources. ("La condition sine quâ non-pour la Légitimité de la Propriété est donc que la Société reconnaisse au Prolétaire le droit au travail et qu’elle lui assure au moins autant de moyens de subsistance, pour un exercice d’activité donné, que cet exercice eût pu lui en procurer dans l’État primitif.")
Charlier agreed with Fourierism that the central problem was the improvement of the condition of the disinherited classes ("amélioration du sort des classes déshéritées"). He rejected "the right to assistance", a solution addressing effects rather than the cause, and the "right to work/organization of labor" which he expected to result in an extension of state control. Instead, Charlier proposed a scheme with a basic income paid unconditionally to every member of society, regardless of need or ability to work.
In 1896 at age 80, Charlier died at Brussels where he was born.José Roberto Magalhães Teixeira
José Roberto Magalhães Teixeira was a Brazilian politician, twice mayor of the municipality of Campinas, in the state of São Paulo.
Born in Andradas, state of Minas Gerais, on 18 June 1937, he moved to Campinas in 1957, in order to study dentistry at the Pontifical Catholic University. He became widely known by his nickname, "Grama", because he had formerly lived in the city of São Sebastião da Grama.
Simultaneously with his work as a dentist, Grama began his political career as candidate to councilman in 1968, running under the Movimento Democrático Brasileiro (MDB) opposition party. He was not elected, but he persisted and in 1976 he was elected a vice-mayor of Campinas. In 1982 he was elected mayor with 44,65% of valid votes. In 1988, he was considered the best mayor of Brazil by a poll carried out by the prestigious newspaper Folha de S.Paulo. Among his many endeavours, he was the first mayor to institute in Brazil a Guaranteed Minimum Income Grant program, in order to reduce social inequalities. In the same year, Grama helped to found the PSDB (Partido da Social Democracia Brasileira).
After finishing his mandate as mayor, Dr. Magalhães Teixeira ran for a federal representative of the state of São Paulo in 1990 and was elected with the largest ballot of the history of Campinas, with 136.522 votes. His mandate was marked by his active participation in the process which culminated in the impeachment of President Fernando Collor de Mello in 1992. In the same year, Magalhães Teixeira was elected again for mayor of Campinas, with a vote of 224.365 votes. In 1994, he was nominated as coordinator in São Paulo of the campaign which elected President Fernando Henrique Cardoso.
Affected by a hepatic cancer, he was unable to finish his second mandate, deceasing on February 29, 1996. He was homaged by a massive popular manifestation in his interment.
A cultural center in Campinas, an industrial technical school (SESI) in Taboão da Serra, and the Campinas Beltway (Anel Viário) are named after him.Kiryat Bialik
Kiryat Bialik (Hebrew: קִרְייַת בְּיַאלִיק) (also Qiryat Bialik) is a city in the Haifa District in Israel. It is one of the five Krayot suburbs to the north of Haifa. In 2017 it had a population of 39,582.The city was named after the poet Hayim Nahman Bialik.Klaus-Uwe Gerhardt
Klaus-Uwe Gerhardt (born 1955) is a German economist, columnist, and author. His scientific work concentrates on labour economics and social policy. He works as economic teacher und scientist.
Through several books and articles he contributes to the sociopolitical discourse.
Gerhardt was a pioneer in the German debate on Guaranteed minimum income (GMI) in the early 1980s. GMI is a proposed system of social welfare provision that guarantees a basic income for all citizens or families.List of advocates of basic income
This is a list of notable persons or organizations that have articles on Wikipedia and are advocates of basic income.Minimum wage
A minimum wage is the lowest remuneration that employers can legally pay their workers. Equivalently, it is the price floor below which workers may not sell their labor. Although minimum wage laws are in effect in many jurisdictions, differences of opinion exist about the benefits and drawbacks of a minimum wage. Supporters of the minimum wage say it increases the standard of living of workers, reduces poverty, reduces inequality, and boosts morale. In contrast, opponents of the minimum wage say it increases poverty, increases unemployment (particularly among unskilled or inexperienced workers) and is damaging to businesses, because excessively high minimum wages require businesses to raise the prices of their product or service to accommodate the extra expense of paying a higher wage and some low-wage workers "will be unable to find work...[and] will be pushed into the ranks of the unemployed." Supply and demand models suggest that there may be welfare and employment losses from minimum wages. However, if the labor market is in a state of monopsony (with only one employer available who is hiring), minimum wages can increase the efficiency of the market. There is debate about the effect of minimum wages.Modern national laws enforcing compulsory union membership which prescribed minimum wages for their members were first passed in New Zealand and Australia in the 1890s. The movement for minimum wages was first motivated as a way to stop the exploitation of workers in sweatshops, by employers who were thought to have unfair bargaining power over them. Over time, minimum wages came to be seen as a way to help lower-income families. Most countries had introduced minimum wage legislation by the end of the 20th century.Multitudes
Multitudes is a French philosophical, political and artistic monthly journal founded in 2000 by Yann Moulier-Boutang. It is thematically situated in the theoretical framework of the seminal work Empire by Antonio Negri and Michael Hardt. The journal, like the book, focuses on the further elaboration of the philosophical and political thought of the Italian operaismo, but seems also to rest on Foucault, Althusser, and Deleuze's thought. It is a successor to the review Futur Antérieur edited by Jean-Marie Vincent (1934-2004) and Toni Negri, at the dep. of political science - University Vincennes Paris 8. It is a member of the Eurozine network.
Multitudes's name comes from the Spinozist eponymic concept. It has been thought by Toni Negri as an alternative to the classic conception of the people, class consciousness, or nation-state. It publishes a lot on themes relating to the information society and the knowledge economy, supporting in particular the thesis of a "cognitive labour" and "affective labour" which can not be measured by standard means of labor-time, and also insists on the cooperative aspects of production in modern society. For this reason and others, it tends to argue in favour of a guaranteed minimum income.
Contents published by Multitudes are mostly in French, although some articles are translated (in English, Spanish, etc.) and are under a Creative Commons license.Negative income tax
In economics, a negative income tax (NIT) is a welfare system within an income tax where people earning below a certain amount receive supplemental pay from the government instead of paying taxes to the government.
Such a system has been discussed by economists but never fully implemented. According to surveys however, the consensus view among economists is that the "government should restructure the welfare system along the lines" of one. It was described by British politician Juliet Rhys-Williams in the 1940s and later by United States free-market economist Milton Friedman.Negative income taxes can implement a basic income or supplement a guaranteed minimum income system.
In a negative income tax system, people earning a certain income level would owe no taxes; those earning more than that would pay a proportion of their income above that level; and those below that level would receive a payment of a proportion of their shortfall, which is the amount their income falls below that level.Per Reidarson
Per Reidarson (27 May 1879 – 21 January 1954) was a Norwegian composer and music critic.
In the early twentieth century he was an acknowledged composer. For his body of work he was granted kunstnerlønn, a guaranteed minimum income for artists, by the Norwegian state in 1938. He had also worked as a music critic in the newspapers Tidens Tegn and Arbeiderbladet.However, he eventually joined the political party Nasjonal Samling and began writing for their official publication Fritt Folk. In 1941-1942, while Norway was occupied by Germany, he held the lecture Norsk og unorsk i musikken ('Norwegian and Un-Norwegian in Music'), anger directed at the perceived "Jewish and Marxist" Modernist music.In 1945, when the occupation of Norway ended, Reidarson was marginalized and immediately lost his artist's income.Poverty in Cyprus
Poverty in Cyprus is not well documented, yet is still considered a major problem by the Cypriot government. Due to strong kinship bonds among extended families, poverty in Cyprus primarily affects those outside kinship networks, such as immigrants, divorcees and singles from small families. One study found a strong correlation between increased poverty and small family size. Poverty is also more likely to affect the elderly than the young, as a result of income to pensions raising the dependency levels.Welfare state in Cyprus
In 2014, the Cyprus Guaranteed Minimum Income and Social Benefits Law was passed to replace the previous Public Assistance and Service Law. It covers all EU citizens and also long-term residents with legal status, and its main intention is to shelter those with higher risk of poverty and to guarantee the recipients with basic standard of living.
All EU citizens and Cypriots are applicable to the program if they have lived in Cyprus for more than five years before the application and will continue to reside there. Similar with conservative welfare states, Cyprus’s Minimum Income (MI) Law adopted the principle of subsidiarity, which means that family unit must serve as the first defending line for individuals. For Cyprus’s MI Law, eligibility for help is based on the total needs of a family unit. A family is qualified for benefits as long as its total income cannot satisfy its total need. Additionally, property ownership is also calculated based on family unit. The assumption is that members inside a family must collaborate and help each other. Only when they together as a social unit cannot afford to live well would the state came to help as the last-resort safety net. Moreover, the basic income value for a person that has zero income reported is set €480 per month, which is more than half of the respective poverty threshold. The value is set in an ad hoc basis to adapt to varying levels of national income and inflation.Benefits of Cyprus’s MI Law are given based on means testing. Potential recipients need to apply and demonstrate that they have certifiable needs, and that they’re really out of means except government support. To truly distribute benefits to those that need them the most, the Cyprus’s MI Law sets an age limit (above 28 years old) to eliminate young people who’re not earning much but are enjoying high standard of living with their parents from the list beneficiaries. It also has an activation strategy aimed to encourage the unemployed to actively seek jobs. Recipients would be required to accept available jobs in their relative fields, and those who’re unemployed voluntarily would be excluded from the program.