2016 will see basic income rise up political consciousness.
Trials and referenda will take place across Europe. Should the Left support
basic income? Half a century ago, the famous psychoanalyst and Frankfurt School
theorist, Erich Fromm, examined the psychological effects of giving everyone a guaranteed
income. His thoughts are instructive. He thought it a 'great step' but that without other changes, it is not enough to really change society.
From occupying the fringes of debate just a few years ago,
basic income – the idea that the state should pay an unconditional income to
each person as of right – has swiftly climbed up the political agenda. Finland
has announced a basic income trial, Utrecht
and 19 other Dutch municipalities are planning to introduce a pilot scheme some
time in 2016 paying a small group of benefit claimants €876 a month. Also this
year, notwithstanding the opposition of the Swiss Parliament, Switzerland will
hold a referendum on the nationwide introduction of a basic income set at a
much higher level - US$ 19,800 a year.
What should be the attitude of the libertarian Left to basic
income? Is it a way of liberating people from an increasingly cruel and, in any
case vanishing, welfare system and exploitative job market? Or does it shovel
free money towards the already wealthy and save a dysfunctional capitalism from
itself?
Before jumping to conclusions, it is worth weighing the opinions
of radical thinkers throughout history on basic income. The idea is far from
new. The English revolutionary Thomas Paine proposed something similar in 1797.
And the German psychoanalyst and Frankfurt School theorist Erich Fromm advocated
‘a universal subsistence guarantee’ in his famous 1955 book The Sane Society. In 1966, he considered
the issue in more depth in an essay entitled The Psychological Aspects of the Guaranteed Income.
Individual freedom
The most important reason for accepting the concept of a
basic income, Fromm says, is that it would drastically increase the freedom of
the individual. Up to this point in history, freedom has been constrained by
the use of force on the part of rulers, but also by “the threat of starvation
against all who were unwilling to accept the conditions of work and social
existence that were imposed on them.”
A guaranteed income becomes for the first time possible in
conditions of economic abundance or, in Murray Bookchin’s phrase,
post-scarcity. This lifts the threat of starvation and makes genuine
independence feasible. “Nobody would have to accept conditions of work merely
because he otherwise would be afraid of starving – a talented or ambitious man
or woman could learn new skills to prepare himself or herself for a different
kind of occupation,” Fromm writes. “A woman could leave her husband, an
adolescent his family.”
This “right to live, regardless”, as Fromm puts it, is the
most important justification of a basic income, in my opinion. We live in
societies in the West which are stiffening the ‘threat of starvation’ just as
economic abundance becomes a realisable possibility. Over 90% of unemployed Greeks
and nearly two-thirds of Spaniards,
countries where unemployment is staggeringly high, do not receive any
unemployment benefits. An estimated 1.5 million people in Britain use food
banks. Welfare benefits have become increasingly conditional on satisfactory
‘job search’ activities, conditions which are imposed on sick and disabled
people as well, with the withdrawal of income an ever-present threat.
What this means is that many more people than before are
dependent on others, often older relatives or partners, and powerless before a
labour market eager to exploit them. Or simply destitute. Precarious ‘bullshit’ jobs, or ‘shit work’
as Spanish labour unions call them, have mushroomed. In Britain, research has
shown that spiralling flexible employment practices are causing widespread anxiety, stress and
‘depressed mental states’ because of the financial and social uncertainty they
entail.
A basic
income could restore independence and freedom to people whose lives are
increasingly blighted as a result of economic circumstances, performing a role
similar to that undertaken by trade unions and collective bargaining in the era
of full employment. “Income from labour will be renegotiated,” says Enno
Schmidt, one of the organisers of the Swiss group, Generation Basic Income. “No-one can be blackmailed with their
existence” to do work they don’t wish to. “With a basic income, I can say no to
a bad deal.”
The non-work society
Basic income can liberate people from the necessity of
making a living and allow other non-market activities to flourish that, while
not materially productive, nonetheless make life meaningful and have important
functions. This might be looking after children, artistic creation, managing a
chronic illness or education for the sake of it, not utilitarian ‘self-improvement’.
“This right to live, to have food, shelter, medical care, education etc,”
writes Fromm, “is an intrinsic human right that cannot be restricted by any
condition, not even the one that the individual must be socially ‘useful’”.
This principle, of “the right to live regardless”, whatever
someone’s personal utility might be, should, in my opinion, adorn any society that
does not seek to oppress its members. However that society is organised.
To the above activities should be added democratic
self-management of the community. Genuine
democracy is not possible in a time-pressed, hurried society. Basic income
should increase the free time available to many members of society and make
direct management of the community feasible, not just theoretically desirable.
The practices of democracy could be learnt by experience if work fades into the
background.
To many of its advocates, basic income is explicitly about
relegating the centrality of work in people’s lives, permitting a collective
breathing space for other, undirected activities to come to the fore. Marilola Wili of Generation
Basic Income maintains that the idea represents a
paradigm shift in what work means. It can
“unpredictably set human forces free in ways one may have never thought about”,
she says.
The great step
However, basic income alone will not produce the paradigm
shift that is required. “The great step of a guaranteed income will, in my
opinion, succeed,” writes Fromm, “only if it is accompanied by changes in other
spheres.” The danger of a basic income is precisely that it assumes changes in
other spheres are not necessary and merely bolts on to our current capitalist
society, leaving its deep flaws intact.
One such area is consumption. Basic income has been
presented as a solution to the lack of demand in the economy. Under this
justification, basic income becomes the ‘salvation
of capitalism’, by buttressing weak consumer buying power and replacing the
economically destructive growth of household debt and credit. Basic income stimulates
the economy and increases corporate profits while, at the same time, giving
workers more freedom and nullifying the threat of impending technological
unemployment. What’s not to like?
Actually plenty. Under this scenario, basic income becomes a
crutch that permits an ecologically and socially destructive economic system to
preserve itself, neutralising its contradictions and performing a
redistribution of wealth to blunt its oligarchic tendencies. Corporations can
continue selling endless individual gadgets, continue forming monopolies,
continue commercialising the pores of everyday life, and continue offshoring
production to areas of the globe with dirt cheap labour and transporting the
goods back to the rich world, thus causing global warming. They can continue
doing this because basic income intervenes to ensure a market for their
products in the wealthy countries.
Fromm contrasts two types of consumption; ‘maximal’
consumption which we currently have and ‘optimal’ consumption, which entails
consumption for public use through amenities like theatres, libraries and
parks. “Guaranteed income without a change from the principle of maximal
consumption would only take care of certain problems,” writes Fromm, “but would
not have the radical effect it should.”
I believe that a serious post-capitalist Left cannot just
pit good collective consumption against bad individualised consumption. Myriad
individual products make life function and liberate people from toil. But it is
abundantly clear that a radical change in consumption needs to take place. Goods
needs to be built to last, disposable consumption ended and the practice of
transporting products across the world vastly curtailed. In short, the
capitalist engine behind contemporary consumption needs to be switched off.
“Such a change from maximal to optimal consumption would require drastic
changes in production patterns,” writes Fromm, “and also a drastic reduction of
the appetite-whetting, brainwashing techniques of advertising.” This is
something basic income alone will not do. And it should be remembered that the
western lifestyle of the 1960s, the lifestyle Fromm derided as ‘maximal
consumption’, is considered healthy and moderate in retrospect by many climate
activists, compared to hyper consumption now.
However, it must be borne in mind that Fromm wrote his essay
at the height of the post-war boom and in the wealthiest country in history at
the time, the United States. In 2016, it is quite conceivable that basic income
will be employed to keep consumption going at ‘basic’ levels should a new and
drastic economic crash occur, one that cannot be bailed out by governments. Basic
income could, therefore, perform a rescue act to stop society from collapsing.
Which is rather a different thing to providing a long-term surrogate for the
perpetually expanding market that capitalism requires but cannot itself
manufacture.
Not just for the precariat
It should also be recognised that basic income, in its pure
form, is not just for the so-called precariat. The Dutch pilots are for benefit claimants
only but under most basic income proposals everyone gets the same, wealthy and
poor alike. A basic income would be paid to all
adults. It is conceivable that a basic income would allow the wealthy or
comfortably off to stop working altogether, become self-employed or switch to a
less demanding job. These are quite plausible scenarios, and many wealthy
people do seek an escape from their high-pressure lives. But, equally, it could
also simply supply an additional mass of money to the already wealthy, an issue
that applies particularly to the’ basic income max’ proposals of $20,000 or $30,000
a year. This money could be used to buy more property or invest on the
stock market. Thus actually reinforcing inequality and bolstering financial
speculation.
Fromm concludes that the “full effect” of guaranteed income
will only happen if combined with a change in the habits of consumption, a new
humanistic attitude and a “renaissance of truly democratic methods”. He
envisages a new Lower house (he was living in the US at the time so presumably
he means the House of Representatives) which summarises “decisions arrived at
by hundreds of thousands of face to face groups, active participation of all
members working in any kind of enterprise.” He warns of the danger of a state
that nourishes all acquiring dictatorial qualities that can only be “overcome
by a simultaneous, drastic increase in democratic procedure in all spheres of
social activities.”
I believe a ‘welfare state’ that restricts itself to
automatically paying all members of society a guaranteed income would actually
have much less power than one that makes welfare provisional on myriad
conditions and intrudes
shamelessly into the lives of benefit recipients. However, Fromm is right
that the ‘great step’ of a basic income is not a panacea. Any just society
should grant its citizens economic freedom, and for that reason alone the Left
should support a basic income. But basic income does not render other changes
in society any less necessary and we should not be lulled into thinking it
could.