The basic income was popularized by the economist Milton Friedman in the 1960s as a "negative income tax."
Those struggling to make ends meet in Finland could soon get some extra cash, courtesy of the government. The Nordic nation is considering plans to hand over 800 tax-free euros to citizens every month. And it’s not just for citizens who are strapped for cash, paying each of its 5.4 million people $876 tax-free a month.
The monthly €800 payment would replace all other welfare, social security programs, and unemployment payments, The Finnish government plans to begin testing the program in 2017.
Finland’s unemployment rate is at a 10-year high of more than 9 percent. Some fear the basic income would be unfair, with the wealthy receiving the same amount as the poor. Others worry it might make people less eager to find work, but the monthly check is designed to get people back into the workforce. For many Finnish citizens, getting a part-time or low-paying job could impact their welfare benefits, leaving them worse off than if they did not work at all.
Canada experimented with basic income in the 1970s, but when a conservative party came to power, it eliminated the program. Food Banks Canada issued a report in November calling for a return to basic income for the entire nation, saying it removes the stigma from receiving welfare.
The Netherlands has announced a basic income program in the city of Utrecht, but it will only serve citizens who would otherwise qualify for welfare. Switzerland is set to hold a referendum on a basic income program next year.
With income inequality a growing concern for nearly all countries, many have experimented with basic incomes. A 2008 academic study found that simple cash transfers were effective and cheap, keeping down administrative costs; a government grant of $100 in Colombia, for instance, cost only 70 cents.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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