Is introducing basic income a good idea? “It leads to fewer bullshit jobs”

The discussion about basic income is being stimulated in Amsterdam, among other places, where a group of citizens took matters into their own hands. On their own initiative, they collect money to provide five Amsterdammers with a basic income for a year. The gentle protest movement Collective Capital must ensure system change, according to initiator Denise Harleman.

‘Free money’

In Amsterdam, De Groenen, the Basic Income Party and the Pirate Party, who together formed a list, made basic income one of the most important spearheads in recent municipal elections. However, not all political parties are enthusiastic about a basic income. Not surprisingly, financial advisor Hinrich Slobbe emphasizes. “We Dutch are protestant colored and find the idea of ​​’free money’ very difficult.”

The Central Planning Bureau (CPB) and Social and Cultural Planning Bureau (SCP) to conclude in the report ‘Possible poverty policy’ that a basic income makes social security more accessible. Fewer administrative and bureaucratic actions need to be performed. Citizens with a basic income no longer need to apply for benefits or allowances. The tax system would also become much easier, partly through the abolition of discounts and surcharges.

Because it is precisely by introducing a basic income that it will be easier for citizens to keep an overview of their own finances. They may make more sensible financial decisions, so that they are less likely to run into problematic debts, the CPB and SCP report predict. Not only that, but households are also climbing out of poverty more quickly.

Less bullshit jobs

Financial advisor Slobbe also points to less red tape with the introduction of a basic income. He adds: “It also leads to fewer bullshit jobs that only have to do with legislation and regulations. The current system is built on the basis of benefits and allowances with unnecessary checks and bureaucracy.”

In addition, according to the financial adviser, it will put an end to the multitude of study grants, various assistance provisions and procedures surrounding mandatory applications. “The emphasis will be more on self-development.”

Local initiatives

GroenLinks has already discussed the introduction of a basic income several times in Amstelveen. According to councilor Stieneke Kruijer, the party has now organized three information meetings on this subject. “The benefits affair could have been prevented if there had been a basic income.” PvdA Haarlem has indicated that it is positive about experiments with a basic income in the municipality.

D66 Hoorn also prefers to see the basic income introduced today rather than tomorrow and is looking with great interest at the results of Collective Capital. Candidate councilor Sabine Bruijne says she wants to investigate whether a similar initiative can also be realized in Hoorn.

Nevertheless, politicians and experts also point to possible negative effects of introducing a basic income. If everyone from the age of 18 receives a standard amount per month that is enough to provide for daily living, people may lack the incentive to go to work, Slobbe also explains.

Decrease in willingness to work

And that while we already have a large number of open vacancies. At the end of March, there were 85.7 thousand open vacancies in North Holland. With this number, our province is number 2 of all provinces. Nevertheless, research by Leiden University shows that there is no link between basic income and decrease in willingness to work†

The CPB and SCP further conclude in the report that the unconditional character can be counterproductive. Everyone receives a basic income, even people with a higher income, even though they do not need support in principle. Because this income group pays more tax, this is partly rectified, but this can lead to a negative labor market supply. More people may choose to work one day less.

In addition, the costs of a basic income are high, concludes Slobbe. These quickly run into 12 to 13 billion euros per month. “Of course that’s a lot of money,” says the financial advisor, “but on the other hand, this is already being spent on benefits and allowances. With the basic income, it just takes a different shape.”

Insecure

In the research The Basic Income: why would we (not) want this? basic income as a means of combating poverty is questioned. The level of the basic income cannot be guaranteed for a longer period of time. Depending on politics, the amount could shift.

According to one of the researchers, Ingrid Robeyns, professor of Ethics at the University of Utrecht, it is difficult to estimate the consequences of basic income, which makes it difficult to properly map out the pros and cons.

For example, according to the report to which Robeyns cooperated, too little attention was paid to alternative forms. It may be that basic income has a positive effect, but other forms of policy may have a greater effect. Extensive research into the details and alternatives are therefore of great importance, according to the report, in order to arrive at a well-considered judgment.