The idea of giving a 'salary' simply for the fact of holding a passport of the country is confidently winning in the world.
As Novye Izvestia writes, the first country in the world to embark on such an experiment was Finland. The Finnish Social Insurance Institution (KELA) told the general public about an original and radical idea that should completely eradicate poverty as a phenomenon. According to KELA's plan, every Finn should receive tax-free 800 euros per month. These payments will replace all existing social payments and benefits in the country at the moment. As expected, first a pilot experiment will be conducted, during which Finns will receive 550 euros per month, but some benefits and allowances will be retained.
The idea of monthly payments to all citizens is supported by political parties, and also by the Prime Minister of Finland Juha Sipilä. He, by the way, explains his support by the fact that universal income will rid the country of a cumbersome and complex social protection system. Now it's up to the parliament.
The chances that the fantastic plan will be adopted and become law are high. At first glance, the idea of paying people regardless of whether they work or not, what sources of income they have, their age, gender, social status, etc., seems completely utopian. Especially given the current Finnish realities. The economy of Suomi has been almost continuously in recession for the last three and a half years. Traditionally strong industries – paper production and electronics – are in great decline, although quite recently Nokia was considered one of the leaders in the global mobile phone market. The unemployment rate rose to 11% at the beginning of last year, but dropped to 8% at the end of the year.
Given that the population of Finland is 5.4 million people, the full implementation of the proposal to benefit every Finn would cost the budget 52.2 billion euros per year. For comparison: the government set revenue at 49.1 billion euros in the 2016 budget. However, the idea of payments for holding a passport is very popular in Finnish society. Last year's polls show that the idea of 'introducing universal basic income' (as KELA's initiative is called) is supported by 69% of the country's population. Most Finns also agree on the amount: about a thousand euros a month, they believe, would be quite enough for a normal life.
Sociologists are now asking: what will recipients do with 'free' money and how will such payments affect unemployment? So far, sociological data is in favor of 'universal income'. Many experiments and studies show that most people who have a permanent source of livelihood do not lead idle lives.
For example, a study conducted in Uganda shows that those who receive such assistance usually improve themselves and raise their educational level and qualifications. They work more than their less fortunate colleagues and earn more.
Moreover, in rich countries people slightly reduce their working day. They often spend the freed time with children, use it for self-improvement. If these social calculations are to be believed, there is no particular reason to fear that all Finns, receiving 800 euros a month, will just stop working. The danger is much more likely that the government simply cannot handle such a heavy burden.
Calculations aside, the Finnish example has proven contagious. For instance, this year a pilot experiment is starting in the Dutch city of Utrecht and in several other cities of the kingdom. They will pay citizens simply for the fact of living in the city. The outcome of the experiment will show whether it should be extended to the whole country.
And in Switzerland, they are already actively preparing to introduce their own version of 'universal basic income'. On June 5, a nationwide referendum will be held, where participants will have to answer one question: do they want to receive 2.5 thousand Swiss francs (2250 euros) monthly just for being Swiss? Children are also included in the Swiss model of universal income, only they are offered to pay four times less than adults – 625 francs per month.
Unlike the Finns, the Swiss already know where they will get the necessary 208 billion francs, which, by the way, is almost a third of the country's GDP – 30%. As reported by The Local, almost three-quarters – 73.5% or 153 billion francs – are proposed to be taken from tax revenues, and the remaining 55 billion from the social insurance fund. True, the Swiss authorities, unlike the Finnish ones, are not thrilled with the proposal of a group of intellectuals to introduce 'universal basic income'. They admit that they are forced to hold a nationwide referendum on this issue because the authors of the proposal managed to collect the necessary 100 thousand signatures. However, this does not stop the federal government and parliament from campaigning for citizens to reject the proposal.
Nevertheless, the idea of 'universal basic income' also has strong support in Switzerland. According to polls, 49% of citizens of this Alpine confederation support the idea of monthly payments to all holders of Swiss passports. However, for the proposal to be adopted, not only over 50% of voters nationwide must vote in favor, but also a majority in all cantons.
Opponents of the idea of payments point out that it originated not in Europe, but in the countries of the Persian Gulf. There, local monarchs generously distributed petrodollars to their subjects and, with the help of various subsidies, social payments and benefits, maintained social peace and stability in their kingdoms and emirates. However, their countries did not become a paradise on earth.
With the fall in energy prices, the generous flow of subsidies to the subjects of Arab monarchies is drying up altogether. Now the emirs and kings of the Persian Gulf are fearfully waiting for what will happen when they cannot buy the loyalty of their subjects. The events of the 'Arab Spring' convince us that the consequences could be the most terrible.