tanaza6 Pri Taco Filan experiment med bsinkemst- DN SE
| Economy
Philip Teir: Oddly enough, it is a relatively conservative government that
comes with the proposal
published 2016-12-13,
Two thousand randomly selected Finns will get a letter
in the mail in late December. They are all part of the
government experimented with basic income, which
was passed by the Finnish Parliament on Tuesday.
Philip teir
‘The idea has been tested in the US in the seventies, in Canada in the 80's, in villages in
India and small towns in Holland. Next year, Finland will -to the test - introduce so-called.
citizen. As of January, two thousand randomly selected, unemployed Finns to lift 560 euros
‘ax free per month instead of their regular unemployment benefits. The idea is that the
experimental group will be expanded in 2018 toalso apply to short-term worker, small
business owners and freelancers,
‘The germ of the project can be found in the government program. The Center-led
government wants to investigate how "Social protection can respond to changes in the
‘workplace." It also wants to reduce bureaucracy surrounding various social contributions.
Instead of people thrown between types of funding, itis hoped that a basic ineome may be a
more dearly defined form of grant, and in addition will be able to work without being
penalized for it in the form of declining contributions.
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wrangaot6 Philip Ter om Firtanes exparimert med basirkomst - DNS
Citizen, or basic income, is often associated with leftist polities. Oddly enough, itis a
relatively conservative government that comes with the proposal of Finland. Centre Party
‘government colleague Coalition usually normally emphasize the importance of working,
stead of raising contributions, while the True Finns hardly want to launch Finland, which
‘grants land. The experiment with the basic income has already ereated big headlines in the
international media since it was launched by the government two years ago.
‘The model has been developed by researchers at three universities and a few state
agencies, On Tuesday, parliament voted through the proposal ata first vote. The Greens and
‘the Left Alliance has long advocated citizen, but voted against, among other things, it was felt
that the experimental group is too small,
According to Professor Olli Kangas, who led the team behind the model, the project can
hopefully be expanded in 2038, When freelancers and small business owners included, one
can clearly see the effects of base earnings are at work.
According to the ideal mode! will acquire a tax-free monthly income hen then "pay back"
in the form of taxes on earned income, if income is high enough. It means that small
businesses can be idle for a month and work full time next without base earnings decreases.
According to Kangas, it would provide an increased basic security and the ability to take risks
1 the workplace.
Read more: Finnish test state citizen
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Finland
This is a commentary text. The author is responsible for the analysis and
Positions in the text,
Philip teir
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| Economy
Finland te:
published 2016-12-13,
Photo: TT
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month regardless of ‘whether they’ work or not. The
I is criticized for being too narrow and too short. It
will not give any answers, says the opposition.
Anders Bolling
Follow author
On Tuesday, cubed parliament in Helsinki through a controversial pilot project with the
citizen, or basic income as it is called in Finland.
During the consultation met proposal alot of criticism. Among other things, the number
of people considered to be included in the study, 2,000 people, being too small to be able to
give some useful results,
Ihipulww.cnsefekenomilpilip-teir-marklgt-nog-ar-dt-onrelativ-konservatv-regerng-som-kommer-med-frslage a7rangaot6 Philip Ter om Firtanes exparimert med basirkomst - DNS
Tt also thinks Haatainen from the opposition Social Democrats, She also questioned the
selection: only the unemployed included.
- One of the problems base earnings, said to solv is that people caught in the middle
between the various contributions, but this effort will obviously not give any answer to itis
‘that, given the layup, says the former Minister Hatainen, who today are Chairman of the
Parliamentary committee on social Affairs.
‘Those who will participate are randomly selected unemployed people currently receiving
unemployment benefits from Kela, the Finnish equivalent of the Social Insurance Agency.
‘Neither the students, long-term sick, pensioners and other beneficiaries, then with.
“The bill called it the seleetion is large enough to be able to “clarify whether the employment
rate ofthe experimental group who receive basic income differs from the employment rate
of the control group that follows the current system."
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basie security benefits in the day, after tax, aeording to the FPA. The experiment is
expected to reduce the Treasury the corresponding around SEK 700 millon,
Far too little money has been allocated, believes Haatainen,
She is also critical ofthe base earnings, not cut down, even if the subjects are employed
somewhere,
- Participants will receive its 560 euros even if they get a job with a salary of 6,000 euros a
‘month, ‘This is clearly the biggest problem. It also means that the experiment can never be
expanded without making major changes.
‘The compensation will remain regardless of whether you have a job or do not tend tobe seen
as one of the basic premises of a system of basic income.
According to the government should the pilot als indicate whether basic income ean
reduce poverty and social exclusion, reducing bureaucracy surrounding social contributions
and encourage the search for jobs, all in a financially sustainable way.
Haatainen do not think the trial will be able to provide the answers:
Iitputww.cnsefokenomilpilip- ee
ali nog ar-det-errelait-konservai-regering-som-kommer-mectorslaget/rangaot6 Philip Ter om Firtanes exparimert med basirkomst - DNS
- We need a much broader perspective for that to work out how our security ean best be
adapted to a changed working.
Criticism of the experiment designed not only has been heard from the opposition but
also within the government. Finland is ruled by a bourgeois coalition between the
conservative National Coalition Party, the nationalist True Finns and the Centre Party. Itis
realy only the later two that are fundamentally positive to the basic income,
But the proposal still goes through (a second vote later in the week mostly viewed asa
formality), since it was launched by the government itself and is tied tothe state budget for
‘The discussion of an unconditional basic income for citizens is very old. It was made at
the Thomas More's “Utopia” 500 years ago
Limited experiments with basic ineome has been made in countries as diverse as the United
States and Namibia.
At the moment, the question is up to date in a number of countries.
Simultaneously with the Finnish trial should « similar pilot made in the Duteh eity of
Utrecht It covers only 250 people, but these should get more money than their Finnish
counterparts, 960 euros a month. Even in the Canadian province of Ontario is the project
_going.. And in Ieeland for now The Pirate Party, a party which advocates basie income,
discussions to join the government.
Last summer upped Switzerland on the matter. There wes no
‘The arguments for basic income is both economic and political, and philosophical
character.
“the later include the idea that all citizens have the right to have their basic needs met.
An argument from the (new) liberal direction is that the welfare state today is too
bureaucratic and that the state has been too much interference. Citizen would be able to
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‘A somewhat less radical argument is simply out of the welfare state should be reformed and
simplified, and that the contributions should not be linked to paid work.
A moral objection is that basic income does not meet the requirement that the person
who receives financial support from the State should contribute something yourself.
Alef objection is that a system of basie ineome likely to act as a downward pressure on the
npat wages.
But the most common criticism is simply that the basic income is too expensive. Of course it
depends on what level tis on, but there are those who argue that itis economically
“unfeasible even ifit is on such a low level that it virtually meaningless,
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Accordingly, there are parties on both the right and the left who advocate basic income,
Among the supporters aver the years can be found Nyliberalen Milton Friedman, the Social
Democrat James Tobin and left iberal Guy Standing,
A Swedish advocate of basie income from the left hold the sociologist Roland Paulsen at Lund
University. Ife has criticized the low level of income in the Finnish trial,
Among Finnish commentators , for example, the financier Ijdrn Wahlroos for, while
economies professor Sixten Korkman is received
Finnish employers association EK is doubtful whether the basic income will reduce in
Finland called incentive traps, situations where itis economically advantageous to decline
than yes to an offer of work, but stands still behind the attempt.
Read more: “Oddly enough, itis a relatively conservative government that comes with the
proposal”
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