BBC: Finland’s Basic Income Trial Falls Flat

Populations grow yet automation and productivity reduce job numbers and security. To reduce poverty, governments consider guaranteeing a universal income for their citizens. Finland launched a pilot program in 2017, when the unemployment rate exceeded 9 percent, for 2000 unemployed people selected randomly to receive monthly payments of $685 per month. Results are expected in 2019, but the government decided against expanding the program and will consider other reforms. “The argument is that, if paid universally, basic income would provide a guaranteed safety net,” reports Laurence Peter for BBC News. “That would help to address insecurities associated with the ‘gig’ economy, where workers do not have staff contracts.” OECD research suggests that the basic income scheme could increase Finland’s poverty rate. Other reforms under consideration are a universal credit system and a negative income tax. The goal is to find a system that does not expand inequality. – YaleGlobal