Basic Income In Switzerland

I Bet You Thought I Was Nuts

A few days ago, I wrote that the dole shouldn't be seen as this stigma but as a dividend a successful society can pay to its citizens. Turns out folks in Switzerland are way ahead of me on the curve with this one and they are proposing a 'Basic Income' for every citizen. How much? They're talking US$2,600 per month, which is like $3,000 in AUD right now.

The idea of a living wage has been brewing in the country for over a year and last month, supporters of the movement dumped a truckload of eight million coins outside the Parliament building in Bern. The publicity stunt, which included a five-cent coin for every citizen, came attached with 125,000 signatures. Only 100,000 are necessary for any constitutional amendment to be put to a national vote, since Switzerland is a direct democracy. 

The proposed plan would guarantee a monthly income of CHF 2,500, or about $2,600 as of November 2014. That means that every family (consisting of two adults) can expect an unconditional yearly income of $62,400 without having to work, with no strings attached. While Switzerland’s cost of living is significantly higher than the US—a Big Mac there costs $6.72—it’s certainly not chump change. It’s reasonable income that could provide, at the minimum, a comfortable bare bones existence. 

The benefits are obvious. Such policy would, in one fell swoop, wipe out poverty. By replacing existing government programs, it would reduce government bureaucracy. Lower skilled workers would also have more bargaining power against employers, eliminating the need for a minimum wage. Creative types would then have a platform to focus on the arts, without worrying about the bare necessities. And those fallen on hard times have a constant safety net to find their feet again. 

Detractors of the divisive plan also have a point. The effects on potential productivity are nebulous at best. Will people still choose to work if they don’t have to? What if they spend their government checks on sneakers and drugs instead of food and education? Scrappy abusers of the system could take their spoils to spend in foreign countries where their money has more purchasing power, thus providing little to no benefit to Switzerland’s own economy. There’s also worries about the program’s cost and long term sustainability. It helps that Switzerland happens to be one of the richest countries in the world by per capita income.

Money for nothing? Jeez, where can I get the chicks for free, and we'll have an 80's Dire Straits song going.

More seriously it makes sense to get rid of Centrelink and the assorted government bureaucracy designed to bully the out-of-work, and just hand out the money. The people working the bureaucratic machinery at Centrelink don't really want to be there any more than the out-of-work, applying for payments. Our society would be much better off if we simply junk the whole pretence that this 'procedure' is somehow productive or good.

It would be a lot less aggravating for a start, and probably result in an explosion of cultural expression and technological advances. If people want to earn more, they can work. If people don't want to work and can figure out a way of living on this money, they can just drop out and stop pretending they're keen on working. Think of the collective sigh of relief you would hear.

One would imagine that it would narrow the pool of working people considerably, but employers would have the benefit of knowing that the people who turn up, really want to be there. In turn, employers would have to genuinely compete to provide workplaces worthy of the people who want to work in spite of the free money available to them - because they must be genuinely dedicated types. We might even begin to have a sensible discussion about what work really means, and how it should be valued and evaluated. No more McJobs and working poor. No more angry queues at Centrelink.

Think of all the marvellous novels written about the angst of being well looked after by a generous state. I for one would say this would be a great thing.
If you think this is a great idea, spread it around. We need to be talking about this stuff.