Finland just launched an experiment giving 2,000 people free money until 2019

kela_suomi_kela-1

http://www.businessinsider.com.au/finland-launches-basic-income-experiment-2016-12?r=US&IR=T

Finland has an ambitious New Year’s resolution in mind: learn how offering free money for two years helps the unemployed get back to work.

Starting January 1, 2017 and lasting until 2019, the federal social security institution Kela will distribute roughly $590 each month to 2,000 jobless Finns.

Regardless of whether they find work during that period, the money will keep coming in at the beginning of each month — a trial version of basic income, one of the past year’s most popular theories of how to solve poverty.

Under universal basic income (UBI), people receive a standard amount of money just for being alive. By handing out the money to everyone, regardless of their income status, UBI advocates say the system prevents people from falling through the cracks.

Marjukka Turunen, head of Kela’s legal benefits unit, says the experiment in Finland should provide insights on two fronts.

The first is whether basic income could help clean up Finland’s messy system of social security. Depending on their specific needs, Turunen says residents could be on one of 40 different benefit systems. Each benefit — whether it’s for someone who’s sick, unemployed, a student, or so on — is calculated differently and must be changed when the person’s status changes.

“That’s really a burden for customers and Kela to do all those status changes,” Turunen tells Business Insider. A form of basic income could mean people just need to apply for one status indefinitely, no changes required.

The experiment will also provide clues about how people behave when they’re receiving free money. Sceptics say people will sit on their couch all day. Proponents claim they will actually use the money to make their lives better. (Limited evidence from developing countries suggests it’s more of the latter.)

Turunen suspects the experiment will compel at least a few wannabe entrepreneurs to make the leap into starting their own business — a risky proposition in Finland today since business owners who are forced to close shop don’t receive unemployment benefits. It’s not unlike the system in place in most US states.

“The system nowadays, it’s pretty negative for people who try to do something — even little — in their lives and get something out of it,” she says.

A basic income might turn a risky move into a much safer one.

Turunen doesn’t expect the trial to lead to larger basic income studies in Finland. The current experiment is tax-free, and in a small country like Finland the cost would be too great.

———-

that sounds like a good plan for australia..i volunteer!

“Regardless of whether they find work during that period, the money will keep coming in at the beginning of each month — a trial version of basic income, one of the past year’s most popular theories of how to solve poverty.”

the universal wage?

“The experiment will also provide clues about how people behave when they’re receiving free money. Sceptics say people will sit on their couch all day. Proponents claim they will actually use the money to make their lives better.”

i know what i would do.. 🙂

401

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~ by seeker401 on January 8, 2017.

11 Responses to “Finland just launched an experiment giving 2,000 people free money until 2019”

  1. There is nothing for free in this world except the Love of God,his son-Jesu and their Holy Spirit

  2. http://www.dailymail.co.uk/news/article-4226892/Tesla-boss-Elon-Musk-backs-basic-income-everyone.html?ITO=1490

    “Tesla CEO Elon Musk has doubled down on his support of a universal basic income as a possible solution for unemployment caused by the rise of machines equipped with artificial intelligence taking over the workforce.
    A universal basic income would give a standard amount of money to every citizen to cover basic expenses like food and living costs each month.
    At the World Government Summit in Dubai on Monday, Musk told a crowd that universal basic income is ‘going to be necessary’ in the future.”

    • A universal basic income would give a standard amount of money to every citizen to cover basic expenses like food and living costs each month.

      he knows..there will be no jobs..so there is no income..he knows..

      • “cover basic expenses like food and living costs each month”…given by the state…what’s the difference with slavery? the name?

        • In the feudal system of the European Medieval age (ca. fourth to fifteenth century), peasants were 90% of the population and owned no individual property. The peasants worked the nobles land for food, and received, in principle, protection. Yet the rule of law, was not a written code, but the king’s will (whatever arbitrary law the king happened to surmise for that day or time).

          What is the difference? Maybe in name only, as you wonder.

        • Yep!

        • U.S. farmers today are in a feudal type system. They have to take out loans for their seed, mechanics, and whatever else. It is just like the IMF with developing countries. The same happened in the feudal era. Templars, a military order, were the bank until the King of France, and eventually the Roman Catholic church, went after them in the fourteenth century as they were threatened by their (Templar) power. The Hospitallers, another military order, still exists today, i.e. St. John’s the Cross in Germany and Knights of Malta – both Hospitallers just different names for the same group. Then with the appearance of wealthy merchants, around the same time, and the bubonic plague (loss of farmers for the nobles), these wealthy merchants stepped in to hand out loans.

    • What is also interesting is the problem of meaning, that Mr. Musk discussed:

      “‘The much harder challenge is, how are people going to have meaning?’ the CEO of Tesla, SolarCity, and SpaceX asked. ‘A lot of people derive their meaning from their employment.

      “‘So if there’s no need for your labor, what’s your meaning? Do you feel useless? That’s a much harder problem to deal with.'”

      Who’s meaning? Where is the meaning going to come from? Mr. Musk points out the problem of meaning is the “much harder challenge”.

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