ITSA Newsletter: March 2024 Update

Here’s the latest and biggest Basic Income News:

‣ Seven states (so far) are trying to ban basic income pilots

‣ Successful results from multiple US basic income pilots are now available

‣ South Africa’s President has again promised a permanent basic income grant

‣ India’s INC party promises unconditional monthly income to “every poor family”

‣ New research paper finds that a UBI sufficient to eliminate poverty across the entire EU would cost 1% to 3% of GDP

ITSA News:

The Income To Support All Foundation is now officially a 501(c)(3) public charity organization and is now setup to accept donations online. Donation options include: credit, debit, DAF, PayPal, and Venmo.

We are also proud to announce the newest addition to our Board of Directors, Rev. Josh Riddick. Josh is an organizer for the Black Church Coalition and Black Youth Collective and he brings a wealth of experience to the Board with his local mobilizing roots.

ITSA Live, our weekly Space on X (formerly Twitter) now has 16 episodes to listen to on YouTube. Be sure to check them out (and subscribe), as we’ve had some great discussions so far.

Seven states (so far) are trying to ban basic income pilots [link]

• Bans have been introduced in the state legislatures of Texas, Wisconsin, West Virginia, South Dakota, Arizona, and Arkansas.

• The group behind the anti-UBI effort is the Foundation for Government Accountability and its lobbying arm, the Opportunity Solutions Project.

• The primary donor to the FGA/OSP is the far right billionaire Richard Uihlein and his wife Liz who the NYT described in 2018 as “the most powerful couple you’ve never heard of.”

Successful results from multiple US basic income pilots are now available

• Paterson, New Jersey: Recipients of $400/mo increased their incomes from work significantly to $24,810 from an average of $16,604. The control group which started out at $17,761 ended up at $19,078.

• Minneapolis, Minnesota: Food security, financial security, well-being, and psychological wellness all improved, and employment did not decrease.

• Austin, Texas: 9% reported working less and 7% reported working more. Of those who worked less, half upskilled for better jobs, and half chose unpaid care work.

• Arlington, Virginia: Employment increased by 16% and incomes from paid work increased by 37%.

• Saint Paul, Minnesota: Unemployment decreased. The number of unemployed went from 18% to 5%, and the number not in the labor force went from 17% to 9%.

South Africa’s President has again promised a permanent basic income grant [link]

• President Cyril Ramaphosa at his party’s manifesto launch on February 24 echoed his State of the Nation Address (SONA) by again laying out that his party would “progressively implement a basic income support grant by extending and improving the value and coverage of the Social Relief of Distress (SRD) grant for the unemployed.”

• With an unemployment rate of 32%, the goal is to make sure everyone who is unemployed has an income floor.

• While specific details regarding the funding mechanism and rollout timeline remain pending, the announcement underscores a proactive approach by the government to prioritize the well-being of its citizens and stimulate economic growth.

India’s INC party promises unconditional monthly income to “every poor family” [link]

• The Congress party in Andhra Pradesh pledges to provide ₹5,000 per month (equivalent to about $218/mo USD) to every poor family in the state, contrasting its approach with that of the Modi government.

• The promise is part of the party's election manifesto, aimed at addressing poverty and providing financial support.

• The initiative represents a divergence from the policies of the ruling party, emphasizing their commitment to social welfare and economic empowerment at the grassroots level.

New research paper finds that a UBI sufficient to eliminate poverty across the entire EU would cost 1% to 3% of GDP [link]

• The gross cost of a pan-EU UBI looks huge – something like €3 trillion per year – but the net cost after all of the savings and after the modifications to income tax are much more reasonable – something between €100 and €400 billion per year depending on the scenario.

• A pan-EU UBI of €6,857 per person, per year would be sufficient to eliminate severe poverty across the continent and doing so would cost less than the poverty price currently being paid by not doing it.

• Suggested taxes are a wealth tax, carbon tax, and income tax increase combined.

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Scott Santens

Founder & President, ITSA Foundation