Tuesday, October 3, 2017

Lessons From Finnish Basic Income Trials


While reading the article “Finland trials basic income for unemployed,” I became curious about the level of success Finland had experienced in implementing the universal basic income since January 1st, and what the outcomes meant for other countries trying to replicate the same experiment.

Has it been a success?

The idea of supporting unemployed citizens with an unconditional monthly income, whether or not they procure a job, sounds revolutionary with a well-designed plan and strong governmental dedication to the program. Some say it is too soon to tell what impact the experiment is having, but I think the success of this experiment relies on the way individuals with different political perspectives understand its purpose and benefits. The Center Party, currently in power in Finland, is dedicated to austerity and streamlining governmental assistance. The Party initially backed the experiment to promote employment and incentivize poor citizens accepting low-paying jobs. Unfortunately, as the Party makes cuts to social supports it could increase poverty and negatively affect study participants (NY Times).

Olli Kangas who designed and runs this study compared the Center Party’s interest in basic income to “small boys with toy cars, who become bored and move on (The Economist).” I believe if the Party focused less strictly on unemployment numbers, they could understand more of the short-term discoveries this experiment has made. Understanding these developments could help renew the Party’s engagement in the trial and its potential added benefits.

I struggle to understand why the Center Party might lose interest in the study. Though the Party might not be drawn to the abolition of poverty or similar leftist ideals, I do think with more time the study will provide proof of long-term improvements to the livelihoods of study participants. This and other benefits could certainly diminish poverty in Finland and result in smaller unemployment numbers, a stronger economy, and the ability to deal with increased workforce automation more readily. This trial can only be successful if the politicians backing the study are invested for the long haul, as the study can provide opportunity for the creation of data-driven policy on social support.

How are these experiments expanding?

It is incredibly exciting to read about the other nations, like Italy and Canada, working to implement their own universal basic income trials. Thus far, I believe Finland has provided a strong introductory framework for doing so. Other nations can be successful if they are dedicated to the ups and downs of the pilot process. Consistent dedication to the experimentation process of basic income for a set period can provide each nation with key pieces of information. This dedication to retrieving this data and information can help a country’s governing body decide how to use basic income to improve the lives of citizens and overall economic health of the country.



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