Abstract
Economic insecurity is an endemic problem across the rich countries of the Global North. What is the solution? This paper compares and contrasts two major proposals: the conventional welfare state package of public services and regulations versus a basic income. By comparing and contrasting these systems in three different contexts – a “nightwatchman” context, a neoliberal context, and a social democratic context – and carefully modeling the monetary equivalence between them, we are able to provide a more precise and compelling comparison of the two systems than has yet been accomplished. We evaluate the two systems on the basis of economic security as well as a number of other important criteria, including the economic well-being of oppressed groups, power, carbon emissions, the gender division of labor, free time, social stigma, and transformative potential. We find that without a welfare state background, services and regulations are generally preferable for most vulnerable groups. However, as the welfare state develops, into a neoliberal or a social democratic context, basic income becomes a generally superior option.
Incentives to work in BI versus services regimes
Employed | Unemployed | Incentive to work | Evaluation | ||||
---|---|---|---|---|---|---|---|
(1) BI (k) | (2) Ser. (k) | (3) BI (k) | (4) Ser. (k) | (5) BI empl gain (k) | (6) Ser. empl gain (k) | (7) Inc. diffs. | |
(1–3) | (2–4) | (5–6) | |||||
Nightwatchman Context | |||||||
Homeless | $0.0 | $0.0 | $16.0 | $16.0 | −$16.0 | −$16.0 | $0.0 |
Single mother, full-time, min-wage, young child | $34.4 | $35.9 | $24.0 | $34.6 | $10.4 | $1.3 | $9.1 |
Single mother, full-time, min-wage, child in school | $34.4 | $23.8 | $24.0 | $22.5 | $10.4 | $1.3 | $9.1 |
Single person, full-time, min-wage | $26.4 | $23.8 | $16.0 | $16.0 | $10.4 | $7.8 | $2.6 |
Single person, PT, min-wage | $23.8 | $18.6 | $16.0 | $16.0 | $7.8 | $2.6 | $5.2 |
Person with a disability | $26.4 | $28.1 | $16.0 | $20.3 | $10.4 | $7.8 | $2.6 |
Black, Indigenous, or Person of Color, FT, working-class | $31.6 | $38.2 | $16.0 | $20.0 | $15.6 | $18.2 | −$2.6 |
Black. Indigenous, or Person of Color, PT. min-wage | $23.8 | $22.6 | $16.0 | $20.0 | $7.8 | $2.6 | $5.2 |
White, FT, working-class | $31.6 | $34.2 | $16.0 | $16.0 | $15.6 | $18.2 | −$2.6 |
White, PT, working-class | $27.7 | $26.4 | $16.0 | $16.0 | $11.7 | $10.4 | $1.3 |
Working class two parent family, two school age kids | $79.2 | $68.4 | $48.0 | $32.0 | $31.2 | $36.4 | −$5.2 |
Elderly low-income | $0.0 | $0.0 | $16.0 | $16.0 | −$16.0 | −$16.0 | $0.0 |
Neoliberal Context | |||||||
Homeless | $0.0 | $0.0 | $16.0 | $16.0 | −$16.0 | −$16.0 | $0.0 |
Single mother, full-time, min-wage, young child | $34.4 | $31.2 | $24.0 | $29.9 | $10.4 | $1.3 | $9.1 |
Single mother, full-time, min-wage, child in school | $34.4 | $23.8 | $24.0 | $22.5 | $10.4 | $1.3 | $9.1 |
Single person, full-time, min-wage | $26.4 | $23.8 | $16.0 | $16.0 | $10.4 | $7.8 | $2.6 |
Single person, PT, min-wage | $23.8 | $18.6 | $16.0 | $16.0 | $7.8 | $2.6 | $5.2 |
Person with a disability | $26.4 | $32.5 | $I 6.0 | $24.7 | $I 0.4 | $7.8 | $2.6 |
Black, Indigenous, or Person of Color, FT, working-class | $31.6 | $36.2 | $16.0 | $18.0 | $15.6 | $18.2 | −$2.6 |
Black, Indigenous, or Person of Color, PT, min-wage | $23.8 | $20.6 | $16.0 | $18.0 | $7.8 | $2.6 | $5.2 |
White, FT, working-class | $31.6 | $34.2 | $16.0 | $16.0 | $15.6 | $18.2 | −$2.6 |
White, PT, working-class | $27.7 | $26.4 | $16.0 | $16.0 | $11.7 | $10.4 | $1.3 |
Working class two parent family, two school age kids | $79.2 | $68.4 | $48.0 | $32.0 | $31.2 | $36.4 | −$5.2 |
Elderly low-income | $0.0 | $0.0 | $16.0 | $16.0 | −$16.0 | −$16.0 | $0.0 |
Social democratic context | |||||||
Homeless | $0.0 | $0.0 | $19.4 | $18.4 | −$19.4 | −$18.4 | −$1.0 |
Single mother, full-time, min-wage, young child | $45.6 | $43.2 | $35.2 | $41.9 | $10.4 | $1.3 | $9.1 |
Single mother, full-time, min-wage, child in school | $37.8 | $26.2 | $27.4 | $24.9 | $10.4 | $1.3 | $9.1 |
Single person, full-time, min-wage | $29.8 | $26.2 | $19.4 | $18.4 | $10.4 | $7.8 | $2.6 |
Single person, PT, min-wage | $27.2 | $21.0 | $19.4 | $18.4 | $7.8 | $2.6 | $5.2 |
Person with a disability | $40.2 | $44.8 | $29.8 | $37.0 | $I 0.4 | $7.8 | $2.6 |
Black, Indigenous, or Person of Color, FT, working-class | $39.0 | $46.6 | $23.4 | $28.4 | $15.6 | $18.2 | −$2.6 |
Black, Indigenous, or Person of Color, PT, min-wage | $31.2 | $31.0 | $23.4 | $28.4 | $7.8 | $2.6 | $5.2 |
White, FT, working-class | $35.0 | $36.6 | $19.4 | $18.4 | $15.6 | $18.2 | −$2.6 |
White, PT, working-class | $31.1 | $28.8 | $19.4 | $18.4 | $11.7 | $10.4 | $1.3 |
Working class two parent family, two school age kids | $86.0 | $73.2 | $54.8 | $36.8 | $31.2 | $36.4 | −$5.2 |
Elderly low-income | $0.0 | $0.0 | $19.4 | $18.4 | −$19.4 | −$18.4 | −$1.0 |
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