Sunday, June 5, 2016

Swiss to vote on the “universal income” between pragmatism and utopia – The World

Le Monde | • Updated | By

she will come the revolution of Switzerland? Sunday, June 5, the country is called to vote on the establishment of an “unconditional basic income”. This federal referendum, authorized following a petition that collected more than 100,000 signatures, aims to amend the Swiss Constitution, so that everyone has from birth a lifetime annuity. If the group behind the proposal – elected socialists, Greens, trade unionists or citizens of the world of art and health – no formally articulated figure, his arguments are based on the sum of 2500 Swiss francs (about 2300 euros) per person per month

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the negative of this ‘referendum’ issue can be little doubt: in December 2015, the Swiss Parliament voted almost unanimously against the basic income, and the government recommends to reject the proposal. But the topic of “universal income” or “basic income”, now shaken several European countries. The principle ? Grant everyone, young or old, active or unemployed, an amount paid by the state. Iconoclastic in principle, the measure is more and more support in the hour of mass unemployment, rising inequality and the increasing automation of the economy, while the relationship between work and wealth distribution is the subject of renewed debate.

“This is one of the few economic measures which can be both very social and very liberal “ summarizes Yannick L’Horty, a professor at the University of Paris-Est Marne-la-Vallée

” the universal income [ is] an idea to put in the public debate, “ launched Premier Manuals Valls, mid-May, during an exchange of two hours with residents of Evry (Essonne ), in view of the presidential election of 2017. According to a BVA poll published on 30 May, just over half of French (51%) supports the establishment of a “minimum income universal “ guarantee all citizens unconditionally and return, a basic income to replace the various existing social benefits. The idea swarming all over the world. In Canada, the province of Ontario is preparing to the test in the fall, after increasing the minimum wage. Finland has for a time been tempted by the experience

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the popularity of the concept is explained by its dual parentage. “This is one of the few economic measures which can be both very social and very liberal,” summarizes Yannick L’Horty, professor at the University Paris-Est Marne-la- Valley. For proponents of a more egalitarian society, the universal income makes it possible for everyone to lead a decent life, where wealth is distributed among everyone, not monopolized by some. An approach legitimized by the fact that certain activities, such as domestic work for women or associative engagement, find no compensation in the labor market as it operates today.

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the Basic income Earth network (BIEN), the leading global network of research on the subject, supported by NGOs involved in the fight against poverty (Emmaus, ATD Fourth World …) and relayed by politicians or senior officials (Martin Hirsch …), France has inspired the creation of minimum income (RMI) in 1988 and the active solidarity income (RSA) in 2008.

26% of french GDP

the other approach, of liberal inspiration, is to provide a starting sum to each individual to enable him then to evolve in life according to his own personal merit. Integrated into the tax system, it directly takes the form of a “tax credit” for the poorest. The allowance replaces social minima, even for the most radical, replace labor taxes (pension, health insurance …). Then load each of these guarantees contracting with private organizations if it wishes

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In this respect, more needs minimum labor income, or sprawling state services to manage the allocation of allowances. Ended the reign of the wage system, where social protection is essentially guaranteed by employer contributions. And disincentives phenomenon at work since the initial income is retained, the person accepts or not a job. An argument taken down by the despisers of universal income, that link the risk of idleness linked to a secure income

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beyond the controversies, “talk of universal income demand to decide what purpose it wishes to respond. Such a tool may simplify the maze of welfare and avoid non-use [two-thirds of beneficiaries of RSA activity does not perceive the lack of take the necessary steps]. But that raises the question of the management of aid mechanisms, today assured by the social partners (health insurance, old age …) “ says Marc Ferracci, Professor at the University Panthéon Assas.

“many social and fiscal systems already contain elements of universal income. In France, the RSA is very close, in any case from 25 years. It is around 700 euros per month, counting housing assistance, with samples that adjust downward when the person gets a job, “ said for his part Pierre Cahuc economics professor at Crest-Ensae and the Polytechnic.

“in France, almost all social reforms made since the late 1990s (tax ‘ housing, housing benefit, minimum wage …) aims to ensure that work pay . If we must reflect on the universal mechanism of income, it is mainly with a view to simplification and reduction of non-use and threshold effects “ The abounds M. Horthy.

This is the meaning of the report on the reform of social minima, to the Prime Minister in mid-April by the socialist MP Christophe Sirugue (Saône-et-Loire). In one of his proposals, he suggested merging the ten existing social minima (RSA, allowance for disabled adults, solidarity bonus …) into a single allowance of 400 euros. Paid-tested from 18, she would be increased for seniors, the disabled or unemployed.

There remains the question of the financing of such a measure. In a report published on 22 May, the Fondation Jean-Jaurès, close to the Socialist Party, estimated that an amount of 750 euros per month – with a variable component depending on age – would cost 565 billion euros, or 26% french GDP! But “could be financed by redirecting all current expenditure on social protection (pensions, health insurance, unemployment, family allowances), except those devoted to the care of chronic conditions “ by the reflection group. To this is add “a 2-point increase in VAT, in a logic of social protection to weigh more on consumption rather than work ‘.

but social and tax big bang more like wishful thinking, at the time of the establishment of collection of tax at source, real legislative sea serpent, already creates significant difficulties. The Jean Jaurès Foundation itself also speaks of its estimate as of “the most realistic utopia”

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