From coronavirus countries have started to give people money for nothing. How it will save the world economy.
the World in 2020 has covered a full-scale crisis caused by the pandemic coronavirus. The state of the economy around the world slows, tens of millions of people have lost their jobs and left without means of livelihood. In the United States for benefits for only a month asked more than 20 million people. For 30 days the first economy in the world has lost so many jobs they created over the decade. However, governments around the world seem to have found a way to help the people, decided gratuitously to give to the citizens the money.
the Cure for poverty — in the material “Tape.ru”.
Previously, the idea of free distribution of money seemed real only in the “fat times” and only in rich countries.
But now governments around the world prove that this solution can be a lifeline that will help the world to swim out of the most severe crisis in decades. After all, the pandemic struck an unprecedented blow to the world economy. The rapid spread of the infection, which from the beginning of the year picked up by 5.7 million people in more than 200 countries forced the leaders of dozens of States to impose strict quarantine and closing the borders.
Such deterrence has proven its effectiveness in the fight against the coronavirus, but for the health of the citizens of the high price they had to pay the economy and business. due shutdown of production facilities, slowdown of business activity and the closure of companies in the global GDP began to rapidly sink. At the end of the year the world economy will fall by 3 percent, economists say the International monetary Fund (IMF), and the outbreak of the world crisis will be the deepest since the great depression of the 1930s years.
Italy’s GDP will shrink by 9.1 percent; France’s economy will lose 7.2 percent; and the locomotive of Europe — the German economy — 7 percent. Overall, European GDP is expected in 2020 will fall by 7.5 percent, according to IMF. Outside the EU the situation is no better: the first economy in the world — the US — will contract 5.9 percent, and Russia’s GDP will fall by 5.5 per cent. Mass quarantine, which turned out to be a business enterprise, led to the fact that people around the world go on unpaid leave, loss of income or even lose their jobs. According to the International labour organization (ILO), the spread of coronavirus impact on earnings of a billion people.
BBD involves provision of all (or nearly all) adult citizens of the country periodic, for example monthly fixed cash payments from the state. They do not depend on employment, social status and material situation of the beneficiary, for payment in equal have right unemployed and billionaires. The amount of BBD is not taxed, and employees should not report to the state, for what purpose spent the funds granted to it.
the unconditional basic income and conceived in different parts of the world for centuries. The origins of the concept can be found in the book by the English philosopher and writer-humanist Thomas more’s “Utopia” in 1516. Almost 300 years later — in 1795 — the unconditional basic income as a tool of poverty reduction was reviewed by the Englishman Thomas Paine.
In our time the idea in one form or another, exists, discussed, or implemented in at least ten countries, including USA, Canada, Netherlands, Switzerland, Finland, Italy. However, in these States, it was seen from a different angle — rather as a chance for the authorities to reduce bureaucracy in the provision of social assistance to the population, and citizens to enhance financial stability, to change the quality of life, taking up, for example, love. But with the beginning of the pandemic in the fashion industry, the idea of the BBD back to basics.
From stop business and job loss in the United States millions of people were under threat of hunger and began to line up at food banks. To the fore again moved the idea of fighting poverty with the help of BDM.
the Concept of BBD attracts the attention of many governments, since it solves several problems: providing financial support to all citizens simultaneously, increases the likelihood of timely payment of loans and mortgages and reduces social tensions.
in addition, the unconditional basic income is the key to demand growth (and hence growth) after the lifting of the quarantine. This question will be front and center in the next few weeks, when will gradually remove the restrictions imposed due COVID-19.
In terms of the coronavirus in the direction of an unconditional basic income temporarily moving even traditional critics of the idea. The fact is that during a pandemic the main, in their opinion, the lack of the concept of BBD — that guaranteed payments do not encourage people to look for work — is its main advantage.
the Only serious drawback of the program is actually its cost. For example, paying $ 1,000 per month to every adult citizen would cost US 2.8 trillion dollars annually. The unprecedented size of the program to rescue the U.S. economy, announced by President Donald trump, one-third less — about $ 2 trillion.
with the introduction of guaranteed income in one form or another has gone of the government of the United States, Japan, Singapore and several other countries. The majority has decidedcamping only on half-measures: the program was temporary. The United States decided to grant a one-time pay 1200 dollars to every citizen with an annual income of less than $ 75 thousand, while families with children give $ 500 per child. In Japan, citizens have nearly $ 930 per person. In Singapore, the payment made to every citizen set at from 100 to 300 dollars. The provision of grant aid announced to the government of Hong Kong and Macau. In the UK the Parliament is also actively encouraged to enter in the Kingdom of BBD as the most effective measure of public support in the fight against future unemployment.
the Exception was Spain, which decided to scale BBD. The Kingdom became one of the most affected by the coronavirus States of Europe (in Spain is infected with more than 230 thousand people), he predicted the fall of GDP to 8 percent by the end of 2020, which is the strongest decline since the civil war in 1936 (then the economy fell more than 23 percent). In the Great recession of 2008-2009 Spanish GDP declined by only 3.6 percent. The current economic situation compounded by a disappointing forecast for unemployment is expected by the end of the year it will reach almost 21 percent.
in the face of strong almost a century of crisis, Madrid has decided that he has nothing to lose, and went broke. Spain announced the introduction of a full unconditional basic income in the near future. The amount of monthly payments has not yet been agreed, but as expected, it will be about 500 euros. The government believe that such a program is most effectively in order to combat recession and poverty.
Spain will become the first country in Europe that introduced the BBD in the entire country. After the crisis, the program will not collapse, it will continue to exist. Over time, banks will partially displace other projects of social support and become more easy for the state by way of assistance to the population. Experts praised Spain’s decision and believe that her example can follow and other countries.
while governments around the world are just starting to think about BBD and carefully test the concept in real conditions, in the not so distant future the introduction of an unconditional basic income on a global scale is inevitable. due rapid technological progress, the development of artificial intelligence, robotization of processes and machines will soon replace people in the labour market. The seriousness of the impending problem of employment in full blow, many businessmen who have grown rich on innovation, including the head of Space X and Tesla Elon Musk, founder of Facebook mark Zuckerberg and the founder of Virgin Group Richard Branson.
Entrepreneurs literally changed the technological landscape of the planet, believe that the way out would be unconditional basic income due of its indisputable advantages. From the point of view of the population, BBD gives a sense of financial stability and confidence in the future. From the perspective of the state concept is an excellent means of struggle against bureaucracy. When basic income replaces numerous social benefits and direct payments aimed at supporting citizens, eliminating the need for a bloated state apparatus. Thus, the latter becomes more efficient, and to keep it to the taxpayers is cheaper.
“I think it [unconditional basic income] is the best long-term solution for the existential problems that face the world,” said the founder of Twitter, Jack Dorsey, who is also a staunch supporter of the concept. In 2020, he donated a billion dollars of his fortune to fight COVID-19, but after pandemic the rest of the funds will be spent including study of BBD.
I agree With Darcy about a dozen Nobel laureates, including the winner of the prize in Economics 2000 Daniel McFadden. According to him, unconditional income can help countries to escape from “poverty trap” (a situation when a person is more profitable not to work and to social welfare), as well as to reduce the level of domestic and street violence. “To be in the so-called poverty trap and constantly feel the associated stress and insecurity very exhausting for the person. Sometimes even the simplest money transfers can break this vicious circle,” he said.
However, the main advantage of the concept is a long-term positive effect that BBD is having on the economy. Thanks to the availability of money citizens can invest in themselves, improving their own skills, for example, through additional education. The consequence is the increase of labour productivity and GDP growth of the country. Thus, the introduction of an unconditional basic income allows you to not only build a better society, but to completely change the quality of life in the state.
Elizabeth Gorodischeva
