Results from Barcelona 2010 on the topic social security

Social Security

The following are the results of the GAP at the Degrowth Conference 2010 in Barcelona that are particularly relevant for this working group

The document first presents a summary, including links to other working groups (in red & capital), and then the complete results of those Barcelona working groups with some relations the current one

Summary:

A ceiling on the level of income (implying a 100% tax above certain level of income) in needed, as well a basic income (NATURE RESOURCES, WATER, HOUSING/SHARING, AGRICULTURE – minimum access to and maximum use of resources).

The maximum ratio, between the minimum level of income and the income ceiling, within both society and companies, should be democratically decided (DEMOCRACY, SOCIAL ECONOMY, HUMAN NATURE in relation to attaining social status, in the absence of high income).

A progressive tax on income, property or natural resource use is proposed to finance basic income. Basic income can be in provided in the form of local currency, specific products and services like housing or health (SOCIAL SECURITY). (POLITICAL STRATEGIES, related to the feasibility of gathering sufficient political support for basic income.) There is a need to develop risk sharing systems for saving and financing for the transition. Pensions can be financed by green taxes.

Research on world basic income is needed as a viable alternative to development aid (ENVIRONMENTAL JUSTICE). Social science research on basic income and its experience is proposed (HUMAN NATURE).

Working Groups from 2010 GAP in Barcelona with some connections

Social security and pensions

Proposals for the transition:

• Need to develop risk sharing systems for saving and financing for the transition

• Progressive taxation system focused on income (above maximun income 100% tax) and green taxes for increased pension funding as is required

Proposals final aim:

• Happiness of people

• An equalitarian society where social security is not needed i.e. everybody can satisfiy their basic needs with basic income (basic income is not necessarily money)

New (macro)economic models for degrowth

Need to pull together degrowther economist modellers to do specifically modelling about degrowth.

How to incorporate some critical issues:

• Fating productivity analysis in macro models to investigate labour income and employment benefits of worktime reduction

• Explicit representation of: constraints of resources, incorporate absolute scarcity in physical flows, and consider strong sustainability (critical resources)

• Stability of the system when contracting (is it predictable?)

Research questions:

• How to represent in the models the financial system and interest rates?

• Which scale do we need degrowth models (regional and local)?

• Changing the definition of work, how to incorporate unpaid work?

• Complexity in modelling macro-micro relationship: How to deal from macro degrowth with the micro level?

• Investigate how to take into account in the degrowth models the increase in the marginal utility redistribution

• Take into account non-community goods

• Degrowth models are important to see what happens to welfare state and social services

Not so much disagreement between participants

Basic income and income ceiling

Basic income for all

Research Themes/Questions:

• Comparisons between BI and a negative income tax plus a social welfare state to inform public opinion. That is, not only from a monetary-based approach, but also from a moral perspective.

• Will economic degrowth provide sufficient means to finance a BI institution in the long-run?

• Can a BI institution be a viable and fruitful alternative to development aid?

• How has human psychology, values, and moral ideas played a role in preventing the application of a BI system in the past? What psychological insights can be derived from human populations where BI as an institution has been applied?

Issues needing further attention:

• In order to finance BI sustainably a tax-based approach should be implemented progressively on income rate, rent or ownership, natural resource use, and consumption.

• Is a basic income preferred to a guaranteed-job-offer? Should local currencies, or product-specific vouchers play an important role in the making-up of a basic income-rent?

• How to implement BI at a political level; in particular taking into account voter participation in political processes.

• What are the links between a society of employment and a society addicted to consumption?

Income Ceiling

IC is on the political agenda in Europe now.

Measures to redistribute income & wealth and measures to give equal access to environmental services are compatible and, in fact, they should go together.

Proposals on IC:

1. Minimum-maximum ratio

1. Ratio within companies

2. New ways on attaining social status (in the absence of high incomes) should be found

Work-sharing

Research questions:

• Relationship between labor productivity and reduced resource use?

• How can we achieve changing recognition of different kinds of paid work and unpaid work?

• What is the definition of work in a degrowth society?

• Reflections on barriers to lower working hours from other elements of degrowth

• Debt Consumerism Low incomes

• Access to the conditions for a good life

• What is the aim of work in a degrowth society?

• Relationship between a basic income and reduced working hours

• Research that can recognize the value and contribution of the core economy (unpaid, household work) in our current economy

Political proposals:

• Tax reform / Tax on resources, not labor / A more progressive income tax, with a larger tax-free threshold

• Incentives to encourage companies to enable work sharing and part-time work

• Other uses of taxes

• Need to provide accessible childcare, including at conferences like these!

• Legislation that supports co-housing

• Need to reduce the power of financial capital

• Focus on gender issues, including the equality of pay for genders