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Finland Basic Income Trial Left People 'Happier But Jobless' (bbc.com) 694

Giving jobless people in Finland a basic income for two years did not lead them to find work, researchers said. From a report: From January 2017 until December 2018, 2,000 unemployed Finns got a monthly flat payment of $685. The aim was to see if a guaranteed safety net would help people find jobs, and support them if they had to take insecure gig economy work. While employment levels did not improve, participants said they felt happier and less stressed. When it launched the pilot scheme back in 2017, Finland became the first European country to test out the idea of an unconditional basic income. It was run by the Social Insurance Institution (Kela), a Finnish government agency, and involved 2,000 randomly-selected people on unemployment benefits. It immediately attracted international interest - but these results have now raised questions about the effectiveness of such schemes.
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Finland Basic Income Trial Left People 'Happier But Jobless'

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  • The Results (Score:4, Insightful)

    by Herkum01 ( 592704 ) on Friday February 08, 2019 @01:38PM (#58089940)

    It did not reduce unemployment, but it reduced the stress of that situation for people. That social impact of that cannot be ignored. In addition, this was only 2,000 random people out of 400,000. That is not enough to determine the economic impact on any sort of measurable scale.

    This experiment it is a starting point, not a failure.

    • Re:The Results (Score:5, Insightful)

      by Viol8 ( 599362 ) on Friday February 08, 2019 @01:40PM (#58089956) Homepage

      Stress about money can be a useful driver to get off your fat backside and go get a job. We'd all love to sit around all day and just be mailed cheques for doing nothing but thats not how a viable economy works in the real world.

      • Re:The Results (Score:4, Insightful)

        by Anonymous Coward on Friday February 08, 2019 @01:46PM (#58090020)

        Actually? That's exactly how it works for the owner class that inherits their wealth, like Donald Trump. They are not required to work a real day's work in their obese lives, and they do not.

        • Re: (Score:3, Insightful)

          by Anonymous Coward

          And despite their lack of need to work or spend their money on anything but hedonism, the owner class does things like build space ships, electric powered cars, or even hotels and golf courses.

        • Re: (Score:3, Insightful)

          by Anonymous Coward

          Love him or hate him, to think Donald (or any President) "doesn't work a real days work" is insane. I doubt most humans could put in as many hard hours as he is without buckling under pressure. If your definition of real work is slaving over a burger griddle at a fast food restaurant then you are an idiot. I have done that work and it was some of the easiest work in my life. Not needing to give a shit, think more than 10 minutes into the future, or use your brain is an easy trade off that most people woul

          • Re: (Score:3, Informative)

            by Anonymous Coward

            Not really in Donald Trump's case it isn't. He's a professional tax cheat and inheritor, nothing more. He did an absolutely objectively SHITTY job as a businessman, and anyone else in his position without a rich father would be a complete failure in those multiple-bankruptcy fiascoes! HE LITERALLY IS A PROFESSIONAL CRIMINAL WHO DOES NOT PAY HIS WORKERS WHEREVER HE CAN GET AWAY WITH IT.

            If you think tax cheats who cheat their workers are doing "real work" despite getting bailed out dozens of times and inherit

      • Re:The Results (Score:5, Insightful)

        by Thelasko ( 1196535 ) on Friday February 08, 2019 @02:16PM (#58090254) Journal
        Reading between the lines, the report says the group was not more likely to find a job than the control group. However, it does not say they were less likely to get a job than the control group. That's important information. It suggests that economic stress is not as big of a factor in finding work as most of us think.
      • Re:The Results (Score:5, Interesting)

        by DRJlaw ( 946416 ) on Friday February 08, 2019 @02:18PM (#58090282)

        Stress about money can be a useful driver to get off your fat backside and go get a job. We'd all love to sit around all day and just be mailed cheques for doing nothing but thats not how a viable economy works in the real world.

        So sorry, but this study does not support that position either.

        Mr Simanainen says that while some individuals found work, they were no more likely to do so than a control group of people who weren't given the money. They are still trying to work out exactly why this is, for the final report that will be published in 2020.

        That does not say that the participants were less likely to find work, nor that non-participants were more likely to find work.

        If they are equally likely to find work and the program is administratively equally or less costly than tested unemployment benefits, then the program still has a net benefit if only due to the psychological aspects.

      • Re:The Results (Score:5, Insightful)

        by rikkards ( 98006 ) on Friday February 08, 2019 @02:52PM (#58090530) Journal

        That's great when there are jobs to be had, but this isn't really what these experiments are about. These are about how are governments going to make sure the public doesn't go out and lynch the richies when the jobs become automated.

        You do not want them not getting a good grasp when unemployment starts kicking up due to automation

      • Re:The Results (Score:5, Insightful)

        by eddeye ( 85134 ) on Friday February 08, 2019 @03:06PM (#58090656)

        Stress about money can be a useful driver to get off your fat backside and go get a job.

        And who are you to demand that everyone needs a job? Who died and made you moral arbiter of the human race?

        Most unemployed people don't do "nothing". They spend their energy on voluntary activities that enrich the community. Look at stay-at-home moms (and dads) that run the PTA, do charity drives, organize school events, work at various shelters, etc. Do those activities have zero economic value? Of course not. Just because wages aren't involved doesn't make an activity worthless to society.

        Not to mention that I've worked with people with negative productivity. They not only can't do their own job - they actively prevent other people from doing theirs. We could do with fewer employed people in many cases.

        Everyone has a choice. Don't work and be satisfied with the bare minimum for survival. Work and have a more comfortable lifestyle. I choose the latter because I don't want to live on ramen and water.

        Valid arguments against basic income are economical, not moral. There is legitimate concern about the inflationary effects of society-wide basic income.

        Your moral objections are nothing more than frat boy hazing of lower classmen: "it was tough when I did it, so it should be tough for everyone". No. Stick your sanctimonious attitude up your bankhole. Not everyone has to or should be a wage slave.

        • The problem is that even the economical arguments against UBI tend to only compare the cost to the services it would replace, and not look at the broader economic impacts of people with steady income. People without a steady income often can't ever save, because they can't effectively budget when they don't know how much money they'll have next month. Once you have a steady income, it becomes a lot easier to plan your life around. And once you've got a workable plan, you can add saving money into that, for

        • Re: (Score:3, Insightful)

          by XxtraLarGe ( 551297 )

          Valid arguments against basic income are economical, not moral. There is legitimate concern about the inflationary effects of society-wide basic income.

          Is forcibly taking money from one person who works and giving it to someone who doesn't is morally acceptable?

          • Re:The Results (Score:4, Insightful)

            by grep -v '.*' * ( 780312 ) on Friday February 08, 2019 @05:03PM (#58091370)

            Is forcibly taking money from one person who works and giving it to someone who doesn't is morally acceptable?

            It depends on which side has more people.

            Actually, have extra and giving some away USED to be called charity, or 10% to the church, tithing. But the ones giving decided how much and exactly where it went.

            NOW we seem to be pushing more for the government to take "what's necessary" and to decide "who has extra." Gee, isn't that sliding into communism, where everyone gets just what they need? (I need a porsche BTW -- one for each day of the month.)

        • Re:The Results (Score:5, Insightful)

          by inhuman_4 ( 1294516 ) on Friday February 08, 2019 @05:18PM (#58091484)

          And who are you to demand that everyone needs a job?

          I don't think everyone needs a job. But I do think if I'm paying to support you, you in turn should making an effort to be self sufficient. If you don't want a job or my money then by all means do as you wish. But if you are asking for something from me, I'm well within my rights to ask something from you in exchange.

        • Re:The Results (Score:5, Insightful)

          by kaatochacha ( 651922 ) on Friday February 08, 2019 @06:23PM (#58091830)

          I dunno.l have a few relatives who talk about this, but when push comes to shove I'm actually doing more volunteer work than they are, and I have a full time job.
          They like the idea of helping the destitute, they just can't motivate themselves to do it. And when they eventually do, it's a never ending litany of how much of a difference they made- meanwhile I'm buying the sandwich they're eating while telling me what a capitalist I am.

          I also believe that work can beneficial on it's own.

      • Re:The Results (Score:5, Insightful)

        by UnknownSoldier ( 67820 ) on Friday February 08, 2019 @03:29PM (#58090830)

        /sarcasm Because having a job is the only source of meaning in a person's life.

        Devil's advocate:

        Maybe economy shouldn't be the driving factor? Open Source exists regardless of financial compensation.

        Animals have lived on this planet for millions of years without money. Why are humans the only stupid animal who haven't figured this out?

        > We'd all love to sit around all day and just be mailed cheques for doing nothing

        Speak for yourself. In my free time I'm building, creating, inventing, researching, work on my games, etc. That is a far cry from "nothing."

        Yes, people can get bored doing nothing. While some will continue to due nothing, most people want to feel useful, needed, and accomplish something meaningful to THEIR life.

        --
        "NEVER mix business and pleasure; for someone will take pleasure in fucking your business over."

        • Yes, people can get bored doing nothing. While some will continue to due nothing, most people want to feel useful, needed, and accomplish something meaningful to THEIR life.

          I'll go a step further. If you prevent people from working, they become restless and aggravated. That's how revolutions start. [wikipedia.org] Some people think it's the poor and hungry masses that overthrow governments. However, I don't see North Koreans overthrowing the government. Idled able-bodied workers are the ones who start trouble.

          "Idle hands are the devils playground" and all that.

      • Re:The Results (Score:4, Insightful)

        by Opportunist ( 166417 ) on Friday February 08, 2019 @04:59PM (#58091354)

        Get WHAT job? Do you offer one?

        You might have missed it, but there's a HUGE number of unemployed people, especially among those with lower levels of education. Take a wild guess why this could be the case.

        a) Because they don't enjoy eating.
        b) Because they love living in a roach motel.
        c) Because there are no fucking jobs.

        And no, you don't get to call someone.

    • Re: (Score:3, Insightful)

      by chiefcrash ( 1315009 )

      It did not reduce unemployment, but it reduced the stress of that situation for people. That social impact of that cannot be ignored.

      The social impact of making people comfortable with being unproductive members of society can't be ignored either....

      • At $700 per month, the cost isn't that high. If you did that in the U.S. it comes out to $2.7 trillion which is about the same as mandatory spending (Social Security, Medicare, etc.) in the U.S. Federal budget.
        • Re:The Results (Score:4, Interesting)

          by cayenne8 ( 626475 ) on Friday February 08, 2019 @03:11PM (#58090698) Homepage Journal

          At $700 per month, the cost isn't that high. If you did that in the U.S. it comes out to $2.7 trillion which is about the same as mandatory spending (Social Security, Medicare, etc.) in the U.S. Federal budget.

          Trouble is, if you're using something like UBI to replace SS, or food stamps, etc....what happens with irresponsible people (and yes, there are a number of them today on these welfare programs), goes out 2-3 months in a row and blows their entire UBI income check on drugs, partying, etc.?

          SO, no you have given this person money, they blow it and now have no money for food, shelter, etc.

          Do you now give them MORE money or just let them starve on the street.

          If you say the former...then, when does it stop?

          These would not be isolated cases mind you.

          • Re:The Results (Score:4, Interesting)

            by F.Ultra ( 1673484 ) on Friday February 08, 2019 @03:26PM (#58090800)
            If it replaces Social Security it replaces Social Security so by definition those people would not get more money. For that to happen you would have to have both UBI and SS which would not be one replacing the other.
      • It did not reduce unemployment, but it reduced the stress of that situation for people. That social impact of that cannot be ignored.

        The social impact of making people comfortable with being unproductive members of society can't be ignored either....

        I imagine that depends on the definition of "unproductive members of society" and if there are ways of contributing w/o having a job. The money offered isn't really enough to be *that* comfortable, especially assuming one were previously making more and living at a commensurate level, but it might be enough to keep one from becoming homeless, destitute or a criminal -- which all have higher costs and negative impacts on society. I'll note that Finland also has universal healthcare.

    • I'd be glad that the stress of going to a job and paying taxes reduced the stress of someone who can't be bothered.

    • by hey! ( 33014 )

      You know, in the behavioral psychologist B.F. Skinner's novel, Walden Two, he posited a society where people were paid *more* to do crappy jobs. That's actually the opposite of the real world where crappy jobs pay little and nice jobs tend to pay more.

      This kind of addresses the problem where you (a) want to make sure everyone has enough to live on and (b) feel that everyone ought to do some kind of work as a matter of principle. There are jobs that nobody would do if they had any other choice, like the pe

    • Re:The Results (Score:5, Informative)

      by The Cynical Critic ( 1294574 ) on Friday February 08, 2019 @03:24PM (#58090786)
      Finn here BTW.

      The Finnish Social Insurance Institution (KELA), i.e the people who manage social security and other benefits payments, has been a massive hassle to deal with that constantly screws things up for as long as I can remember. Anyone who's dealt with them to any significant extent will have personal horror stories to share so and they're more or less universally reviled. Thus it's pretty clear that these people are happier most probably because they don't have to deal with KELA, not because of the unconditional benefits payment.
  • by enriquevagu ( 1026480 ) on Friday February 08, 2019 @01:42PM (#58089972)

    The results from experiments with a random selection of 2000 people cannot be extrapolated to a hypothetical situation of Universal Basic Income. Job dynamics when everybody has a guaranteed source of income would be... interesting.

    • The results from experiments with a random selection of 2000 people cannot be extrapolated to a hypothetical situation of Universal Basic Income. Job dynamics when everybody has a guaranteed source of income would be... interesting.

      In addition, it depends on if the goal was/is to help people find jobs or be happier and/or more secure. From TFA:

      So, did it work?

      That depends what you mean by 'work'.

      Did it help unemployed people in Finland find jobs, as the centre-right Finnish government had hoped? No, not really.

      But for many people, the original goal of getting people into work was flawed to begin with. If instead the aim were to make people generally happier, the scheme would have been considered a triumph.

      "I am still without a job," he explained. "I can't say that the basic income has changed a lot in my life. OK, psychologically yes, but financially - not so much."

      Finland has universal healthcare and I think people also having some financial security regardless of job status, perhaps even just enough to help offset basic bills, is helpful in many ways -- not just financial.

      We have unemployment insurance here in the US (paid into by companies), but (from my experience) it's a very, very small amount that's not anywhere near enough to actually live on, e

  • People weren't meant for that... you suggesting that this would make them happy.
  • by alvinrod ( 889928 ) on Friday February 08, 2019 @01:45PM (#58090004)
    A lot of people like to point out that basic income will not motivate people to work, yet we're subsidizing that laziness, and that's certainly true. However, the mistake is assuming that we aren't paying for it already. I would rather use a basic income to replace all of the existing social programs that we spend billions of dollars on per year. It's far better solution in that it's more adaptive (food stamps are useless if you need to repair your car to get to a job) and less expensive to administer since it's a single program.

    But it's also necessary to look at it in terms of other costs it might help prevent. People without money or any way to obtain it aren't going to sit and starve. More often than not they turn to some form of crime. It costs a lot of money to hire a police force necessary to deal with that crime and to incarcerate the criminals who perpetuate it. If $700 a month stops us from having to pay almost four times that amount to lock that person up in jail, we're recognizing cost savings there as well.

    I think that large scale government wealth redistribution schemes are folly, but a basic income is the best way to go about doing it. From a utilitarian point of view, we're already spending massive amounts of money on these types of programs. I think it's a good compromise because the left gets their government program and the right gets a smaller government.
    • A lot of people like to point out that basic income will not motivate people to work, yet we're subsidizing that laziness, and that's certainly true. However, the mistake is assuming that we aren't paying for it already. I would rather use a basic income to replace all of the existing social programs that we spend billions of dollars on per year. It's far better solution in that it's more adaptive (food stamps are useless if you need to repair your car to get to a job) and less expensive to administer since it's a single program.

      It's important to remember that we subsidize laziness by encouraging wealth transfer by inheritance and under taxing income from rent seeking behavior. We have divorced work from money a long time ago. Pension plans, retirement savings, 401(k) etc. are all sources of money without working. Yes work does create the initial seed capital but it's only through rent extraction (money without work) do these money piles grow so you can afford to live without working.

      So the way I look at it, UBI extends the bene

  • Comment removed (Score:5, Informative)

    by account_deleted ( 4530225 ) on Friday February 08, 2019 @01:45PM (#58090008)
    Comment removed based on user account deletion
    • by Anonymous Coward on Friday February 08, 2019 @02:16PM (#58090252)

      You really shouldn't live like you are. To say you can't change that is a lie you tell yourself. Cut one minor expense or two a month and you can have thousands saved over years of working. Take serious stock of your expenses and you can save many thousands. To say you can't do that is an idiotic lie you tell yourself.

      My household income is >$200k but my cable, movie and video entertainment bill is literally $0 out of habits formed when my income was not this high. I go to the library and check out TV shows and movies and watch youtube. I had netflix once until they decided to make it all about minorities. Now I have an extra $120 a year to save. Over 30 years, cancelling netflix alone is $3,600 without accounting for investment earnings.

    • Granted, I live paycheck to paycheck and have a small savings to take care of minor emergencies. But nothing to cover a single month of expenses.

      Why the hell are you doing that? It seems like you recognize the folly, but yet you choose to continue to do so.

    • The bulk of the homeless, maybe even the majority, are mentally ill. Reagan shut down the mental hospitals (aka insane asylums) in the 1980s with the idea that the states should fund them like they did every other medial expense except Medicare. The states never picked up the tab, so they closed down, and all those people got dumped on the streets.

      A lot of the rest are probably like you (I assume, since you don't give any financial details). Smart, well-educated, and capable of doing a decent job at w
  • If you want people to work low-end jobs, subsidize wages so employers can take useful advantage of that labor pool.

    Everyone wins.

  • Good study! (Score:5, Insightful)

    by SunTzuWarmaster ( 930093 ) on Friday February 08, 2019 @02:01PM (#58090152)

    A few things:
    1 - They did not get employment more than their counterparts (it doesn't help 'em find jobs).
    2 - They did not get employment less than their counterparts (they don't take the money and slack off).
    3 - They were collecting this instead of unemployment or other benefits (which may have different bureaucratic ramifications one way or another depending on program implementation overhead).
    4 - They were happier.
    5 - This is a successful experiment - it produced data in a controlled manner which can likely be replicated.

    There are a few narratives left to be explored. Here are some samples of such stories:
    (PRO) "UBI, as implemented, costs less than the collection of unemployment, food stamps, housing assistance, and other assorted benefits. Giving poor people money through a unified program decreases administration costs and allows for individual choice regulation in the marketplace without affecting employment outcomes."
    (debatable-PRO) "UBI, as implemented, is more expensive than unemployment costs in implementation, but results in happier and less stressful citizens."
    (neutral) "UBI, as implemented, did not result in people just sitting about the house."
    (debatable-CON) "UBI did not result in additional risk-taking, business-starting, or other activities, as hypothesized."
    (CON) "UBI cost the taxpayer money to pay people to be happier while they sat at home doing nothing productive."

  • Sounds good to me! (Score:4, Interesting)

    by mspohr ( 589790 ) on Friday February 08, 2019 @02:24PM (#58090318)

    Reduced stress.... good
    Happier... good
    Don't have to find a shit job.... good

    I should note that all of the people selected for the experiment were jobless at the start. Is it a surprise that they were jobless at the end? Some of them did find work in spite of being paid not to work.

  • by lazarus ( 2879 ) on Friday February 08, 2019 @02:30PM (#58090366) Journal

    I thought that one of the big benefits of UBI is that it replaces a bunch of other complex, difficult-to-manage and costly programs. TFA does not state if they saw any cost savings from running the program. People who want to work are going to eventually find jobs. People who want to abuse the system are going to abuse the system. The question is if UBI is easier and cheaper to manage than supposed programs to encourage people to go back to work.

  • UBI (Score:5, Insightful)

    by fluffernutter ( 1411889 ) on Friday February 08, 2019 @02:34PM (#58090390)
    No one says that UBI makes people work more, just that it is not an impediment to people working. I'd say the result they found is completely what would be expected for a successful test.
  • by atcclears ( 4144437 ) on Friday February 08, 2019 @03:00PM (#58090600)
    We don't advocate feeding wild animals since it introduces long-term, bad behaviors such as a lack of foraging skills, attracting too many animals to an area, and increased reproduction rates due to an abundance of food. It also increases the risk of a disease outbreak due to more animals in the area. So why do we promote basic-income programs for younger, healthy people?
    • by jeff4747 ( 256583 ) on Friday February 08, 2019 @03:50PM (#58090982)

      So why do we promote basic-income programs for younger, healthy people?

      Because humans are a wee bit more complicated than animals, and have desires beyond mere survival.

      The experiment showed the UBI group got jobs at the same rate as the control group. That means the program did not make those people lose their "foraging skills".

  • by melted ( 227442 ) on Friday February 08, 2019 @06:45PM (#58091920) Homepage

    People don't work if they don't have to, news at 11. I mean, this is common sense, no? Easily 9 in 10 people wouldn't lift a finger if they could have shelter, food, and healthcare without lifting a finger. I would, but there's no way I'd work on anything I'm not interested in.

The rule on staying alive as a program manager is to give 'em a number or give 'em a date, but never give 'em both at once.

Working...