Archive for the ‘Universal Transfers’ Category

universal age pensions for India

Monday, October 8th, 2018

This is one of the best, concise essays I have seen in defence of universal age pensions. The author, Prabhat Patnaik, is an Indian economist known to be a Marxist, but I see nothing Marxist in this essay. Since the newspaper link may not last long, I have taken the liberty of sharing with TdJ readers an edited version that is about half as long as the original. To download and read the full essay, click on the link below. (more…)

Frank Field on universal pensions

Monday, September 24th, 2018

The British politician Frank Field, on the 70th anniversary of the famous Beveridge report that established a welfare state in his country, expressed very clearly my own views regarding the important but limited role of government in provision of old age pensions: there should be a universal pension for everyone of pensionable age, financed from general government revenue, regardless of the income or wealth of a beneficiary. Everyone is free to supplement this basic pension with his or her own savings, or wages from working beyond the official state retirement age.

This system, though simple, is rarely put into practice. (more…)

basic income pilot in a California city

Monday, August 27th, 2018

Beginning in 2019, a demonstration of basic income will begin in Stockton, a city of about 300,000 residents, in California’s Central Valley. One hundred households will be selected randomly from neighbourhoods where the median household income is at or below the city median of $46,033 a year. One person, 18 years of age or older, in each selected household will receive $500 a month for 18 months. It is not clear how the recipient within each household will be selected. Benefits will be unconditional, meaning that there are no work requirements and no restrictions on how the money is spent. This makes the experiment more universal than most of this type. The benefits will be funded entirely from private donations, so there is little chance that payments will continue beyond the 18-month period. (more…)

New Zealand’s universal pension is in danger

Saturday, June 16th, 2018

New Zealand has a universal pension scheme that is the envy of the world. It is simple, affordable, and eliminates poverty in old age. When a qualified resident reaches the state pension age, he or she receives a basic, flat pension, regardless of income, wealth or employment history. This benefit, called ‘Superannuation’, is financed from general government revenue. Earmarked taxes are not levied to support it, but benefits are taxable as regular income, so net benefits are lower for pensioners who have income from work or from savings. (more…)

old age pensions in the Philippines

Sunday, May 27th, 2018

In January 2017, the government of the Philippines increased social security pensions by 1,000 pesos (19 US dollars) a month without any increase in contributions. Simultaneously, the government reduced income taxes. A young Philippine economist writes that this was bad policy first because it increases government deficits and second because it helps the wealthy at the expense of the poor.

Fewer than a third of the country’s workers have access to any retirement pension at all. The vast majority of pensions are from the social security system, and the beneficiaries are not exactly poor. Increasing their pensions by increasing deficit spending does not help those who do not participate in the social security system, so have no entitlement to a pension in old age.

It would be much better, this economist believes, for government to introduce a universal pension, payable to all residents from the age of 60. I agree, and am pleased to see this call for a simple, universal pension in a country with so much poverty.

All in all, the yawning gaps of the country’s social pension system require bold, comprehensive, and forward-thinking solutions like universal social pension – not simplistic, superficial, and short-sighted ones like [Rodrigo] Duterte’s pension hike. ….
(more…)

universal health care and universal pensions

Friday, April 27th, 2018

This week’s Economist magazine contains a superb leader, “Universal health care, worldwide, is within reach“. Reading it, it occurred to me that many of the points in it apply equally to universal basic income for older persons.

In a major section of the leader, titled “How the other half dies”, I did little more than substitute “universal basic pensions” for “universal basic health care”, and came up with the following essay. (more…)

pre-funding social pensions in Bermuda

Sunday, April 22nd, 2018

At least some residents of Bermuda, a wealthy self-governing British Overseas Territory in the North Atlantic Ocean, with a tiny population of 63,779, are worried that government has not saved enough to pre-fund its noncontributory old-age pension promises. Benefits as of 2015 were US$103.81 a week for residents aged 65 and older with total annual income greater than $4,000 and US$106.83 a week for residents with less income. Additional requirements are citizenship and at least 10 years of continuous residence in Bermuda in the past 20 years. (more…)

private and social pensions in Latin America

Sunday, April 8th, 2018

FIAP (Federación Internacional de Administradoras de Fondos de Pensiones/International Federation of Pension Funds Administrators), the Latin American trade group of private administrators of government-mandated contributory pensions, now acknowledges the need for social pensions, financed from general government revenue. Private managers of Latin American pension funds in the past tended to ignore social pensions, at least in part because these provide little or no opportunity for private profit.

A recent 9-page FIAP report begins by explaining the need for social pensions: (more…)

call for universal pensions in the Philippines

Saturday, March 31st, 2018

Senator Grace Poe has filed a Bill to provide all citizens aged 60 years and older a monthly pension of P1,500 (US$29). (more…)

debating universal basic income

Thursday, February 15th, 2018

Universal Basic Income (UBI) seems like an idea whose time has come, given the widespread fear of workers that their jobs are threatened by automation (robots). Nonetheless, there are many who oppose the UBI, often on grounds that giving people “money for nothing” will discourage work. I never found this argument to be convincing. Means-tested (targeted) benefits almost always require an able-bodied person to be unemployed to receive benefits. In short, government pays citizens for not working. The unemployed who find jobs lose their benefits. A UBI, in contrast, does not require recipients to be unemployed, so does not discourage work. (more…)