Introduction

Abstract

The Basic Income European Network (B.I.E.N.) defines a basic income (hereafter abbreviated as BI) as an income unconditionally granted to all on an individual basis, without means test or work requirement. In its pure form, a BI is equivalent to a negative income tax (see chapter 4). The main difference, apart from that Europeans are more inclined to discuss BI and Americans negative income tax, is that the former is paid ex ante, whereas the latter is paid ex post. In this book I want to put forward some arguments why the proposal of a BI (or negative income tax) is worth taking seriously as an alternative to the present, conditional, schemes of social security in force in all modern capitalist welfare states. The main claim is that the more serious the problem of (longlasting and large scale) involuntary unemployment, the more attractive and relevant the idea of BI. If the economy would ever be in a state of (near) full-employment, the main arguments given in this book in favour of an unconditional and substantial BI would not pertain. If the labour market would always clear (no involuntary unemployment) and everyone would have equal earning capacities, then everyone has the same access to jobs and the same opportunity to convert leisure time into money income by means of paid work. Consequently, the case for a BI would be weak, if not absent. Now suppose talent-based earning capacities are unequal, but keeping the assumption of full employment.