Hyvää päivää! This article today is about the experiment in Finland. That´s why I tried to greet you in Suomi, the so-called Finnish language 😀 In Finland they investigated the basic income without conditions. They´ve selected 2000 unemployed persons and transferred them 560€ per month within these two years of that experiment. I must say that in addition to these 560€ there are Housing benefits and other governmental helpings. With the beginning of 2019, this experiment has ended and I guess it´s time for a resume.
For me personally, it sounds great at first sight, but there are many problems there. Let´s take a closer look why?
From the political side: Liberals want people to work permanently and left-winger Parties want people to live without worries even if they haven´t a job. What is the right amount of money to give them without any conditions? Difficult to say, because it comes with it if an unemployed person gets a job and doesn´t feel the difference in his/her wallet, the motivation of keeping this job declines. The Kela Institute in Finland calculated with the amounts of 500, 750, 1000 and 1500 € as a basic income. The effect was obvious that the smaller amounts performed significantly better than the higher amounts.
But there´s one advantage for the amount of 1500 €, which would definitely lead to almost zero incentive to work but save costs in terms of bureaucracy because it´s all in one. Anyway, there´s a huge problem with it, why the basic income without conditions won´t come soon. In the case of Finland, it´ll bring a really sharp tax raise with it.
So, we spoke about the right amount for keeping the incentive to find a job and we examined the tax point of view.
What are the positive aspects of it?
In Finland, people in difficult situations lost their jobs and really appreciated the experiment of the basic income. They´ve built a start-up and invested in their dreams. They invested in further education or used this feeling of having less pressure to find a job as soon as possible as a source of new motivation to find a job they really love to do. Even the simplicity of it brings a lot of advantages for the unemployed person. For these people, it´s mostly a lot of stress to interact with the job center to fulfill their expectations to receive the unemployment benefits.
In the end, it´s a Toss-Up. There are some aspects for the basic income and some against it. The chapter has not closed and other countries should try it or even figure out how to implement it the right way. In Switzerland, they have decided with 23% against the basic income. The referendum has shown that the Swiss people don´t like the idea of it. Conclusion, each country should discuss it and develop a system of how to solve this kind of problem the best way possible.
So Guys, tell me your thoughts!
The following episodes will lighten up the other continents of the HR World. So, be ready for it! 😉