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

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.

45 of 694 comments (clear)

  1. The Results by Herkum01 · · Score: 4, Insightful

    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.

    1. Re:The Results by Viol8 · · Score: 5, Insightful

      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.

    2. Re:The Results by chiefcrash · · Score: 2, Insightful

      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....

      --
      Show me on the 1st Amendment bobblehead where the moderator touched you...
    3. Re:The Results by Anonymous Coward · · Score: 4, Insightful

      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.

    4. Re:The Results by Anonymous Coward · · Score: 3, Insightful

      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.

    5. Re:The Results by Anonymous Coward · · Score: 3, Insightful

      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 would gladly make.

      "Real work" is making calculated decisions all day. "Real work" is picking what shade of gray is best with huge consequences if you get it wrong. Just because someone is doing it in style doesn't make the work easier. In fact, it means you have more to lose if you screw up.

      Learning a trade or doing other semi-skilled labor is real work but is absolutely nothing compared to the stress and time dedication that comes with running large organizations or the entire USA.

    6. Re:The Results by Thelasko · · Score: 5, Insightful

      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.

      --
      One of our competitors trademarked the term "hypothesis". From now on, we will call them "boneheaded ideas".
    7. Re:The Results by Anonymous Coward · · Score: 3, Insightful

      > They're professional money-droppers.

      Exactly. They're the ones taking the financial risk.

    8. Re:The Results by rikkards · · Score: 4, Insightful

      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

    9. Re:The Results by eddeye · · Score: 5, Insightful

      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.

      --
      Democracy is two wolves and a sheep voting on lunch.
    10. Re:The Results by UnknownSoldier · · Score: 5, Insightful

      /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."

    11. Re:The Results by Anonymous Coward · · Score: 1, Insightful

      >Most unemployed people don't do "nothing". They spend their energy on voluntary activities that enrich the community.
      Source: your ass. Citation absolutely needed.

    12. Re:The Results by XxtraLarGe · · Score: 3, Insightful

      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?

      --
      Taking guns away from the 99% gives the 1% 100% of the power.
    13. Re:The Results by Opportunist · · Score: 3, Insightful

      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.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    14. Re:The Results by grep+-v+'.*'+* · · Score: 3, Insightful

      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.)

      --
      If the universe is someone's simulation -- does that mean the stars are just stuck pixels?
    15. Re:The Results by inhuman_4 · · Score: 4, Insightful

      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.

    16. Re:The Results by kaatochacha · · Score: 4, Insightful

      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.

  2. Re:Wow, well I'm shocked! by Anonymous Coward · · Score: 5, Insightful

    What happened to the crime and traffic rates?

    What is the cost of living in Finland?

    Not enough info in the story.

  3. Most people are lazy by ASCIIxTended · · Score: 1, Insightful

    I know people on welfare that get small checks like this each month. The only reason they don't try to work is because they will loose their free money, so instead they just find creative ways to live off what they are given. The last thing they would ever consider doing is finding a job.

    --
    I do not belong to the church of the lowercase 'i'
  4. Size of the experiment matters by enriquevagu · · Score: 4, Insightful

    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.

  5. Re:Wow, well I'm shocked! by NicknameUnavailable · · Score: 5, Insightful

    This is actually a really shitty test. Give wage slaves a year of guaranteed pay and of course they will take the year off, it's the only time in their lives they'll get a year-long vacation before they've gone senile. Basic income tests which don't last for life are invalid (to say nothing of their non-randomized selection of candidates.) This whole study was propaganda to keep plebs thinking they need to spend every waking hour of the good parts of their life working for someone other than themselves.

  6. Still better than current policies by alvinrod · · Score: 5, Insightful

    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.

  7. Re:Wow, well I'm shocked! by belthize · · Score: 4, Insightful

    I'm on the fence about the whole thing but I find it interesting that there's an assumption that the result was a bad thing. I don't believe in an afterlife so you're born, you live, you die. The only thing that makes much sense during that period is to try and be happy and this study seemed to improve their happiness.

    Now, one might say 'fuck that, I paid for their happiness which makes me unhappy' which makes really good sense.

    The real question is, is there sufficient free energy in the system that we can provide food and lodging for humanity if they don't contribute *IF* we also provide increasing incentives to contribute. So you get a basic income for doing nothing and more and more for actually contributing to the system.

    I've seen no compelling objective modeling either way.

  8. Re:Wow, well I'm shocked! by 110010001000 · · Score: 4, Insightful

    Yeah, they should learn to code and then they can work for themselves.

  9. Have you considered by SPopulisQR · · Score: 1, Insightful

    Have you considered the stress that people experience when they need to pony up the money when taxes are being paid? Lack of empathy, cruel and cold immorality is so typical among the socialists.

    1. Re:Have you considered by jeff4747 · · Score: 4, Insightful

      Have you considered the stress that people experience when they need to pony up the money when taxes are being paid?

      If this causes you as much stress as "my children are starving and homeless", you need to re-evaluate your life.

  10. Re:Wow, well I'm shocked! by Anonymous Coward · · Score: 5, Insightful

    Thanks, after reading your comment I went and read the article more closely. It says

    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.

    As you say, that's an incredibly disingenuous summary. The big worry about UBI is that people won't work. The test is "do people work less?" and even on this very limited test, the answer is no. That's the unexpected (by anti-UBI people) answer that makes this test a resounding success. The fact that it's being sold as anything else is Finland's government and the media being dishonest.

  11. Good study! by SunTzuWarmaster · · Score: 4, Insightful

    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."

  12. Re:The State of Homeless by Anonymous Coward · · Score: 4, Insightful

    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.

  13. Administration Cost Savings? by lazarus · · Score: 5, Insightful

    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.

    --
    I am not interested in articles about life extension advancements.
  14. UBI by fluffernutter · · Score: 4, Insightful

    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.

    --
    Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
  15. Re:Its an experiment by Anonymous Coward · · Score: 0, Insightful

    "Trump supporters," which is the most mealy-mouthed goddamned phrase on the Internet, are still not as retarded as the communist faggots who feel the need to shoehorn Orange Man Bad into every single discussion they see.

  16. let me check by argStyopa · · Score: 2, Insightful

    So, if I understand what you're saying, handing out free benefits to people (instead of them earning them) makes them feel better but essentially doesn't improve their condition so you're left with a largely dependent group of people who cannot fend for themselves?

    http://www.hup.harvard.edu/cat...

    Who'd a thunk it?

    --
    -Styopa
  17. One of several societal conundrums... by atcclears · · Score: 3, Insightful

    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?

    1. Re:One of several societal conundrums... by Anonymous Coward · · Score: 1, Insightful

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

      So they'll vote for democrats.

    2. Re:One of several societal conundrums... by jeff4747 · · Score: 4, Insightful

      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".

  18. Re:Wow, well I'm shocked! by djinn6 · · Score: 4, Insightful

    The trial is limited by its length as well as choice of participants.

    From the article:

    From January 2017 until December 2018, 2,000 unemployed Finns got a monthly flat payment of €560 (£490; $685).

    Very few people would stop looking for work, or even consider a career change for the equivalent an $8000 check. If I wanted to start a business, I would need at least 2-3 years of savings, and if the business fails, I'd want something to tide me over until I find a new job. If I were to change careers to do something I think is beneficial to mankind, but doesn't pay much, such as teaching, I'd want enough to last me to retirement.

    The other problem is that unemployed people are already looking for jobs. The reason they don't have one is because they can't find one. Giving them money makes no difference. To see the economic effects of UBI, you'd have to give it to the entire population, which in turn stimulates demand and thus business and job growth.

    If they want to do a proper study, it should be 20 years, with a representative sample of individuals from all walks of life. An effort should be made to track spending habit changes, which would inform us on the potential wider economic impact.

  19. Re:The State of Homeless by Anonymous Coward · · Score: 1, Insightful

    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.

    The only thing (in bold) I got out of your entire post is that you're a racist scumbag.

  20. Re:Wow, well I'm shocked! by Freischutz · · Score: 4, Insightful

    This is actually a really shitty test. Give wage slaves a year of guaranteed pay and of course they will take the year off, it's the only time in their lives they'll get a year-long vacation before they've gone senile. Basic income tests which don't last for life are invalid (to say nothing of their non-randomized selection of candidates.) This whole study was propaganda to keep plebs thinking they need to spend every waking hour of the good parts of their life working for someone other than themselves.

    Year long vacation??? You are seriously overestimating what a luxurious al life you can lead on $695 dollars per month and it makes you sound like one of those clueless conservatives who think single mothers are living the high life on 7.25 dollars an hour working 16 hours a day 7 days a week while raising three kids. Speaking for myself 695 dollars per month would not even be enough to pay for rent or pay off the mortgage, even if I downgraded to a dirty cockroach paradise of a living space, not even close. If I wanted to prioritise not starving to death over paying off the mortgage on that UBI, I'd have to settle for housing in the form of a nice cardboard box under a bridge, that way, 695 dollars would do me fairly well for food, washing and clean clothes. If somebody held a gun to my head and made me choose between this $695 UBI, and working somewhere as a dish washer (instead of what I usually do, which is coding) I'd pick the dishwasher job in a heartbeat because even a crappy job like that just pays much better.

  21. Re:Wow, well I'm shocked! by dcw3 · · Score: 4, Insightful

    Sudden wealth that you're not used to dealing with is nowhere similar to handling a small sum that's less than average wage. You also don't suddenly have to deal with all the new "friends" that show up wanting a piece of the pie.

    --
    Just another day in Paradise
  22. Re:fixes benefit cliffs that make it better to not by cayenne8 · · Score: 2, Insightful

    That is by far the strongest appeal of a system like this. It all removes the inefficient black markets that foodstamps create. If I could ever believe this would be done instead of all the existing welfare programs and EITC, I'd be all for it.

    But, what do you do with the significant number of people that, rather than spend their UBI on food, shelter and other necessities of life....they BLOW it on drugs or other bad choices?

    What if they do this for 2-6 months or more in a stretch?

    Do you then let them starve on the street? What about their kids, these people fuck too you know.

    --
    Light travels faster than sound. This is why some people appear bright until you hear them speak.........
  23. Re:Wow, well I'm shocked! by guruevi · · Score: 3, Insightful

    In most places in the west, you can have all the necessities and then some with minimum incomes (either unemployment or otherwise). The rates are calculated based on the price of bread, income, communications etc.

    In most parts of the US, actually in all parts of the US, it will provide for a BASIC rent if the state doesn't outright pay your rent (like NY and CA where rents can be outrageous in the cities).

    Plenty of people live at the minimum income range across the entire US, whether or not they have a job, the majority of them does not end up stealing their way through life. This notion that you are required to steal from the rich because you are poor is a myth and extends well into the left mythos, where even if you do well, you are encouraged to steal from the rich because they don't "deserve" their wealth.

    --
    Custom electronics and digital signage for your business: www.evcircuits.com
  24. Re:Wow, well I'm shocked! by Cinnamon+Beige · · Score: 3, Insightful

    There isn't enough info, and I doubt a 2k test run will yield statistically detectable changes in crime and traffic rate. (Aside: what if crime rates actually went up due to UBI?)

    The biggest problem with 2k doing the test is; that's not enough people to tank the economy if this turns out to be economically important.

    That said, I would say that happiness in life is ultimately the most important thing. Happiness is what makes life worth living; but if the economy collapsed because of UBI, I don't think people would be happy for long.

    You can't experiment with UBI on 2000 people- you need to do it with a whole region, or country... I wouldn't want to be living in one of the first test places though in case it went wrong.

    The closest to a real life test of the sort you're talking about was communal farms where everybody got an equal share of the harvest--regardless of how much effort they put in.

    Turns out that many people are very lazy and will put in as little work as they believe they can get away with...which meant the harvest was bad, and a small group of people did the bulk of the work for functionally nothing, because they got as much as the person who didn't as much as twitch a finger to help. Which meant they stopped contributing labor--since they got the same as somebody who contributed nothing, they had no incentive to not match the minimum contribution--which meant that the fields just simply went unworked and the only people who ate were those who thought to raise food for themselves.

    Oh, and we got ideas like those who won't work, won't eat. (Those who can't work generally would get charity--even if it was in the form of the community finding some kind of work they could do, especially when it was seen as demeaning to not be given some job, no matter how symbolic it was.)

    This also is pretty common in cultures which aren't that far away in time from having been running on subsistence--somebody who doesn't contribute and isn't basically an investment is a parasite on their community, if they don't have that many basic resources to spare.

  25. Re:fixes benefit cliffs that make it better to not by green1 · · Score: 1, Insightful

    And this study proved that aspect to be worthless as the people didn't suddenly get jobs now that the benefit cliff argument was negated. So if the strongest argument for UBI is now disproven, even without actually trialling an actual UBI, when do we finally give up on this horrible idea?

  26. Re:Wow, well I'm shocked! by Cinnamon+Beige · · Score: 3, Insightful

    "The closest to a real life test of the sort you're talking about was communal farms where everybody got an equal share of the harvest--regardless of how much effort they put in."

    That's make sense on a society where labour makes a difference, but we are heading to a society were labour means shit and what really meets ends is ownership of increasingly labour-less means of production. A totally different scenario.

    Key phrase here is "heading towards." Until we have a 100% post-scarcity system that can maintain itself indefinitely without a human twitching a finger, labor does not mean shit and the last thing anybody who does not expect to be part of the ruling class should want is to have the state have control of the means of production and the distribution of goods. You want this to end well? Every bit of the system needs to be not scarce--including the means of production and everything one might need to run it forever--so as to ensure no group could get a monopoly, and the state itself needs to have slightly less power than a dead cockroach.