As if we didn’t already know that it was fine and dandy to be a Scandi, here come the Finns with another radical proposal to turn societal norms on their head.
Finland’s government are considering giving out a monthly lump sum of money to all its citizens. All adults will receive it, irrespective of whether or not they collect any other income. Oh, and did we mention it was tax-free?
A poll commissioned showed that 69 per cent of the Finnish population supported the plan (the other 31 per cent presumably didn’t hear the question correctly).
There’s just one catch: the national basic income would replace all other benefit payments.
If approved, every citizen will receive the tax-free payout of 800€ (approximately $1170) a month. The idea has been borne out of Finland’s record levels of unemployment, and fans of the proposed scheme hope that it will move people back into work.
So, giving out free money to make people work more? Oh, Finland! Next you’ll be introducing Wife Carrying as a national sport (no, wait… that one already exists)
Well, counter-intuitive though it may seem, let’s hear them out.
In its current state, many unemployed citizens would actually be worse off financially if they accepted low-paid temporary work and lost welfare payments as a result. Therefore, many continue to claim benefits rather than look for a job. So with the buffer of this monthly check, many say it will encourage the jobless to get back into the world of work.
Prime Minister Juha Sipila has backed the move, saying that he believes “a basic income means simplifying the social security system”.
It’s certainly a fair point. The removal of benefits would cut out many of the administrative costs incurred in just figuring out who gets what. Plus, advocates say that it would reduce school drop-out rates and healthcare costs.
And although the idea may sound novel, it’s actually a bit of a throwback for Canadians. Dauphin, Manitoba trialled the basic income model back in the 1970s and it was largely received positively in both social and economic respects (though, notably, they did not opt for this permanently.)
Of course, questions will be raised. At €46.7 billion a year, it won’t be cheap. And is it fair for well-off individuals to receive financial aid? What will happen to those who, under this new plan, receive less in benefits than they had previously?
With the Netherlands trialling the scheme in certain cities and Switzerland holding a referendum, this could be where the future of European social security is headed.
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