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  January 12, 2004


One of the objectives of the ideas of Radical Simplicity is to free us from being wage slaves. The book suggests the way to do that is to spend less and save more, so that eventually your savings are enough to live on. I think that part of the book is naive, since for many low- and middle-income families, even the most frugal and efficient spending plan will never get them there.

But the concept got me thinking anew about a very old idea -- the guaranteed annual income. The concept of a GAI is that, in a just society, no family should be forced to live below the poverty level. To achieve this, a negative income tax is introduced to increase every family's income to the poverty level -- say $20,000 per adult and $10,000 per child in the family. Let's set aside for a minute the question of whether we could afford to do this -- clearly at present we could not -- and ask the question whether you could live a comfortable life at that income level. And if so, whether we could actually allow corporations to become as 'productive' as they want to be -- employing only the absolute minimum number of people, anywhere in the world, as cheap as they can get them -- because no one in North America would have to work.

Here's a table that shows how the average middle-income American family (1.5 adults and 1.0 children) currently spends its 'earned' income, the budget that would be available under a guaranteed annual income scheme, and some of the methods suggested in Radical Simplicity and elsewhere that could make that budget sufficient, even ample, thanks to the additional 40 hours a week you now have available to look after your home and family, instead of paying others to do it for you.


Current Spending
GAI Budget
How Achieved
Food
$9,000
$7,000
Grow some of your own, eat unprocessed
and unpackaged foods, become vegetarian
Clothing
3,000
3,000
Make your own
Rent/Mortgage
Maintenance & Utilities
18,000
18,500
Do your own maintenance & repairs;
Improve energy efficiency; Share tools
Transportation
12,000
4,000
Sell one of your cars, cycle
Recreation
3,000
3,000
Create your own entertainment; swap
Health, Education
4,500
-
Make it universal and free
Insurance & Savings
6,000
-
No need
Personal Goods
1,500
1,500

Miscellaneous
3,000
3,000





TOTAL
$60,000
$40,000


The key to all of this is that not working as an employee trades income for time, and in some cases that time is worth more than the money we're trading for it (in financial terms alone, not to mention the social and spiritual value of that recaptured time). The other essential condition is that we need to re-learn self-sufficiency skills that our countries' pioneers had -- sewing, gardening, cooking from scratch. What do you think -- is it a model worth considering, a goal for our countries to strive towards as a means of solving a host of social, economic and environmental problems? Or would the average family squander the money on gambling, alcohol and drugs, as conservatives would probably insist?

3:19:03 PM  trackback []  comment []


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