The Germans are embracing the “money for nothing” experiment: the model is also real in Lithuania, but only after solving the profit problem



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Not new to the world

43.2 thousand Eur – 120 Germans will participate in your pocket in the next three years, they will participate in a special experiment.

According to them, they will be paid 1.2 thousand every month. Base rent in euros simply for nothing. In exchange for this, they will simply have to answer questions from the researchers that will relate to how it was to survive on an unconditional income.

In general, such an idea is not new to the world. A few years ago, Switzerland held a referendum on the introduction of a basic income, during which three-quarters of the population rejected such a proposal, and Finland undertook a similar experiment a couple of years ago. She has 2,000. the unemployed paid 560 euros per month, which was paid as a continuous unemployment benefit, even if a person found a job.

The objective of the experiment was to find out if the money received can incentivize the population to seek work and seek a higher income.

Finally, as summarized, no effect on employment was detected during the experiment, but residents felt calmer and less nervous about their finances.

Delfi wondered if, in principle, the allocation of basic income, or the distribution of money for nothing, could be the same in Lithuania.

Money is offered to target certain groups.

Lithuanian sociologist and economist Romas Lazutka said that the issue of introducing basic income to the world is very old and was considered 30 years ago, and the name itself says that basic income could be paid to all residents simply because they live in a certain country. in the country.

Still, according to him, the big question is, how could basic benefits be combined with other existing benefits, for example money for children, pensions?

“Those who receive a pension of 400 euros from Sodra would still receive a basic income, say, +200 euros? So would they stop receiving a pension? Or if the family receives the child’s money, will the child’s money continue to be paid or no longer?

This is a key issue. I think that if the basic income is already introduced, then the child’s money of 100 euros would no longer have to be paid ”, he considered and presented a similar situation with pensions.

“After all, pensions are paid because you worked and earned them, and the pension can be 800 euros. So if you still give everyone a basic income of 200 euros, will that pension still be? Until these questions are answered, there are no pointless considerations, ”said R. Lazutka about distributing money to everyone.

Romas Lazutka

Romas Lazutka

© DELFI / Andrius Ufartas

Another thing, according to him, is that if everyone could receive at least 200 euros of basic income, it would open a big hole in the Lithuanian budget, which would require an increase in taxes.

“Let’s say you are retired, you receive a pension of 300 euros, and another 200 euros would be added as basic income.

But anyone who earns more and pays additional taxes would say that it is wrong to punish people who try to work, ”he said.

On the other hand, according to him, 200 euros would be a very low basic income, which would make it difficult for most of them to earn a living.

R. Lazutka’s proposal is to ensure and increase basic income for separate groups of the population.

“It is very good that children know about children’s money, that is, their basic income. Let’s do the same with older people. Because there are those who do not receive a pension from Sodra, there are few, but they are increasing, and they do not have insurance experience, because it takes 15 years.

And if you don’t, you receive a social assistance pension, which is probably less than 200 euros. Let’s give them those 300 euros so they can earn a living and that will be their basic income, “he said, adding that even if it required raising taxes, such an increase would be justified.

“However, the universal basic income cannot be taken seriously without discussing all the social benefits,” he concluded, reiterating that Lithuania should guarantee at least a minimum basic income by closing gaps and retiring pensioners and other vulnerable groups.

Says social benefits should be abolished

Luminor Bank economist Sigismund Mauricas Delfi also commented that Lithuania can be said to still have a basic income today, only it is wrapped in a completely different sheet of paper.

“Virtually all welfare states have a basic income. They are not necessarily universal and are not necessarily so named.

In our case, this is the basic pension, the child’s money, and there is also a threshold below which a person who lives is supported by the state, ”he said.

Sigismund Mauricas

Sigismund Mauricas

© DELFI / Domantas Pipas

According to the economist, in general he is in favor of moving towards a basic income, because, as he said, finding an end among those who today receive social benefits is sometimes very difficult.

“These people sometimes get even more now than workers because there is no unified system.

One receives support from the municipality, another from the government, non-governmental organizations, etc. It would be better to clarify that whole system, make it clear that we support a certain level of income.

While it shouldn’t be a huge amount, I think you could get up to € 200. Such a system would be more transparent and fair, it would possibly be the same for everyone, it would be received as a tax-free amount of income.

Automatically, there would be no more conflict between dark, honest and dishonest people. Then all social benefits should be abolished ”, he commented.

According to Ž. Maurico, if our state abolished all social benefits, there would certainly be money in our budget to pay for basic benefits.

“And yet, if a person is rich, has money, it might be possible to transfer their basic income, such as children’s money, to other people or to a common fund.

Then there could be a list of the board of honor, which would be voluntary, ”said the economist.

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