Hamburg in the basic income experiment: Who will pay for the future?

Hamburg in the basic income experiment: Who will pay for the future?

The debate about an unconditional basic income (UBI) is gaining momentum in Hamburg. A groundbreaking referendum will take place on October 12, 2023, in which citizens can vote on a model project that will enable 2,000 selected Hamburg residents to benefit from a basic income. This project was launched by an alliance of various foundations and organizations that have significant financial resources. Loud World The Haleakala Foundation is the largest donor with support totaling 340,000 euros.

Funding for the project also includes contributions from the Eutopia Foundation from the USA and the dm Werner Foundation. Together, these foundations are donating around 680,000 euros to the initiative. While the exact proportion of small donations in the overall budget is not clear, it is certain that the campaign urgently needs financial support to move forward. Interested parties can make tax-deductible donations via the initiative's website and thus contribute to the desired model experiment Basic income referendum reported.

Challenges and political reactions

But approval of the project is not without problems. The Hamburg Senate government has already declared a previous bill to be inadmissible and remains skeptical. The SPD and the Greens expressed their opposition, while the left-wing faction signaled its willingness to support the project. The CDU even warns of the high costs that the city could face. However, if the citizens' vote on October 12th is positive, the citizens would have to implement a corresponding law that would oblige the state government to select a research partner within two years in order to start the UBI model. This will ultimately be tested in the Hanseatic city from 2027.

In total, costs of around 50 million euros are planned for the model experiment, with 42 million euros earmarked for payments to participants and 8 million euros for accompanying research. The 2,000 participants are intended to form a representative cross-section of Hamburg's urban society.

Unconditional basic income in context

Despite the promising approaches to UBI, there are still many hurdles to overcome in the political discussion. The publication of the book “Unconditional Basic Income” by Rolf G. Heinze and Jürgen Schupp discusses not only the opportunities but also the risks of this idea, especially in a democratic welfare state like Germany. The authors show that there is currently a lack of a clear implementation path that would be necessary to establish the concept not only theoretically but also practically. The change in social security requires a look at innovative solutions such as UBI, which must be embedded in current challenges DIFIS summarizes.

The coming weeks will be crucial – both for the political landscape in Hamburg and for the possible implementation of an unconditional basic income in Germany. Hamburg citizens are faced with the opportunity to vote for or against an experiment that could have far-reaching consequences. One thing is certain: there is a lot to discuss and consider before a decision can be made.