The Peoples’ Union believes every American has the right to a basic minimum income and safe, affordable housing. Both fulfill the vision that FDR had in his economic bill of rights. Without basic income security and housing, individuals and families will fail to thrive.
We need to abandon stereotypes about those who receive social welfare benefits. The majority of people on government funded social welfare benefits use these benefits temporarily, are predominantly families, and include the well-educated. Any average American can quickly fall into economic trouble with the loss of a job, the birth of a child, the death of a family member, a serious illness, or any other unfortunate event that can befall any human being.
As federal spending on income security, healthcare, and the social safety net continues to increase we need to ensure that the system is economically sustainable for future Americans.
While certain programs have not seen recent large increases in federal spending, such as SNAP and housing assistance, income security and health spending continue to increase precipitously. We believe that a Universal Basic Income benefit may be more efficient in addressing income security for all Americans by potentially replacing our patchwork of social safety net programs.
Universal Basic Income
Universal Basic Income (UBI) programs have been piloted in cities across the country including Columbia, South Carolina; Birmingham, Alabama; and Stockton, California. Some believe that individuals who receive a basic income from the government would spend it irresponsibly, but the research evidence strongly suggests otherwise. UBI pilot programs administered in cities have shown that recipients use the income on necessities such as food, childcare, and transportation. The economic stability that UBI payments create actually increases the likelihood that recipients will look for and obtain a job, leading to greater long-term economic independence. Adults who participated in the Stockton experiment experienced improved mental health and less fatigue during the time they received payments (SEED, 2021). The New York Times also reports that UBI programs are associated with healthier brain development and more early learning opportunities for children (Holder, 2022).
The Peoples’ Union is in favor of a UBI benefit for every citizen whose income falls below poverty level based on the cost of living in their area. We recommend that UBI payments total $1,500 a month until a tax return show a recipient has risen above poverty level due to employment or other income (e.g. sale of assets). If an individual’s social safety net cash benefits (e.g. SNAP, TANF) fall below $1,500, and they are below poverty level, the amount needed to bring them up to $1,500 will be provided through the UBI program. Those with social security disability (SSD) or social security retirement benefits should be eligible for UBI payments if they are living below poverty level and do not have any other income sources. Those receiving unemployment or workers’ compensation should also receive a UBI payment that brings them up to $1,500 a month if their income falls below the poverty level. For those who choose not to accept UBI a tax write off will be provided for the amount they would have received from monthly UBI payments.
Notable figures such as Elon Musk and Bill Gates have expressed the opinion that implementing a UBI in the U.S. will be absolutely essential once the artificial intelligence revolution begins to displace American workers in large numbers including truckers, drivers, fast food workers, factory workers, and office workers, among others. As suggested by Merola (2022) an AI robotics technology tax levied on corporations that replace human workers can help pay for UBI.
By providing a floor of income for all through a federal universal basic income program, we can foster a sense of economic security that all Americans deserve, and which is their right as human beings. Benefits extend beyond immediate financial relief. With the assurance of UBI, individuals will have the freedom to explore entrepreneurial endeavors, pursue further education, or invest in their well-being. This will unleash human potential, driving innovation and fostering economic growth.
Minimum Wage
The federal minimum wage stands at $7.25 today. While some states have set a higher minimum wage, the federal minimum wage has stagnated since 2009. The federal minimum wage is woefully low in light of how productivity has grown over the decades. Those being paid minimum wage are not sharing in the prosperity of the nation. Baker (2020) from the Center for Economic and Policy Research adeptly explained it this way, “Until 1968, the minimum wage not only kept pace with inflation, it rose in step with productivity growth. The logic is straightforward; we expect that wages in general will rise in step with productivity growth. For workers at the bottom to share in the overall improvement in society’s living standards, the minimum wage should also rise with productivity.” Today, the Peoples’ Union advocates for an increase in the minimum wage to at least $21.50 in recognition of workers’ contribution to the prosperity of the nation.
Housing Security
The cost of renting or purchasing a home today is incomparable to what it was for the baby boomer generation. Many young people and families are finding it difficult to purchase their first home until they are well into their 30’s or even 40’s. The graph below illustrates the difference in affordability in housing between those starting out in the 1970s or 1980s, compared to today:
The Peoples’ Union supports the following ideas to address the ongoing affordable housing crisis:
- Temporarily suspending companies like Airbnb that profit from the crisis to prioritize long-term housing solutions over short-term rentals, especially during times of crisis.
- Require landlords to offer minimum six-month leases for all properties to discourage short-term rentals.
- Streamline the permitting process for home builders. By removing unnecessary bureaucratic barriers, we can encourage increased construction activity.
- Closely monitor essential resources like lumber, steel, concrete, and others. If necessary, the government will subsidize these materials to support affordable housing construction. The funding for these subsidies will come from redirecting subsidies from industries like fossil fuels
We are also concerned about the vast housing real estate holdings in this country by individual investors and companies that rent or flip housing. According to Eric (2023), approximately 25% of all single-family homes are owned by investors. We would like to see more moderate-income individuals and families be able to purchase a home so that they can build wealth through home equity. We support the introduction of legislation mandating financial institutions, including hedge funds and corporations specifically formed to buy real estate, to divest their holdings within three years. This phased approach will ensure that 50% of residential housing inventory is sold to the public at market value in the first year, followed by an additional 25% divestment each subsequent year until all real estate is owned by consumers, families, and single residents.
Addressing Homelessness
Homelessness continues to be a problem across the country, especially in expensive large cities such as New York, San Francisco, and Los Angeles. The right to shelter is a basic human right, and cities, states, and the nation must do better by our unhoused population, a large percentage of which have mental health and substance misuse problems. The Peoples’ Union is in favor of policy solutions that create more transitional housing and supportive housing for those who are unhoused.
Housing First is a model that provides affordable housing to those with substance misuse and/or mental health challenges without the requirement that they currently be in treatment. This model follows the idea that simply being sheltered creates stability for people who can then focus on getting treatment and a job. This model has shown to save taxpayers money compared to traditional shelter programs, in the long run, while also promising a brighter future for residents. The graph to the right illustrates the total cost of a Canadian Housing First unit, per individual, and the savings (underneath the black line) that ensue over time.
To address homelessness and the affordable housing crisis we are in favor of further incentivizing the development of accessory dwelling units (ADUs) and tiny house communities. Some states have provided homeowners with incentives to develop ADUs on their property which they can then rent out or use to house family members such as young adults, elderly parents, or any other relative in need of affordable housing. ADUs can be built quickly and are relatively inexpensive to develop and maintain. These pop-up dwellings, such as the innovative boxable homes, provide secure and well-equipped living spaces, complete with a small kitchen, washer and dryer, and clean-living areas. Homeowners can even convert existing garages or storage buildings (e.g. large tool sheds) into ADUs.
Cities and towns have also experimented with tiny home communities which are provided at no charge or are rented out to unhoused people (Bruce, 2022). Typically, the tiny homes are short-term, temporary dwellings that provide stability to the unhoused as they move toward recovery with the support of social services and job training and job finding programs. These communities often have a communal restrooms, showers, and laundries. Residents may even help build the tiny homes and self-govern the community. Residents have an increased sense of wellness and safety once they leave tent cities or traditional shelters and move into tiny home villages. They often also receive social services and treatment which help them transition to long-term independence and stability.