Money for Nothing: The Finland Experiment

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0:00:00 > 0:00:03completely encircled the town.

0:00:03 > 0:00:07Now on BBC News - in January 2017 Finland began a bold

0:00:07 > 0:00:11social experiment: the government started paying 2,000 unemployed

0:00:11 > 0:00:13Finns a basic income.

0:00:13 > 0:00:17It's free money - it comes with no strings attached.

0:00:17 > 0:00:20In this special programme, we follow the stories of four Finns

0:00:20 > 0:00:24to see if the scheme has helped them get back into work.

0:00:30 > 0:00:37In January 2017, Finland began a bold social experiments. The

0:00:37 > 0:00:45government started paying 2000 unemployed Finns Basic income. They

0:00:45 > 0:00:50each get a guaranteed 560 euros a month for two years. It is free

0:00:50 > 0:00:56money. It comes with no strings attached.You could say that basing

0:00:56 > 0:00:59income is money for free, because you don't have to feel any

0:00:59 > 0:01:04conditions to get it. -- fulfil any conditions.Basic income is an idea

0:01:04 > 0:01:11that has gained some high profile champions, from market Burke to Elon

0:01:11 > 0:01:19musk to Bernie Sanders. This experiment is being closely followed

0:01:19 > 0:01:22I policymakers around the world. We have been following for Mac people

0:01:22 > 0:01:27who have been chosen to receive basic income.It was like winning a

0:01:27 > 0:01:34lottery.I think I am much more inspired to get a job.Has it

0:01:34 > 0:01:42changed their lives? Could change society?I am feeling more and more

0:01:42 > 0:01:46free and independent.I felt more comfortable to maybe open up my

0:01:46 > 0:01:49business again.

0:01:59 > 0:02:08My name is Tanya. I am 30 years old, I live in Oulu in the north of

0:02:08 > 0:02:14Finland, and I only worked for four or five months in a factory. I know

0:02:14 > 0:02:17that Oulu has some problems with unemployment, but I know there is

0:02:17 > 0:02:24also job is here.Tanya has been in full-time education for most of her

0:02:24 > 0:02:28life, and has never had a long-term job. That is not unusual for people

0:02:28 > 0:02:32in Oulu, a town 100 miles south of the Arctic Circle where she has

0:02:32 > 0:02:38spent all of her life. The unemployment rate here is 15%, twice

0:02:38 > 0:02:44the national average.I went to Oulu University, applied sciences. It is

0:02:44 > 0:02:52always so hard to get the first real job. You have great papers, but then

0:02:52 > 0:02:56they look, you have no experience. Now that I graduated from the

0:02:56 > 0:03:06business School, they are offering me jobs like... Cafeteria worker? I

0:03:06 > 0:03:12am a bit worried that I can't any more pay my bills, I don't remember

0:03:12 > 0:03:18the last time that I went to the store and bought food. I get food

0:03:18 > 0:03:27from my mum, so embarrassing. I want to work, and I want to go to the

0:03:27 > 0:03:33store. And by my own food, and by whatever I want, I want that cheese,

0:03:33 > 0:03:41and I want to be able to buy the good cheese, you know?Even if Tanya

0:03:41 > 0:03:46gets a job, she will still get the full basic income every month. But

0:03:46 > 0:03:51she is not convinced the experiment will make any difference to her.I

0:03:51 > 0:03:57opened the letter and said" you are selected to get the basic income." I

0:03:57 > 0:04:02was like yeah, yeah! Then I realised, I read the paper down, and

0:04:02 > 0:04:09they said that if you are not working, your benefits will be the

0:04:09 > 0:04:13same. I was like, oh. The benefit from the basic income comes only

0:04:13 > 0:04:24when you get a job. You get the job, like, 1500 euros, and on top of that

0:04:24 > 0:04:32you get the basic income.But the government wants to see whether the

0:04:32 > 0:04:36way people receive the money will change their behaviour.There is no

0:04:36 > 0:04:40means testing, no requirements to apply for jobs. So the government

0:04:40 > 0:04:46would like to find out what is the effect of basic income on the

0:04:46 > 0:04:53employment rate of this particular group.Tanya is not convinced it

0:04:53 > 0:04:58will help her find a job, and she thinks it is unrealistic that the

0:04:58 > 0:05:00government could roll out the scheme nationally.It's just not possible

0:05:00 > 0:05:07to give everyone in Finland, 5 million people, 560 euros a month. I

0:05:07 > 0:05:13don't see it happening.The Finnish government isn't going to assess the

0:05:13 > 0:05:18pilot until the two year experiment is finished. So far it is quietly

0:05:18 > 0:05:22optimistic about how the pilot is going, but there are concerns about

0:05:22 > 0:05:30the cost.I think we have some data to prove that this is if not a

0:05:30 > 0:05:35glorious success story, it has very positive aspects. Now we are making

0:05:35 > 0:05:41this experiment, it is very generous, and it would be too

0:05:41 > 0:05:47expensive to afford it for all citizens, but I am happy that we

0:05:47 > 0:06:00have taken the first step.Five hours south from Oulu is Juha, who

0:06:00 > 0:06:08is hoping the basic income will help him rediscover his entrepreneurial

0:06:08 > 0:06:14spirit.My name is Juha, I am 39 years old, Father of six kids. I was

0:06:14 > 0:06:20living with no -- making window frames, that was my business to

0:06:20 > 0:06:25seven years. All of this five, six years, I have been unemployed, I

0:06:25 > 0:06:31have been trying to start a new company, new business. I tried to

0:06:31 > 0:06:36start to shoot and edit commercial vehicle -- commercial videos for

0:06:36 > 0:06:45small companies for YouTube. Also I want to do artwork at creative work.

0:06:45 > 0:06:50Juha is optimistic about the way basic income works will make it

0:06:50 > 0:06:55easier to him to get back into employment.With the basic income,

0:06:55 > 0:07:00the biggest change is the bureaucracy. Like before, I needed

0:07:00 > 0:07:04to fill out different kind of forms, I need to meet employment office

0:07:04 > 0:07:12people, I was spending quite a lot of my time on stuff that has no

0:07:12 > 0:07:17meaning. With basic income, I can focus on the more important things.

0:07:17 > 0:07:25I don't need to spend my time on something that has no meaning. And I

0:07:25 > 0:07:29really believe also that this would be super good for all of the people.

0:07:29 > 0:07:38So I got my humanity back. I can start to do things what I can do,

0:07:38 > 0:07:46and what I want to do. And I can use my skills.Five months after the

0:07:46 > 0:07:51start of the experiment, Juha is still unemployed. But he is full of

0:07:51 > 0:07:58enthusiasm. He is about to start his new business.We don't know yet

0:07:58 > 0:08:01whether there are many persons who have started their own companies,

0:08:01 > 0:08:04but I have heard from newspapers that there are some, and they have

0:08:04 > 0:08:09been very positive about this, this possibility, they have two years to

0:08:09 > 0:08:16say, peaceful time, to start their own companies.The unions in Finland

0:08:16 > 0:08:22think basic income will have the opposite effect.Basic income would

0:08:22 > 0:08:26be a retirement scheme that you can take up whenever you want. You can

0:08:26 > 0:08:30simply choose to stop working and live off your savings and basic

0:08:30 > 0:08:34income, and that means lower level of employment and less taxes. So

0:08:34 > 0:08:44even less money to fund the social benefits and services that we want.

0:08:44 > 0:08:48Some of the people on the basic income trial were established in

0:08:48 > 0:08:56professional career so many years before losing their jobs.My name is

0:08:56 > 0:09:02Thomas, I am a freelance journalist and author. I have been without work

0:09:02 > 0:09:10since 2013. I was a foreign news editor, to the daily newspaper in

0:09:10 > 0:09:16Finland. But then they decided to put down all the section of the

0:09:16 > 0:09:24foreign affairs, so basically I lost my job. It is not easy to find a job

0:09:24 > 0:09:31as a journalist in the capital of Finland.Sofa Thomas, being chosen

0:09:31 > 0:09:36for a basic income pilot was a dream come true.It helps me as a

0:09:36 > 0:09:41freelancer, and it is social security in a way. Without the

0:09:41 > 0:09:46Sigma. -- stigma. To me it is not embarrassing any more to get

0:09:46 > 0:09:50benefits. Work has changed and social politics has to follow that

0:09:50 > 0:09:58trend now. I think that this basic income will encourage people to get

0:09:58 > 0:10:06back to the society and not be at home.And he thinks Finland can

0:10:06 > 0:10:11afford a system like this one.The northern countries are more prepared

0:10:11 > 0:10:17for this kind of basic income system, because the same money is

0:10:17 > 0:10:25there already. We pay taxes. Now we spend it in a smart way.The budget

0:10:25 > 0:10:32for the basic income experiment is 20 million euros. This is an

0:10:32 > 0:10:37experiment model.The problem is that it will be paid by the tax

0:10:37 > 0:10:41money of hard-working people, and is hard to justify it to employees,

0:10:41 > 0:10:46that you have two they are higher level of tax to provide benefits for

0:10:46 > 0:10:52those who simply choose not to work. It may be expensive, but the truth

0:10:52 > 0:10:56is, the policymakers have to start thinking radically about new ways to

0:10:56 > 0:11:00make the labour market worked in the future. Studies indicate that in the

0:11:00 > 0:11:06next 20 years, between 30 and 47% of jobs in developed economies could be

0:11:06 > 0:11:09at risk of automation. That means robots doing jobs that humans

0:11:09 > 0:11:17currently do. All this is preying on the mind of our fourth basic income

0:11:17 > 0:11:23recipients.I am 35 years old, I live in Helsinki, the capital of

0:11:23 > 0:11:29Finland. I work for a Danish company, and through the company I

0:11:29 > 0:11:35worked all around the world, and after about six years of travelling

0:11:35 > 0:11:41around I moved back to Finland, and the employer told me that I had to

0:11:41 > 0:11:47move again. Which I didn't want to do, and I had to give up the job, so

0:11:47 > 0:11:53I became unemployed.Sini now works for herself and very flexibly.So

0:11:53 > 0:11:58now I am still working, I have one customer, I am working for a

0:11:58 > 0:12:03foundation. When we come at work days, three days, so it is a bit

0:12:03 > 0:12:10insecure. So I have worked, but my income level changes all the time.

0:12:10 > 0:12:14Sini is convinced that more and more people like her will be pursuing

0:12:14 > 0:12:19flexible careers like this in the future.Very common comment that I

0:12:19 > 0:12:25get from people, you are educated, open to do different kind of work,

0:12:25 > 0:12:31how can you be unemployed? And I think, is not discussed openly, but

0:12:31 > 0:12:35it is a situation for educated people, you are unemployed

0:12:35 > 0:12:39sometimes. And if the scenario of robotics and all these other kind of

0:12:39 > 0:12:45work concept changed, more and more educated and skilled people will be

0:12:45 > 0:12:49unemployed.

0:13:01 > 0:13:06It's now ten months into the pilot, and things have changed radically to

0:13:06 > 0:13:10Tanya. When we first met her, she thought ASIC income would make no

0:13:10 > 0:13:14difference to her prospects of finding a job.I took this job

0:13:14 > 0:13:26offer, it is telemarketing. I actually enjoy my job a lot. I love

0:13:26 > 0:13:36my co-workers, I love the office, I love the hours. And I just love to

0:13:36 > 0:13:41be being independent, owning my own money. And standing on my own two

0:13:41 > 0:13:49feet. Now I actually can go to the store and buy food and not be so

0:13:49 > 0:13:53worried when I am going to eat the next day. Basic income has changed

0:13:53 > 0:14:00my life. Without it, I couldn't have taken a job with a little lower

0:14:00 > 0:14:07salary. I really have dreamed a long time to work in an advertising

0:14:07 > 0:14:16agency, and there was something with marketing. I am going to learn to be

0:14:16 > 0:14:25the best telemarketer person in Finland, and find an advertising

0:14:25 > 0:14:31agency that would give me a job, my dream job.So has she changed her

0:14:31 > 0:14:36mind about the basic income experiment?At first I was quite

0:14:36 > 0:14:41sceptical about basic income. It is obvious that we can't afford to pay

0:14:41 > 0:14:45it to every citizen. But then I realised, it is actually a genius

0:14:45 > 0:14:53idea. If you just pay it for those people who have been at home for so

0:14:53 > 0:15:00long, and been unemployed for so long, that is a huge drive for them,

0:15:00 > 0:15:08to get a job. We are human beings, we need human contact, we need to be

0:15:08 > 0:15:12proud of something, and that's a huge problem when you are

0:15:12 > 0:15:16unemployed. I think I have turned my life around.

0:15:23 > 0:15:28When we met him five months ago, he was hoping he would be able to start

0:15:28 > 0:15:32a small business after going bankrupt.Ten months after starting

0:15:32 > 0:15:35in the experiment, I still feel super happy and free and

0:15:35 > 0:15:44independent.He has set up one business already, but he wants to

0:15:44 > 0:15:51expand.I got my own business, and have been running that for the last

0:15:51 > 0:16:01few months. The easiest money is making those drums and selling. It

0:16:01 > 0:16:08is hand craft, it is not super good for business, it takes time to make,

0:16:08 > 0:16:19and I love it.Good to see you.Them one thing I am planning with a

0:16:19 > 0:16:29couple of my friends, to start like a B&B.We are going to be calling

0:16:29 > 0:16:33people that know how to draw and paint, and doing something in

0:16:33 > 0:16:36painting, and putting it here so that next week you can start

0:16:36 > 0:16:44filming.We have some studios, so people would stay here and spend

0:16:44 > 0:16:51here one week, tee weeks, or a year. Do you want me to help you with the

0:16:51 > 0:16:59drums?And Juha and his friend have other plans as well. Today, they

0:16:59 > 0:17:07have come to meet the mayor, to talk about transforming an old art school

0:17:07 > 0:17:12and turning it into workshops for artists. Juha is optimistic that he

0:17:12 > 0:17:16will still be on a firm financial footing after the Basic income

0:17:16 > 0:17:23experiment ends.I think for me it is enough. I believe that after one

0:17:23 > 0:17:30year my business is running, and I don't need other help. I very much

0:17:30 > 0:17:36believe that basic income would be super good for finances and the

0:17:36 > 0:17:42economy of the government. I feel that it should be good for others,

0:17:42 > 0:17:49also.

0:17:52 > 0:18:00When we first met unemployed journalist Tuomas, he was optimistic

0:18:00 > 0:18:05that the basic income trial would help them find a new job. He is now

0:18:05 > 0:18:09married to a former MP and Green party activist. What else is new?

0:18:09 > 0:18:15What has changed in my life since June? I got married, but

0:18:15 > 0:18:24financially, not so much. I am still without a job. I can say that the

0:18:24 > 0:18:30basic income has changed a lot in my life. OK, psychologically, yes, but

0:18:30 > 0:18:38financially not so much.Tuomas was craving the structure that the job

0:18:38 > 0:18:43would ring.I would be happy if I had a job, even a part-time job, for

0:18:43 > 0:18:50the routines. In that sense, you can call me lazy, because I need a

0:18:50 > 0:18:57producer, I need somebody to tell me what to do, and I enjoy doing that.

0:18:57 > 0:19:03Now, after five years... Almost five years as a freelancer, maybe I am

0:19:03 > 0:19:11not the right person to be like that. My wife can do that. She has

0:19:11 > 0:19:23always done that. Not for me, it is more secure if you have a job.As

0:19:23 > 0:19:27Tuomas attends a political event with his new wife, how does he feel

0:19:27 > 0:19:32now about job prospects?I have still over one year to go, so

0:19:32 > 0:19:41anything can happen. So I am quite optimistic. I am not worried when

0:19:41 > 0:19:48this pilot is ending, because then I have got back to the old system, and

0:19:48 > 0:19:52get those benefits and other way. Let's see, during summertime next

0:19:52 > 0:20:06year, I will have a job.And what about Sini? She wanted a career

0:20:06 > 0:20:09structure that will allow her to work for multiple employers and

0:20:09 > 0:20:15still find time for herself and her family.The insecurity of not having

0:20:15 > 0:20:22a permanent job, and actually working as self-employed, allows

0:20:22 > 0:20:26also to have more freedom on the way you spend your time. My dad has

0:20:26 > 0:20:32old-timers, and me and my sister, who lives also in Finland, we try to

0:20:32 > 0:20:39help them out a lot.Sini has found that basic income gives her more

0:20:39 > 0:20:44time with family, and also to pursue charity work.With basic income, it

0:20:44 > 0:20:53is kind of easy maybe to get this work-life balance. So basic income

0:20:53 > 0:20:58helps me to make myself available, to help my parents, or do volunteer

0:20:58 > 0:21:06work. Of course I understand not everybody is motivated to do those

0:21:06 > 0:21:10things, but I am the type of person that I want to do something that

0:21:10 > 0:21:14makes me happy, and I would want more people to have the courage to

0:21:14 > 0:21:21say, OK, maybe money is not everything. What would you like to

0:21:21 > 0:21:25study?Language.I think basic income as an idea, for everyone to

0:21:25 > 0:21:29receive it, is a very nice idea. On an individual level it has been

0:21:29 > 0:21:34very, very life changing for me. So I would see a package more or less

0:21:34 > 0:21:40in a way that if your income drops to a certain level, then you become

0:21:40 > 0:21:50part of kind of the basic income or the benefit system.Four people,

0:21:50 > 0:22:05four very different experiences of basic income. Tanya has -- Tanja has

0:22:05 > 0:22:11found a job she would never have considered before, Juha has

0:22:11 > 0:22:13rediscovered his entrepreneurial spirit, Tuomas were still

0:22:13 > 0:22:21unemployed, and Sini has found a way to pursue a portfolio career, see

0:22:21 > 0:22:26her family, and do charity work. There is a year to go before the

0:22:26 > 0:22:31trial ends. Is there a chance the government will extend the scheme to

0:22:31 > 0:22:35all of them than's unemployed? Finland is quite moderate in this

0:22:35 > 0:22:39way, we have a culture of experimentation, and where we want

0:22:39 > 0:22:43to see this kind of social innovations in practice. So whether

0:22:43 > 0:22:47this basic income is the solution to poverty or Labour market goblins,

0:22:47 > 0:22:53can still be proud that Finland has taken this sort of bold way of

0:22:53 > 0:22:58testing, and hopefully our experience can benefit other

0:22:58 > 0:23:03nations.We will have to wait and see if Finland's experiment becomes

0:23:03 > 0:23:09a model for the future.