Finland was included in 2017 as the first country in the world where some citizens get a basic income is an unconditional payment from the state, which do not depend on their income or social status. The first participants in the experiment were selected by lot 2000 unemployed.
Those who will receive a basic income within two years will not receive unemployment benefits. 560 euros is the average size of the unemployment benefit after tax. Such sum will transfer the pension Agency Kela the participants of the experiment. By the standards of Finland with an average salary of more than 3000 euros is a modest amount.
Thus, at the beginning of the experiment, the level of income of the unemployed Finns will remain almost unchanged. Its goal is to determine induces whether additional income of 560 euros to take a job, including low paid. The difference compared with the unemployment benefits that found work retains a basic income. And in the case of unemployment benefits it needs to consider that, get a job, lose it. This leads to the fact that the unemployed do not wish to accept offers of temporary employment, losing the right to benefits. And the state should not spend resources to find out whether the unemployed engaged in active search of work, as required by law.
The payment of basic income is terminated if the member will receive benefits for the care of children at home, moving abroad or to serve in the army.
Critics of the initiatives say that if it will be distributed to the entire population of Finland, it will be worth a lot of money. In addition, a significant portion of the money from the Treasury will fall into the pocket of the people who can support themselves. However, from the point of view of state Finance for those who earns and pays taxes, the amount of unconditional income is a tax deduction, not a gift.
The concept of the unconditional (base) of income comes from the fact that all adult citizens receive the same basic amount instead of social benefits, regardless of employment and economic situation. Partial introduction of this model implies that in addition to, if necessary, may be paid social security benefits. Among modern economists advocate a guaranteed income as a replacement of social benefits is Milton Friedman, the Creator of the theory of market capitalism.