How do those who do not work get income in a Participatory Economy?

This article is part of a series of short pieces on the theme of what it would be like to live in a Participatory Economy. 

Less than half of Americans have fulltime jobs. On what basis will those not working as members of worker councils have income? We assume that rules for who qualifies for living allowances, stipends, or benefits, and how large allowances and benefits will be decided through a democratic political process. In particular:

• There will be allowances for those who worked in the past but have now reached retirement age. What the retirement age is, and whether the size of retirement benefits is the same for all or depends to some extent on years worked and/or effort ratings over one’s work life, is a question to be decided democratically by the political system.

• There will be allowances for the disabled. Rules for eligibility and size of disability payments will be decided democratically.

• A participatory economy takes responsibility for the economic welfare of all children. This does not mean that parent/guardians do not also have responsibilities, or that parent/guardians do not have certain decision-making rights vis a vis children. But it does mean that the economic wellbeing of children — infant care, childcare, healthcare, and educational opportunities open to children and young adults — will not be dictated by who a child’s parents/guardians happen to be. The size of allowances for children, whether this varies by age, and whether there are living stipends for young adults older than eighteen who continue their formal education beyond the minimum number of years mandated must all be decided democratically.

• There may also be living allowances for those who society believes should be working, but who nevertheless decide not to work. Whether a participatory economy guarantees a “universal basic income” so that nobody’s total income falls below a certain level, as well as the size of any UBI will also be decided democratically.

• An individual’s effort ratings and/or allowances are expected to be sufficient to cover the social costs of producing his or her private consumption, as well as his or her share of the social cost of producing all public goods available to him or her. However, unless members of a consumer council or federation decide otherwise, individuals pay no “user fees” for public goods, and all educational and healthcare services provided by the education and healthcare systems are free of charge.

As explained, the size of all these stipends and allowances will have to be decided by a democratic political process. In all likelihood the level of economic development of a country launching a participatory economy would affect the size its citizens choose for stipends and allowances. We anticipate that citizens of more economically developed participatory economies would likely vote to choose more generous stipends and allowances, while those in less developed participatory economies might choose smaller stipends and allowances.