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LIVING IN GERMANY

‘Get people off the hamster wheel’: Inside Germany’s €1,200 per month basic income experiment

More than 2.1 million people applied to be part of Germany's first long-term universal basic income project. Could it be a future model for the country? We spoke to the project manager.

'Get people off the hamster wheel': Inside Germany’s €1,200 per month basic income experiment
Universal basic income would help ease money worries. File photo: DPA

It sounds like a dream come true: imagine waking up every month to €1,200 delivered into your bank account without having to work for it.

Well, that's exactly what will happen for just over 120 people in Germany from next year. They will receive the monthly cash injection from spring 2021 for three years, as part of the Pilotprojekt Grundeinkommen (Basic Income Pilot Project) study.

The aim of the project, which is being supported by the German Institute for Economic Research (DIW Berlin) as well as scientists from the Max Planck Institute and the University of Cologne, is to gain a scientific understanding on how people's behaviour and attitudes change when they receive money regularly without conditions.

READ ALSO: Germany set to launch new universal basic income trial

So just why are researchers looking into the idea of giving citizens an unconditional monthly payment?

“We believe that the world today is facing a lot of big challenges such as climate change and populism,” project manager Janine Busch told The Local.

“We want to test if individuals become more resilient with the safety net of a basic income. Because a clear head could help find solutions and help adopt other perspectives. We ask ourselves questions like: will ego turn into eco?”

Mein Grundeinkommen (My Basic Income), a startup based in Berlin, is no stranger to research on this topic. It has been giving opportunities to people for one-year payments of €1,000 per month for six years now.

But this is the first ever long term study on basic income in Germany. “The difference to other studies is that the pilot project doesn’t only take a look at jobless people but also people who work,” said Busch. “It’s unconditional so participants don’t have to show specific behaviour to stay in the study.

“And the amount we’re giving – €1,200 a month for three years – secures not only livelihoods but also gives you the ability to take part in society.”

Project leader Janine Busch. Photo: Ben Gross

'People have become more aware in the pandemic'

The project has been bowled over by the support it's received. They were aiming for up to a million people to apply to take part by November. But that target was reached less than 72 hours after the application opened.

In fact, a massive 2.1 million people applied by the November 10th deadline. 

Now 20,000 people will be selected and extensively interviewed about their life situation.

From that group, around 1,500 people will be selected for the three-year income experiment. A total of 122 will receive the basic income and 1,391, who won't get money, will form the comparison group.

Busch believes the pandemic has fuelled interest in a different way of living.

When the economy was closed down in spring – and there's also a partial shutdown for the month of November – many people in Germany received money from the government in the form of aid with no conditions attached.

“You can see that during the past months in the corona crisis people have become more aware of the idea of universal basic income (UBI),” said Busch.” 

“The question changed from what if people don’t want to work anymore to what if people can’t work anymore. It also reached people who never thought UBI could be a game changer. The timing worked although we did not plan to start it like that.”

Busch also thinks the crisis has given people time to think about what they really want from life.

“People stopped and thought: ‘What am I actually doing?’ That’s also the idea of universal basic income – to get people off the hamster wheel or “Hamsterrad”.

“For people to stop and say: ‘Is this going right?’ They can take a break and look around themselves. 'I have to function but how can I contribute to make a better society when it comes to, for example, disposing garbage, and all those problems that we’re facing.'”

The project is being supported by around 151,008 private donors who are interested in finding out how universal basic income affects people's lives.

“It’s financed by people like you and me,” said Busch.

The study has also brought on board renowned scientists, including behavioural economists, psychologists and public welfare researchers.

Is this a model for the future?

Currently, no countries have a universal basic income scheme in place according to a report published earlier this year by the World Bank.

However, there have been several pilot projects. Only two countries – Mongolia and Iran – had a national UBI in place for a short period of time.

So could this be a good model for Germany to roll out in future?

The pilot project leaders are not making any pre-judgements – they just want to wait and see how the experiment plays out.

But politicians will likely be watching closely to see what the results are.

What are the next steps? 

If you’ve applied for the project, you’ll be notified if you’ve been selected or not. This will happen in January. 

For those selected, you’ll have to answer a baseline questionnaire which will take 25 minutes. Next there will be another selection for the final participants. 

Jürgen Schupp (l-r), Senior Research Fellow at the German Institute for Economic Research (DIW) Berlin, Susann Fiedler, Head of Community Research at the Max Planck Institute, Janine Busch, Project Manager of Pilot Project Mein Grundeinkommen, and Michael Bohmeyer, who launched Mein Grundeinkommen. Photo: DPA,

The payments will start in spring. 

This study has one condition: participants must fill out a total of seven questionnaires during the three years, each of which takes about 25 minutes to complete. If the questionnaires are not filled in, the payments will be stopped.

Researchers also aim to talk to some willing participants in more detail.

“We would like to interview a couple of people, although it’s not mandatory, to get to know more about the reasons why people act like they acted,” said Busch. 

“We are also looking into hair analysis. We will ask some people to give us part of their hair. In hair you find cortisol and cortisol tells you about the stress level of a person. We can compare what people fill out and think about their stress level and what their body tells us about their stress level.”

Who are scientists looking for to take part?

Busch said the team is open and it depends who has applied.

“At the end we have to select the specific group,” she said. “We can't take a look at the society as a whole with 122 people plus the control group. We would not see any effects if we compared four jobless people and two millionaires.

“We have to look at the same kind of people. We need a specific targeted group and that depends on the data.”

READ ALSO: Berlin startup offers a year with no money worries

Member comments

  1. Oh! What a great idea. Lets just put every citizen on the Dole. Awesome! Don’t worry about how the currency is created. The government can just print it off to oblivion.
    Don’t concern yourself with helping rebuild businesses & the economy, the government will take care of you. Just take your currency, take your vaccine & don’t step out of line.

  2. It’s permanent stimulus. The idea is to strengthen the economy, and healthcare, and families. And, It’s not every citizen. It’s not even anybody who isn’t on it now,or needs it, but doesn’t get it.i.e. they live on the street or in shelters. This would take everyone off the street, shelters wouldn’t be needed, they can be converted to abuse shelters. Children can stay with their parents,instead of enter the system.

    Open your minds, cz we’re paying a pretty high price in lost souls, and declining intelligence already.

    peace

  3. It’s permanent stimulus. The idea is to strengthen the economy, and healthcare, and families. And, It’s not every citizen. It’s not even anybody who isn’t on it now,or needs it, but doesn’t get it.i.e. they live on the street or in shelters. This would take everyone off the street, shelters wouldn’t be needed, they can be converted to abuse shelters. Children can stay with their parents,instead of enter the system.

    Open your minds, cz we’re paying a pretty high price in lost souls, and declining intelligence already.

    peace

  4. What is being lost, is peoples business & livelyhoods. This is not a matter of helping out the poor, this is about government that wants to put the people on a socialist social system with dole payments. Then you are at their mercy. Don’t be fooled by this deception. Go & create businesses & open up employment opportunities. The ‘Free-Market’ should bring the economy back to, life, not these Central Banking Keynesian economist elitists.

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LIVING IN GERMANY

Living in Germany: Battles over Bürgergeld, rolling the ‘die’ and carnival lingo

From the push to reform long-term unemployment benefits to the lingo you need to know as Carnival season kicks off, we look at the highlights of life in Germany.

Living in Germany: Battles over Bürgergeld, rolling the 'die' and carnival lingo

Deadlock looms as debates over Bürgergeld heat up 

Following a vote in the Bundestag on Thursday, the government’s planned reforms to long-term unemployment benefits are one step closer to becoming reality. Replacing the controversial Hartz IV system, Bürgergeld (or Citizens’ Allowance) is intended to be a fair bit easier on claimants.

Not only will the monthly payment be raised from €449 to €502, but jobseekers will also be given a grace period of two years before checks are carried out on the size of their apartment or savings of up to €60,000. The system will also move away from sanctions with a so-called “trust period” of six months, during which benefits won’t be docked at all – except in very extreme circumstances. 

Speaking in parliament, Labour Minister Hubertus Heil (SPD) said the spirit of the new system was “solidarity, trust and encouragement” and praised the fact that Bürgergeld would help people get back into the job market with funding for training and education. But not everyone is happy about the changes. In particular, politicians from the opposition CDU/CSU parties have responded with outrage at the move away from sanctions.

CDU leader Friedrich Merz has even branded the system a step towards “unconditional Basic Income” and argued that nobody will be incentivised to return to work. 

The CDU and CSU are now threatening to block the Bürgergeld legislation when it’s put to a vote in the Bundesrat on Monday. With the conservatives controlling most of the federal states – and thus most of the seats in the upper house – things could get interesting. Be sure to keep an eye out for our coverage in the coming weeks to see how the saga unfolds. 

Tweet of the week

When you first start learning German, picking the right article to use can truly be a roll of the “die” – so we’re entirely on board with this slightly unconventional way to decide whether you’re in a “der”, “die”, or “das” situation. (Warning: this may not improve your German.) 

Where is this?

Photo: picture alliance/dpa | Boris Roessler

Residents of Frankfurt am Main and the surrounding area will no doubt recognise this as the charming town of Kronberg, which is nestled at the foot of the Taunus mountains.

This atmospheric scene was snapped on Friday morning, when a drop in temperatures saw Kronberg and surrounding forests shrouded in autumnal fog.

After a decidedly warm start to November, the mercury is expected to drop into single digits over the weekend. 

Did you know?

November 11th marked the start of carnival season in Germany. But did you know that there’s a whole set of lingo to go along with the tradition? And it all depends on where you are. First of all, the celebration isn’t called the same thing everywhere. In the Rhineland, it’s usually called Karneval, while people in Bavaria or Saxony tend to call it Fasching. Those in Hesse and Saarland usually call it Fastnacht. 

And depending on where you are, there are different things to shout. The ‘fools call’ you’ll hear in Cologne is “Alaaf!” If you move away from Cologne, you’ll hear “Helau!” This is the traditional cry in the carnival strongholds of Düsseldorf and Mainz, as well as in some other German cities.

In the Swabian-Alemannic language region in the southwest of the country, people yell “Narri-Narro”, which means “I’m a fool, you’re a fool”. In Saarland at the French border, they shout “Alleh hopp!”, which is said to originate from the French language. 

Lastly, if someone offers you a Fastnachtskrapfe, say yes because it’s a jelly-filled carnival donut. And if you’re offered a Bützchen? It’s your call, but know that it’s a little kiss given to strangers!

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