That Irish basic income for artists did not work, no

The Guardian tells us that giving free money to artists is very lovely indeed:

For three years, we were paid €325 a week with no strings attached, other than filling out a survey. We could continue earning and applying for artist grants. I am a freelance writer who, like most artists, has always had to work outside my creative focus to afford to live, constantly worrying I will never be able to afford a home myself or to start a family. As such, the basic income was life-changing.

And so:

The basic income gave me more freedom to experiment in my work, to write for independent publications and engage with community initiatives. I helped to create events that brought together artists across forms and raised money for a local rape crisis centre.

The collective successes of the pilot resulted in the Irish government’s decision to launch a permanent basic income for the arts scheme, opening this May. It turned out that artists on the pilot made back millions. The state’s own research found that for every euro the government spent on supporting artists, society received €1.39 in return, and the scheme was estimated to have generated more than €100m in social and economic benefits.

Now we all know that artists - and writers - tend not to be all that numerate so it’s worth testing those numbers.

The original cost of the pilot was €105 million, but after accounting for tax revenues and reduced social welfare payments, the net fiscal cost dropped to just under €72 million.

A key component of the total benefits came from psychological wellbeing, which contributed almost €80 million. In addition, the report estimates that audience engagement with the arts generated €16.9 million in social value, based on public willingness-to-pay for cultural experiences.

Ah. So the actual value of the output was €16.9 million from a nett cost of €72 million. That’s not a profit, that’s a loss. The report itself:

Gains in psychological wellbeing: Improvements in life satisfaction among artists and creative arts workers receiving BIA support translate into measurable social benefits.

That’s the €80 million. People who received free money enjoyed receiving free money. Astonishing, eh?

As it happens some of us around here know about scribbling for a living. Yes, free money would increase psychological well being. Make your cheques out to “cash” and send ‘em in. We’d also wholly support the idea that you could, even should, pay for gaining what you enjoy getting in terms of writing or any other artistic output. But this is also known as the artist “having a job”. Producing the output that people are willing to pay for, or “work outside my creative focus to afford to live”.

That is, people willingly paying for the output is just fine. But that folk feel better about getting free money is not a justification for taxing the people who do not, by their own actions, give tuppence for that output.

This Irish basic income scheme for artists did not work, no. Don’t let anyone tell you it did either, for the entire claim rests upon the fact that people like free money. Which is true, obviously, but isn’t a justification for taxing everyone else.

Tim Worstall

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How else did anyone think this was going to work out?