Thomas Paine on Basic Income, and Why Welfare is Compatible with an Individualist Theory of Human Rights

Thomas Paine, advocate of liberty par excellence, is an intellectual hero of all believers in democratic and accountable government. He’s also, especially, a hero of modern American conservatives and those of the libertarian persuasion.

But here’s a lesser known fact: he also argues in favor of what today we commonly call welfare.

Paine is, most famously, the author of Common Sense, The American Crisis, The Rights of Man, and The Age of Reason. These pamphlets are, in turn, an argument in favor of the American colonies’ cause for independence, a series of pamphlets of encouragement and calls for support for the struggling revolution, a rebuttal to Edmund Burke’s harsh critique of the French Revolution (and founding work of modern conservatism), and deist critique of Christianity and organized religion in general.

In Common Sense, Paine calls government a ‘necessary evil’, which we need only because of our flawed human nature, and he considers it legitimate only if it functions to benefit the people as a whole. But to do so, it must remain fully accountable and therefore not too large, or else it would do as governments had always done throughout the history of Europe: it would oppress, enslave, overly tax, and otherwise use its people for its own ends, making them suffer for the inevitable territorial, political, and ideological wars that all monarchs, power-hungry aristocrats, and high-ranking clergy embroiled themselves and their nations in. He also writes that commerce was one of the great pacifiers of the world by rendering people ‘useful to each other’, and as such, should not be interfered with. Thus far, his thinking is closely aligned with the political principles of libertarianism and modern American conservatism.

Yet libertarians and conservatives misunderstand Paine when they stop there: Paine very definitively argues that government should play some very important roles in public life beyond defense of life and private property and the enforcement of contracts. After all, it’s not only governments that oppress and neglect its citizens in all kinds of ways: it’s also other people.

One of these roles that government should take on is economic support of all citizens when they are the most vulnerable, especially the young, the elderly, and the infirm. As Paine observes, neither governments nor individuals sufficiently protect the rights of working people nor of the people to support themselves when they can’t yet work or can no longer work. He himself suffers at the hands of the government when in their employ as a tax officer: they routinely underpay and overwork him and his fellow tax officers, fire him for insufficient cause, and punish him for petitioning the government to improve their treatment of public employees.

Paine thinks government can do better, and go beyond just paying fair wages to its own representatives. He argues in favor of publicly funded welfare for all citizens, especially at the beginning and at end of life, and he outlines a concrete plan for its implementation. As he sees it, taxation and redistribution of wealth, within certain bounds, are just as essential for liberty as are the franchise, education, free trade, a constitution, and a bill of rights. For every person to have the chance at sustaining their life in a way compatible with their rights, the young should, at the very least, receive a free and full education and a sum of money with which to start out on their chosen profession, and a stipend to sustain them in health, comfort, and dignity when they can no longer work.

How is this possible? How can Paine be in favor of accountable government and individual rights while supporting a welfare system, often portrayed today as an enemy of both? His argument is an innovative one, and shows how a system of welfare is, in fact, not only consistent with an individualist theory of liberty and human rights, but is a necessary consequence of it.

Like the writers of the Declaration of Independence, the Bill of Rights, and the United States Constitution, Paine is influenced by John Locke, author of Two Treatises on Government and therefore, indirectly, of American political theory. Paine bases his argument on a Lockean theory of rights: all human beings are born into the world with identical natural rights, including that to life and liberty. Everyone is also born with equal rights of access to the land and to its resources, since the latter two are necessary to the former, not only for sustaining life but for making it a free and happy one. The right of individuals to own property, therefore, is not a pure natural right like the others, since it allows particular people access to particular land and resources while denying it to others. Purely natural rights, by contrast, are equal in kind and in degree from individual to individual. Yet giving people the right to claim property as their own is valuable to everyone, since it provides incentives for individuals to create wealth through labor, improving what nature left on its own cannot provide: agriculture, technology, housing, art, and so on, and this wealth is shared by all through trade. Unlike the right to life and liberty, Locke’s labor theory of property rights is contingent, valid only if its original acquisition is ‘mixed’ with the owner’s labor. and only if enough is left so that others have not only enough, but just as good. (When the United States government drove the Native Americans of their ancestral land, they routinely and conveniently forgot the second part of Locke’s property rights theory as they grabbed the most resource-rich and most conveniently located land for themselves, driving the tribes into ever smaller and ever poorer places.) Even if it sometimes interferes with the ability of some to enjoy their purely natural rights, such as when certain people grab all the wealth for themselves while leaving others to suffer in poverty and even starve, Locke thinks that the right to own property benefits society on the whole to such a degree that it’s justified.

Paine, however, is not satisfied. He observes that property rights routinely benefit the few to a great degree and most relatively little. He looks not only at the world around him but at the whole of European history, seeing a world of immense wealth mostly enjoyed by a small number of people while most others earn just enough to sustain themselves, and the problem tends to grow worse over time. Paine tends to blame this state of affairs largely on a spoiled, despotic monarchy, aristocracy, and clergy, who use the law, assertions of ‘duty’, and enticements of salvation to wrangle most of the wealth out of the hands of people who actually create it. This leaves many of the young without the resources with which they could start creating wealth of their own for themselves and their families, and the impoverishment of the old who, after a lifetime of contribution through work, are left without resources when they can work no longer, having earned too little in their lives to save for their old age. So how can this be squared with Locke’s view that property rights should generally lead to the benefit of all, and that they are contingent on there generally being enough for everyone else to have what’s ‘just as good’?

He addresses this problem most thoroughly in his lesser known pamphlet Agrarian Justice, written in 1795 and ’96 after he’s observed the success of the American revolution (except for enslaved Americans, of course) and the turmoil of the French one. The French Revolution, after all, was mostly driven by popular anger and despair over the widespread privation and suffering of the French people, condemned to a life of hard work, few prospects for social mobility, and a strict hierarchical class system in which most of the nation’s wealth was gobbled up by a very few.

Paine doesn’t just base his argument on sympathy for the poor, the hapless young, and the elderly, though his work is clearly driven by that emotion, occasioned partly by his hard-working parents’ and his own struggles to get by. Instead, his argument centers on justice; specifically, the principle of just recompense. Since every person is born into society denied of their birthright, which is the right of equal access to all land on earth and its resources, everyone is responsible for paying damages for that loss. What we now call welfare is really reparations, due to everyone, by all members of a society that enforces landed property rights.

But wait a minute, one might object: isn’t the very fact that society as a whole benefits from property rights recompense enough? Even if Paine is right, wouldn’t justice only demand we make sure that everyone has the same liberties, the same protection under the law, and the same access to basic public goods such as infrastructure and education? That way, outcomes in wealth will generally apportion themselves fairly according to the hard work and ingenuity of individuals. This idea, commonly called equality of opportunity, is especially popular with those who fall into the modern conservative and libertarian portions of the political spectrum. Anything else looks like an injustice in this view. After all, is it really just to take away wealth from some, especially those who earned it through their own labor, and give it to those who have not earned it?

Remember that Paine offers the facts of history to show that fair wealth distribution just never seems to happen in societies that privatize land rights: the average person who works the hardest and does the most to benefit society very often does not accumulate even a fraction of the wealth as the relatively idle monarch, aristocrat, or member of the clergy. Well, then, how about today’s democratic market societies, where there is no monarch, aristocracy, or clergy empowered by the law to plunder most of the wealth from the working people for their personal use? We have only to pay attention to the news a short while to be aware that extreme inequality and unfairness of wealth distribution is as bad or nearly as bad as it’s ever been. The people doing the hardest and arguably most important jobs, such as teaching our children, manufacturing goods, cleaning up our cities, or harvesting the crops that sustain our lives earn anywhere from a pittance to a decent, but not stellar wage. Yet the CEO, the career politician, the idle children and grandchildren of millionaires, the trader and inventor of exotic financial products, and the tech whiz who invents the newest fad internet game often pile up money almost faster than they can stuff it into tax shelters.

Many like to say that unskilled, low-paid jobs are a stepping-stone to something else, but this is belied by the facts in the United States and around the world. While some do work their way up to more highly skilled and highly paid jobs, there are many, many more who never do. The fact that our economy depends on there being a certain number of those low-wage jobs in existence guarantees they will keep existing, at least until technology renders them obsolete. And when and if that happens, what will all those unemployed people do then? Even if every single one received an education and job training sufficient for employment as a skilled worker, there will only be a certain proportion of jobs that will be decently paid, leaving the rest in the same predicament. And there very well may be a lot less jobs in existence than there are people in this technological age. What then?

The reason why the whole equality of opportunity idea never works out may be that it’s a mythical concept, incompatible with the laws of nature, or if it were at least theoretically possible, indemonstrable.

In the real world, competition among workers for jobs necessarily leaves a huge number of people out when it comes to the ability to earn decent or even any money whether or not they do work hard, whether or not they’re willing but don’t have the opportunity, or whether or not they can at all. There are countless reasons for this due to the variety inherent in human nature and in the human experience. Some never had access to a good education, or they lack the network of patrons and mentors that the offspring of successful people rely on to get their own start in life. Others are simply not as intelligent, or tall, or graceful, or otherwise good-looking enough according to the whimsical and capricious standards of society, or of the ‘right’ race, ethnicity, religion, or don’t have the ‘right’ accent, and so on. There are jobs that disappear from the market due to advances in technology, with suddenly unemployed middle-aged or older people with now useless job skills in a society that heavily favors youth. There are people who are born with medical problems that make it difficult or nearly impossible to get well-paying jobs in a competitive market: skin disorders, genetically-imposed obesity, missing limbs, compromised immune systems, cancers, heart conditions…. the list is very long. And there are countless numbers of people for whom the ‘rat race’ is painful or self-destructive, as they have personalities that are shy, contemplative, independent, gentle, non-competitive, ‘weird’, and otherwise totally unsuited to that whole competition thing, and therefore terrible at it. The list goes on and on.

And the reason why equality of opportunity is indemonstrable, at least as something that can be implemented through public policy, can be recognized when we compare it to the gold standard of demonstrating the truth or usefulness of a theory: the scientific experiment. Consider a group of scientists who say, we are sure this theory is true because of this, that, and the other thing. They have an assortment of facts, they have arguments to show why, given the facts, certain things should result, so they make a prediction. Then they run the experiment and… what do you know, the results of the experiment fail to support the hypothesis. They they say, oh yes, we see the flaws with the experiment and/or with the participants, they compose new arguments, they formulate a new hypothesis, they run a new experiment and… oops, it failed again! And again, and again. Now, consider every democratic market economy ever in existence and see if any of them actually achieved actual equality of outcome. These actual economies are analogous to the scientific experiments, and the equality of opportunity-based sets of policies are analogous to the hypotheses being tested. Even if, hypothetically, some system based on the ideal of equality of opportunity would actually achieve equality of outcome in a world of identical beings who are not born with or given extra advantages by others, we’ll never know. Asking us to ascribe to indemonstrable political strategies based on equality of opportunity is like asking us to believe the truth of hypotheses that are never proven by scientific experiment. That’s why I, for one, don’t buy it, and am more interested in focusing on equality of outcome, which Paine’s basic income idea seeks to resolve in a practical and just way.

Returning to the original point regarding the fairness of redistributing income from the wealthy to the un- or under-employed: Paine foresees this objection by calling for a universal basic income. In other words, he thinks that it should not be granted on the basis of need. That’s because, for one thing, he bases his whole argument on the equality of natural rights. All human beings alike are deprived of their natural right of free and full access to all of the land and its resource in societies that enforce landed property rights. Even those who own land are still deprived of the right of access to other land, so they are still owed the same damages. If they are wealthy enough to throw the money back into the public fund since they don’t need it, that’s up to them, and very much to their credit, but it’s still owed to them, same as anyone else.

For another thing, and perhaps most importantly for its being popularly acceptable enough for implementation, Paine recognizes that basic human psychology instinctively abhors unfairness. The whole idea of giving welfare to some and not others, even based on need, might seem charitable but still feels unfair, especially when the funds are taken away from people who earned it through their own labor and given to the un- or under-employed. Human beings simply do not need any more sources of strife and division than they already contend with: politics, ideology, and religion do enough mischief on that account already. Therefore, Paine says, basic income should be equally distributed regardless of need so that no-one is given, by society at least, an excuse to resent or look down on anyone else.

*This essay has also been published at the Thomas Paine National Historical Association website (under a different title)

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Sources and Inspiration:

“Labor Theory of Property.” Wikipedia, The Free Encyclopedia, 22 Sep. 2015. Web. 30 Sep. 2015.
https://en.wikipedia.org/w/index.php?title=Labor_theory_of_property&oldid=682304595

Locke, John. Two Treatises of Government, 1689
http://socserv2.socsci.mcmaster.ca/econ/ugcm/3ll3/locke/government.pdf

Paine, Thomas. Agrarian Justice, 1796.
http://piketty.pse.ens.fr/files/Paine1795.pdf

Paine, Thomas. The Rights of Man, 1791.
http://www.ucc.ie/archive/hdsp/Paine_Rights_of_Man.pdf

3 thoughts on “Thomas Paine on Basic Income, and Why Welfare is Compatible with an Individualist Theory of Human Rights

  1. Pingback: To Paris, France I Go, In Search of Revolution-Era Thomas Paine, Mary Wollstonecraft, and Thomas Jefferson | Ordinary Philosophy

  2. Pingback: Happy Birthday, Thomas Paine! | Ordinary Philosophy

  3. Pingback: On the Recent Intelligence Squared U.S. Debate About Basic Income | Ordinary Philosophy

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