Income inequality and the power of money. 10 June 2013

Income inequality and the power of money 10 June 2013

Program Welcome and introduction Christian Leysen, Ahlers and Caroline Godts, Business & Society Income inequality - a European and Belgian perspective on income inequality, poverty and the role of business. Bea Cantillon, Full professor, University of Antwerp Common interest before financial interest. Regulating remuneration and transparency in the financial sector. Philippe Lamberts, Member of the European Parliament and co-president of the European Green Party Power of money - understanding the logic of our money system and its contribution to inequality in society. Igor Byttebier, consultant, New shoes today Dialogue and discussion

Bea Cantillon

Bea Cantillon Centrum voor Sociaal Beleid Herman Deleeck, Universiteit Antwerpen

We leven langer We zijn rijker We gaan langer naar school We werken met z’n allen meer We geven meer uit aan sociale diensten en uitkeringen

De welvaartsstaat bleef overeind paste zich aan en was een sterke buffer tegen de crisis

Edoch…Alle indicatoren en studies wijzen in de richting van

20 jaar armoede standstill

Blijvend hoge sociale uitgaven

1886

1919 - 1939

1950 -1970

1975

2012

meer mensen aan het werk

1886

1919 - 1939

1950 -1970

1975

2012

maar, 20 jaar armoede standstill

1886

1919 - 1939

1950 -1970

1975

2012

Employment growth & poverty (2004-2008) 8 PL

7 6 SK

5

∆ Employment

Ge 4 Nl

Sl

Fi

3 Be

Ie

Dk

Sw

Gr

2

Cz

FR

1 UK

0 -1

-6

-5

-4

Source: EU-SILC & EU-Labour Force Survey

-3

-2

-1 0 ∆ At-risk-of-poverty

1

2

3

4

Nog nooit zoveel mensen aan het werk 9.000.000

5.000

4.500

8.000.000

4.000 7.000.000

3.500 6.000.000 3.000

Jaartotaal gewerkte uren (in duizenden) WestEuropa België thwbel

5.000.000 Tewerkstelling (in duizenden personen) 2.500 4.000.000

Aantal gewerkte uren per jaar 2.000

3.000.000 1.500

2.000.000 1.000

1.000.000

500

-

1950

1955

1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

Bron: Total Economy Database, The Conference Board en Groningen Growth and Development Centre, januari 2008, http://www.conference-board.org/economics/.

Een groeiende kloof tussen werkrijke productieven en werkarme niet- productieven

Armoede risico ‘08-’05 werkarm

werkrijk

Be

+ 4.7 **

+ 0.2

NL

+ 1.8

- 0.8

DK

-1.4

+0.7

Se

+13.6***

+1.8***

Grafiek 3: Evolutie van een minimale werkloosheidsuitkeringen voor gezinshoofden 1,20 1,10 1,00 0,90 0,80 0,70 0,60

0,50 0,40

koopkracht

welvaart

Bron: Cantillon, B., Marx, I., De Maesschalck, V. (2003), De bodem van de welvaartsstaat van 1970 tot nu, en daarna, Berichten / UFSIA, Antwerpen, Centrum voor Sociaal Beleid, maart.

Net income, real evolution in % Belgium

19952007

19952012

12

13

One earner couple + 2 ch. (minimum wage), 35y., one partner short term unemployed WORK INTENSITY = 0

9

10

Both partners long term unemployed + 2 ch. (minimum wage), 55y.

-6

-6

WORK INTENSITY = 1 Two earner couple + 2 ch. (minimum wage), 35y. WORK INTENSITY = 0,5

Grafiek 4: Gemiddelde gestandardiseerde gezinsuitkering voor de totale bevolking (2005-2008) 25

Evolutie 2005-2008 (met constante prijzen)

20

15

WI<0,5 0,5 =<WI<1

10

WI=1 5

0

-5

-10

-15 BE

Minder herverdelende sociale uitgaven

Grafiek 5: Verdeling naar inkomensquintielen van sociale uitkeringen en uitgaven voor onderwijs, gezondheidszorgen en kinderopvang, België, 2007 28,0% 26,0%

24,0% 22,0% 20,0% 18,0% 16,0% 14,0% Q1

Q2 Cash

Q3 In-kind

Q4 Total

Q5

Bron: Verbist, G., en M. Matsaganis (2013), ‘The Redistributive Capacity of Services in the EU’, in B. Cantillon en F. Vandenbroucke (eds.), Reconciling Work and Poverty Reduction. How successful are European Welfare States? Oxford: Oxford University Press (te verschijnen).

Waarom is het zo moeilijk om de sociale bescherming te verbeteren ? • De blijvende structurele onevenwichten op de arbeidsmarkt

• Het glazen plafond : de spanning tussen activerend beleid en armoede reductie • Migratie en legitimiteit

Migratie en legitimiteit

Verstopte paden, nieuwe en oude paradigma’s • Sociale investering

• Sociale innovatie

• Sociale herverdeling

Philippe Lamberts, MEP European Greens Setting a bonus cap in the financial sector http://www.philippelamberts.eu/

Igor Byttebier

6/11/2013

The power of money The mainstream and the alternatives

Igor Byttebier

www.newshoestoday.com

Intro new shoes today Qoin Time2care 28


6/11/2013

Why money?


Bedankt !

30


Bedankt !

31


Bedankt !

32


What is money ?  An agreement within a community to use a standardized tool as a means of exchange

 Currency

33


Why Money, on individual level

 Convenient for exchange  Convenient for measuring the value

 Convenient for saving

34


Why money, on systemic level

 Organize economy (exchange)  Organize power structures

 Decide on the rules of the system

35


Why has it become so important?  Importance of economy within society  Importance of financial system within the economy  Measuring: Time = money

 Growth as a driver  Globalization 36


Who organizes the money system?       

National governments? National banks and banks? European government or Bank? Multinationals? Local companies? Stock exchange? Citizens?

Who decides on the rules of the system? 37


A system  Intention

 Behaviour

 Rules

38


What kind of intention?  Competition + Free market  Development

 Growth  Individual success (Profit)

39


What kind of rules?  Monetary model (Interest? – debt currency)  Laws for use of the currency  Taxes  Banking rules  Safety rules  Trust …

40


Interest as a systemic choice  Debt money

 Consequence for society, a story  Rich become richer

41


What kind of behaviour?  Which behaviour is rewarded?  Money  Power

42


6/11/2013

€uro monopoly ONE big system with ONE dominant set of rules for a complex society


Main advantage: convenience

€ Main disadvantage: One size fits ALL? 44


Growing needs Social needs Health: prevention

Aging/care

Mobility

Local biofood production

Financing for SME’s Euro in danger? Education

Cost and quality of housing Energy prices

45


The old dilemma  More capitalism (market) Efficiency, innovation, change, …

 More government Solidarity, care, stability, … More responsibility on community level Emerging initiatives l 46


6/11/2013

Community currencies Different CC’s for different growing needs


Complementary currencies To help to meet the challenges of today that are not solved by the main currency With a complementary currency you want to link Unmet Needs & Underutilised Resources

48


Community currencies worldwide 6000

5000

Argentina Elsewhere Japan

4000

Other Europe

Italy

3000 Other Europe

Germany + Austria France Benelux

Germany + Austria

2000

Benelux

UK Australia

New Zealand UK

1000

USA + Canada

USA + Canada

0 84

85

86

87

88

89

90

91

92

93

94

95

96

97

98

99

2000 2001 2002 2003 2004 2005

49


50


Fureai Kippu, Japan • 280 steden, zorgmunt


52


53



Many others, worldwide

SEL

55


Dialogue and discussion

Income inequality and the power of money. 10 June 2013

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