Hartz IV becomes citizen income. Sounds like it was two decades ago when Mars renamed its Raider candy bar Twix. But this is about more than a new name for an unchanged product.
The citizens’ allowance planned by the traffic light coalition for January 1 next year changes the previous Hartz IV practice of demanding and promoting. If the FDP cannot change anything significant about Labor Minister Hubertus Heil’s plans, the future motto will be: more money for significantly less consideration – financed by the taxpayer.
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Two positive aspects of Heil’s plan should not go unmentioned. Inflation makes it necessary not to wait until July 1 with the next adjustment of this transfer benefit for mostly long-term unemployed people, but to make it at the turn of the year. That’s right and important.
Yet another suggestion goes in the right direction. Pupils, students and trainees who receive citizen income should be able to earn more in the future without the state cutting its payments. With good reason, the FDP calls for adult benefit recipients to be given better opportunities to earn additional income. The state is currently punishing anyone who earns extra money by reducing their Hartz IV benefits. That’s not exactly an incentive to make an effort.
Irrespective of this, Heil is taking the wrong path towards a basic income with his reform ideas, at least in the light version. Here are the five most dangerous suggestions.
1. The citizen’s income protects assets: In the future, the protective assets should amount to 60,000 euros, for a family with two children 150.00 euros. That means: If you don’t work, you don’t have to touch your savings of this amount in the first two years. A great many taxpayers, who have far less on the high edge, might be surprised that they have to pay for the maintenance of many “richer” people.
2. The citizen’s income has practically no sanctions for six months: What the traffic light has already decided for a transitional period is to become a permanent facility in the future. Those who feel no inclination to seriously seek a job or further education do not have to fear any sanctions for six months. Only then could the job center cut benefits. But the SPD and the Greens are likely to insist that these cuts be rather mild, even milder than before.
3. Citizens’ allowance rewards expensive apartments: If you live in an apartment that is too large and expensive for your circumstances, you don’t have to move. In the first two years of receiving citizen income, the state will pay the rent.
4. Citizens’ allowance rewards the obvious: One should actually expect benefit recipients to continue their education or attend language courses in order to improve their chances on the job market. In the future, this will be rewarded with a monthly training allowance of 150 euros. Every employee must feel that they are being made fun of if they continue their education at their own expense alongside their job.
5. Citizens’ income encourages people to flee to further education: Up to now, the so-called placement priority has applied. Anyone who had a job offer had to accept it, even if they were overqualified for it. Now unemployed people who don’t want to take up jobs can opt for further training instead. And not just for two, but for three years. Some employees and contributors are likely to be jealous.
Conclusion: Heil’s proposals put an end to Hartz IV and pave the way for a basic income that is linked to a few conditions – as long as the FDP does not oppose it. For this “basic income light” he expects the solidarity of the financiers of the welfare state, i.e. all employees, self-employed and entrepreneurs who pay taxes and contributions.
It is a very peculiar understanding of solidarity, which boils down to the principle of performance without consideration. An expensive and dangerous experiment. And this of all times at a time when workers are being sought everywhere. We even “import” airport employees or harvest workers from abroad because too many unemployed people have settled into a system of “support plus some undeclared work”.
Anyone who does not believe this should try to find help for the house or garden who is willing to properly tax this income. Or someone who shovels snow at 6 a.m. in winter. He will have little luck in big cities. Hubertus Heil could try his luck in Berlin – and rely on the tax honesty of many beneficiaries. He might be surprised.
