Hot Take: Benefit Fraud Or Social Robin Hood? Maybe Malta’s Latest Outrage Can Guide Us Towards A Real Universal Basic Income
As the saga of former PL MP Silvio Grixti and “the benefit fraud racket” unfolds, some strange ideas have been voiced.
Everybody must have heard, and is justifiably indignant about, the allegations of a country-wide conspiracy to divert funds aimed at alleviating the suffering of persons living in disadvantaged situations to hundreds of people, many from a particular demographic, not for having a severe disability but for political allegiances.
The fact that methods such as forgery of the signatures of consultants and even Transport Malta (TM) officials suggest a large web of intricately woven machinations that merit severe condemnation.
However, a curious fact appears further on in The Times of Malta report. The article starts to depict Grixti in the role of a social Robin Hood.
“Several constituents and patients of Grixti, who were illegally receiving the benefits, told police they have been blighted by other severe illnesses for years. They had cancers – multiple slipped discs, and diseases of the heart, kidneys, lungs, and colon – and had authentic medical certificates to prove them. It is just that none of these illnesses made them eligible for the Severe Disability Assistance Benefit.”
“Others were injured at work, had been out of a decent-paying job for months, and were struggling to put food on their families’ tables. In justifying the fraud, certain claimants said the situation was so dire during the COVID-19 pandemic that they had to choose whether to buy either food or medicine.”
It seems to imply that the motivation behind Grixti’s actions went further than purely personal gain, disgusting and ill-advised as the methods used happened to be.
It cannot be denied that the pandemic seriously disrupted the lives of a large number of people who lost jobs and closed down small businesses. They found themselves struggling and would clutch at any straw to pull themselves out of their misery.
This is in no way condoning the actions taken, and the wheels of justice must be seen to do their work, however the underlying plea for help needs to be heard.
“The patients told police Grixti was always compassionate and eager to alleviate their suffering, and in some cases did not even charge them for the service. He simply told them there was a government benefit that he would help them apply for.”
Maybe a possible alternative would be to completely overhaul the social benefits system. The gig economy is disrupting the social lives of workers who are becoming more disposable and often getting low rates for their talents and a more precarious work environment.
The old system of indefinite work contracts seems obsolete for a majority of low-income workers. So does the “relief” system of unemployment benefits. It discourages one from getting an entry-level job if it would earn less than the benefits.
Why not apply a certain threshold of what one really needs to live and still allow for a certain amount of benefit to get a living wage? In the UK, for example, artists have their earnings supplemented by the state so that they can actually afford to be artists.
Consider it as a universal basic income which will need to be implemented at some point as more jobs become automated.
“Some people admitted to the police that the benefit is their family’s lifeline. They said when it stops and they are forced to return the money they received, they will likely fall into the poverty trap.”
According to the report, if 800 people benefited from this debacle, it would have cost the country €4.3 million for a year of this.
When you consider that we spend €3.8 million a week just to service our national debt, it seems like a small price to pay to alleviate the poverty of 800 people.
Maybe such steps can help battle corruption since poverty breeds corruption.
Odious as this particular case may be, it could also become a catalyst for kicking off the conversation about Universal Basic Income.
What are your thoughts about a Universal Basic Income to stave off extreme poverty?