The flash-crash and the dangers of automated investment

The history stock is writes every day in the annals of the market. High technological winds blowing in our time do that also in the markets, there are rapid changes that are radically transforming the ways of investing and operating. Markets pulse always gives us chances to learn from them (and ourselves), but there are certain changes that show how the stock market world nowadays, is not that he has changed with regard to the of just a few years ago, but that is a completely different world.

To some extent maybe that even our current financial markets have nothing to do with that Wall Street in the 1980s and 1990s, with yuppies stressed giving shouting orders to brokers that they were made of gold with his mere intermediary labor.

Automated investment has radically changed the mechanics of the markets

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Today there is a new way of conceiving the markets, has given us already repeatedly suggests dramatic changes that exist after our click on the page of the broker of the Bank, or better said, our no-click. In the world of the intermediation of today’s automated investment has been imposed with force, or, what comes to be the equivalent of that supposed before delivering your eighties money to a corridor leading to the portfolio of great stress, spending the day glued to the screens, and seeking information as up-to-date and reliable as possible. The big difference is that today your money is what deliveries to an entity, and that at the same time often puts it in the hands of an algorithm. It is one of the consequences that has brought the computerization of global markets.

Under a guise of operating similar, the back room of the markets has undergone dramatic changes

But how did them before, noted differences between those eighty and the investor medium seems coming not to be many. One puts its money in foreign hands, and expects a profit in return. Superior equation was something that is transferred directly to the broker, he only asked for the return of the investment. But under the more superficial appearances, the differences between those crowded noisy exchanges of stock brokers, and markets of today, semi-deserts under cold electronic screens of quotes, go far beyond mere superior equation.

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These profound changes, which have happened silently after our screens, hint at from time to time the vertigo of the potential loss of control over markets that depend on software, with all that entails, and to which also the future is always unpredictable. The big but is that, by their condition of synthetic computer program, in abnormal and irrational situations, these algorithms cannot compete with the human mind, much more creatively prepared for improvisation of the unknown, but also more likely to commit failures by falling passionately irrationality.

The most recent examples of the consequences of new markets

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As shown in a button. Surely that does not need to remind you that flash-crash suffered by Wall Street beyond 2010, which can be read in this article from The Economist. More specifically was in May 2010 when the exchanges of the United States began the day in red, in keeping with downward bias after the first bars of the market, mainly due to the concern that the Greek debt crisis. Was to them 14:42, when the market of values began to come is down with unusual speed and force, plummeting is more than 600 points in 5 minutes and coming to mark a loss of 1000 points in the day around them 14:47. The market had recovered to 15:07 and most of the 600 points of anomalous fall had returned to again join indexes. Further investigation undertaken by the all-powerful SEC concluded that they were automated investment algorithms, and their way of operating, which originated the chaos of that day.

Before the pervasiveness of automated investment, we obviously have more examples of serious anomalies, some of which have been translated also in flash-crash. Just a few days ago, we woke in Europe with a flash-crash suffered by the British pound in Asian markets. As you can read in this article from Bloomberg, last Friday, October 7, Europeans stood the bed with the news that, at dawn, in Asian markets, sterling had come to get a bulky 6.1% in just two minutes, after recovering from such and such precipitous fall. And more will come, since this type of investing has come to stay, and feel that there is no perfect algorithm, even less when it comes to improvising to a future which is present at some point.

Flash-crash of the pound seems to have seal of lines of code

In the middle of the marked downtrend which brings the pound for a few months as you can read in this article on the subject, now, at the moment, the Bank of England still maintains an open investigation on what happened that Friday’s flash-crash of the pound, and there are several open hypotheses. Some point to human error of a strong market hand, others a few statements by French President Hollande about the possibility of trading in “hard Brexit” tone, and others to the bleak general economic situation facing the United Kingdom with the negative Outlook in which it seems that the Brexit translates. The part that we are interested in this issue is that, both in the case of the flash-crash on Wall Street in 2010, as the British pound from now, whatever the trigger, synthetic algorithms did the rest, and despeñaron ravine down to the markets.

The high-frequency trading

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But the automated investment has a second interesting facet, which is inherently linked to the execution of orders of buying and selling of securities by software. The fact that we are talking about markets led by computer programs, which are able to take pre-codificadas decisions and put them on the market of infinitely more quickly than an operator, makes our synthetic stock brokers able to take advantage of the small asymmetries in the market. It is a world in which the fractions of a second are worth much money. They are small margins of temporary advantage, which together with the second characteristic of high-freqency trading, which is its multiplicity of operations throughout the day, make orders that reach the market milliseconds before others can make of gold to the investor who is behind.

For you to see where comes this synthetic madness, there is a real boom in the price of the floor real estate in the vicinity of the North American exchanges. The reason is that all brokerage houses want to locate their data centers door with door to the market, to thus put its algorithms milliseconds ahead of the competition. You can read in this link of the Wall Street Journal about how this avidity scratch milliseconds has done that you have created a new business model with the collocation: sell to financial intermediaries the possibility to put their servers even in the same data center that are hosted the exchanges servers: literally a cable wired with data processing of the stock market in question. And, obviously, this has its price, and its corresponding profitability.

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So is dropping the pound from the Brexit

Many of the brexiters thought that leaving the EU would be a good way, so how better to its economy because they engulf the “oppressive” EU regulation and contribute to its budget. In practice it is not looking it, in fact what is apparent is that investors do not believe much in the United Kingdom, and test is being seen in the price of the pound, which is fairly falling against the Euro since the Brexit.

But we have one thing in mind, the fall of the pound against the Brexit is not only the result of the referendum, but that before some investors began to take its capital of the United Kingdom in anticipation of what they could get with the referendum. And it is that many people think that the United Kingdom will not well out of the Brexit.

Investors withdraw capital

Encuentra El BrexitLet’s play find the day that came out Brexit

In March and April, there were investors that took a total of 65,000 million pounds of the United Kingdom, according to data from the Bank of England itself. In addition to expected that leave more money after the Brexit. This is the reason behind the fall of the pound, there are those who take the money out. There is an actual current that wants to get its money from the United Kingdom due to the uncertainty created (and that politicians do not help).

HSBC Investment Bank provides a parity of the pound with the Euro to 2017, with an exchange rate of around $ 1.10 per pound. If we think that the pound relatively recently was around € 1.4, is a pretty strong devaluation. It is also having enough volatility, in Asian trading hours came to have a small “flash crash” (an instant fall) in which the currency depreciated by 6% against the dollar. This type of operation is automated trading algorithms that vece Act by surprise before certain movements of the market.

As an anecdote some imports begin to resent, the supermarket chain Tesco (of which we have spoken ever) is running out of stock of Unilever products because apparently the multinational wanted an increase by 10% in their products, rejected by the Distributor.

At the same time, slowly but gradually happening a decrease in employment in the City and reallocation of resources to other cities in Europe. At the moment banks are opting to not by relocating its workers, but to reduce its workforce in London and engage in other European cities. That does not mean that London will be an important financial hub, but most likely as it has been until now.

That Yes, the British depositors if they are seeing as their savings are worth less compared to the rest of the world. This are noticing in the agencies of change of the airports, where to get them even pay less than one euro per pound. For the English, more than other Europeans, accustomed to take vacation in a sunnier neighbouring country, it is a strong impact.

That Yes, as says the BBC, the FTSE100 (equivalent to the Spanish IBEX35 index) is at a maximum of sixteen months, and is that lower prices in pound allow more British stocks of enough international companies around the world, which is not bad.

And this is not good for Spain

It can be that some are rubbing their hands with the British economy’s problems and errors that may be happening with it, but ultimately happens that our economy depends on the British.

We have many English who have decided to spend his retirement in the Mediterranean coast (as much as that is one of the main nationalities of immigrants in Spain) found with your pension in pounds to gives them a lower purchasing power in Spain. As well as tourists who come in summer to places like Majorca, Bernidorm or the Costa del Sol looking for sunny days, even to spend the weekend doing tourism in Madrid or Barcelona. We are specialized in selling catering to the British, and suddenly we are that they have less money to spend on our goods and services.

And is that that others are going to go wrong does not necessarily mean that we will go well in the economy, but that is a concept that seems to hit with our mentality, or may even with our own natureto.

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These are cuts that should the Government do to meet Europe

The functions of the PP Government sent today to Brussels a budget identical to what we have this year, because that only has been updated with the new economic forecast.

The deficit, with this new budget, will be of the 3.6 percent of GDP, against the target set by Brussels of 3.1 per cent. Luis de Guindos has admitted that the new Government should hurry is to introduce a few new accounts public.

With these new accounts a cut of half a point of GDP, should be i.e. cuts amounting to 5,500 billion euros should be performed to satisfy Brussels.

We can ask ourselves: would ever happened to this situation in Spain with respect to the demands of Brussels? What adjustments are proposed within the budget? Would structural adjustments expected Brussels?

Similar situation to Rajoy input to government budgets

Situacion Parecida Entrada Rajoy Gobierno

The situation is similar to that found Rajoy after his appointment as Chairman at the end of the year 2011. Then, Zapatero, had left the accounts so extended, but the new PP Government opted to develop a few new accounts.

These new accounts did not enter into force until the end of the first quarter 2012. Rajoy had to approve a Decree Law of accompaniment to redirect public accounts by the diversion of the deficit, so it announced several means of adjustment and tax hikes.

Now you can pass something. The possibility that Rajoy again as President ever is closest, and the priority is to give some new accounts that are adapted to the economic situation and the demands of Brussels.

Brussels requires a deficit that does not exceed the 3.1 per cent. Therefore, decisions such as the revaluation of pensions or alterations that have to approve urgently through the accompanying law.

Adjustments proposed within the budget

Ajustes Presupuestos

The idea of approving other public accounts and prevent the extension to last too.
The Government shall adopt the draft budget which it will send to Brussels tomorrow without explaining the adjustments that lie ahead to reduce the deficit or salary changes to pensioners and civil servants too.

In 2017 the reestablishment of types in the payments on account of tax is extended and the agreement of the non-availability for value of around 2,000 million euros, already approved for this year.

After hardening of the tax that will allow forward revenue of around 8,000 million euros, Brussels still wants more. The European Commission expects a rise in VAT and stricter controls to the autonomous communities and public contracts.

But the Minister of economy, black cherry, has avoided providing a single track, but has given understanding to all political parties that have to make cuts.

Would structural adjustments expected Brussels?

Ajustes Espero Bruselas

Brussels demands the Government of Spain to a structural adjustment of more than 5,000 million euros for 2017. The Government does not have any margin to approve additional measures.

More when the ceiling of expenditure nor the budget for 2017 and Spain could not be approved is entering a stage of extension of budgets in 2016.

Therefore, there can be no announcements of tax increases or cost-cutting that had speculated, or sharing of the margin with the budget diversion that gave us Brussels this year.

The Deputy Finance Minister denies that this minimum budget which refers to Brussels is this by calculating the deficit to 2017, but there are forecasts of a gap of up to 3.6 percent if no action is taken.

The Government ruled out that the European Commission can decide to again fined Spain with 5,500 million euros for not being more specific with the future adjustments, but has still margin until December to finalize.

In the Blog Salmon | Spain pound (for now) of the sanction by the deficit, you have countries that also have dodged it

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The minimum wage in Spain, you should increase?

Joaquin Nieto, director of the International Labour Organization (ILO), has brought back to the fore more rapid measures to lift out of poverty already have that work to improve the minimum wage and ensures that the Spanish economy has room to do so.

Increase the wage minimum is an of them tools that is can use by the Government in functions to try to fight against the inequality in the distribution of the income. Although it seems logical that the lowest wages increasing inequality is decreased.

We can ask: what are the forecasts of the ILO for the market Spanish? Benefits and disadvantages can have an increase in the minimum wage? There is scope to increase the minimum wage in Spain? What are the recommendations of ILO for the Spanish market?

What are the forecasts of the ILO for the market Spanish?

Mercado Espanol Oit

The Organization International of the work sees margin for an increase of wages minimum in Spain during the following three years a 10 per cent, that is of 655,20 euros monthly for this year.

It has been estimated that unemployment would decline to 19.5 percent during the 2016 and to the 19.3 percent 2017, according to the study by the ILO ‘social perspectives and employment in the world: trends 2016‘.

The study hoped a small reduction in the rate of unemployment during the 2016, although still remain many challenges to face. Expected that this trend of decrease continues during this year and the following year, reaching a 21.5 per cent this year and the following year a 21.3 per cent.

Benefits and disadvantages can have an increase in the minimum wage?

Salario Minimo

The first benefit is that workers who are paid a minimum wage will see improved its parity level. It can also be positive in terms of productivity. You can even have a favorable effect on the efficiency of the worker, to reduce the rate of rotation of workers and increase its involvement with the company.

The greater problem is find the point of balance that allow improve the level of life of them workers that it charge without foster the stop in those classes less favored, that are, which is of favour an increase of the wage minimum.

Employers always ensures that the danger of this rise is that one can produce a contagion effect on the collective bargaining of wages in the labour conventions if unions pressed with increases that companies are not willing to grant.

In addition also assures employers that another risk is the increase for inflation which would have increased to pronounced of the minimum wage. But on the opposite side are unions which ensure that you taking as reference of deflator of GDP.

There is margin to raise the wage minimum in Spain?

There is a minimum level of wage that does not have negative effects on the labour market. The optimal minimum wage should be between 40 per cent and 60 per cent of the wage environment, above this level will destroy jobs, especially low-skilled.

In Spain the wage minimum is around the 41 percent of the salary average, by what the growth per capita of the productivity, i.e., the increase of the salary minimum in Spain would be acceptable.

On the other hand, according to the National Institute of statistics (INE); only the 1.7 percent of them workers full-time full receive a wage that is equal or inferior to the salary minimum. According to data from Eurostat, Spain is the country in Europe where a lower percentage of employees paid less than 105 percent of the minimum wage.

The real productivity per hour in Spain is around 47 dollars, according to the OECD, with levels higher than other European countries such as Portugal or Greece, which have a similar minimum wage than our country. But their productivity stays below countries such as United Kingdom, Canada and Italy.

Raise the wage minimum in Spain of a form reduced not would have effects negative on the market work. Although the high rate of unemployment has little to do with the barrier, which is the minimum wage. Perhaps efforts should focus on analyzing the protection of some workers, the duality of the market, the mismatch between skills demand and supply of the market… as shown in the graph ‘ percentage of workers without a high school education or vocational training:

Porcentaje Sin Estudios

As can be seen from the graphic only Malta with 41 percent of its employees and Portugal with 46.3 percent of its employees remain well above the average of the eurozone with a 19.3 per cent.

Seattle a bad example of the rise of the minimum wage


Seattle had a destruction of employment and increase in childbirth. The data of the ‘American Enterprise Institute‘ (AEI) showed that the city lost more than 11,000 jobs worked, unemployment increased more than 5,000 people and the unemployment rate dropped one percentage point.

The behaviour of the labour market of the city from the harsh recession of United States in 2009, after the collapse of Lehman Brother, in which the United States economy grows and creates work.

Employment fell to 2.7 per cent last. Between September and November of the year last, Seattle suffered the greater destruction of employment in any quarter since there are records in the years 90.

It shows that the remuneration of the employees does not depend on the political decision, i.e., cannot be imposed by legislation, but that depends on the productivity gains that the country has.

Although surprising, countries with no minimum wage in Europe with less unemployment

Margen Subir Salario Minimo

Where there is no minimum wage and severance costs have lower unemployment and higher wages in Europe. The economies with a market labour more flexible without a wage minimum nor costs direct of dismissal, recorded them rates of unemployment more low and salaries more high in Europe.

It models more regulated and protective, with a high rigidity labor, wage minimum and, especially, high costs of dismissal, away from favors to them employees, suffer rate of stop more levados, coming even to lead the stop within Europe, and frequently, salaries more low to the economies more advanced of Europe.

I.e. freedom in labor benefits to employees, while a high degree of government intervention is usually translated in the most unfavourable conditions.

But what are the recommendations of the ILO?


The recommendations of the ILO to promote the creation of quality employment, and facilitate the growth of small and medium enterprises, reform tax and banking system does not make enough.

Active employment policies, according to the ILO, They have not gained the necessary prominence, because public employment services can not with the volume of unemployment, since counselors have been reduced when 1 there should be for each 80 unemployed.

The youth guarantee, according to the ILO, has failed with available funds which has not been used because the employment offices are not trained to manage them. Also comment that require of a support specific with orientation to the unemployed of long duration.

Just the tips of the ILO with putting political of gender, a progressive fis […]

The 9 best links on economy and society to understand what is happening

Continuing our overview of the best links in economy and society to understand what is going on, we bring you our compilation of the week. Start:

  • John Müller explains in Spanish the which according to him are the three signs to lose hope in banking.

  • In nothing is free write about one of the hot economic topics of the week: the new CNMV, with Luis Garicano as one of the co-authors.

  • Very interesting article of Gabriel Colominas on top-don, fintech, banking and financial culture.

  • There is that differentiate between digitize it and transform is digitally. Marc Vidal us explain the case of the ‘ Mall-Data’.

  • What you prefer, a kilo of gold or its equivalent in ‘paper gold’?. Juan Manuel López Zafra writes on his blog Big Data of the confidential on Gold paper.

  • Against corruption, more equality. Essential reading the Tribune of Pau Mari-Klose in The country.

  • After the no to the Treaty of peace with the Farc in Colombia, Pablo Simon gives us in Politikon reasons why we should not criticize the referendums.

  • “If they go up my salary, I’ll less” and other five false beliefs about the taxes that we pay. Diego Lorenzana explains it to us in SMEs and freelancers.

  • Finally, Juan Ramón Rallo explains in The confidential why exploded the PSOE.

The EU could cut 1,200 million to Spain: motives and consequences

Spain was fought of a monetary fine for breaching the deficit in 2015. But it can the freezing of funds not be free if finally the European Commission’s proposal comes to fruition. In return not to impose a sanction for repeated the purposes of deficit breaches, Spain and Portugal could see frozen aid in an amount of about 1,200 million euros.

This week, the European Parliament has opposed unanimously to carry out this measure, because the considers “absurd”, “counterproductive” and “disproportionate” and even “Kafkaesque”. While the Commission is forced to do so by imposing legal, but ensures that it will not affect the payment appropriations and Governments can prevent permanent losses, something that members of Parliament do not understand because they believe that freezing these funds returns to punish the citizens, who are those who benefit from these programs.

It will the Ecofin (EU economy and Finance Ministers) who take the final decision, and while it seems that they preferred not to punish to the Iberian Peninsula, the decision is not yet taken, so no you can claim victory even and may this time Spain Yes have to pay for skipping the deficit to the Bullfighter.

Such slurry…

The structural funds are the instrument of the EU to promote the development of States members promoting their economic and social integration. Divide in two: ERDF (European Regional Development Fund) and ESF (European Social Fund). The first are directed to communities that are less developed, and provide funds for the construction of infrastructures and productive investment to generate employment and promote business activity, while the latter financed above all training activities for the resinsercion of the unemployed into the labour market.

These funds have been fundamental to the development of Spain and its regions, especially at the beginning of its entry into the European Community, as from then until 2003 they came to represent 1.6% of GDP. But in subsequent years, with the economic crisis and the enlargement of the EU to new States, supports have gone down, although they remain of vital importance in some communities automas, because it is precisely regional governments which manage them.

What has happened? That wild deficit that has registered Spain in recent years has put in play a tool vital for the development of the country and its social cohesion, at a crucial moment, moreover, as the economy is beginning to recover. And although the members of the Commission that until 2020 it would not notice their effects, the impact would be strong enough. Because as well say the members of the European Parliament, the main victims would be, again, citizens, who are tightening the belt since the crisis erupted and, under which Spain has to make more adjustments to comply at once with its European partners, will still have to do more.

Even at time of avoid disaster?

It seems that still not all is lost in what has to do with the freezing of these grants. The European Commission linked them to it to correct the fiscal deficiencies as soon as possible, something that has already begun to make the Government with Tax reform . However, it also demanded to submit a budget bill for next year, something that is not so simple.

Luis De Guindos

October 15 is the deadline so that Spain can present to the EU budgets that include those adjustments that promised to make in return for not paying the fine for deficit. While the political blockade in which the country has been almost a year makes it virtually impossible that in less than a week this is carried out. So it will not be obliged to extend this year’s, in a way that scissors will come more later.

This can lead to the European Commission not to be obliged to block funds for Spain, which can lead to a decline for the recovery of the most disadvantaged regions. But while all this is happening, strange inertia in this country has led him to that after 10 months without a Government the IMF has given you the best prospect of growth of developed countries this year, which expected an increase of 3.1% of GDP. Seeing is believing.

Basic income, which such work experiments?

Universal basic income It has become a workhorse of many political parties of the left all over the world. A few years ago, much of the world citizens did not know was the basic income.

In Spain everything changed with the emergence of new political parties, to include among his electoral proposals providing a monthly pay to all citizens of legal age.

In Switzerland the month of June is became the first country of the world in vote in referendum on the income Basic, i.e., have income minimum to each one of their inhabitants as right by having the nationality.

We can ask: how thinks them different countries implement the income basic? What experiments have been performed in subject of basic income? In some country has been viable basic income?

Canada the first precedent of basic income

Canada Renta Basica

Between 1974 and 1979, the inhabitants of the City of Canada, Dauphin, received a support around 60 per cent of the minimum wage in the country. There was a reduction in the hours of work since many of the workers improved its training or had low maternal more long.

The result was really positive, but was in a single city and the in rest of the country not perceived any help. The citizens of Dauphin had an advantage from the rest of inhabitants of Canada having is basic income but the Ontario province has assigned an item in their budgets of 2017-2018.

In Spain has been an income guaranteed for unemployed

Espana Renta Basica

It is possible the implementation of a guaranteed income for the long-term unemployed. They may have on the tax on the income of natural persons since it is easily fundable through a simple tax reform.

Obviously there are others ways of finance the income apart from a reform of the income TAX since is can reduce them figures of the fraud fiscal matching it to the middle of the Union European. Even doing only the income TAX reform, could finance income for the long-term unemployed.

The goal would be the guaranteed existence of the amount equal to or greater than the poverty threshold, i.e. 7,500 euros. You should thus be considered that no citizen in unemployed of long situation live mired in poverty.

According to Professor John Gimeno Ullastres, Professor of applied economics at the UNED, an income for the close to 400 euros long-term unemployed, would cost 5.232 billion euros annually (1.090.100 unemployed aged over 50 in the second half of the 2016 according to INE data), of which 60 per cent would be self-financing and would be viable through arbitration measures allowing to recover about 40 percent of their cost through the PERSONAL INCOME TAX.

The biggest difficulty for an income for the long-term unemployed is its high cost, although the primary source of funding is feasible for the absorption of other items that they currently spend to social policies.

The Government would have of resources to ensure an income annual of 4.755,80 euros by each stood of long duration that would be 396,32 euros monthly.

Switzerland said no to the basic income

Suiza Renta Basica

Switzerland became the first country in the world to vote in referendum the basic income. In particular, the proposal on the basic income in Switzerland, focused assign, monthly, 2,500 Swiss francs, 2,260 euro, per adult inhabitant and 625 Swiss francs, 570 euros per person under the age of 18.

Between the calculations of studies for the financing of Swiss basic income, would have needed 200,000 million Swiss francs, i.e., 167.000 million euros a year, representing a third of the GDP of Switzerland, under increasing fiscal pressure.

The result of the Swiss referendum was a rejection of 76.9 percent of voters to the proposal which was not supported by the Government nor almost any political party Swiss.

Finland and the Netherlands carried out programmes pilot

Holanda Renta Basica

In Finland, the Government is preparing a pilot test for the coming year and the year 2017, in which raises pay 550 euros per month per capita instead of eliminating some benefits and social benefits.

In Holland, the City of Utrecht will deliver a month 660 euros to the people who most need it and to participate in a pilot test. The idea is that it receive by do nothing but to give them a safety so may undertake or search a work.

In these two countries advocates of basic income guarantee that it would be a measure to Save for the two Governments, since minimum and only supports would be much easier to manage than many aid efficiently.

Uganda and its basic income named cash-transfer

Uganda Renta Basica

Uganda has been a test conducted that has become a reality of aid repayable I call as cash-transfer. Inhabitants who were affected by the conflict in northern Uganda, received 370 dollars, without any condition.

Several years later, residents who had received the cash-transfer had income 41 per cent higher with respect to other people in the same situation who had not received the cash-transfer.

The Government gave a $10,000 support groups of about twenty inhabitants, these should be grouped to qualify for the aid, which will present a business plan. What they received aid were spent part in formation and a large part bought tools of production and stock.

In these two cases are repayable aid without asking for explanations. They were a success, but in no case were an income minimum guarantee by the State as I vote in referendum in Switzerland in June this year.

Kenya last basic income approach

Kenya Renta Basica

In many disadvantaged areas of Kenya have been chosen to start an experiment on basic income. The GiveDirectly organization delivered to 26,000 inhabitants of Kenya a specific amount of money.

The approach is that 26,000 inhabitants will receive 0.75 dollars to the day during 12 years and the amount will be delivery of way monthly. Another group of inhabitants will receive the same amount to the day but for a term of two years. There is a third group that will receive the same amount per only in a payment.

In this way the behaviour of the inhabitants will see when they have a source of income that is guaranteed with a basic income in the long run, 12 years old, and that have a rent short term 2 years.

In the Blog Salmon | Would an income for all long-term unemployed viable?

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