Finland: Institutional Resistance of the Welfare State against a Basic Income

Since the late 1970s, massive and long-lasting unemployment was the primary problem for social economic policy in the welfare states. In Finland, this phenomenon was experienced as a rough time later—at the beginning of the 1990s—when unemployment jumped almost to half a million (about 15.5 percent). Governments tried to relieve the consequences of unemployment and poverty by providing social benefits conditionally and, in so far as in their power, to take employment-promoting measures. Although unemployment is no longer massive, structural and long-term unemployment still exists. It is difficult for governments and political leaders to rethink the changes in the economy and working life. Although the nature of work has changed, almost all benefits are somehow connected with paid work. In addition, the concept of work/labor itself has to be redefined. At least the relation between work and basic livelihood needs a new definition. A major problem is that the social security system in welfare states, for instance in Finland and Nordic countries, is very complicated and leads to poverty and other traps. It also lessens work incentives.