Trudeau’s government has called for an exploration into the concept of basic income for Canadians, as a part of a pre-budget report they presented on March 11. While it’s not guaranteed to be included in the actual budget, slated for release on March 22, the news has been received with some excitement from those who would benefit from such an initiative.
At a glance, there are several benefits to such an idea. One in eleven Canadians currently lives in poverty. Welfare programs can trap people in a constant state of being in need of assistance, due to the difficulty of re-entering the job market and still supporting oneself without it (known as the “welfare wall.”) The introduction of a basic income supplement would not only help to secure the livelihoods of working-age adults, but also help children in low-income households, and seniors with low pension-security. General public health is also expected to improve.
The idea is not a new one, but it’s been a hard one to implement in the past. Firstly, issues may arise due to the fact that the initiative would be extremely expensive. Studies have shown that just bringing all Canadians up to the poverty line would cost tens of billions of dollars, and all three main levels of government (federal, provincial, and municipal) would have to coordinate the efforts. Furthermore, the details are still unknown and are yet to be determined. Factors such as how much the income would be, what programs and services would be provided, and who would be eligible are still up in the air. Also, people who are eligible to receive the basic income pay may then be rendered ineligible for other supplements they rely on, including funding for war vets, for those with disabilities, and for aboriginals. The system may also be subject to abuse and result in a decreased incentive for citizens to work.
The flipside though, is that the money put into the system may be offset by the resulting benefits, such as a reduction in healthcare costs (which may also be in the billions). The amount of people who wouldn’t work in order to take advantage of the money may be reduced by not lowering their assistance proportionately with the added income of a job.
In the past, there have been efforts in Canada to try for a guaranteed minimum income. An experiment was even conducted in the 70’s in Dauphin, Manitoba in order to assess the impact and success of such a program elsewhere. There was no final report, but a small reduction in average working hours was noted, and was only significant for new mothers and teenagers. The result of this was more time and resources being put into education for children and family time, increasing test scores in students. The recent push, which began in 2014, suggested a pilot trial be done in Prince Edward Island. While it’s unclear what Trudeau’s investigations will involve, an exploration into basic income may be good for Canada’s progression.
Leave a Reply