It would cost an extra $15 billion a year to introduce a well-designed basic income guarantee in Canada, a new Northern Policy Institute report suggests.
It's money that would be well spent, Prof. Evelyn Forget said in her report, "Do We Still Need a Basic Income Guarantee in Canada?", published by the Northern Ontario think tank.
"The key is to find the right way to integrate the B.I.G (basic income guarantee) into all of the existing social programs that exist in the country," Forget said in a release. "Now is the time to address, head-on, the challenges and trade-offs that are necessary to create a universal B.I.G. that can meet the needs of Canadians in the 21st century.
"The challenges are real, but so too are the costs of doing nothing."
Forget said the calculating the costs of a basic income guarantee program can be tricky, especially if -- as critics argue -- people are less inclined to work. However, she said the evidence suggests basic income guarantee programs do little to change people's approach to work.
"If a B.I.G. reduces the incentive to work and, consequently, many more people rely on the program than anticipated, the costs will be much higher than calculated," she said. "If, as is more likely, there is little behavioural response for most people, then costs will be much more modest. The behavioural response is something we do not yet know without the results of the proposed experiment."
As the same time, Forget concedes a basic income guarantee program won't solve every social problem, but it can help ease the burden for Canadians struggling with poverty.
"We conclude that B.I.G., like any other social program, can address a variety of issues but cannot independently solve all social problems. If well designed, a B.I.G. can not only deliver a range of benefits, but can do so at a feasible cost."
In "Do We Still Need a Basic Income Guarantee in Canada?", Forget cites shifts in the economy leading to income insecurity and outdated social policies, as reasons why basic income is a much needed policy in Canada for people finding themselves falling between the gaps.
In calculating the costs of basic income guarantee, Forget uses payouts based on the plan the Ontario government will experiment with in three cities, including Thunder Bay. Eligible individuals will receive up to $16,989 per year, less 50 per cent of any income they earn. Couples will receive up to $24,027 per year, less half of any income earned. Ontario residents with disabilities will receive up to an additional $6,000 per year.
As a result, a basic income guarantee program using Ontario's numbers, and "targeted to those between 18 and 64, will cost Canadians approximately $30 billion a year, less the $15 billion we currently pay for income assistance. A net cost of $15 billion annually is not only feasible, it is about 5 percent of federal government expenditure and much less than we currently spend on seniors' benefits.
"We can afford it if we choose to afford it."
For her report, Forget, a University of Manitoba professor, examines Mincome. In the 1970s, Canada tested basic income guarantee in a field experiment in Manitoba called Mincome.
Almost 40 years later, Ontario is preparing for a three-year basic income guarantee pilot based on the model proposed in Hugh Segal's recent discussion paper for the Ontario government. It is through both of these lenses that Forget explores both key design principles for consideration, and estimated costs associated with such a policy at the federal level.
According to her report, key considerations should include:
- Basic income guarantee, or B.I.G., should be targeted and support should be gradually withdrawn as income increases.
- B.I.G should be targeted to adults (18-64 years of age).
- B.I.G should make no one who depends on existing income support programs worse off.
- Costs of a B.I.G should be allocated to those with the greatest capacity to bear the burden
- B.I.G should not be seen as a replacement for all other social programs.
Forget said while experiments with other basic guarantee income programs have been dropped without becoming policy, the changing workplace should compel governments to take a fresh look at the idea.
"Since the 2008 financial crisis, it has become increasingly impossible to ignore the growing numbers of workers who spend many years or their entire careers working on insecure, short-term contracts. Young people just entering the workforce struggle to find secure employment that makes use of their training and offers them anything like the salary, security and range of benefits previous generations took for granted.
"Older workers, displaced by technology, often lack the skills to compete for the jobs that exist. The workplace has never been welcoming to people with invisible disabilities, and support programs offered by the state are under pressure, as struggling workplaces faced with global competition offer even less room for the supports required by these workers. People who leave the workplace because of their own poor health, or to support family members, often do not qualify for any support until a lifetime worth of savings, intended to finance a reasonable retirement, is exhausted.
"B.I.G. offers ways to address some of these policy gaps, but we need to understand the choices involved in turning the idea of basic income guarantee into a specific policy that can be applied in the real world, and integrated with a range of existing and not entirely consistent taxation and social policies. Turning an idea into a policy requires careful choices and some compromise."
The paper is the second of a series that explores the various topics presented at NPI's Basic Income Guarantee conference held in Sudbury last October. Report topics include food security issues, potential models for a B.I.G. pilot, tax implications, and the potential impact on social innovators and First Nations communities.
To view reports, presentations from the NPI's BIG conference and explore comments and feedback from participants, visit http://www.northernpolicy.ca/big.
. . . .
-- Northern Policy Institute is Northern Ontario's independent think tank. It performs research, collects and disseminates evidence, and identifies policy opportunities to support the growth of sustainable Northern communities. Operations are located in Thunder Bay, Sault Ste. Marie and Sudbury.
-- Evelyn L. Forget is a professor in Community Health Sciences at the University of Manitoba and adjunct professor of Economics at McMaster University and the University of Manitoba. She is director of the Manitoba Research Data Centre and adjunct scientist at the Manitoba Centre for Health Policy. Her most recent work examines the relationships between poverty, inequality, health and social outcomes.
. . . .
What do you think? firstname.lastname@example.org
Here is the original post:
- Basic Income as 40 Acres and a Mule - Basic Income News - October 16th, 2019
- 'Most Americans Don't Want To Work for the Federal Government' Says Andrew Yang, Trashing Federal Jobs Guarantee - Reason - October 16th, 2019
- Democratic debate highlights: best and most substantive answers of the night - Vox.com - October 16th, 2019
- Sanders: 'Damn right we will' have a job for every American | TheHill - The Hill - October 16th, 2019
- Assembly Elections 2019: Why is the Congress evasive about NYAY scheme this poll season? - Moneycontrol.com - October 16th, 2019
- Letter to the Editor: Universal basic income is inevitable as we head toward a fully automated society - The Post - October 16th, 2019
- Democrats focus on some Midwestern issues at Westerville debate, a departure from past three forums - cleveland.com - October 16th, 2019
- New book reviews the Namibian Basic Income pilot - Basic Income News - October 1st, 2019
- Basic Income Calgary - May 26th, 2019
- Basic Income Calgary - April 11th, 2019
- Basic Income Calgary - April 6th, 2019
- Quick notes from Basic Income Guarantee Panel - falicon.com - January 28th, 2019
- 'Hartz reforms': how a benefits shakeup changed Germany ... - January 28th, 2019
- Basic income could end food insecurity - Upstream - January 3rd, 2019
- Basic income could end food insecurity - Upstream - January 1st, 2019
- Basic income could end food insecurity - Upstream - December 2nd, 2018
- Basic Income Canada Network - November 17th, 2018
- Basic income could end food insecurity - Upstream - November 11th, 2018
- Basic income could end food insecurity - Upstream - November 9th, 2018
- Basic Income Canada Network - November 8th, 2018
- Basic Income Guarantee - Your Right to Economic Security ... - November 8th, 2018
- Basic Income Canada Network - November 5th, 2018
- Basic income could end food insecurity - Upstream - September 20th, 2018
- Basic income could end food insecurity - Upstream - September 18th, 2018
- The Ethics and Economics of the Basic Income Guarantee ... - September 18th, 2018
- Basic income could end food insecurity - Upstream - August 29th, 2018
- Basic income could end food insecurity - Upstream - August 23rd, 2018
- Basic income could end food insecurity - Upstream - August 22nd, 2018
- Basic income could end food insecurity - Upstream - August 21st, 2018
- Basic Income Canada Network - July 15th, 2018
- Basic Income Canada Network - June 27th, 2018
- Is a Basic Income Guarantee the Right Choice for Ontario? - June 27th, 2018
- Basic Income Canada Network - June 26th, 2018
- Is a Basic Income Guarantee the Right Choice for Ontario? - June 26th, 2018
- Basic Income Canada Network - June 16th, 2018
- Basic Income Now | It's time for dignity for all - March 17th, 2018
- Basic Income Now | It's time for dignity for all - March 16th, 2018
- Basic Income Now | It's time for dignity for all - March 15th, 2018
- Basic Income Guarantee - Your Right to Economic Security ... - February 28th, 2018
- Basic Income Now | It's time for dignity for all - February 23rd, 2018
- Basic Income Now | It's time for dignity for all - February 19th, 2018
- Basic Income Now | It's time for dignity for all - February 16th, 2018
- 'Me too' and the basic income guarantee | Basic Income News - February 6th, 2018
- Food shopping at dollar stores | Brantford Expositor - Brantford Expositor - August 24th, 2017
- How Cities Can Rebuild the Social Safety Net - CityLab - August 24th, 2017
- How Cities Can Rebuild the Social Safety Net - CityLab - August 21st, 2017
- How Cities Can Rebuild the Social Safety Net - CityLab - August 20th, 2017
- After lifting minimum wage, NDP government prepares to consult public about reducing poverty - Straight.com - August 16th, 2017
- Universal Basic Infrastructure to help decrease India's poverty - Economic Times - August 14th, 2017
- New Zealand Fabians host Basic Income panel - Basic Income News - August 13th, 2017
- Hashtag Trending Battery-free phone, Apple's China backlash - IT World Canada - August 10th, 2017
- Universal basic income proponent to speak in Boise - Idaho Press-Tribune - August 7th, 2017
- Let's talk about a supplemental income - The Hindu - August 7th, 2017
- Is a Well-Paying Job the next Entitlement Program? - Big Think (blog) - August 5th, 2017
- DON PRIDMORE: Be careful what you wish for... - The Guardian - August 1st, 2017
- EDITORIAL: Island needs dollars, not data, to cope with poverty - The Guardian - July 29th, 2017
- Renfrew County dietitian recognized by board of health for provincial award - www.insideottawavalley.com/ - July 27th, 2017
- More Calgarians struggle to feed their families over the summer months - CBC.ca - July 26th, 2017
- NEW ORLEANS, LA, US: Local basic income group begins to hold monthly meetings - Basic Income News - July 25th, 2017
- Value in using tax system for basic income: Report - The Sudbury Star - July 21st, 2017
- Does Basic Income Solve Anything? Grasp the Arguments for and ... - Futurism - July 21st, 2017
- NDP leadership candidate visits Guelph (8 photos) - GuelphToday - July 18th, 2017
- UBI is just a bedtime story Elon Musk tells himself to help the super-wealthy sleep - Quartz - July 14th, 2017
- Basic Income Guarantee program moving forward for 2000 Lindsay residents - Kawartha Media Group - July 8th, 2017
- Net incomes under a Basic Income system - Basic Income News - July 1st, 2017
- Should all Americans receive a guaranteed income? - KHOU - June 24th, 2017
- Should all Americans receive a guaranteed income? - 9NEWS.com - June 21st, 2017
- Should all Americans receive a guaranteed income? - KPNX 12 News TV - June 21st, 2017
- Should all Americans receive a guaranteed income? - First Coast News - June 20th, 2017
- Study of Iran's basic income shows it did not harm employment - Basic Income News - June 7th, 2017
- The Case For Basic Income - June 6th, 2017
- About That Universal Basic Income Idea - FITSNews - June 6th, 2017
- Universal basic income: guarantee pay as way to improve quality of life - WatertownDailyTimes.com - June 6th, 2017
- Letters: Guaranteed income guarantees sloth - The Province - June 6th, 2017
- Basic-income guarantee is way to end poverty - Times Colonist - March 11th, 2017
- Basic Income in Argentine News - Basic Income News - March 10th, 2017
- Industry body bats for universal basic income for women - Times of India - March 8th, 2017
- Basic Income Guarantee - Your Right to Economic Security ... - March 4th, 2017
- A guaranteed income isn't the solution to widespread unemployment - Acton Institute (blog) - March 1st, 2017
- Australia Needs A Universal Basic Income, And We Should Start ... - Huffington Post Australia - February 24th, 2017