Could Universal Basic Income Start in Canada?
Proponents argue that a universal basic income could significantly aid those in unstable and poorly paid jobs. However, skeptics question its effectiveness in addressing poverty and whether Canada can afford such a scheme. The debate gains traction as some provinces show interest; notably, Newfoundland and Labrador launched a three-year pilot in November 2023 for those aged 60 to 64, mirroring federal seniors’ benefits, according to The Canadian Press.
Newfoundland’s Premier Andrew Furey, with a background in orthopedic surgery, emphasizes the importance of addressing social determinants of health over merely focusing on healthcare systems, highlighting his administration’s commitment to these factors.
Additionally, Prince Edward Island explored a five-year basic income proposal in November, aiming to provide income at 85% of the poverty line. Concurrently, the Senate reviews Bill S-233, proposed by Sen. Kim Pate in 2021, seeking to establish a national framework for a guaranteed livable income for all Canadians over 17, including temporary workers and refugees.
Experts, including Wayne Lewchuk from McMaster University, argue Canada can afford a basic income, suggesting the cost—a projected $88 billion in 2022-23—is a necessary investment to prevent societal exclusion. They point to historical precedents, such as wartime funding and emergency COVID-19 measures, to argue for the feasibility of finding resources for such programs.
The “Mincome” experiment in the 1970s is often cited as a precedent, although it was not continued due to economic constraints at the time. Designing a basic income would involve defining the support level and integrating it with existing social benefits, presenting both a challenge and an opportunity for systemic reform.
Despite concerns that a basic income might enable low-wage employment by shifting the responsibility to the government, proponents believe it’s a realistic and necessary response to Canada’s labor shortages and aging population, advocating for a comprehensive rather than pilot-based approach. They argue that the cost of inaction, both in human and economic terms, far outweighs the expense of implementing a basic income.
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