What is Universal Basic Income?

On December 16, 2021  Bills S-233 and C-223 were introduced,If approved, these bills would set the groundwork for the inaugural nationwide structure of an unconditional Guaranteed Livable Basic Income also known as Universal Basic Income for all individuals aged 17 and above throughout Canada. Notably, both bills share identical titles and content, signifying a historic and synchronized initiative originating from both the House of Commons and the Senate in support of Basic Income.

Bills S-233 & C-223 for Unconditional Basic Income

Key Features: 

• “…for individuals aged 17 and above, encompassing temporary workers, permanent residents, and refugee claimants.”
• “ascertain the definition of a basic income deemed livable for each region across Canada.”
• “to guarantee that engagement in education, training, or the workforce is not obligatory.”
• “does not lead to a reduction in services or benefits designed to address an individual’s specific needs related to health or disability.”

What would Bills S-233 and C-223 do? 

If enacted, this legislation would mandate the Minister of Finance to establish a nationwide framework for the execution of a Guaranteed Livable Basic Income within one year. In straightforward terms, this implies that the federal government would be obligated to formulate standards and a strategy. This framework would serve as a blueprint, allowing the federal government and other levels of governance to implement unconditional Basic Incomes in their respective jurisdictions.

What are the requirements for Universal Basic Income?

There are not many, These bills just ask the government to make a report about how Basic Income could work. The main thing about a Universal Basic Income is that it doesn’t have many conditions—mostly just based on age, income, and where you live,means that everyone in a society — rich or poor — gets a monthly cheque for the same amount. At the end of the year, the government uses the tax system to balance out the scales and recoup that extra cash from the higher income earners who didn’t end up needing it. 

What are the disadvantages? 

In 2018, the government of British Columbia asked a panel of experts to study the feasibility of a basic income for the province. The resulting report found that “the needs of people in this society are too diverse to be effectively answered simply with a cheque from the government.”

Panel chair David Green, a labor economist and a professor at the Vancouver School of Economics at the University of B.C., said the better solution is to reform the programs that already exist.

“If our problem is really, the full heterogeneous, complex issue of poverty — how do we make a more just society — then, in many cases, sending people a cheque and hoping they will do better is not going to answer the problem,”

One of the biggest challenge for Government is who will support the program, With half a million immigrants every year along with Temporary workers and Refugees could cost approx 400 Billion CAD to Federal Government which is unsustainable.

Canada is already struggling with High Inflation rates and major reason for that was Quantitative easing or in simple words excess money infused by government in the economy after Covid, and UBI will ultimately infuse much more money into the economy and could end up in a very high inflation which means even after giving 2000 CAD per person affordability might get even worse than what it is.

Conclusion

Although the concept of Universal Basic Income is convincing and could impact lot of people, however it is a double edged sword and could make things even worse for Canada and Canadians.