by Guest Contributor | Apr 5, 2017 | Opinion
Written by: Rahul Basu
A Universal Basic Income (UBI) is a periodic cash payment unconditionally delivered to all on an individual basis, without mean-test or work requirement. A Universal Minimum Income (UMI) would be a UBI set at a level to ensure everyone has at least a minimum income sufficient to keep body and soul together. This would engender personal freedom. If we add to this public health & education, and other targeted benefits for the disabled for example, it would be a wonderful situation. What would it take?
The math is simple. If we have to pay out a UBI at X% of average income, then it will cost at least the same X% of GDP. The proportionality is clear.
| Population x Average income |
= Total income of country (GDP) |
| Population x UBI of X% of Average income |
= X% of total income of country |
We must first establish what should be the target level of Minimum Income. A simplistic definition would be to take a percentage of average income. The idea here is that if on average citizens are earning a certain amount, then a percentage of that average could represent the poverty line. Let’s assume we set the poverty line at 60% of the average income, and target a UMI at that level.
In practical terms, the US average family income in 2015 was $92,673. A UBI of 10% would be $9,267 per family, clearly not sufficient to create personal freedom. Similarly in India, per capita income in 2016 was Rs. 93,231. A UBI at 10% would be a meager Rs. 9,323.
It could be argued that, if average income is calculated by simply dividing GDP by total population, growing inequality and robotisation will distort that average by sequestering income in the hands of the very rich, swelling the perceived average income by increasing GDP while the actual income of an average citizen remains much lower. In order to deal with this issue, the Organisation for Economic Co-operation and Development (OECD) defines relative poverty for developed nations as 60% of the median income level. To calculate the median, we first list every person in ascending order of income. We then find the midpoint, and the income associated with it. Finally, we calculate 60% of this income to work out the relative poverty level.
The US median family income in 2015 was $70,697, or 76% of the average income of $92,673. The relative poverty line is 60% of the median income or $42,418. This works out to 45.8% of GDP (60% * 76%). It is still completely utopian to imagine the US could pay out nearly half its GDP as a UBI.
Suppose we use the World Bank definition of extreme poverty, $1.90 per day. By simple multiplication, for the US to provide a UMI at this level would require $57 per person each month. Not quite enough to survive on, but it would still cost the US government $221bn each year (pop of 318.9 million). In the Indian context, the World Bank’s poverty line is Rs. 28.71 (at PPP exchange rate of 15.11). A UMI would pay out Rs. 10,478 per person per year, for a total of Rs. 13,119 billion a year. This is more than 10% of India’s GDP, and is 61% of India’s entire 2017 Union Budget of Rs. 21,470 billion.
The essential proportionality of a UBI as a percentage of per capita income, requiring the same percentage of GDP to finance it, creates the dilemma facing UMI. If we wish to achieve a minimum income level, then targeting seems unavoidable. We may decide to keep goal of universality (everyone receives UBI) while giving up the goal of minimum income (the amount is enough to live on). Even then, it is clear that for any meaningful level of UBI, there needs to be substantive discussion of the financing source. Even a UBI of 1% of per capita income, a small amount for most individuals, would require 1% of GDP to finance, a very significant amount for any government. A UBI of 10% of GDP would likely require an entirely new financing mechanism.
In view of this simple mathematical challenge, the Basic Income movement would be well advised to pay closer attention to the funding mechanism. The success of UBI depends on the practical and political feasibility of the funding mechanism. And if such a mechanism is found, we would still have to explain why universality is preferable to targeting. It is likely that the only successful UBIs will be those where universality is a logical, political or legal necessity. This has been the case with the two most significant examples of UBI, Alaska’s Permanent Fund Dividend and Iran’s UBI in lieu of fuel subsidies.
About the author: Rahul Basu is a member of the Goenchi Mati Movement, which asks for minerals to be treated as a shared inheritance. Mining is the sale of the family gold. For fair mining, there must be zero loss mining, saving all mineral money in a permanent fund, and distribute the real income only as Citizens’ Dividend.
by Kate McFarland | Mar 26, 2017 | News
A new documentary on basic income — Free Lunch Society by Austrian director Christian Tod — premiered in Copenhagen’s Bremen Theatre on March 20, 2017, to a crowd numbering in the hundreds.
The 90-minute film covers a range of “highlights” of the basic income movement, such as (for example) Alaska’s Permanent Fund Dividend, Manitoba’s “Mincome” experiment, campaigns for guaranteed minimum income in the 1960s US, the 2008 basic income pilot in Namibia, Switzerland’s 2016 basic income referendum, and current concerns about automation. Along the way, it features interviews with prominent basic income proponents — including, among others, billionaire businessman Götz Werner (founder of the German drugstore chain dm-drogerie markt), libertarian political scientist Charles Murray (American Enterprise Institute), venture capitalist Albert Wenger (Union Square Ventures), Mein Grundeinkommen founder Michael Bohmeyer, Swiss referendum co-founder Daniel Häni, economist Evelyn Forget, and writer and entrepreneur Peter Barnes.
In an interview about the film (“Curiosity and the desire to improve the world”), Tod explains, “The film takes as its point of departure an ethical justification of basic income founded on the premise that natural resources belong to us all.” Tod’s musical selection — centered around the song “This Land is Your Land” — reflects this orientation toward the subject, as do his cinematographic decisions to include clips of natural scenery interspersed between the vintage footage and talking expert heads. (As he says in the same interview, “What might not come across quite so clearly in the completed film are elements which strike me as extremely important such as the countryside, the Earth, natural resources. I had wanted these aspects to be more prominent, but then the narrative would have suffered.”)
Tod has also acknowledged the influence of the science fiction series Star Trek: The Next Generation on his thinking about basic income and, eventually, the film: “It presents a society where there’s no money, where people only work because they really want to, and where they are driven by human curiosity.” Correspondingly, Free Lunch Society begins and ends with scenes from Star Trek.
About the interview subjects in his film, who were chosen in part to emphasize the political diversity behind support for basic income, Tod notes, “It’s interesting that they are almost all business people: owners of technology companies, CEOs of large or small companies, people who can afford to think about making the world a better place.”
Asked about the most surprising thing he learned while making the film — in an interview following the film’s premiere (see below) — Tod mentioned the discovery that “basic income was such a big thing in the United States in the 1960s,” tested in experiments and nearly voted upon.
Watch the Trailer
World Premiere Event
Most of Copenhagen’s Bremen Theatre 648 were filled at the world premiere of Free Lunch Society on Monday, March 20, 2017.
Director Tod states, “It was a fabulous evening in a tremendous location. It was very special to have the world premiere of Free Lunch Society in Copenhagen, because my film career started in this beautiful city 10 years ago, when I studied at Copenhagen university’s film department. The premiere on Monday was, so far, the peak of my career in filmmaking. Almost 650 people watching my vision and applauding, laughing and apparently liking it, is hard to top.”
The film’s world premiere was followed by short interviews with Tod and Bohmeyer, as well as a panel discussion with Uffe Elbæk (Leader of the Danish green political party The Alternative; Danish: Alternativet), Steen Jakobsen (Chief Economist at Saxo Bank), and Dorte Kolding (Chair of BIEN-Danmark). All three panelists were sympathetic to the idea basic income, although Elbæk explained that The Alternative was not prepared to endorse it — though they would be willing to pursue pilot studies, and though the party’s political agenda includes the provision of benefits to the poor “without specific control measures” (that is, without conditionalities like work requirements, similar in spirit to a basic income). Jakobsen advocates a negative income tax, as proposed by Milton Friedman, as a way to increase the purchasing power of the lower and middle classes and produce a more equitable distribution of wealth. Watch below (panel discussion and debate in Danish).
The world premiere was followed by several other showings in Copenhagen, including one which was held as part of BIEN-Danmark’s Annual Meeting (March 25, 2017), with showings in Austria scheduled in late March and early April.
More Information
Free Lunch Society Official Facebook page.
Jannie Dahl Astrup, “‘Free Lunch Society’: Øjenåbnende ørefigen til kapitalismen,” Soundvenue, March 20, 2017 (film review, language: Danish).
Thanks to Karsten Lieberkind for helpful information and reviewing a draft of this article.
Photo: Free Lunch Society promotional image from CPH:DOX.
by Kate McFarland | Mar 25, 2017 | News
BIEN co-founder Philippe van Parijs and his former student and recurring coauthor Yannick Vanderborght have coauthored a major new work: Basic Income: A Radical Proposal for a Free Society and a Sane Economy, published in March 2017 by Harvard University Press.
In the book, van Parijs and Vanderborght present a thorough history of basic income as well as a philosophical and practical defense. In the first chapter, they elaborate upon the concept of a basic income (“a regular income paid in cash to every individual member of a society, irrespective of income from other sources and with no strings attached”), explaining the significance of each of the key characteristics: it is paid in cash (rather than in kind), paid to individuals (rather than to households), universal, and obligation-free. In the second chapter they proceed to contrast basic income with alternative (but often closely related) proposals — such as the negative income tax (which is sometimes conflated with basic income), basic endowment, Earned Income Tax Credit, job guarantee, and working-time reduction.
In the following two chapters, van Parijs and Vanderborght turn to the history of the idea of basic income, beginning in the sixteenth century with the writings of Thomas More and his fellow humanist Juan Luis Vives, then progressing alongside policy developments from England’s Poor Laws to the Speenhamland system to Bismarck’s social insurance to contemporary welfare states. The fourth chapter delves in more detail into the intellectual history of the idea, starting from Thomas Paine’s seminal proposal in Agrarian Justice and the competing proposal of his contemporary Thomas Spence. Van Parijs and Vanderborght relate the ideas of subsequent thinkers — including J.S. Mill, Bertrand Russell, George D.H. Cole (who coined the term ‘basic income’) — in their historical context. The authors describe the varied strands of support for minimum income proposals in the United States during the 1960s and early 1970s, briefly review the creation of Alaska’s Permanent Fund Dividend, and overview the emergence of the European movement in the 1970s and 1980s, including the founding of BIEN.
After this history, the authors devote a series of chapters to analyzing and rebutting arguments against basic income — the ethically based “free riding objection” to the lack of a work requirement, the practical concern that a basic income could not be sustainably funded, and the worry that basic income is not politically feasible. Finally, they devote a chapter to the impact of globalization on the implementation of a basic income.
Basic Income has been featured as “Book of the week” by Times Higher Education, which published a review along with wide-ranging interviews with van Parijs and Vanderborght.
Nobel Laureate Amartya Sen has described the book as “essential reading for anyone interested in the problems of deprivation and unfreedom that survive even in the richest countries in the world” — calling it “powerful as well as highly engaging—a brilliant book.”
Reviewed by Russell Ingram
Photo: CC BY-NC 2.0 Patrick Down
by Andre Coelho | Mar 15, 2017 | Opinion
A debate has arisen about the definition of basic income and the facts that support the movement. To contribute my input to the debate, I feel the need to respond, line by line, to Francine Mestrum’s latest article published on Social Europe.
It starts right at the top, with Mestrum equating basic income, professed in the Basic Income Earth Network (BIEN) Newsletter articles, with guaranteed minimum income. To justify this approach, she mentions the fact that no basic income has ever been implemented, and that the pilots concerned transferred cash only to poor people. Although her view is understandable, she fails to see that these pilots intended to test the outcome of a basic income implementation (which effectively transfers income from the relatively richer to the relatively poorer). It’s not that in a future basic income implementation rich people will not get it (as opposed to the Negative Income Tax approach); universality implies they also get it, but then all of the basic income and more is taken away, through taxation. That’s redistribution functioning.
We already see that in our current welfare states, but in twisted, unfair and inefficient ways. The conditionalities associated with present-day social security are creating poverty traps all around, so the unconditionality associated with basic income is intended to eliminate them. However, and as a matter of fact, her reference to the Canadian basic income experiment at Dauphin is misplaced, since Dauphin was actually an experimental saturation site, which means that everyone in the town was eligible for the cash. The income monitoring and distribution simulated the taxation effect (only positive transfers for the relatively poor).
Then, Mestrum goes on to say that current basic income experimental plans in the Netherlands, Finland and Scotland “can threaten social protection mechanisms”. Well, we in the basic income movement have already heard enough about the possibility of basic income being highjacked by right-wing neo-liberals threatening to dismantle social protection mechanisms (and much more) with the introduction of a basic income. I can hear them say, between the lines: “Here’s free money to everyone! Now get out of our faces and let us dismantle everything in existence publicly owned or managed.” Of course there’s a risk. I’m not denying it. However, any person who is aware will not be fooled by such intentions. I, among many other basic income defenders (most of them, actually), support a basic income which is complementary to the welfare state, not a substitution for it. Louise Haagh makes a very good case for this defense, as expressed here.
Then the questions. According to Francine, the only serious questions worth answering on basic income are whether income distribution schemes, like in Alaska, should be limited to resource-rich regions, and whether there shouldn’t be a global fund (linked to resources from all regions) to cover global needs. These are important questions, no doubt. But hardly the only serious ones. How about, “Should not all people enjoy a minimum amount of freedom in their lives, instead of being pressured and exploited all the time?”, or “Should not countries and their governments make efforts to reduce structural inequalities, which are seen as the source for countless social problems?”, or even “Should not countries introduce a way to guarantee basic financial security for all, as a way to effectively deal with the changing nature of work, precariousness and automation?”. My view is that Francine Mestrum nurtures a very narrow view on what is and what is not meant to be a basic income.
As for semantics, notably the “basic income” vs “minimum income” discussion in France, I do have not much to say. However, if we limit ourselves to a pure language discussion, note that “basic income” can mean anything from the most abject dictatorial sanctions-based system (as in present-day United Kingdom) of social assistance, to the most progressive, avant-garde unconditional system of cash transfers. Once each one of us explains what he/she understands these terms to be, there should be no confusion left.
Next, Mestrum identifies BIEN as a source of the problem, to be held responsible for these disputes in language (which she inelegantly calls “communicating on alternative facts”). This is unfair. More precisely, it is unfair because it stems from a misunderstanding of the mission of BI News. BIEN’s Newsletter is a collection of articles from Basic Income News for a given month. These articles convey information about what is happening around the world concerning basic income, and an article about the alleged confusion between “basic income” and “minimum income” would actually be a good candidate for Basic Income News. Articles can report news from someone defending basic income, or somebody else critiquing it (as Francine Mestrum does). Events and other publications on the Internet are also frequently highlighted byBasic Income News. What is posted on Basic Income News does not necessarily convey BIEN’s views on basic income. Instead, for that end, a short, general definition is available on BIEN’s website. There can be absolutely no mistake here.
Another thing has to be perfectly clear. As a BIEN member, and Basic Income News editor-in-chief, my role is not to speak for the minds of other people, even when they are confusing “basic income” with “minimum income”. Basic Income News is expected to be an impartial news service, aiming nonetheless to disseminate information about basic income. Interested readers will take their time to digest all this information, to think and to draw their own conclusions. Here I resort to a line I normally use in these situations: no one convinces no one, only the individual becomes self-convinced. Now, for that, of course, one must be in possession of enough information. And that’s where we, at Basic Income News, step in.
Understandably, Francine Mestrum has a deep rooted fear that basic income implementation will lead to the collapse of the welfare state and, with it, all the hard won social conquests, such as public education and public health and, of course, democracy. We are all too weary of the effects of the rentier capitalist economy thriving these days, chief among them the erosion of democracy. But Francine’s fears are not against basic income. These are against, as she herself puts it, “those who do not believe in society”. And that’s why all true defenders of a social basic income, the one that promotes solidarity, complements the welfare state and recognises the commons, must do exactly that: promote solidarity, defend the welfare state (while improving it) and help expand the commons.
Otherwise, I must agree with Francine: our society will inevitably decay into a dystopia of unbelievable proportions, destruction of the environment and exploitation of the people.
More information at:
Francine Mestrum, “The alternative facts of the basic income movement”, Social Europe, 16th February 2017
by Pierre Madden | Feb 24, 2017 | Opinion
Translated from a series of French fictional stories based on the basic income: https://revenudebase.quebec/histoires/ (in French)
Written by the Revenu de Base Quebec Team
Translated by Pierre Madden
Notice
These stories are fiction. Let’s face it, Basic Income is not yet a reality anywhere (with the exception of Alaska), only a promising proposal, tested successfully on a small scale. While any resemblance to persons living or dead is purely coincidental, the situations described do resemble what real people experience every day and illustrate how Basic Income can work in practice and what impact it can have on peoples’ lives.
1. Mady and her family
Her name is really Madelyn. Everyone calls her Mady. 57 years old and recently widowed, her husband’s long illness forced her to cut her work hours in half. She was on the edge of bankruptcy. Things are better now that she is back to full-time. Going through something like bankruptcy can be tough on a person, that is why there are steps in place to help them through this with assistance like a Chapter 13 Bankruptcy Attorney Milwaukee firm or a firm within their area, that can stop foreclosures and repossessions of property. Luckily Mady didn’t get to this stage.
Her youngest, Samuel, born just before it was too late, is now 20 and still in school. He lives at home. If he hadn’t worked at least 15 hours per week since the age of 15, the phone, the scooter, the computer and the few name brand clothes he splurged on would have been out of reach. He took an extra year to finish junior college: taking all the required courses was not always possible. He is about to start college in another city. Mady doesn’t know how she is going to be able to help him pay for 4 years of university. Her other children, Helen and James,35 and 33, have their little families. They get by…
Actually, James is doing much better than Helen. Even if he and his wife don’t have permanent jobs, they manage to make enough at consulting for him and translation for her, to have a relatively comfortable life with their two kids. To get to that point, they had to survive 3 lean years around the time the children were born. They had no paid parental leave. The problem now is managing everything. Day care for one child, elementary school for the other, a bit of sports and music for all, and the constant search for contracts, a job in itself for freelance workers.
“Poor Helen!” laments Mady, “her boyfriend left her with three kids” and she calls him names we can’t print. She met him in her early thirties; they were in love; she felt it was time to have kids; now or never; he seemed to agree. Four eventful years and three children later she finds herself in an all too common misery: rare odd jobs, trading services with other “single parents” who can’t afford childcare, clothes from hand-me-downs or thrift shops, expensive rent, minimal groceries, finicky welfare agents and all the rest.
However, it is her parents that worry Mady the most. Her mother is 82 and her father 87. He is becoming senile; she is in good health. She is exhausted taking care of her husband. Mady can see that her mother won’t last long. After sixty years of marriage, she refuses to be separated from her man. Mady’s siblings live in other cities so sooner or later she will have to pick up the slack: if not with her father , then with her mother. She worries a lot about how she will manage.
Mady, her family and a basic income for all.
Let’s imagine what it would be like…
Although Helen would be no less alone with her children, she would benefit the most from a Basic Income. Her personal allocation, combined with those of her children, would not necessarily amount to more than what she receives now in aid. However these sums are without condition, without meetings with government agents, without reports, without intrusion into her private life.
Best of all, she could build on this revenue by earning more without penalty: she could really think of improving her situation by working more and more, progressively, while still taking the time to raise her kids. The future would hold promise for her and her family.
James and his wife would have had an easier time when the children were born. They could have worked a bit less and enjoyed a less crazy life. Then again, young and ambitious, they liked the hectic pace. For sure, with less uncertainty comes less stress.
Samuel would probably be a year ahead in his studies, his child’s Basic Income permitting him to not work or work much less, just to pay for a few indulgences or to help out his mother during his father’s illness. On turning 18, he gets the full adult Basic Income; at university in another city, with an apartment, food and schooling to pay, his finances would still be very tight.
Mady, for her part, would not have risked bankruptcy during her husband’s illness. She could even have stopped working to care for him. Also, she would have less apprehension at the thought of caring for her parents or of her children caring for her in the future.
2.Peter Martin Inc.
Young and prosperous industrialist, Peter Martin’s success does not go unnoticed: big house with three garages, an equally imposing cottage by a prestigious lake, a sleek and fast number to get him from his homes to the factory. Family finances certainly benefit from his wife’s medical specialist income. And their two kids can dream of studying anywhere on the planet, a planet they know well, having traveled all over, both with their parents and alone.
Peter is past forty and greying: he had to work hard to get to where he is; he had to go through a bankruptcy and several other very difficult periods. Even if in the past few years his company is in constant growth, he never gets a moment’s rest: competition is fierce and worldwide. He has to constantly win new markets in an increasingly complex environment and continue to offer high-quality innovative products to distinguish himself from everybody else.
And if only that was the end of it! Creating products, exploring markets, that’s what he does best; that’s why he built his business. He started with a few employees and worked directly with them on the shop floor. Now that there are several hundred more, it’s a different game. Recruitment and employee turnover have become factors as critical as competition and innovation. That is why implementing effective performance appraisals of employees is important to make sure they are working to their highest level, and management is doing what they are required to meet employee’s needs. To support these appraisals, employers can also look at adding in a management strategy such as real-time feedback that can help with tracking the employee’s work that they have been completing throughout the year, so when the appraisal comes they can have all the information needed at that moment.
Easy, the life of a rich industrialist? Only on the surface. Exhilarating for sure, though; Peter Martin would not think of trading places with anyone.
Peter Martin Inc., 20 years later
At the age when a salaried worker has retired, Peter Martin is still going strong and has just gone through most eventful period in his professional life: the implementation of Basic Income.
When this “thing” began to appear in the public debate, he was dead set against it
like most of his business colleagues: he thought it was raving lunacy. However, as general support for this social measure grew, at home in Quebec, in Canada and globally, he had to take it seriously.
The fundamental discussions he had had with his employees to establish joint management of his factories and profit sharing had shown him how far such measures could contribute to improving the working climate and even the product quality, not a negligible bonus. Discussions with his employees about Basic Income, heated at first, finally convinced him to take the project seriously.
From an opponent he became a supporter unlike most of his entrepreneur colleagues. When the policy was finally adopted, he couldn’t help feeling a bit nervous…
Guess what? No cataclysm occurred; no massive resignation of his personnel, his main fear. Of course a few left: most of them, temporarily, to look after a sick family member or to complete a personal project. Crazy demands for raises did not materialize. In fact, filling entry level jobs became easier and turnover in highly specialized employees dropped. Workers’ motivation improved and productivity went up. An unexpected consequence was the sharp drop in sick days, because lower stress levels employees felt in their lives and in their work.
3. Gwen and Max’s story
Small family that wants to devote more time and money to their kids, Gwen and Max were married in 2003. Tom was born in 2005, Marie in 2008, Tom is a little boy in perfect health. Unfortunately, his sister was born with a hearing deficit that delayed speech and reading development. Thanks to the help from the local hospital and from her teachers, Marie is improving every day.
Max was a union worker in the automotive industry. He was laid off in 2008 after the economic crisis and now works part-time operator mechanic, and while he worked there he may or may not have been using an auto repair invoice template for the work he does in the side but unfortunately doesn’t now due to a sharp drop in pay. If he could pay for the training, he would upgrade his skills to get a commercial job.
Gwen tops up the family revenue by working part-time in local businesses. Her hours change constantly, which on top of low pay, prevents her from being with her children as much as she would like. The parents are concerned that they won’t be able to provide their kids with the best chances of success such as the school aid programs and other opportunities available to their classmates.
If Gwen, Max, Tom and Marie could benefit from a Basic Income, their situation would improve considerably. Marie could take dance classes after school to help with her integration and get support to improve her reading. Tom could afford hockey equipment and join the school team. Thanks to a secure source of funds each month, Max could undertake the training needed to reorient his career. Gwen could spend more time with her children by not having to work while they are at home. This small additional revenue would greatly improve their family life and the future prospects of both parents and children.
4. Jane’s story: raising your child alone
Jane is 40, her daughter Emily is 12. It’s just the two of them. Emily’s father left them when she was 4. Jane wants to make sure that her daughter does not follow in her footsteps. Jane works as a waitress in a local restaurant and has trouble making ends meet. Paying the bills while still putting healthy food on the table for Emily is a challenge. Jane finds welfare humiliating so she has not applied for government aid even if she is eligible. She would like to earn more but has neither the training nor the opportunities to increase her revenues.
With a Basic Income, added to her waitress salary, Jane would be better able to take care of her daughter, spend more time with her when necessary, provide balanced meals, let her study, do sports. Jane just needs more freedom in her choices, without having to answer to the government.
With a Basic Income, Jane’s economic situation would have no impact on Emily’s schooling. Her daughter would have the same chance of professional success as children born in more privileged environments.
5. The story of Gabe, entrepreneur
Gabe has always dreamed of being his own boss. Although, at the moment, he works for a big company and earns a comfortable living, what he really wants is to start his own business. When he was in college, Gabe invented a more efficient cement pouring system which could save up to 25% of the time needed to lay foundation in large construction sites. Unfortunately, because he had to pay back his student loans, Gabe was unable to launch his business and instead took a job in a civil engineering firm.
In 2012, because of rising rent, he bought a little condo. He was about to make a move when he realized that his monthly payments made it unrealistic to leave a stable job and go for it. In case things did not work out, he would lose his condo and have to go crawling back to his old employer.
A Basic Income would give Gabe the financial security he needs to create his business. Indeed, the monthly amount would be sufficient to cover his student and condo payments and have enough to eat. A bank loan would become possible in order to launch his company. He would then have the credibility to approach his current employer to enlist his support for the project. Gabe figures it would take a year of hard work to demonstrate the potential of his new technology and start generating revenues.
Basic Income is the launching pad he needs to become his own boss.
6. Arnold Choi’s story
Arnold arrived in Canada in 2013 with only a work permit in hand. Now he is a permanent resident and well on the way to becoming a Canadian citizen.
As an engineer from China, he came to Montreal to earn money to send back to his family back in Beijing. Arnold fell in love with Canada. He is well integrated in the community, goes to church every Sunday and volunteers at a food bank.
He works as an engineer in a buildings and public works company and has been able to put aside enough money to think of bringing his wife Suzanne and their children to Canada.
Unfortunately, his father became very ill in 2014. Arnold had to return to Beijing, to look after him and accompany him in his final days. Medical and funeral expenses were substantial and now Arnold can no longer afford to bring his family to Canada.
With a Basic Income, Arnold could have brought his family to Canada and supported them in their new life. Arnold can appreciate to what extent the Canadian population is the fruit of immigration. Arnold being a member of the community, it is only fair that he should bring his family. A Basic Income would give him enough security to reunite his family and perhaps make new citizens for Canada.
