CANADA: Council of small town Smiths Falls rejects basic income trial, residents disagree

CANADA: Council of small town Smiths Falls rejects basic income trial, residents disagree

Councilors of the small Ontario town of Smiths Falls voted on December 19 last year to reject participation in its province’s basic income pilot, to the objection of residents and the town’s mayor. A petition requesting a re-vote is currently circulating online. The story begins, however, in 2008.

That year The Hershey Company shuttered its Canada operations, at the time based in Smiths Falls, largely for cheaper Mexico-based labor. This exit of the area’s biggest customer precipitated the same by other businesses, and although the ensuing purge of jobs merely reflected a manufacturing decline already underway in the province, the disappearance of five hundred positions at Hershey’s alone, accounting for nearly 6% of the town’s population, catalyzed especially forward-looking pain. That year the town operated at a surplus of C$11.2m, and by the town’s most recent reported fiscal year, its once budget excess had trudged through increasingly tight leverage to a deficit of C$1.3m (albeit improved since 2013). Today the town struggles with unemployment above the national rate, and a third of children live below the poverty line.

Given also an aging population and petering labor force – per census data the town’s median age increased by 2.1 years in the five years leading up to 2011, and the overall population declined by 2% – it could be in the interest of Smiths Falls’ residents to entertain a basic income system. Indeed the petition created by resident Carol Anne Knapp has so far gathered 113 supporters, with a goal of one thousand. This is despite the council’s three-two vote, with two councilors absent, against mayor Shawn Pankow advocating to Ontario’s finance minister for participation in the program. Pankow has meanwhile expressed interest in holding a public meeting on the topic this month, health officials in tow.

A prominent councilor, Dawn Quinn, cast one of three “nay” votes. According to Jordan Pearson, writing for Motherboard, her vote was at least partly informed by her credo of frugality, stating that “folks sit around in Tim Hortons all day instead of looking for jobs, and they should consider buying a tin of Tim Hortons coffee to make at home instead of buying a cup.” On that point Pearson continues, “[Quinn added] they could consider shoveling snow to earn some extra money.” Similarly conveying Quinn’s underlying sentiment, Kate Porter quotes her in CBC News: “They need to be able to learn how to take that money and stretch it […] we need more of that kind of thinking.” So it appears the belief that basic income causes squander was, at least for one decision maker, a reason for the council’s vote outcome.

There is, however, some evidence from a bordering province that suggests this perspective is dogmatic, as reflected in Knapp’s petition letter requesting that a “new vote be based on science and evidence.”

Nearly forty years ago, Dauphin, a similarly small town in the Canadian province of Manitoba, underwent a five-year minimum income (dubbed “mincome”) experiment. Mincome was also similarly basic income-lite. Rather than a true guarantee, which is regardless of preexisting income status, mincome subsidized only those poor enough and was reduced for those who earned above a threshold. Likewise, Ontario’s pilot makes whole those earning below a set threshold. Even so, the experiment provides refutation to Quinn’s apprehension of lethargic congregations at Tim Hortons.

Evelyn Forget (credit to: Ecocide Alert)

Evelyn Forget (credit to: Ecocide Alert)

According to Evelyn Forget, an economist at the University of Manitoba and academic director of the Manitoba Research Data Centre, primary earners in Dauphin worked only marginally less within the five-year study, and much of the other reductions in labor force participation was comprised of women who extended maternity leaves and male high school students who simply stayed in school rather than work. Additionally, hospitalizations, in particular for mental health problems, dropped significantly (nearly 9% across the board) and would alleviate the burden on healthcare programs today.

Quinn acknowledges, though remains unpersuaded by, the Manitoba findings and is further dissuaded by cost – a concern currently aggravated by budget shortfalls. She protests that Smiths Falls became financially saddled after a 1970s investment in low-to-moderate income (LMI) housing, giving rise to her concern about opting into another government-borne program. A ten-year housing plan published in 2014 by Lanark County and Smiths Falls, however, notes that 74% of the county’s dwellings requiring major repairs were constructed prior to 1971. Coupling two observations then – 60% of LMI housing was developed under the program to which Quinn is referring; and renting in lieu of owning has been on the rise since Hershey’s departure – the 1970s investment appears to have provided an arguably necessary safety net.

Expenses, furthermore, reflect precarity when business output, curbed by economic disempowerment of consumers, constrains municipal revenues. In pursuing a conservative bottom line, rejecting basic income has a potentially truncating effect on the top, and budget woes thereby persist. On this, councilor Lorraine Allen, one of two “yea” votes, says the proposal would enable residents to “shop more, buy more groceries, perhaps be more involved in things that they couldn’t before.” Hence her vote for the program.

Still, the short-lived nature of the pilot is consistent with another of Quinn’s concerns: that a pilot implemented, then taken away, could prove negligibly meaningful. In the town’s 2015 operations approximately C$2.4m was spent on social and family services. Tucked inside these costs were, in addition to unspecified uses, assistance to the elderly, childcare and the social housing expenses which Quinn resents of the 1970s. If the Ontario program follows the recommendation by former senator Hugh Segal (a monthly allowance of C$1,320), the combined cost to eligible individuals could perhaps exceed the town’s existing social and family services expenditures. This mainly reinforces the need for cooperation between municipality and province-level governments to realize success from basic income. Eating the full burden, what Ontario offers is more generous than that. But in order for such a program to live past a test phase, the council of Smiths Falls would first have to heed the needs of its residents – and try.

Thanks to Genevieve Shanahan for reviewing this article.

Cover photo by wyliepoon.

More information at:

AreaScore, “Smiths Falls unemployment,” 2016.

Carol Anne Knapp, “Smiths Falls council reverse the decision regarding basic income,” Care2 Petitions, December 21, 2016.

City-Data, “City data of Smiths Falls,” 2011.

Evelyn Harford, “Basic income pilot project a no-go for Smiths Falls town council,” InsideOttawaValley, December 20, 2016.

Jesse Ferreras, “Ontario basic income should be $1,320 per month, adviser says,” The Huffington Post, November 4, 2016.

Jordan Pearson, “Why a struggling town voted against a basic income,” Motherboard, December 22, 2016.

Kate Porter, “Smiths Falls residents fight for guaranteed income pilot project,” CBC News, December 22, 2016.

Lanark County, “Lanark County and the town of Smiths Falls ten year housing and homelessness plan 2014-2024,” 2014.

Sarah Gardner, “On the Canadian prairie, a basic income experiment,” Marketplace, December 20, 2016.

Statistics Canada, “Census subdivision of Smiths Falls, T – Ontario,” 2011.

The Canadian Press, “Ontario floats idea of guaranteed minimum income to ease poverty,” CBC News, March 14, 2016.

Town of Smiths Falls, “2009 consolidated financial statements,” 2009.

Town of Smiths Falls, “2015 consolidated financial statements,” 2015.

An Interview with Dr. Kate McFarland (Part Two)

An Interview with Dr. Kate McFarland (Part Two)

Earlier in the year, Basic Income News reporter Scott Jacobsen spoke to Basic Income News reporter Kate McFarland about her background and influences. This is a continuation of Part One.

 

You mentioned valuing clarity of writing, for readers to have correct inferences. Any advice for BI writers? That is, those that want clear writing and to avoid the statistical probability of readers making wrong inferences.

That’s a good question. I feel like this is something I do based on instincts from my training in analytic philosophy, especially philosophy of language. It’s hard to codify that—those instincts—right off the bat.

I do want to stress that one thing that’s special about Basic Income News—sorta in our mission statement, as it were—is that we are clear to make the distinction between straightforward factual reporting and opinion pieces. If you just want the facts, you read one of our news reports, and you don’t have to wade through a bunch of the writer’s own analysis and commentary to get to them. You’ll see a lot of writing that conflates opinion and persuasive writing with reporting the facts, in a way not always conducive to the reader being able to figure out exactly what’s going on. Too often the factual reporting seems like an afterthought.

As much as I can, and as much as BI News can, we try to give people the bare facts. We don’t want to gloss them over with a bunch of fluff about what we think about basic income. It is not our job in news reporting. Our job is to disseminate the latest information about the basic income movement. It is not to make every one piece a persuasive one. It is not to write exciting stories, fluff, and propaganda.

I would also urge other writers to stick with primary sources whenever possible. When you use quotes, be sensitive to the context. When you talk about data from experiments or surveys, be sensitive to the design of the study and what you can actually infer from it.

Never, ever selectively misquote or misrepresent information by presenting it out of context! Some people do that, which is why I say always stick with primary sources—the original research reports, the full transcripts, and so forth.

Otherwise, my advice is to learn a lot, do you research from the primary sources, but also read some of the fluffy, superficial, often misleading stories on BI in mainstream media. Pay attention to the awful clickbait headlines. Read the comments sometimes even; notice how people are confused. Let it irritate you. You’ll develop instincts, I think, to write in a way that strives to avoid that. I think it helped me, anyhow.

 

Some things you said suggest mainstream news sources on BI want to persuade one way or another. Does this seem to be the case? It would be in contradiction to journalistic virtues of objectivity and neutrality insofar as they can be achieved.

Well, I see a lot—I see a lot that’s not necessarily to persuade, but where there might be, I think there are, values that conflict with just straightforward objective reporting. It might not be to persuade people on whether to support BI. It might be just to excite people, hook people, or write a catchier piece… As I say, I’m a philosopher, not a journalist; the ideals I have for prose come from there. Maybe journalists want to engage the reader at the expense of laying out the facts in a clear and complete manner. We’re just trying to concisely summarize the facts and make everything as clear as possible.

So, for example, if you read a journalistic report on a sample survey—this has just happened recently—you almost never get the details you want to know in order to really know what conclusions to draw. The sample size, sampling frame, selection method, response rate—you don’t often get all that. I would want to know that. And I don’t really care what a survey says about people’s attitudes on basic income if you don’t give me the details of the questionnaire design. What exactly is being asked? How it is phrased? I want to know all that before I make conclusions; I think you should make that info available to the reader if you’re gonna bother to report on an opinion survey at all. ‘Course, I should say I was a statistician before I became a philosopher.

Another thing is quoting out of context. There was an example that comes to mind—I won’t name names—of a famous basic income advocate being asked his opinion on when BI would actually happen. The gist of what he said was that we can’t predict, but in saying it, he said something like “It could as soon as 5 or 10 years, but it could be much longer.” It was clearly just this fragment of a larger point about how we just can’t know. But then the journalist just quotes him as saying that BI could happen as soon as 5 or 10 years! Just that! Entirely misleading. Entirely misrepresented his point.

A related phenomenon—a sub-phenomenon, maybe—is jumping on any use of the phrase “basic income” and then quoting the speaker as making a point about what you and I and BIEN call “basic income”. But that’s really too hasty. There was a recent case of a famous businessman who allegedly came out in support of UBI—he said he supported “basic income” (or “Grundeinkommen”, being German)—and people in the media just assumed he meant the unconditional thing. Later, he tweets that he didn’t mean the unconditional thing, but by then, the damage is done, as it were.

Sometimes this is [a] tough one, I have to be honest. Maybe, that’s another thing for the advice: If you’re not 100 percent positive someone means basic income when they say “basic income”, then leave what they say in quotes. Say “They said these words…” But don’t necessarily disquote if you’re not sure what they mean. I mean, equivocation on the phrase “basic income” is a whole other issue—it’s becoming a real big thing, I think, with the Canada movement versus US commentators—but maybe we’ll get back to that.

Another example with the reporting, I guess, is just being misleading through superficiality or vague weasel words. Like, to make basic income seem exciting, maybe a journalist will give a long list of countries that are “pursuing” BI or “considering” BI or something—but what does that even mean? Or maybe they’ll talk about a long list of people who “endorse” or “support” it just because they said something vaguely favourable at one time.

Then you see things—I’ve been seeing this a lot lately—like “Finland, Ontario, and Kenya are beginning pilots.” The problem there a little subtler, but you see it? That suggests, I think, that the governments of Finland, Ontario, and Kenya are all planning pilots. Kenya? They must be thinking of GiveDirectly, a private charity based in New York that happens to be operating in Kenya. I think it’s important to keep those private efforts distinct from the government-sponsored ones. That’s an important distinction. It’s one sort of thing you often see just casually elided.

I could go on—those are just some examples off the top of my head—but I hope you get the idea. I think that, with most journalism on BI, it’s about saying the bare minimum to be interesting and provocative—don’t bore readers with too many facts and details and distinctions, maybe—at the expensive of saying enough, and saying things clearly enough, to really give a good and accurate sense, knowledge, of what’s going on in the world.

 

Your background in philosophy at the graduate and doctoral level seems relevant to me. It obviously helps with your clarity, rigour, and simplicity to the point it needs to be to present ideas. For BI, it can come along with different terms and phrases, for different ideas associated with, but not the same as, BI.

Yeah, that’s definitely—that’s a whole ‘nother thing. I try to point to it when it’s relevant. And I try to be consistent in my own terms, and of course to keep my uses consistent with the official definition agreed upon by BIEN—a periodic cash payment unconditionally delivered to all on an individual basis, without means test or work requirement.

The US BIG site actually has a pretty good primer on some of the different terms, and I tend to follow its usage for BI and UBI versus BIG and so on. But sometimes it’s tricky, especially with the BIG versus BI distinction, which you see conflated a lot these days.

“BI” and “UBI” are both often used to refer only to policies where everybody gets a check of the same amounts—no clawbacks with additional earnings—but sometimes people use them more generally to include policies that include what you might otherwise hear called “guaranteed minimum income” or a “guaranteed annual income” or a “negative income tax”; these are policies where everyone’s assured a minimal income floor, unconditionally, but the amount you receive is clawed back as you earn more and more on top of this floor. That’s what Ontario’s almost certainly gonna pilot next. It won’t be everyone in the pilot getting money. It’ll be that everyone’s guaranteed money if their income drops low enough—but, assuming Hugh Segal’s advice is followed, it won’t be the rich people in the sample also getting the check.

But sometimes you’ll see things like “Ontario plans to give all its residents an income boost”—because people hear “basic income”, and elsewhere they hear “basic income” to mean “checks to everybody, even then rich”, and they put two and two together, incorrectly. Sometimes all these policies together are referred to as a “basic income guarantee”, a “BIG”, with the GAI/GMI/NIT and the UBI (or “demogrant” as it’s sometimes called) being different types.

I can see this becoming a real problem—confusing these types of “BIGs”, equivocating on the term “basic income”—for people’s understanding and interpreting past and present pilots, and understanding how they revolve around the current debate, and I do hope to write a full-length article about it in the new year, if it keeps being problematic.

I’m realizing that what I’m talking about is not so much too many phrases for BI—but the term “basic income” being used to mean too many things. That might actually be the bigger problem, in fact, especially in the States. In addition to this equivocation with “does it entail giving money to the rich”, there’s this issue with some people, it seems, thinking that anything called “basic income” by definition replaces the whole rest of the welfare state. But that’s not true. But writers sometimes talk that way, and it leads to confusion and misconceptions.

And there’s also an issue about whether a “basic income” is, by definition, enough to live on. I think writers occasionally go in both ways. They probably sometimes equivocate, which would be bad… There’s been some controversy in BIEN caused by precisely this last concern, in fact. I think you can read about it some in Toru’s report on the controversy about the definition at the last BIEN Congress.

P.E.I., CANADA: Legislature agrees unanimously to work with federal government to set up BIG pilot

P.E.I., CANADA: Legislature agrees unanimously to work with federal government to set up BIG pilot

In a unanimous decision on Tuesday, December 7, the Legislative Assembly of Prince Edward Island (PEI), Canada, agreed to “pursue a partnership with the federal government for the establishment of a universal basic income pilot project” on PEI.

Peter Bevan-Baker CC BY-SA 3.0

Peter Bevan-Baker
CC BY-SA 3.0

The motion was originally proposed by Green Party Leader Peter Bevan-Baker, and received the support of all four political parties in the province, which have been united for well over a year in their support for investigating a basic income guarantee (BIG).

Bevan-Baker drew inspiration from past experiments in Manitoba (the Mincome trial of the late 1970s) as well as the pilot scheduled to begin next year in Ontario. He believes that PEI’s small size — the island has only about 150,000 residents — would make it an ideal setting for an additional pilot study. Hugh Segal, adviser for the Ontario pilot, has also encouraged other provinces, such as PEI, to run their own trials of basic income.

According to Bevan-Baker, a pilot project is necessary “so we can evaluate whether the benefits outweigh the costs” — as quoted in a CBC News report about the successful motion — where the costs, in his view, might include a work disincentive effect as well as financial costs to the government. The main benefit specified in the motion is the reduction or elimination of poverty. However, the motion also mentions many other possible positive effects, including “local economic growth, supporting entrepreneurship, reducing administrative complexity and costs, improving working conditions, reducing crime, improving health, and helping to build vibrant rural communities.” CBC News quotes Bevan-Baker as saying, “A universal basic income could enable the greatest unleashing of human potential ever seen.”

The full text of the motion is as follows:

WHEREAS implementing a universal basic income in Prince Edward Island would significantly reduce or potentially eliminate poverty in the province;

AND WHEREAS a universal basic income would likely have many other positive effects,

including local economic growth, supporting entrepreneurship, reducing administrative

complexity and costs, improving working conditions, reducing crime, improving health, and helping to build vibrant rural communities;

AND WHEREAS all four Prince Edward Island political parties have indicated their support for exploring a universal basic income;

AND WHEREAS the federal government has indicated an interest in exploring a universal basic income;

THEREFORE BE IT RESOLVED that the Legislative Assembly urge government to pursue a partnership with the federal government for the establishment of a universal basic income pilot project in Prince Edward Island;

THEREFORE BE IT FURTHER RESOLVED that Government shall provide an update on the progress of this initiative in every session of this assembly.

The motion is still only an early step toward a basic income pilot in PEI. If the province is to actually implement a pilot, it will require cooperation and support from the federal government. The PEI Department of Family and Human Services has previously issued the following statement:

The Province supports the concept of the Basic Income Guarantee. We have been consistent in our response that any pilot project in this area would require active and committed federal participation. We are always open to partnerships with the federal government to improve the financial well being of the residents in our province.

No specific model for the basic income has been proposed for the (possible) pilot. The Working Group for a Liveable Income — an advocacy group that has been instrumental in promoting BIG in PEI for over a decade — explicitly supports a negative income tax (NIT), in which “if the person receiving BIG gets other personal income, the maximum level benefit will be affected by a reduction rate”. Segal has also recommended an NIT for the Ontario pilot. While ‘universal basic income’ is often used to refer to a universal cash grant with no reduction based on other earnings, in contrast to a NIT (cf. “What is the Basic Income Guarantee?”), it is not certain whether the PEI motion intends the phrase in this sense (which would entail that PEI is pursuing a form of BIG less commonly discussed in Canada).

 

References

Motion No. 83, Legislative Assembly of Prince Edward Island.

P.E.I. MLAs effusive in their support for basic-income pilot project,” CBC News, December 7, 2016.

Kevin Yarr, “’A rare opportunity’ for basic income pilot project on P.E.I,” CBC News, November 23, 2016.


Reviewed by Dawn Howard

Photo CC BY-NC-ND 2.0 Government of Prince Edward Island

BC, CANADA: Green Party advocates five-year Basic Income pilot

BC, CANADA: Green Party advocates five-year Basic Income pilot

Andrew Weaver, a climate scientist and member of British Columbia’s Legislative Assembly for the Green Party, has proposed that the province test a basic income guarantee in one or more of its towns.

Andrew Weaver CC BY-SA 3.0 Ecwiebe

Andrew Weaver
CC BY-SA 3.0 Ecwiebe

Weaver outlined his recommendations for a BC pilot in a report in The Tyee. Rejecting Hugh Segal’s recommendation for a three-year pilot in Ontario pilots as inadequate, Weaver believes that the pilots should run for at least five years (“the amount of time it takes to finish a post-secondary degree”).

He also recommends conducting the trials in towns of 5,000 to 6,000 people, preferably with wide income inequality, and possibly testing different implementation in different towns. Regarding eligibility for the pilot, Weaver says that “a Green government would likely determine eligibility based on the tax year before the announcement is made, thus avoiding an influx of people hoping to opportunistically take advantage of the payments.”

The Green Party of British Columbia won its first seat in the provincial legislature in the 2013 general election, when Weaver was elected to represent Oak Bay-Gordon Head district in the Greater Victoria region. Overall, the Greens received about 8% of the popular vote. The next British Columbia general election will be held on May 9, 2017. Kamloops This Week reports Weaver as declaring that if the Greens were to take office, they would attempt to implement a basic income pilot by the end of the first year. At present, however, this remains a very big “if”.

A series of posts on Weaver’s blog, contributed by Sarah Miller, explore the idea of a basic income and its implementation in British Columbia:

 

References

Andrew MacLeod (November 26, 2016) “BC Greens Pitch a Five-Year Basic Income Pilot Project” The Tyee.

Jessica Klymchuk (November 30, 2016) “Green Leader Weaver visits Kamloops, chides NDP for accepting corporate donations” Kamloops This Week.


Reviewed by Dawn Howard.

Photo (Sandon, British Columbia) CC BY-NC-ND 2.0 Jasperdo 

ONTARIO, CANADA: Public Service Union “Sounds Note of Caution” on BI

ONTARIO, CANADA: Public Service Union “Sounds Note of Caution” on BI

Warren (Smokey) Thomas, president of the Ontario Public Service Employees Union (OPSEU), has issued a cautionary statement against the province’s interest in pursuing a basic income guarantee.

The OPSEU leader’s statement comes in response to the comprehensive report published by Hugh Segal, the lead adviser to the Ontario government’s impending pilot study of a basic income guarantee, which was published on November 3.

Thomas worries that the adoption of a basic income guarantee, which enjoys much of its support from politicians on the right, would be followed with cuts in essential public services:

OPSEU picketing (Toronto) CC BY-NC-ND 2.0 Mary Crandall

OPSEU picketers in Toronto
CC BY-NC-ND 2.0 Mary Crandall

“Basic Income has had the support of right-wingers for decades now because of the expectation that it would reduce the government’s role in providing services, and shift that work on to families and communities. Given the direction the current Ontario government is taking on social services, I think Ontarians have every reason to be skeptical.”

“We support the goals of raising incomes for people living in poverty. We support extra counselling. We support reducing the stigma associated with social assistance. But we aren’t convinced Basic Income will do these things. If anything, it may make people a little less poor, for a little while, until public services end up on the chopping block. I’m worried that this Basic Income is just part of the Liberals’ larger plan to further privatize the province.”

Instead of a basic income guarantee, Thomas supports raising the minimum wage, expanding and increasing existing social assistance programs like Ontario Works (OW) and the Ontario Disability Support Program (ODSP), and maintaining funding for public services.

Segal argues in his report that a basic income should be tested as a replacement for OW and ODSP, which place limits on recipients’ earned income and work participation and thus require extensive monitoring of recipients. OW, for example, requires that recipients demonstrate “financial need” and prove that they are making “reasonable efforts” to obtain employment (in the absence of extenuating circumstances). ODSP requires that recipients document proof of a disability. According to Segal, the main purpose of the pilot is to test the effectiveness of an unconditional income guarantee against what he describes as “broad policing, control, and monitoring” inherent in these programs.

If Segal’s recommendations are adopted, Ontario’s pilot will examine–among other impacts–the cost of administering a basic income guarantee in comparison to OW and ODSP, as well as its relative effectiveness in improving health, education, and workforce participation. Segal also urges that the pilot be designed such that no participant would be financially worse off under the basic income guarantee than under these existing programs.

Thomas’s skepticism is not an unusual response from a progressive critic of basic income. In the United States, for example, anti-poverty researcher and advocate Robert Greenstein (President of the Center on Budget and Policy Priorities) has argued that any politically feasible basic income has a high risk of leaving tens of millions of poor Americans worse off–since, to attract right-wing supporters, the policy would most likely accompany massive cuts in other programs and services (see also Greenstein’s interview in Vox). Earlier in the year, writer and attorney Joel Dodge raised similar concerns about right-wing basic income proposals in an interview with Basic Income News (following up on his article for Quartz on the same topic).

Thomas’s remarks were publicized via a OPSEU press release. The OPSEU represents more than 130,000 employees of the provincial government of Ontario (as reported on its website).

The government of Ontario is currently accepting public feedback on Segal’s report, both online and via in-person meetings, until January 31, 2017.

Reference

OPSEU sounds note of caution on Basic Income plan” (OPSEU Press Release from November 18, 2016).


Article reviewed by Genevieve Shanahan

Top photo: OPSEU at Toronto Pride Parade, CC BY-NC-SA 2.0 David Allan Barker