by Hilde Latour | Dec 23, 2017 | News
On October 30th 2017, the Canadian Association of Social Workers (CASW) released a position paper recommending a Universal Basic Income Guarantee (UBIG) of $20,000 for all individuals, regardless of income. CASW’s UBIG fulfils the definition of a Basic Income. CASW argues that a UBIG is superior to a Negative Income Tax, which is being tested in other experiments (1).
CASW argues that a universal demogrant model, or UBIG, is “a cost-effective and socially responsible mechanism through which Canada can ensure dignity for all”.
CASW states there have been many federal promises to end poverty in Canada over the past 30 years, in many different forms, including Canada’s support for the United Nations’ Sustainable Development Goals which specifies the need to “end poverty in all its forms everywhere”. Yet in 2016, 4 million Canadians (12.9%) were living in poverty and child poverty rates even increased between 1989 and 2013.
According to CASW, conditional and heavily monitored programs are insufficient and expensive. The combined income support-related expenditures of all federal, provincial, and municipal levels of the Canadian government cost just over $185 billion. Furthermore, their implementation causes a great deal of stress given their unreliable nature, with individuals reporting stress brought on by stigma, marginalization and feelings of disempowerment and hopelessness.
CASW claims that “current social assistance systems in Canada are inadequate and contribute to a cycle of poverty”.
Poverty is a well-known social determinant of physical and mental health. CASW illustrates this with several UBI-related examples from Canada:
- a difference of more than 20 years in life-expectancy between the high-income and low-income population in Hamilton, Ontario;
- a reduction of 8.5% on hospitalization during the Mincome basic income pilot project in Dauphin, Manitoba (2);
- people between 55 and 64 years of age are 50% more likely to experience food insecurity compared to seniors 65 years or older who receive the Old Age Security pension.
From CASW’s perspective, the strengthening of Old Age Security (OAS) and the introduction of the Canada Child Benefit were solid steps towards realizing a UBIG in Canada. Programs like the OAS, which are universal in nature and have few eligibility criteria, are quite inexpensive to operate. In 2013, the total cost of operating the OAS program was 0.3% of the total annual program cost. In contrast, the total administrative cost of Employment Insurance, a program with a high degree of gate-keeping and extensive eligibility criteria, was 8.1% of the total annual program cost.
According to CASW, this cost-saving potential is a fundamental strength of the UBIG which would operate under significantly fewer operational and administrative costs than, for example, a negative income tax model.
CASW further argues that the so-called “benefit trap”, that makes the adoption of part-time work unattractive and is often used to argue against a basic income guarantee, in fact only exists within the negative income tax model. Therefore, the true benefits of a basic income guarantee cannot be realized within the negative income tax model which has formed the basis of all of the pilot projects run so far in Canada.
In addition, a universal demogrant model involves significant benefits to the middle classes giving it a wider support base compared to a program that only targets low-income households. It will therefore have more likelihood of success.
CASW recommends a UBIG of $20,000 per year with the possibility of additional fully-remunerated casual, part-time, or full-time employment. Individuals with disabilities would receive an extra $6,000 tax free per year. The UBIG should replace only traditional welfare or social assistance programs – not all existing social programming. One’s net income will then be taxed according to progressive tax brackets. This model encourages participation in the labour market.
Notes
(1) – A Negative Income Tax does not pay an unconditional income to every individual. Instead, it tops up earnings below a threshold, and charges tax on earnings above the threshold. The administration of a Negative Income Tax poses more challenges than the administration of a Basic Income.
(2) – This is a significant amount considering the Canadian Institute for Health Information in 2014 put the total health expenditure in Canada as upwards of $200 billion.
More information at:
Colleen Kennelly, “Universal Basic Income Guarantee: The Next ‘BIG’ Thing in Canadian Social Policy”, Canadian Association of Social Workers (CASW), October 2017
Picture: Two sides of the same Loonie … (10/100), Jamie McCaffrey, CC BY-NC 2.0
by Micah Kaats | Dec 22, 2017 | News, Research
Recently, there has been a great deal of attention paid to the changing nature of work. From rising automation to the ever-expanding gig economy, the effects of shifting labor landscapes are being felt by governments, businesses, and workers around the world. A new report from Deloitte, a global consulting firm, in partnership with the Human Resources Professionals Association, wades into this discussion with an analysis of the Canadian workforce. In addition, the report offers an array of potential public policy responses to address disruptive trends in the labor market including a shorter workweek, flexible education pathways, and a basic income.
In the report, authors Stephen Harrington, Jeff Moir, and J. Scott Allinson provide analysis based on interviews with 50 leading experts, as well as a review of the relevant literature. The authors argue that Canada is on the verge of an “Intelligence Revolution” that will be shaped by three dominant trends: machine learning, increasing computing power, and automation. These “waves of disruptive change” are already being felt in the Canadian economy, and their effects will become increasingly significant over the next decade.
Specifically, the report identifies two overarching themes that have already begun to impact labor markets. First, as work becomes more decentralized, workers are increasingly finding themselves in temporary or contingent jobs. These “contingent workers” bring their skills to specific projects or tasks, moving on when the task is completed, and work for multiple companies simultaneously. These arrangements form the basis of the gig economy. Second, the researchers argue that automation is opening up new opportunities for collaborative work between machines and humans. While automation can cause job displacement in the short term, the researchers contend that new job opportunities will continue to arise as productivity increases.
However, the report also notes that individuals and institutions seem ill-prepared to adapt to the rapidly increasing pace of change. In Canada, the number of contingent workers has grown from 4.8 million in 1997 to 6.1 million in 2015. Today, approximately 1/3 of Canadian jobs are for contingent workers. However, temporary positions still pay 30% less on average than permanent positions, and private sector pension plans only cover 24% of the Canadian workforce. At the same time, while 41% of organizations have “fully implemented or made significant progress in adopting cognitive and AI technologies”, only 17% of business leaders report feeling ready to manage a workforce of robots, AI, or humans working side-by-side (p. 17).
In response, the report’s research team offers several suggestions. Eight job archetypes of the future are presented, and individuals are advised to develop “future-proof” human-centered skills in judgment, leadership, decision making, social awareness, systems thinking, and creativity. The report also recommends integrated partnerships between businesses and educational institutions to enable workers to meet the needs of a changing labor market.
However, the researchers also note that efforts by individuals and businesses alone will not be sufficient for Canada to “emerge as a winner in the Intelligence Revolution.” To this end, policy reforms must be adopted to reflect both the challenges and opportunities of a 21st century economy. Among these recommendations are a shorter workweek, increased consumption taxes, decreased income taxes, unemployment insurance, and a renewed commitment to immigration. Additionally, basic income is offered as a means to address rising automation. The researchers suggest that basic income may ease the strains of job displacement, provide support for individuals engaged in volunteer or social enterprises, and encourage entrepreneurial risk-taking.
You can read the report in full here.
by Faun Rice | Nov 23, 2017 | News
Ontario Basic Income Network delegates. Credit to: Lindsay Advocate.
On November 4th 2017, the Ontario Basic Income Network (OBIN) held its annual meeting in Lindsay, Ontario, Canada. Lindsay is one of the sites of the Ontario basic income pilot project, with approximately 2,000 residents registered in the experiment. Delegates at the November 4th meeting unanimously passed “The Lindsay Declaration for a Progressive Basic Income.”
The Lindsay Declaration draws from human rights outlined in the United Nations Universal Declaration of Human Rights and the Canadian Charter of Rights and Freedoms. It also highlights what it considers the benefits of basic income and the momentum built by the Ontario government’s three-year basic income pilot (ongoing).
The Declaration proposes nine principles to guide basic income policy. These state that basic income must be promoted as justice rather than charity, and as abundance rather than austerity. The principles further assert that basic income must be reliable, based on cost of living and protected from creditors. Finally, the Lindsay Declaration supports basic income that does not preclude a “comprehensive social security system,” and that aligns with progressive “personal and corporate taxation.”
After the meeting, delegates voiced their intention to use the Lindsay Declaration as a tool for basic income advocacy across Canada. The Declaration has received attention from regional news and social media.
More information at:
The Lindsay Declaration
Basic Income Canada Network endorsements
“Ontario delegates pass ‘Lindsay Declaration’ on basic income,” Kawartha Lakes This Week, November 7th 2017
Roderick Benns, “‘Lindsay Declaration’ on progressive basic income passed by delegates,” The Lindsay Advocate, November 7th 2017
“Town of Lindsay chosen to host basic income pilot program,” Global News, October 12, 2017
by Jason Burke Murphy | Nov 14, 2017 | News
By Jason Burke Murphy
On October 3rd, the Social Work Department at the University of Manitoba held a Symposium on the Mincome Experiment conducted in Dauphin, Manitoba in the 1970’s. This included presentations by the Director of the Mincome Experiment in the 1970’s, Ron Hikel.
The resources from the Mincome Symposium held at the University of Manitoba (including the two papers presented and an audio clip of Ron Hikel’s interview with UMFM) have been posted on the Faculty of Social Work website.
The symposium featured Ron Hikel, who was Director of the Manitoba Basic Annual Income (Mincome) Experiment. His paper is linked here: Piloting Basic Income in Canada: Lessons from the Past, Possibilities in the Present.
Shortly after the symposium, Hikel also conducted an interview you can find here. Wayne Simpson, Greg Mason, and Ryan Godwin, of the Department of Economics at the University of Manitoba also wrote this paper: The Manitoba Basic Annual Income Experiment: Lessons Learned 40 Years Later.
The conference was moderated by Jim Mulvale and Sid Frankel of the Faculty of Social Work at the University of Manitoba.
More information at:
David Calnitsky, “‘More Normal than Welfare’: The Mincome Experiment, Stigma, and Community Experience”
Evelyn Forget on The Legacy of Mincome & other Basic Income Experiment
Jenna van Draanen interview
Claire Bott, “Evelyn Forget/Northern Institute publish new report on BIG”, Basic Income News, August 1st 2017
Kate McFarland, “Overview of Current Basic Income Related Experiments (October 2017)“, October 19th 2017
by Ashley | Jul 28, 2017 | News
Pictured: Sam Haque, founder of Wise Media, social entrepreneur in Canada. Credit to: Steve Russell, Toronto Star
Mowat Centre Report shows how basic income can be a transformative support network for social entrepreneurs to solve society’s deeply entrenched issues. An online platform could help do this. Of course, HostiServer the best for websites trying to project a strong online presence could be useful. Moreover, the report suggests a thriving social mission ecosystem can be an outcome of basic income that be integrated and measured in ongoing pilots.
Canada is one of many countries leading the world in the new stage of paradigm shift politics by piloting universal basic income in its communities. Anchor institutions have been weighing in on special topics for researchers to consider as basic income pilot projects are ongoing. For example, University of Toronto’s Mowat Centre recently published a report titled, Basic Income Examining the Potential Impact of a Basic Income on Social Entrepreneurs. Authors Michael Urban and Christine Yip highlight the three main pathways basic income may impact social entrepreneurs, including by:
- “Reducing barriers to entry into social entrepreneurship, thereby helping create a more diverse and representative social entrepreneurship community.
- Enabling social entrepreneurs to build their organizations and their own capacities by adding to and improving their skill sets.
- Helping to protect social entrepreneurs against illness and provide the psychological space required for social innovation to occur by reducing individuals’ financial stress and anxiety”
A basic income could help derisk social entrepreneurship “for those whose life circumstances have reduced their ability to absorb the potential downsides of risk-taking.” Poverty as a whole costs Canada between $72 billion and $84 billion annually. A snapshot of experiences of historically marginalized populations in Canada include:
- Indigenous Peoples (including First Nations, Métis, and Inuit peoples) are overrepresented among the population of people experiencing homeless in Canada
- The United Nations has called housing and homelessness a national emergency in Canada
- The cost of socioeconomic disparities in the healthcare system account for 20% of all healthcare spending
- One third of food bank users were children in 2016
- 20% of families of color are experiencing poverty compared to 5% of white families
- All seniors receiving the Guaranteed Income Supplement live below the most basic standard of living in Canada calculated at $18,000 per year, whereas seniors receive about $17,000 per year
While precarious employment has increased by 50% in Canada over the past two decades, Mowat Centre posits that universal basic income can empower historically marginalized people to be social entrepreneurs. More importantly, the report suggests empowering this population is particularly important as they can use their lived experience with some of society’s most deeply entrenched social issues to recommend new models of living that are more sustainable and equitable for future generations.
Due to these new policy and economic structures supported by social entrepreneurs, this would lead to a paradigm shift in social interactions that would introduce new ways of thinking and co-existing:
“A basic income could help to shift society from a system where an individual’s worth is determined by the amount of money they earn to one where individuals earn esteem through the ways they choose to use the money to which everyone is automatically entitled. When conceived in this basic way, a basic income represents a validation of every individual’s inherent worth and, by extension, a validation of and support for their freedom to choose the life path that they see as most appropriate for them and the contributions they make to society in doing so.”
By helping to potentially further support role models and community leaders making positive impacts in their neighborhoods, a basic income is able to make social entrepreneurship a more appealing and viable career path. This may attract a critical mass of people to integrating principles of social entrepreneurship into their ways of living, beyond their career. A basic income can help sustain social entrepreneurship by providing financial protection from unexpected losses in income. Another positive effect is bolstering the holistic health and wellness of a social entrepreneur by reducing stress and anxiety created by financial insecurity and instability. Chronic stress and anxiety can lead to chronic illnesses such as depression, cardiovascular disease, obesity, and diabetes among others. Living with anything like this can be hard for anyone, especially if they are not sure how to deal with it. It then comes as no surprise to find that some people may have checked out sites similar to https://www.canadacannabisdispensary.co/product-category/edibles/ (as medical marijuana products are known to have relaxing properties) in the hopes of finding alternative ways of managing how they are feeling.
Particularly among historically marginalized populations, these chronic illnesses are disproportionately prevalent, which adds to how, under the current structure, they experience increased barriers to social entrepreneurship. By alleviating these stressors, a basic income could be a pathway in healing historical trauma and inequities between classes of people. It could also allow people to access options like CBD pills without worrying as much about the potential finances.
However, the Mowat Centre also mentioned a list of outcomes from a basic income that social entrepreneurs and ongoing pilots should consider to create the necessary supports to ensure this social ecosystem can thrive:
- Allocate additional resources from basic income to expanding sufficient support system for social entrepreneurship to ensure accessibility to career pathway and mitigate amount of well-intentioned, but ultimately unproductive business models and innovations
- Consider incentives for cross-sector partnerships in social entrepreneurship to prepare the broader political, economic, and social infrastructure in communities to absorb the potential increase in effort by empowered social entrepreneurs to fulfill their missions
- Ensure sufficient accountability mechanisms through adoption of universal impact measurement practice, training/coaching, and peer-mentoring for social entrepreneurs to achieve quality and standard metrics that are customized to their business model to support the monitoring of outcomes and social impact
- Consider social entrepreneur wage and labor policies to ensure equity between employer, employees and volunteers
- Consider ongoing measurement of social impact in the field based on lived experience of historically marginalized populations to ensure that basic income is not assumed to have solved social issues like poverty or barriers to social mobility, but rather there are metrics to offer ongoing evaluation of status of social issues to inform innovations
More information at:
American Psychological Association, “Understanding chronic stress,” July 2017
Canada Without Poverty, “Just the Facts,” July 2017
Laurie Monsebraaten, “Basic income hailed as way to give people chance to chase their dreams,” Toronto Star, 25th May 2017
Michael Crawford Urban and Christine Yip, “Basic Impact: Examining the Potential Impact of a Basic Income on Social Entrepreneurs,” Mowat Centre, May 2017
