by Kate McFarland | Oct 8, 2016 | News, Research
The Canadian Centre for Policy Alternatives (CCPA)–a national independent research institute studying issues related to social, economic, and environmental justice–recently released two reports on basic income:
– David Macdonald (October 5, 2016) “A Policymaker’s Guide to Basic Income“
– Alex Himelfarb and Trish Hennessy (eds) (October 6, 2016) “Basic Income: Rethinking Social Policy“
David Macdonald, a senior economist at CCPA, considers two general types of basic income policies (defining a “basic income” as “a ‘no strings attached’ transfer from government to individuals or families”): a universal basic income, in which cash transfers of equal value are distributed to all Canadians regardless of income, and a negative income tax, in which benefits are tapered so that the poorest Canadians receive the full amount while the richest Canadians receive nothing.
For each of these two general approaches, Macdonald simulates four different scenarios, which vary according to the amount of the basic income and which (if any) existing programs are eliminated. He then analyzes, for each scenario, the effect on poverty reduction (for children, adults, and seniors), the consequences for net earnings across income groups, and the cost of the program to the government.
Based on his analyses, Macdonald concludes that basic income programs that replace all current welfare programs in Canada would result in “dramatically higher levels of poverty”. Even at relatively high levels of the basic income, a policy that eliminates Canada’s pension program would require “ethically and politically unsupportable compromises where seniors are pushed into poverty to lift up adults and children” (p. 8). Thus, he believes that the preferred approach, should the Canadian government pursue a basic income, would be to introduce the basic income guarantee in addition to existing programs. Moreover, Macdonald favors the negative income tax approach, as opposed to universal cash transfers, due to NIT’s lower cost and comparative effectiveness in reducing poverty.
Press coverage of Macdonald’s report tended to emphasize his point that basic income is not a “silver bullet” against poverty (see, e.g., reports in The Star, CTV News, and Huffington Post).
Alex Himelfarb and Trish Hennessy provide an edited volume of twelve short essays (not including their own introduction to the volume), which encompass a variety of viewpoints on both the benefits and limitations of basic income.
In a series of essays in the first half of the volume, proponents of basic income lay out several cases in favor of the policy–invoking (in different contributions) such considerations as homelessness, seasonal work and cyclical unemployment, and the social and economic determinants of health. Other contributions are more critical, although rarely opposed to basic income (at least in its progressive variants). For example, Jennefer Laidley critically assesses whether a basic income can really alleviate poverty, and Margot Young discusses limitations of basic income with respect to the difficulties faced by lone mothers. Michael Mendelson points out differences between right and left proposals of “basic income” and urges Canadians not to blindly consent to any program that bears the name, preferring a gradual approach to a progressive basic income. Louis-Philippe Rochon and Toby Sanger, meanwhile, argue that the government should focus its attention on full employment–which, while not incompatible with a basic income guarantee (as they admit), is a goal they believe should take precedence.
The CCPA was founded in Ottawa in 1980 by faculty Carleton University. Since this time, the organization has expanded, now holding branch offices in other cities and provinces, including Vancouver, Winnipeg, Regina, Halifax, and Toronto. While officially nonpartisan, the CCPA has been described as “left-leaning” and describes itself as “one of Canada’s leading progressive voices in public policy debates”.
Reviewed by Dawn Howard
Photo: “Toronto Homeless” CC BY-NC 2.0 Anton Bielousov
by Kate McFarland | Sep 27, 2016 | News
The Canadian Initiative for Basic Income has created an online petition asking Prime Minister Justin Trudeau and members of the Canadian Parliament to “implement a basic income program for eligible Canadians in a timely manner”. As of Monday, September 26, the petition has gathered nearly 22,000 signatures.
The petition was developed last spring by a group of participants in the Leadership and Community Engagement training of North York Community House (NYCH). To conclude the training, participants were asked to select one important practicum issue and to develop an action plan to generate change within the community. As one member ofCanadian Initiative for Basic Income described in a blog of the NYCH, the idea originated in a class exercise that required attendees to use one of several tools to determine the priority of issues. The group selected a two-by-two matrix that measured importance against urgency:
Out of all, we deemed basic income to be the one with both the highest urgency and most importance. This was due to our belief that our existing income security system in place has become ineffective when it comes to helping people afford life’s basic necessities – food, housing, and other general expenses (“NYCH Participants Lead Basic Income Petition”; September 12, 2016)
Although originally designed just to fulfill a class exercise, the petition gained over 15,000 signatures in the first week alone–with signatories coming from across the nation. In light of the petition’s success, the Canadian Initiative for Basic Income decided to continue the project, developing a more detailed proposal to submit to the government of Canada (which the group eventually hopes to have translated into French).
The full text of the letter (sans footnotes) reads as follows:
Dear Prime Minister Trudeau and Members of Parliament,
As Canadians in poverty, we are calling for strengthening the income security system with the adoption of a Basic Income policy. Our petition for Basic Income has generated over 20,000 signatures from across Canada.
The sharp surge in basic living expenses, added to a large wealth and income gap, precarious work, stagnant wages, and diminishing social services is forcing Canadians to live with ever poorer access to basic necessities and the mental and physical deprivation that accompany this way of life. Currently, over 4.9 million Canadians are living in poverty. A report by Statistics Canada lists Canada as having one of the highest percentages of low-paid workers among industrialized nations.
Existing federal and provincial income security programs have not achieved their intended goals, as evidenced by their failure to provide vulnerable recipients with the ability to afford basic living needs such as adequate housing and food. These needs are basic human rights, as set out in The International Covenant on Economic, Social and Cultural Rights, ratified by Canada on May 19, 1976. Yes, that was four decades ago and we refer to; Part 3, Article 11.
We believe that a basic income policy in tandem with the existing income security system will be the most effective way of providing Canadians living with poverty the ability to afford basic living expenses. There is a rich history behind Canada’s existing income security system, and though some reform may be necessary for a basic income policy to be adopted, dismantling the existing welfare system would be dangerous and may leave those that already live in poverty in a similar or worse state.
A basic income program will cost Canada just over 1% of its GDP. This level of spending is within Canada’s means. We strongly believe that Canadians can afford this relatively modest expenditure, given the scope of the proposed policy and the significant benefits it will provide. Basic income will pay for itself in numerous ways; by decreasing healthcare costs, reducing social problems, boosting the economy, and providing low income Canadians with secure and productive job opportunities.
Basic income experiments are already being carried out in various European countries – but such experiments are not unique to Europe. The Croll Report, published under the Trudeau government in the 1970s put basic income policy in a favorable light, and the corresponding pilot program implemented in Dauphine, Manitoba yielded successful results. We are calling on your government to reintroduce Basic Income and move forward with its adoption. A basic income policy will not just mean upholding Canada’s human rights values and obligations, it will reduce poverty and create a more equitable, inclusive, and sustainable society that will benefit every Canadian.
Sincerely,
Canadian Initiative for Basic Income
Feroza Mohammed is the lead coordinator for planning and organizing the group’s activities to move the petition forward. She comments on the inspiration and values behind this work:
We do believe that the existing income security system in place has become ineffective, by way of providing assistance that is unsustainable. People are struggling to meet their basic daily living expenses for food, housing, accessible services, transit, and good jobs, as recommended by residents through local community consultations, across the City of Toronto. I believe that a Basic Income is necessary to improve the living standards for the most vulnerable population within our society. Currently there are about twenty percent, or approximately five million people in Canada living in poverty. To quote from comments on the petition, “Poverty should not exist in Canada”. This resonates with my belief, and I hope the government will act to implement a strong Basic Income policy that will improve lives for all Canadians. A basic income will provide people with the ability to afford life’s basic necessities.
Reza Hajivandi, the lead policy research and analyst behind the petition, adds:
We believe that the time for the reform of income security is overdue. Current programs are not providing people with the basic resources to survive, let alone live in dignity. In this light, a Basic Income policy could be the right step to take. A BI would not only provide people with resources to live a dignified life, but it can also reduce the discriminatory surveillance mechanisms and other conditions that are prohibiting recipients from achieving their aspirations and goals in life. A BI would also act to create and extend solidarity amongst people. However, with all the positive impact of BI, we need to be very careful about how or what we dismantle from the existing system. This system is the culmination of many years of thinking and history, and without first having a thorough understanding and discussion of its history and design, notions of wiping out certain components or wiping the whole slate clean can be counterproductive and unhelpful to the basic income and larger social justice movement.
Created on the Change.org platform, the Canadian Initiative for Basic Income petition is not an official e-petition of the Canadian government. Thus, the petition is not en route to be presented in the House of Commons, and the government has no formal requirement to take any action in response. However, as Change.org points out in describing its function, “When hundreds or even thousands of people raise their voices about an issue they care about, the message is very hard to ignore.”
Read–and sign–the petition here.
Thanks to Feroza Mohammed and Reza Hajivandi for contributions to this article.
Photograph: Canadian Initiative for Basic Income.
Thanks, as always, to Kate’s supporters on Patreon.
by Roland Duchatelet | Sep 19, 2016 | Opinion
Social security emerged in Western Europe with voluntary solidarity contributions within labour unions in the late 19th century developing into a mandatory insurance contribution organised by the state in 1950. A mandatory insurance payable to the state is a tax, in this case a tax on labour. Because the employer pays all if it, it does not matter if legislation categorises it as employee’s contribution or employer’s contribution.
In addition, the 20th century saw the birth of a new type of tax: the income tax, designed to capture the total income of wealthy people. However, after 1950 the income tax started to hit the rising incomes of the working class. It became the second component of the tax on labour. Zero in 1930, insignificant in 1950, the total tax on labour is now by far the most important tax income for Western European states. It varies between 50 to 200 percent of the net labour income of the workers, making the cost of labour on average twice as high compared to what the worker gets.
The history of its creation explains why social security is linked to labour participation. The political class assimilates “job creation” to welfare: the more people work, and the longer they do, the more taxes are paid and the better for the state budget. This thinking induced many countries to increase the age of retirement. Obliging older people to work longer when there is a five-fold increase of unemployed young people waiting for a job, is absurd. It is an example of wrong collective thinking by people indoctrinated by the “Labour Church”, because they assume “full employment” is still possible.
In the cultural sector, the high tax on labour is a problem. We can watch fantastic artists for free on television. High taxes on labour increase the wage cost of artists. Most local performances cannot compete unless they get subsidies, which is now current practice in most Western European countries. Would it not be more straightforward to have no taxes and no subsidies in the cultural sector?
Education and healthcare are heavily subsidised in many countries to cover the cost of their employees including the tax on their labour and other expenses. Their net finances would be the same if taxes on labour would be set to zero and subsidies lowered with the same amount.
Same for services completely paid by our tax money like police, justice, the military, federal and local administration: the labour tax cost included into the payroll expenditure of the state is paid and collected by the state, the same wallet. Setting their labour tax to zero would not affect their net finances.
In Western Europe, 40 to 50 percent of employment is publicly funded which means the corresponding labour tax has no effect on net state receipts.
For a state, the real proceeds of labour tax come from the non-subsidised private sector. Hence, the proceeds are much lower than what policymakers are tempted to believe while looking at public accounts which provide gross rather than netted labour tax income figures.
Meanwhile, the high tax on labour effectively increases the cost of services for those who want their shoes, a washing machine or a bike to be repaired. Mind that the “Labour Church” does not allow citizens to trade services. Services should be acquired from service companies because allowing citizen’s to work for each other by exchanging services would be unfair competition to the firms selling such services.
These firms charge a labour cost at least twice as high as what their workers get, because of the tax on labour. This higher price obviously reduces the demand for repair services and many people try to paint their house themselves, maintain their garden themselves and their kids drive bikes without proper lights or brakes. The tax on labour reduces exchange of services, hence it reduces the creation of wealth in the proximity economy.
In Western Europe, the labour Church created this barrier to social inclusion by segregating contractual labour from voluntary and informal work. Helping each other in an informal way, like our grandparents did, is not permitted anymore: the labour tax collectors are chasing offenders. However, poor people can get help from subsidised workers if they successfully find and convince the right state personnel that they are really poor. Clearly, the economic religion put in place by the “Labour Church” does not empower the population to help each other.
Would it not be more effective to convert the directive, complex, fraud-prone and costly social security allowance system into its basic income equivalent and allow the social economy to thrive again by allowing people to work for each other in an informal way, like our ancestors did until 50 years ago?
by Kate McFarland | Sep 13, 2016 | News
The Centre justice et foi (CJF, “Center for Justice and Faith”), a Montréal-based center for social analysis, is hosting public discussions on basic income on September 27 and 28.
The goal of these discussions is to shed light on common questions surrounding basic income and related policies. One important issue to be addressed is the difference between the policies typically called universal basic income (UBI) and guaranteed minimum income (GMI). Under a guaranteed minimum income, all individuals are eligible to receive an unconditional “top-up” of their earnings to guarantee that their total income is above a certain threshold (such as the poverty level). Receiving the top-up would not be conditional on working or looking for work. However, in contrast to the way in which UBI is commonly described, the payouts of a GMI would be “clawed back” with higher earnings. Individuals above a certain income level would not receive the GMI. (Depending on the accompanying tax policies, a UBI and GMI could result in an identical income distribution.)
Much of the discussion surrounding “basic income” in Canada has centered on GMI: the much cited Angus Reid poll, released in August, asked specifically about a GMI; Hugh Segal’s latest remarks indicate that the pilot in Ontario will investigate a GMI. Notably, this was also the type of policy tested in Dauphin, Manitoba in the oft-referenced Mincome experiment of the late 1970s.
Other questions to be addressed include the following:
- Would the implementation of such a policy justify cuts to important social programs?
- How would the policy impact the private sector?
- What consequences would a UBI or GMI have on the job market?
Although perhaps eclipsed by Ontario in media coverage, Québec has also shown considerable interest in basic income (or guaranteed minimum income), and might be moving toward testing or implementing such a policy. Earlier in the year, François Blais was appointed as Québec’s Minister of Employment and Social Solidarity and tasked to work on developing a guaranteed minimum income plan for the province.
The first CJF event will be held on Tuesday, September 27 in the Cultural and Environmental Centre Frédérick-Back in Québec, and feature three speakers: Sylvie Morel (Professor of Industrial Relations at Université Laval), Serge Petitclerc (political analyst and spokesman of the Collective for a Poverty-Free Quebec), and Eve-Lyne Couturier (researcher at the Research Institute of Socioeconomic Information).
The second event will take place the following evening at Montréal’s Bellarmine House. Petitclerc and Couturier will again be participating, in addition to Marie-Pierre Boucher (Professor of Industrial Relations at Université du Québec en Outaouais).
See the event flyer for details concerning the time and location. Both are free, although a donation is suggested.
Reviewed by Cameron McLeod
Translation help from Jenna van Draanen and Denny Flinn
Photo CC BY-NC-ND 2.0 Meriol Lehmann
Shout out to Kate’s supporters on Patreon
by Guest Contributor | Sep 12, 2016 | Opinion
Basic Income Québec (RBQ) and the French Movement for a Basic Income (MFRB) had been preparing for the World Social Forum (WSF) event for almost a year. Their efforts paid off – the activities organized by the France-Québec team were an unmitigated success. For the first time ever, basic income achieved prominence at WSF, reflecting the growing worldwide interest in the idea.
A successful opening march with basic income robots that did not go unnoticed
The six members of the MFRB delegation teamed up with their counterparts of RBQ in order to organize several initiatives centered on basic income at the WSF in Montreal.
A wild workshop, a prelude to the Create-a-thon planned for Tuesday, August 9th, led to the creation of two robots (a concept developed by the MFRB local group of Lyon) along with signs and ponchos for the opening march taking place that day in Montreal, from Lafontaine Park to the Place des Arts that attracted about 15,000 people.
Marcus Brancaglione, Brazilian guest from the ReCivitas association, joined the jubilant “gang” of dozen-or-so activists who merrily spread the word about the program for the week, inviting passersby to come and take part in the workshops, conferences and debates.
The robots attracted quite a bit of attention. They were a big hit…or as the co-founder of RBQ (Luc Gosselin) put it, they “made a splash,” using a Quebec expression. They served as a rallying point throughout the week.
On the morning of August 10th, the group took possession of the two rooms that were graciously provided by the University of Quebec in Montréal (UQAM), enabling them to welcome more than two hundred motivated participants during the three days (excluding the Grand Conference).
Create-a-thon. Eighteen hours of creation. Fourteen stories from around the world.
The creation marathon was organized by the RBQ team. This two-and-a-half day event began with Lenny Watson’s presentation on the first Create-a-thons organized in San Francisco, Los Angeles and Finland.
Following an exchange between participants, an idea emerged. Inspired by a participant’s story about her mother, they began collecting stories of people they knew and explaining how a basic income would change their lives.
They started filming the next day. Aurélie Hampel handled video while Louise Allaire did the scripting and by day’s end 14 stories had been made, thanks to the many people who dropped by. Each told their story, stories from around the world, in their own language: in English, French or Portuguese.
On Friday, Aurélie and Louise pulled out the key themes and words from these stories. They were grouped into five chapters.
The following themes were chosen:
A basic income… when life is merciless
A basic income… to find one’s place in life
A basic income… in case of extreme poverty
A basic income… freedom to choose your own path in life
A basic income…to provide end-of-life care for loved ones
Teaser: https://youtu.be/wpKPSuSmZT4
All videos will be available on the MFRB YouTube channel, by the International Basic Income Week.
Ğeconomicus
The goal of the Ğeconomicus workshops was to promote the idea of changing our money system to bring about basic income without getting mired in politics and to start changing our debt-money-induced behaviour.
Carole Fabre and Damien Vasse hosted two game sessions, testing different monetary systems through card-playing. To sum up, each player exchanged cards with others to form squares. Each square represented a created value and was accounted for with a piece of candy (a new candyless version is possible. See website).The number of created value was tallied up at the end.
Human lifespan was introduced to test monetary exchange systems while keeping the same markers introduced in the Théorie relative de la monnaie by Stéphane Laborde.
With two and a half hours set aside for each workshop, they changed the rules and reduced human lifespan to 60 years as well as the duration of each round of play. They then played using a monetary system based on debt–today’s current system – and using a monetary system based on basic income and open money. Other systems could also be tested, such as barter and mutual credit, but they were unable to do so due to time constraints.
This game helps us understand how the structure of the monetary system affects our behaviors and exchanges.
Debt-money is boisterous and full of competition, trickery and knavery. With open money, tensions subside after two rounds, cooperation emerges and the ambiance changes. They were able to set aside over half an hour at the end of each workshop for a post-game discussion and debate. It was very rewarding each time, as people became aware of the debt-money trap and the unbelievable power of banks. With basic income in money creation, people saw that it was still possible to create value, but with a different behavior.
Co-creating our basic income using open money is finally possible, thanks to Duniter, an open money generator that took four years of work by developers and coders to make it fully operational. Now that it has proven successful in computer simulations, it is ready for the real world. The game provides an opportunity to show people that the system works and that it is up to us to make it happen.
Convergence Assembly: From realistic utopia to public policy
The two convergence assemblies were developed and facilitated in cooperation with Pierre Barbès and Gilles Charest, sociocracy experts at l’École Internationale des Chefs. The aim was for these meetings to be as inclusive as possible and to make people aware of the working methods we used by the MFRB, with a focus on sociocracy.
Right, Pierre Barbès,speaker and author, certified in sociocracy and community spirit development.
The conference ended with a round table giving everyone a chance to share what they gained from the workshop.
Convergence Assembly: “Income: A non-medical remedy?”
The idea for the assembly came from the Forum’s Health Space Committee, which two members of Basic Income Quebec took part in. The committee consisted of Quebec health professionals. RBQ wanted to ensure that one of the determinants of health – income – would be discussed and that everyone knew about the proven efficiency of basic income in areas where pilots had been conducted. Committee members were very receptive to the idea, as many of them were already familiar with the concept of basic income.
RBQ considers it as an important strategic step in Quebec. The group would like to see Quebec health professionals adopt a position in favor of basic income, just like their English Canada counterparts, both within their organizations and individually. The English group played a key role in the Ontario government’s decision to launch a basic income pilot, which is currently being developed.
The meeting reflected the keen interest in basic income by people from different countries who are primarily concerned with health, either as professionals or as citizens. Various courses of action were suggested.
Workshop: “On the Equitable Sharing of Wealth: Considering a Universal Basic Income and Maximum Wealth”
Many people pre-registered for this workshop as soon as it was announced, and it drew an at-capacity crowd. Wealth-sharing is an issue that has been addressed in various ways at the Forum. A universal allowance (or basic income) is an often-mentioned way to perform this sharing function in our societies. Maximum wealth has the same goal, but is less present in the public space. As a result, the majority of participants came to the workshop with a better grasp of basic income than maximum wealth. The similarities between the two ideas generated a lot of interest and lively debate with both facilitators, Alexandre Chabot-Bertrand and Christian Jobin. The exchanges continued long after the workshop had ended.
Grand Conference: Basic Income, a Major Social Innovation for the 21st Century?
Watch the conference video: https://youtu.be/tEumE1N1E0Y
The activities were concluded with a grand conference attended by nearly 500 people on the evening of Friday, August 12th. The speakers, each from a different country and approaching the issue of basic income from different perspectives, made quite an impression by their presence, their passion for the issue and their humor.
The conference began with a video from South African partner, Nkateko Chauke, Basic Income Grant Campaign Coordinator for the SADC (South African Development Community, which includes fifteen countries ranging from Tanzania to South Africa)
The conference began with a video from South African partner, Nkateko Chauke, Basic Income Grant Campaign Coordinator for the SADC (South African Development Community, which includes fifteen countries ranging from Tanzania to South Africa), who unfortunately was not able to attend. Watch the video here.
Rutger Bregman, Dutch journalist and author who recently published his book, Utopia for Realists: A Case for a Universal Basic Income, Open Borders, and a 15-hour Workweek, led off the discussion by addressing basic income from a labor perspective
Rutger Bregman, Dutch journalist and author who recently published his book, Utopia for Realists: A Case for a Universal Basic Income, Open Borders, and a 15-hour Workweek, led off the discussion by addressing basic income from a labor perspective. He questioned the moral imperative to work in a world that promotes the creation of what David Graeber calls bullshit jobs, referring to those pointless jobs, both for the people performing them and for society as a whole.
Karl Widerquist, from the United States and co-chair of the Basic Income Earth Network (BIEN), then spoke about the three successive waves of basic income in our history
Karl Widerquist, from the United States and co-chair of the Basic Income Earth Network (BIEN), then spoke about the three successive waves of basic income in our history. A first wave took root in the twentieth century (although the idea had already been discussed by the likes of Thomas Paine or Thomas More), especially in the Anglo-Saxon countries with advocates such as Bertrand Russell, George Henry and Virginia Woolf. The arguments at the time dealt primarily with principles of social and agrarian justice. The second wave emerged in the 1960s, with basic income being championed mainly by civil rights activists – Martin Luther King being the most eminent example. We are now in the third wave, which calls into question the current system, the conditionality of social welfare and our response to the changing nature of work. These changes have led to a wider acceptance of the idea, with more and more people showing an interest for it, including politicians and journalists.
Marcus Brancaglione, president of the ReCivitas association, presented the project being conducted in the town of Quatinga Velho in Brazil since 2008
Lastly, to demonstrate the potential of basic income, Marcus Brancaglione, president of the ReCivitas association, presented the project being conducted in the town of Quatinga Velho in Brazil since 2008. Marcus Brancaglione views basic income not just in terms of a pilot project but as a fundamental human right because he believes that poverty exists in society only because we allow it to. Brazil is the first country to have it enshrined in its Constitution as a long-term goal. The time has come to implement it.
The three speakers were very well received by the very engaged and enthusiastic audience. Hundreds of hands were raised throughout the discussion, as a lot of people wanted to ask questions and to share their thoughts on what a basic income would mean for them.
All these wonderful, diversified and varied initiatives helped spread the word about basic income throughout the world, clearly marking this year’s edition of the World Social Forum in Montreal.
Thanks to all those who helped make this event a success for basic income around the world!
The MFRB-RBQ organizing team: Aurélie Hampel, Carole Fabre, Christian Massault, Damien Vasse, Nicole Teke, Sylvie Denisse, Luc Gosselin, Louise Allaire, Lenny Watson and Sylvia Bissonette.
Article translated from French into English by Didier Di Camillo.
