by Andre Coelho | Jan 24, 2018 | News
The province of Quebec, in Canada, has been fostering conversations around basic income and even, at a certain point in 2016, has appointed a long-time supporter of basic income, François Blais, as Minister of Employment and Social Solidarity. Although the term “guaranteed minimum income” has been used in an indiscriminate fashion ever since 2014, there has never been an actual mandate for Blais to implement basic income in Quebec.
In fact, what is being implemented in Quebec at the moment differs considerably from a basic income, as defined by the Basic Income Earth Network (BIEN). According to Dorothée Boccanfuso, Chair of Quebec’s Expert Committee on Guaranteed Minimum Income, the new plan’s definition is presented as “any system that offers a guarantee of monetary resources for all, with the amount of those resources being related to a minimum threshold”. This expert committee has been tasked to make recommendations to François Blais, on income support, having produced a report. The proposed scheme has, therefore, kept existing social security system’s properties of means-testing and incentives to work, the latter strengthened through “a greater reward be provided for work efforts, through a major increase to the work premium”.
The enhanced economic support scheme is intended to widen its coverage, aiming at defining a “benchmark threshold”, a means-tested minimum guaranteed income to support “persons with no employment restrictions, for persons 65 and over and for people with disabilities”. There has been, clearly, an effort to cover more people with social support, trying to fill in the gaps and effectively reduce poverty levels, but still not embracing unconditionality. As the Expert Committee on Guaranteed Minimum Income puts it:
“The Committee wants a society that is free of poverty, but this wish can only be achieved by helping persons who are able to re-enter the labour market, pursue education and training or, more generally, better integrate into society. In the Committee’s view, poverty is not a status, but rather a situation and those who are in it must be helped to get out. The income support system must guarantee the minimum resources required for vulnerable persons to meet their immediate needs. Above all, it must eliminate barriers preventing these persons from escaping poverty.”
So, the social security program sought is not an unconditional basic income. However, some media sources are portraying it in misleading headlines such as “Quebec to offer basic income for 84000 people unable to work” and “Basic income to be given to 84000 people in Canada”. One the other hand, a few anti-poverty groups have clearly criticised the support scheme, calling out for a true unconditional support system. According to Serge Petitclerc, representing the group Collectif pour un Quebec sans pauvreté, the “guaranteed minimum income (…) should be unconditional and it should apply to the entire population”.
More information at:
Kate McFarland, “Quebec, Canada: Liberal Party’s Ideas Forum to address Minimum Income”, Basic Income News, September 18th 2016
Stanislas Jourdan, “Québec, Canada: Minister of Employment appointed to work on basic income”, Basic Income News, February 4th 2016
Yannick Vanderborght, “Québec, Canada: Minister of Employment for the provincial government reiterates his support for basic income”, Basic Income News, July 17th 2014
Loulla-Mae Eleftheriou-Smith, “Basic income to be given to 84000 people in Canada”, Independent, 11th December 2017
Karina Laframboise, “Quebec to offer basic income for 84000 people unable to work”, CBCNews, 10th December 2017
Malcolm Torry, “What’s a definition? And how should we define Basic Income?”, BIEN Congress in Lisbon, 2017
by Genevieve Shanahan | Apr 9, 2017 | Research
Carlos Rodríguez-Castelán, a senior economist for Poverty and Equity Global Practice at the World Bank Group, has written a policy research working paper analysing conditional cash transfer programmes. Such conditional policies provide cash transfers to households only if they meet requirements – such as school attendance or health checkups – thought to be beneficial in terms of poverty alleviation. The intention is that poverty is addressed in two ways: through the cash payment in the short term, and through the “human capital formation” realised through the conditions in the longer term.
A worry, however, is that the poorest households are excluded from such programmes, as they are the least likely to be able to meet the conditions of the transfer:
“Because targeted transfers are usually conditioned on the consumption of normal goods, richer eligible households are more likely to consume more educational and health care opportunities than poorer ones. Thus, the eligible poorest households may benefit least from conditional cash transfers even to the extent that they may not participate at all.”
Of particular relevance to the question of basic income (defined as universal, individual, and unconditional) is the finding that, for governments that care about how poor the poorest are, rather than merely the proportion of residents who are classed as poor, “unconditional cash transfers may be preferable over conditional cash transfers”.
Carlos Rodríguez-Castelán, “Conditionality as Targeting? Participation and Distributional Effects of Conditional Cash Transfers,” World Bank Group, January 11, 2017.
Reviewed by Cameron McLeod
Photo: Receiving cash transfer payments, CC BY-NC-ND 2.0 World Bank Photo Collection
by Guest Contributor | Dec 8, 2016 | Opinion
Written By: Pierre Madden
It is Voltaire who quipped that the Holy Roman Empire was neither holy nor Roman nor an empire. I am convinced that Basic Income will be implemented in the next decade. By its definition, BI is universal, individual and unconditional. However, none of these features will be a part of BI as it first materializes.
A universal demogrant is just too expensive to contemplate, except in Alaska where oil revenue is distributed to every man, woman and child. Giving the same amount to everybody only to claw it back in taxes from most, while philosophically pure, flies in the face of common sense. That is why all serious proposals are structured as a negative income tax (NIT). In fact, there are already features in the Canadian federal and provincial fiscal systems that function as NIT with regular cash transfers.
The basic unit in our society is the family. Statistics are kept by households. An individual is no more than a couple divided by the square root of two. This is in part just the common-sense recognition of the economies of scale of collective living. It is not four times as expensive to live as a family of four than to live alone, only two times (i.e.: cost of living alone times the square root of four). In Québec, two individuals sharing an apartment would each receive $623 per month for a total of $1,246. At some point, the government will consider them to be living in a “common law marriage” and cut the benefits to $965 in total (the government does not follow the square root rule). The fact that you do not sleep together or that you are siblings is not a defence. Across the board individuality would raise the problem of “the banker’s wife.” The banker is very rich but his wife who benefits from his wealth has no income of her own and would therefore qualify for any income subsidies. Of course, it has been argued forcefully that these women are often trapped in their gilded cage, unable to escape an abusive marriage, for instance.
Finally, governments are reluctant to abandon conditionality of benefits, a paternalistic remnant of the distinction between deserving and undeserving poor. A liberal democracy’s commitment to providing everyone with a quality education, for example, is not paternalism but the recognition of a basic right. This right is expanding to include people in their late twenties and early thirties as jobs for this generation disappear and those that are left require more qualifications. All non-health-related government benefits today are based on the condition of job seeking. The benefits themselves must in no way compromise the incentive to work. Part of the justification for this is economic, the fear that wages will skyrocket, profits will plummet and the economy will collapse if no one is willing to work anymore. Another part is ideological; education and work are seen as developing and preserving “human capital.” Government wisdom rather than individual freedom decides how that is defined.
While I am optimistic that Basic Income will see the light of day in my lifetime, I am prepared to accept an imperfect version and leave to future generations the task of improving it.
Author biography: Pierre Madden is a zealous dilettante based in Montreal. He has been a linguist, a chemist, a purchasing coordinator, a production planner and a lawyer. His interest in Basic Income, he says, is personal. He sure could use it now!
