Canada can afford a basic income

Paul Walsh published an article in the Winnipeg Free Press on March 15, 2021. Reproduced below is the un-edited version. Enjoy.

PAUL WALSH: Leaving behind my grandmother and his two daughters in rural Ukraine, my grandfather came to Canada over 110 years ago. Approximately 2 years later, in 1912, they joined him on McPhillips Street in Winnipeg where he had acquired 2 acres of land. Four more children later he lost his job because of his participation in the 1919 Strike.

To use a term of the time, the family was “dirt poor”. However, few of the personal problems relating to poverty burdened them. They were members of the Babrover Free Loan Society, and attended weekly meetings on Selkirk Avenue because immigrant families supported each other. So, my grandparents retained their dignity, self-respect, together with a sense of security, and optimism. They were a happy family.

Today, Canada, together with other first world nations, has developed a class system with the result that too many Canadians who live in poverty are not members of happy families. To a very considerable extent their needs are not addressed as an entity. Rather, both government and not-for-profit institutions have classified, segmented, and distorted assistance into discrete categories.

My argument is that the creation of a menu which classifies and focuses on aspects of poverty, and the specific insecurities that flow from it, skewers the single true problem – poverty – and avoids addressing it at its root.

One hundred and ten years after my grandfather emigrated to Canada approximately 28% of Manitoba families live in poverty and have no food, housing, clothing, or other security; both government and anti-poverty programs, together with the bureaucracies that run them, obligate the poor to trade their dignity and self-respect for inadequate assistance.

Food banks, shelters, child poverty, and other categories and subcategories obscure the single problem – which is, not having enough income to live a life with respect and dignity. Dividing poverty into discrete components subverts a solution, which is the provision of sufficient funds to those in need, so that the recipients, not the do- good agencies, are then able to make choices to provide for their basic needs.

If persons in need are provided with a basic income, and with it, the power to choose for themselves, we will eradicate poverty as a class, and with it a substantial component of its social, economic, and political stresses. That does not mean to say that we will solve all of society’s problems. Canadians will continue to need help to deal with a myriad of problems and issues; but poverty in strictly economic terms, and in its most obvious and dramatic face, will be substantially alleviated.

The facts, particularly in Manitoba are stunning.

Manitoba has the highest rate of child poverty in Canada at 31.6%. This is 12% above the national rate. Approximately 38,600 Manitobans work for minimum wage and another 73,700 earn only 10% above the minimum wage. This means that over 100,000 Manitobans, despite working, are living on or at poverty wages.

It is not merely the number of people living in poverty that is distressing but the extent of that poverty. People living in poverty in Winnipeg earn incomes that are 32% below commonly used poverty lines. More than half of all children in female lone-parent families live in poverty. 26% of all single adults live in poverty. 11% of all seniors live in poverty.

According to the Winnipeg Street Census 2015 there were at least 1400 people experiencing homelessness in Winnipeg on the night of October 25 2015. This number does not include people in institutions, including emergency placement by Child and Family services.

The most recent report on food bank use in Winnipeg discloses that 42,595 people accessed food banks in March 2017.

In 2017 there were 85,450 children in Manitoba living in poverty. In 2018 this increased to 87,730 children.

In Canada as a whole, one in 7 Canadians live below the poverty line. This is about 5 million of us with over 1 million being children. According to UNICEF, on a list of 35 developed countries Canada ranks 24th when it comes to preventing poverty by our children. 900,000 Canadians are using food banks every month and over 1/3 of those are children. It is estimated that one in 7 children goes to school hungry every day. In addition to those who have no food security, over 4,000,000 Canadians do not have decent, affordable housing. The best estimates are that over 30,000 people are on the street on any given night while another 50,000 near-homeless stay with friends or relatives.

The problem has been identified. The question that must be answered is: how good a Samaritan do we have to be to our fellow citizens who are in need? Is it enough to have a food bank in place of food security? Is it sufficient to have an overnight shelter in place of housing security? Is clothing from a second hand store the only answer? And finally, should even welfare payments be conditional on meeting the demands of a social worker? The alternative to these segmented solutions, which do not add up to anything approaching sufficiency, is a basic income guarantee which would ensure everyone will receive income sufficient to meet basic needs and live with dignity regardless of work status.

Basic income would eliminate poverty as a status or category, since everyone would have the security of regular direct unqualified income to meet basic needs. It would not solve all problems, but it would eliminate poverty.

And Canada can afford basic income. A recent study from the Office of the Parliamentary Budget Officer, an independent and highly respected arm of the federal Parliament, determined that the gross cost of basic income in Canada would be 76 billion dollars. However, since various existing payouts would be subsumed into a program of Basic Income the net cost to the federal government would be 43 billion dollars. And, there would be a further savings to the provinces by the elimination of social welfare allowances. This reduces the national cost as estimated by Evelyn Forget in her seminal text “Basic Income for Canadians”, to approximately 23 billion dollars, which she points out is the annual cost of the Canada Child Benefit.

Canada does not need further narrow transfer programs with intrusive conditions and rules, and highly stigmatizing consequences. Presently, we are able to afford government payments to each and every person who is of retirement age. We call those payments, old age pensions – not old age welfare. So, we can do the same for each and every adult citizen, and those who do not need the assistance would return the money, as the payment would be taxed. Then, we all, each and every one of us, could be as happy as my grandparents.

We’re all better off when everyone can afford to live.

Paul Walsh speaks about basic income on CJOB amid the COVID-19 pandemic

“A new survey by Probe Research this week has found that a majority of Manitobans favour bringing in a universal basic income” – Listen to the full interview held on May 10, 2020 above.

Universal basic income offers stability during crisis

Sid Frankel publishes a timely coronavirus related article in The Winnipeg Free Press.

Evelyn Forget talks about her new book on TVO

Under the former Liberal government, Hamilton, Thunder Bay, and Lindsay were test cities for a basic-income pilot. Eligible citizens were offered a guaranteed annual income. The idea was to check on how the participants’ lives changed after three years, then decide whether to take the plan provincewide. Subsequently, the new PC government cancelled the pilot. The Agenda welcomes Evelyn Forget, who’s spent four decades researching this subject, much of which is captured in her new book, “Basic Income for Canadians : The Key to a Healthier, Happier, More Secure Life for All.”

See: https://www.tvo.org/video/the-case-for-basic-income

BIM supports MP Leah Gazan on Basic Income Pitch to Feds

August 10, 2020 – Basic Income Manitoba (BIM) wishes to congratulate Member of Parliament for Winnipeg Centre Leah Gazan on the private members motion she has developed to encourage the federal government to convert the Canadian Emergency Response Benefit into a Guaranteed Livable Basic Income on a permanent basis.

The pandemic and its economic effects have revealed the inadequacy of Canada’s income support programs to provide all Canadians with the security that they need to live dignified fulfilled lives.

“A guaranteed livable basic would remedy this to the benefit of Canadian society and its economy,” said Sid Frankel, board member of Basic Income Manitoba.

“Basic Income Manitoba is pleased to work with Manitoba members of parliament from all parties to encourage adoption of a basic income. It is what Manitoban’s want and need. A Probe Research poll released in May, 2020 found that 62 per cent of Manitobans support introducing a universal basic income,” said Paul Walsh, chairperson of Basic Income Manitoba.

Gazan plans to file her motion in an upcoming hybrid session of parliament, set for August 12, 2020. The motion also calls on the federal government to work with provincial and territorial governments and Indigenous peoples to implement a permanent basic income

For more information please contact:

Sid Frankel
Board Member, BIM
204-295-3749
Sid.Frankel@umanitoba.ca

Paul Walsh
Chairperson, BIM
204-781-3930
paulwalsh@scotiainvestmentsltd.com

Winners of the BIM essay contest

Announcing the 2020 BIM essay contest winners:

Secondary School Category

  • First Place: “Basic Income; Replacing Fear With Hope” by Heidi Jean, Maples Met School
  • Second Place: “Basic Income: Breaking the Cycle of Poverty and Achieving Dreams” by Aiyanna St. Cyr, Kelvin High School
  • Third Place: “Basic Income: What it Could Mean for Me” by Jascha Petersen, River East Collegiate

Post-Secondary Category/b>

  • First Place: “Basic Income, what could it mean for you?” by Maria Sytnick, Faculty of Social Work, Université de Saint-Boniface
  • Second Place: “Basic Income, what could it mean for you?” by Delaney Coelho, Department of Political Studies, University of Manitoba
  • Third Place: “The Case for a Universal Basic Income” by Ava Glendinning, School of Music, Brandon University

Read the essays here:

Special thanks to the 2020 BIM essay sponsors:

James Mulvale writes a letter to the Winnipeg Free Press – Re: Pallister gives cabinet ministers marching orders for new session

“With a secure economic floor provided by an adequate and unconditional basic income, people have a better chance to secure decent jobs, finish education and training, or start businesses … The Progressive Conservative government might look at the platforms offered by the NDP, Liberal and Green parties in the 2019 provincial election. All three parties argued for a version of basic income, and the proposal of the Green Party was particularly detailed and well thought out.”
Read the full letter by James Mulvale at The Winnipeg Free Press.

Basic Income Manitoba thanks The Winnipeg Free Press

Basic Income Manitoba is excited to announce that the Winnipeg Free Press is partnering with us in the sponsorship of an essay contest, the details of which will be announced in the newspaper in the Saturday edition on February 15th. Leading up to the announcement there will be display ads in the paper on January 25, February 1, and February 8.
The essay contest will challenge participants to educate themselves about basic income and explain how it might contribute to a fairer, safer, and more secure life for all Canadians.
Essays should be 400-1000 words in length. The entry can be written in any genre. Criticism of basic income is encouraged.
The winning essays will be published in the Winnipeg Free Press.



Paul Walsh Speaks About Basic Income on CBC

Visit CBC for the original interview.

November is Financial Literacy Month

Debunking myths about low income and money management

Paris

​Financial literacy is not only important for financial well-being, it’s also important for the overall economy. Knowing the basics of money management is just as essential today as numeracy and literacy, says the Government of Canada.

One of the common myths of basic income is that those living in poverty continue to be in poverty because they don’t know how to properly manage their money. Critics claim basic income would be useless in helping low income poeple rise about the poverty line because they don’t know how to budget.

MYTH: People are poor because they don’t know how to manage their money

People living in poverty can be the best money managers. Living on a shoestring budget forces people to make smart decisions about how they should be spending their cash. Not having enough money to pay for basic needs like food, housing, and electricity forces people to make tough decisions about what they’re willing to sacrifice.

Hugh Segal was quoted in an article in the Globe and Mail saying, “They say that poverty is complex. I say: Well, it’s not. The actual reality is [that these families] don’t have enough money to pay for clothes, heat, an apartment, and transportation. There’s this notion they’re all sitting at home with bon-bons watching the soaps — 70 percent of Canadians beneath the poverty line have jobs. They just don’t earn enough to meet cost of living.”

A basic income would give people financial security and freedom to decide how they should spent their money.

Financial Empowerment Resources

Drop-In Services, Community Financial Counselling Services
Manage Your Money Workshops, SEED Winnipeg
Access to Benefits, SEED Winnipeg
Get Your Benefits, Winnipeg Harvest
Access to Benefits, Society for Manitobans with Disabilities
Financial Empowerment, Prosper Canada

Basic Income in the News

Economic analysis of child benefit bolsters case for national basic income – The Star
Corporate tax cuts no answer to India’s economic ill, Nobel laureate Esther Duflo – Business Today
A Californian city gave some residents $500 a month, no strings attached. Here’s how they spent it – Vox
It’s time for politicians to take food insecurity and poverty seriously – The Star

Stay in Touch

Send us feedback on this newsletter, or other contributions you want share with our community. To submit news, events, or other items of interest, please contact communications specialist, Hannah Owczar, communications@basicincomemanitoba.ca