Is Canada getting Universal Basic Income (UBI)? It’s a question on the minds of many, given the global conversations around income security.
While there isn’t a nationwide UBI in place yet, there have been several significant moves that suggest Canada could be paving the way towards this shift.
To help you understand where Canada stands on UBI, we’ve compiled 7 key developments that paint a picture of the current landscape and future possibilities.
Whether you’re curious about the progress made so far, or interested in the potential implications for your personal financial situation, keep reading.
1. Pilot Programs as a Testing Ground
Canada has already experimented with UBI through pilot programs. The most notable among these was the Ontario Basic Income Pilot, which ran from 2017 to 2018.
The program provided up to $17,000 per year for single individuals and $24,000 for couples.
The objective was to study the impact of providing a basic income on the lives of participants, specifically their health, education, and employment status.
While the program was terminated prematurely due to a change in the provincial government, it provided valuable insights into the potential benefits of UBI.
A report on the pilot found that participants experienced improvements in their mental health, were able to afford healthier food, and felt more socially included.
Some even pursued education and started new businesses.
2. Advocacy and Public Support for UBI
UBI has been widely discussed and advocated for by a variety of groups in Canada. These include politicians, academics, poverty alleviation organizations, and even tech entrepreneurs.
This growing support is an indicator of the shift in public sentiment towards UBI.
One particular instance that stands out is the open letter to Prime Minister Justin Trudeau in June 2020, signed by over 50 senators.
The letter urged the government to transform the temporary COVID-19 support measures into a lasting, nationwide basic income.
Public opinion also seems to be aligning with this advocacy. A survey conducted by the Angus Reid Institute in 2020 found that 59% of Canadians were in favor of a universal basic income as a strategy to help Canadians facing economic insecurity.
The increasing advocacy and public support for UBI is a significant factor that could influence the government’s decision on implementing such a policy.
While it doesn’t guarantee UBI’s implementation, it does add pressure on policymakers to seriously consider it as a part of Canada’s social security system.
3. COVID-19 and UBI
The COVID-19 pandemic has brought the concept of UBI into sharper focus in Canada.
With many Canadians facing job losses and financial insecurity, the government introduced temporary measures to provide financial support.
The Canada Emergency Response Benefit (CERB) was a key part of this response.
CERB, which offered $2,000 per month for up to four months to those affected by the pandemic, was not a UBI in the true sense.
It was a temporary measure with specific eligibility criteria. But it did give a glimpse into how a UBI system might function on a large scale.
The pandemic has highlighted the precarious nature of many jobs and the financial vulnerability of a significant part of the population.
In many ways, it has accelerated the conversation around UBI and its potential role in providing a safety net for all citizens.
The experience with CERB and the ongoing economic uncertainty caused by the pandemic could play a significant role in shaping Canada’s approach towards UBI in the future.
4. UBI and Automation
One of the reasons UBI is being seriously considered is the rise of automation and artificial intelligence (AI). With advancements in technology, there’s a growing concern that many jobs, particularly those involving routine tasks, could be automated away.
In fact, a study by the Brookfield Institute suggested that around 42% of Canadian jobs are at risk of being affected by automation in the next two decades.
This could lead to significant job displacement and income insecurity.
UBI is seen as a potential solution to this looming issue. By providing a guaranteed income, it could act as a safety net for those whose jobs are automated away, while also providing them with the flexibility to retrain or pursue new opportunities.
The threat of automation and its potential impact on the job market is a significant factor in the UBI debate in Canada.
As technology continues to advance, this issue will likely remain a key consideration in discussions around UBI.
5. Economic Considerations
Implementing a UBI involves significant economic considerations. It’s an expensive proposition and requires careful thought on how it will be funded.
Will it require higher taxes, cuts in other areas of public spending, or a combination of both?
Economists have varied opinions on the potential impact of UBI on the economy. Some argue that it could stimulate economic growth by boosting consumer spending.
Others caution that it could lead to inflation or disincentivize work.
The Parliamentary Budget Officer (PBO), an independent, non-partisan office that provides cost estimates for policy proposals in Canada, estimated that a nationwide UBI similar to the Ontario pilot program could cost about $76 billion a year.
Economic considerations are a critical part of the UBI discussion.
Policymakers will need to weigh the potential benefits against the costs and consider how to fund such a program in a sustainable manner.
6. Impact on Social Assistance Programs
An important aspect of the UBI conversation in Canada relates to its potential impact on existing social assistance programs.
If a UBI is implemented, what happens to these existing programs? UBI is often viewed as a replacement for current welfare systems.
The idea is to simplify and streamline social assistance by providing a single, unconditional payment instead of numerous targeted ones.
However, some argue that UBI should not replace but supplement existing programs.
They assert that certain targeted supports, such as disability benefits or housing assistance, may still be necessary to address specific needs.
The question of how UBI would interact with existing social assistance programs is a complex one.
It’s an issue that would require careful consideration and detailed policy design if Canada were to move forward with UBI.
7. The Future of UBI in Canada
While there’s a growing interest in UBI in Canada, it’s important to note that the country is not yet on the brink of implementing a nationwide UBI scheme.
The discussions and pilot programs, while significant, are part of an ongoing exploration of the concept.
It’s unclear what the future holds for UBI in Canada. The momentum seems to be building, as evidenced by the advocacy efforts and public support.
However, due to the complex and multifaceted nature of UBI, it requires careful consideration and extensive planning.
The future of UBI in Canada will depend on a variety of factors, including political will, public opinion, economic circumstances, and the outcomes of further research and pilot programs.
For now, it remains a topic of intense debate and study.
Moving Forward with UBI in Canada
As the conversation around UBI in Canada continues, it’s essential for citizens to stay informed and engaged.
Whether you’re a supporter of UBI, a skeptic, or simply curious, understanding the nuances of this complex issue is key.
The future of UBI in Canada will be shaped by ongoing discussions, further research, and continued experimentation with pilot programs.
As a citizen, your role in this process can involve staying abreast with the latest developments, participating in public consultations when possible, and engaging in constructive dialogue about UBI.
Remember, the discussion around UBI isn’t just about economics or policy—it’s about envisioning the kind of society we want to live in.
So, continue exploring, questioning, and learning as we collectively navigate the potential future of Universal Basic Income in Canada.
