Last Thursday, Victoria City Councillors voted on endorsing the Union of BC Municipalities (UBCM) resolution to explore Universal Basic Income (UBI) in British Columbia.
Mayor Marianne Alto introduced the motion as a continuation of a resolution made by the previous council in 2016.
The concept of a guaranteed basic income for all Canadians traces back to the Croll Committee’s report in 1971.
The Macdonald Commission’s 1986 report further advocated for guaranteed income, proposing radical changes instead of marginal adjustments.
UBCM intends to present a resolution at their next annual general meeting, urging provincial and federal governments to implement UBI.
The goal is to ensure everyone meets their basic needs, reducing poverty and homelessness, and easing the burden on municipalities dealing with gaps in the social safety net.
Victoria council’s motion aligns with national efforts supported by various municipal associations.
These associations aim to implement similar provincial programs, as seen in Prince Edward Island, and secure federal funding to support these initiatives across the country.
Councillor Marg Gardiner was the only one to vote against the motion.
She questioned the evidence supporting guaranteed income, referencing her late husband’s involvement in the Dauphin project as a professor of economics at the University of Manitoba.
Gardiner expressed concerns over unproven statements within the motion.
The Dauphin, Manitoba experiment, known as MINCOME, ran from 1974 to 1979. Designed to address rural poverty, the program guaranteed an annual income of 16,000 Canadian dollars, indexed to the cost of living.
While social assistance beneficiaries experienced little change, the working poor, elderly, and single males saw significant benefits.
Evelyn Forget’s 2011 study on the Dauphin experiment highlighted health improvements due to guaranteed income. Hospitalization rates dropped, mental health improved, and high school completion rates increased.
However, the high costs of the program led to its eventual downfall, with inflation and unemployment driving expenses beyond initial estimates.
Councillor Susan Kim highlighted a common critique of UBI, which is the potential disincentive to work. She recounted debates during her time in the political science department at UVic.
Despite concerns, Kim stressed the importance of ensuring people can afford essentials like rent and food, leading to long-term health benefits.
The MINCOME experiment was unique due to its “saturation” site design, allowing every family in Dauphin and its surrounding rural municipality to participate.
Initial funding expectations of $17 million with a 75% federal contribution proved insufficient as costs soared. Despite being seen by some as an economic failure, the experiment remains a significant social science effort in Canada.
Another significant UBI experiment in Canada began in 2017 when Ontario’s Liberal government launched a three-year pilot project in Hamilton.
Although the project was canceled in 2019, an independent study by McMaster University labor researchers, funded by the Social Science and Humanities Research Council, found significant benefits.
Participants experienced fewer healthcare visits, improved mental well-being, and better job opportunities.
These mixed outcomes will be further evaluated at UBCM’s AGM in September. Municipalities often face the immediate consequences of poverty, with their limited resources strained by the need to provide social services.
A federal cost-sharing UBI could potentially ease these pressures, offering a more sustainable solution for local governments.
The push for UBI reflects a broader recognition of the need to address economic disparities and support residents’ well-being. By ensuring a basic income, it is hoped that individuals can lead healthier, more secure lives, ultimately benefiting society as a whole.
The debate continues, but the potential for positive change remains a driving force behind these efforts.
