Finance Minister Crystia Freeland’s financial update surprised observers with plans to forge ahead with spending.
The path she outlined involved some kind of national day care accessibility, $70 billion to $100 billion stimulus, continued climate change plans, and plans for some sort of guaranteed income.
These were surprising since the pandemic is still with us and will likely be an issue for the rest of 2021. The surprise led to speculation of a snap election call.
What better platform than the promise of money?
In reality, the Liberals needed to show they still plan changes and to fulfil promises from the last election as they haven’t been able or willing to come through on some, like electoral reform.
A plan to guarantee income is the most contentious of these announced items.
The idea of a universal basic income has been around for years. Politicians have flirted with the idea but never walked down the altar. Backlash from voters fearing that a universal basic income would erode people’s work ethic has stopped them — that and the money needed.
The Central California City of Stockton, population, 311,000, has a pilot universal basic income program. About a year ago the city chose 125 families and pays them $500 a month with no strings on how or where to spend the money.
The program, shepherded by 29-year-old Mayor Michal Tubbs is funded from private sources, no taxpayer dollars.
When the program started the mayor says his biggest concern was that recipients would lose their interest in work or blow the money on frivolities.
In a recent television interview the mayor said his fears were unfounded.
The people receiving $500 a month have been prudent money managers; spending on items like dentures, taking time off work to look for a better job and buying food or paying utilities.
Forty per cent are buying food with healthier food choices that are now affordable.
The food buying indicates that minimum wages are insufficient to live on and allows the argument that a universal basic income subsidizes businesses taking advantage of low minimum wages.
From this pilot program, one can assume that universal basic income won’t destroy the work ethic for most people, likely no more than social assistance does.
Analysts observing the program suggest such a plan would reduce the bureaucracy involved in current programs for low income people.
Universal basic income plans have support from some interesting sources.
Prominent technology billionaires — Mark Zuckerberg of Facebook and Tesla’s Elon Musk — both support these programs. Their support is based on the fact millions of jobs will be or have been replaced by robots.
Putting money into the hands of people will keep the consumer-driven economy running and is, according to them, a simple and elegant solution.
Perhaps the day of the universal basic income has come just as public medical care came to Canada in the 1960s.
Ron Walter can be reached at ronjoy@sasktel.net
The views and opinions expressed in this article are those of the author, and do not necessarily reflect the position of this publication.
