UNIVERSAL BASIC INCOME
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magine a world in which you were guaranteed $2,000 per month, regardless of your work status or other income. Where everyone from a working single mother of three to Drake and Justin Bieber receives this $2,000 monthly cheque. This is the premise of Universal Basic Income (UBI). A fixed wage or payment, given to each citizen regardless of work status, health, wealth, or other criteria, to provide a foundational income to cover fundamental needs. While this may seem like an impossibly grand idea, UBI has become a topic of hot debate in recent years. In fact, late last year, two bills to establish UBI were brought before the
Canadian Federal House of Representatives and the Senate. This was inspired by the Canadian Emergency Response Benefit,which was established in response to the COVID-19 pandemic and has demonstrated that UBI is achievable. So, what is the debate? Proponents of UBI advocate for its ability to streamline social security services, address health problems associated with poverty and break the cycles of dependency on social assistance. This gives people who are experiencing financial downturns the time, confidence, and ability to climb the economic ladder. Theoretically, UBI would abolish poverty, reduce human suffering, and reduce the costs of poverty on
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society. On the other hand, opponents criticize that UBI is too costly, is an invitation to laziness, and withdraws resources from other settings such as infrastructure and health. Currently, no single state has adopted a continuous program of UBI. Multiple countries, including Canada, Kenya, Uganda, Germany, and Finland have conducted smaller scale trials. The most comprehensive study to date occurred in Finland and aimed to evaluate the effects of UBI on income and employment. The study reported a small, but not significant (p=0.08) increase in the willingness to accept work or to increase hours of work. The largest benefits from UBI were the reduction in use of other govern-
ment funded services and benefits accessed by participants and that participants felt more confident in their own future, financial situation, and ability to influence social matters. Recently a small pilot study occurred in Ontario which aimed to examine the impact of basic income on a range of socioeconomic health inequalities including food and housing security, mental health, health and healthcare usage, education, employment, and labour market participation. The study commenced in April 2018 under the Wynn government and was expected to continue for three years. 4,000 residents from Hamilton, Thunder Bay and Lindsay between the ages of 18 and 64 re-
ceived $16,989 per year, with a 50 cent reduction for every dollar earned through paid work. The study was estimated to continue for 3 years but was cancelled early in 2019 when the Ford government was elected, citing an extraordinary cost for taxpayers, and in what is possibly the most extraordinary cost of all, no official data was collated or released. A small team of researchers surveyed 200 of the participants and found that 80% of participants reported increases in overall health and mental health, while 86% reported decreased anxiety. Furthermore, 46% of participants reported increases in housing accommodation and 57% reported an increase in ability to pay rent. Investigators
