Pre-Budget Consultations 2021 Re: the Need for Basic Income During and After Post-Pandemic Recovery

Submission: Pre-budget Consultations 2021 Re: The need for basic income during and after post-pandemic recovery

Dear Deputy Prime Minister Freeland, Minister Fortier, MP Fraser, and departmental officials,

On behalf of the Basic Income Canada Youth Network (BICYN), we are pleased to share with you our submission for the federal government’s 2021 pre-budget consultation process. In response to the call for ideas that support a more inclusive and more resilient Canada, our proposal is as follows: for the federal government to implement a national, permanent, and livable basic income guarantee program.

Calls for a basic income in Canada are not new, but have undoubtedly been exacerbated during COVID-19 in the wake of widespread job loss and income insecurity. In Canadians’ time of struggle, the Government of Canada acted swiftly and decisively, implementing CERB and CESB to ensure that money got into the pockets of those who needed it. Programs like these – in addition to the Canada Child Benefit and Guaranteed Income Supplement – position Canada as a global leader when it comes to social policy, combating poverty with policy responses that are generous, non-punitive, and rights-based.

Yet, we know that many are still left behind. While an important step, CERB’s temporary nature, combined with the fact that it did not extend to those who were unemployed prior to the pandemic, resulted in many continuing to fall through the cracks. Moreover, beyond emergency benefits, we know that COVID-19 only served to exacerbate existing structural issues in Canada when it comes to poverty and income insecurity: even beyond COVID-19, many Canadians are still struggling. Basic income-type programs like the Canada Child Benefit and Guaranteed Income Supplement do not extend to working-age adults, while provincial social assistance benefits across the country remain criminally low, effectively cementing recipients in poverty while counterintuitively disincentivizing work. Combined with the rise in precarious and low-paid work, the need for solutions that genuinely ensure the security of all Canadians is abundantly clear. In our view, basic income must be one of these solutions.

For youth in particular, basic income represents a glimmer of hope in a social and political context marked by uncertainty, volatility, and fear for our future. The pandemic has left young Canadians especially hard-hit when it comes to job loss as well as mental health challenges, and outside the pandemic, persistent challenges such as student debt and increasingly-inaccessible housing and rental markets disproportionately affect young people. We also know that young people in Canada take on a significant amount of work that, though unpaid, is crucial to our country’s social and economic fabric; this includes parenting and other forms of care work as well as voluntary and community contributions. Undoubtedly, a basic income would be the difference for many young people between surviving and thriving for years to come.

Understandably, the recent rise in calls for basic income has spurred questions, critiques, and confusion as to what constitutes a basic income and what the effects of such a policy would be. Our view, which aligns with that of basic income advocates across the country, is that any basic income implemented by the federal government should be adequate (i.e., set at or above the Market Basket Measure), unconditional (i.e., accessible without meeting work or behavioural conditions), income-tested (i.e., universally accessible but not universally administered: wealthy individuals would not receive a basic income) and complementing – rather than replacing – robust social services. Crucially, several concerns – for instance, that a basic income is unaffordable, or that it would discourage people from working – fail to be borne out by the available evidence, with further information provided in some of the supplementary materials following this letter.

Our request is supported by hundreds of our members across the country, in addition to public opinion more broadly. Canada boasts a wealth of academics and experts whose research has demonstrated the overwhelmingly-positive impacts of such a program. Further, in addition to gaining the support of civil society leaders and non-profit representatives across the country, our recent and ongoing engagement with Members of Parliament and Senators depict an interest in and willingness to pursue basic income across party lines. All said, Canada is ready for a basic income program: we just need our leadership to take the same swift, decisive action to ensure Canadians’ well-being post-pandemic that we observed in the early days of COVID-19.

Following this letter are several documents supporting BICYN’s request and providing greater nuance to some of the topics we have raised here. In addition to these, we would highly recommend reviewing the annotated bibliography on basic income curated by Senator Kim Pate’s office, which is available for review here. The subsequent resources include:

• BICYN’s Summary of Position: The Case for Basic Income by and for Youth. Includes background about BICYN, the type of basic income we are advocating for, the importance of basic income from a youth perspective, and links to additional resources, including two op-eds: “Youth voices are needed in the basic income debate” and “An extra 2,00 An extra $2,000 a month helped young people struggling during COVID-19. Now we need to support them with a guaranteed livable income.” • Open Letter supporting Senators’ call for a guaranteed livable income, from a youth perspective. Letter with the Canadian Council of Young Feminists, which garnered the support of organizations and individuals representing over 1 million youth. • Basic Income 101: One-Pager for Youth. Visual resource on basic income and youth. • Frequently Asked Questions: A Basic Income Guarantee for Canada. Background document created by our partner, Coalition Canada Basic Income – Revenu de base.

On behalf of young people across the country, we appreciate your serious consideration of this matter, and would be pleased to do whatever we can to continue to support this conversation. Please feel free to reach out anytime at [email protected]: we are happy to speak further, share additional resources, or facilitate conversations with civil society leaders, academic experts, or those with lived experience of poverty or income insecurity on the topic of basic income. We look forward to continuing this conversation and supporting this government in pursuing a more inclusive, more equitable, and more just future for this country.

Yours sincerely,

The Basic Income Canada Youth Network Steering Committee (Kendal David, Melanie Davis, Shelby Kendra Downe, Chloe Halpenny, Walid Herzallah, and Hannah Owczar) Leave Behind RE: The Case for Basic Income by and for Youth in Canada ______

Chloe Halpenny and Kendal David Co-Chairs, Basic Income Canada Youth Network [email protected]

In short:

In the view of the Basic Income Canada Youth Network, the Government of Canada can and should implement an income-tested basic income to address income insecurity for young people and all Canadian citizens and residents, which has been exacerbated by the COVID-19 crisis.

Throughout the course of history, youth have been at the forefront of social change in this country. Today is no different. Young people are looking to this government to make bold political moves to invest in our future. For young people in Canada, basic income policy is a glimmer of hope in a social and political context marked by uncertainty, volatility, and fear for our futures. Implementing a basic income would be the difference for many young people between surviving and thriving for years to come. The impacts of implementing a basic income would extend far beyond the youth of Canada, leaving a political legacy for this government and this generation that will far outlast the current health and economic crisis.

Our recommendation: That the federal government implement a permanent, livable, basic income guarantee, in line with recent calls by the Liberal caucus.

One tactic to advance this recommendation is initiating and encouraging conversations about basic income with cabinet members and federal government leaders; this could include a review of MP Leah Gazan’s Motion 46 for Guaranteed Livable Basic Income, which would convert CERB to a basic income. Another tactic is engaging provinces regarding a basic income; the government of Prince Edward Island and all parties in the PEI legislature have indicated their support for a basic income in the province.

Our key arguments:

1. Young people in Canada support basic income policy. 2. Young people in Canada need basic income policy. 3. Basic income is a bold political move that supports and is supported by other social movements and sectors. 4. Basic income aligns with this government’s mandate and mission.

About BICYN The Basic Income Canada Youth Network (BICYN) is a national group of engaged young people (under 35) in Canada who want to see the federal government adopt a basic income for those who need it. BICYN’s mission is to mobilize young people to advocate for and celebrate the benefits of a basic income through community-building, education, and activism. We work closely with other basic income groups, including Coalition Canada, Basic Income Canada Network, Ontario Basic Income Network, and local and provincial advocacy groups across the country. We are connected to academics and experts who research basic income, as well as those who experience/d poverty and participants from the Ontario Basic Income pilot.

The Basic Income We Want “Basic income” refers to an umbrella policy with a range of possibilities in terms of design and implementation. While BICYN recognizes that these decisions will ultimately be made by those in government who implement the policy, we advocate for a basic income that embraces the following principles, which are aligned with others in the basic income movement:

• Basic income should provide a floor of economic support for Canadian citizens and permanent residents who want and need it. • Basic income should be income-tested and available for those living under a financial threshold, including youth; i.e. basic income should be universally accessible but not universally distributed. • People should be able to access basic income without meeting behavioural conditions, and regardless of their work status. • Basic income complements robust social services, and should be sufficient for recipients to pay for the necessities of life (i.e. shelter, nutrition, modest recreation), participate meaningfully in their communities, and live with dignity. • Our vision of a basic income is based on the dignity, autonomy, and worth of each person and community. • The implementation of a basic income should move forward in partnership and collaboration with Indigenous communities, provinces, territories, municipalities, to ensure that all orders of government contribute and benefit fairly and that other necessary changes and supports are made appropriately to ensure that no one is left behind or worse off because of basic income policy. • For effective implementation, the federal government should consult and work with community groups, people who experience poverty, and recognized academic and non- government experts who have been researching and developing policy design options for Canada.

1. Young people in Canada support basic income policy Increasingly, young people across the country are voicing their support for a basic income. Public opinion research demonstrates this as well. Young people are ready and calling for a basic income as part of Canada’s economic recovery plan and a more equitable future.

• Youth-led and serving organizations across the country have added their voices to the call for basic income. This includes the Canadian Federation of Students, representing more than 500,000 members across 64 students’ unions, as well as YWCA Canada, the Ontario Council for International Cooperation’s Youth Policy-Makers Hub, the Canadian Council of Young Feminists, the Canadian Coalition for Global Health Research – Students and Young Professionals Network, Canadian Council for Refugees Youth Network, Choices for Youth, Climate Justice Ottawa, Youth Climate Lab, and more. • Public opinion research by Angus Reid in June 2020 found generally-high levels of support for a basic income among Canadians. Notably, 78% of Liberal and 84% of NDP voters in the last election, respectively, support a basic income. Youth are especially in favour: support is highest among 18-34 year olds. Given that high-priority issues for youth include things like rising cost of living, unpredictable economic conditions, and income inequality and poverty (Coletto & Kishchuk, 2019), basic income stands to be a make-or-break policy for young voters in an upcoming election. • Basic income has also been identified as a priority by Young Liberals: on September 13 th , The Young Liberals of Canada announced that one of their top policy resolutions for 2020 is a basic income for Canada. • Young people have the voting power and passion to bring about change for our country and for our future. 18-38 year-olds in Canada were the largest voting bloc in the 2019 Federal election, accounting for about 37% of the total electorate. The Liberal Party has historically won the youth vote in Canada – but young people are asking for more from their elected officials, and have high expectations for our political future (Coletto, 2016).

2. Young people in Canada need basic income policy In short, a basic income would provide stability for young people to plan for and invest in their futures with less fear and uncertainty than we are currently facing. "Youth in this country are powerful, intelligent, and resilient. Many of us will live through not one, but two economic crises before turning 25. We deserve to be heard in conversations where decisions that will drastically affect our lives are made." (Halpenny, Youth voices are needed in the basic income debate)

• Basic income would provide a sense of stability and security to young people who have faced a high degree of volatility in their lifetimes, which has been exacerbated by the pandemic. o In many ways, youth are being hit hardest by the pandemic, with the post- pandemic job market for students and youth especially dire (Statistics Canada, 2020), and young people disproportionately struggling with mental health issues (Cision Canada, 2020). o Young workers have been disproportionately impacted by job loss between February and May of last year (Ivanova, 2020). • Basic income would allow learners to enter and continue to pursue higher education with less financial stress. o Young people in Canada are facing higher rates of student debt than previous generations. Canadian student debt totaled $28B in 2018. Most post-secondary students are worried about their student debt and the post-graduate job market (Coletto, 2016). • Basic income challenges exploitative working conditions, breaking the link between income security and the labour market. o Even before the pandemic, young people in Canada were struggling to find permanent, full-time work (Martin & Lewchuk, 2018), were concentrated in precarious or low-paid jobs (Canadian Union of Public Employees, 2018), all while struggling to balance work, volunteering, caring, and other roles. 3. Basic income is a bold political move that supports and is supported by other social movements and sectors. Across the country, individuals and groups from a diversity of social movements and sectors have endorsed basic income as part of a more just and equitable future for our country. These include, but are not limited to:

• Health: Canadian Medical Association, Canadian Public Health Association, Canadian Association of Social Workers, Chronic Disease Prevention Alliance of Canada – which includes Canadian Cancer Society, Canadian Nurses Association, Diabetes Canada, Dieticians of Canada, Heart & Stroke, Kidney Foundation of Canada, and YMCA Canada, Open Letter from Coalition of 167 Health Professionals. • Indigenous groups and activists: Call for Justice 4.5 of the National Inquiry into Missing and Murdered Indigenous Women and Girls calls on governments to “establish a guaranteed livable income for all Canadians, including Indigenous Peoples, to meet all their social and economic needs” (National Inquiry into Missing and Murdered Indigenous Women and Girls, 2019, p. 182). Other groups and activists who support basic income policy include: Aboriginal Women’s Action Network, Southern Chiefs’ Organization, Ka Ni Kanichihk, and the Assembly of Manitoba Chiefs. • Gender equity: In early September, over 3,600 organizations and individuals from across the country signed on to a national Statement on Basic Income: A Case for Women. Signatories to date include the Canadian Women’s Foundation, the Women’s Legal Education and Action Fund (LEAF), the Canadian Council of Muslim Women, the Canadian Women’s Chamber of Commerce, the Ontario Association of Interval & Transition Houses, and Women’s College Hospital. • Environmental justice: LeadNow, Climate Justice Ottawa, Manitoba Youth for Climate Action, Youth Climate Lab • Labour movement: Workers United Canada Council, United Steelworkers, IATSE Canada • Disability justice: Disability Justice Network of Ontario, North Saskatchewan Independent Living Centre, Disability Action Hall (Alberta) • Food security groups: Food Banks Canada, Food Secure Canada, and Community Food Centres Canada.

4. Basic income aligns with this government's mandate and mission Basic income is a bold new solution to addressing income insecurity, will provide a sense of stability that young people in Canada can build a future on, and will support an impressive political legacy of the current government.

• According to Canada's youth policy, this government envisions a country where “young people are equipped to live healthy and fulfilling lives and feel empowered to create positive change for themselves, their communities and the world.” Basic income policy should be part of the policy framework to equip and empower young people in Canada to build back their future, and the future of our country. • On August 18, 2020, Right Hon. Justin Trudeau said: “This pandemic.. has highlighted the inequalities that still exist and the vulnerabilities we have as a society… We have a choice to make. We can decide to move forward instead of returning to the status quo… We can choose to embrace bold new solutions to the challenges we face, and refuse to be held back by old ways of thinking. It’s tough for all Canadians, but we have to remember that it’s those who were already struggling who are hardest hit.”

Basic Income Endorsements & Resources by Youth 1. Basic Income 101: One-Pager for Youth - Canadian Council of Young Feminists - Conseil canadien des jeunes féministes and the Basic Income Canada Youth Network 2. Halpenny: Youth voices are needed in the basic income debate - Ottawa Citizen, Op-Ed 3. Open Letter to Prime Minister Trudeau, Deputy Prime Minister Freeland, Minister Chagger, and Minister Morneau, in support of the Senators’ call for guaranteed livable income - Canadian Council of Young Feminists - Conseil canadien des jeunes féministes and the Basic Income Canada Youth Network, endorsed by 43 NGOs & CSOs and 29 individuals across Canada 4. An extra $2,000 a month helped young people struggling during COVID-19. Now we need to support them with a guaranteed livable income. Toronto Star, Op-Ed. References

Angus Reid Institute. (2020, June). As COVID-19 rewrites playbook on social safety net, majorities support idea of basic income of up to 30K. Available from: http://angusreid.org

Canadian Union of Public Employees. (2018, March 15). Precarious work on the rise. Available from: https://cupe.ca/precarious-work-rise

Cision Canada. (2020, June 3). Canadian youth the most impacted by pandemic lockdown. Available from: https://www.newswire.ca/news-releases/covid-19-poll-canadian-youth-the-most-impacted- by-pandemic-lockdown-848074531.html

Coletto, D., & Kishchuk, O. (2019). Another youthquake? Exploring the concerns, priorities, and political engagement of Canadian youth aged 15 to 30. Available from: http://abacusdata.ca

Coletto, D. (2016). The next Canada: Politics, political engagement, and priorities of Canada’s next electoral powerhouse: young Canadians. Available from: http://abacusdata.ca

Ivanova, I. (2020, July 17). Here’s who lost jobs in the pandemic, and who needs support. Available from: https://thetyee.ca/Analysis/2020/07/17/Pandemic-Lost-Jobs-Support/

Martin, J.C. & Lewchuk, W. (2018). The Generation Effect: Millennials, employment precarity and the 21st century workplace. Available from: https://pepso.ca/documents/the-generation-effect-full- report.pdf

National Inquiry into Missing and Murdered Indigenous Women and Girls. (2019). Reclaiming Power and Place (Vol 1b). Available from: https://www.mmiwg-ffada.ca/final-report/

Statistics Canada. (2020, June). Labour Force Survey. Available from: https://www150.statcan.gc.ca/n1/en/daily-quotidien/200710/dq200710a-eng.pdf?st=49QTxnI7

Trudeau, J. (2020, August 18). Prime Minister’s remarks on changes to the Ministry and an upcoming Speech from the Throne. Available from: https://pm.gc.ca/en/news/speeches

May 5, 2020

The Right Honourable Justin Trudeau, P.C., M.P. Prime Minister of Canada House of Commons Ottawa, Ontario Canada K1A 0A6

The Honourable Chrystia Freeland, P.C., M.P. Deputy Prime Minister House of Commons Ottawa, Ontario Canada K1A 0A6

The Honourable Bardish Chagger, P.C., M.P. Minister of Diversity and Inclusion and Youth House of Commons Ottawa,Ontario Canada K1A 0A6

The Honourable Bill Morneau, P.C., M.P. Minister of Finance House of Commons Ottawa, Ontario Canada K1A 0A6

Subject: Youth Voice Amidst COVID-19 Pandemic – Guaranteed Livable Income

Dear Prime Minister, Deputy Prime Minister, Minister Chagger and Minister Morneau:

As young people in the midst of education or in the beginning stages of our careers, we face an unprecedented situation. Systemic problems like climate change, income inequality, joblessness and unemployment remain pressing, and the global COVID-19 pandemic will change societal norms as we know them. Now more than ever, we need reforms that will create a more equitable, just, and fair society where people - including youth - can not only survive, but thrive.

Having introduced Canada’s first-ever national youth policy, Minister of Youth, youth council to the Prime Minister, and Canada Service Corps-a program that fosters national youth volunteer service, this government has shown an unparalleled commitment to the power and potential of this country’s young people. At the same time, we are encouraged by the climate of collaboration, optimism, and sincerity that has been fostered by all levels of government in the context of COVID-19. For these reasons, we thank you.

At the same time, critical challenges remain. While we have seen the introduction of the Canada Emergency Response Benefit (CERB) as a crucial tool to get money in the pockets of those in need, across the country, youth, informal or low-income workers, social assistance recipients, and those who are unemployed continue to find themselves excluded. Moreover, while COVID- 19 has made problems of income insecurity, unemployment, and poverty more pronounced, these aren’t new issues: 2019 research from MNP Consumer Debt Index found that nearly half of Canadians reported being $200 or less away from bankruptcy at the end of each month. Further, a Canadian Centre for Policy Alternatives report indicated that as of 2016, nearly 50% of working tenant households have less than a month's income saved, and nearly 25% have less than a week’s income. Today’s youth in Canada have struggled with unemployment, student debt, and the ability to save for a home or retirement - among other challenges - pre- pandemic, and we will continue to do so after should we not see serious policy changes.

To this end, we echo the calls of the members of the Senate of Canada in their April 21st, 2020 letter, requesting that Ministers work to restructure CERB with a view to ensuring greater social and economic equity for not only youth, but all Canadians. Each new initiative - including the new measures for students introduced on April 22nd - takes time to craft and implement, leaving those most in need further vulnerable. The patchwork of programs we’re seeing fosters inefficiency for public servants, confusion for recipients, and persistent vulnerability for those who are most in need. For these reasons, we support the Senators’ call to restructure CERB as a crisis minimum income.

In the longer-term, it is our hope that this government will take seriously Senators’ call to craft social and economic reforms that develop a positive legacy for all Canadians, in particular by exploring the pursuit of a guaranteed livable income in Canada. Exploring this type of response is both urgent and welcomed by us and many other individuals and organizations across Canada, and we are keen to support this process through providing a youth perspective. This is a made-in-Canada, evidence-based, and compassionate solution, with data showing that it would not only be feasible, but with the potential to produce significant positive outcomes in so many facets of Canadians’ lives.

While this is a complex and dynamic issue, we as youth recognize the need to engage in dialogue and action during this time of social change. We understand it is crucial for young Canadians to tackle this topic alongside fellow youth, student groups, and youth- focused organizations. We can come out of this crisis as a more fair and equitable society, with more certainty in our futures than ever. That's why we - the following undersigned individuals and organizations, representing young people from coast to coast to coast - add our voice to parliamentarians from all parties, calling to bridge the ideological divide and urging you to make the recent solution proposed by members of the Senate of Canada a reality.

Sincerely,

Canadian Council of Young Feminists - Senator McPhedran's Youth Advisory & Basic Income Canada Youth Network, with and on behalf of:

1. Basic Income Canada Network/Réseau canadien pour le revenu garanti - National 2. Basic Income Hamilton - Ontario 3. Basic Income London - Ontario 4. Basic Income Manitoba - Manitoba 5. Basic Income Nova Scotia - Nova Scotia 6. Basic Income Peterborough Network (BIPN) - Ontario 7. Basic Income Waterloo Region (BIWR) - Ontario 8. Canadian Coalition for Global Health Research - Students and Young Professionals Network (SYPN) - National 9. Canadian Council for Refugees Youth Network/Réseau des jeunes Conseil Canadien pour les réfugiés - National 10. Canadian Federation of Students - National 11. Choices for Youth - Newfoundland & Labrador 12. Climate Justice Ottawa 13. Coalition Canada: BIG/RdB Actions – National 14. Durham Food Policy Council – Ontario 15. Engineers Without Borders Canada – National 16. Greater Fredericton Social Innovation - New Brunswick 17. HAMSMaRT – Ontario 18. Halton Poverty Roundtable – Ontario 19. Hamilton Roundtable for Poverty Reduction – Ontario 20. Income Security Peterborough – Ontario 21. Institute for International Women’s Rights - Manitoba – Manitoba 22. Keeping Six – Ontario 23. Kingston Action Group for a Basic Income Guarantee – Ontario 24. La Maison de Jonathan – Quebec 25. Manitoba Youth for Climate Action – Manitoba 26. Millennial Womxn in Policy – National 27. Ontario Basic Income Network – Ontario 28. Ontario Council for International Cooperation – Ontario 29. P.E.E.R.S. Alliance - Prince Edward Island 30. PEI Working Group for a Livable Income/C-BIG PEI - Prince Edward Island 31. Peterborough Youth Empowerment Committee – Ontario 31. Social Planning and Research Council of Hamilton – Ontario 32. St. Thomas University Students' Union - New Brunswick 33. Toronto Youth Food Policy Council – Ontario 34. UBI Works – National 35. Voices: Manitoba's Youth in Care Network – Manitoba 36. Volunteer Greater Fredericton - New Brunswick 37. Women’s March Ottawa – Ontario 38. Young Greens of Prince Edward Island - Prince Edward Island 39. Youth Agencies Alliance (YAA - Winnipeg) – Manitoba 40. Youth Climate Lab – National 41. YWCA Canada – National 42. YWCA Halifax - Nova Scotia

As individuals:

1. Dr. Brenda Beagan, Professor, School of Occupational Therapy, Dalhousie University 2. Dr. Elaine Power, School of Kinesiology & Health Studies and Department of Gender Studies, Queen’s University 3. Dr. Elizabeth (Mandy) Kay-Raining Bird, Professor, School of Communication Sciences and Disorders, Dalhousie University 4. Dr. Evelyn L. Forget, Professor, Faculty of Health Sciences, University of Manitoba 5. Dr. Haideh Moghissi, Emerita Professor, York University 6. Dr. James P. Mulvale, Faculty of Social Work, University of Manitoba 7. Dr. Jennifer Brady, Assistant Professor, Department of Applied Human Nutrition, Mount Saint Vincent University, Halifax, Nova Scotia 8. Dr. John Holmes, Professor Emeritus, Department of Geography and Planning, Queen’s University 9. Dr. Karen Foster, Associate Professor, Sociology and Social Anthropology, Canada Research Chair (Tier II) in Sustainable Rural Futures for Atlantic Canada, Director, Rural Futures Research Centre, Dalhousie University 10. Dr. Lorna A. Turnbull, Professor, Faculty of Law, Robson Hall, University of Manitoba 11. Dr. Margaret Little, Professor, Gender Studies/ Political Studies, Queen’s University 12. Dr. Marguerite Van Die professor emerita History and Religion, Queen’s University Kingston 13. Dr. Mary Valentich, Professor Emerita, Faculty of Social Work, University of Calgary 14. Dr. Patricia Ballamingie, Professor, Department of Geography & Environmental Studies/Institute of Political Economy, Carleton University 15. Dr. Patricia L. Cleave, SLP-Reg, Professor, School of Communication Sciences and Disorders, Dalhousie University 16. Dr. Shauna MacKinnon, Associate Professor and Chair, Department of Urban and Inner City Studies, University of Winnipeg 17. Dr. Tracy Smith-Carrier, King's University College at Western University 18. Dr. Wayne Lewchuk, Professor Emeritus, McMaster University 19. Dr. William H. Cooper, Professor Emeritus, Smith School of Business, Queen’s University 20. Andrea Loken, President, Teachers’ Bargaining Unit of OSSTF Limestone District 27 21. Graham Riches, Emeritus Professor of Social Work, University of British Columbia 22. Jamie Swift, Adjunct Professor, Smith School of Business, Queen’s University 23. John D. Whyte, Professor Emeritus, Faculty of Law, Queen’s University & Professor Emeritus, Politics and International Studies, University of Regina 24. Hugh Tye, Executive Director / Directeur general, Hamilton Community Legal Clinic/Clinique juridique communautaire de Hamilton 25. Lynn McIntyre MD, Professor Emerita of Community Health Sciences, Cumming School of Medicine, University of Calgary 26. Members, Youth Policy-Makers Hub, Ontario Council for International Cooperation 27. Pierre Stevens (ret’d), Senior Instructor, Department of Mathematics and Statistics, Dalhousie University 28. Toni Pickard, Queen's Faculty of Law (ret'd) 29. Virginia Bartley, Faculty of Law, Queen's University (ret’d)

BACKGROUNDER Frequently Asked Questions: A Basic Income Guarantee for Canada

Q1: What is a basic income? A basic income is a periodic, unconditional cash payment sent to individuals from the government. It ensures recipients can meet their basic needs and live with dignity regardless of their work status. Different terms are used to describe key characteristics of a basic income. A universal basic income (UBI) describes an unconditional payment made to a broad sector of society, rich or poor, such as all citizens, adults or residents. A basic income guarantee (BIG) establishes an income floor that eliminates the risk of falling into poverty. While universally available, it is income-tested and only delivered to those who need it, regardless of their work status. A guaranteed livable income (GLI) is used to emphasize the importance of the benefit being sufficient, not just to survive, but to be able to live with dignity and to participate fully in community. In Canada, most basic income advocates support a livable basic income guarantee.

Q2: Will people stop working if they get a basic income? No. Examination of the Canadian research from basic income experiments indicates people do not substantially reduce their hours of work. Only two groups were identified as leaving the workforce: mothers of very young children and people who went back to school (Forget, 2020, pp. 58-59). The research from the Ontario Basic Income Pilot showed that most of those who were working when the pilot began continued to work while receiving basic income. More than a third of these workers reported that basic income helped them find higher-paying jobs with better working conditions (Forget, 2020, pp. 58-59). A well-designed basic income program would ensure there is no disincentive to work. To ensure that it always pays to work an additional hour, the program must provide a gradual decline in the amount of the benefit as employment income increases. For example, if the benefit declined by 50 cents for every dollar earned, workers would always be financially better off working an additional hour (Forget, 2020, p. 99). Forget E. (2020). Basic Income for Canadians: From the COVID-19 Emergency to Financial Security for All. Toronto: James Lorimer & Company Ltd. See also: Forget’s analysis of the research from five experiments in the 1970s (pp.106 to 112). See also: Ferdosi M, McDowell T, Lewchuk W & Ross S. (2020). Southern Ontario's Basic Income Experience. Hamilton: McMaster University Labour Studies; Basic Income Canada Network (BICN) (2019). Signposts to Success. A survey of Ontario Basic Income Pilot recipients.

Q3: How is a basic income different from CERB? CERB was not designed as a basic income program. Support provided by CERB was conditional. It was limited to people who had worked and earned at least $5,000 in the previous 12 months, had lost their jobs as a result of the pandemic, had their hours reduced, or had childcare responsibilities associated with school closures (Forget, 2020, p. 10). A basic income program should be unconditionally available for those who need it, regardless of work status. CERB was designed to support people to stay home in order to slow the spread of COVID. As the economy started to reopen, some businesses complained that they could not get people to return to work. There were several reasons for this: people returning to work were only allowed to earn $1000 before losing 100% of their benefit, leaving low-income workers at risk of earning less than the $2,000/month guarantee that the CERB provided. People were also concerned about returning to unsafe workplaces that could not ensure social distancing or provide protective equipment. They were concerned about bringing the virus home to their families, and many families continued to lack childcare as schools had not yet reopened (Forget, 2020, pp.98-99). CERB set the benchmark and the precedent for the amount needed by most Canadians to meet basic needs and to live with dignity (the criteria for “livability”). The application process for CERB also made the program easily accessible and non-discriminatory, reducing the stigma associated with receiving income assistance. This is in direct contrast to the way provincial income assistance (welfare) programs are currently administered and managed. See: Mahboubi P & Ragab M. (2020). Lifting Lives: The Problems with Ontario's Social Assistance Programs and How to Reform Them. Commentary 572. Toronto: C.D. Howe Institute.

Q4: How high should the income guarantee be set? Since the purpose of a basic income is to address economic income insecurity and poverty, the guarantee should not be set below the poverty line using a Market Basket Measure (MBM). The Ontario Basic Income Pilot was a basic income guarantee for adults ages 18-64. The income guarantee was set at 75% of Statistics Canada’s low-income measure (LIM), or 25% below this poverty line. Single individuals were eligible for a minimum benefit of $16,989/year. Couples could receive a maximum benefit of $24,027. The benefit was reduced by $0.50 (50%) for every dollar of income earned (PBO, April 2018). Basic Income Canada Network (BICN) costed a basic income guarantee model for the same age group (Policy Option One). Single adults were eligible for a minimum benefit of $22,000 and an adult couple was eligible for a maximum benefit of $31,113. The reduction rate was set at 40%. Boadway et al. (2016) proposed a guarantee of $20,000 per adult adjusted for family size with a benefit reduction rate of 30%. See: Parliamentary Budget Office. (April 2018). Costing a National Guaranteed Basic Income Using the Ontario Basic Income Model; Basic Income Canada Network (BICN). (2019). Basic Income: Some Policy Options for Canada; Boadway R, Cuff K & Koebel K. (2016). Designing a Basic Income Guarantee for Canada. Queen’s Economic Department Working Paper #1371.

Q5: What programs would a basic income guarantee replace? A national basic income guarantee should replace provincial income assistance programs (welfare). National programs, such as the Canada Child Benefit, Canada Pension Plan, Old Age Security, and the Guaranteed Income Supplement should all remain, although the GIS rate may need to be raised to the same level as that of the basic income guarantee to ensure fairness. Employment Insurance should be redesigned to ensure all workers who pay into EI are eligible for benefits when they need them. In 2018, only 40% of workers actually qualified for EI when they needed it. Together, this suite of national income transfers will ensure no one falls through the Canadian social safety net and into poverty. Provincial income assistance programs should be harmonized with the federal basic income guarantee program, reviewing these programs based on transparent principles of cost, fairness, effectiveness and efficiency. These reviews should determine which programs should be replaced, which ones need to be redesigned, and how the new national basic income guarantee program aligns and fits with all other federal and provincial programs and tax credits (Forget, 2020, pp.194 to 195). See also: Statistics Canada. (2018). Employment Insurance Coverage Survey; Boadway et al. (2016). Designing a Basic Income Guarantee for Canada; The importance of valuing our food production system: Structural inequalities in Canada’s social protection programs and food production systems in Tam T. (October 2020). From Risk to Resilience: An equity approach to COVID-19. Public Health Agency of Canada, pp.48-49; and National Farmers Union. (2020). Envisioning a Post-Pandemic Agriculture and Food System.

Q6: Would a basic income guarantee replace other social supports and services? No. A basic income guarantee reallocates government funding to provide an income floor that Canadians can depend on. It is not meant to address underlying factors (such as disability, mental health or addiction), although these are made worse by poverty (Forget, 2020, p.195). Employment and training programs, counselling and health services, and rehabilitative services and supports must remain and should be enhanced where needed.

Q7: How much would a national basic income guarantee cost? The cost depends on how the program is designed. The Parliamentary Budget Office (PBO) based its costing reports on the Ontario Basic Income Pilot. The PBO’s April 2018 report estimated the gross cost at $76 billion, minus identified current spending of $32.9 billion (refundable and non refundable tax credits and special programs) for a total of $43.1 billion. Forget calculated that in addition to the spending identified in this PBO report, the Ontario Basic Income Pilot was set up as an alternative to Ontario Works and the Ontario Disability Support Program, which cost $8 billion/year. Assuming there are costs related to similar types of programs in the other provinces and territories, this represents an additional $20 billion of current spending that can be replaced, not including the cost of administration. The net cost would then fall to $23 billion by reallocating these provincial and territorial costs to a national basic income guarantee program. This does not include savings from the administration of these programs, nor does it include future savings resulting from reduced hospitalizations (a savings of 8.5% identified by Forget from the Mincome experiment), reductions in visits to family doctors, and savings in other social systems (Forget, 2020, pp. 201-202). See also: The PBO’s July 2020 report that costed the Ontario Basic Income Pilot based on three scenarios that phase- out the benefit by $0.50, $0.25 and $0.15 for each dollar of employment income. The PBO’s November 2020 Update, which extended the July 2020 report’s cost estimates over five fiscal years to 2024/25 for the same three scenarios, also included the new employment insurance temporary benefit.

Q8: How do we pay for a national basic income program? This program would be paid for by Canadians through their taxes, by streamlining and reallocating government resources through a review and redesign of current income transfer programs, tax credits and deductions, and other tax reforms. For example, organizations and experts have modeled different approaches to resourcing a basic income, including Basic Income Canada Network (2019) and Boadway, Cuff & Koebel (2016). See: Basic Income Canada Network. (2019). Basic Income: Some Policy Options for Canada (summarized in Forget, 2020, pp. 202- 207). BICN costed three policy options and identified ways to pay for them: Policy Option One was a benefit for people 18-64 based on family income; Policy Option Two was the same as Option One but included a basic income for seniors; Policy Option Three calculated a universal basic income (UBI) model paid to all Canadians and permanent residents 18 years and older, where every adult, rich or poor, received a monthly payment with no reduction rate. See also: Boadway et al., 2016 for a revenue neutral model based on a two-stage process that harmonized a federal basic income program with provincial income assistance.

Q9: What are the indirect benefits of a Basic Income Guarantee for Canada? The Canada Child Benefit offers an example of what a basic income guarantee can contribute to the economy. According to a report by CANCEA (2019), in 2017-2018, the CCB kept 277,000 Canadian families above the poverty line, defined by the Market Basket Measure (MBM). This included helping 131,600 lone-parent families remain above the poverty line, of which 105,300 (80%) were female-led. This same report also estimated an economic impact of the CCB at 2.1% of Canada’s total GDP. This is to say that for every $1 disbursed through the program to Canadian families, a contribution of $1.97 was made to GDP. This economic stimulus also generates tax revenue. For every $1 disbursed to Canadian families through the CCB, over half ($0.55) was recuperated through taxes, $0.30 to the federal government and $0.25 to provincial governments (CANCEA, 2019, pp. 7-8).

All three models developed by Basic Income Canada Network demonstrate a reduction in inequality, as people in both the low- and middle-income groups see their disposable income increase. Those with the lowest income see their disposable income increase by more than 350%. Poverty is very nearly eliminated and Canadians are no longer trapped in the deep poverty created by our current welfare systems (BICN, p. vii). As demonstrated by the CCB example, a basic income program can also streamline the interface between people and their government and improve income tax participation.

With a basic income, people have the opportunity to make better life choices. Forget’s research on the results of the three-year Mincome experiment found that basic income improved health and wellbeing, reducing hospitalization by 8.5% and the use of other health services by reducing stress and improving mental health (Forget, 2020, p.202). Caseworkers would see their workload shift from managing client compliance with the myriad of welfare regulations to working with them to improve their health and wellbeing (Forget, 2020, p. 157). By reducing income inequality and eliminating poverty, basic income would also improve social cohesion by improving community safety and security. Income security is an essential enabler of community resilience as our economy shifts to support environmental and social sustainability. For example, if we are to reach our goal of net-zero greenhouse gas emissions by 2050, public support will be needed to sustain decarbonization efforts. Just as every aspect of local resilience is in some way connected to a climate impact or a low-carbon solution, income security will either reinforce community resilience by its presence - or makes it virtually impossible by its absence. CANCEA. (2019). Economic Contribution of the Canada Child Benefit: A Basic Income for Canadian Families with Children; Forget E. (2020). Basic Income for Canadians: From the COVID-19 Emergency to Financial Security for All. Toronto: James Lorimer & Company Ltd.; Basic Income Canada Network. (2019). Basic Income: Some Policy Options for Canada.

Q10: What national basic income guarantee program are we advocating for? Coalition Canada: basic Income – revenu de base advocates for a livable basic income guarantee for adults age 18-64 to replace provincial social assistance (welfare), with a guarantee set at the same level as CERB ($2000/month), with a reduction rate of $0.50 for every dollar of income earned.