By PAN Contributor Cody Wolfe
Universal basic income, or UBI, is a type of welfare program in which each member of a given country would receive a regular, guaranteed amount of money from the government, regardless of employment status or income level. In this system, there would be no means test, proof of income, or job search history — just a basic sum intended to cover essentials like food, housing, childcare, and other necessary costs.
While the concept of UBI may seem new, it’s actually been floating around for a long time. Over the years, various thinkers, politicians, and economists have proposed some variation of UBI as a means of reducing poverty. Juliet Rhys-Williams, a 20th century British politician, was the first to propose a system of basic income which came to be called a “negative income tax”, a system in which high-income earners pay a sum of money to the state which low-income earners receive back, and this idea was later popularized by Milton Friedman, an american economist.
In 1974, the “Manitoba Basic Annual Income Experiment”, also known as “Mincome”, was conducted. Funded jointly by the provincial and federal governments, it was meant to determine four things:
1. If a guaranteed annual income would cause people to leave the workforce.
2. How such a program could be administered.
3. The social effects on communities involved.
4. If it could act as an alternative to existing social assistance programs.
Researchers found a number of positive results—involvement in the Mincome project caused a small reduction in the labour force, and this was mostly the result of new mothers choosing to stay home longer, and teenage boys choosing to stay in school. During the experiment, there were higher graduation numbers and university enrollments, lowered rates of domestic violence, work-related injuries, and reduced incidence of farm and motor vehicle accidents. From this, some concluded that the reduction in poverty had far-reaching, positive outcomes for the community as a whole.
The Mincome experiment came to an end in 1979 after the Manitoba NDP and Federal Liberals lost elections that year, and the program was deemed too expensive by the new incumbents.
The argument in favour of UBI is straightforward. In theory, it provides people with financial security and peace of mind. It can help reduce the stress that comes with job loss, unstable work hours, or low wages. For many, it’s seen as a way to give individuals more freedom—freedom to pursue education, start a business, or care for family without fear of not being able to make ends meet.
Universal Basic Income is still debated, and opinions differ, but as technology advances and inequality continues to grow, it’s likely that we’ll hear more about it. Whether or not UBI becomes a reality, the discussion it sparks is an important one—how do we create a society where everyone has an opportunity to live with dignity?
Sources:
https://en.wikipedia.org/wiki/Mincome
https://humanrights.ca/story/manitobas-mincome-experiment
https://www.bbc.com/worklife/article/20200624-canadas-forgotten-universal-basic-income-experiment
Poverty Advocacy Nanaimo 