Lohas Ottawa, Canada reported on June 18, local time: Canada’s universal basic income bill (guaranteed basic income) has been hotly debated by the Senate and Parliament in recent months.
A basic income of $2,000 per person per month (approximately RMB 12,000) has always been a topic of concern to many Canadians. On June 7, Congress held a debate.
Major think tanks and economists have also been conducting research on this basic income project.
According to Global News, a new study published on Thursday (June 16) said that Canada’s guaranteed basic income will help alleviate poverty and be beneficial to the poor, but it may also make some provinces’ fiscal sustainability Continuity and labor supply are at risk.
A report by the Economic Council of the Atlantic Provinces, an economic think tank based in Halifax, said sending monthly checks to people would ensure everyone has enough money to meet their basic needs, including food, housing and clothing. .
Research has found that such a universal payment would reduce inequality, build financial security and encourage savings.
However, the report says that a basic income scheme - whether needs-based or universal - would be more complicated than it seems to recoup the amount paid to high earners through taxes.
It said funding for a basic income scheme would likely require tax increases or government spending cuts.
APEC senior economist Lana Asaff said: "One of the biggest risks is how to fund this program in the long term. "It's quite expensive."
A report by the Parliamentary Budget Officer It is estimated that Canada's guaranteed basic income will cost approximately $88 billion during 2022-2023.
Assaf said certain groups in society could be worse off if social programs were cut to help pay for a basic income.
The risk may also be greater in certain areas, such as the Atlantic region, she added.
At the same time, this universal guaranteed income may also have an impact on job disincentives, and there are concerns that it may prevent people from working, Assaf said. "That can indeed be a challenge, especially in low-wage industries where we're seeing a lot of labor shortages."
The idea of a guaranteed basic income program has seen a lot of renewed interest during the pandemic.
The rollout of the Canada Economic Recovery Benefit (CERB) and other pandemic benefits has sparked discussions about the adequacy of the social safety net.
APEC reports that in December 2021, Senator Kim Pate and Congressman Leah Gazan introduced legislation aimed at establishing a national framework for a “guaranteed livable basic income.”
"Basic income is a concept that has been around for a while... but it is becoming a more mainstream topic," Assaf said. "There are potential advantages and disadvantages to the plan, but some are more theoretical in nature."
Canada's basic income plan is still in the discussion stage and has not yet tested basic income.
In 2018, the BC provincial government commissioned a panel of experts to study a basic income, including the program's feasibility and potential to reduce poverty.
Research finds that moving to a basic income is complex and not necessarily the most cost-effective way to achieve poverty goals.
Ontario launched a three-year basic income pilot project in 2017, but it was canceled before completion after the provincial government changed.
reports that the APEC panel said income support targeting certain groups may be a better option.
Do you think the plan to send each person $2,000 per month in Canada is feasible? Is the money distributed enough?
