Economics Essay on Basic Universal Income Concept in Canada

Studies have established that one in every eleven Canadians lives in poverty despite the welfare programs that are in place. (Willmore, 2004) The concept of universal basic income involves providing a set basic income to all adults for their upkeep and livelihood whether they are working or not. It seeks to aid people without jobs to take care of their needs. Life without income in Canada could be very stressful considering the cost of living. The cost of living involves expenses such as rent, food, and clothing (Willmore, 2004). These are the basic human need. It is impossible to survive without a means of meeting these wants. Important to note, is that UBI does not mean doing away with convectional full-time occupation, but it seek to ease life in the event of unavailability of the required employment. The idea of UBI is associated with socialism ideologies which are based on sharing the much or little that is available. (De Wispelaere & Stirton, 2012) UBI in Canada could come in handy for people who live from hand to mouth. UBI provides a bare minimum amount for basics. Changing jobs from time to time is common in Canada particularly among the population without superior academic credentials. UBI could be a great relief for such people while in between jobs. On the other hand from a capitalist point of view, that is based on competition for the much or little that is available, the concept of UBI take tremendous bashing (Tcherneva, 2006). Capitalist notions are widespread in Canada. Emphasis is put to working hard to succeed. Hard work for success is an undisputable concept, but it should realize that to some people its about a dignified life rather than success (Willmore, 2004). At no fault of theirs, some people will find it hard to cater for their basic needs. It is not fair that some people should live extravagantly, while others can hardly cope. That does not mean that everyone should be given whatever they want, but its about providing people with challenges with a lifeline.

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Justifying Universal Basic Income

Universal basic income should be introduced in Canada and elaborate studies conducted on the programs ability to reduce poverty. It is important to note that, under the UBI concept all citizens of Canada could receive a monthly stipend regardless of their financial status (De Wispelaere & Stirton, 2012).There is a majority of people that earn just enough to spend on their needs. An additional monthly remuneration would mean they could save (Van Parijs, 2004). Saving is a tested and proven method of reducing poverty. The culture of saving has been documented in various stories of from rags to riches.It is evident that a universal basic income program would be helpful to a lot of people in Canada. Van Parjis asks if a UBI makes sense in Europe and in less developed countries, why should it not make equally good (or perhaps better) sense in North America? However, there is worry that such a program would encourage laziness and reduce productivity (Van Parijs, 2004). These concerns sound logical. Interestingly, studies conducted have conclusively indicated that people have worked longer and harder when they know they have a financial lifeline at all times.(De Wispelaere & Stirton, 2012). Due to the massive economic disparities between the Canadian people, a financial stipend would provide encouragement for less privileged persons to work hard and match their counterparts (Van Parijs, 2004). Welfare programs in Canada do not adequately cater for the needs of the poor Canadians. As a result, they keep some people dependent on them entirely (Van Parijs, 2004). UBI could replace these programs and provide effective drive towards financial independence of each Canadian. The welfare programs are not adequate in pulling people out of poverty but rather traps them in that situation. The programs also involve scrutiny into who is eligible for the programs and who is not. These could consequentially discriminate against people who are in need of the support. UBI come with the freedom of decision making on the expenditures for the beneficiaries (Willmore, 2004). Careful planning could gradually improve their living standards. This aspect could be counterproductive too in the sense that some people could use the money for unnecessary expenditures and hence remain deprived. Some factions of the society consider UBI and the welfare programs as handouts. Whether handouts or not, they could be crucial to some people. The more privileged factions of the society, the business class and working class in Canada receive handouts from the government in the form of tax exemptions and tax reliefs (Willmore, 2004). Under the universal basic income concept, concerns may arise as to why people who have jobs and the rich would receive the stipend alongside the less privileged. It should be noted that for high-income earners the stipend will be offset by the income taxes. Another interesting aspect is the replacement of workers with machines. Studies show that 47 percent of job holders today face the risk of replacement by machines in the next couple of years (Van Parijs, 2004). It, therefore, calls attention to a concern of how people will make a living under such circumstances. In fact, this is an indication that the UBI concept could be forced on nations even if they may not wish to conform to it at the moment.

Best Roll-out Practices for UBI

The roll out of the UBI in Canada could save on well-being programs administration costs. Welfare programs involve scrutiny on people, and constantly follow up on the financial status of those enrolled. The nature of the UBI program negates the need for such activities and would, therefore, save on the costs involved in the process of these administrative activities (Tcherneva, 2006). Proper legislation planning should be done for the roll out of the UBI program in Canada so that it is effective in solving the challenges faced by poor and jobless Canadians. Canada should engage in constructive conversations geared towards easing the burden on poor Canadians. The conversations should also involve the design to be used. The design would include aspects such as benefit levels, modes of payments and the frequency of payments (Willmore, 2004). The conversations and legislation should also address the welfare programs that might be scrapped off on the introduction of a universal basic income. It might also be important to retain some of the welfare programs that address critical issues. The conversations will seek to justify or discredit the retaining or scrapping off of some of these welfare programs. Issues of standardization of the basic income should also be addressed the ensure equality (Van Parijs, 2004). The amounts paid should be according needs and the difficulty of living in different geographical locations, and under different humanitarian conditions. The evidence on the positive impacts of the universal basic income program is overwhelming. There have been rising interests about the idea in Canada, and with all the discussions being initiated about it; it might be starting sooner than later. The amount to be given should consider the impact on the nations economy (Tcherneva, 2006). It should be sustainable for the country so as not to affects other aspects of running the country such as service delivery and development.The constant growth in the economy of Canada should include all Canadians, and they should be able to reap from it. It would not be practical that Canada would take pride in being a rich country while some members of its population live in poverty.

REFRENCES

De Wispelaere, J., & Stirton, L. (2012). A disarmingly simple idea? Practical bottlenecks in the implementation of a universal basic income. International Social Security Review, 65(2), 103-121.

Tcherneva, P. R. (2006). Universal assurances in the public interest: evaluating the economic viability of basic income and job guarantees. International Journal of Environment, Workplace and Employment, 2(1), 69-88.

Van Parijs, P. (2004). Basic income: a simple and powerful idea for the twenty-first century.Politics & Society, 32(1), 7-39.

Willmore, L. (2004). Universal pensions in low income countries.