A new report by the United Way Perth-Huron's Social Research and Planning Council suggests the COVID-19 pandemic is showing the need for a Basic Income in Canada.
A basic income would give money to low-income Canadians to meet their basic needs without conditions unlike current programs.
Executive Director for the United Way Perth-Huron, Ryan Erb says income is the number one social determinate of health and when a person has a stable income they can live a healthier and better life.
The report states:
"Basic Income reduces stress, improving health and reducing crime, all which are good for society. Rural areas and small towns would also be the biggest winners economically, from a Basic Income because small towns and rural regions would see the largest stimulus effects of a Basic Income."
The report says it is economically sustainable. It cites a Parliamentary Budget Office report from 2018 that put the cost of such a program at $46 billion a year once the reduction in other programs like Employment Insurance and Old Age Security is factored in. That does not include the economic stimulus that would be generated by the increased purchasing power of recipients."If we think only of the initial cost of the program...we won't get deep enough to understand that the long term benefits of it actually balances out substantially in favour of moving ahead," Erb said.
Critics have suggested a basic income would discourage people from trying to find jobs but Erb dismisses that saying the current system is so punitive it's holding people back.
"So basic income would help us replace systems that are policing people that are on income supports and help them to focus on their future," Erb said.
The report cites numerous studies that show people receiving a basic income continued to work and also cites a McMaster University report on Ontario's pilot program that showed those who did stop working, did so to go back to school.
Erb hopes the report "ignites the conversation" among local community leaders and organizations and that they will read the report and understand why it's needed.
"We just want people to really take the time to look at the policy more fully the benefits to society," Erb said. "A legacy to COVID-19 would be to improve the lives of every Canadian and this is one of the most important policies to do so."