Minimum Guaranteed Income resolution passes at Liberal Party Convention

Federal and provincial governments agree to discuss possibility of basic income

Minimum guaranteed income, or basic income, is defined as, “an income unconditionally granted to all on an individual basis, without means test or work requirement” by the Basic Income Earth Network. Under Canada’s previous Conservative government, the idea of minimum guaranteed income was out of the question, but today’s Liberal majority has brought it to the table for discussion.

The official consideration of basic income in Canada began with the recent passing of a Manitoba-based resolution for “the Liberal Party of Canada, in consultation with the provinces, [to] develop a poverty reduction strategy aimed at providing a minimum guaranteed income,” as written on the 2016 Liberal Biennial Convention website. It has now officially become policy, so although it is uncertain whether minimum guaranteed income will really be a part of Canada’s future, it being prioritized by the government.

The resolution fittingly comes after 2015’s Liberal campaign, which largely focused on supporting the middle class and lessening income inequality.

“In the campaign, there was quite a bit of talk about making sure that there would be methods to reduce inequality, that would benefit the economy and help sustain families, stimulate job growth and better support citizens,” says Laura Dixon, president of the riding association for the Liberal Party of Canada in Delta. “This would be the same kind of intention, I’m sure, that Manitoba had in terms of moving things forward.”

She adds that providing minimum guaranteed income could actually “reduce a lot of the costs that the government has to pay,” to address poverty, since many of their current financial assistance programs could be retired in its place. At the same time, she supports helping “people who have trouble achieving education, jobs, and health outcomes,” as a collaboration between the federal and provincial government.

A federally and provincially-funded project conducted in 1970s Dauphin, Manitoba reinforces Dixon’s view that the benefits of basic income may outweigh its risks. The project, Mincome, which ran from 1974 to 1979, acted as a means of discovering whether minimum guaranteed income would cause a disincentive for its recipients to join the workforce.

Although the final results were never released to the public, an analysis of the program published in 2011 by Evelyn Forget concluded that levels of sickness and poverty in its recipients dropped considerably during Mincome’s five-year run. There is also proof of the workforce shrinking slightly during that time, although it is suggested that many of those who left did so to get an education with their newly-acquired supplementary income.

Joyce Murray, the Liberal MP for Vancouver Quadra, says she is “really supportive” of the idea of minimum guaranteed income, seconding Dixon’s point that it could “replace the patchwork of programs at both the federal and the provincial level” that are aimed towards fighting poverty. In her opinion, it could also bridge the gap between the rich and impoverished, which is especially prevalent in Vancouver.

“It’s in the public good for everyone in society to reduce the income inequality gap, and minimum guaranteed income is one way to do that,” she says. She notes, however, that she also wants to “reinforce that our government has already done two very significant things in its fiscal policy that do reduce income inequality,” namely, providing the Canadian Child Benefit and the Guaranteed Income Supplement.

Canada Child Benefit ensures “that a family with less than $30,000 in net income will get a benefit of up to $6,400 [annually, or $533 per child] for each child under six, and that’s tax-free,” in Murray’s words. As defined on the Service Canada website, the Guaranteed Income Supplement (GIS) is “a monthly benefit that provides extra money to low-income seniors,” with the amount of GIS paid varying based on the recipient’s marital status and income. There are other programs for financial assistance available to Canadians in need as well.

Before minimum guaranteed income is provided, the government must consult as to what the obstacles concerning it are. For instance, one of the points of minimum guaranteed income is to render programs for minorities in need of financial assistance obsolete. Yet, by getting rid of them, vulnerable demographics may be denied resources that they depend on.

A common concern raised about minimum guaranteed income is whether it will discourage citizens from having a steady job, although there are also debates as to whether the amount given should raise with inflation and how it should be funded.

The number proposed by the Basic Income Canada Network, a congregation of academics and activists, as minimum income for each individual is $20,000 a year. Whether Canadian government will meet or surpass that suggestion, if they provide minimum guaranteed income at all, is uncertain.

Minister of Families, Children and Social Development Jean-Yves Duclos, who is responsible for reducing poverty, could not be reached for an interview.