economy

Is Universal Basic Income Really Coming To Canada?

It's a concept that is gaining popularity in nations around the world. Is Universal Basic Income Really Coming To Canada? Giphy

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Jurisdictions across the United States have begun to explore programs that provide a “universal basic income” to some citizens — albeit on a very limited basis. But America’s neighbor to the north appears poised to dive deep into the UBI pool with its latest effort to tackle systemic poverty.

Identifying the term

Before we get into what Canada is planning, let’s take a moment to broadly explain what UBI is. The term was initially coined to describe any government-backed program that hands out a payment to citizens regardless of any other income those individuals might receive.

But in recent years, many officials have tried to tailor such programs to identify those in most need and provide most, if not all, of the UBI funds to those individuals.

And that appears to be the mission of the post-COVID Canada Emergency Response Benefit.

A long UBI history

Canada has been pursuing basic income programs 50 years, but the details have changed from one strategy to the next.

During the mid- to late-1970s, Manitoba unveiled its “Mincome” program that guaranteed a minimum monthly income that aided the unemployed at a higher rate than those with other sources of income. The benefits have been anecdotally tied to reduced mental health issues and higher school attendance rates.

More recently, Ontario enacted a limited pilot program impacting 4,000 people in Hamilton, but it was subsequently halted. Then, Quebec instituted a version of its own to benefit those with “severely limited capacity for employment.”

A nationwide plan

Last week, the Canadian Senate began reviewing a national basic-income framework that could expand on CERB, making the benefits permanent and potentially lifting some Canadians out of poverty.

The details still need to be hammered out, but this is the latest evidence that the push for UBI isn’t going away.

Chris Agee
Chris Agee October 23rd, 2023
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