Eliminating poverty is possible
A basic income guarantee implemented in P.E.I. would benefit everyone
Editor's note: This is the fifth and final article in a series of five commentaries authored by members of the P.E.I. Working Group for a Livable Income. The previous articles appeared in the preceding four Wednesdays, beginning Jan. 31.
Poverty makes people sick. This reality not only puts additional strain on the individual and on our already precarious healthcare system, but makes it more difficult for those experiencing poverty to thrive and sustain employment in a competitive labour market.
Anyone who has experienced the dread of not knowing if you will be able to pay your rent or afford to put food on the table for your family, knows the absolute stress and harm this causes.
Being able to consistently meet one's basic needs is essential for maintaining mental and physical health and well being. Even if you have not personally experienced living in poverty, we can all imagine how difficult it would be to maintain a job when you can’t afford comfortable shoes, or healthy food, or repairs on your car to get there.
UPGRADED SKILLS
A guaranteed basic income would provide an unconditional income-tested cash transfer to adults living in families with income under a certain threshold.
In previous demonstrations of basic income, such as the Mincome program in Manitoba in the 1970s and the recent but short-lived Ontario basic income pilot, not only did most people continue to work for pay, but many took the opportunity to go back to school, retrain and improve their future life chances.
In the evolving, knowledgebased creative economy where we are also seeing an increased need for skilled workers in construction and trades, creating a foundation from which more people can gain needed credentials is a benefit not only for individuals and families, but for our economy and society.
CYCLE OF POVERTY
But can we afford a guaranteed basic income? The recently released report “A Proposal for a Basic Income Benefit for Prince Edward Island” shows that we can.
This report uses a new approach by applying the census family which decreases the overall program cost by almost 40 per cent while continuing to effectively reach those living in poverty.
Additionally, a significant amount of public funding and resources are currently allocated to social assistance administration focused on first identifying the deserving from the notdeserving poor, and then monitoring those deemed deserving to ensure they continue to be “deserving” of support.
This means-tested approach traps people in a cycle of poverty by providing low-level supports that keep people below the poverty line, and creates disincentives to work for pay by simultaneously creating fear that one could lose what little support they have access to at any moment.
REDUCED COSTS
A basic income simplifies access by creating a floor below which nobody can fall. Administering a basic income through our taxation system would drastically reduce costs while supporting our skilled and caring public service to work to their full potential and focus on helping people succeed and live well.
Poverty is not simply an individual trouble, but a farreaching societal issue that has negative repercussions for everyone. We must stop blaming and shaming those experiencing poverty and recognize that we will all be better off when everyone can live with basic health and dignity.
The elimination of poverty is possible. A guaranteed basic income is the way forward, and P.E.I. is the best place to start with a 5-7 year demonstration project that will involve a rigorous evaluation process from Day 1.