Pandemic shows need for basic income

COVID pain could have been softened: author

OTTAWA — A leading Canadian expert on government-funded basic incomes says the oft-debated idea could have averted much of the economic effects of COVID-19.

Evelyn Forget says a basic-income program would have provided help to hard-hit Canadians automatically instead of forcing governments to set up emergency aid in a rush.

Basic income is essentially a no-strings attached benefit governments provide to citizens that sets a financial floor for individuals and families.

The University of Manitoba professor lays out her pandemic-related analysis in an update to her book, “Basic Income for Canadians,” which was released Tuesday, which also argues such a program is neither a silver bullet nor a replacement for social programs like health care.

Abasic income would act as an automatic stabilizer, meaning it would expand payments when incomes crash and then roll back when things rebounded. Those who needed ongoing support would get it.

The parliamentary budget office estimated a six-month basic income program this year could cost between $47.5-billion and $98.1-billion. Some of that could be covered by redirecting funding from existing anti-poverty programs, and the price would be further offset by what the budget office said was $15 billion in anti-poverty tax measures that could be repealed.

The most recent figures for the CERB show that as of Oct. 4, just after it started winding down, the program had paid out more than $81.6 billion since March to 8.9 million people.

“That greater awareness of the limitations of the programs we had led many of us to start thinking about ideas that used to be thought of as far-out fringe ideas, and basic income I put into that category for a lot of people,” Forget said.