RRU in the media: High cost-of-living calls for basic income guarantee

Amid a cost-of-living crisis in Canada, some experts are advocating for a basic income guarantee. Different from a universal basic income, a basic income guarantee is a cash transfer targeted to those who need it, through a benefit that rises as income declines. 

Tracy Smith-Carrier, professor in the School of Humanitarian Studies and Canada Research Chair for Advancing the UN Sustainability Goals, and Elaine Power, professor of Sociocultural Studies of Sport, Health and the Body at Queen’s University, co-wrote an article for The Conversation on a basic income guarantee test in Ontario.  

The Ontario Basic Income Pilot was the most recent test of this model in Canada. The pilot – launched in 2017 – proved to be effective in improving participants’ mental health, stress levels and nutrition. However, the government likely caused more harm than good when it cancelled the pilot prematurely, suddenly thrusting participants back into poverty – an act of so-called “structural violence.” 

Here is an excerpt from the article:  

“Structural violence upholds the poverty, racism, sexism and other social inequities that lead to higher rates of illness, suffering and premature death. It is often invisible and can result from policy omissions, but the termination of the pilot was a public, deliberate decision. 

“By throwing participants’ lives and carefully laid plans into chaos, and thrusting them back into poverty, our research shows the Ontario government’s policy decision caused significant harm. 

“Our research is consistent with a larger body of evidence demonstrating that unconditional cash transfer programs, like basic income, can improve mental well-being. As young people are more vulnerable to the mental stress resulting from financial insecurity, these programs provide the necessary protection to mitigate the lifelong damaging impacts of childhood poverty.” 

Read the full article in The Conversation.