WE NEED A BASIC INCOME IN NOVA SCOTIA 2018 Shaw Lecture Income - - PowerPoint PPT Presentation
WE NEED A BASIC INCOME IN NOVA SCOTIA 2018 Shaw Lecture Income guarantees, freedom and global security Elizabeth Kay-Raining Bird & Pierre Stevens Basic Income Guarantee - Nova Scotia https://www.facebook.com/basicincomeNS/ Topics
2018 Shaw Lecture Income guarantees, freedom and global security Elizabeth Kay-Raining Bird & Pierre Stevens Basic Income Guarantee - Nova Scotia https://www.facebook.com/basicincomeNS/
1.
BIG-NS and its activities
2.
The Nova Scotia context
3.
Why a Basic Income in Nova Scotia?
4.
Funding a Basic Income
In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty.
BIG-NS
Since 2015 https://www.facebook.com/basicincomeNS/ Member, Basic Income Canada Network https://www.basicincomecanada.org/
in Nova Scotia
BUT, we do not want just ANY Basic Income Guarantee
system
BIG-NS, 2017
minimum wage, labor, housing…
integrated supports
mental health and addiction services
BIG-NS, 2017
April 2016 October 2017 Next conference April 27, 2019 Halifax public library Speakers include Evelyn Forget Catherine Mah
indigenous
Federal Provincial Municipal Indigenous Scott Brison Andy Fillmore Guy Caron Megan Leslie Randy Delorey Labi Kousoulis Joachim Stroink Brendan Macguire Maureen MacDonald Lisa Roberts Susan LaBlanc Gary Burrill Barbara Adams Community Services staff: Nancy MacLellan Brandon Grant Rhonda Judge Mayor John Savage City councillors: Waye mason Shawn Cleary Lisa Blackburn Sam Austin Lindell Smith Lorelei Nicoll Tony Mancini Richard Zurawski Steve Craig Russell Walker CPED Native Council of Nova Scotia
government and community partners to complete a feasibility study looking in detail at how to implement a basic income.” (p. 32)
“Implement a basic income as a means to provide a living income for low-income and marginalized populations.” (p. 46)
Building Poverty Solutions: Ideas for Action. A Community Report. HRM, 2018
Because poverty rates in Nova Scotia are high, poverty is racialized, & vulnerable groups are over-represented
CCPA: 2017 Report Card on Child & Family Poverty https://www.policyalternatives.ca/publications/reports/2017-report-card-child-and-family-poverty-nova-scotia
21.6% overall
CCPA, MacDonald & Wilson, 2016, https://www.policyalternatives.ca/publications/reports/shameful-neglect
African Nova Scotians
Children
Youth, 18 – 24
Stats Canada (2017) https://www150.statcan.gc.ca/n1/pub/75-006-x/2017001/article/54854-eng.htm
Because poverty damages people
The “damages [poverty] caused to human beings' life chances, to communities and to social and economic productivity and progress are clear, and cannot be ignored. Poverty is the best predictor of early illness, early hospitalizations, longer hospital stays and earlier death. It is a reliable predictor of substance abuse, food insecurity, poor education outcomes, and for some, trouble with the law.” (p. 16).
Segal, H. (2016). Discussion paper on Ontario pilot project. https://www.ontario.ca/page/finding-better-way-basic-income-pilot-project-ontario
50% of illnesses are caused by factors related to poverty: social determinants of health
Canadian Medical Association https://www.cma.ca/En/Pages/health-equity.aspx
Because social assistance rates and minimum wages are not enough
NS
Total Welfare Incomes 2016 LICO Poverty Gap Welfare Income as % of LICO Single employable $7,349 $17,485
42.0% person with disability $10,181 $17,485
58.2% single parent,
$17,727 $21,281
83.3% couple, two children $26,429 $33,060
79.9%
Tweedle, Battle, & Torjman (2017), Caledon Institute of Social Policy; http://www.caledoninst.org/Publications/PDF/1086ENG%2Epdf
Note: LICO = Least generous measure of poverty (compared to LIM, Market Basket)
(*Stats Canada, 2018 https://www150.statcan.gc.ca/n1/pub/75f0002m/75f0002m2016002-eng.htm https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1110024101&pickMembers%5B0%5D=2.2 ) Family size Rural NS LICO-BT Halifax LICO-BT 1 Full-time Worker Income Before Taxes 1 $17,175 $21,487 $20,020 2 $21,382 $26,748 $20,020 4 $31,915 $39,926 $20,020
Because poverty is expensive
MacEwen & Saulnier, 2010, CCPA
In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty.
BIG-NS
Because paid work is often insecure and increasingly precarious
Lewchuck et al., 2015
Because providing more income reduces poverty and its negative effects
Stats Canada, 2012 http://www4.hrsdc.gc.ca/.3ndic.1t.4r@-eng.jsp?iid=23#M_4
Guaranteed Income Supplement (GIS): 1976 Spousal allowance: 1975, 1985 Allowance for survivor
Because it works: It’s not all about money but it’s always about money
the community
e.g., Forget, E. (2018); Forget, E. (2011); Forget, E. (2013)
“Whatever you do, you must have a consciousness
“We need to discover ways of generating collective self-care” Angela Davis
Pierre Stevens
Basic Income Analysis, March 15, 2018
Basic Income Analysis, March 15, 2018
The cost to provide each household with a “Guaranteed Minimum Income” (GMI) @ 100% LICO ($16,730)
Basic Income Analysis, March 15, 2018 The cost to provide each household with a GMI @ 100% LICO ($16,730)
Program Costs = $2.1 billion
Basic Income Analysis, March 15, 2018 The cost to provide each household with a GIM @ 100% LICO ($16,730) Program Costs = $2.1 billion
Concluded that GMI options are either highly expensive and inadequate
Basic Income Analysis, March 15, 2018 The cost to provide each household with a GIM @ 100% LICO ($16,730) Program Costs = $2.1 billion Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
238.5
3.7
26.0
66.0
7.8
23.0
10.3
7.3
9.5
17.1
Only Department of Community Services budget considered No other NS government department budgets considered No consideration of the beneficial effects of a Basic Income
No federal cooperation Top-Up Model: winners and losers!
Not just a Top-Up Model: A Negative Income Tax Model Not only the Department of Community Services’ responsibility Not only a Nova Scotia responsibility Society at large will benefit!
vary:
due to higher earnings
benefit.
additional dollar earned, the worker will receive 50% less in Negative Income Tax payments
1.
Someone with an income of $0 would receive an NIT payment of $20,000
2.
If they take a job that paid $20,000/year, they would receive a top-up of $10,000/year
3.
If they take a job that paid $30,000, the top-up would be $5000
4.
Once they would receive $40,000/year, they would receive no top-up
Funding for a Basic Income must be a joint Federal- Provincial responsibility
The broader lens
Budgetary savings across departments
million.
million budget.
budget
drop of 8 % in Hospital Costs): 8 % of 4.2 billion = $330 million
million (MacEwen & Saulnier, 2010)
million (income Assistance Field Staff)
Total: ~$713 - $846 million
According to Department of Community Services Basic Income Analysis, $828 million is the GMI cost @ 50 % LICO So we could pay for a 50% LICO Basic Income This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue
Saulnier, 2010)
(MacEwen & Saulnier, 2010)
These future revenues of $240-$320 million are a return on investment if we had a GMI @ 50% LICO
Economic stimulation Canada’s GDP increased by 0.5% after the introduction of the Canada Child Benefit. If we, conservatively, estimate a similar effect from the introduction of a BI in Nova Scotia, this could result in an increase of Nova Scotia’s GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC “the House” )
Provincial Revenue (some of the In-Scope Programs):
$ 3.7
$65.9
$ 7.8
$10.3
$ 7.3
@ 50% LICO Basic Income on a stand alone basis, but will financially benefit from it.
DCS’s model)
income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equity.”
(UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistance.”
(Stevens & Simpson, 2017)
= $9954
(Stevens & Simpson, 2017)
That the Nova Scotia government immediately initiate a progressive, interdepartmental Feasibility Study in cooperation with partners from the Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton, Corak, Forget, Lewchuk & Raphael (2018). The Poverty, Inequality, and Job Challenge: The Case for Basic Income in Canada. Lindsay, ON: Fireside Publishing.
Final Thought There are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality. I doubt it. We go from government programs to raise benefits, to those that implement austerity measures. It's been a step forward, then a step back. As the quote from Senator Croll demonstrates, we haven’t moved the yardsticks much in decades. Another illustration of this relates to the Canada Child Benefit. This is a substantial measure taken by the Trudeau government which touts that it is taking 300,000 children and their families out of
still in poverty? When will their turn come? Governments, of any political stripe, bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises. Incrementalism has not worked enough for those in need. People need a firmer base from which to move forward in their lives. It’s time to end poverty and reduce inequality in this country we are blessed to live in. It’s time to improve equality of opportunity and better sharing of
Basic Income in Canada.