Académique Documents
Professionnel Documents
Culture Documents
Possibilities
and Prospects:
The Debate Over
a Guaranteed
Income
By Margot Young and
James P. Mulvale
Possibilities and Prospec ts: The debate over a Guar anteed Income
An Economic Security Project Report
About the authors
Margot Young is Associate Professor of Law at the
University of British Columbia. She is a research
associate with the CCPA–BC Office. James P.
Mulvale is Associate Dean of the Faculty of Social
Work at the University of Regina. He is a research
Please make a donation... Help us continue to offer associate with the CCPA–Saskatchewan Office.
our publications free online.
Acknowledgements
We make most of our publications available free
on our website. Making a donation or taking out The authors extend sincere thanks to Seth Klein and
a membership will help us continue to provide Bruce Wallace for valuable and insightful feedback
people with access to our ideas and research free during the course of the writing of this report. We
of charge. You can make a donation or become a also thank Marc Lee specifically for his input into
member on-line at www.policyalternatives.ca. Or general costing of a guaranteed annual income.
you can contact the National office at 613-563-1341
for more information. Suggested donation for this Community partners, consulted in the initial phase of
publication: $10 or what you can afford. this report, are gratefully thanked for their time and
thoughtful comments on the idea of a guaranteed
annual income. Specifically, we acknowledge the
isbn 978-1-897569-56-6 important contribution made by Robert Arnold, Elsie
Dean, Mike Eso, Susan Henry, Robin Loxton, Bonnie
This report is available free of charge from the CCPA Morton, Jean Swanson, Joseph Tietz, and Bruce Wallace.
website at www.policyalternatives.ca. Printed
Thanks, as well to Robert Arnold, Marjorie Griffin
copies may be ordered through the National Office
Cohen, Michael Goldberg, Marc Lee, and Jane
for a $10 fee.
Pulkingham for reviewing this report and for
410-75 Albert Street, Ottawa, on k1p 5e7 providing very helpful feedback.
tel 613-563-1341 fa x 613-233-1458 Finally, we wish to thank our research assistants on
em ail ccpa@policyalternatives.ca this project: Patricia Cochran and Stephen Buckley.
www.policyalternatives.ca
The opinions and any errors in this paper are those
of the authors and do not necessarily reflect the
views of the CCPA or the funders of this report.
This study is part of the Economic Security Project, a
research alliance led by the Canadian Centre for Policy
Alternatives BC Office and Simon Fraser University. The
ESP is a five-year research initiative studying how public
policy changes in BC are affecting the economic security
of vulnerable populations. The ESP is funded primarily
by a grant from the Social Sciences and Humanities
Research Council of Canada (SSHRC) through its
Community-University Research Alliance Program.
Thanks also to the Social Rights Accountability Project
(funded by the Social Sciences and Humanities Research
Council, Community-University Research Alliance
Program) and the University of British Columbia’s
Faculty of Law for their financial support of this project.
The idea of a guaranteed income has a long • Suggests a number of other social
and respectable history in Canadian political welfare measures that should be central
and economic thought. Recently, in the face of elements of any reform program, but that
both wide criticism of the Canadian income se- guaranteed income debates often ignore.
curity system and growing recognition of the The term “guaranteed income” refers to a spe-
unacceptability of current poverty rates, there cific although broad category of social reform.
has been a resurgence in calls for implementa- As a starting place for discussion, the idea of a
tion of a Canadian guaranteed income. But the guaranteed income is used to signal reform pro-
idea is a controversial one; progressive activ- posals that advocate some variant of an income
ists, academics, and politicians disagree about benefit scheme in which the state provides a
the desirability and the practicality of a guar- minimum level of basic income on a continu-
anteed income. ing basis to every adult, irrespective of personal
This report: circumstances or need, with no or very few con-
• Traces the history of guaranteed income ditions attached.
proposals in Canada; Proponents of a guaranteed income cite a
• Catalogues both the most common reasons range of reasons supporting the idea:
supporting advocacy of a guaranteed • A fix to poverty;
income and the most telling concerns • Liberty and individual opportunity;
raised by the notion;
• Social and democratic citizenship;
• Provides an overview of basic dimensions
• Gender equality;
along which proposals for a guaranteed
income differ and sets out models that • Shared social ownership;
capture much of the range of proposals in • A flexible and just labour market; and
the current debate; and • Environmental sustainability.
Possibilities and Prospec ts: The debate over a Guar anteed Income 3
No single overview model is representative of all out, although to different degrees depending
proposals for a guaranteed income. Academic upon the type of guaranteed income proposal
and political writing on the idea is vast. Three under consideration. Traditionally, three con-
working models of guaranteed income proposals cerns predominate:
illustrate the range of proposals across the four • Work disincentive effect — Receipt
criteria of universality, conditionality, adequacy, of a generous and unconditional benefit
and integration. These models are: may mean some individuals will opt out of
1. Minimalist-libertarian model — participation in the paid labour market.
Strong universality and unconditionality of • Reciprocity — An unconditional benefit
guaranteed income set at a low benefit level will give significant public resources to
with minimal provision of other social individuals who may contribute nothing to
goods and income support. society in return.
2. Mixed welfare model — Guaranteed • Cost — A substantial guaranteed income
income models that closely resemble scheme may be too expensive to be
existing social assistance (welfare) schemes politically acceptable or possible.
with partial and conditional benefits, and a
Added to these problems are additional ques-
range of both benefit levels and integration
tions about how guaranteed income proposals
with other social programs.
may reinforce the gendered division of labour and
3. Strong basic income model — Strong women’s economic, civil, and political subordina-
universality and unconditionality paired tion. Equally concerning are observations about
with more generous benefit levels and how guaranteed income proposals lend support
variable integration with other programs. to regressive and unjust neo-liberal forms of so-
Models 1 and 3 incorporate a guaranteed income cial and economic organization.
as a stand-alone program that is relatively dis- Practical implementation of a guaranteed in-
tinct and prominent in the overall social welfare come may result in unacceptable political com-
architecture. The general intent of Model 1 is to promises, such as in inadequate benefit levels,
downsize the social welfare state, but also to keep partial implementation that forestalls more radi-
the poor from starving. Model 3, on the other cal progressive change, and selective application
hand, includes proposals with more ambitious to only the “deserving poor.”
aims of redistributing wealth and establishing The paper concludes by noting that poverty is
social solidarity. Both of these models are rela- more than the simple lack of financial resources.
tively simple in design, but vary in terms of cost: While absence of money is an essential feature
Model 1 stipulates minimal benefit levels while of poverty, social exclusion as well as inadequate
Model 3 requires a relatively generous benefit. access to public goods, networks, and political
Model 2, on the other hand, seeks to guarantee capital are all part of a fuller notion of poverty.
a minimum level of income for all through a Such an understanding of poverty means that a
patchwork quilt of traditional income support range of measures will be key to effective wel-
programs paired with a more limited guaranteed fare reform, including:
income. Of course, no real proposal necessarily • Enhanced collective provision of essential
maps exactly onto any one model, but instead will public goods;
mix and match different elements of each. • Labour market policy reform; and
A number of straightforward concerns about
• Public, affordable, and quality childcare.
the merit of the idea of a guaranteed income stand
Possibilities and Prospec ts: The debate over a Guar anteed Income 5
Introduction
Canada has rates of poverty that belie the eco- has cycled through Canadian social policy de-
nomic health and wealth of this country. Pock- bates on a regular basis and has never been far
ets of poverty persist for specific groups, and the below the political surface.
duration, depth, and rate of their poverty is often This discussion paper looks seriously at the
shocking. Far too many individuals in Canada suggestion of a guaranteed income and the chal-
lack decent housing, adequate nutrition, and full lenges such a reform poses for traditional ways
participation in our social and economic life. of thinking about income security issues in our
For decades now, commentators of all stripes country. A guaranteed income may indeed offer
have criticized the course of the Canadian in- a valuable opportunity to move out of the “very
come security system. A spate of reports from well worn ruts” of welfare reform.1 Or, the idea
various quarters—the academy, research insti- may promise more than it can deliver. These are
tutes, community coalitions—have called for the questions we take up.
re-visioning of Canada’s income security sys- The analysis and conclusions in this paper are
tem. This has been coupled with the growing the result of ongoing conversation and collabo-
recognition of poverty and income inequality rative work on the idea of a guaranteed income
as immediate concerns. There is consensus that by the co-authors. One of us (Young) is more of
change is needed, but no agreement as to what a sceptic and the other (Mulvale) more of a pro-
that change should be. ponent of guaranteed income. Both, however,
In this report the authors explore the sub- agree that the question of ensuring universal,
stantive merit and strategic appeal of a guar- unconditional, and adequate economic securi-
anteed income as one option for a fundamental ty for all people in Canada is critical. We have
re-thinking of current income support programs learned much from each other, as well as from
in Canada. The last five years have seen a resur- the academic literature, research data, and views
gence in calls for a guaranteed income, partic- of policy experts and community activists with
ularly from anti-poverty and equality-seeking whom we have engaged in the course of prepar-
groups. In fact, the idea of a guaranteed income ing this report.2
We use the term “guaranteed income” to refer to ever, the following characteristics of a strong var-
a general category of proposals for a minimum iant of a guaranteed income are useful markers.
level of income security for everyone in Cana- At this point in our discussion, this definition is
da. We use this rather general term in order to given to distinguish our subject from more com-
be inclusive of the full range of policy proposals monplace and existing versions of income secu-
that are part of the debate around this approach rity, such as provincial social assistance (welfare
to income security. programs). More nuanced discussion of the range
There are, of course, other commonly used of proposals follows later in the report.
labels—guaranteed annual income, citizen’s The purest or strongest versions of guaran-
wage, guaranteed livable income, basic income, teed income proposals generally specify a floor
social dividend, territorial dividend, state bo- or minimum level of core income provided on a
nus, demogrant—that appear in debate and lit- continuing basis by the state, to which everyone
erature. Within English Canada, the most com- is entitled irrespective of personal circumstances
mon term — despite a wide variance of detail in or need, subject to no or very few conditions of
what is specifically meant — is Guaranteed An- eligibility, such as work requirements.
nual Income. Debates on this topic in Quebec Under this model, an executive earning
have tended to use the French terms “l’allocation $150,000 would receive the same benefit as the
universelle” and “le revenu de citoyenneté.” In- minimum wage secretary sitting outside that ex-
deed, it is a sign of the vigour and extent of the ecutive’s office door, the unemployed but work-
argument that such a range of terminology ex- seeking individual handing that secretary a job
ists. We are faced with, as one commentator puts application, the at-home parent pushing twins in
it, “certain imprecision when it comes to defi- a stroller outside the office building, and the un-
nition and a surplus of choice when it comes to employed person not looking for work who is sit-
terminology.”3 ting at the café on the other side of the street.
Consequently, providing an initial starting But as we note repeatedly, there is great va-
definition of a guaranteed income is tricky. How- riety among guaranteed income proposals with
Possibilities and Prospec ts: The debate over a Guar anteed Income 7
both large and minor departures from the cen- guaranteed income schemes. For example, the
tral vision defined above. And, the line between Alaskan Permanent Fund Dividend, starting in
traditional income security provision and guar- 1999, has paid to each adult resident of Alaska
anteed income proposals can blur, depending an annual “dividend.” These payments are on a
upon the details of each. Consequently, in the small scale ($1,654 in 2007 for each applicant),
discussion that follows, we do provide a series but nonetheless have some features in common
of working models that categorize the range of with more generous and full guaranteed income
different proposals at play in the debate. proposals.4 In Canada, some claim that our na-
There is no full-fledged guaranteed income tional Old Age Security/Guaranteed Income
program in place anywhere in the world. A Supplement program, which ensures an annual
number of jurisdictions have programs that income for all those over 65, is a form of guar-
can be understood to be partial or fledgling anteed income.
One Belgian observer of the debate over a guar- guaranteed income proposal is not only
anteed income has described the idea as “a wash- and simply about ending poverty. The
ing powder that can be used in any washing ma- most powerful political arguments for
chine,” from right to left.5 Multiple and sometimes a guaranteed income are animated by
contending versions make debate about guaran- particular views of social justice, equality,
teed income varied, fascinating, and challeng- and freedom. A guaranteed income, by
ing. When endorsed simply as an appealing idea, providing a core income for all, is seen to
many applaud the notion. But when the details promise equality of opportunity in society.6
of a guaranteed income program are up for de- A guaranteed income, at an adequate level,
bate, the consensus weakens, often but not always allows an individual to realize for herself
along predictable ideological grounds. or himself the promises and opportunities
So what is the general appeal of an idea of a that society offers.
guaranteed income? The following arguments • A Means to Social and Democratic
are made. Citizenship: A guaranteed income is also
• A Fix to Poverty: First, and most touted as a way to ensure citizens can fulfil
powerfully, a guaranteed income holds out the civic duties we all carry as citizens.
the promise of alleviating (and perhaps We cannot aspire to civic virtues when
even eradicating) poverty—at least poverty we are preoccupied with mere survival.
understood simply as lack of income. Thus, an American political theorist,
This helps to explain the attractiveness of Carole Pateman, argues that the economic
guaranteed income in times of growing security a guaranteed income provides
economic inequality and persistent poverty is instrumental to self-government in
amidst affluence. intimate spheres (the family), the labour
• A Measure of Formal Liberty market, and, more broadly, in democratic
and Individual Opportunity: A mechanisms of political government.7
Possibilities and Prospec ts: The debate over a Guar anteed Income 9
• A Key to Gender Equality: one-time Alberta Prosperity cheque, paid
Poverty often means reinforcement of out in January 2006 to every resident of
discriminatory social and economic Alberta over 18 years of age, was billed as a
relations for women. For example, lack “resource rebate” to Alberta residents from
of income can force women to stay in the budget surpluses accumulated from the
abusive, unhealthy relationships with men. province’s resource-fuelled economy.
As well, the gendered division of labour, • A More Flexible and Just Labour
reflected in women’s disproportionate Market: Proponents argue that a
caregiving responsibilities, results in guaranteed income gives workers flexibility
women’s more vulnerable status in the more suited to the new global market. A
labour market. Income support programs guaranteed income gives an individual
that are conditional on specific patterns of a level of basic economic well-being
(typically male) labour force involvement independent of involvement in the paid
disadvantage women (and mothers, in labour force. This might mean a number
particular). A guaranteed income, it is of positive things. For example, workers
argued, encourages recognition of the full with a guaranteed income in hand could
range of human activities, including unpaid choose to start up a business, work part-
caregiving work, that are key to a cohesive time, job share, take a sabbatical, or
and rich society. An individual could make take an interesting but lower paid job. A
“real choices with reference to economic guaranteed income would “decommodify”
and non-economic activities.”8 Moreover, labour by providing individuals with the
the universality and conditionality that ability to devote their energies to socially
a guaranteed income offers can make necessary and valuable forms of work
traditional scrutiny of welfare recipients that are not paid. It might also enhance
unnecessary. The income security provided the power of labour to bargain effectively
by guaranteed income, it is argued, could with capital. For low wage, unattractive
advance women’s economic and social work, this may mean that workers will be
citizenship and equality. able to leverage better working conditions
• A Recognition of Citizens’ Shared or better pay. Thus a guaranteed income
Social Ownership: Many see a could prevent “desperation bidding” by
guaranteed income as recognition of workers with no other economic options.
individual citizens’ shared ownership • A More Environmentally
in the resources of a society. Fairness, it Sustainable World: Perhaps a system
is argued, requires that a portion of the of income security with guaranteed
goods of a society—its collective wealth income as its centrepiece could challenge
and resources—be shared with all who conventional wisdom on the need for
make up that society. The Alaska Dividend, never-ending economic growth as the
for example, is paid out of the Alaska precondition of general prosperity and
Permanent Fund, a fund created out of income security. Guaranteed income could
a percentage of the proceeds of mineral ensure a modest but sustainable standard
sales or royalties, and thus recognizes the of living for all, in the context of a more
ultimate “ownership” by residents of the “steady state” economy with lower levels
products of the state. Closer to home, the of consumption but greater economic
Possibilities and Prospec ts: The debate over a Guar anteed Income 11
The Contours (So Far)
of the Guaranteed Income
Debate in Canada
The history of the idea of a guaranteed income noted the presence of poverty in Canada “on a
in western thought is long and already well doc- much larger scale than most Canadians proba-
umented.9 In twentieth century Canada, more bly suspect.”10 The idea of a guaranteed income
specifically, the idea of a guaranteed income of emerged as one mechanism for addressing this
some sort has had resonance for a range of groups, newly acknowledged poverty. Indeed, 1967 had
at different times and in reference to different seen the introduction of the Old Age Security’s
reform agendas. The following chronology sets Guaranteed Income Supplement as an (initially
out some of this historical background to cur- assumed to be temporary) measure to reduce
rent debates. poverty among seniors.
In 1933 a Social Credit government led by The Special Senate Committee on Poverty,
William Aberhart was elected in Alberta. Aber- chaired by Senator David Croll, was created in
hart argued for regular cash payments made by 1968 to study poverty in Canada and recom-
the provincial government to all, as a means of mend effective policy measures to address the
economic stimulus and redistribution. But the problem. The Committee’s 1971 report recom-
promise of a “social credit” paid to all citizens mended a guaranteed annual income financed
proved difficult to implement, in part due to a and administered by the federal government,
lack of funds in the provincial treasury and op- and delivered through a negative income tax.
position from Ottawa. The plan ultimately ran The Committee wrote that this proposal met
afoul of judicial insistence that the federal gov- three basic requirements: “it provides adequate
ernment alone had constitutional control over income, it preserves the incentive to work, and it
currency and banking. Aberhart’s successor as is fiscally possible.”11 The guaranteed annual in-
Alberta Premier, Ernest Manning, officially aban- come was an idea, the Committee wrote, “whose
doned Social Credit doctrine in 1944. time had come.”12
The next significant moment came during the The proposed guaranteed income would
1960s. In 1968 the Economic Council of Canada, cover all Canadian citizens “who need it” (ex-
a former federally funded crown corporation, cluding those who were single, unattached, and
Possibilities and Prospec ts: The debate over a Guar anteed Income 13
Advocacy of guaranteed income programs, there appeared to be little political support at any
however, continued from a number of organiza- government level for a guaranteed income pro-
tions inside the mainstream social policy com- gram. The project resulted in no official findings,
munity. For example, in 1976 the National Coun- few results of the experiment were published, and
cil of Welfare, an advisory body to the Minister much of the data collected remain archived to
of Health and Welfare, released its Guide to the this day.19 Hum and Simpson attribute this out-
Guaranteed Income.18 come to “mundane factors such as money, tim-
One other interesting artefact from this pe- ing [and] changing policy preferences.”20
riod remains. In 1974, a year after the start of But by the mid-1980s the idea of a guaran-
the federal review of social security, the gov- teed income was back on the policy agenda, due
ernments of Canada and Manitoba signed an primarily to the 1982 Royal Commission on the
agreement to begin a trial run of a basic in- Economic Union and Development Prospects
come experiment, clearly linking the experi- for Canada (Macdonald Commission).21 The
ment to the Social Security Review. Later that 1985 report from the Macdonald Commission
year a version of guaranteed annual income, was marked by general concern about econom-
the Manitoba Basic Guarantee Annual Income ic efficiency and support for free market forces.
Experiment (dubbed “Mincome”) was piloted. Central among the number of reforms to the Ca-
While initially envisioned by at least the Mani- nadian welfare system that were recommended
toba government as a simple and relatively in- was implementation of a Universal Income Se-
expensive trial, Mincome evolved into a com- curity Program (UISP). The UISP was billed as
plicated experiment, with a focus on the issue bringing about reform that would be “radical,
of whether or not a guaranteed income would not cosmetic, and wholesale rather than tink-
provide a disincentive for recipients to engage ering at the margin.” The Commission point-
in paid labour. edly chose not to use the term “guaranteed an-
The Mincome project involved 1,300 Manitoba nual income” to describe this proposal, as the
families, from both urban and rural communi- UISP had benefit levels considerably lower than
ties, and distributed these families randomly be- those traditionally associated with guaranteed
tween a number of different guaranteed income incomes. Nonetheless, the UISP stands as a guar-
plans and a control group for three years. Fami- anteed income proposal. The Macdonald Com-
lies with incomes above a certain amount were mission’s recommendations with respect to the
excluded from the trials and those included in UISP were echoed a year after the report was re-
the study were assigned, in 1974 dollars, one of leased by the Forget Commission on Unemploy-
three support levels ($3,800, $4,800, $5,800) for ment Insurance.22
a family of two adults and two children. Three The Macdonald Commission proposed that
different tax-back rates (the rate at which ben- the UISP would eventually replace much of the
efit payments will be reduced for each dollar of then existing welfare state, including the Guar-
additional income brought into the family) were anteed Income Supplement, family allowances,
used: 35 per cent, 50 per cent, and 75 per cent. the refundable child tax credit, child and mari-
The most generous combination ($5,800 bene- tal tax exemptions, federal social housing pro-
fit and 35 per cent tax back) and least generous grams, federal transfers to the provinces for so-
combination ($3,800 benefit and 75 per cent tax cial assistance, and the income support functions
back) were not tested. of unemployment insurance. Old Age Security
By 1979, the experiment was closed: the So- would be left intact with current levels of sup-
cial Security Review was over and, as mentioned, port. The UISP benefit itself would be financed
Possibilities and Prospec ts: The debate over a Guar anteed Income 15
Prime Minister Jean Chretien was rumoured to The 2008 federal election saw Elizabeth May’s
be considering a guaranteed income. In 2006, federal Green Party support the idea of a “Guar-
the Standing Senate Committee on Agriculture anteed Livable Income.” The Green Party platform
and Forestry released an interim report in which envisioned an incremental implementation of a
a guaranteed income was touted as a possible guaranteed income initiated by a federal benefit of
means of reducing rural poverty.34 Hugh Segal, $5,000 to every individual on provincial welfare.
a Conservative member of Canada’s Senate, has At the 2008 Congress of the Basic Income
considerable visibility as an advocate for a guar- Earth Network (BIEN) in Dublin, Ireland, BIEN
anteed income. While he would retain special Canada was launched as a national chapter of the
programs for the aged, disabled and for educa- international group. Its objective is to promote
tion and health care, his proposal for a guar- awareness and informed debate about guaran-
anteed income would collapse other programs teed income among activists, researchers, and
into a basic living income offered in the form of politicians across the country.36
negative income tax.35 The debate clearly continues.
Academic and political literature on the idea of The question of universality refers to the
a guaranteed income is vast. No single overview range of the general population that is, as an
model is representative of all ideas for a guaranteed initial starting point, covered by the policy. The
income. In this section we elaborate, first, several more universal a benefit is, the more general
basic dimensions along which the proposals vary and widespread its potential distribution across
and, second, three basic models that can be situated the population will be. More selective policies
along these dimensions that reflect the debate. single out smaller subsets of the population for
coverage. As a strongly universal benefit, a spe-
cific guaranteed income policy would provide
Basic Dimensions to Guaranteed Income
for every individual adult member of society,
Proposals
irrespective of income levels. For example, ac-
Four criteria characterize and distinguish guar- ademics Sally Lerner, Charles Clark and Rob-
anteed income proposals: ert Needham have argued for a Basic Income
• Degree of universality of eligibility; system that employs a notion of universality
• Degree of conditionality of entitlement; that dictates payment of benefits to every Ca-
• Adequacy of benefit level; and nadian citizen or permanent resident.38 Few, if
any, proposals for a guaranteed income argue
• Integration with other social programs.37
for complete universality—generally citizenship
(or residency) and age feature in some way to
Universality exclude some individuals or groups. Some pro-
Tight definitions of universality and condition- posals have a kind of differential universality:
ality are impossible—the two terms are used for example, adults might receive larger benefits
elastically and often interchangeably. Ques- than children.
tions about one often shape conclusions about The broad universality of many guaranteed
the other. Yet each captures an important and income schemes makes the issues of cost and
distinct policy dimension. distributional equity significant features of
Possibilities and Prospec ts: The debate over a Guar anteed Income 17
the political debate. As the breadth of cover- how the benefit payment is spent, or beneficiar-
age widens towards universality, of course, the ies’ social living arrangements. Notably, recipi-
up-front cost of providing a guaranteed income ents of such an unconditional guaranteed income
rises. This may achieve greater coverage (eve- would have no requirements of labour force in-
ryone gets something), but it also raises issues volvement or availability, labour skills training,
of vertical economic distribution because the or job seeking. As we discuss later, the uncon-
wealthy receive the same benefit as individuals ditionality (or limited conditionality) of most
at lower income levels. While a progressive tax- guaranteed income proposals stands as one of
back rate can correct the regressive impact of the most significant political obstacles to general
such coverage, the optics of providing benefits acceptance of guaranteed income reforms. On
to those who do not need them along with the the other hand, monitoring and enforcing par-
initial budgetary impact of such universality ticipation as a condition of receiving guaranteed
may make it politically difficult to have a ben- income adds to administrative complexity and
efit level that is significant in alleviating and expense of delivering the program, and may be
reducing poverty. an intrusive, punitive, and stigmatizing experi-
In considering universality, there is also ence for those receiving benefits.
the question of whether payments should be Unconditionality and universality, it is argued,
made to individuals or to household units, or could be combined to cast guaranteed income
to both at different levels. Most proposals pro- as a basic entitlement of membership in Cana-
vide for direct payments to individuals, citing dian society. Such a benefit could be seen as a
reasons of individual liberty in lifestyle choice right of citizenship, as important as (for exam-
and administrative ease. Concerns about gen- ple) the right to vote.
der equality feature strongly in favour of a more
individualised approach. Proponents of paying Adequacy
benefits to households, on the other hand, cite Proposals vary greatly in terms of the amount
concerns of general equity in relation to the of money that should be paid as a guaranteed
economies of scale that larger households can income benefit. Some proposed levels exceed,
achieve, and of the need for consistency with others fall considerably short of, what might be
existing household-focused programs. This lat- commonly conceived as adequate. A guaran-
ter approach, of course, involves the contentious teed income is understood variably as a small
task of defining what is or is not considered to “top-up” to other sources of income, as a partial
be a “household.” income, or as a fully livable income. Notably, a
number of current Canadian proposals argue
Conditionality for a “guaranteed adequate income,” thereby
Conditionality sets out the kind of conditions that indicating a benefit level that permits a decent
are built into a policy that may limit the eligibility level of income.
of a person otherwise covered by the program. Proposals also vary in terms of form and
Most existing income security programs have duration of benefit provision. Policy proposals
a number of conditions that recipients need to might envision a regular income stream (where
satisfy in order to gain and maintain eligibility. payments are received on a weekly, monthly, even
Guaranteed income proposals are distinctive in yearly basis), or benefits that have a time limit on
that they typically claim to be (at least mostly) eligibility (say three or five years). Some guaran-
unconditional. For example, an unconditional teed income plans consider regional variation in
guaranteed income policy would be neutral as to benefit level. Clearly, costs of living are higher
Possibilities and Prospec ts: The debate over a Guar anteed Income 19
existing discretionary, means-tested income sup- (e.g. caring for children at home), uncondition-
port programs (especially provincial social as- ality is weaker. An example of a proposal at this
sistance programs), and less stigmatizing, con- more generous end of the scale is contained in
tributory social insurance programs (such as the 2006 Caledon Institute report Towards a New
Employment Insurance and the Canada/Quebec Architecture for Canada’s Adult Benefits. The re-
Pension Plans). Thus, this model is strong on in- port argues for an income-tested, long-term, ad-
tegration of a limited guaranteed income with equate basic income for individuals who cannot
other income security programs. reasonably be expected to work.40
Within this general model some proposals are
more minimalist and severe in terms of income 3. Strong Basic Income or Guaranteed
security guarantees, with a stronger emphasis on Adequate Income Model
paying out benefits only to those who “deserve” This model stipulates that a guaranteed income
them, and as a supplement (rather than a partial should provide the material basis for “real free-
or full replacement) of the income that everyone dom for all” through a significant redistribution
is expected to earn in the labour market. These of wealth. Proposals of this type seek to elimi-
proposals concern themselves with “activation” nate poverty and ensure a universal and uncon-
policies to encourage participation in the paid ditional liveable income.
labour market. Guaranteed income elements of This model has a number of key elements.
these proposals are thus often characterized by First, the benefit is paid by the state out of pub-
low benefits, a limited number of recipients and licly controlled resources to every individual
frequent linkage to paid work—they have weak (or household unit), regardless of the income or
adequacy, reduced universality, and varied con- wealth of that individual (or household unit).
ditionality elements. However, integration with The payment would be in cash and would have
other income security measures of a more tradi- no restrictions as to how it is spent. It would be
tional and individualistic sort is high. paid on a regular basis, say every month. Sec-
Other proposals in this category take a wid- ond, all members of a given society would re-
er and more generous approach. For example, a ceive the income, although what is meant by
mixed-welfare proposal may stipulate long-term, members can vary. Some think of membership
adequate, and non-stigmatizing income benefits to as restricted to legal citizens; most proponents,
persons not expected to participate in the labour however, conceive of membership in a broader
market (e.g. the elderly and persons with serious sense that includes all legal permanent residents.
disabilities), paired with short-term, emergency Third, the payment is unconditional: no means
assistance for other individuals, along with ex- test or work requirement would accompany it.
tended coverage and higher benefit levels for pro- Fourth, the level of income guaranteed is formu-
grams such as unemployment insurance. Thus, lated to lift each individual recipient’s income
some categories of people are given guaranteed above the poverty line or some other indicator
support through allowances that are independ- of adequacy or liveability.
ent of labour-market participation, while others One of the best-known advocates in the cur-
are not. Thus, elements of universality and ad- rent debate, Belgian scholar Philippe Van Parijs,
equacy are stronger, and income support is seen argues for such a version of guaranteed income.41
as linked with the collective provision of social Van Parijs argues that this variant of guaranteed
goods. But because guaranteed income is often income “is a profound reform that belongs in the
linked to “legitimate” disqualification from work same league as the abolition of slavery or the in-
or participation in some non-market form of work troduction of universal suffrage.”42
Possibilities and Prospec ts: The debate over a Guar anteed Income 21
Critique of the Idea
There is much that is compelling about a guar- The issue of work incentive is represented
anteed income, as we have already signalled. But in the debate by the image of the Malibu surfer,
a number of concerns stand out, both straight- quick to use the guaranteed income benefit to
forward concerns about the merits of the idea quit work and spend the days on the beach. If
itself, and cautions about the pragmatic dangers large numbers of individuals opt out of paid work
of implementation. Both types of concerns are to live on their guaranteed incomes, economic
discussed below. productivity and growth may be imperilled.
Proponents of guaranteed income have a range
of responses. They argue, as we have already noted,
The Merits of the Idea Itself
that a guaranteed income is actually facilitative
The characteristics of universality and uncondi- of more creative, flexible, and productive involve-
tionality, key to what is attractive and distinctive ment in a greater variety of work and paid labour.
about a guaranteed income, also provide a focus Moreover, guaranteed income experiments, such
for a series of critiques—particularly the three as the Manitoba Mincome program discussed
traditional and perennial concerns of work in- earlier,46 showed only modest work disincentive
centives, reciprocity, and cost. effects.47 Such a small effect on work incentives
is not particularly economically significant—al-
Work Incentives though it may certainly be politically significant
Someone in receipt of a generous uncondition- for those who oppose a guaranteed income.
al benefit may no longer wish to work. This may Connected to concerns about labour force in-
be particularly true if work is tiresome and low volvement are criticisms that a guaranteed income
paying and the recipient decides that the com- will amount to no more than simple employer
bination of leisure time and guaranteed income subsidization and an incentive for employers to
is preferable to whatever the additional benefits reduce workers’ wages. The historic example in
of paid work might be. England over 200 years ago, the Speenhamland
system, is frequently used (although not without
Possibilities and Prospec ts: The debate over a Guar anteed Income 23
Hum and Simpson, the Canadian economists Hum and Simpson estimate that their Basic
whose work we have already discussed, model Income would be very expensive, in one scenario
the cost of several variations of what they desig- costing $217.1 billion, compared to $75.8 in ex-
nate as “Basic Income” (a universal, non-taxable isting transfer payments to individuals from the
benefit set at the poverty line so as to eliminate federal government (in the year 2000). On the
poverty, at least in principle) and “Guaranteed other hand, Hum and Simpson estimate the cost
Income” (that would be paid out as a universal of their (more modest) Guaranteed Income to be
benefit set below the poverty line, coupled with much less and argue that it could reduce poverty
a tax-back rate on earned income).52 more efficiently than their Basic Income model.
Possibilities and Prospec ts: The debate over a Guar anteed Income 25
Other Issues
Two other sets of issues about the merits of a re-distribution of social and economic resources.
guaranteed income are important to mention. Indeed, if a guaranteed income is also used as an
First, it is of course true that strong guaranteed excuse or reason to cancel other forms of social
income proposals sit in opposition to the more spending and social programming—as some right
punitive and minimal income security system the wing advocates of the plan envision—the overall
neo-liberal state tolerates. Yet, ironically a guar- distributive effect of guaranteed income imple-
anteed income program that neglects or rejects mentation may be regressive and less just.
inclusion with other forms of income assistance Guaranteed income proposals may also risk
and the provision of public goods can reinforce over-emphasizing the importance of private ac-
the individualism and market focus of neo-lib- tion and ignoring the roles that public respon-
eralism. Second, while feminist support for a sibility, public provision, and public ordering of
guaranteed income holds centre stage, particu- community institutions can play in securing in-
larly at the community level in Canada, there are dividual and community welfare. For example,
also prominent feminist critiques of the notion. many advocates of a guaranteed income point
These issues are briefly discussed below. to the possibilities for involvement in volunteer
community work that a guaranteed income al-
lows.59 Yet, community infrastructure surely is
Ideological Resonance
critical enough to warrant adequate financial sup-
A guaranteed income program requires the state to port from the state. It is great to have community
redistribute income more broadly and more fairly. centres with an active volunteer corps, but surely
However, emphasis on a guaranteed income alone it is even better to have community centres with
as the centrepiece of social welfare provision may adequate, trained, and (well) paid staff.
divert attention from the unjust workings of the Some models of a guaranteed income, par-
market – both the market’s provision of services ticularly those that have minimal integration of
and its treatment of workers. A reform program the guaranteed income into a wider scheme of
that does little else than put some money into eve- income and social benefits, imply that the remedy
ryone’s pockets is unlikely to achieve an adequate to poverty is simply individual and fiscal; struc-
Possibilities and Prospec ts: The debate over a Guar anteed Income 27
Political Strategies and Feasibility
Possibilities and Prospec ts: The debate over a Guar anteed Income 29
Conclusion
This paper has illustrated some of the promise, arrangements in Canada in incremental, fea-
complexity, and challenges of the guaranteed sible, and carefully considered steps. He notes
income model, drawing on specific proposals that the collapse of neo-liberalism in the current
and longstanding debates as they have unfolded global economic crisis has also led to the trans-
in Canada and elsewhere. Looking ahead, what fer of billions of dollars of public money from
conclusions should be drawn about guaranteed governments to large corporations. So, Mulvale
income in Canada for those concerned about argues, citizens and social justice advocates can
economic security and social justice? legitimately ask the question: “If governments
We began this research with disagreement are willing to go to such dramatic lengths to bail
between the two of us. Yet, interestingly, as the out General Motors and other huge companies,
project has progressed our opinions have come what should our elected representatives be do-
closer together. We both share similar concerns ing to ensure the economic survival of average
about the dangers and challenges of practical im- working families and economically vulnerable
plementation of a guaranteed income program. citizens?” He argues for nurturing the current
We both recognize strongly the inadequacy of shift in public consciousness brought about by
reform to income and social security that in- the weakening of neo-liberalism, the willing-
cludes only a guaranteed income and neglects ness of governments to transfer wealth (at least
other forms of collective provision of public to large corporations), and the ecological im-
goods. And we both agree that discussion of a perative to lower consumption and to achieve
guaranteed income is a fruitful exercise and an environmental sustainability.
important element of the public debate over the Young remains more convinced that welfare
future of income security. reform is better served by a mix of programs
Differences do remain. Mulvale is an advo- for income support, labour policy, and public
cate of eventual implementation of a guaranteed goods. No doubt, in an ideal world calling for a
income. He remains engaged with the task of pure and strong guaranteed income, paired with
strategizing on how to modify income security state provision of key public goods and other tar-
Possibilities and Prospec ts: The debate over a Guar anteed Income 31
support that our society ought to guarantee. A income security reform. It is evocative of what a
guaranteed income alone cannot satisfy the full just and fair society must guarantee to everyone:
scope of collective and public responsibility a an adequate degree of unconditional economic
just society bears for the welfare of its popula- independence and empowerment. We may disa-
tion. Proponents of a guaranteed income should gree as to the priority and form such recognition
be cautious about too singular a focus in their should take. However, the debate over a guaranteed
welfare reform urgings. income is critically taken up, if only to remind us
Nonetheless, discussion of a guaranteed in- of some of the key necessary ingredients of eco-
come is certainly valuable to any full debate over nomic security for all people in Canada.
2 An initial discussion paper on the idea of a guar- 15 Royal Commission on the Status of Women, 1970,
anteed income was prepared by the authors. This p. 325.
paper served as the focus for a Community Con-
16 Canada, 1973.
sultation held in Vancouver in March 2007 with
a broad cross-section of individuals from com- 17 Hum and Simpson, 2001.
munity organizations, policy centres, and advo-
cacy groups concerned about alleviating poverty 18 National Council of Welfare, 1976.
and broader economic security questions. Con- 19 For a summary of the Mincome project, see Hum
sultation participants were drawn mostly from and Simpson, n.d.
the greater Vancouver area, but also included
participants from Victoria and Regina. This day 20 Hum and Simpson, 2001, p. 82.
long consultation provided us with a rich and nu-
21 Royal Commission on the Economic Union and
anced discussion of the potential advantages and
Development Prospects for Canada, 1985.
disadvantages of a guaranteed income model of
income security in Canada. 22 Commission of Inquiry on Unemployment Insur-
ance, 1986.
3 Fitzpatrick, 1999, p. 36.
23 Royal Commission on the Economic Union and
4 Brazil has legislation establishing a gradual path
Development Prospects for Canada, 1985, p. 795.
towards a “Citizen’s Basic Income.”
24 A demogrant is a universal benefit payment made
5 Vendrik Kees, interview cited in Vanderborght,
to individuals solely on the basis of some demo-
2004, p. 27.
graphic characteristic, say age.
6 Standing, 1998, p. 102.
25 Royal Commission on the Economic Union and De-
7 Pateman, 2004. velopment Prospects for Canada, 1985, p. 798.
9 For example, the website of the Basic Income Earth 27 See, for example, Kitchen, 1986.
Network sets out a history of the idea of basic or
28 Mulvale, 2001, p. 100.
guaranteed income from the early 1500s to the
present. See http://www.basicincome.org/bien/ 29 Human Resources Development Canada, 1994a.
aboutbasicincome.html#history. Accessed Au-
30 Human Resources Development Canada, 1994.
gust 12, 2009.
31 Women’s Livable Income Working Group, 2006. A
10 Economic Council of Canada, 1968, Chapter 6.
connected group, LIFE, maintains a website advo-
11 Special Senate Committee on Poverty, 1971, p. x. cating a guaranteed livable income at http://www.
livableincome.org. Accessed April 13, 2009.
12 Ibid, p. 175.
32 Christiansen-Ruffman et al., 2004.
13 Québec, 1972.
Possibilities and Prospec ts: The debate over a Guar anteed Income 33
33 See, for example, Pasma, 2009. 55 This figure does not take account of the additional
income tax that would be paid with a guaranteed
34 Standing Senate Committee on Agriculture and
income system in place. This additional revenue
Forestry, 2006.
could lower the net cost of the benefit by 20 to
35 Segal, 2008. 30 per cent.
36 See the Basic Income Earth Network (BIEN) website 56 Statistics Canada, 2007.
at http://www.basicincome.org/bien/aboutbien.
57 CCPA, 2007.
html#na. Accessed August 14, 2009.
58 Mulvale, 2007.
37 For a longer list, see De Wispelaere and Stirton,
2004. 59 See, for example: Women’s Livable Income Work-
ing Group, 2006.
38 Lerner, et al., 1999, p. 43.
60 Long, 2006, p. 201.
39 Friedman, 1962.
61 Brodie, 1995.
40 Battle et al., 2006.
62 This dilemma, of course, is not unique to guaran-
41 Van Parijs, 2000, p. 3.
tee income advocacy. It is present any time anti-
42 Van Parijs, 1992, p. 7. poverty strategies emphasize the importance of
monetary benefits.
43 See, for example, the opening article in La Revue
Nouvelle, April 1985, cited in Yannick Vander- 63 Some guaranteed income proponents do argue for
borght, 2004. As well, Brittan, 1983; Van Parijs, benefit rates that take account of such features as
1992; Blais, 2002. family size, disability and age. However, all impor-
tant differences may not be adequately factored
44 Paine, 1819. into a universal program.
45 Ackerman and Alstoot, 1999. 64 Orloff, 1990 (unpublished), cited in McKay, 2005,
65 McKay, 2005.
47 For a useful, more detailed, discussion of this is-
sue, see Pasma, 2009. 66 Klein, et al., 2008, p. 6; Hennessy and Yalnizyan,
48 Block and Somers, 2005.
2008.
69 UN OHCHR, 2003.
51 Lerner, et al., 1999, pp. 42 – 50.
70 Quebec, 2002.
52 Hum and Simpson, 2005, pp. 286 – 87.
53 Ibid., p. 289.
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Possibilities and Prospec ts: The debate over a Guar anteed Income 37
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