We Asked Experts About Ontario’s Plan to Give People Free Money

In its recently announced budget, the Ontario government committed to a project that would give people free money, otherwise known as a basic income.

While the details are scarce, the idea of a basic income is that everyone gets a certain amount of cash for essentials like food and housing. It can also help streamline other forms of social assistance, like disability and welfare.

According to the budget, "the pilot project will test a growing view at home and abroad that a basic income could build on the success of minimum wage policies and increases in child benefits by providing more consistent and predictable support in the context of today's dynamic labour market." (By "dynamic", they likely mean shitty and overwhelmed with precarious work.)

A basic income plan has been trendy in progressive policy circles in recent years with Finland (all hail liberal wet dream Scandinavia) leading the way.

At this point, you're probably thinking there has to be a catch—the government isn't going to go around writing cheques for citizens just 'cause.

Well, actually, that's entirely possible.

Jenna van Draanen, a board member with the Basic Income Earth Network, which advocates for systems like these, told VICE there are two general options: a universal demogrant, through which everybody gets a fixed amount of money, and a negative income tax model, where people who fall below a certain income level get a top-up.

Unlike with traditional social assistance programs, like welfare, you wouldn't have to prove you're out of work or even that you're looking for a job, to qualify.

"It really empowers people to use money for things they want to prioritize and it offers people more flexibility," van Draanen said.

Added Laura Anderson, a researcher at the Wellesley Institute, a Toronto-based think tank, "if basic income is done right it could eliminate poverty."

But there are few historical examples for the Ontario government to call on.

One of them was a project held in Manitoba in the 70s called Mincome, which was largely considered success, though data is still being analyzed.

From 1974 to 1979, the poorest residents in the town of Dauphin were given monthly cheques from the government. Findings revealed hospital visits declined, mental health improved, there was less domestic abuse, and male high school students were less likely to drop out of school in search of a job.

"People have more ability to control the things that make them unhealthy when they have access to the income that they need," said van Draanen. "They can live in safer, more stable housing, there's a bit of a buffer in case of emergencies, people can purchase healthy food… and have some agency over things like education."

While critics suggest a basic income scheme might demotivate the jobless from finding work, van Draanen said research shows that's really only been the case in the aforementioned high school dropout scenario and when new mothers used the income to take longer maternity leaves.

"We consider both of those to be pretty positive changes in the labour market. They represent investments in the future economy and in people's health and social well-being."

It's possible the province will roll programs like Ontario Works, disability pay and employment insurance into the basic income scheme, but Anderson said she wouldn't advocate for "putting everything into one basket." (Doing that means there's a chance some people would miss out on additional benefits to which they're entitled.)

The province plans on developing a model for the pilot this year, with a goal of testing whether or not having a basic income could result in savings in areas like health care and housing support.

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