Universal Basic Income
What if I told you Universal Basic Income (UBI) was good for the economy?
You may not have thought about UBI this way. But the evidence is there from a program that already exists in Canada. The Canada Child Benefit, which works like a basic income for people with kids, generates two dollars in economic activity for every dollar invested. And about fifty-five cents from every dollar goes back to the government in taxes [source: https://www.ubiworks.ca/ccb].
Let’s break that down. You invest one dollar and get fifty-five cents back. For a net cost of forty-five cents, you get two dollars in economic growth. Everyone loves a great deal. The Canada Child Benefit, and future UBI programs, are great deals.
Why does UBI stimulate the economy like this?
Generally, when people have money, they pay bills. They buy groceries. They support local businesses. When more people have money to spend, more money is spent, which is how economies grow.
But what’s in it for a small community like Altona? UBI can help people live and thrive in rural areas.
If jobs are scarce in small towns, what do young people do? They leave. With UBI, people and families who want to stay in rural areas could make ends meet without missing rent or mortgage payments.
UBI is also for entrepreneurs. You might have a great idea for a small store in town but worry about financial stability. Basic income could provide the stability to chase your dream, and some extra cash for your customers to spend.
As Canada’s population ages, we need to figure out how to care for people in their homes. Friends and relatives often provide support for older adults, sometimes taking time away from work. This can lead to financial and emotional stress.
With UBI, no one would have to choose between caring for their parents and providing for their kids. It would also help seniors stay home longer, as families would have more flexibility to provide direct care or hire homecare services.
A Universal Basic Income could help young families and long-time residents stay in Altona, making it a vibrant community for generations to come.
Jonas Cornelson