Is a guaranteed basic income the solution to poverty?

I don’t think so. I’m a socialist and I still don’t think so. In fact, it’s because I’m a socialist that I think it’s a bad idea.

We all know that housing costs in Canada – Toronto and Vancouver in particular – are crazy. And when I say Toronto, I’m essentially referring to the Greater Toronto Area (GTA) because as prices have risen exponentially in Toronto proper, many people have migrated further and further outside of the city, trying to snatch up homes that aren’t cheap but still somewhat affordable. This drives local prices up to such an extent that people who’ve lived in peripheral cities as far out as Guelph are saying that if they sell their houses, they won’t be able to buy a another one in the same community. Everyone is getting priced out everywhere. In Hamilton, for example, residential real estate is still significantly cheaper than in Toronto, but home prices have shot up 70% according to a recent report by the Canadian Real Estate Association.

Minimum wage won’t get you very far in these circumstances, and the fact that the Progressive Conservative government headed by Doug Ford cancelled an increase from $14 to $15 which was planned by the Liberals doesn’t help. But we knew they were going to do that before Ford was elected Premier. What we didn’t know – because they said they wouldn’t do it – was that they would cancel the Ontario Basic Income Pilot. I think it’s unethical and irresponsible to renege on a campaign promise, especially when people will reasonably make important life choices based on that promise. There was no warning, and as far as I’ve been able to determine, no alternative support system implemented to help people who are going to have serious problems as a result. What happens to a person who signed a new lease and now won’t be able to afford the rent? Whatever one’s assessment of the effectiveness of the pilot in alleviating poverty, the about-face was dirty.

I read a news story about a Hamilton couple who found out they were accepted for the basic income pilot in May 2018. At this point, Justine Taylor had already found out she was pregnant and the couple say they were having trouble finding work. They say they wanted to go back to school and start a business. I don’t know if this is the sort of thing people say to reporters to make it look like they’re trying to be gainful contributors to society, but owning a business isn’t a right. Most of us – me included – don’t work for ourselves, nor do we have the resources to do so.

Again, it was wrong for the government to cancel the pilot in July 2018 without warning, knowing that families would have put plans in place to move, have a child, etc. But I actually don’t think the Liberals should have started the pilot to begin with.

Let’s take a closer look at this couple from Hamilton. They failed to use birth control, both preventative and retroactive. This is Canada, where all the reproductive health care one could want is available. Birth control really isn’t that expensive between two people. Condoms exist – and the morning after pill is available over the counter in drug stores if something goes wrong. This couple already had a nine-year old child and were struggling financially. Their decision to have another child was a poor one, made well before the pilot was an option. Why should people like myself subsidize these choices? As it is, I’m not exactly thrilled that I have to contribute funds for education and medical services for children I’ll never have. As a child-free woman renting alone in the north end of Toronto, I have a hard enough time paying the rent, utilities, bills, and saving for a home and retirement all by myself.

Quality full-time work is hard to come by, but there’s always someone hiring. When I graduated from university, I couldn’t find work in my field and worked as a cashier to make rent. I didn’t want to do that. I was ridiculously overqualified, bored and disappointed. But the truth is that there are jobs out there, just maybe not the ones we want. Two people can find full-time jobs in Hamilton and find a decent apartment for a lot less than I’m paying on my own.

There’s so much emotional rhetoric around the issue. Taylor comments that the pilot is “making people realize that we are people, too.” Who’s saying they’re not people?

I started to question the value of this project while reading news articles that described the changes people were able to make in their lives as a result of the pilot. Some were on disability, barely scraping by, so the extra cash made a huge difference to them. But shouldn’t the government instead focus on fixing disability support programs so that people who truly can’t work are getting enough money to live dignified lives? This seems to me to be a classically liberal attempt to put a band-aid over systemic economic problems. I don’t support the PCs; I’m critical of their decision to scrape back welfare payments and freeze the minimum wage. I also think that the welfare system as it exists doesn’t provide enough incentive for people to find work, and there are all kinds of people collecting social assistance who shouldn’t qualify. Rather than patching up a broken system, we need to rebuild it so that it works for everyone.

Who pays the price for an inadequate social assistance regime and minimum wage? Workers. The basic income pilot was a gift to employers, especially large corporations. They don’t have to pay their workers a decent wage and invest in good benefits – taxpayers will do it for them. This shifts the onus of compensating for an exploitative financial system from the capitalist class – those who control and benefit from it – to those who are less so, but nevertheless, also exploited by this system. This isn’t progressive policy.

I actually agree with Social Services Minister Lisa MacLeod that we shouldn’t be paying people for doing nothing, that it sends the wrong message that you can get free money and not be expected to work for it. There are many people who will put that money to good use. There are also a lot of lazy, careless people who will piss it away. Why should anyone bankroll that? One individual said she was using her installments from the pilot to pay off her credit card. Maybe she accrued that debt because she didn’t have any other way to pay legitimate bills. Or maybe not. I read another report (can’t find it now) in which someone said she used the extra income to lend money to a friend. Does this sound like a fair, responsible program?

The basic income pilot was a program that helped some deserving people, made some people feel virtuous, and encouraged waste and the perpetuation of a broken system. Making promises and then pulling the rug out from under people made things worse, but it didn’t get us to where we are now.

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Whose economy? How privilege shapes economic discourse

A man who might become Canada’s next Prime Minister was mocked last week for his reaction when confronted with the claim that the middle class is doing quite well, contrary to his assertions.

There’s no point in arguing about whether Justin Trudeau is competent when all he could squeeze out of his brain was a regurgitation of campaign talking points: “We’re talking about people here in a way that is giving them the capacity to be part of strong and vibrant communities.”

What does that even mean?

The New York Times report in question has limited value where this issue is concerned because its findings are relative, not absolute. It doesn’t actually establish that the Canadian middle class is doing well; it just says that for the first time ever, our middle class is doing better than that of our American counterparts. Which isn’t terribly exciting considering how much of a beating they’ve taken.

There are a lot of factors to take into account when judging how well a certain income group – or any group – is doing. Are they making progressively more money to compensate for inflation? Are they getting more for the taxes they pay? Are they in a better position to secure adequate housing? Are they able to save more money, or are they taking on more debt? Has the group shrunk or expanded? Do they have equitable and sufficient access to quality healthcare, or education? Are they struggling to pay utilities? Can they afford to eat healthy food? What about exposure to toxins and pollution? Crime and incarceration rates?

Most importantly, when we talk about class it’s not a simple question of economic difference; we’re talking about human beings and all the social, cultural, and political realities they face. Class isn’t just about how much money you make. In many cases, class is the colour of your skin or the neighbourhood you live in.

What we really need to consider is whether we can base our understanding of the state of our economy on the state of the middle class. Defining the middle class is no easy task to begin with (MSN Money suggests these 9 ways to tell if you’re middle class). According to the results of this Gallup poll, it appears that Americans are most likely to self-identify as middle class (Republicans even more so), although the Pew Research Center has reported that this number has dropped sharply in recent years. Meanwhile, rich people don’t even think they’re rich.

There it is again.

Middle class, middle class, MIDDLE CLASS!

It’s true that middle class incomes have stagnated. Even Statistics Canada has confirmed it. But it’s not an accident that the experiences and interests of the middle class dominate our political and economic discourse. If we ever needed proof that Canada is a stratified society shaped by the privileged, it’s made abundantly clear by the frequent mention of the middle class, especially in the run-up to elections. And Trudeau really wants us to know that he cares about the middle class:

“Liberals in Quebec and across the country are focused on jobs, the economy, and growing the middle class.”

One question keeps popping into my mind: What’s wrong with talking about, say, the working class? What’s wrong with being working class? Believe it or not, there was a time when being a member of the proletariat was a source of pride and dignity, and still is to many Canadians – only you wouldn’t guess it by listening to the talking heads.

If we really want to know how “the economy” is doing, we have to talk about how everyone is doing. Mainstream discourse would have us believe that the middle class is the ultimate barometer of economic prosperity and stability; as long as the middle class is doing okay, apparently we have nothing to worry about.

But who’s we? And whose economy are we talking about? There can be no doubt that Canada’s income gap has been growing at an alarming rate. Wealth inequality is a serious problem here as in other so-called developed nations. It does affect the middle class, but it affects the poor and working class even more. Yet somehow, we’re not allowed to talk about this. We’re not given the license to focus our attention on the people who need it most.

There are several factors involved in this process, including disillusionment and apathy, which result in lower voter turnout and less worker organizing (is it any surprise that the Harper government targeted the perceived threat of a more motivated electorate through the Fair Elections Act?). The privileged classes, in no small part due to their control of the corporate media, have effectively brainwashed Canadians as a whole to demonize the very groups that have fought for the rights of not only working people but all Canadians. Namely, workers’ collectives, cooperatives and unions – you know, those pesky good-for-nothings who brought us better wages, higher labour standards, universal healthcare, and basically everything else that government and the private sector would never voluntarily let us have. But when it comes to the working class, the poor, and people of colour voting against their own self-interest, Ford Nation is the perfect example: this “man of the people” consistently votes against initiatives that seek to alleviate hardship experienced by children, low income earners, the homeless, the LGBT community, women, immigrants, etc.

Then of course, there’s the privileged themselves – people of means who are economically insulated from these concerns. Some seek to keep more for themselves, either consciously or subconsciously. But more than that, the simple fact is that the privileged can afford to live in blissful ignorance (or willful ignorance, depending on how you see it). That’s what it means to be privileged. Those who have the least to worry about, who shoulder the least amount of risk and impact, are narrowing the discussion so that we don’t even have to consider that perhaps we should do something about the disproportionate burden we place on the working poor, including that of taxation. We should be additionally worried that Thomas Mulcair, the leader of the only left-ish political party with opposition potential, thinks that the idea of taxing people fairly (i.e. raising tax rates on even some income brackets) is out of the question. Canada’s historically labour-aligned party, afraid to talk about progressive taxation? That’s scary.

I’m not Barack Obama’s biggest fan, but this is the kind of discourse we desperately need to encourage:

Until it becomes painfully clear that too many people are rich while too many are poor for no good reason (which I think is already the case, but obviously not enough people are willing to admit it yet), it looks like we’ll be stuck with politicians who want to keep us hooked on amorphous concepts like the economy, prosperity, and growth. Trudeau, for one, has made it clear that what he’s really worried about is the possibility that “the middle class will stop supporting a growth agenda”.  Now why, one wonders, would they do that? Maybe because they’re slowly questioning neoliberal and conservative rhetoric and opening their minds to new ideas – ideas that are transparent and meaningful?

“The few own the many because they possess the means of livelihood of all… The country is governed for the richest, for the corporations, the bankers, the land speculators, and for the exploiters of labor. The majority of mankind are working people. So long as their fair demands – the ownership and control of their livelihoods – are set at naught, we can have neither men’s rights nor women’s rights. The majority of mankind is ground down by industrial oppression in order that the small remnant may live in ease.”
― Helen Keller in Rebel Lives: Helen Keller