Money for all: ruling party approves guaranteed income for Canadians

At an online Liberal Party meeting, delegates backed a resolution calling for a universal basic income in Canada. The idea was supported by 77% of Liberals.

With nearly 9 per cent of Canadians now living below the poverty line, supporters of a basic income emphasize that such a system would guarantee people financial security. Speaking to delegates, Alex Spears of the Young Liberals of Canada said that a universal income would provide "a strong and reliable social safety net adapted to the realities of the 21st century". He also said the programme would help lift millions of Canadians out of poverty.

Most recently, Yves Giroux, head of Canada's Parliamentary Budget Commission, published a report that says a basic income will help reduce poverty in Canada by 49% by 2022. But it would require billions of dollars in spending.

The Liberal Party, led by Prime Minister Justin Trudeau, is currently the ruling party in Canada. The prime minister himself does not support the introduction of a basic income system.

Guaranteed (or unconditional) basic income is a system of regular payments from the state to all residents of the country, regardless of income, availability of work and other factors. The resolution does not say exactly how the payments will be calculated, whether they will be the same for everyone, and so on.

The Liberal Party's approval does not yet mean that the law will be passed. However, the government has already said it is preparing to spend up to $100 billion CAD to rebuild the economy after the pandemic, despite the budget deficit.

The universal income program has many detractors. Researchers at the University of British Columbia, Simon Fraser University and the University of Calgary have concluded after a three-year study of basic income that it is not the best way to fight poverty. Instead of handing out money to everyone, they suggest strengthening existing social safety net programs and "targeting" assistance to those in need. In addition, some experts argue that because of the introduction of guaranteed income in Canada, the government may cut other social assistance programs in order to at least offset the costs.

Ed Fast MP, a financial critic of the Conservative Party, has spoken quite harshly of the Liberals supporting a basic income.