A group a Canadian academics and activists are starting to drum up some support and interest in their idea for a guaranteed income of $20,000 a year for every Canadian.
The idea behind a guaranteed living wage is to abolish poverty in our country and increase the quality of life overall. A report by Glen Hodgson, a Canadian Economist with the Conference Board of Canada, explains the gist of it, which is a threefold solution:
1. Address poverty directly in a completely neutral and fair way.
2. Reduce the welfare wall (high marginal tax rates on low income) to essentially provide a stronger incentive to work and earn income.
3. Reduce health care spending on the low-income population – the link between poverty and poor health is well documented.
This has been experimented with before, back in the 70s in Manitoba, in a way that was deemed a success.
And Canada isn’t alone – the idea is garnering more support in the US than it has had in a long time. And this fall, Switzerland will be voting on a referendum to give its citizens a guaranteed $35,900 annually.
Here’s hoping we can make a revolutionary economic change that goes beyond just getting rid of the penny.
#NOTABLE
Want more updates on the most Notable things happening so you know before your colleagues do? Get our exclusive newsletter here and follow us on Twitter for all the latest.