FAQs

Won’t people stop working if we introduce a Basic Income?

It is a myth that work force participation would decline if we had a Basic Income.

A 2016 Harvard and MIT study shows that despite the increase in transfer payments across countries globally, these systems have had no impact on work behaviour (source). A Basic Income allows for people to pursue work that they find meaningful.

How will we fill entry-level jobs if people can be on Basic Income?

Studies have shown that an increase in transfer payments from the government does not impact work behaviour (source). People will still take entry-level jobs in order to gain experience.

A Basic Income seems very expensive. Can we really Afford a program like that?

In short - yes, we can afford it.

It may seem like the cost of Basic Income is too high, but it’s important to note that in many costing options for Basic Income in our province, the net cost will be the gross cost minus current social assistance benefits. The model proposed in the Basic Income Policy Paper would cost less than what the province currently spends on Income Support.

It’s also important to remember that a Basic Income has the potential to eliminate poverty, which would lead to significant savings in terms of health care costs, crime costs, intergenerational costs, and forgone tax revenue.

Won’t people just spend their money on temptation goods and unnecessary items?

This is common myth around Basic Income. There is a fear that folks who receive basic income will misspend their money on drugs, alcohol, entertainment, and other “unnecessary” things.

Studies show that recipients in basic Income programs not only reduce the number of purchases on temptation goods, but research suggests that when folks have financial wellbeing, they tend to spend their money on things that help them reach their educational and employment goals (source), and one study suggests that Basic Income in the long term actually reduces spending on temptation goods (source).

Wouldn’t a Basic Income allow for employers to pay lower wages?

Advocates have expressed concern about the impacts of Basic Income on pay rates; specifically there is a worry that it could give employers an unfair opportunity to reduce pay rates for low-wage workers (source).

This has not been seen in any Basic Income pilot programs so far, and there is evidence that BI has supported workers to upskill and seek better employment opportunities (source). A Living Wage would be a complement to a Basic Income, and minimum wage laws are key to making sure that all workers are treated fairly.

It’s important to remember that a higher minimum wage is critically important but does not reach everybody. There are lots of people who cannot work for a variety of reasons or who work in a way that is not impacted by minimum wage.