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WORLD NEWS Thursday 30 November 2017

Canada tests 'basic income' effect on poverty amid lost jobs

By ROB GILLIES It is monumental."
Associated Press Wakely thinks it would cre-
HAMILTON, Ontario (AP) — ate a disincentive to work.
Former security guard Tim Other critics say it doesn't
Button considers how a sud- result in any meaningful
den increase in his income change and is only a back-
from an unusual social ex- door way to eventually cut
periment has changed his other benefits.
life in this Canadian indus- Officials running the pro-
trial city along the shore of gram in Ontario have found
Lake Ontario. that some people are re-
Sipping coffee in a Tim Hor- luctant to participate, fear-
ton's doughnut shop, But- ing a hidden catch or be-
ton says he has been un- ing caught short when the
able to work because of grant runs out. As of Friday,
a fall from a roof, and the a total of 793 people have
financial boost from On- enrolled in the pilot proj-
tario Province's new "basic ect, up from 400 in Octo-
income" program has en- ber. It's too soon to gauge
abled him to make plans whether it has substantially
to visit distant family for changed their lives.
Christmas for the first time in But Elizabeth McGuire, who
years. It has also prompted heads the Campaign for
him to eat healthier, sched- Adequate Welfare and Dis-
ule a long-postponed trip In this Nov. 21, 2017 photo, former security guard Tim Button poses for a portrait at the bus stop to ability, has seen a transfor-
to the dentist and mull tak- take a local ride, a recent luxury he at one time could not afford in Hamilton, Ontario, Canada. mation in former welfare
ing a course to help him Button says he has been unable to work because of a fall from a roof and the financial boost from receipts already.
get back to work. the province's basic income program has enabled him to make plans to visit distant family for "It's like they burst out of
"It's making a huge differ- Christmas for the first time in years. their cocoon and become
ence for me," Button said (AP Photo/Rob Gillies) people," McGuire said.
of the almost 60 percent produce better affinity with monthly benefit, so this is an it might look like if there is, "Moving to a compassion-
increase in monthly ben- the workplace if there is incentive to work. Couples in fact, the labor disruption ate system that gives you
efits he started receiving in not a total disincentive to get 24,000 dollars ($19,000). that some economists are enough money where you
October from the Ontario work?" said Hugh Segal, a Technology leaders such as predicting." can grocery shop, buy a
government. former Canadian senator Facebook CEO Mark Zuck- Finland is conducting a sim- winter coat and get some
Ontario intends to provide consulted by the Ontario erberg and Tesla founder ilar experiment, distributing boots, too. That has made
a basic income to 4,000 government for the pilot Elon Musk have promoted money to 2,000 randomly such a psychological dif-
people in three different project. the idea as a way to ad- selected people. It hopes ference in the mental po-
communities as part of an Those eligible for the ex- dress the potential loss of to learn how it might adapt sitioning of vulnerable peo-
experiment to evaluate perimental program are jobs to automation and ar- its social security system to ple."
whether providing more people aged 18 to 64 who tificial intelligence. a changing workplace, in- Dave Cherkewski, a
money to people on public are unemployed or with Ontario Premier Kathleen centivize people to work 46-year-old in Hamilton,
assistance or low incomes an annual income below Wynne said the experiment and simplify the bureaucra- says the extra $750 a month
will make a significant dif- 34,000 Canadian dollars is rooted in a fear there cy of benefits. It also being he is receiving has eased
ference in their lives. How ($26,000) — or under 48,000 will be a mass dislocation tried on a smaller scale in the stress of daily life and
people like Button respond Canadians (US$37,000) dol- of jobs not seen since the Oakland, California. mental illness that has kept
over the next three years is lars if they are a couple liv- Industrial Revolution that David Wakely, a labor law- him out of work since 2002.
being closely watched by ing in certain test regions. governments will have to yer, said it sounds like a "I've never been better af-
social scientists, economists Single people receive up address. great idea, but he doubts ter 14 years of living in pov-
and policymakers in Cana- to 17,000 dollars ($13,000) "I see it on a daily basis. I it could be rolled out on a erty," he said.
da and around the world. of basic income and they go into a factory and the larger scale. Cherkewski dreams of re-
"Does it produce better can keep half of what they floor plant manager can "I just don't think it's afford- turning to work in a role
outcomes in terms of edu- earn from working. Cana- tell me where there were able," Wakely said. "The where he can help peo-
cation for the kids? Does dians on welfare normally 20 people and there is one numbers are just complete- ple with mental health
it produce better health would have to subtract all machine," Wynne said. "We ly unmanageable. The ex- challenges.q
status after three years of of what they earn from their need to understand what pense of this thing is huge. "
this kind of living? Does it