The Prime Minister also spoke about caring for the most vulnerable Canadians. He’s right about that too. Anyone can face hard times. The Canadian Cancer Society recently reported that a cancer diagnosis often causes serious financial stress, jobs and the economy are changing, and more Canadians are living in poverty. In 2023, there were 8.7 million Canadians – including 2.1 million children - who were food insecure. We know what the impacts of food insecurity are: increased risk of chronic diseases, higher health care costs, mental health problems, social isolation and stigma. All these issues because they couldn’t afford to buy sufficient and healthy food or they live in an area where access to healthy food is difficult. Shouldn’t it be important to bring the social support system into the 21st Century with a development comparable to a building infrastructure project? Shouldn’t we put in place a system that helps vulnerable Canadians and builds human capital? 

We should and we can. It’s called Guaranteed Basic Income (GBI).

When people hear “basic income”, many worry. They say it costs too much, it discourages work, or that governments can’t afford it. But a team of economists, federal and provincial politicians and officials, with the support of the PEI government, studied these concerns for two years and wrote the PEI GBI report. They designed a GBI model that was over 40% cheaper than other basic income models, focused on the people who need it most, had very little effect on labour supply, and cut poverty in PEI from 9.7% to 2.1%. It is delivered through the federal tax system like EI, CCB, OAS and GIS. Like these benefits it is calculated once a year at tax time. Provincial supports are kept in place to help people in the short term or who need extra supports. 

A GBI would mean more people can go back to school or train for better jobs. Families would eat healthier food, poverty-related crime could go down, and more people could afford safe housing. Tax dollars would achieve what they are supposed to do: lift people out of poverty and help them live healthier, more productive lives.

Too good to be true? Maybe. That’s why the proposal is for the federal and PEI governments to run a 5–7 year demonstration project in PEI. This allows for the testing of the model, seeing the real impacts on people and communities, and working through administrative challenges.

Here’s something else to think about: there have been no studies about what it would take—or cost—to adapt our current system to get the same results as the PEI GBI model. Right now we spend billions on social programs yet the number of people in poverty is rising. 10.2% of Canadians live in poverty. This does not include people who are living near poverty or are income insecure. 

The PEI GBI report answers tough financial and policy questions. Some of these are complex and need careful discussion. That’s why members of Coalition Canada basic income-revenu de base and the PEI Working Group for a Livable Income are coming to Ottawa on October 7 to meet with MPs, Senators, and staff. These conversations are urgent. Too many people are suffering and the system we have is failing them.

We can keep paying for a system that traps people in poverty – a system initially developed prior to WWII – or we can build one that gives people real options: to be caregivers, start a business, become an artist, or take care of their health. A system that helps to build a strong economy for everyone. 

The PEI GBI report gives us the opportunity to build a better support system. It needs to be given a chance. Canada can do this. 

Barbara Boraks - Member, Coalition Canada

Barbara Boraks was introduced to the issue of basic income by the late Hugh Segal.