Canada’s Parliamentary Budget Office Releases Potential Costs of a Universal Basic Income

As the economy slowly begins to climb out from April’s rock bottom, many Canadians continue to struggle with finding a stable form of employment following the coronavirus economic collapse. Although the federal government has several income subsidies in place such as the Canada Emergency Response Benefit, the October phase-out date is only a mere months away.

As a result of continued uncertainty surrounding employment prospects for millions of Canadians, advocates along with various MPs and senators have called on the parliamentary budget office to research several scenarios for the implementation of a guaranteed minimum income. The UBI is being viewed as a way of filling in the gaps where other government benefits and subsidies experience shortcomings.

In response to the increased interest in the implementation of a basic income for Canadians, the budget watchdog released a report outlining the resulting costs for the federal government. According to Yves Giroux’s research, such a program could cost anywhere between $47.5 billion to $98.1 billion for a six-month duration. That would translate to an average benefit between $4,500 and $4,800 for qualifying Canadians aged 18 to 64.

With such a hefty price tag, a basic-income program for Canadians would certainly be met with opposition. However, according to Giroux’s estimates, up to $15 billion worth of tax measures could be used to offset the resulting financial impact. In addition, the actual cost of the program would rely heavily on the rate at which businesses are rehiring employees following the pandemic’s economic collapse. According to the Organization for Economic Co-operation and Development (OECD), the estimated Canadian unemployment rate was at 11% in the second quarter of 2020, with a decline to 7.7% by the end of the year.

Source: OECD

Information for this briefing was found via Bloomberg and OECD. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Businesses In Canada Don’t Want To Invest, New Study Reveals

A recent C.D. Howe Institute study revealed that business investment in Canada — which has...

Thursday, August 25, 2022, 12:38:00 PM

Federal Government Proposes to Extend CERB Program, Could Cause Current $60 Billion Budget to Double

In response to the financial hardships many Canadians suddenly faced in wake of the coronavirus...

Thursday, June 11, 2020, 05:57:00 PM

Toronto Tops New Index Of Highest Housing Bubble Risk In The World

All bubbles burst eventually, said this writer when the Canadian housing market boomed in 2020....

Monday, October 17, 2022, 02:20:00 PM

Canada Grants Airbus Waiver to Use Russian Titanium Despite Sanctions

The Canadian government has granted European aerospace giant Airbus (EPA: AIR) a temporary waiver to...

Thursday, April 25, 2024, 10:42:25 AM

Federal Government Pledges $600 Million to Regional Relief Fund as Canada’s Economic Recovery Enters Standstill

As summer comes to an end and cold temperatures set in across much of Canada,...

Saturday, October 3, 2020, 03:56:00 PM