Canada plans to experiment with giving people unconditional free money

On July 23, 2016, we discontinued our forums. We ask our members to please join us in our new community site, The Hartmann Report. Please note that you will have to register a new account on The Hartmann Report.

6 posts / 0 new

http://www.techinsider.io/ontario-announces-basic-income-plan-2016-3

Finland and the Netherlands have already shown their interest in giving people a regular monthly allowance regardless of working status, and now Ontario, Canada is onboard.

Ontario's government announced in February that a pilot program will be coming to the Canadian province sometime later this year.

The premise: send people monthly checks to cover living expenses such as food, transportation, clothing, and utilities — no questions asked."

rostasi's picture
rostasi
Joined:
Jul. 31, 2007 4:01 pm

Comments

That is not the way to do it. Except Finland, the most important fact, which the article strangely doesn't mention, is planning on using new money creation to pay the basic income to every citizen. That is called helicopter money or QE for the people, as opposed to QE to bail out criminal banks. That is if the unelected ECB criminal banksters will allow Finland to proceed. They hate using money creation for the benefit of us lowly serfs. Only banksters are supposed to benefit from that.

A must-see video that explains all of this:

"...In this special Winter Why Not? episode of the Keiser Report, Max Keiser and Stacy Herbert talk to Professor Steve Keen about solutions to our unpayable debts, including: basic income, a People’s Quantitative Easing and a global debt jubilee. Professor Keen explains why a modern debt jubilee could please both debtors and creditors, savers and spenders..."

https://www.rt.com/shows/keiser-report/326948-episode-max-keiser-853/

https://www.youtube.com/watch?v=I8cpNg0s7bg

An excellent documentary on the subject is 97% owned - Economic Truth Documentary:

https://www.youtube.com/watch?v=XcGh1Dex4Yo

Canada at one time used the Bank of Canada to create money interest free to finance the federal gov't. That method created the boom years in Canada, including financing the national public health care plan.

Now bank notes or paper money are such a tiny portion of total money supply that even for countries that use newly created bank notes to finance public spending it is no longer a significant benefit. Interestingly the US mint does not utilize its own printed money for benefit of the taxpayer, it sells the money for a small printing fee to the privately owned Federal Reserve. Only for coins does the US mint issue them to public benefit. Theoretically the US Federal govt could replace borrowing from banks (private money creation with added interest) by minting 100's of $billions in coins instead.

Instant-RunOff-...
Joined:
Jun. 17, 2015 12:41 pm
Quote rostasi:

http://www.techinsider.io/ontario-announces-basic-income-plan-2016-3

Finland and the Netherlands have already shown their interest in giving people a regular monthly allowance regardless of working status, and now Ontario, Canada is onboard.

Ontario's government announced in February that a pilot program will be coming to the Canadian province sometime later this year.

The premise: send people monthly checks to cover living expenses such as food, transportation, clothing, and utilities — no questions asked."

Should be interesting.

stwo's picture
stwo
Joined:
Jul. 31, 2007 4:01 pm

Milton Freidman supported this, too. He called it a negative income tax, and it became the EITC which low wage workers get. Until the GOP changed it in 2010 for the ACA legislation it was AEITC or advanced earned income tax credit, and it came in the weekly paychecks of all those eligible. Weekly remuneration was always better than an annual refund check that got blown away on a flat sceen or chrome rims for the car. But anything that helped people was targeted to be sabotaged to win 2012 for the GOP. The EITC is still in, but not the AEITC that creates consumers.

douglaslee's picture
douglaslee
Joined:
Jul. 31, 2007 4:01 pm

Perhaps this is the way to go. From Guy Sorman: http://city-journal.org/html/finnish-model-14302.html

This year, the Finnish government hopes to begin granting every adult citizen a monthly allowance of €800 (roughly $900). Whether rich or poor, each citizen will be free to use the money as he or she sees fit. The idea is that people are responsible for their actions. If someone decides to spend their €800 on vodka, that is their decision, and has nothing to do with the government. In return for the UBI (Universal Basic Income), however, the public accepts the elimination of most welfare services. Currently, the Finnish government offers a variety of income-based assistance programs for everything from housing to children’s education to property insulation. Axing these programs should free up enough public resources to finance the UBI. The bureaucracy that currently governs welfare payments will disappear. There will no longer be any need to ask for government help, nor to fill out forms or wait for the competent authorities to examine each dossier to determine eligibility.

The introduction of a UBI should loosen the hold of public bureaucracy over Finnish citizens and reverse a century of top-down socialization in Finnish society. In practice, each citizen will automatically receive his monthly allowance and declare it as part of his taxable income. The poorest citizens—who do not pay income tax—will keep their entire allowance, while high-earners will repay a relative portion of their allowance in tax. As always, the devil will be in the details. It’s still not known whether this allowance will replace every welfare program, or if some—such as those that aid the physically and developmentally disabled—will be maintained.

The Finnish government is expecting the negative income tax to have a beneficial effect on employment and growth. Regardless of age, the underqualified will be more willing to accept poorly paid jobs, knowing they will continue to receive their UBI. By the same token, employers will be more willing to hire and fire, as the UBI will act as a social damper. As national wealth figures always depend on the number of citizens in the labor market, Finland is hoping for a clear growth spurt. The allowance may also limit the influx of migrants if the government decides to grant the UBI only to citizens and legal residents.

Coalage1
Joined:
Mar. 14, 2012 8:11 am

I could support it in the US if the welfare infrastructure was dismantled like the Finns plan to do,

The idea is that people are responsible for their actions. If someone decides to spend their €800 on vodka, that is their decision, and has nothing to do with the government. In return for the UBI (Universal Basic Income), however, the public accepts the elimination of most welfare services.

Tthe democrats would never allow it-- they derive too damned much power in managing the dole to their liking.

stwo's picture
stwo
Joined:
Jul. 31, 2007 4:01 pm

What Do Democrats Really Want?

Thom plus logo Thomas Friedman, the confused billionaire, told us decades ago that "free trade" is what made the Lexus a successful product when, in fact, it was decades of Japanese government subsidies and explicit tariffs that did so.
Powered by Pressflow, an open source content management system