The province of Ontario decided that it was going ahead with a three-year pilot project around basic incomes in three municipalities around the province – Hamilton, Thunder Bay, and Lindsay, each testing different circumstances and local conditions. But there are problems with the way this is all designed, which Kevin Milligan (who has been studying this issue) outlines:
https://twitter.com/kevinmilligan/status/856631472920215553
https://twitter.com/kevinmilligan/status/856694725453139968
https://twitter.com/kevinmilligan/status/856632112035778560
https://twitter.com/kevinmilligan/status/856632918684311552
https://twitter.com/kevinmilligan/status/856633716961034240
https://twitter.com/kevinmilligan/status/856634821199527936
In other words, this isn’t really basic income, which makes it all that much harder to actually evaluate its efficacy, and if it’s not displacing existing welfare or benefit programmes, then it’s not really recouping those costs which makes this hideously expensive. And that’s really been the biggest problem with basic income proposals – the cost. While the idea is that they would displace current benefit programmes, there is less money to be had in cutting the red tape and bureaucracy than one might think, and I’m pretty sure that Bill Gates’ idea of taxing robots to pay for basic income for the workers they displace isn’t really feasible either.
Oh, and then there are the political considerations.
HYPOTHESIS: physically blanketing Thunder Bay & Hamilton with six inches of hundred-dollar bills can influence provincial election outcomes
— Colby Cosh (@colbycosh) April 24, 2017
With an election not too far off in this province, we’ve seen a few moves by this government to try and out-left the NDP in places, hoping to cobble together the same sort of winning voter base that they managed to in their last election, and which their federal counterparts similarly managed in 2015. While I get the merits of basic income, I remain dubious of its feasibility, especially when this pilot project appears to be so poorly designed. But then again, I’m not an economist.