New Report: Basic Income can speed up Canada’s recovery and grow the economy

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...while ending poverty and growing the middle class.

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Last Updated: January 14, 2021

A new report by the Canadian Centre for Economic Analysis (CANCEA) gives us a first ever look at the economic impacts of a national Basic Income in Canada.

On December 12, 2020, UBI Works held a national launch event of this report. Here are highlights from leading experts on this report and why it matters:

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Key Findings

1. Basic Income can grow the economy and create jobs.

Basic Income could grow Canada’s economy $80 billion a year — more than Canada’s tourism and hospitality industries combined — and create nearly 600,000 jobs in 5 years.

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  • Basic Income could grow our economy $80 billion/year.
  • It could concurrently generate $400 billion in additional GDP within 5 years — or up to $2 trillion in 25 years.
  • Basic Income could add nearly 600,000 full-time equivalent within 5 years — or over 900,000 jobs in 25 years.

2. Basic Income can be good for business.

Putting money in Canadians’ hands lets them spend it in their local economies, which could cause private capital investments to increase up to $15 billion a year — more than double all Canadian venture capital investments a year.

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  • Basic Income could add $32 billion/year on average in gross operating surplus (GOS) to Canada's businesses within 5 years — as much as the annual profits of our 3 biggest banks combined.
  • GOS could grow up to $745 billion in 25 years.
  • Basic Income could increase private capital investments (PCI) $15 billion/year on average within 5 years.
  • PCI could grow up to $336 billion in 25 years.

3. Basic Income is a raise for working Canadians.

Economic activity from Basic Income would cause businesses to hire, spending up to $32 billion a year in total wages— as much as the profits of our top 3 banks.

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  • Basic Income could grow aggregate wages 2.6% in year 5 — or $32 billion a year on average over 5 years. Aggregate wages could grow up to $621 billion in 25 years.
  • 1.7M families earning between $10-19K from work could see their total income double (+114%).
  • 3.3M families earning between $20-29K from work could see their total income increase +34% on average.
  • Canadians earning up to $109,000/year could see their disposable income either increase — or decrease no more than 1.1%
  • Basic Income could increase disposable income $122 billion in 1 year for the bottom 60% of Canadians by income.

4. Basic Income can be a self-sustaining investment.

Basic Income could grow the economy more than it costs in the long term, making this a sustainable investment over time. It could generate $22 billion a year in new government revenues from new economic activity— as much as all EI Premiums paid by employees and employers.

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  • The cost of Basic Income as a percentage of GDP could shrink over time, despite covering more Canadians, since economic growth from the program will increase faster than cost.
  • Basic Income could generate $22 billion a year in new government revenues.
  • It could add $109 billion in additional government revenues within 5 years — or up to $514 billion in 25 years.
  • Basic income can be funded with minimal tax increases, by using debt that can be paid down with new tax revenues — while growing the economy and raising incomes of most Canadians.

5. All while ending poverty and growing the middle class.

Basic Income could grow the economy sustainably while lifting 3.2 million families out of poverty and giving a raise to most Canadians.

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  • 3.2M families lifted out of poverty — ending poverty.
  • 129,000 single-parent families lifted out of poverty — 85% of which are female-led.
  • 2.3M families in the lowest income bracket ($0-9K) could see their income at least triple.

Basic Income can grow the economy and create jobs.

Basic Income could grow Canada’s economy $80 billion a year — more than Canada’s tourism and hospitality industries combined — and create nearly 600,000 jobs in 5 years.

  • Basic Income could grow our economy $80 billion/year.
  • It could generate $400 billion in additional GDP within 5 years — or up to $2 trillion in 25 years.
  • Basic Income could add nearly 600,000 full-time equivalent within 5 years — or over 900,000 jobs in 25 years.

Basic Income can be a self-sustaining investment.

Basic Income could generate $22 billion a year in new government revenues — more per year all EI Premiums paid by employees and employers.

  • Basic Income could generate additional government revenues of $22 billion/year.
  • It could add $109 billion in additional government revenues within 5 years — or up to $514 billion in 25 years.
  • Basic income can be funded with minimal tax increases, by using debt that can be paid down with new tax revenues — while growing the economy and raising incomes of most Canadians.

Basic Income is a raise for working Canadians.

Basic Income could grow disposable income by $122 billion in 1 year for the bottom 60% of Canadians — more than the GDP of Canada’s restaurant industry.

  • Basic Income could increase disposable income $122 billion in 1 year for the bottom 60% of Canadians by income.
  • It could grow aggregate wages 2.6% by year 5 — or $32 billion/year per year over 5 years.
  • Basic Income could grow aggregate wages up to $621 billion, in 25 years.
  • Canadians earning up to $109,000/year could see their disposable income either increase — or decrease no more than 1.1%

Basic Income can be good for business.

Basic Income could grow Canadian businesses by $32 billion a year in gross operating surplus — more than the yearly profits of our 3 biggest banks combined.

  • Basic Income could grow Canada’s businesses by an average of $32 billion/year in gross operating surplus (GOS) within 5 years.
  • GOS could grow up to $745 billion in 25 years.
  • Basic Income could increase private capital investments (PCI) an average of $7 billion/year within 5 years — more than twice as much as the annual investments by Canadian venture capitalists.
  • PCI could grow up to $336 billion in 25 years.

All while ending poverty and growing the middle class.

Basic Income could grow the economy sustainably and support Canada’s businesses — all while lifting 3.2 million families out of poverty, ending poverty.

  • 3.2M families lifted out of poverty — ending poverty.
  • 129,000 single-parent families lifted out of poverty — 85% of which are female-led.
  • 2.3M families in the lowest income bracket ($0-9K) could see their income at least triple.
  • 1.7M families in 2nd-lowest income bracket ($10-19K) could see their income double.
  • 3.3M families in the 3rd-lowest income bracket ($20-29K) — by far the largest group by population — could see their income increase +34%.

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