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Canada's Ontario Government Ends Basic Income Project (www.cbc.ca)

Lisa MacLeod, Progressive Conservative member and Children, Community and Social Services Minister of the Legislative Assembly of Ontario, said Tuesday that she would end the city's basic income pilot project, calling it expensive and "clearly not the answer for Ontario families." Few details are available as to how the project will come to an end, but MacLeod said her government will end the program "ethically" for anyone who is currently enrolled. Slashdot reader kenh shares an excerpt from a CBC.ca report: Close to 4,000 people were enrolled in the basic income pilot program in Thunder Bay, Lindsay, Hamilton, Brantford and Brant County. The pilot project started in April 2017. It was originally set to last three years, and explore the effectiveness of providing a basic income to those living on low incomes -- whether they were working or not. Under the project, a single person could have received up to about $17,000 a year, minus half of any income he or she earned. "A couple could have received up to $24,000 per year." People with disabilities could have received an additional $6,000.

18 of 575 comments (clear)

  1. Re:what did you expect by sjames · · Score: 5, Informative

    No. It was a fixed scale test where the costs were known up front and already budgeted.

    There was no sudden realization behind this, only a reneged campaign promise.

  2. It didn't work because you wanted it to fail. by bistromath007 · · Score: 5, Insightful

    What you did is not a basic income. It's a garden-variety welfare program, with all the stupid overhead that comes with it, that you called a basic income. This way you can point to this bad joke and use it to discredit anyone actually advocating a basic income. You are deceitful garbage and I hope one day a mob of homeless push you into the sea.

  3. Re:what did you expect by bistromath007 · · Score: 5, Insightful

    If it was actually a basic income you would be getting it, too. The point of UBI is to bring equality of opportunity. $20k a year is a meager living, but it's good enough that you can take some risks with it and actually try to do the entrepreneurial dream we're all told about.

  4. 50% income tax by l2718 · · Score: 5, Insightful

    Indeed, the program imposed a 50% income tax on working participants: for any $1.00 they made working, the "basic income" was reduced $0.50. That defeats the point of the whole programme.

    1. Re:50% income tax by bistromath007 · · Score: 5, Insightful

      You need to work on your reading comprehension, dude. I'm not complaining about getting the money. I'm complaining about the structure of the program disincentivizing me doing the amount of work that I can. I want to work. Until very recently, I've been afraid to, because if I were unable to keep the job for whatever reason, it would cause catastrophic hardship for me for at least several months afterward. A few months ago, I ran into troubles that left me with no choice in the matter, and as a direct result I am facing imminent catastrophic hardship due to bureaucratic error.

      Can you get this through your skull? I want to be useful. I want to be closer to self-sufficiency, and to pay back into the system which has graciously allowed me to live in frightening poverty for the past decade, because I genuinely do see how good that is compared to not eating or sleeping inside. The problem is that the way the program works is completely idiotic, seemingly designed to keep people with problems exactly where they are. I haven't been avoiding work because it's hard, I've been avoiding it because it's not worth the risk. That risk is now manifesting itself before me, even worse than I predicted. This system is shit.

  5. Re:Translation. by 50000BTU_barbecue · · Score: 5, Insightful

    And yet we never run out of other people's money to bail out banks, GM, or get new toys for the military.... (eyeroll)

    --
    Mostly random stuff.
  6. Re:what did you expect by sit1963nz · · Score: 5, Interesting

    The prisons require at least 3 shifts of staff.
    Staff numbers per prisoner need to be high enough for safety.
    Prisons just cost a LOT to build, maintain, and run.
    And then there are the demands to lock people up for longer to "teach them good".
    So they same people who begrudge anyone a liveable benefit seems happy to pay 5 times the amount to lock people up.
    And this is in addition to all the other social issues and costs that causes (fatherless children, etc et etc etc)

  7. Re: what did you expect by bistromath007 · · Score: 5, Insightful

    That isn't how UBI is supposed to work. This "pilot program" fucked it up on purpose by making it needs-based.

  8. They realised.. by thesupraman · · Score: 5, Interesting

    Translation:

    'We realised that UBI reduces governments ability to grow its control over peoples lives, grow is bureaucracy, and make small changes every electoral round therefore trumpeting how we have fixed everything this time. With this in mind we have dropped this like a hot potato, because its not best for US'

    Totalitarianist governments, left and right, HATE UBI because it reduces their power, hence it will never happen.

    1. Re:They realised.. by Pfhorrest · · Score: 5, Insightful

      A flat tax plus a UBI creates an automatic progressive tax curve, so you wouldn't be raising the tax to fund the UBI on the normal tax curve.

      If you want to give everyone $1000/mo, calculate what is $1000/mo divided by the mean income. Fund that UBI by taxing everyone that resulting fraction of their income, flat, everyone pays the same percent. If you do that, people making the mean income pay nothing and get nothing in net; everyone below the mean income benefits some in net (the more the further below the mean their income); and everyone above the mean costs some (the more the further above the mean you are). In the US, around 75% of people make below the mean income, because of how incomes are right-skewed, and the bulk of the 25% above it don't make very much above it, so an UBI funded this way benefits more than a supermajority of people, and costs most of the remainder fairly little. Because the vast majority of wealth is held by a tiny tiny fraction of the populace, who are the ones who drag the mean so far above the median (creating that skew), and so are the ones most affected by it.

      --
      -Forrest Cameranesi, Geek of all Trades
      "I am Sam. Sam I am. I do not like trolls, flames, or spam."
    2. Re:They realised.. by swillden · · Score: 5, Insightful

      Put some numbers to it. Mean per capita income in 2017 was $50,392. So to fund a $12K per year UBI you have to add a 24% flat tax (ideally you should be able to offset that by cutting the progressive tax because of the other welfare programs you can cut, but let's ignore that -- particularly because this program wouldn't replace all of them.).

      Assuming two-adult households, no UBI for kids, and no change to earnings (which would not be true, see below), here are some numbers for pre-UBI income and net UBI income (income plus UBI less UBI taxes).

      $0 -- $24K
      $10K -- $32K
      $20K -- $40K
      $30K -- $47K
      $40K -- $54K
      $50K -- $62K
      $60K -- $70K
      $80K -- $85K
      $90K -- $93K
      $100K -- $100K
      $110K -- $107K
      $120K -- $115K
      $150K -- $138K
      $180K -- $161K
      $200K -- $176K
      $250K -- $214K
      $300K -- $253K
      $400K -- $329K
      $500K -- $405K
      $800K -- $633K
      $1M -- $786K
      $2M -- $1.55M
      $3M -- $2.3M
      $5M -- $3.8M
      $10M -- $7.6M
      $20M -- $15M
      $50M -- $38M

      Not bad. Of course, the big wildcard is the assumption that people stick with their current jobs / incomes. We don't really know what would happen there.

      We're probably safe to assume that in the short term some people would stop working and live on their UBI while they go to school to move themselves up the income ladder. Others might quit their current jobs and start businesses. It seems likely that there would be some changes at the bottom of the pay scales (I'm assuming that the minimum wage would be abolished with enactment of a UBI) as employers might be able to pay less because their employees would need less... but maybe not too much less because employees would feel more freedom to walk away from jobs they dislike.

      Some percentage of the low-income population might well decide that the UBI is enough for them and just choose not to work any more. I don't think this group would be large, but we can't really know.

      Assuming UBI is not available to unemancipated teens, it would have some interesting effects on teen employment, since young adults eligible for UBI would in many cases be willing to work for less than ineligible teens. I assume teens would still be paying the UBI tax.

      We really need some large-scale, long-term UBI tests to find out how people really respond, what decisions they make. And these tests need to be performed in different areas, in different cultures, because there's no reason to believe that every culture will react the same.

      --
      Note to ACs: I usually delete AC replies without reading them. If you want to talk to me, log in.
  9. Re: Easy to dis by bistromath007 · · Score: 5, Interesting

    How the hell is the idea as old as society itself when we didn't even have printed circuit boards until the turn of the last century?

    People who believe that we will always need people to work really need to get a fuller understanding of the history of labor. Will there always be some people who need to do something? Probably. However, the proportion of people doing the hardest work will shrink, drastically. That's how things have always worked, and it's the root of your argument. We need almost nobody to be a farmer, so we invented a million new jobs.

    The thing about general automation is that we're coming close to a point where thinking is the job. If we can automate that, and we're already starting to, then automating jobs where you don't need to think, which is most of them, will be a breeze. The only obstacle to it this very moment is how expensive a good robot is. If their cost drops below what workers demand, that job is dead to human hands.

    Humanity will always serve a purpose. How could we not? We impose purpose upon existence itself, that's what we do. When what is considered "work" that human beings are needed for is so different from what it is now that it is no longer demeaning, unhealthy, or necessary to keep a roof over your head, this argument will be pointless.

  10. Re: Unemployment is very low by presidenteloco · · Score: 5, Informative

    Ever heard of a "dead cat bounce"?
    That's what we're in right now regarding employment numbers.

    Pretty soon, the AI and automation are going to be more cost-effective than people at many jobs, way more types of jobs than can be replaced by new jobs. What new jobs there will be will be for cognitive top 5% geniuses.

    Other jobs which can't be totally replaced will be modified to be hybrid AI/automation + person jobs. The person will probably get paid less than now, since they're only doing part of the work. Many jobs like that will be modified slightly to be more amenable to AI/automation integration.

    If you don't see that this time it's different, because the AI and automated systems are approaching/surpassing parity with human capabilities, then you have blinders on, and you live on a river called denial.

    --

    Where are we going and why are we in a handbasket?
  11. Nobody ever does this right by LostOne · · Score: 5, Insightful

    Let me prefix this by saying that I don't necessarily support implementing a UBI system. However, I have yet to see anything called a "basic income" or "universal basic incomie" pilot program actually do things at all correctly. As other commenters have suggested, these pilot programs seem to be designed so that they must necessarily fail and be examples the politicians can point at and say, "See? We tried it and it failed." I'm not convinced UBI can actually work, but it definitely won't work if it isn't done right.

    To do UBI correctly, it has to go to everybody. And it has to *replace* any income support programs. That is, it has to replace government programs such as (un)employment insurance, government pension plans not funded completely and directly by member contributions (because everyone would get UBI, the pension plan wouldn't be required, would it?). There also can't be any clawback because someone earned some money outside of the program. Doing that just adds administrative cost to the program and discourages recipients from working. Also, every person should get the same amount regardless of age, marital status, etc., though maybe with a minimum age before it kicks in. Otherwise, you recreate existing complex administration processes.

    Now, here's the absolutely critical component. This UBI must not be set at a level where the recipient can afford a car, nice television, nice house, 127 cats, and the like. It should provide for *healthy* subsistence in a reasonable market and require careful management of money to do so (which encourages those who won't work to move out of the expensive cities like Vancouver or Toronto and those who want a nicer standard of living to work). It needs to be set such that if you want a nice living, you have to earn additional money, on which you pay taxes. (Also, under a proper UBI system, only the UBI itself would be income tax exempt. There would be no need for low end tax brackets under such a system.)

    Limited pilot programs just aren't going to demonstrate anything because they're not going to work exclusive of existing income support programs and are going to potentially unbalance the labour force because the people getting free money can work for less. (That's probably why the clawback had to be there in this case.) To truly demonstrate whether such a system can work, it has to be tried at a fairly large scale and *existing* income support programs must be suspended for anyone participating in such a test.

    Now I do understand that there is always going to be someone who isn't well served by such a program. But that's true of all the current options, too. If you're going to insist that it has to be perfect for everyone, then are you willing to give up all the existing social programs that you currently benefit from on that same principle? I thought not. So let's not create strawmen out of extreme edge cases since *every* system has those.

    --

    If it works in theory, try something else in practice.
  12. Re:what did you expect by ShanghaiBill · · Score: 5, Interesting

    Are you saying people in prison should be slowly starved to death or something?

    No, just that most of them don't belong in prison. We have technology like tracking anklets and subcutaneous RFID chips that allows non-violent offenders to "serve their time" outside of prison. For instance, they could be sentenced to clean bedpans in a nursing home for 60 hours per week. Or a white collar criminal could teach finance or computer skills to low income people.

    There are plenty of better options than prison for most offenders. Other countries have a tiny fraction of our incarceration rate, and end up with lower recidivism rates. Prisons are extremely expensive, waste human potential, and generate more crime than they deter.

  13. Re: Translation. by Opportunist · · Score: 5, Insightful

    It's not a justification, it's a question: How comes that there's always money to save the rich from having to go a year with less than a million bucks to blow on shits and giggles, but never any to save those that actually need it to survive?

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  14. Re: Translation. by ShanghaiBill · · Score: 5, Insightful

    The bank bailout was paid back, with interest. So not doing it would have saved nothing.

    Military boondoggles like the F-35 may be stupid, but they are in no way whatsoever an "alternative" to UBI.

    Each spending proposal should be justified on its own merits, not on a scale of relative stupidity.

  15. Comment removed by account_deleted · · Score: 5, Insightful

    Comment removed based on user account deletion