But back to unemployment and the current financial situation.  Disasters like the current crisis should be learning tools.  They are opportunities to rethink a number of previous ideas and practices, from how we regulate financial markets to how we respond to citizens in crisis.  On the latter our system of assistance at all levels needs to be reviewed.  Our social safety net developed ad hoc, various programs appearing at various times as needs arose or ideas presented themselves.  It is time now to systematize their delivery. 

Every Canadian political party has at one time or another toyed with the concept of a guaranteed annual income.  The Conservative Party preferred to call it negative income taxing.  But all parties have considered this basic idea.   There are a number of draw backs which prevented implementation of the policy; start-up costs, bureaucratic reorganization and federal provincial relations.

Under a guaranteed annual income scheme the government would sent every citizen a flat monthly stipend.  Whatever a citizen earned over that would be taxable.  Therefore those who are not in need of the money would have it taxed back.  Our current Old Age Security program works in a similar way.  It is universal.  Those Canadians of wealth declare it as income and end up paying it all back to the government.  A guaranteed annual income would work differently in that it would not be taxable.  Only income earned over that amount would be taxed.  But there would be no personal deductions on your income tax including dependency deductions (because your dependents would be receiving their own guaranteed income).  Not only would personal income tax deductions disappear so would virtually every welfare program now in existence.  Old Age Security (mentioned above), provincial old age supplements where they exist, employment insurance (no need to worry about eligibility arguments), general welfare, disability pensions, family allowance, child tax benefit and the list goes on which shows the waste involved in the current delivery of our social safety net.  Not only would these be replaced by the guaranteed annual income but their bureaucracies would become redundant thus saving millions off the civil service payroll. 

The first year of a guaranteed annual income would be costly.  After the first year though the program would begin to pay back in savings more than it cost initially.  Within a few years governments would have the luxury of lowering taxes or investing the surpluses created.  Of course this idea of short term pain for long term gain would reverse the current philosophy of all Western governments who advocate long term pain for short term gain.  There would need to be a transition plan as the size of the civil service shrank substantially but this problem is not insurmountable.  One of the benefits of a guaranteed annual income is the stability it provides to the economy.  A secure and stable economy would create sustainable growth which would over time absorb the loss in government jobs.  Further, the ability to rely on a base income would encourage individuals to pursue ideas they might now forego for fear that basic family needs could not be met during start-up periods.  This also counters the argument that such a scheme would sap people’s initiative.  That criticism is based on the cynical myth that people only work because they have to.  Like all half-truths this myth has persisted.  The full truth is that people only work at jobs they hate and where they are abused because they have to.   Employers would certainly have to behave better than they currently do to keep valued employees.  A huge stumbling block here in Canada is the idiocy of our federal-provincial relationship.  But once the Canadian public was properly educated in what a guaranteed annual income would mean for them and the country, pity the ignorant government who tried to screw it up.  They might well face the kind of political assassination that happened to the Progressive Conservatives back in 1993.  The Canadian electorate is a fickle lot so piss them off at your peril. 

In the end a guaranteed annual income is the logical solution to our income supplement programs.  Citizens in most modern democracies expect their governments to play a supportive role in their lives.  Therefore, a guaranteed annual income is rational, cost effective, efficient and just plain the right thing to do.