The biggest disappointment of the latest financial crisis was that it didn’t change much. It seems to be a mere blip. The world seems to be carrying on as it did before the crisis. The pursuit of money and consuming still predominates. Did we learn anything? If not, what is preventing the same crisis from repeating itself in the near future?

We need to start seriously questioning. What gives someone or something value? Our society places undue significance on someone’s or something’s ability to create more money. Barely a question is asked as to what value one’s employment or wealth gives the world. Why is it that we allow the market to determine that working at an unfulfilling or even destructive job is worth more than volunteering in your community or taking care of family? Why do we continue to compete instead of cooperate?

Questions of how wealth should distributed, how democratic our workplaces and communities should be, how sustainable our economies should be or what the purpose of life is, is still not seriously being debated. Instead we just accept some make billions of dollars speculating, the few make the decisions, and that we continue to be a wasteful society that manufactures what we want, instead of what we need.

The warning signs are everywhere. The sirens are alerting us to trouble. Yet we continue on blindly in the same old world. We are missing an opportunity of a lifetime to create a brave new world.

Part 1 – A Living Income

The first issue that needs to be on the table is income. We need an income that ensures everyone is living above the poverty line. We need a living income recognizing that paid work, volunteering, housework, and child care are all important in creating healthy families and communities. By working together we can create a living income for everyone, including seniors, the disabled, those on social assistance, temporary foreign workers, and the working poor.

                          
 
What are the benefits of a living income?

1. Poverty would be eliminated.

2. It is simple. Every adult receives a living income. There is no need for complicated tax forms. There is no need for social assistance, employment insurance, family allowance, Canada Pension Program, personal tax credits, child tax benefit, guaranteed income supplements, old age security etc. It is all in one. A living income is a great complement to public housing, education and health care.

3. The government would save money on administration costs. It has been estimated that the administrative costs of social assistance programs is 16.67%. Like per capita health care costs are lower in Canada than the US, a living income saves on administration costs. 

4. Dignity. There is no discrimination, intrusiveness or stigmatization. Just like public education and health care, a living income is a right. Everyone is valued.

5. Peace of mind. If you lose your job, get injured or become ill, you still have an income that is above the poverty line. You will always have an income, no matter what.

How would a living income work? Every adult would receive $1805.50 per month ($21,666 a year) to reach the poverty line. Every dollar earned above this amount would be taxed at a sliding progressive tax rate starting at 50%.

In the 1960s and 1970s the Canadian (The Croll Report – 1971 and MacDonald Commission – 1985) and American (President’s Commission on Income Maintenance Programs – 1969) governments studied a living income. How come we are not re-visiting a living income now?

Will people stop working if they earn a living income? No. A study of 4,800 families in Seattle and Denver was conducted from 1970 to 1978 whereby they were given a living income. The results were that the amount of hours decreased 6% for men and 23% for women. A living income allowed people to spend more time with family, friends and to get involved in the community.

Could we afford a living income? Yes. If the United States eliminated the capital gains deduction and taxed these gains the same as employment income, the difference would ensure that every American would be lifted out of poverty. I am sure the same is true here in Canada.

Is a living income possible? Of course. Opponents were up in arms when universal public education and health care were first proposed. One day we will look back and find it hard to believe that a living income was once not in place.

Lets create a living income for everyone!