Basic Income Guarantee: A DETERMINANTS OF HEALTH PERSPECTIVE Dr. Lisa Simon, Associate Medical Officer of Health, Simcoe Muskoka St. Catharines, January.

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Presentation transcript:

Basic Income Guarantee: A DETERMINANTS OF HEALTH PERSPECTIVE Dr. Lisa Simon, Associate Medical Officer of Health, Simcoe Muskoka St. Catharines, January 13, 2016

A brief look at Poverty and its health impacts Potential role of a basic income guarantee (BIG) BIG momentum

POVERTY AND ITS IMPACTS

Poverty as a determinant of health The overwhelming weight of evidence demonstrates the powerful effects of socioeconomic and related social factors on health. “ ” Braveman and Gottleib, Public Health Reports, 2014

and a determinant of… Educational attainment Employment security Children’s future income Criminal involvement

Poverty in childhood Toxic stress derails healthy development Ingimage.com

Pathways: poverty poor health Material pathways: direct relation between what income can buy and health effects Psycho-social pathways: indirect relation between income and health effects, mediated through variety of psychological/social mechanisms Allostatic load: chronic social and environmental stress Epigenetics

Source: Ontario Association of Food Banks (2008) The Cost of Poverty: An Analysis of the Economic Cost of Poverty in Ontario The Cost of Poverty in Ontario

Who lives in poverty in Simcoe County? Data Sources: Statistics Canada, Income Statistics Division, Annual Estimates for Census Families and Individuals [2012], 13C0016. Taxfiler Table F-18 Family data. Statistics Canada, National Household Survey, Target Group Profile #10 - Recent Immigrants [2011], EO2065. Statistics Canada. National Household Survey, Target Group Profile #11 – Aboriginal Identity [2011], EO2065. Statistics Canada. National Household Survey, Target Group Profile #8 – Population with activity difficulties/reductions [2011], EO % of children 0-17 yrs. 13% of adults yrs. 3% of seniors 65+yrs. 52,690 people (12% of total population) 6,310 (32% of) lone-parent families 2,950 (19% of) pop’n with Aboriginal identity 780 (21% of) recent immigrants 14,450 (15% of) pop’n with activity limitations

Voices of Poverty Experience A County of Simcoe Initiative “I know I need to get my high school, and it’s affecting my life, but how can I with no computer at home, no one to look after my kids and no money? There’s so much in the way.” - Female, Orillia

Income inequality Data Source: Statistics Canada, Income Statistics Division, T1 Family Files [2011], Reference

Health inequities

Preventable mortality

Diabetes

Food insecurity 9% of households in Simcoe County reported experiencing food insecurity at least once in the past year. Data Source: Canadian Community Health Survey [ ], Statistics Canada, Share file, Ontario Ministry of Health and Long-Term Care

BASIC INCOME GUARANTEE

Basic income involves a regular, reliable distribution of money from government to people to help ensure total income sufficient to meet common basic needs. It can be distributed on a universal basis (demogrant), or an income-tested basis using the income tax system. What is Basic Income?

Rationale For Basic Income 1. Poverty: Basic income can be an effective, dignified, and efficient part of a comprehensive poverty reduction strategy. 2. Income inequality: Basic income can help close the gap – in income, somewhat, and in personal opportunity and power. 3. Precarious labour: Basic income can increase social security in a time of substantial labour market change and uncertainty.

Precarious Employment Study of precarious employment in GTA-Hamilton found: 50% growth of precarious labour in 20 years 50% of workers working either full- or part-time with no benefits or job security, or in temporary, contract or casual positions employment insecurity has an independent effect on household well-being and community connections, regardless of income level Source: Poverty and Employment Precarity in Southern Ontario (PEPSO). It’s More than Poverty: Employment Precarity and Household Well-being

Canada Child Tax Benefit National Child Benefit Supplement Ontario Child Benefit Working Income Tax Benefit Old Age Security Guaranteed Income Supplement Existing Programs Approximating Basic Income

Canadian guaranteed annual income field experiment 8.5% decrease in hospitalization rates for participants vs. controls, and decline in physician contact Increased high school completion Minimal work disincentive Manitoba Mincome Experiment Source: Forget, E. The Town with No Poverty: The Health Effects of a Canadian Guaranteed Annual Income Field Experiment. Canadian Public Policy, Vol. xxxvii, No. 3, 2011.

Basic income and stigma Calnitsky D. “More Normal than Welfare”: The Mincome Experiment, Stigma, and Community Experience. Canadian Review of Sociology (forthcoming): “The design and framing of Mincome led participants to view payments through a pragmatic lens, rather than the moralistic lens through which welfare is viewed. Consistent with prior theory this paper finds that Mincome participation did not produce social stigma.”

Impact of Child Benefits Canada Child Tax Benefit and National Child Benefit Supplement improved math and reading skills improved child mental and physical health measures Source: Milligan and Stabile, 2011

Impact of Seniors’ Benefits Old Age Security & Guaranteed Income Supplement Canada now has one of lowest rates of seniors poverty in world When low-income Canadians leave workforce after turning 65, their poverty level drops substantially: 50% fewer experience food insecurity at aged than Source: Emery, Fleisch and McIntyre 2013

Key Questions & Debates in BI design What is the purpose of the Basic Income Guarantee (BIG)? What programs should it replace? Maximum amount of the BIG? Demogrant and/or negative income tax? If negative income tax, what is the reduction rate? Eligibility: who may receive it? Adjustment in BIG amounts based on family/household size? Frequency of income payments? Sources of revenue to fund the BIG? What level of government to deliver?

Affordability of a BIG Cost of a BIG depends on: how generous it is, how quickly benefits are phased out with additional income earned, and how existing social programs are affected Estimated costs in addition to current social spending: $17 - $58 Billion (Roos and Forget, U of Manitoba) $40 Billion (Boadway and Power, Queen’s U) Estimated annual cost of poverty in Canada: $79 to $95 billion (2014 $) Factoring health, crime, intergenerational and lost productivity costs (Source: Ontario Association of Food Banks (2008) The Cost of Poverty - figures extrapolated from the report’s estimate of $72-$86 billion in 2008 $ x inflation since then)

BIG MOMENTUM

Support for basic income Supported by generations of economists and social policy experts, across the political spectrum Resurgence of public support in recent years International pilots and programs, most recently: Finnish government pursuing basic income Dutch cities basic income experiment

Health sector support for basic income in Canada Alberta Public Health Association, 2014 Association of Local Public Health Agencies (Ontario), 2015, and several local Boards of Health Canadian Medical Association, 2015 Canadian Public Health Association, 2015 Ontario Public Health Association, Ontario physicians signed letter to ON Minister of Health & Long-Term Care, 2015 Also: Canadian Association of Social Workers; Food Secure Canada; Community Food Centres of Canada; and more

Growing public & political support for basic income in Canada Federal political party resolutions Provincial politicians in PEI, Alberta, and elsewhere Positive meetings with several ON provincial officials Municipal and regional council motions Support from mayors of large and small communities Local & regional basic income support groups Prominent Canadians

Local advocacy opportunities Community engagement Advocate to MPs and MPPs Seek support of local politicians/ councils Public awareness

Acknowledgements Rob Rainer, Basic Income Canada Network

Thank you Miigwetch Gracias 谢谢 Dankie Takk Spacibo Dziękuję Mahalo Merci