They knew how to frame good policy within a party’s platform to attract voters. When I worked as a senior policy advisor for the government of Canada, the most effective bureaucrats that were able to implement policy were aware of politics and ideology and how governments of the day are driven by them and the likelihood of votes.
Economies with full employment operate at their full potential with higher productivity and stability than those with high unemployment. People want better jobs and a consistent source of income. A universal job guarantee would build on these established programs and be more likely to garner political support based on precedent. (Shutterstock)Ĭonsider Canada’s summer student work programs, where the Canadian government subsidizes businesses to hire students, or other employment programs, such as building infrastructure to last generations or tree planting. Job programs keep people in the labour force, alleviate poverty, improve health and well-being, add meaning to people’s lives and help the most vulnerable. Considering there are already programs that help people find fulfilling jobs, it isn’t too much of a stretch to imagine a scaled-up version run by the federal government. On the contrary, a universal job guarantee would be more appealing to voters because it addresses labour shortages while guaranteeing minimum wage. A program like that would require either the Liberal or the Conservative Party of Canada to make universal basic income part of their electoral platform. Part of the reason why universal basic income hasn’t been successful in Canada is because it hasn’t been championed by any mainstream Canadian political party. It would ensure that people are able to earn money and, therefore, be able to spend money. In contrast, a universal job guarantee would generate revenue for the government through taxable income, thereby reducing the cost of the program while simultaneously enhancing other sectors of the economy, such as the environment or infrastructure. To take the resulting steam out of the economy, policy-makers often resort to blunt counter measures like increasing interest rates, which can lead to a recession. The effects of cash stimulus without controls can be far reaching. Government stimulus programs can reduce the supply of lower skilled employees in the job market, as some people invariably decide to stay at home, rather than work. This would result in a vicious cycle: employers would raise wages to attract those willing to work, which would increase inflation and cost of living, causing businesses, in turn, to raise costs to be able to afford higher salaries for their workers. Like the Canada Emergency Response Benefit, universal basic income might take away the incentive to work for some, resulting in a labour market bereft of workers. These programs reduce the supply of lower skilled employees in the job market, as some people invariably decide to stay at home, rather than work. As we have seen with government support programs related to COVID-19, government stimulus in the form of direct cash can cause inflation. There are a few unique barriers that undermine universal basic income and its ability to be implemented. They also provide crucial non-monetary benefits that have historically been associated with universal basic income, including improvements to “ health, education, social cohesion and productivity.” Economic stabilizer They keep people in the labour force, alleviate poverty, improve health and well-being, add meaning to people’s lives and help the most vulnerable. Job guarantee programs are crucial for a number of reasons.