A Canada-wide basic income could increase the size of the economy by tens of billions of dollars a year and create hundreds of thousands of new jobs, a new research paper says.
In a report issued Wednesday, the Canadian Centre for Economic Analysis (CANCEA) looked at two potential models of a basic income, and found that both of them would raise about 2.3 million families above the federal poverty line.
Both models studied would result in larger economies and more jobs in the long run, though how much larger, and how many more jobs, depends on how generous the program is, and whether or not it’s funded by debt spending, the study found.
Basic income advocates have long argued the policy would result in a larger economy because, out of necessity, low-income earners spend all their money. So money funneled to low-income households ends up as an immediate economic stimulus.
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