What If Basic Income Isn’t A Disincentive to Work

“If you give people free money, no one’s going to want to work.”

The consequences of a significant number of Canadians walking away from the workforce would be dire indeed. The economy would take a significant hit, and the amount of money the government collects in taxes would drop, causing services that we depend on to become more expensive, less available, or both.

The fear that people receiving a basic income would just stop working is based on a valid concern.

But is it true?

What if basic income doesn’t disincentivize work?

First of all, it’s important to note that a basic income is just that: basic. No one can get rich off of a basic income. It is designed to be just enough to make sure you can afford food and keep a roof over your head.

Until you are making a reasonable amount of money, any income you earn from work would get added to your total income. The basic tenet of incentive - the more you work, the more money you make - isn’t removed.

So why would people continue to work if they were getting a basic income?

1. To get ahead. A basic income is not enough to pay for vacations, the latest electronics, or a new car, or to buy a home. It’s basically enough for food and a roof over your head. For anything else, you would have to find more money, and that’s why most people would still prefer to work. A part-time job would increase your income. A full-time job would increase it more. Going back to school and getting the qualifications for a really good job, and then getting that job, would increase your income substantially. So the incentive to work hasn’t gone anywhere. But the consequences of misfortune, or an uncertain economy, have been softened.

2. To find meaning. We tend to believe that we earn money as a reward for the unpleasantness of working. But many people find meaning and value in the work they do, it’s not just a means to a paycheque.

   Indeed, it’s this search for something meaningful to do with our time that drives many people’s satisfaction at work. It’s when this satisfaction is lacking that people may come to resent their work - but it’s rarely because they don’t want to work, it’s because they aren’t finding it meaningful.

   If you already find meaning and value in your work, basic income likely isn’t going to change your desire to do it. If you don’t find meaning in your work, basic income offers the opportunity to take a risk - to start a business, to retrain, to start a new job - in order to find more satisfying employment.

3. To live healthier lives. It’s extremely stressful to be living on the edge of a financial abyss. To be uncertain about how you’re going to pay for your housing, food or bills. And yet, that’s the reality for thousands of working Canadians, as minimum wage is not a livable wage in Canada’s expensive cities. Working more than forty hours a week can be extremely draining, as can stress and anxiety. Studies have shown that basic income can lower stress and improve people’s health outcomes.

4. To have choice and freedom. In our current economy, many people find themselves trapped. Trapped in bad situations with abusive partners. Trapped in dead-end jobs with no hope for promotion or escape. Trapped in the cycle of poverty and homelessness. Trapped in debt. There are a significant number of Canadians who have - through no fault of their own - had their choices taken away from them. Canadians who want to improve their lives, but have no clear path to do so, and no choices available to change their destiny.