Either a Universal Basic Income or Raise the Minimum Wage, Which One?

An Exhaustive Pros and Cons Look at a Universal Basic Income

Okay I have talked about this before on this blog about UBI. This has been an idea that has been tossed about for a longer time than I thought before looking into and reading this informative editorial look from the Globe and Mail newspaper, Canada's leading newspaper in my opinion.

As I was talking about and using the example of part time work and low income paying jobs in yesterday's post having a small business owner restaurant having trouble getting anyone to work for them over collecting the CERB, it brings home how bad things are out there. They are getting worse and it is just the pandemic that has finally highlighted it.

According to Statscan in 2018 if you worked 30 hours a week that is full time hours. In many businesses they do not want to work you for 30 hours or else they may have to add benefits or any perk you may be entitled to for working full time with them.

Now like I said yesterday it is not the small business owner's fault he cannot employ you for 30 hours a week. There may not be enough work and so the operator has to spread the hours among his hired staff or else they would leave. The small business owner usually is working under tight margins all the time or business is seasonal or variable depending on such things as weather for outdoor events etc.. It is mind bending how difficult it is to predict business next week let alone forecast a year in advance for a lot of operators.

With that in mind we could not possibly think of raising the minimum wage although that would be the easiest thing to do. Throw in a pandemic and for most it would be impossible to survive suffering another expense on their crippled revenue especially when looking ahead getting back to normal may take years not weeks or months.

Now in 2018 part time workers numbered 20% which is  working less than 30 hours a week. That number will no doubt rise as predicted when unemployment will remain in the double digits well into next year. Employers are looking even at their full time staff and streamlining operations asking people to be furloughed or take an early retirement. Some will not be able to survive if this is the case. Meaning that many people were living paycheck  to paycheck before the pandemic. Now the companies don't care about your monthly payments do they? The federal deficit has gone over a trillion dollars so which way do you think your taxes will go. Inflation is skewed so it doesn't look too bad each month. It is 2% target but every month there is always a caveat like the price of shoes dropped 5% but gas went up 8% so if you left out the gas our inflation is right on. I don't know about you but I never go shopping for shoes on a weekly basis but I fill up the car of gas weekly and I do eat! The new normal is now the employer knows the employee can now work from home during this pandemic. So they say stay at home but oh by the way you do not need gas for your car now so you have to take a pay cut. I have heard of that happening. With the workload getting heavier who has time for anything like looking for a balance in life. Isn't your mental health and physical well being important too.

Back in the 70's they said the advent of the computer will free up people's time. Did it?

These are different times right now. There has to be huge changes that need to take place or we are heading for an Armageddon. The direction we go now will make our country more livable and sustainable if we make the right courageous moves.

The only thing that scares me about change are the politicians need to come together on this one. They have a habit of not doing it. Until they do something many people will call for action in increasing numbers.

Read the article and see what you think about UBI.