This document discusses the concept of a basic or guaranteed income. It provides background on the author and their qualifications. The document then outlines several topics related to a guaranteed income, including definitions, examples from Ontario and Finland, impacts on wages and inflation, average welfare payments, job losses during COVID-19, and affordability concerns. It questions whether simply giving people money addresses root economic issues and suggests alternative approaches like skills training.

1. BASIC INCOME AND
ITS AFFORDABILITY
PAUL YOUNG, CPA, CGA
DATE: APRIL 21, 2020

2. PAUL YOUNG - BIO
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Internal Controls
• SME – Financial Planning and Analysis
• SME – Business Strategy
• SME – Emerging Technology
• SME – Financial Solutions
• SME – Business Process Change
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. AGENDA
• What is guarantee income
• Supply Chain Flow with Consumers and income
• Wages, Housing Prices and Inflation
• Average Wages / Canada
• Finland
• Training / Development
• What’s next

4. WHAT IS GUARANTEE INCOME
• Guaranteed minimum income (GMI) (also called
minimum income) is a system of social welfare
provision that guarantees that all citizens or families
have an income sufficient to live on, provided they
meet certain conditions.
Source - Wikipedia

5. ONTARIO GUARANTEE
INCOME• Volunteers in Peterborough and the City of Kawartha Lakes have
been lobbying to be test communities for Basic Income Guarantees, a
program that ensures every resident has enough money for food, rent
and other necessities. The goal of the program is to create a healthier
population so there are fewer demands on health and other social
services when people fall into crisis.
• Retired Senator Hugh Segal’s report on a minimum income for
Ontario was released in November. It would see Ontario set up a
multi-year pilot to measure its effectiveness starting in April, 2017.
Segal recommends a monthly payment of at least $1,320 for a single
person which is about 75 per cent of the province’s poverty line.

6. SUPPLY CHAIN FLOW
Consumers Retail Stores
Wholesalers Manufacturers
Analysis
• Employment Income
• Business Income
• Pension Income
• Social Welfare Payments
• Carbon Tax impacted energy costs
(AB, ON)
• Ontario has high hydro rates
• High housing costs
• Wages are not keeping pace with
inflation

7. WAGE GROWTH
Spencer Fernando – April 8, 2017
As reported by Bloomberg, average hourly wage increases were up
1.1% year-over-year, which was the lowest increase since 1998. It is
also far below the historical average of 2.7% in the last 10 years.
When looking further into the numbers, things are even worse for
permanent workers. They had the lowest wage growth since 1997.
And when it comes to the province-by-province picture, the increase
in Ontario was only 0.1% year-over-year, which is the lowest
increase ever recorded.
So much for Sunny Ways!!

8. AVERAGE WELFARE PAYMENT
Syrian Refugee
$3,600/month
Welfare
$850 to $1,100
/month
* Depending on
province)
1. Precarious work continues to grow - The report says the country added 82,000 less desirable, part-time positions last
month – and lost 28,000 full-time jobs.
2. Public Sector jobs continue to outpace private sector jobs - A closer look at the numbers shows the public sector made
the biggest contribution to the July increase with 49,600 new jobs, while the private sector added 5,200 positions.
- https://www.slideshare.net/paulyoungcga/employment-market-canada-july-2018

9. COVID/19 – JOB LOSSES (RETAIL AND
HOSPITALITY SECTORS
• Basic income? How about we fix what ails the economy?
• You can expect 500K or more jobs not coming back post-covid19. Could this be grounds for the
government to push basic income?
• Job Quality - https://www.slideshare.net/paulyoungcga/job-quality-canada-vs-usa
• Growing the economy - https://www.slideshare.net/paulyoungcga/slow-economic-growth-canada-
march-2020
• Emphasis on the skill trades - https://www.slideshare.net/paulyoungcga/2019-election-skills-
management-career-and-employment-canada-september-2019
•
• Throwing money at the symptoms does not make the problem go away!

10. ENERGY POVERTY – PREMIER WYNNE
• There has been no shortage of industry experts or professors on this show
over the years that warned we were heading for energy poverty.
• Why did she ignore the catastrophic confirmation from experts, including
her own party sources, and continue to double down while wallowing in her
majority?
• Why did they not scrap the act that lacked due diligence, along with cost
analysis, and start over?
• Wynne play on people’s sensitivity for the environment
Global News – Scott Thompson – March 28, 2017

11. BLOG – GUARANTEE INCOME /
SWITZERLAND
Switzerland said no to Guarantee Income –
• “In Switzerland, opponents warned that the proposal would derail an economic model
that, far from showing signs of near-collapse, has allowed the country to remain among
those with the highest living standards in the world, even with a growing and aging
population. Switzerland has an unemployment rate of around 3.5 percent, less than half
the average in the European Union. The backers of the plan did not detail how it would
be financed. But the Swiss government and almost all the main political parties had
urged voters to turn down the guaranteed income plan, warning that it would require
raising an additional 25 billion Swiss francs a year through deep spending cuts or tax
increases.”
https://www.nytimes.com/2016/06/06/world/europe/switzerland-swiss-vote-basic-
income.html (You cannot tax people to prosperity)

12. BLOG – SOCIALIST DIERDRE PIKE VS
COMMON SENSE
If this person can work, then she should be working!
Hamilton has lots of jobs openings!
https://www.slideshare.net/paulyoungcga/city-of-hamilton-
issues-and-solutions-may-2018 or
https://www.thespec.com/news-story/8727662-hamilton-
unemployment-rate-drops-to-4-6-per-cent/
If you notice my work is backup, right?
If this gal as well as other made poor career choices that is
their problem!

13. FINLAND AND BASIC INCOME
Source - https://www.businessinsider.com/finland-basic-income-experiment-reasons-for-failure-2019-12
• People are not encouraged to see out other opportunities
• Free cash did not help the economy - https://www.theguardian.com/world/2019/feb/08/finland-free-
cash-experiment-fails-to-boost-employment
• Finland has high cost of living - https://borgenproject.org/high-cost-of-living-in-finland/
• One off policies do not fix systemic issues facing the economy, i.e. competitiveness, skills gaps, etc.

14. ONTARIO/SOCIAL SERVICES
Source – Government of Ontario
• Govt of Ontario 3rd largest
spending is social services
• Guarantee Income
Supplement requires
monitoring which means
govt workers.
• Many of the Candidates
selected either ran business
or had no interest in
working
• Welfare is need to help
people get back on their
feet. Welfare should be
more targeted to benefit the
ones that need it the most.
• Socialists feel govt role is
take care people from cradle
to grave.

15. MARGARET THATCHER

16. PIERRE ELLIOT TRUDEAU

18. FINLAND AND GUARANTEE INCOME
Source - https://www.reuters.com/article/us-finland-basic-income-
idUSKCN1PX0NM?utm_campaign=trueAnthem:+Trending+Content&utm_content=5c5d4d5b04d3011dd162b83f&utm_medium=trueAnthem&utm_source=twitter
Finland said “Guarantee Income did nothing for employment
Source -
https://globalnews.ca/news/4777313/liberals-
national-guaranteed-income/
The Trudeau Liberals appear to be
warming to the idea of a guaranteed
national minimum income as they
search for ways to help Canadian
workers adapt to an unsteady labor
market.
It has been the liberals that have introduced
bad policies
• C69 – Pipelines
• Carbon Taxation
• Small Business Tax Reforms
• Hikes to CPP
Source -
https://www.slideshare.net/paulyoungcga/is-
canada-losing-its-business-competitiveness-
february-2019

19. AFFORDABILIT
Y / JACK MINTZ
Source -
https://business.financialpost.co
m/opinion/jack-mintz-a-
guaranteed-basic-income-sounds-
great-until-you-see-the-
details?utm_term=Autofeed&ut
m_medium=Social&utm_source=
Facebook&fbclid=IwAR2c5pOI33
tj6lPdXuEdwAvoM1s0IwD4WZH
TWZir62ceVsl28AGGQBWrzo8#
Echobox=1550232240

20. TRAINING AND
DEVELOPMENT
• If you like to learn more
about trade and/or other
subjects as part of your
professional learning and
development then feel free
to review my material on
https://www.udemy.com/
(search Paul Young CPA
CGA)
• These subjects address how
to fixed issues with housing
and/or systemic issues
related to economy including
government policies

21. SUMMARY
Source - https://www.metronews.ca/news/winnipeg/2016/03/03/winnipeg-mp-petition-for-guaranteed-income.html
• The MP table the change has said nothing about the $185B that is already available to various groups as part of the income re-
distribution. We have seen in Scandinavia countries that if you change income with people then it does not motivate them to achieve
more in life.
• Let's face facts current programs that support low income except for minimum wage are paid out a tax bucket. So, if you make changes
then you likely going to either change threshold for people or you are going take control of the money and lump into one group of people.
The problem with guarantee income it means different things to different groups of people
• It is not free if someone else pays for it - https://www.slideshare.net/paulyoungcga/social-spending-and-tax-fairness-197908290
• Trudeau has decided to raised taxes as well as introduced more regulations - https://www.slideshare.net/paulyoungcga/class-warfare-
canada-taxation-february-2019
• Trudeau focus has not been about making Canada competitive in terms of Foreign Direct investment -
https://biv.com/article/2019/01/headwinds-horizon-canadian-mining or https://www.slideshare.net/paulyoungcga/gdp-and-economy-
canada
• Trudeau is trying to used guarantee income to buy votes because his economic policies have been failures -
https://www.slideshare.net/paulyoungcga/scorecard-liberal-government-of-canada-under-justin-trudeau