Saturday, November 20, 2010

End poverty: guarantee $20,000 a year for the poor

The Globe and Mail:

Nicole Gray, a 24-year-old single mother living in Victoria, feels like a “beggar” every time she has to go into a government office and ask for help to pay her bills.

She has finished her diploma to be an office medical assistant despite having gotten pregnant as a teenager. But job losses and the difficulty of raising her son, now 7, on her own have made her income unpredictable. Meanwhile, she says, the system is suspicious of every request and doubts every word.

There are hundreds of rules. She has been sent away because she was missing one document. She has had to justify a no-contact order against her son's father and had a caseworker scrutinize every detail of her bank account. Every interrogation “makes you feel very low to the ground,” she says. And the worst, she says, is that you learn quickly “that you can't count on anything.”

But what if we gave Ms. Gray and other poor Canadians something to count on: cash directly in their pockets, with no conditions, trusting people to do what's right for them? It's a bold idea, and it runs counter to the paternal approach to poverty that polices what is done with “our” money and tries to strong-arm the poor into better lives.

That approach has had limited success: The wage gap continues to grow, and one in 10 Canadians still struggles below the low-income line.

The idea of giving money to the poor without strings is not new. It melds altruism and libertarianism, saying both that the best way to fight poverty is to put cash in poor people's pockets and that people can make their own choices better than bureaucrats can. As a result, it can find support in theory from both left and right.


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