“What these data shows is that basic income works, and I think if we have the political will to actually put an income floor under people, I think this is evidence to show some of the benefit,” Elaine Power, a professor at Queen’s University and co-author of “The Case for Basic Income,” told the Star.
The number of Canadians making under $20,000 grew by more than 415,000 as lower-paying positions disappeared. However, nearly one million fewer Canadians reported having no income in 2020 compared to 2019. In general, the low-income rate decreased in 2020, particularly for households with children who received the Canada Child Benefit.
Because pandemic benefits have largely ended, the agency was quick to note that the income trends shown in the data offer only a snapshot, which might no longer reflect the current economic reality.
“Income trends could therefore remain unsettled into 2021 and 2022,” the agency said. “Some of the most striking developments for 2020, specifically the strong growth in household after-tax income and the drop in income inequality and in the low-income rate, are not expected to continue in 2021 and 2022 because the driving force behind the recent movements was temporary in nature.”
According to health economist Evelyn Forget, the data demonstrating that CERB was in many respects effective should prompt low-paying employers to reconsider their strategies for drawing employees and enhancing working conditions.
