Intertemporal Choice - Eliminating Poverty

 Intertemporal Choice

The act of choosing to accept $20 dollars today

instead of $100 dollars a week from now.

Difficult to do, isn't it? Depends a lot upon who is offering the deal, how much trust is involved and where you think that you will be in one week. Even then studies have shown that an overwhelming number of us would still choose $20, accepting the old truism that "a bird in hand is worth two in the bush". This thinking with respect to the world we live in is what got us to an economic system of short-term gains and unfettered resource extraction. 

Whether or not you agree with the connection, it was my thought when I examined Vision Green Principle 4.12. "Eliminating Poverty". (No particular reason that I chose that as the first one into which to delve - just where the book opened.)

Ever since Bill brought a booklet into our home about a guaranteed minimum wage, I believed in it. I was hooked on the "child allowance" cheques of the 1950's when they meant something; mom gave "my" allowance to me as my "clothing allowance". I was delighted to have the independence to manage my own purchases. (Outerwear and underwear were exempt - Mom looked after the costs there.) A guaranteed minimum wage just seemed to be an extension of the child allowance.            

Many leaders talk about reducing or eliminating poverty; several "experiments" have been held in various countries and various parts of Canada with guaranteed minimum wages - and the findings have been positive. When guaranteed a minimum liveable income, people recycle the money in the community, local businesses benefit, petty crime goes down, domestic violence goes down, child hunger goes down and people become healthier. 

We know what to do, someone has to have the guts to do it.

How would it work?

Everyone would all get the bi-monthly or monthly cheque. Many of us will be fortunate enough to never need it. Accessing the program would require only citizenship. A large part of the "poverty-industry" especially government programs would disappear - various programs of welfare, disability pensions, seniors benefits, and unemployment insurance would no longer be needed. Social workers, doctors, and health care workers would be freed of the endless paperwork to provide the care that is needed for mental health, addictions and healthy family relations.

There would be built-in incentives to be gainfully employed as well - when there are jobs to be had. Of course, there would be a few who would figure out how to abuse it somehow - but there are those that do so with every existing program!

The National Council of Welfare has estimated that 15% of Canadians live in poverty and we know many who manage to escape poverty by two or even three jobs.  From where I live, many escape hunger by subsistence farming and gardening. From my experience as a doctor in rural, remote or inner city, I believe that a Guaranteed Liveable Income would enormously change health care needs - anxiety and mental health issues that underlie so much of the demand upon our time.

The actual steps listed by the Green Party to eventually eliminate poverty stop short of research leading to implementation of a Guaranteed Liveable Income. Certainly it will be my duty to press for bolder steps.

I consider the program another way of "paying forward" for a brighter future for many.