Government Policy – Guarantee Income –

Canada By: Paul Young, CPA, CGA

Disclaimer• This presentation is on view of trade data for Canada. It is up to

individuals to do their own research as part evaluating government polices and their impact on the markets.

Paul Young - Presenter

Bio• CPA/CGA• 25 years of experience in Academia, Industry and Financial solutions• Youtube Channel -

https://www.youtube.com/channel/UCAArky1bAXPSuV2NLtUnyLg

Agenda• Minimum Income• Wages Growth• Job Prospects• Middle Class• Private Sector –vs- Public sector• Issues

Minimum Income • Guaranteed minimum income (GMI) (also called minimum income) is

a system[1] of social welfare provision that guarantees that all citizens or families have an income sufficient to live on, provided they meet certain conditions. Eligibility is typically determined by citizenship, a means test, and either availability for the labour market or a willingness to perform community services. The primary goal of a guaranteed minimum income is to reduce poverty. If citizenship is the only requirement, the system turns into a universal basic income.

Type of Programs available• UCCB• Welfare• People will lose the incentive to leave welfare

• Guarantee Income Supplement

• Hikes to minimum wage (tied to inflation)• Will force up costs• Could result in lower hours and/or less job creation

How is guarantee income paid payout• The Fraser Institute released a report on guaranteed income in January

2015. Director of Fiscal Studies Charles Lammam said while the idea has merit, he’s skeptical it would work.• He said governments spent $185 billion on income support

programming in 2013 and changing the delivery of those services would require “a whole set of different pieces of the puzzle to fall into place.” • “This is measures targeted at all levels of government to people with

low income, the disabled, the elderly, parents with young children,” said Lammam. “If we’re talking about fundamentally reforming that $185 billion envelope, that’s a pretty big undertaking.”

World view

Middle ClassKey quotes/Globe and Mail

Income/Wages by Sector

Wages by Group

Jobs / Growth Areas / 2016

Canada Middle Class

Tax Cuts/Conservative Party of Canada

Private Sector –vs- Public Sector Wages

Government jobs

Issues Facing hiring• Private Sector • Capital Investment • Consumer demand/export demand• eCommerce

• Government Policies• Pension (ORPP)• Trade Agreement/FIPA• Carbon Taxation/Pricing• Consumer Spending • Corporate Taxation