With the CERB ending soon here in Canada along with a lot of industries still forced to shut down there is a lot of panic as to how people will survive without getting their $2000 a month payment that they have been used to for half year. This has generated topics where the government is apparently trying to introduce a universal basic income system where people will literally get a certain amount of money each month while still being able to work at a job.
For example, let’s just pretend a single person would qualify to get $15,000 a year. If you didn’t do anything you have about $1250 each month to survive. In my opinion that is doable depending on your area and that you don’t dine out frequently or splurge on fancy items. At the same time, you could still work whatever job it may be and still get that amount. You could work minimum wage job earning say about $25,000 and adding this would mean pre-tax you would have $40,000 a year.
The other points I have heard is how this will be good for the economy as people will now have money to spend that helps to keep everything going. The downside people would say is it can make people lazy or just give people more money who do not need it. I think for me in terms of concern would be the foundation still holds true where someone with horrible financial management skills will probably end up the same as before.
For example, the guy with $20,000 worth of credit card debt and doesn’t take it seriously will likely just use the $15,000 to keep over spending where the balance will always be at that figure. But for the most part I would think a lot of people would use it in a great way and it affords them to be able to explore and do things that they really want as a career. Especially those who already have a strong foundation of responsible spending.
I think for myself I would probably be more inclined to invest in tools and resources that will definitely help to make me more productive which in turn will enable me to earn more while helping more people. Would you think this would be a good thing?