Conference by Jean-Michel Cousineau (École de relations industrielles de l'Université de Montréal)
The first part of this conference addressed the theoretical and practical concepts of the Guaranteed Minimum Income (GMI) and highlight the implications of public policies to provide better income support and ease the transition towards the eradication of poverty.
The speaker then discussed the various designations of the GMI and its main three forms: basic income support (welfare), negative income tax and universal basic income. He will briefly present and analyze each of the three forms according to their nature, operating method and advantages and disadvantages, most particularly the Québec example for the first case (welfare).
The speaker also addressed the question of work incentive and solutions to poverty. Further to a simulation exercise developed from extensive Québec taxpayers microeconomics files, it appears that the GMI formula, in its purest and universal form, is inapplicable while the American negative income tax forms (Employment Income Tax Credit) or, better yet, the Canadian one (work premium) appear to be more affordable and effective. Despite this, there are still a number of hurdles to overcome and work to be done to better understand the effects, improve the formula and ease the eradication of poverty.