Canada to give 4,000 low-income citizens free money until 2020

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Canada is planning on giving 4,000 people a regular monthly allowance as part of new program to reduce poverty in Ontario.

As part of the trial, Ontario Basic Income Pilot, 4,000 people will receive additional income based on their salaries. The money can be used to cover basic living expenses including transportation and clothing.

The system is meant to meet people’s basic needs and boost economic growth. In theory the system can fuel education and entrepreneurship opportunities.

Premier Kathleen Wynne on Monday outlined the details of the trial that is expected to begin before summer, and last until 2020.

Eligible recipients will be randomly selected, but must be of low income. He or she must be between 18 and 64 years old and can receive up to $16,989 a year. With any additional income earned, 50 percent will be subtracted from that figure. As Business Insider explains: “a person who makes $10,000 a year at their job, for example, would receive $11,989 in basic income, for a total income of $21,989.”

According to Wynne, the money should mean to the recipients that “Ontario is with you.”

The trial will begin in the regions of Hamilton including Brantford and the County of Brant, and Thunder Bill. The program will launch in a third region, Lindsay, in the fall.

The idea of providing funds to low-income people has been gaining momentum as Finland, the Netherlands, and even San Francisco have shown interest in a similar program.

H/T Business Insider

Nidia Cavazos

Nidia Cavazos

Nidia Cavazos is a multimedia journalist with an emphasis on political reporting. She's contributed to Univision, KXAN, and USA Today College, and she was named one of six NBC Fellows by the National Association of Hispanic Journalists in 2017.