By: Niveja Assalaarachchi, News Writer

There are many instances where older generations would tell younger people to stop buying lattes and avocado toast. Maybe you haven’t heard this exact version but I can guarantee many young people have heard something along those lines from older generations. The fact of the matter is we can’t just work our way out of this economic stagnation. People are struggling financially and should be directly helped by the government — most notably, younger people seem to bear the brunt of this economic destitution. 

According to Daily Hive, 85% of Canadians have reported they live “paycheque to paycheque.” This would mean that, for most Canadians, one emergency could lead them to be in a vulnerable living situation. In BC, this is especially apparent. According to the CBC, 46% of British Columbians are only $200 away from failing to pay their bills on time. Consequently, many Canadians have taken to borrowing to make ends meet, leading to a household debit being 174% of total disposable household income in this country.

Two thirds of Canadians believe the current rate of inflation is the worst they have ever seen. One might wonder what kinds of effects this can have for ordinary people. The truth is that the current cost of living crisis is not only pushing many Canadians to the brink of mental and financial crisis, it is paralyzing their futures, and as a result, endangering our collective future choices.

Personally, I have also been affected by the rising cost of living. Living in one of the most expensive regions in the world and being a first-generation immigrant, I’ve seen many members of my family work tirelessly and still be worried about what’s left in the bank account. This seems to be a universal story where people are working as hard as they can to get nothing materialized from it. Why is this the case?

The truth is that this situation is not our fault. It is a consequence of a system that has prioritized the ultra-wealthy and left ordinary people in the dark. Starting in the 1980s, the rise of neoliberalism occurred. A major tenant of this ideology is trickle-down economics, which is predicated on the idea of giving tax relief to society’s most wealthy — supposedly to kickstart economic development. In this country, the top rate of income tax, which was 80%, was cut down to 50%. What followed wasn’t an economic renaissance for the country, but a massive wealth transfer from the poorest to the rich. Many social services, like subsidized social housing, were slashed by successive governments in the 1980s and 1990s. Not only was this an example of a service people depended on, it was also a representation that many things that were once deemed quintessential to middle-class living soon became nothing but a dream.

The current economic condition has robbed many of the future that they thought they had. So many people thought that if they went to university, and got a degree they would be able to secure a bright future, but this is not the reality.

The question emerges on how to tackle this issue head on. Universal basic income is a form of regular financial assistance directly from a government to every person in a given area. Basic income has been supported by the Canadian Medical Association for over 10 years, and, more specifically, universal basic income is supported by the Canadian Mental Health Association. A 2017 study found that participants who received basic income generally experienced improved health. Simply put, a universal basic income would help all of us live better lives, while decreasing the pressure on our society.  

The consistent nature of the financial aid would help families currently struggling through the cost of living, and has already been proposed via a petition in the House of Commons. Some might argue that a version of universal basic income existed in Canada before. The Canada Family Allowance was first introduced in the late 1940s to help stir up post-war economic development. The program helped thousands of Canadians families until the 1990s when the government of Brian Mulroney scrapped the plan in favour of a watered down version, the Canada Child Benefit.  

The only way we can see a future where people are on the brink of financial disaster every month is to have a stronger social safety net that can help struggling Canadians be better able to tackle issues.

Just think of how nice it would be to not continuously check the balance of your bank account. Perhaps this could be a moment where we can push for universal basic income, allowing all people a guaranteed way to afford living. We must ensure the ultra wealthy are held accountable to pay a higher rate of tax, thus reducing the burden on lower-income people.

Through taking these steps, we can make sure we can have a future accessible to everyone. A future where people do not have to worry but be hopeful for the future.