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Find one positive or one normative statement. Explain how you know they are either a positive or normative statement.

Find one positive or one normative statement. Explain how you know they are either a positive or normative statement.

Microeconomics: Principles & Policy
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter17: Taxation And Resource Allocation
Section: Chapter Questions
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Find one positive or one normative statement. Explain how you know they
are either a positive or normative statement.

"I think we can all agree it would be a fantastic thing to give lower-income individuals more money," Moffatt said. "(But) it would either come from reduced spending elsewhere, or taxes would have to increase, and that's ultimately the problem." In the case of the Ontario pilot, residents receiving social assistance support were required to withdraw from the Ontario Disability Support Program (ODSP) or Ontario Works to participate. Moffatt cited similar problems in Alaska, home to a national dividend fund called the Permanent Fund Dividend through which annual payments to eligible citizens are dependent on surplus oil and gas revenues. There has been pressure over the years, as oil revenues drop, to cut education and social programs to maintain the dividend cheques. Ultimately, Moffatt said, a UBI program would take many years to implement in Canada and before any movement can be made, details would have to be fleshed out with regards to the source of the funds, eligibility criteria and how to ensure the program is accessible to the country's most vulnerable, including the homeless population, of which the vast majority does not file tax returns. "That's another issue," Moffatt said. "Just because people are eligible for this money, it doesn't mean that they actually have the means to collect it."
Transcribed Image Text:"I think we can all agree it would be a fantastic thing to give lower-income individuals more money," Moffatt said. "(But) it would either come from reduced spending elsewhere, or taxes would have to increase, and that's ultimately the problem." In the case of the Ontario pilot, residents receiving social assistance support were required to withdraw from the Ontario Disability Support Program (ODSP) or Ontario Works to participate. Moffatt cited similar problems in Alaska, home to a national dividend fund called the Permanent Fund Dividend through which annual payments to eligible citizens are dependent on surplus oil and gas revenues. There has been pressure over the years, as oil revenues drop, to cut education and social programs to maintain the dividend cheques. Ultimately, Moffatt said, a UBI program would take many years to implement in Canada and before any movement can be made, details would have to be fleshed out with regards to the source of the funds, eligibility criteria and how to ensure the program is accessible to the country's most vulnerable, including the homeless population, of which the vast majority does not file tax returns. "That's another issue," Moffatt said. "Just because people are eligible for this money, it doesn't mean that they actually have the means to collect it."
But what exactly is UBI and what could that mean for Canada? Mike Moffatt, a Canadian economist and assistant professor at Ivey Business School, said while there are a number of different models, UBI, at its heart, is a program to give cash to families or individuals in need. "The idea is that when a person files a tax return for a given year, (they) would get some payments in the following year scaled toward (their) income," Moffatt said. "We already have a lot of programs that do that, but the idea behind universal basic income is it would dramatically increase the size of those payments .. in the hopes of lifting people out of poverty." This is not a new concept for Canada, which has a number of similar initiatives such as the Canada child benefit, old age security, GST rebates and more, Moffatt noted. As well, under the Wynne government, Ontario had previously implemented a basic income pilot project , which ran from 2017 to 2019. Moffatt said one of the main issues with the pilot, and a primary question the government would need to consider prior to implementing a UBI model, is: where will the money come from?
Transcribed Image Text:But what exactly is UBI and what could that mean for Canada? Mike Moffatt, a Canadian economist and assistant professor at Ivey Business School, said while there are a number of different models, UBI, at its heart, is a program to give cash to families or individuals in need. "The idea is that when a person files a tax return for a given year, (they) would get some payments in the following year scaled toward (their) income," Moffatt said. "We already have a lot of programs that do that, but the idea behind universal basic income is it would dramatically increase the size of those payments .. in the hopes of lifting people out of poverty." This is not a new concept for Canada, which has a number of similar initiatives such as the Canada child benefit, old age security, GST rebates and more, Moffatt noted. As well, under the Wynne government, Ontario had previously implemented a basic income pilot project , which ran from 2017 to 2019. Moffatt said one of the main issues with the pilot, and a primary question the government would need to consider prior to implementing a UBI model, is: where will the money come from?
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