Poverty

Is Poverty Really a Problem?

Canada is a prosperous, affluent country with a consistent record of promoting human rights and individual well-being. In the Human Development Report 2000, published by the United Nations, Canada ranks number-one in the world in human development.

And yet, there are people who seem to be struggling to get by. It’s hard to say how many without entering into a debate about absolute poverty (inability to afford basic needs) or relative poverty (measures of social inclusion and inequality). Depending on the method used, poverty in Canada ranges from 4.9% (The Fraser Institute, 2004 ) to 10.8% (Statistics Canada, Low Income Cut-off, 2005).

That’s at least 1.6 million people in Canada who cannot afford the most basic requirements of life!

Fortunately, Canada has a highly developed social welfare system including free health care,
unemployment insurance, income assistance and affordable housing programs.

Unfortunately, our programs and supports may not be as effective as we believe. In 2008, someone
working full-time at minimum wage would earn $1425/month before deductions. Social Assistance rates in Nova Scotia for a single parent and 2 children = $1,100 (N.S. Community Services website – basic assistance rates). The average rent for a 2-bedroom apartment is $833/month (Canada Mortgage & Housing, Fall 2008). A reasonable nutritious grocery budget for a parent and 2 children would be around $478/month (2007 Food Costing Report). Do the math:

A single parent with 2 children working minimum wage would have less than $100 for all other expenses

A single parent on Income Assistance would already have a deficit of over $200!

Sure, you can find cheaper rent, although that may mean substandard living conditions or unsafe neighborhoods.  You can save a lot on groceries or use a food bank, but probably not without compromising nutrition.  There are other supports, like the child tax credit, Pharmacare, and charity. People are resilient; they find strategies to get by.

But there are other costs.  Countless studies show that children who grow up in poverty are likely to score lower on almost every measure of well-being that we can think of. They are more likely to have poorer health outcomes, lower grades, higher drop out rates, family breakdown, violence, crime, etc. These costs do not show up in the family's budget, and are not measured in dollars.  These are costs that we incur as a society, and it will cost more every year it is ignored.

Is poverty really a problem?  Not for most of us, not according to the statistics, and not if you are in the comfortable majority.  But for at least 1.6 million Canadians, it is a grinding hopeless despair.  For the rest of us, it is a mounting social debt to be paid for in growing crime prevention and health care costs. And for all of us, blessed to be living in one of the most affluent nations on earth, it is a shameful injustice.