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Throughout the research article there will be topics discussing what Causes Poverty, the effect poverty has on Canada’s youth poverty, the Connection between demographics and poverty in Canada, Poverty’s effect on the economy, and a Solution to Poverty in Canada. Poverty is a major problem in Canada and it has many negative ramifications on for Canadian society. It can be seen in many different stages of life, from seniors to children across Canada. It is an economic burden to the country of Canada and to its citizens. In the research article there will be a focus on Canada’s largest demographic group of peoples in percentage of population in poverty and why that may be. Overall, the research article will provide the insight on vital knowledge on the basics of the effects of poverty in Canada. IntroductionAbout nine percent of Canadians are currently  living in poverty, although the percentage is generally higher among certain demographics of groups such as single mothers and Aboriginal people. Low-income Canadians include the “working poor”which would be described as those with jobs, and the “welfare poor” which are those relying mainly on government assistance. Although Canada has no official poverty measure, Statistics Canada produces three main measures of low income: the Low Income Cut-Off (LICO). Low income cut-offs (LICOs) are established using data from the Survey of Household Spending. The threshold is defined as the income below which a family is likely to spend 20 percent more of its income on food, shelter and clothing than the average family. The first step in the production of a set of low income cut-offs is to calculate the average proportion of income that a family spends on food, shelter and clothing. on average, families spend 43% of their after-tax income on these necessities. Therefore those spending 63 percent or higher are considered in poverty. The Low Income Measure (LIM). LIM is the most commonly used low income measure. The LIM is a fixed percentage (50%) of median adjusted household income, where “adjusted” indicates that household needs are taken into account. And the Market Basket Measure(MBM). MBM of low income is the approach to cost out a basket of necessary goods and services including food, shelter, clothing and transportation, and a multiplier to cover other essentials. The results define thresholds that represent levels of income needed to cover the cost of the basket. The income concept that is used for comparisons with the MBM thresholds goes even further than after-tax income by also subtracting from total income other non-discretionary expenses such as support payments, work-related child care costs and employee contributions to pension plans and to Employment Insurance. Poverty costs Canada as a whole between $72 billion and $84 billion annually People living with disabilities both mental and physical are twice as likely to live below the poverty line. Nearly 15% of people with disabilities live in poverty. Estimates place the number of homeless individuals living with a disability or mental illness as high as 45% of the overall homeless population. 21% of single mothers in Canada raise their children while living in poverty. Women parenting on their own enter shelters at twice the rate of two-parent families. Indigenous Peoples are overrepresented among the homeless population in virtually all urban centres in Canada. 28%-34% of shelter users are Indigenous. Nearly 2 million seniors receive the Guaranteed Income Supplement, and live on about $17,000 per year when the most basic standard of living in Canada is calculated at $18,000 per year for a single person.What Causes Poverty Some factors that cause poverty include: generational poverty and situational poverty. Causes that fall under the category of situational poverty include: the economy, mental health challenges and addictions, disabilities, family separations, and job instability. The two most common cases in Canada are generational poverty and situational poverty. Generational poverty is the most common in Canada. It is a situation where a family has lived in poverty for at least two generations. It is an ongoing cycle which goes from one generation to the next, unless something is drastically changed. Families living in generational poverty will have an understanding of hidden rules for their class. Attitude is the main factor in being able to distinguish whether someone is from generational or situational poverty. If the individual or family feels that society owes them a living, they are considered to be in generational poverty.Situational poverty is a period where an individual falls below the poverty line because of a sudden event. Situational poverty can be caused by a range of factors, such as: a divorce, death of the family head, illness, a natural disaster or loss of job. Poverty affecting Canada’s Youth There were 4.8 million Canadians living in a low?income household in 2015, of whom 1.2 million were children. That is nearly 1 in every four Canadians living in a low income household being someone under 18 years old. A few reasons for youth poverty in Canada include: Homelessness, mental health and addictions, lack of education. It is generally accepted that the rate of child poverty is affected by a combination of labour market trends, changes in government transfers, and demographic factors.In the early 1990s there was a period of economic recession. At that time federal and provincial governments cut budgets in order to fight deficits. Big changes were made to the regulations and eligibility criteria of major social support programs, such as Employment Insurance and social assistance programs. Child poverty rose during this period. Demographic factors also affect the level of child poverty. For example, lone-parent families are more likely than other families to live in poverty. While the poverty rate among lone-parent families has decreased over the past two decades, there has been a rise in the number of such families. Poverty affects children in several ways. Some children are deprived of the necessities of life, living in substandard housing and going hungry. Children experience relative deprivation. It has been seen that poor children are less likely to take part in recreational activities, which have been demonstrated to be an important contributor to healthy development. The effects of poverty on the family also include indirect impacts. Parents’ mental health has a significant effect on the well-being of children, and children in poverty are more likely to live with a parent who shows signs of depression. Children who experience poverty, especially persistently, are at higher risk of suffering health problems, developmental delays, and behaviour disorders. They tend to attain lower levels of education and are more likely to live in poverty as adults.  The graph above shows where Canada sits in comparison to 17 other peer countries on an international scale for child poverty rates. Connection Between DemographicsHalf of status First Nations children in Canada live in poverty. A 50 percent poverty rate is unlike any other poverty rate for any other group in the countryThe study released by the Canadian Centre for Policy Alternatives and Save the Children Canada found that the poverty rate of status First Nations children living on reserves was triple that of non-indigenous children.In Manitoba and Saskatchewan, 62 and 64 percent of status First Nations children were living below the poverty line, compared with 15 and 16 per cent among non-indigenous children in the provinces.Poverty rates among status First Nations children are consistently higher across the country.The study is based on the 2006 census, the most recent data to provide a detailed portrait of poverty among all Canadians, until more of the 2011 census is released. The report notes that on-reserve First Nations children who are under federal jurisdiction fare far worse compared with indigenous children Persistent disadvantages faced by Canada’s aboriginal peoples in regard to education, employment, health and housing are well-documented, but the report suggests that the staggering poverty faced by indigenous children is preventable.Seniors’ poverty is also among major concern. Rates are especially high among single senior women who live alone, aboriginal seniors, immigrant seniors, seniors with disabilities, and gay and lesbian seniors. According to a report by the National Seniors Strategy for Canada, there are over 600,000 seniors living in poverty.  Already, 1 in 3 single senior women, and 1 in 4 single senior men are living in poverty.Seniors who do not have employer pensions, or have not had the opportunity to contribute to C/QPP, rely on benefits provided by OAS and GIS to meet their daily needs. More often the seniors relying on these programs are women. 21% of single mothers in Canada live in poverty. Women spend more time than men doing unpaid work, for example childcare. The lack of affordable childcare in Canada also forces mothers to limit their career and education opportunities. In order to balance their work and home responsibilities, many women have no choice but to choose employment that is precarious: positions that are part-time, seasonal, or operate on a contractual basis. The gender wage gap is another factor that contributes to increased rates of poverty among women rather than men. Jobs traditionally occupied by women pay less than jobs traditionally occupied by men.Investing in the lives of women is tantamount to investing in the lives of children. Children growing up in poverty are far more likely to experience food insecurity, have poor health outcomes, and have trouble succeeding in school. Over the long-term, it’s clear that investing in women means investing in the lives of childrenThe picture above shows the comparison between indigenous children and non indigenous children throughout the provinces.Poverty’s Effect on the EconomyPoverty is one of the biggest burdens on the economic, healthcare, and criminal justice systems in Canada. In 2011, the federal government spent $19.9 billion on Employment Insurance benefits alone. The same year, almost $4 billion was transferred to low-income families from the federal government.The most information available regarding the cost of poverty is province-to-province. A report from Ontario states that poverty costs the government between $10.4 billion and $13.1 billion a year. Nova Scotia recently declared that poverty costs the province $2.4 billion per year. Saskatchewan pays up to $3.8 billion per year on poverty as a whole. In British Columbia, the government spends between $8.1 and $9.2 billion on poverty.The World Health Organization declared poverty to be the single largest determinant of health. Poverty leads to illness. Poverty causes serious health problems for those individuals living in poverty. Living in poverty can double or triple the chances of developing diabetes and complications such as blindness and cardiovascular disease,  but it also causes financial problems for the healthcare system itself. Estimates place the cost of poverty on the Canadian health care system to be $7.6 billion. Provinces are spending up to half of their budgets on healthcare costs. For example, British Columbia has included $3 billion in its new budget to reduce healthcare costs over the next three years.The healthcare system is not the only way that poverty costs those living in Canada. There is an increase in social assistance spending. Estimates place the monetary value at $720 million per year at the provincial level. At the federal level, $11.2 billion was spent on the Canada Social Transfer. In 2011, almost $4 billion was transferred to low-income families from the federal government. That same year, the Canada Mortgage and Housing Corporation alone cost $3 billion in tax dollars.Another spending avenue is the criminal justice system. There is a direct link between poverty and high rates of incarceration, which costs the government and taxpayers a significant amount of money per year. For example, Saskatchewan is thought to spend between $50 and $120 million per year on the criminal justice system. A Solution to Poverty in Canada There’s no single, easy solution. But there are plenty of good ideas, ones that deserve debate and consideration, that could bolster the Canadian dream: that everyone, regardless of where they start, has equal access to opportunity and can aspire for a better life.For Canada, a reasonable place to start is to have better data pinpointing what the trends are in the first place. The latest statistics on wealth inequality – showing the richest 20 percent of families control 70 per cent of the country’s wealth – comes from 2005, well before the recession. Taxfiler data is three years old. And the richest source of who’s poor, who’s rich and the gap between –the mandatory long-form census – has been cancelled. The new national household survey is a poor replacement. Wiser decisions could be made with better and more timely data.The Globe compiled a list of dozen ideas from experts across the country, from hiking minimum wage (a move recently endorsed by the Ontario Chamber of Commerce) to bolstering affordable, high-quality early childhood education (see this newspaper’s Daycare Project). Other options included studying Sweden’s tax structure, bolstering labour standards and introducing guaranteed incomes for Canadians below the poverty line

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