http://www.thestar.ca

In rich Canada, welfare worsens
Recipients get less than 20 years ago
Public is turning a blind eye to issue
Aug. 25, 2006.
THOMAS WALKOM
NATIONAL AFFAIRS COLUMNIST
Toronto Star

Here in Canada, in one of the richest countries of the world, the very
poorest are getting poorer. This is not the result of some external or
unforeseen crisis. It is happening in the midst of a long-running economic
boom and reflects the deliberate decisions of elected governments —
presumably supported by the Canadian public at large — to purge the roughly
1.7 million people consigned to welfare from our collective consciousness.

It is shameful. It is pretty much criminal. And, as the National Council on
Welfare, an advisory body to the federal government, warned in a report
released yesterday, it is remarkably short-sighted. In particular, it is
short-sighted for those of us in the broader middle classes who assume —
wrongly — that we could never end up on the dole.

It's a cruel world out there now. Successive governments have gutted or
eliminated much of Canada's vaunted social safety net. For most workers,
employment insurance doesn't exist. Increasingly, employers prefer
part-time or contract workers who can be fired at will and who are owed
neither benefits nor pensions.

If the economy falters and unemployment spikes — as it is almost sure to do
again — there is not much between a comfortable middle-class life and
welfare.

So just hope it doesn't happen to you. As the council points out, for the
vast majority of those on welfare, things are bad and getting worse.

The figures are depressing and distressing. In Ontario, for example, the
incomes of most welfare recipients, after adjustment for inflation, are
lower now than they were 20 years ago.

And that's not just because of Mike Harris. True, the former Conservative
premier gleefully slashed welfare rates. But his successor, Liberal Dalton
McGuinty, has been equally, if more quietly, stingy.

In 1997, well after Harris made his cuts, a single mother with one child in
Ontario received $16,205. Last year, a single mother's benefit, after
adjustment for inflation, was just $14,451 — or about 11 per cent less.

It's probably worth noting that Newfoundland has a more generous welfare
system than Ontario. A single mother with one child in that province gets
$16,181.

But Ontario is not the only piker. In Conservative Alberta, rates for a
single person on welfare have dropped by $4,800 — or roughly 50 per cent in
inflation-adjusted terms — over the past 20 years. In British Columbia, now
run by a nominally Liberal government, welfare recipients with disabilities
get less in real terms than they did in 1989.

Even Saskatchewan's New Democrats have been cheese parers when it comes to
welfare. In that province, the inflation-adjusted welfare income for a
couple with two kids is $4,125 less than it was in 1986.

On top of this, the federal government's much-heralded child benefit
supplement, introduced by Jean Chrétien's Liberals in 1998, has done almost
zilch for people on welfare.

That's partly because five provinces, including Ontario, claw all or part
of the benefit back from families receiving social assistance.

And it's partly because the country's complicated welfare system is almost
impossible to figure out for would-be beneficiaries — or anyone else. It
has become, as the council says flatly, "incomprehensible to most people."

As for Prime Minister Stephen Harper's Conservatives, the council says
their reforms don't help the poor much at all.

No surprise here. Still it's worth noting, as the council does, that
Harper's income-tax cuts benefit high-income earners most. His GST cut
doesn't help the poor, who already had a sales-tax break. His new $100 a
month child-care benefit, the council says, may help more well-to-do
parents who already have access to daycare but does little for people on
welfare who can neither find nor afford care.

The net result is bleak: In spite of the myriad of government programs, the
income of welfare recipients remains far below Statistics Canada's
so-called low-income cutoff, a measure usually referred to as the poverty
line.

In Ontario, a disabled person on welfare gets $12,057 — or about 58 per
cent of what StatsCan figures the average single person needs to live.
Other kinds of welfare recipients get even less.

It is a grim business.

Still, it's not fair to blame just elected leaders like Harper, Harris or
McGuinty. True, politicians didn't keep their bold promises to eliminate
child poverty.

True too, many politicians either ignore welfare recipients or subtly (not
so subtly in the case of Harris) demonize them as undeserving.

But in the end, politicians can't help but respond to the issues voters
care about. And that stark political fact says something very unpleasant
about us.

"Most Canadians would find it impossible to cope with the substantial
income losses that welfare households have experienced," the council
writes. "Coping is even harder for those who are already at the bottom of
the income scale, given their already meagre incomes. Yet there appears to
be little concern ...

"Have both governments and the Canadian public turned their backs on the
poorest of the poor?"
Additional articles by Thomas Walkom

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