Chapter 2 Flashcards
Wealth vs Income
Income is economic gain from wages, income transfers (eg. From government) or ownership.
Distribution of income in Canada has been quite stable since at least the 1970s until the mid 1990s when inequality increased
Wealth is the value of all economic assets, including income and savings.
Measuring Poverty
1) Relative poverty
2) Absolute Poverty
Relative Poverty
LICOs (Low Income Cut Offs) = a “poverty line” drawn for households that on average spend 6% of their after tax on food, clothing, and shelter
Figures vary for size of households and communities
It s relative because the calculation and expenditure for the general population
Absolute Poverty
Market Basket Measure based on an essential basket of goods and services deemed necessary for physical survival
Eg food, clothing, personal care items, rent including utilities, transportation
May include food bank use, charity, used products and only remedial (vs preventative) health care
Absolute vs Relative Poverty
Absolute Poverty measure - asks what level of income is requires to enable people to afford the basic necessities of life?
Relative Approach asks: What level of income is required to maintain anc acceptable standard of living relative to the average of society
A social problem (by definition and impact)? Political implications (budget, social services)
Comparing Canada to the World
Social spending has stayed relatively the same from 2007 - 2016 in Canada.
Canada also falls below OECD 2016
Comparing Canada to the third world
Gini coefficient of 0=complete equality
1= complete inequality
Canada sits at .30 behind Korea
Absolute Poverty
A condition that exists when people do have the means to secure the most basic necessities of life (food, costing and shelter)
Relative Poverty
A condition that exists when people can afford the basic necessities such as food, clothing, and shelter but cannot maintain an average standard of living in comparison to that of other members of their society or group.
Populations of low and middle class nations
The population is set to increase in these nations by 60%, versus 11% in high income nations.
This is despite the disparity in life chances
“New International Labour” perspective - the answer is in the global organization of manufacturing production.
Social Stratification
Hierarchical arrangement of large social groups on the basis of their control over resources
Social Classes
Karl Marx - divides capitalist society into two groups (bourgeoisie capitalist class, proletariat,working class)
Economic factors were important in determining social location
Weber - multidimensional model of wealth, power and prestige
Weber - social Class
Was interested in peoples life chances - the extent to which individuals have access to important societal resources such as food, clothing, eduction, and health care. Multidimensional model of class position
Wealth
Is the value of all economic assets including income and savings personal property and income producing property minus ones liabilities or debts
Income
Refers to the economic gain derived from wages salaries and income transfers (governmental aid such as income assistance welfare or ownership of property.
Canada has higher income inequality than Europe and lower than the US
Power
Is the ability of people to achieve their goals despite opposition from others
Prestige
The respect,esteem, or regard accorded to an individual or group by others
Wright - says neither Marx nor Weber defines classes in modern capitalist society more explains economic disparity 4 criteria for placement in the class structure:
4 criteria:
1) Ownership of the means of production
2) purchase of the labour of others
3) control of the labour of others
4) sale of one’s own labour
social stratification
hierarchical arrangement of large social groups on the basis of their control over basic resources
widening ga in wealth linked to global stratification
Wealth and Income Inequality
correlate with life chances
If there was no inequality in income in Canada, each 5th of the population would receive 20 percent of the available income
from 1976 each income quintile remains stable until the mid 1990s
Canada’s Lower Class
20% of the population and comprises the working poor and the chronically poor
Measuring Poverty: Low Income Measure(LIM)
is half of the median family income. those below that level have a low-inomce. The LIM is adjusted for family size.
Measuring Poverty: Low Income Cut Off (LIC)
the income level below which a family would devote 50+% of their income on food clothing and shelter - this is adjusted for family and community size and before or after taxes.
Market Basket Measure (MBM)
the income a family would need to be able to purchase a basket of goods that includes food, shelter, transportation and other basic needs.
Canada High Income Nation
one in which a high proportion of people live in poverty has made it a target of international criticism
Poverty: Age, family structure, sex, Immigration and Indigenous Status
children are much more likely to be poor than seniors
18-64 - greater risk of having low income(10.1%)
people under 18 years (8.2%)
female lone parent home (21.8)
single males (11.5)
Health and Nutrition
Canadian Association of food Banks -within a domestic context food insecurity and hunger are consequences of extreme poverty
Consequences of Poverty: Statistics as Predictors
being poor not only means economic insecurity, it also wreaks havoc on one’s mental and physical health
Health and Nutrition
Good nutrition is important in health
emergency food assistance is pronounced in urban areas
greater need recently in rural areas
First Food Bank
First food bank opened its doors in Edmonton in 1981
Food Bank Use
50% of households were recipients of social assistance 43% were single person households 25% were lone parent families 16% living on disability related income 11% self identify as First Nations 11% of people are immigrants
Food banks
only provide food for 4-5 days
when people rely on food banks over a long period the consequences are detrimental and severe
Homeless Statistics
1.3 million Canadians have experienced homelessness or extremely insecure housing
200,000 Canadians experience homelessness in a year
30,000 people are homeless in a given night
Homeless Statistics
8.2% experience moderate or severe food insecurity
4000 to 8000 people are chronically homeless
50 days is the median length of stay in a shelter
single males, youth and indigenous people are overrepresented
How Canada Deals with Poverty?
structural poverty is dealt with as if it is an individual problem
eliminating poverty or dealing with poverty is dealt with temporary assistance
temporary assistance is received through charity
State of Emergency Declaration
It is a National Non Strategy
UN and the federal government began taking steps to look at the problem of poverty - 1990-200s
federal, provincial and municipal - cost sharing expenses for infrastructure spending
no funding was spent on housing rather sewers and water supply
Employment Insurance (EI)
37% of applicants meet the criteria compared to 74% a decade prior
waiting periods have lengthened
EI has run a surplus to pay off the deficit
individuals who receive income assistance have to pay it back when they receive EI
used to be up to 75% of income earning, but now 55%
Welfare State
Nation in which the government intervenes in the welfare of its citizens through various social policies, programs, standards and regulations
Canadian Assistance Plan (CAP)
The welfare state smoothes the economic inequality and placates and social implications of such inequality (Teeple)
The purpose of the plan was to outline the ways that the federal government could cost share
Canadian Assistance Plan Criterion
Based on the idea that all Canadians had certain basic humans rights.
1) the right to income assistance when in need
2) the right to an amount of income that meets the basic requirements
3) the right to appeal decisions
4) the right to not have to work or train in order to receive income assistance 5) the right to collect assistance regardless of jurisdiction
Neoliberalism in Canada
1970s capitalism shifted from a national to an international economic system - capitalism became global
Capitalism could easily move capitalism from nation to nation
International capitalism put pressure on governments to enact policies reducing government intervention.
1990s- healthcare was seen as too expensive
CHST
Bill C-76 signalled the end of the CAP
1996 CAP was replaced with Canada Health and Social Transfer (CHST) - these transfers account for 19% of provincial revenues
Part of a broader re-entrenchment of decreasing its responsibilities for the welfare of its citizens
Canadian Welfare State Distinctive Features:
Sylvia Morel (2002) - one of the distinctive features of Canadian reform policy is the classification of social assistance recipients according to fitness to work. CHST - ended participation in the U.N. Covenant of Social, Economic, and Cultural Rights which Canada signed in 1976
Workfare
Used to describe a particular direction taken by governments as they reform social assistance with a particular focus on the shift from income assistance based on need to some type of mandatory employment activity in exchange for benefit.
Based on two groups of people: the deserving poor, and the undeserving
George Orwell - 1984
Created in order to shape and direct citizen’s understanding of social political life in particular ways