Chapter 6 Flashcards

1
Q

The Persistence of Poverty

A
  • UNDP defines human poverty as “denial of choices and opportunities for living a tolerable life”
  • World Bank defines income poverty as living on less than $1 per day
  • Multidimensional Poverty Index (MPI) identifies 3 major dimensions: living standards, education and health
  • Using this measure 1.7 billion people (1/3 of total population) in 109 countries live in poverty
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2
Q

Measuring Poverty

A
  • Absolute poverty measure an essential basket of goods and services deemed necessary for physical survival
  • Relative poverty is based on how low one’s income is relative to other Canadians
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3
Q

Low Income Cut-Offs (LICOs)

A

-Canada is one of only a few countries without a poverty line
-Statscan sets LICOs based on relative and absolute measures and is referred to as “straitened circumstances” or “relative necessities”
-The LICO changes based on region and household size
A family is considered “low-income” when it falls below the cut-off for it’s size and region

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4
Q

Other Measures (LICO)

A

-Market Basket Measure (MBM)
Absolute measure based on the cost of purchasing a set basket of goods
-Low Income Measure (LIM)
Used for international comparisons of child poverty
Relative low-income as one-half median adjusted income of country

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5
Q

Social Exclusion

A
  • Alternate way of conceptualizing poverty related to marginalization
  • Having limited opportunities or abilities to participate in the social, economic, and cultural activities of society
  • Poverty is not just a low degree of well-being, but the inability to pursue well-being due to lack of opportunities
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6
Q

Myths About The Poor

A
  • Poverty is the failure of the individual
  • Welfare recipients are able-bodied men who are simply lazy
  • The poor do not want to work
  • Poor people do not pay taxes
  • Welfare system is rife with cheating and fraud
  • We cannot afford the social programs needed to eliminate poverty
  • All children in Canada are assured a decent start in life
  • Welfare rates are too generous
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7
Q

Explanations of Poverty

A
  • Human Capital Perspective
  • Market Economy Perspective
  • Political Economy Perspective
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8
Q

Human Capital Perspective (explanations of poverty)

A
  • Poverty is related to characteristics of individuals (education, age, health, mobility)
  • Income-leisure choice theory (people will choose between paid employment and unpaid leisure)
  • Income distribution based on supply and demand: workers receive what they contribute
  • Emphasis on education and job training to break poverty cycle
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9
Q

Market Economy Perspective (explanation of poverty)

A

-Emphasis on broader economy and society
-Market conditions are critical (supply & demand)
-Markets can be limited by non-economic factors such as:
Socialization: people may be conditioned to believe certtain things about themselves and their position in society
Discrimination: Negative stereotypes, racial discrimination, and employment barriers may limit employment oppurtunities
- explanation of low incomes= Growth of secondary labour

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10
Q

Political Economy Perspective (explanation of poverty)

A
  • focuses on a relationship between politics and economics
  • Concentrated ownership affects government policy
  • Capital owners control wages and employment
  • Stratification in the market helps employers keep wages down based on gender, age, race, or sexual orientation
  • discrimination on ethnicity= effects immigrants and people with color
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11
Q

How Much Poverty?

A
  • Poverty Headcount: how many people are poor
  • Poverty Gap: how far they fall below poverty line
  • Poverty Duration: how long are they poor
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12
Q

Poverty Headcount

A
  • Based on 2010 LICOs 9% of total Canadian population lives in poverty
  • This excludes people living on reserves, Territorial residents & people living in institutional homes
  • BC has highest rate of poverty (11.5%) and PEI has lowest (3.9
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13
Q

Depth of Poverty

A
  • Total shortfall from the poverty line
  • Poverty gap: is measurement of how much additional income is required to be above poverty line
  • Lone parent families living at 85% of LICO; couples with 2 children living at 67% of LICO
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14
Q

Poverty Duration

A
  • Vulnerable groups face higher risk of long-term poverty= people with disabilities, lone parents, recent immigrantrs, Aboriginal people
  • 17% of Canadians experienced poverty for one or more years over period 2005-2010
  • People had greater difficulties exiting poverty since the economic crisis (great recession) of 2008
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15
Q

Inequality and Poverty

A
  • Poverty refers to a benchmark standard
  • Inequality refers to differences between groups
  • total income is divided between households is a measure of inequality = also known as income distribution
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16
Q

Quintile Income Distribution

A
  • Quintile represents one fifth of the total number of people being studied
  • Top quintile is the 20% of population with highest incomes; bottom quintile is 20% of population with lowest income
  • In Canada, in 2010, the top quintile had an average income 9.3 times that bottom 20%.
17
Q

Gini Coefficient

A
  • Measures the degree of inequality in income distribution
  • Values range from 0 to 1 (0 means income is equally divided; 1 means perfectly unequal distribution)
  • Income inequality is higher in Canada than 11 similar countries; although more equal than the US
  • Income inequality has risen in Canada over last 20 years
18
Q

Social Assistance: Minimum Income Program

A
  • Has roots in early charity relief and English poor laws
  • Bare minimum funds for people with no employment or other income
  • Based on needs test
  • Each province and territory designs and administers own program
19
Q

Social Assistance Eligibility

A
  • Age (18–65)
  • In most provinces, students are ineligible
  • Parents must try to secure support payments
  • People with disabilities require medical certification
  • Striking workers usually ineligible
  • Family class immigrants are usually ineligible
20
Q

Social Assistance Eligibility

A
  • Financial Eligibility: test compares household’s assets with its needs
  • Administrative Eligibility: application, evidence of eligibility, meet with worker etc.
  • Categorical Eligibility: different reasons to request assistance
21
Q

Social Assistance Effectiveness

A
  • Measure of effectiveness is comparison of welfare amounts and after-tax LICO levels
  • Based on 2010 data, when adjusted for inflation, welfare incomes consistently below adequacy levels
  • The most vulnerable group depending on welfare income is single unattached individuals
22
Q

The working poor

A
  • A working poor person is an individual whose family income is below poverty threshold
  • > Paid work itself is not a guarantee of an adequate family income
  • > Many of the poor are employed, but job opportunities do not provide sufficient income for family well-being or survival
  • > Working poor are younger, more likely to be immigrants, single (or sole family earner) with low educational levels
23
Q

Homelessness

A

-Homelessness is on the rise as a result of increasing poverty rates
->Absolute Homelessness:
No housing at all or in shelters
->Relative Homelessness:
Situation where housing does not meet the UN’s basic standards
-Homeless seen on street are chronically homeless—less than 20% of all homeless people

  • Reasons for homelessness include economic crisis, mental health problems, violence or abuse in home, substance abuse problems or lack of supportive network
  • > Hidden homeless include:
  • families living in shelters
  • Families living in sub-standard shelter
  • A ‘Housing First’ strategy has recommended more low-cost affordable housing
24
Q

Food insecurity

A
  • More Canadians relying on food banks and feeding programs
  • In 2012, 1900 food programs service almost 900,000 people
  • Over 38% are under age of 18
  • Food banks typically volunteer run, and run in conjunction with emergency shelters
  • Decrease in social safety net has put food security in jeopardy
25
Q

welfare reform

A

-Workfare
Requirement to work as term of eligibility for social assistance
-Spouse-in-the-house rule
Ineligible for welfare if there is evidence of a person of the opposite sex in the house
-Welfare fraud
A more coercive and disciplinary approach being used towards welfare recipients

26
Q

Workfare

A
  • Refusal to participate in work programs results in penalties
  • Drawn sharp criticism from advocacy groups as it is shown to be ineffective, expensive and related to antiquated poor laws
  • Formal workfare: community placement, employment placement
  • De facto workfare: strict enforcement of job-search and training requirements
27
Q

Spouse-in-the-house

A
  • Member of opposite sex staying in house considered unacceptable
  • Federal definition of spouse challenged under Charter in 1987
  • Ontario’s definition of spouse implied economic interdependence began with co-habitation
  • This policy deemed unconstitutional in 2002
  • Women’s groups argue against any law that requires women to be economically tied to men