A recent critique of Canada’s safety net for low-income families suggests that many of the programs perpetuate dependency and fail to help people take the necessary steps to lift themselves out of poverty. Mr. Sarlo, the author of the commentary, emphasized the critical role of employment in ensuring long-term well-being for the poor. He stressed that instead of simply finding ways to move people out of poverty, the real solution lies in helping individuals become self-sustaining.
The commentary takes a closer look at Canada’s Old Age Security (OAS) program, affordable housing, and social assistance programs. It highlights the fact that most OAS funds are channeled towards seniors who are not low-income. While the Guaranteed Income Supplement (GIS) does target those in need, it only represents 24 percent of the OAS program. Additionally, the government of Newfoundland and Labrador recently introduced a basic income program for residents aged 60 to 64 as part of its plan to alleviate poverty.
Affordable housing has become a major challenge for governments at all levels. The Canadian Mortgage and Housing Corporation estimates that Canada needs to build 5.8 million homes to restore affordability. However, the criticism suggests that the government’s efforts to provide affordable housing could potentially exacerbate the issue.
When it comes to social assistance or welfare, the structure of the support system may discourage recipients from seeking employment. This financial dependency is seen as a critical problem that not only hinders individuals from becoming self-reliant but also damages their sense of self-worth and contribution to society. The report notes that the social housing system does little to transition recipients into employment and market housing, thus providing little incentive for self-reliance.