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39% believe they're just paycheques from poverty
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CTV.ca News Staff
Date: Mon. Oct. 27 2008 11:56 AM ET
Nearly four in ten Canadians believe they're just one or two paycheques away from poverty, according to a poll conducted for the Canadian Centre for Policy Alternatives.
Pollster Environics surveyed 2,023 Canadians for the left-of-centre think tank. It found that Canadians are almost unanimous in their call for governments to protect their jobs.
"A shocking 96 per cent are saying 'Do something about investing in jobs and skills (and) training right now. Don't wait until there are better balanced budgets,'" CCPA senior economist Armine Yalnizyan told CTV's Canada AM on Monday.
The CCPA poll found that:
- 39 per cent of Canadians think they're just one or two paycheques from poverty
- 47 per cent struggle with personal debt regardless of income
- 44 per cent worry about having enough to retire comfortably
- 26 per cent say they are worse off than a decade ago
"The interesting thing about the poll is that Canadians looked beyond their own pocketbook issues and said ... that governments need to step up to the plate, too," Yalnizyan said.
She said Canadians look at Scandinavian and European countries' focus on poverty reduction and say, "Why can't we do that here?"
According to the survey:
- 90 per cent want the government to take leadership to reduce poverty
- 86 per cent believe concrete government action can greatly reduce poverty
- 81 per cent support reducing poverty by at least 25 per cent over the next five years
Yalnizyan noted that Canadians also appear to be increasingly concerned that their wages haven't kept up with the cost of living, with about one in four saying they are worse off than they were 10 years ago.
Wages not likely to increase soon
Conference Board of Canada's Prem Benimadhu says the current economic slowdown and what appears to be a looming recession will mean that wages are not likely to increase significantly in the near future.
"We have been talking to about 160 corporate leaders in just the last two weeks and we've seen a deceleration of wage increases all across Canada," Benimadhu said on Monday.
Benimadhu said he expects that unions, particularly in the manufacturing sector, are most concerned about job losses and preventing outsourcing. He said he doesn't expect union leaders to make wage hikes their top priority when they renegotiate contracts this year and next.
Benimadhu said that when the CBoC surveyed leaders in the manufacturing industry in July, they were forecasting wage increases of about 3.9 per cent.
"Today that figure has gone down to about to about three per cent, and in many sectors employees would be happy with a 2.5 per cent increase," he said.
U.S. lures Canadians
Meanwhile, a University of Guelph sociologist says a higher earning capacity in the U.S. is luring away some of Canada's brightest young university graduates.
David Walters and Statistics Canada's David Zarifa found that the earnings gap in Canada and the U.S. is most pronounced in fields such as engineering and computer science.
"Given such a large earnings gap, the recruitment strategies of some U.S. organizations and the boom in the information technology sector, it's not surprising that these degree-holders are leaving Canada in the greatest numbers," he said in a press release.
Their study, which is published in the latest issue of Canadian Public Policy, found that Canadians who went to the U.S. after graduation reported earning 24 per cent more than graduates who stayed home. The income disparity jumps even more for computer scientists and engineers, who earned nearly 50 per cent more than graduates who stayed in Canada.
Walters said that Canada will need to combat the disparity or lose some of its most vital professionals in the coming years. He says that could have long-term repercussions on the overall national economy.
"In this new age of technological innovation and knowledge-intensive labour, governments around the world have been pressured to tighten their grip on highly-skilled workers. The Canadian economy certainly needs these individuals in order to stay competitive in a global knowledge economy," Walters said.
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I applaud the budget, even though Health Care and education may stay unscathed. Sadly this cannot last and I worry to later this year where cuts will become enviable. If anything, this provides the Wildrose Alliance plenty of ammo when an election is called.


Comments are now closed for this story
pp
said
I see it all the time - people want want want want... big houses, big trucks, big vacations, big toys... Homes in the country, cottages.... on and on...
Paaa-lllleeeeeaaaaasssseee
Don't start with me. If you cannot afford to pay cash then you cannot afford it! I don't care if you make $50K /yr or $150K /yr - Save your money then buy. Keep loans to a minimum... Don't carry large debt loads. If you cannot pay it off at the end of the month then it's too big to carry.
The reason the global economy is in such a crunch right now is because people wanted BIGGER and BETTER.
Not everyone can have the 'American Dream'... It is just that a Dream. And eventually it becomes a Nightmare when people become over extended...
It is not your right to own a house, it is your right to have adequate housing. If that means renting an apartment then so be it. In reality ownership of land is a relatively new concept that has been created from capitalism. 100 yrs ago only the very wealthy and farmers owned their own houses / land...
And another thing - Govn't should not be bailing out companies; they are creating a false security - and it is not working anyways. The market should be left to crash and burn (as much as I dread saying this as I too would be affected), this way the weak will be weeded out and the stronger better corporations will thrive.
kate
said
I find that number hard to believe since the Conservatives keep winning elections. It's kind of like Canadians claiming they are environmentally concious yet they elect the party that cares the least for the environment.
I think what people really mean is: help the poor and clean up the environment as long as it doesn't come out of my pocket or threaten my lifestyle in way and force me to make any sacrifices for the good of my children's future.
NON UNION MANUFACTURER
said
In the end they want more and our property taxes will go up casue of it along with other rates. More people will have a hard time paying for this while those people with increases enjoy it.
THANKS!
Mark
said
This kind of thinking is blatant unionist, protectionist thinking-and is EXACTLY the kind of thing that accelerated the Great Depression.
Free market economies have always and always will-lead to growth. Better regulation in places like the US are a good idea to be sure (the 'right' to own a home-in itself a socialist agenda is what got the US into this mess in the first place)-but the LAST thing we need is big brother.
People-get an education, work hard, live within your means, don't blow it all trying to keep up with your neighbors. These are not rocket science concepts. The high school drop-out who goes to work 'at the plant' is powerless-except for his lowest common denominator-his/her union. It is this person that speaks when the Canadian Centre for Policy Alternatives makes such statements.
No thanks.
I want several short line-ups
said
Anna
said
every where you turn, there is another tax grab in effect or looming. whether it's called tax, a premium or a fee, it's all the same thing. While we do need to pay some taxes, certainly the government can do with less, as we all have to. The public should be allowed to vote on whether or not the government funds an initiative, rather than the government deciding for us how they are going to spend the money they take from us.
Kevin
said
So take this story with a grain of salt, it is just a spin story to try and make news where there isn't any.
Jack
said
They're nothing but a mouthpiece for unions and the extreme left, any "poll" released by them has no credibility.
Edb
said
Martin
said
1% of the world population owns 40% of the wealth. People aren't trying to "be like their neighbors"; people are trying to survive! the monetary system is the problem can it be fixed? short term answer: not really, only replaced which would mean... can you guess? another deeper depression.
I hope other Canadians are aware that many people worldwide survive off 2$ a day or less.
some good docs on this topic
: WHO killed Canada
: Zeitgeist Addendum
both available legal and free
on google video
JA
said
Don't start with me. If you cannot afford to pay cash then you cannot afford it! I don't care if you make $50K /yr or $150K /yr - Save your money then buy. Keep loans to a minimum... Don't carry large debt loads. If you cannot pay it off at the end of the month then it's too big to carry.
I agree with you about not spending more than your means but I don't make $50K /yr and neither do most of people.
Eric
said
Do you what happens when you win the rat race? Nothing, your still a rat....
Quotes that my grandfather used to tell me. An Italian immigrant who came to Canada with nothing, and lived his life happy, and rich.
It's time Canadians wake up. Take care of your families, enjoy time with your friends, instead of being a slave to all your mortgages, car loans, and unnecessary toys. Look at the first part of the word MORTGAGE. It's MORT, meaning death.
roy cotton
said
zwinky
said
We need to be careful of our decaying attitudes and dwindling compassion since in some countries "do something about the poor" means death squads or imprisonment.
As far as spending goes, I don't agree that everyone regardless of income can wait to pay cash for everything.
Some people use their Visa card to afford food and other necessities and I don't mean for the reward points.
People often use credit to bridge shortfalls in income with the hope that things will improve and they can remain independent from assistance. Sometimes it works, but unfortunately it is often a spiral to worse problems.
Things cost too much now for lower incomes to spend cash only and some would literally have nothing.
On the flip side, too many people believe 2 big new vehicles and a large house are important and will do anything to have these things.
pp
said
If you cannot afford it don't buy it. If you do and then complain it was 'too expensive' spare me...
I make a great salary but know at any time I could be out on my arse - I rent and save for a rainy day... I want to retire at 60 with NO debt.
Live within your means... stop wanting the unattainable... stop whining.
JPFL in BC
said
$10,000 , $20,000 , $30,000
for a single person - age not factor.
ClassAction
said
Mike
said
John E.
said
Tim in Calgary
said
Unfortunately, not one of the questions even broached the topic of how to fund such altruism. Had one of the questions been "Would you vote for a political party that planned to increase taxes by 25% in order to reduce poverty by 25%?", how many Canadians would have still said yes?
gimmie a break
said
there's people whove worked a life time of paying taxes to be told today to forget your dream of retiring.
Live within your means??? imagine all the living one could do on the prospect of keeping all thier earnings. poverty isnt the tax payers fault nor should they have to accept the "means" left over from helping out banks.
Jerry O'Connor
said
Yet, the politicians are the ones to abuse and manipulate their powers and authority (once in office) to serve themselves first and those that elected them to office....second.
There are just way too many examples of abuses of power by elected politicians to even bother going into but excessive and sheer greedy pay increases, (untouchable by others)and out of touch severance packages is just 2 or 3 examples of the many pork barrelling excesses. We the struggling working poor of Canada can only dream of such excesses whereas all these things are a reality for elected politicians.
So if politicians are able and do abuse their powers of authority unchallenged towards looking after themselves.... then why can't the average poor working Canadian expect the same from that "pork barrell"?!
Politicians do not lead by example, for if they did, they would also be feeling the desperations of just plain trying to stay above water when it comes to the expectations of the basics of life.
My elected MLA in Calgary reminded me this week (after daring to speak out against him on the excesses of spending) how my glass was perceived as being "half empty...rather half full! Even if such empty minded statements meant anything to me........I would have to remind that politician that in all probability...his glass is half empty with fine wine...whereas mine is half empty with nothing but tap water.
Politicians have become disconnected, distanced, out of touch and way too arrogant when speaking of such matters. Politicians have joined the ranks of the "elite" here in Canada and their incomes prove it to be so when compared to what "was" and what is "now" for the "advantaged" in society verses the "disadvantaged" in society.
Mannie
said
Lu
said
Made in Canada PLEASE
said
Eric
said
If you can't afford a non-subsidized house, what are you doing with a 42' flatscreen tv? Or a pile of video games as tall as I am? 2 kids with a Nintendo DS each? Poor financial management time and time again.
I only work there part-time to pay for school, I'm not the owner, so frankly I feel obligated to say that while not EVERYONE is responsible for their own situations, its my experience that some people -are-. Don't get high speed cable internet bundled with your extended digital cable package then complain to me about how you don't have enough left over for food.
islander
said
My basic phone is now about $30/mth incl taxes. My wages certainly aren't $60/hr (5 times increase)
Our overhead has increased a lot but our service levels have remained stagnant or declined. My college education now costs over 10 times what it did then. Wages haven't kept pace.
Paul B
said
I'm always one check away from living on the streets and my income is not going toward extravagant things, just the necessities of life,(medications, rent, special diet. etc.)
When are those, including me, going to be given wage increases to be brought up to current living conditions or at the very least, not made to pay taxes on disability income?
That's the biggest obstacle for Disabled Persons, the paying and withholding of taxes...keeping us in perpetual poverty.
Yes...you able bodied persons have it sooooooo hard!
Frank Buchan (Vauxhall, Alberta by way of Ontario)
said
I think what the "don't spend" folks are missing is what is obvious to anyone who has worked for themselves (and is true for all minimum wage earners); you can't save against a cyclic drain. Even if you earn decent wages, the problem is easily illustrated. In the last three years I have had to move nearer my primary work (expensive), we had a child (a lovely but expensive surpise), and recently we had a medical experience in our household (there is nothing like that to blow away savings). Transfer those same situations to a minimum wage earner and they are better off on welfare, because at least in the last case they won't have to foot the bill for presecription medecine solo. The tax credits there offset none of the immediate expense.
Having said that, the problem is that as a society we created inequalities of opportunity. I see this every year I do well, especially after a few rough years where my earnings decline, because our tax system is regressive in the middle income ranges where you simply haven't enough cash to take advantage of some tax tricks. What happens is that what you borrowed during the rough patch prevents you saving when you are flush, because any extra earnings are so severely degraded by taxes.
Saving isn't simple when your discretionary income is spoken for by the very act of raising it.
Meredith Horton
said
PullingMyOwnWeight
said
Hayton
said
And the first poster in this article has it right on - the pain go through the system, not bailing out homeowners. People clearly need to live within their means.
Carry your own weight
said
Well said, now if only people would take heed...or more importantly had acted more responsibly in the first place.
The government is us, the POEPLE and I DO NOT want MY MONEY used to bail out neither individuals nor corporations who cannot manage their finances.
Live within your means...do without a beer or a cup of coffee...stop wasting at every turn
No More Visa for Me!!!!
said
FYI readers; an associate of mine recently started work in her profession. As a student doing her undergraduate studies in Pennsylvania she had a Visa with a $10,000 limit! Did I mention she only worked seasonally? Her Canadian Visa limit is way less than half of that, and she is working! Go figure...
t
said
Anthony from NS
said
Basicaly if people spent there money THE RIGHT WAY and not went into mundo overkill buying stuff all the time they can't afford, then poverty would be avoided.
I mean look at me: 1 credit card, 1 line of credit, and a savings account, plus 9k$ plus of student debt (i am a student btw if u havent caught on). Despite having a small part time job making 100$ - 150$ every two weeks, i am in the best financial shape of my life. Why? Because i know how to manage my money wisely. No chance of me hitting the poverty line anytime soon.
Problems are the overzealous spenders who think "oh i got to have this", or "man i'm gonna buy that just cuz i can". Think smart: want or need? if it is a need, then get it but it must be something that serves a purpose. Buying a 60in LCD TV is not a need it's a want.
Good thing me mum raised me right on how to manage my money.
Alex (Toronto)
said
It's disheartening to see the lack of compassion and empathy some people display. Not everyone is in a position to take their current job for granted.
Gerry
said
Steve in Fredericton
said
BTW, I'm a university-educated man earning a very stable income as an Army officer. I'd count myself as one of those who are concerned about their retirement savings and I also have to closely manage my income so as not to fall into financial trouble. I'd say I'm about 3 paychecks away from distress. Again, not necessary.
Karen J. Cao
said
1 in 3 Torontonians lives in poverty, while our GDP is bigger than 29 states - something is wrong
if you're spending 50% or more of your income on rent, then you're at risk of homelessness...
DJD
said
Edmonton John
said
The vast majority of people have been at most two paychecks away from poverty for as long as I've been drawing paychecks. That was not news in the eary eighties.
What is new is that people nowadays are starting to realize it. What they have to do now is remember it.
One of the Few, the Proud
said
Ian in Guelph
said
Anyone out there currently re-training has my sympathies for their economic hardships. Those who have been living outside their means for years get no sympathy from me whatsoever.
DJR
said
Most families are over spending on electronics. The electronics are killing our budgets. Once they change, advertising makes it seem like it’s no longer hip or cool to own the product your currently happy with. You’re at the store before you know it buying the latest and greatest. This simple problem, in the majority of house holds is what’s getting you.
Why spend money on electronics when you can put it down on your mortgage. You are not rich until the mortgage is paid off. Any dept you currently have needs attention. The longer you wait to pay that off, the more you will fork out in the long run. Electronics depreciate a lot faster then cars and houses do. Your never going to retire if you have a basement full of old toys when the money could have been put into your bank account. Money in your bank account makes you money. The more money you have the more money you get. Electronics don’t make interest.
MuskyBuck
said
You're way off base about your percpection of CCPA.
If you were to familiarize yourself with their recent report on the Harper governments last minority rule performance you would find they have cited Harper for:
"return to the mother ship-the mother ship of high taxes, big government, Big brother, ZERO entrepeneurism, ZERO risk-and also ZERO growth"
Just to set the record straight.
How much longer must taxpayer support banks
said
Gaëts Gravelle
said
Joe
said
JSG
said
Richard
said
L in Peterborough
said
P.A.
said
Doug BC
said
As to "kate's" comment aboout poverty,it should be pointed out that the political left likes to fight poverty by mailing ot cheques paid for by confiscating the earnings of other people.The political right believes any fight against poverty must be a business environment that provides access to decent jobs.
I WAS a Liberal for almost 50 years.But I've come to realize that far to many people would rather live off my pay cheque,than work for one of their own.As long as Liberals continue to offer socialism as an option,I will continue to vote for Conservatives.
Our exports pay for our social programs.And as long as we have the highest costs for labour,for taxes,and for energy,our manufacturers will continue to exit Canada and take jobs with them.
Like those people near poverty because of debt,our country has to address that very same issue.If,or when the Liberals recognize that reality,I will consider them when I go to vote.
Neither nations,nor people should spend more than they earn.Surely this global economic meltdown adds weight to that point of view.
Digging yourself out from under a mountain of debt can be a daunting task.But you can not succeed or move forward unless you take that big,and often painful step first.
Socialists have a litany of noble ideas about spending money.What they lack is any sense of how to generate wealth.I deplore their notion that my earnings are "public funds".
Jonny of the RCR
said
big picture
said
Our resource manufacturing is much more productive (grain, oil, and logging). So just because you don't see a pair of domestic running shoes, built with the same quality as a domestic car in this country doesn't mean we aren't involved in other areas of export.
Anne Ottawa
said
I agree with whomever said we have become too much of a keeping up with the Jones's society. I still do not have a widescreen TV, still have my Sony 27", though I am starting to shop around for a widescreen and will make sure I dont over buy and can pay for what I get when I get it. the only debt I am comfortable with is my mortgage but too many people are spending and putting it on their line of credit. that is disastrous in my opinion. live like there is a depression folks and you cant go wrong.
Brenda
said
Mario
said
Gail in NS
said
You are so right. It is all our own fault that those of us living paycheque to paycheque are making foolish choices such as buying groceries for 3 kids on credit cards. A needless expenditure for sure, but if I don't send a lunch to school with my 7-yr old then the teacher will buy it for her in the cafeteria and send me the bill. Also the fact that I was so stupid as to charge $800 last week to fill my oil tank so my family would have heat for the next few months. I must be brain dead not to have saved that up ahead of time, but I'm still trying to pay off the bills from what I used last winter and the $60 per week fill-up of my gas tank so I can get to and from work. I'd be looking forward to retirement if not for the fact I had to cash in my RRSPs to repair the house we live in. By the way, I've checked into selling the house and renting, but my mortgage payment is actually substantially cheaper than rent on an apartment.
Luxuries? New electronics? I'll bet there are some in your house, but there aren't in mine. I don't even have cable.
Did I ask for your help? No, I did not. I'm too busy trying to cram my last year of university (full-time) while working 60 hour weeks and raising three kids by myself. Just because some government paid think-tank released a study does not give you the right to pass such self-righteous judgement on people who don't have the luxury of saving money. Who do you think you are?
pp
said
This is exactly why one should SAVE SAVE SAVE SAVE...
It is those unfortunate circumstances that leap upon us that we least expect that we need to prepare for.
Instead of going out and buying 'what ever' I put that $100, $40, $30 into the bank - If I don't really need it I don't get it. I would love to go on a trip and could very easily do so - I make the money, I can put it on my line of credit. But I don't need that trip - what if I lost my job? what if I had an accident ? what if, what if, what if...
This is why I save. I don't want to be beholden to no one if I don't have to be.
Your are making ends meet and that is what people should be doing. You should be commended for your hard work and dedication to your husband and children.
doing my best while not publically employed
said