As we move into the ‘mid-twenties’, I believe the public and perhaps the media will begin to tire of the ever-increasing enormity of the problems of food insecurity and deeply affordable housing for low-income people.
Climate change, affordable transit and digital resources suffer from the same ‘enormity’ problem yet a significant swath of public opinion now favours axing carbon taxes and almost everyone thinks the affordable housing problem applies equally to everyone.
The myth of OW as a work disincentive
We need to pay attention and be more precise. We also have to think about the work disincentive effect that many believe accompanies more adequate income security.
In response to the Premier Ford’s infamous comments at the Empire Club – Premier Ford delivers remarks in Toronto | June 19 – I think we can begin to talk about a ‘social minimum’ that people need for us to even think about sustaining themselves in employment. A housing list from the Scarborough Legal Clinic shows the lowest rent for shared accommodation in Scarborough is $650 a month.
People do understand that if you spend $650 a month on rent and your maximum Ontario Works (OW) allowance is $733 a month, you simply can’t afford the basics of food, clothing, personal care, a smart phone and transit. Without connectivity or transit, you can neither hear nor read about work nor can you travel to work even when you manage to secure it.
Given that Premier Ford does not understand this, it’s likely that others don’t either.
I think we can start thinking and talking about the minimum resources needed to actually accept employment.
Talking about raising social assistance rates is a difficult sell and although it’s the right thing to do, we have not painted the picture brightly or clearly enough to show what a social minimum would do in terms of keeping people housed and fed, let alone work-ready.
We need to stop talking about poverty lines because they are just too distant and too few agree with raising welfare rates to any poverty line even when they may agree with implementing a basic income. We need to do something different.
Let’s look at inflation
The PC government spent eight years in power from 1995 to 2003 and cut Ontario Works rates by 21.6% and did not increase either OW or ODSP during their entire tenure in power. Between Mr. Harris and Mr. Eves, inflation from 1995 to 2003 rose 17.2%.
Doug Ford took power in 2018 and inflation from 2018 to 2023 has been 18%. This means that inflation over two PC tenures since Bill Davis and Frank Miller has risen 35.2% with no increases to Ontario Works and a total of just 12% for ODSP.
I used to be fond of saying that the only living PC Premier to raise OW rates was Bill Davis 38 years ago in 1985 (by 6% for history buffs) but now there is now no living PC Premier who has raised OW rates. The cumulative effect of multi-decade inaction – whether on housing or climate change – is now coming home to roost.
Although the public understand climate and housing arguments, they are yet to really understand poverty. But they may understand it in terms of multi-decade inaction.
Mike Harris lowered OW rates to $520 a month in October 1995 – a 21.6% drop – but even if rates had been raised with inflation from that multi decade low, they would now stand at $940 a month – literally $207 higher than $733.
In other words, even if you agreed with what Harris did in 1995, for the equivalent rate today, you would need a 28% increase in rates to match it.
Whatever you might think about OW and welfare, $200 bucks below the Harris rates is an eye-opener.
Js-December 9, 2023