Home » OAFB in the News » OAFB in the News 2009

Investing in poorest Ontarians packs greatest economic punch

Recession could push Ontario's poverty rate up by 4% in 2010 if the provincial government does not make key investments in this month's stimulus budget, says a report released by the Ontario Association of Food Banks.

Fighting Poverty: The Best Way to Beat the Recession proves that the province must make strategic investments in social infrastructure, such as affordable housing and income supports, for the poorest Ontarians in order to stimulate the economy and contain poverty rates.

"The government wants to reduce child poverty by 25% in the next five years, but without immediate investments in this month's budget, poverty rates will be forced upwards and pulling Ontario out of recession will get tougher," says Adam Spence, executive director of the Ontario Association of Food Banks.

Highlights of the report's findings include:

* Unless we act, poverty will rise dramatically. Ontario's after-tax poverty rate could grow to 13.6% in 2010 from 10.3% in 2006 -- plunging an additional 474,368 Ontarians below the poverty line during the recession.

* The projected growth in poverty could be stopped in its tracks with strategic investments this year in affordable Ontario's child benefit level and bolstering income

* Government investments in the poorest Ontarians would pack a greater punch than broad-based measures aimed at middle-and high-income Ontarians because lowincome households spend and they spend locally.

"If we want to stimulate the economy we need to direct investments to people who are going to buy Canadian and maintain jobs," says Spence. "Give it to consumers who need the money now. It's the best bang for our buck. It's also a poverty fighter."

Strategic investments in this month's budget do triple duty: they stimulate the economy, protect Ontarians from the worst of the recession, and lift more households out of poverty to ensure a strong economic recovery over the long term.

The report calls on the provincial government to immediately implement poverty and recession fighting recommendations including:

* increasing income supports for lowincome households via such measures as the full acceleration of the Ontario Child Benefit (OCB);

* loosening restrictions on social assistance such as raising asset limits for recipients;

* investing in infrastructure through the construction and repair of social housing; and

* supporting skills training, early learning and child care.

"Ignoring poverty costs Ontario over $30 billion every year and creates a lifetime of social deficits that weaken our economy and our communities over time," Spence says. "We have a choice: fight poverty now so we have all hands on deck to rebuild Ontario post-recession or continue to ignore poverty while it deepens and grows."

A copy of the report can be found at www.oafb.ca .

Northumberland Today
Editorial
Tuesday, March 17, 2009 

Our Supporters