Quote:
Originally Posted by YOWetal
The idea doubling or more benefits to the poorest families hasn't reduced absolute poverty because prices of especially suburban houses have gone up is a strange claim. Most poor families have not seen their housing costs explode and overall inflation has trailed benefit and wage increaeses with minimum wage increasing more than all but the highest wage earners over the past few years.
If familes getting $10 or 15k a year in tax free federal benefits want to vote for cuts to "out of control government spending" with the idea that will lower inflation...well they deserve what they get. Like a turkey voting for Christmas.
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People living in poverty are more likely to be young and have unstable housing. They don't have the advantage of grandfathered in rents via rent control apartments. They are also more likely to live in cheaper areas, which have actually seen the greatest increases in rent over the last few years.
The market based rent for a 1 Br apartment in Canada has gone up $400 since 2019. That eats up a bulk of the benefit. In some markets its even worse, where just about the entirety goes to rent now. London Ontario has gone up from
$947 in 2019 to
$1780 in 2024. The numbers would almost certainly be worse if we compare going back to 2015, but I don't have that data on me.
Comparing income growth by percentages between high and low income owners makes little sense, since nothing we buy is pro rated to our income.
Income growth for the lowest quintile has only gone up by about $3000 since 2015 and $6000 since 2006, and this includes those federal benefits. While these are real dollars and the rents are not, quick math shows that the gains are not even enough to keep up the the increased cost of housing.