'Affordability gap' keeps poor from taking part in the community: Report
By Norma Greenaway
Canwest News Service/Vancouver Sun
September 25, 2009

One in five of Canada's households is so strapped for money they are often unable to participate meaningfully in the community around them, according to a think-tank.

The study concluded those low-income households lack money for everything from sports, movies and other recreational activities to eyeglasses, dental care and high-speed Internet.

"We live in one of the most affluent nations on the planet, but Canada's poorest households are struggling to buy basic goods and services that most Canadians would consider reasonable for normal living in the 21st century," said Steve Kerstetter, the report's author.

The study, released Thursday by the Canadian Centre for Policy Alternatives, used Statistics Canada figures from 2007 to explore spending patterns of Canadian households.

Titled The Affordability Gap, the study said the poorest 20 per cent of households spent an average of $22,339 while the richest fifth spent an average of $143,361.

Between 1999 and 2007, spending by the poorest households increased by 6.1 per cent, compared with 13 per cent for the richest.

"The poorest 20 per cent of Canadian households live in worlds far removed from the richest 20 per cent," said Kerstetter, a research associate with the centre.

"In every spending category, the richest 20 per cent spent six or seven times more than the poorest 20 per cent."….

The study argued, however, that spending constraints on Canada's poorest households mean many people lack the money needed to "to participate in a meaningful way in the society around them."

For that to happen, Kerstetter said, they need to have money left over after paying for the basics -- food, shelter and transportation.

The study called on governments at all levels to tackle the problem by substantially boosting welfare and minimum wage rates and enhancing income support programs, as well as such things as job-retraining programs.

COMPARISONS

Lack of money cuts out many activities for poor

- Thirty-four per cent of low-income households had high-speed Internet access, compared to 89 per cent of high-income households…..

- Spending on transportation was more than 15 times higher in high-income households than low-income ones, $17,366 compared to $1,074.

- Spending on recreation was three times higher in wealthy households than poor ones, $8,449 versus $2,680….