The Cost of Poverty an Analysis of the Economic Cost of Poverty in Ontario

Although it is offi cially a publication of the Ontario Association of Food Banks (OAFB), the Cost of Poverty report is the result of six months of collaborative work with a dedicated group of researchers, advisors, supporters, and funders. Thank you to Nate Laurie, as the writing for the paper went above and beyond the originally stated task. PROJECT ADVISORS & REVIEWERS Thank you to all of the Project Advisors & Reviewers who generously contributed their time and expertise on a pro-bono basis. PROJECT FUNDERS Thank you to the Atkinson Charitable Foundation for their generous fi nancial contribution towards the statistical analysis and writing of this paper. Thank you also to the George Ce-dric Metcalf Charitable Foundation for their generous contribution towards the statistical analysis included in the paper. Poverty disproportionately affects certain populations, and has a complex mix of institutional and individual causes. of poverty for Ontarians with disabilities, Ontario's children, Aboriginal Ontarians, single parents and new Canadians are much greater than the provincial average. For example, in 2001, 35.8 per cent of new Canadians lived below the low-income cutoff (LICO), compared to the Canadian average of 15.6 per cent. • Poverty has a complex mix of institutional and individual causes. Poverty has no single cause. It results from a mix of institutional impediments including our system of social assistance, skills and credential recognition, and cultural barriers as well as individual gaps such as lower skills, education or literacy. • There is a relationship between poverty and poor health outcomes, lower productivity , lower educational attainment, and children's future income. Analysis of microdata from the National Population Health Survey found that 73 per cent of Canadians with the highest incomes reported their health as excellent, while only 47 per cent of Canadians with the lowest incomes rated their health as high. • Poverty has a signifi cant cost for governments. signifi cant cost for governments. signifi cant cost f The federal and Ontario government are losing at least $10.4 billion to $13.1 billion a year due to poverty, a loss equal to between 10.8 to 16.6 per cent of the provincial budget. • Poverty has a cost for every household in Ontario. In real terms, poverty costs every household in the province from $2,299 to $2,895 every year. • Poverty has a very signifi cant total economic cost in Ontario. When both private and public (or social) costs are …