May 6th, 2024

Focusing on income not enough; we can do better

By Letter to the Editor on September 29, 2018.

Poverty is complex, poverty is complicated, and poverty is real. To address the root causes of poverty, our response must by robust and considerate of many factors. Thrive South Eastern Alberta does not simply oppose minimum wage increases, but it is critical that this is not a solution on its own to combat poverty.

According to Statistics Canada’s Hourly Minimum Wages in Canada for Adult Workers, the minimum wage rates for Alberta have been $10.20 (2014), $11.20 (2015), $12.20 (2016), and $13.60 (2017). Meanwhile, the low-income measure (after tax) shows the percentage of the population in Alberta at low income at 6.9 per cent (2014), 6.9 per cent (2015) and 8.1 per cent (2016). These minimum wage increases have not been met with decreases in poverty.

Furthermore, according to Food Banks Canada, the usage of food banks in Alberta increased by 1.2 per cent (2014), 1.6 per cent (2015) and 1.9 per cent (2016). This indicates that while the poverty rates of Albertans have stayed the same or increased, the demand for food banks has also increased.

It follows that minimum wage increases alone represent a short-sighted Band-Aid solution that will not have long lasting impact of poverty. It creates artificial financial inflation as business and employers, both large and small, are required to make their adjustments to compensate for the increased costs. These costs are then passed on the end consumer leaving minimum wage earners with little change in their overall standard of living.

Community members, government, business, non-profit and faith sectors are all directly impacted by poverty and share responsibility for addressing it. Thrive South Eastern Alberta’s Council of Champions looks to provide a community call to action for real, positive changes.

We can do better. Thrive South Eastern Alberta advocates for long-term solutions that better address poverty than minimum wage alone, such as coordinated, effective and efficient community support systems in the areas of food security, mental health, education, transportation and housing. All these factors must be addressed to end poverty and improve both the standard of living and quality of life for all.

Karen Danielson

Medicine Hat

(The writer is executive director of Thrive South Eastern Alberta.)

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