S P R I N G 2 0 1 2

(1) What is Poverty? (2) Why Does Poverty Exist?

(3) WhoisAffectedbyPoverty?

(4) HowisPovertyReduced?

poverty incalgary –AFourPartSeries

Thisisthefirstbookletinaseriesthataims to provide a glimpse into thecomplexities around what povertyis,why itexists,who itaffects,andhow it can be reduced. This serieswas researched and authoredcollaboratively by United Way ofCalgaryandArea,TheCityofCalgary,and Vibrant Communities Calgary.

FrontCover,InsideFrontCover,andBackCoverPhotoCredit:MingEmmaKo

1 in 10 Calgarians

livein povertyNearly

400,000 Albertans

livein poverty

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what ispovertyanumber?aface?lackofincome?beinghungry?lackofopportunity?goingwithout?alivedexperience?

1 in 10 Calgarians

livein povertyNearly

400,000 Albertans

livein poverty

The numbers alone give us little understandingof what poverty really is. What does it look likeandwhat does it reallymean for peoplewho arestrugglingwithit?

“Emptiness, destitute, hopelessness, helplessness, sadness, darkness, lost, noidentity,noself-esteem,coldness,ashamed,novoice,nofamily,nograndchildren,nosmiles,noprivacy,nolaughter,nohappiness–thisiswhatlivinginpovertymeans.”

– PovertyTALKS! Member

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poverty is...

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INCOMEINEQUALITYINALBERTAANDCANADA3

poverty is...complex

Asshowninthegraphbelow,wealsoknowthatincomeinequality,whichreflectsthegapbetweenthosewiththehighestincomesandthosewiththelowest,isgrowinginAlberta.Infact,inequalityinAlbertaishigherthanithasbeenatanypointinthelast20years.Notonlydoesincomeinequalityfurtherentrenchpovertyandaddtoitscomplexity,italsonegativelyaffectsallincomelevels.Inotherwords,weallsufferwhenhighincomeinequalityexists.2

Povertyisaboutmorethanscarceincomeandfinancialinsecurity.Povertyisaphysical,socialandemotionalexperience.Itistiedtoalackofopportunitiesandchoices.Weknowthatindividualsneedmorethanjusttheirbasicneedstosurviveandthriveinourcity.Theyneedtobeabletohandleunexpectedexpenses,toachievetheirgoals,andtomeaningfullycontributetoallaspectsofourcommunity.

Inthisvein,thisseriesdefinespovertyinCalgaryasalackofresourcesandfewopportunitiestoachieveastandardoflivingthatallowsfullparticipationintheeconomic,social,culturalandpoliticalspheresofsociety.

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AlbertaCanada

20092008200720062005200420032002200120001999

higherinequality

lowerinequality

Despitelivinginawealthycountry,province,andcity,povertyremainsarealityfortoomanyCalgarians.Povertyrateshavebecomeentrenchedoverthepastdecade,remainingsteadythroughoutAlberta’seconomicboomsandbusts.Childpovertyrateshaveactuallyincreased,risingby40%between2008and2009.1

“Povertyhas5senses…Iseeit,Ifeelit,Ismellit,Ihearit,Itasteit.Theonlysensepovertydoesn’thaveiscommonsense.”

– United Way Discussion Group Participant, 2011

poverty is...

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HOUSEHOLDSPENDINGASPERCENTAGEOFAVERAGEHOUSEHOLD5 ByIncomeQuintile,Alberta,2009

60%

80%

100%

120%

140%

Total First Second Third Fourth Fifth

90% 122% 101% 94% 92% 81%

poverty is...a reality in calgary Poverty is a reality for 1 in 10 Calgarians. Rates of poverty

havepersistedinCalgarythroughtheboomsandbustsofthelast severaldecades.This troubling trendwill likely continuegiventhathousingcostsinAlbertaareincreasingatmorethan4timestherateofincomes.4Onaverage,Albertanswiththelowest incomes spend 22% more than their income; thosewith the second lowest incomes are, on average, breakingeven,whichmeansmanyaregettingby,butcertainlyhavenocushionforunexpectedcosts(seegraphbelow).Ifapersonalfinancialcrisishits,manywouldfallintopoverty.

fastFACTS1 in 5Calgariansareconcerned about not having enoughmoney for food.6

1 in 3Calgariansareconcerned about not having enoughmoney for housing.6

1 in 2Calgariansareconcerned about not saving for the future.6

“Itdoesn’ttakeanythingmorethanalostjoborincreaseininterestrates,orasicknesswherethegovernmentdoesn’tcoverthecostsofthedrugs,orevenabadchoiceortwomadeinthecourseoftheirdaytodaylife…once[you]reallyunderstandthatwhat [you] think of as the dregs of societyarepeoplejustlike[you]butindifferentfinancialcircumstances–thenandonlythenwilltherebearealwilltomakethedifferenceweneedtosee.”

– PovertyTALKS! Member

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poverty is...

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poverty is...a lack of choices

Livinginpovertymeansmakingdifficultchoiceseverydaybetweenfood, transportation, housing costs, childcare, and other basicnecessities.Italsomeansnotbeingabletosaveforthefuture.Thedailychallengesfacedbysomeonelivinginpovertyastheytrytosurvivecanleadtorisky,potentiallydangerousworkingconditions,relationships,ordebtlevels.

fastFACTApproximately 35,000 Calgary families face difficulty in affording the cost of adequatehousing. Over the past10 years, housing prices have increased 156%, yet incomes have increased only 34% over that sametime.4

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“Cashingchequesisimportant.Bankshaveno-feebankaccounts,howeveryoustillneedidentificationandanaddress.Noaddress,noidentification,nocashingcheques—thenyouhavetogotothemoneymartswhichripyouoff.”

– PovertyTALKS! Member

Formanypeoplelivinginpoverty,theironlychoiceistospendasignificantamount of time and energy tomeet theirmost basic needs. Imaginespending all your spare time brainstorming, budgeting and travellingaroundthecitytoaccessservices,justtomakesurethereisenoughfoodfortheweek–itcanbeafull-timejobinitself.

“Itisnoteasy,wheneverydayyouhavetothink,‘ShouldIpaythelightbillorbuyaloafofbread?’Itisjustnottheeasiestthingintheworld?Itisthemostdifficult,anditisnotfeelinglikeapartoftheworld,notfeelinglikeaperson[butrathera]lesserperson.”

– Women Together Ending Poverty Member

poverty is...

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Totalshortfallpermonth:-$203Totalshortfallperyear-$2,436

poverty is...a trap

Themathworksagainstpeoplelivinginpoverty.Lowwagesmakeitnearlyimpossibleforpeopletomeettheirbasicneeds,tosaveforunexpectedexpensesandemergencies,ortomakelonger-terminvestmentsinassetssuchashome-ownership or education.Meanwhile, programs and services currently in place inAlberta areoften geared towardsprovidingbasicneeds,ratherthanpreventingpovertyorhelpingpeopledeveloptheirassetstomoveoutofpoverty.Asaresult,povertymeansspendingallyourresourcesandenergyjusttryingtokeepyourheadabovewater.

Consideralonemotheroftwoearningalowwage-foodandshelteraloneconsumesmorethan70%ofhermonthlyincome.6 Providedsheknowswheretoturn,shemustrelyonsocialservicesorcharitableorganizationstohelpmeetherandherchildren’smonthlyneeds–programsthathelpmakeendsmeetbutareunlikelytoliftheroutoftheexhaustingcycleofpoverty.Seethetablebelow8whichshowstheshortfallforasinglemotheremployedfull-timeatminimumwage.Sheistrapped.

“Ididwhatwassupposed tobe the right thing, Iwentback toschoolsoIcouldprovideformeandmydaughterwithoutrelyingonotherpeople,butasitturnsout,daycarecostsmorethanrent.”

– PovertyTALKS! Member

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poverty is...unhealthy for people Poverty and income inequality have formally been

recognized as determinants of health by a wide array ofreputable sources, including the British Medical Journaland the Public Health Agency of Canada. Poverty meanshaving less access to medical services and medication –due toa lackofmoney, transportation,ortime. Itmeans

experiencinghigherstressandisolation.Povertyisoftenassociatedwithpoornutrition.Likewise,poorhealthcontributestopovertybylimitingaperson’sabilitytoworkandearnareliableincome,increasingcostsofliving,increasingsocialisolation,andreducingmobility.

Theimpactofpoorhealthassociatedwithpovertycanbelongterm.Childrenbornandraisedin lowincomefamiliesareoftenimpactedbyinadequateaccesstofood,affordablehousingandothernecessitiesthatcontributetogoodhealth.Goingwithoutthenaffectstheirperformanceatschool,aswellasfutureprospectsforeducationandemployment.

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fastFACTS• Being poor has twice the

impact on life expectancy than cancer.8

• Wealthy men live 7.4 years longer than poor men.8

• Wealthy women live 4.5 years longer than poor women.8

poverty is...

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poverty is...unsustainableWe all lose out when poverty exists. Poverty costs us economicparticipation,unfulfilledpotential,anditisdetrimentaltocommunitylife.

Forthosestrugglingtomakeendsmeet,theyoftenfaceisolationin their communities and disconnection from supports andopportunities. They may face barriers to engaging in socialactivities, such as inviting guests over for a meal, or limits toactivelyparticipatingintheciviclifeoftheircommunities.Socialandeconomicexclusioncanalsotaketheformoflimitedaccesstoeducationaloremploymentopportunities,meaning that societydoesnotbenefitfromtheskillsandabilitiesofallcitizens.

Peoplelivinginpovertycanturntocostlyprogramsandservicestogetby.Whilethesesupportsoftenrespondtothesymptomsofpoverty,theyarenotalwaysdesignedtoaddresstherootcauses.In the long run, these formsof temporary relief endup costingsocietymore dollars than it would cost to change the systems,practices,andpoliciesthatcontributetopovertyinthefirstplace(see How is Poverty Reduced?inthisseries,formoreonthistopic).

fastFACTSAn economic analysis ofexternal costs in Alberta shows that poverty costs up to$9.5 billion per year9 inpublicservices likehealthcare, in crime, and in losteconomic opportunities forchildrenandpeoplelivinginpoverty. British Columbia,NovaScotia,Ontario,PrinceEdward Island, and NewBrunswick have all donesimilar studies showing thatpoverty costs us all.

If Ottawa and the provinces fail to make [poverty] a priority,SenatorHughSegalpredicts,“overtime,wewillbegintorunoutofthemoneythatweneedtodealwiththedemographicbulgebecauseitwillbeconsumedinthehealthcarerequirementsofthepoor,whichwillincrease.Itwillbeconsumedinthecostsoftheilliteracyandunemploymentwhichrelatetopoverty....Andit’llbeunsustainable.”

– Globe and Mail, May 6, 2011

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Poverty is complex, and manifests itself inpeople’s lives in many ways: social exclusion,poor health, lowquality of life, andunfulfilledpotential. Itreducesopportunitiesandimpactspeople’sabilitytolivewithdignityandchoice.Itdirectlyaffects1in10Calgarians.

Calgaryisadynamiccitywithastrongeconomy.We are well-positioned to reduce poverty inour communities.Given thenegative impact ithasonindividuals,communities,andCalgaryasawhole,wecannotafford to ignore it. Luckily,withconcertedeffort,povertycanbereduced.How is Poverty Reduced?inthisseries,addressessolutionstopovertyinmoredetail.

Tofindoutmore,readthroughWhy does Poverty Exist?andWho is Affected by Poverty?

what ispoverty

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reference list:

1. Kolkman,J.;Ahorro,J.(2011).In This Together: Ending Poverty in Alberta.Edmonton:PublicInterestAlberta,AlbertaCollegeofSocialWorkersandEdmontonSocialPlanningCouncil.Availableat:http://www.edmontonsocialplanning.ca/images/stories/pdf/in%20this%20together%202011.pdf

2. Wilkinson,R.andK.Pickett.(2009).The Spirit Level: Why Equality is Better for Everyone.Toronto,Canada:PenguinBooks.StatisticsCanada.

3. StatisticsCanada.(2009).Gini coefficients of market, total and after-tax income of individuals,1976to2009(CANSIMTable202-0709).Retrievedfromhttp://www5.statcan.gc.ca/cansim/pick-choisir?lang=eng&id=2020709&pattern=2020709&searchTypeByValue=1

4. CityofCalgary,OfficeofLandServicing&Housing.(2012).Need for Affordable Housing.Retrievedfromhttp://www.calgary.ca/CS/OLSH/Pages/Affordable-housing/Learn-about-affordable-housing/Need-for-affordable-housing.aspx

5. StatisticsCanada.(2009).Survey of Household Spending(Table62FPY0032).

6. UnitedWayandTheCityofCalgary.(2011).Signpost II: A Survey of the Social Issues and Needs of Calgarians.Calgary:GossGilroyInc.

7. Tableisbasedonthefollowingwithnumbersupdatedtoreflect2011amounts:Surviving Not Thriving.Calgary:UnitedWayofCalgaryandArea,(2007).http://www.calgaryunitedway.org/main/sites/default/files/Surviving%20Not%20Thriving%20Final%20%20jun07.pdf

8. KingstonCommunityRoundtableonPovertyReduction.(2010).2010 Deprivation Index.Kingston,Ontario.

9. Briggs,A.&Lee,C.R.(2012).Poverty Costs, An Economic Case for a Preventative Poverty Reduction Strategy in Alberta.Calgary:VibrantCommunitiesCalgaryandActiontoEndPovertyinAlberta.

resources for engaging on poverty issues:the city of calgaryunited way of calgary and areavibrant communities calgarycalgary poverty reduction initiativeaction to end poverty in albertapovertytalks!canada without povertynational council on welfarecanadian council on social development

“Myhumanityisnotdefinedbymyincome.”

- United Way Discussion Group Participant, 2011

W H A T I S P O V E R T Y ? S P R I N G 2 0 1 2