Rethinking Social Assistance Policy to Reflect Modern Socio-Economic Realities

Abstract

In the past four decades rapid change has characterized the modern world. The

global market has permeated even the smallest of communities, and new economic, social

and political realities exist. The political, economic and social factors that once

contributed to the “success” of the welfare state are now radically different. The

framework for addressing poverty in our society must also change. Currently, Canada

addresses poverty through various welfare state initiatives, which translate into programs

such as social assistance, tax credits, employment insurance and pensions. It is proposed

that the current welfare state structure is addressing poverty inadequately and

inefficiently, to the detriment of individuals, the economy and society at large.

The framework for the social welfare state of the 1970s has become cumbersome

and outdated, and yet all Canadian provinces continue to employ this ineffective model.

The model is assessed as ineffective because a significant proportion of the population

still accesses social assistance, yet child poverty remains an issue and there is evidence of

long-term usage and re-entry to income assistance programs. Due to its design, the

current social assistance model functions not so much as a short-term safety net, but as a

vortex, leading to continued and repeated need for income assistance. Data presented in

this paper demonstrate that a significant number of social assistance recipients re-enter

the system. The current model of social assistance is serving new applicants and also a

number of long-term or recurrent clients. The current welfare model is incompatible with

modern employment trends and, in fact, may be increasing the need for income

assistance. The state has the responsibility to meet at least the basic needs of its citizens,

and there are social and economic reasons for doing so. The consequences of poverty and income disparity are harmful for all members of society. To address this, significant

changes are considered for the social assistance framework. A critique of the framework

provides the basis for a discussion of an alternative social policy.

The following key questions are answered: 1) what factors led to the success of

the welfare state during the 1970s? 2) is the current model working? 3) could it be

improved? A comparison of the Canadian social, political and economic climate of

various eras, and the corresponding welfare frameworks of those times, is presented.

After demonstrating the evolution that has taken place, data are presented related to

current poverty statistics and income assistance levels as compared to the defined

threshold for poverty in Canada, the low-income cut-off. A basic income policy is

proposed as an option which is then analyzed, evaluated, and shown potentially to

address the socio-economic realities of the global era.