Trudeau's numbers on poverty are mostly true but it's complicated - Action News
Home WebMail Friday, November 22, 2024, 07:22 AM | Calgary | -12.8°C | Regions Advertise Login | Our platform is in maintenance mode. Some URLs may not be available. |
PoliticsFACT CHECK

Trudeau's numbers on poverty are mostly true but it's complicated

Liberal Leader Justin Trudeau often touts his government's efforts to reduce poverty in Canada. But measuring poverty rates is not an easy endeavour.

Poverty rates in Canada have fallen since the Liberals were elected, but by how much?

Liberal Leader Justin Trudeau spoke in both English and French about his government's efforts to reduce poverty in Canada outside Rideau Hall this week and again at a campaign rally in Edmonton. (Patrick Doyle/Reuters)

As part of our federal election coverage, CBC News is assessing the truthfulness and accuracy of statements made by politicians and their parties.

The Claim: "Nine hundred thousand Canadians have been lifted out of poverty, including 300,000 children."

Liberal Leader Justin Trudeau on his commitment to "people working hard to join" the middle class.

The Facts:

Last February, Statistics Canada reportedthat the number of people living below the poverty line dropped from 4,238,000 in 2015 when the current Liberal government formed its majority to 3,412,000 in 2017, the most recent year for which data is published.

That's a decrease of 826,000.

Those figures include children,of which the number living in poverty declined from 900,000 to 622,000 in the same period.

Jennifer Robson, an associate professor of political management at Carleton University, described the reductions as "real progress."Robson previously worked as apolitical stafferin the Liberal government of Jean Chrtien and then as a public servant during the years when the Conservative Party was in government under Stephen Harper.

Speaking to reporters, Trudeau credited his government'sCanada Child Benefit(CCB) as a key factor in lifting low-income families out of poverty.

The CCB was implemented in 2016 and is tied to a person's income. Itreplaced amix of three previous federalchild benefits that often left tax filers confused. What's important is that, in the end, it "resulted in higher incomes for families with children,"Statistics Canadasaid.

The connection between the simpler, income-adjustedCCBand falling poverty rates wasnot surprising to tax and inequality experts, according to Robson.

"Let me put it clearly: when you give poor people more money, they are less likely to be poor."

For those following the math, though, we are stillshort of 900,000the figure touted by Trudeau on the campaign trail.

That's because it includes at least 74,000 people that the Finance Departmentprojects will beraised out of poverty by the newCanada Workers Benefit (CWB).

Rolled out earlier this year, it's meant to help low-income workers keep more of their money.

Its predecessor,known as the Working Income Tax Benefit, was introduced by the Harper government in 2007.

But the 2019 tax year will be first that the credit is assessed automatically by the Canada Revenue Agency.

Previously, candidates needed to fill out a relatively complexform that proved to be a barrier forsome low-income workers, Robson said. Finance reported in 2016 that 15 per cent of workers eligible for the predecessor credit did not apply for it, even though they filed a tax return.

Robson would not speculate on the accuracy of the Finance Department projectionbut did say that the revamped credit would likely increase thenumber of Canadiansliving above the poverty threshold.

Whether it will raise 74,000 more people out of poverty remains to be seen.

Measuring poverty is tricky

Measuring poverty rates in Canada is difficultbecause theydepend largely on how poverty is defined. Last year, the Liberal government adopted an official definition known as the Market Basket Measure (MBM).

Under this definition a personlives in poverty if they cannotafford a "basket" of goods and services in their own community. Included in the basket are basic things like healthy food, shelter and clothing.

Therefore, the threshold for poverty will depend on where a person lives. The official poverty line in Prince George, B.C., will not be the same as in St. John's.

Employment and Social Development Canada developed the MBMand dictatedwhat is included in the basket for any given region. Statistics Canada collects the data.

Canada's official poverty line is determined by the Market Basket Measure, which measures whether a family can afford a basic standard of living that includes things such as shelter, clothing and healthy food. (Adam Carter/CBC)

As a result, any given government is hard pressed to manipulate data on poverty rates in their favour.

That said, the MBM is not perfect. It requires frequentupdating to provide an accurate reflection of the costs of living in areas across the country.

Statistics Canada, along with Employmentand Social Development Canada, are currently completing a major reassessment of what kinds of costs should be included in the basket of goods and services.

An updated benchmark poverty line could mean that trends change in coming years, but by how much is impossible to know now.

"We will haveto live with the fact that it's not going to show these steady, smooth progressions. There will be jumps in the pattern," said Robson of overall poverty rates.

"Some of that will be because we are measuring better, and that's a good thing."

Verdict: Mostly true

Sources:Canadian Income Survey, 2017, Statistics Canada;StatsCan data for 2017 shows poverty is declining especially for children, CBC News;Market Basket Measure (MBM), Statistics Canada;5 things to know about the new Canada Child Benefit, CBC News;Report on Federal Tax Expenditures - Concepts, Estimates and Evaluations 2016, Department of Finance Canada;An update on the Market Basket Measure comprehensive review, Statistics Canada.

Add some good to your morning and evening.

Your weekly guide to what you need to know about federal politics and the minority Liberal government. Get the latest news and sharp analysis delivered to your inbox every Sunday morning.

...

The next issue of Minority Report will soon be in your inbox.

Discover all CBC newsletters in theSubscription Centre.opens new window

This site is protected by reCAPTCHA and the Google Privacy Policy and Google Terms of Service apply.