Wednesday, January 21, 2009

Social Services in Canada

Although his weekly income had decreased by $250, 43-year-old Scott Campbell says he is alright. However, for many other unemployed workers, the recession and job cut offs have been tough. (Foreclosed houses, assets claimed) Unions and critics are fighting for fewer restrictions on who can receive the insurance and to increase the amount received as well as the duration of receiving the benefits. Economist Toby Sanger agrees there is a lack of coverage because approximately 40% of unemployed people receive these benefits. With the auto industry laying off workers, what are the 60% of people who don’t qualify for unemployment insurance to do?

Social services is the largest component of government spending. Employment insurance benefits require the bulk of the percentage total. In 2001-2002, over $11 billion was spent on aiding temporarily laid off workers. While each level of government spends money on social services, the federal government holds most of the responsibility. To do this, they must obtain revenue from different taxes and during tough times, the government requires more money to provide the services its citizen’s demand. Canada’s progressive tax approach (the more you make the more you pay in taxes) allows vertical equity by decreasing the difference between income groups.


Having social services is very important because it gives Canadians an opportunity to get back on their feet. Many people who lose their jobs may be very hard workers but during times of recession, bad luck cannot be helped. Although it may seem unfair at times to be paying taxes which don't benefit you personally, but go to someone else's family, you could be in their situation just as easily. In conclusion, taxes that are used for social services are like giving indirectly to chairity. Although it may hurt a little bit, it is neccessary for Canada to function and people to get much needed help.




http://www.thestar.com/News/Canada/article/533875