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
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I agree, social services are the largest component of government spending and are very important to Canadians. It helps people with low income, old age, and people who have jobs but are in need for financial help. Under social services, we have a Canadian Pension Plan financed by employee contributions. This benefits employees and self-employed persons. As for people who have low income, we have the Guaranteed Income Supplement, which guarantees a certain amount of money to each individual. In 2002, the maximum GIS payment to an individual was $526.08. Next, Old Age security is offered to individuals who are 65 years of age and meet the residency requirement receives approximately $450 per month. As you can see, there are already many beneficial services out there, but unfortunately, this does not apply to everyone. Due to the economy and tax in general, people are spending less. People who are unemployed will not spend money and those who are still employed are afraid of spending. Ultimately, economy is going to decline even more because spending is the main factor of keeping a good economy. Hence, government should impose a tax free financial investment plan or some sort of decrease in tax. This will allow individuals to slowly increase their income.
-Henry M.
Block: E
I agree that social services are one of the most important benefits for Canadians. People sometimes depend on these benefits and also look forward to it such as seniors and low income families. It also does seem like "charity" because these money are used to make Canadians more stable and happy. However, there are some people who take advantage of social services such as sickness EI benefits. Suppose a person applies for this benefit and states that they are very sick when they're not. Would all people like this get away with this excuse or not?
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