Poverty accounts for huge costs on our society. And not just the ones incurred by the massive losses suffered by our human capital because of all our wasted talent. There are financial costs, too. Big ones. The Canadian Centre for Policy Alternatives just released a study called The Cost of Poverty in BC assesses the total annual cost of poverty on the people of British Columbia at somewhere between $8-$9 billion.
If you remember 15 things from this blog post, make it these words from the CCPA’s report: it costs more to keep people in poverty than it does to fix the problem.
Hey, it’s just simple math.
And this great infographically-charged video goes into even more detail:
“No one should have to suffer hunger or homelessness in a wealthy province like BC,” says economist Iglika Ivanova, author of the study. “On this basis alone we must do better in addressing poverty. But there is also a clear economic case here: in light of the high costs of inaction, investing in poverty reduction is the fiscally responsible thing to do.”
And if this isn’t a convincing enough case for you, check out the fairly staggaring numbers from the study:
Poverty in BC represents a direct cost to government alone of $2.2 to $2.3 billion annually, or close to 6% of the provincial budget.
- The cost to society overall is considerably higher ‹ conservatively estimated at $8.1 to $9.2 billion per year, or between 4.1% and 4.7% of BC’s GDP.
- That is as much as $2,100 for every man, woman and child in BC, or $8,400 for a family of four, every year.
- BC’s poorest families are sicker and use a greater share of health care resources than any other group. If poverty reduction initiatives reduced health care use for the poorest 20% of families, we could save $1.2 billion in annual provincial health care spending.
And, according to The Cost of Poverty in BC study, this crippling – and downright embarrassing – problem could be addressed by a meaningful poverty-reduction plan that costs between $4-$5 billion. About half the cost of staying the course and bolstering our broken status quo.
I’m a believer that a community is measured by how it treats its weakest and most vulnerable citizens. How are we doing, British Columbia?
