Canada's Welfare State

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Recommended: The role of the government in an economy

In my opinion, social programs are essential to the economic health of both citizens and the country as a whole. Programs such as public education and income support (ex. The GST/HST tax credit for low-income earners) serve as financial equalizers which allow for improved standards of living, and, as a result, increased economic activity. The reasoning behind this is that a more even distribution of wealth results in more consumer spending because money that would otherwise be held in the brokerage accounts of the upper class, for example, are instead used to fulfill the basic needs of the lower class. Additionally, programs such as public healthcare and employment insurance provide financial and psychological stability to citizens and helps to maintain a healthy economy. Although the system can be abused, it does not occur in a majority of cases and I would argue that the benefits outweigh the disadvantages.
There are many social welfare programs designed to provide income support for Canadians, mostly for those with little to no income. Some may criticize these programs as too generous or an incentive to be lazy, however, welfare rates are below the poverty line, and most of the people receiving benefits cannot find permanent employment or are disabled. In fact, 68% of food bank users receive some form of social assistance. Studies done at the University of Manitoba have shown that guaranteed income programs reduce hospital visits caused by work injuries, domestic violence, and mental health issues, which would save billions of dollars in healthcare and prison costs annually. Extending welfare to the bottom 10% of Canadian would cost approximately $10,000 per person (not taking into account savings in the healthcare system a...

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...th.gov.bc.ca/pho/why-public-health-important.html.
Brian Lindenberg, “Canadian Healthcare: What Works and What Doesn’t | Benefits Canada,” accessed February 14, 2014, http://www.benefitscanada.com/benefits/health-wellness/canadian-healthcare-what-works-and-what-doesn%E2%80%99t-27647.
Jeffrey Simpson, “The Real Problem with Canadian Health Care,” National Post, accessed February 14, 2014, http://fullcomment.nationalpost.com/2012/10/04/jeffrey-simpson-the-real-problem-with-canadian-health-care/.
“Education in Canada Statistics,” accessed February 14, 2014, http://www.nationmaster.com/country/ca-canada/edu-education.
Linda Nazareth, “Why Canadian Students Are among the Globe’s Smartest,” The Globe and Mail, accessed February 14, 2014, http://www.theglobeandmail.com/report-on-business/economy/economy-lab/keeping-up-the-standards-in-science-math/article13926966/.

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