on senior poverty

http://www.seniorsdaily.net/index.php?option=com_content&task=view&id=1819&Itemid=35

We’re number two, and that’s really good. In terms of poverty rates for the elderly, we are second only to the Netherlands, which has the lowest rate. But we can’t rest on our laurels.

According to a recent release, the Conference Board of Canada has found that 5.9 per cent of Canadian seniors are poor, compared to two per cent in the Netherlands. That is using a definition of poverty as having defining a disposable income less than half that of the national median income.

Canada’s poverty rate for seniors has fallen substantially from 1971, when it stood at 36.9 per cent. This important drop can be explained in part by the introduction of the Canada and Quebec Pension Plans and in part by the increasing availability of job-linked pensions.

However, the rate has risen since the mid-nineties, when it stood at 2.9 per cent.

While the Conference Board release does not discuss the reasons for the jump in the Canadian rate, a discussion about possible explanations is in order, especially as they have serious implications for the future. But first we need to say a few words about the definition of poverty.

The definition of poverty used is comparative, half of the mean. The mean is the point with half the population above and half below.

This kind of definition is subject to the criticism that if everyone’s real income doubled, the poverty rate would remain unchanged, in spite of the fact that everyone would be much better off. Realistically, such a change has not occurred and is not occurring.

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D - not a good web site. It does not list anywhere what TIME this article is for. Meaning it ends up in the second-rate data dustbin online, cluttering up the discussion for years.

D - now let's compare to what CARP has to say.

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http://www.carp.ca/2010/11/26/number-of-seniors-living-in-poverty-soars-nearly-25/

The number of seniors living in poverty spiked at the beginning of the financial meltdown, reversing a decades-long trend and threatening one of Canada’s most important social policy successes.

The number of seniors living below the low-income cutoff, Statistics Canada’s basic measure of poverty, jumped nearly 25 per cent between 2007 and 2008, to 250,000 from 204,000, according to figures released on Wednesday by Campaign 2000. It’s the largest increase among any group, and as the first cohort of baby boomers turns 65 next year, could place increased pressure on families supporting elderly parents.

Economists say women make up as much as 80 per cent of the increase in seniors poverty.

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D - notice anything? CARP picked the LICO and not median measure. I sure wonder what the other measure would look like instead?

D - if you look at CARP's position, it only incidentally affects poor seniors. It resembles Reagan's 'trickle down theory' of economics, in that most of the loaf of bread goes to the fat-cat (entire) middle class (even lower upper class), but if a few crumbs fall off the table to the actually poor seniors, well they guess that is OK.

D - all of the seniors in poverty can be pulled out of poverty RIGHT NOW, and with no additional funding required for OAS. All that is required is to re-align OAS for its original purported mission - to help poor seniors.
Meaning that CARP has NO interest in doing so.
They are a lobby group for affluent 50-plus-agers. I doubt many truly poor seniors could use all those luxury perk discounts their membership in CARP offers.

D - Harper has a chance to do away with senior poverty at this critical moment. Meanwhile, let's contrast his position with the NDP and Liberals.

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http://www.theglobeandmail.com/news/politics/ottawa-notebook/harpers-retirement-agenda-set-to-open-up-the-battle-lines/article2317234/

The most politically challenging will be his effort to put Canada’s “retirement income system” on a sustainable footing. Given that he made clear he was not talking about the Canada Pension Plan, that leaves Old Age Security – an income stream for Canadians 65 and over.

The cost of the program is poised to soar as the baby boom generation retires, which is starting now. Previous governments saw this coming, but ultimately backed down from plans to tackle the problem.

When Tory Prime Minister Brian Mulroney partially de-indexed the program from inflation in his 1985 budget, he was famously accosted by then-63-year-old protestor Solange Denis, who fumed “You lied to us.” She then summed up Mr. Mulroney’s political future as “goodbye Charlie Brown.” A week later, Mr. Mulroney reversed the decision, which he called “a mistake.”

(D - Mulroney should have renewed the emphasis on poor seniors. He should not have tried to de-index OAS from inflation, which would hurt poor seniors.)

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http://www.theglobeandmail.com/news/politics/ottawa-notebook/opposition-fire-back-against-harper-threats-to-pension-system/article2316277/

Peter Julian, the official opposition finance critic, also characterized the Prime Minister’s words as “ominous.” Liberal finance critic, Scott Brison, meanwhile vowed that his party will “fight every step of the way” any cutbacks to benefits for low income seniors.

(D - wanna bet the Liberals will fight even harder for middle-to-upper class seniors?)

(PM Harper speaking after this.)
But, he added, “For those elements of the system that are not funded, we will make the changes necessary to ensure sustainability for the next generation while not affecting current recipients.”

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D - Harper is not willing to contest affluent seniors. Meaning this will only impact those who are not yet of retirement age, or retired. Meaning a swipe at the "Gen-X 'lite'" late Boomers and then GenXYZ.
I HOPE this means he will exempt pre-Boomers that have already based their finances on certain assumptions, and may be unable to adjust them now. I hope. But I FEAR he would be willing to exempt all the Boomers ahead of time too.

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“Now, he’s threatening ... seems to be trying to precondition us to cuts to the OAS, which is there to help the lowest income Canadians,” charged Mr. Brison. “At a time when other global leaders at Davos are addressing income inequality not only is Harper ignoring it he’s threatening to make it worse.”
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D - actually, Brison, if Harper rejigged OAS to target poor seniors this would qualify as just that: addressing income inequality.
Making you, Brison, just another 'talking head' in politics.
Let's give Harper a chance and see where this goes.

D - again, a program that is 'for the poor' BUT has a clawback that starts/ ends at c. $70-110,000 respectively is a program in need of reform.
I bet if we crunch the #s, we could
a) cut out upper middle class seniors,
b) raise all the lower class seniors out of poverty
c) all without adding a single cent of funding.
In fact, why don't we pocket the difference and use it to pay down the debt. After all, once the Boomers have all retired (in 15 years), then we'll lose revenue as increase social program spending costs. The Boomers did not set aside a gov't trust fund to handle this - this could be their apology to their juniors.