Old age is monetized and pressure is placed on older adults to strategically outsmart future financial markets to ensure a personal portfolio protection against poverty in their final years. Women remain at highest risk of poverty since statistics show that women do not save for their retirement. The subtext of this Financial Post article on “Your Money” is one of individual responsibility to strategically manage money factoring in the potential economical situation from twenty to sixty years in the future. Given that the financial experts themselves were unable to foresee the financial meltdown even months in advance or to respond to it effectively even months afterwards this is just another callous empty article providing adult children of the elderly and social agencies with another excuse to blame impoverished elderly for their own demise.

As the extremes of wealth and poverty intensify, insurance companies, banks and financial institutions entangle webs of potentially lucrative and increasingly complex refinanced, repackaged and unregulated debt, credit and insurance schemes that reap huge dividends for a handful while stripping the most vulnerable of everything including their homes, their incomes, adequate health care provided in a respectful dignified environment and finally a place to die  with dignity in a truly respectful care giving environment.

Webliography and Bibliography

Allentuck, Andrew. 2020-01-20. “Living longer — will poverty stalk the very elderly?Financial Post.

long term care insurance, retirement strategies, retirement, life expectancy, boomers, health, at-risk, belonging, moral topography, humiliation, dignity, at risk populations, Social Justice, social exclusion, vulnerability to social exclusion, moral mathematics, poverty, extremes wealth poverty, policy research, @twitter,

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Judith Maxwell (2008-01-28), former head of the Economic Council of Canada and Canadian Policy Research Networks, claimed that the high concentration of at-risk Canadians live in highly disadvantaged neighbourhoods of poverty by postal code. In 2008 the Canadian national poverty rate remained at c. 16% where we’ve been stuck for eight years. Maxwell claims that religions, some social-minded businesses and countless volunteers who constitute civil society are revitalizing desperately poor neighbourhoods, tackling homelessness and letting governments know that the current policies prevent people from escaping poverty.

read more | digg story

Maxwell, Judith. 2008-01-28. “Forget policy makers, civic leaders are spearheading the fight to end poverty.” Globe and Mail.

“Canada’s social safety net results in lower rates of poverty and income inequality along with higher rates of self-sufficiency of vulnerable populations than in the United States. But many Canadians would be surprised to find out that the U.S. has a lower burglary rate, a lower suicide rate, and greater gender equity than Canada […] Canada’s relatively poor record on child poverty, income inequality, and assault [remain] shocking […] Particularly troubling is its ranking on child poverty. In Canada, according to OECD statistics, one child in seven lives in poverty. Canada also still has an unacceptably high rate of poverty among its working-age population. According to statistics published by the OECD, just over 10 per cent of its working-age population is below the poverty line. This is double the rate of Denmark, the best-performing country on this indicator. Canada’s crime record is also disturbing—with 17 times the rate of assaults as the best-ranked country, 7 times the rate of burglaries, and 3 times the rate of homicides. Crime takes its toll on trust—both within the community and within public institutions. This picture of crime is not what Canadians think of when they think of their society. […] Canada ranks high on the indicator measuring acceptance of diversity […] Canada’s past achievements, such as reducing poverty among its elderly, show that, given the political will, Canada could successfully address other social challenges to sustain future quality of life (Conference Board of Canada Society Overview 2008 ).”

The Conference Board of Canada (2008 ) compared economic, innovation, environment, education, health and society performances of Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, Netherlands, Norway, Sweden, Switzerland, United Kingdom and United States which are considered to be Canada’s international peers. Canada’s standard of living ranking dropped from 4th spot in 1990 to 9th in 2008. In terms of Education and Skills, over 40% of adult Canadians lack literacy skills required for everyday life and work in modern society. In terms of innovation Canada scored D since the 1980s and has failed to produce any top global brands.

The full report for 2008 will not be available until September. I am curious to see how data specifically related to Canada’s growing aboriginal community with its unique social histories and current dilemmas will be analysed in this report. When we examine the weakest points in the report, it is obvious that the vulnerabilities faced by Canada’s most at-risk group (aboriginal women and children) affect our international ranking. It is also useful to consider the location of remote aboriginal communities in terms of the most volatile environmental debates in Canada.

Data for this annual report comes from the Organisation for Economic Co-operation and Development (OECD) (c.80%), the United Nations, the World Bank, and the Yale Center for Environmental Law and Policy. The report measures quality of life based on this definition:

“The Conference Board defines a high and sustainable quality of life for all Canadians as being achieved if Canada records high and sustainable performances in six categories: Economy, Innovation, Environment, Education and Skills, Health and Society (B 10/17). The word “sustainable” [1] is a critical qualifier. It is not enough for Canada to boost economic growth if it is done at the expense of the environment or social cohesion. For example, to take advantage of high commodity prices by mining and exporting all our natural resources may make the country rich in the short term, but this wealth will not be sustainable in the long or even medium term. The Conference Board has consistently argued that economic growth and sustainability of the physical environment need to be integrated into a single concept of sustainable national prosperity—what we call here a “high and sustainable quality of life for all Canadians.”

..

“Having a high quality of life means living in communities that are free from fear of social unrest and violence, communities that accept racial and cultural diversity, and those that foster social networks. A country that provides a high quality of life also minimizes the extremes of inequality between its poorest and richest citizens, while reducing the social tensions and conflicts that result from these gaps. Performance in the Society category is assessed using 17 indicators across three dimensions: self-sufficiency, equity, and social cohesion. Self-sufficiency indicators measure the autonomy and active participation of individuals within society, including its most vulnerable citizens, such as persons with disabilities and youth. Equity indicators measure equity of access, opportunities, and outcomes. Social cohesion indicators measure the extent to which citizens participate in societal activities, the level of crime in society, and the acceptance of diversity [. . .] Canada’s social safety net results in lower rates of poverty and income inequality along with higher rates of self-sufficiency of vulnerable populations than in the United States. But many Canadians would be surprised to find out that the U.S. has a lower burglary rate, a lower suicide rate, and greater gender equity than Canada […] Canada’s relatively poor record on child poverty, income inequality, and assault [remain] shocking […] Particularly troubling is its ranking on child poverty. In Canada, according to OECD statistics, one child in seven lives in poverty. Canada also still has an unacceptably high rate of poverty among its working-age population. According to statistics published by the OECD, just over 10 per cent of its working-age population is below the poverty line. This is double the rate of Denmark, the best-performing country on this indicator. Canada’s crime record is also disturbing—with 17 times the rate of assaults as the best-ranked country, 7 times the rate of burglaries, and 3 times the rate of homicides. Crime takes its toll on trust—both within the community and within public institutions. This picture of crime is not what Canadians think of when they think of their society. […] Canada ranks high on the indicator measuring acceptance of diversity […] Canada’s past achievements, such as reducing poverty among its elderly, show that, given the political will, Canada could successfully address other social challenges to sustain future quality of life (Conference Board of Canada Society Overview 2008).”

Footnotes

1. “Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs (Brundtland 1987:43).”

Webliography and Bibliography

Brundtland, Gro Harlem. 1987. Our Common Future: World Commission on Environment and Development. Oxford: Oxford University Press.

Conference Board of Canada. 2008.

2012-01-21 “Steve Kaplan of the University of Chicago thinks finance explains much of the rise in inequality. Updating a series developed by Thomas Piketty and Emmanuel Saez, Mr Kaplan notes that the share of income going to the 1% reached an 80-year high of 23.5% in 2007, only to sink to 17.6% in 2009 as the financial markets deflated. The trend is even more pronounced for the top 0.1%, whose share of total income rose to 12.3% in 2007 but sank to a still disproportionate 8.1% in 2009 (The Economist 2012-01-21).”

2012-01-16 While the gap between rich and poor in Canada continued to increase, Canada, along with Denmark, Norway and other Scandinavian countries, is a world leader in economic mobility. Americans have less economic mobility than their peers in Canada. … “Canadians shouldn’t be complacent. Ottawa and most of the provinces are running large budget deficits, and education and health care are already targets as governments hunt for savings (McKenna 2012-01-16).”

2011-12-02 New York Gov. Andrew M. Cuomo and legislative leaders, consider raising income taxes on wealth while cutting them for the middle class as they seek ways to shore up a state budget strained by the weak economy. He was partly influenced by the Occupy movement (Kaplan 2011-12-02).

2010-03 “On average Canada is up to three times more mobile than the United States. Or another way of putting it, up to three times as much inequality is passed across the generations in the United States than in Canada. Furthermore, these differences arise from differences in the extremes of the earnings distribution: there is notably less mobility at the very top and the very bottom of the American income ladder.” . . Education is a provincial responsibility in Canada but financial resources are not linked to property taxes but to the province-wide income tax unlike the United States. Poorer neighbourhoods fare better with the Canadian method. However, as income inequality rises opportunities for upward mobility for future generations may be in jeopardy as wealthy Canadians form American-style exclusionary institutions and as cities like Toronto become increasingly polarized. In Toronto, Vancouver and Calgary neighbourhoods are becoming more sharply divided along income and ethnic lines (Corak, Curtis and Phipps 2010-03).

2006-12-16 Wealth disparities are a serious concern and will intensify in 2007 according to TD economists Drummond and Tulk. The net worth of the lowest quintile fell to a negative net worth from zero while national net worth grew 2.8% in the last quarter of 2006. Less than 10% of families who hold at least 53% of total Cdn. net worth ($4.8 trillion). read more | digg story

This is a draft is being written on line back and forth between articles, EndNote, zotero and the slow world. It is currently being updated.

2011

OECD Record inequality between rich and poor

According to TD Bank Financial Group Economists Drummond and Tulk (2006) wealth disparities will intensify. They paint a dismal picture for Canadians excluded from the top quintile. Prospects are bright for Canada’s 22 billionaires and others in that elusive group of Ultra High Net Worth (UHNW) ie c. .004 % of Canadian families (Stenner et al., 2006), who hold more than $10,000,000 in assets. In sharp contrast to Canadians in the four lower quintiles, the UHNW benefited with large increases in wealth since 1984. Unlike real estate held by the lower quintile, these rare families saw their luxury homes, properties, businesses and collections rise in price. With these additional assets they were able to invest, many in tax-free RRSPs, so their net worth grew. “If investment returns rise the trend towards growing wealth disparities will likely intensify. This could be compounded by sluggish wage gains in the low end and the financial challenge of immigrants – the main source of growth in the younger, less affluent population (Drummond and Tulk, 2006).”

Considerable wealth was accumulated in Canada between 1999 and 2005. In 2005 net worth increased by 41.7% to nearly $1.5 trillion (US?). The most recent Statistics Canada report revealed today that the Canadian national net worth reached $4.8 trillion by the end of the third quarter. While in terms of an economist’s algorithm this translates into an average of $146,700 per person. In reality only the a tiny number of Canadian households benefited. “The gain in net worth resulted from an increase in national wealth (economy-wide non-financial assets) as well as a sharp drop in net foreign debt. National net worth grew 2.8% in the third quarter, the largest increase in more than two years (Statistics Canada 2006)”.

Drummond and Turk are concerned that in spite of the dramatic growth in Net Worth, there is a significant portion of the population with little or negative Net Worth (debts/assets ratio) in 2005. Although Drummond and Turk cite the World Institute for Development Economics Research as their source in regards to situating the seemingly overwhelming disparity between the 10% of households that are extremely wealthy and the lower quintiles. (I believe they refer to reports by Senior Researcher of the World Institute for Development Economics Research (WIDER) of the United Nations University, Mark McGillvray(2005) whose research is available only on the deep Internet — an exclusive members-only club.) For the first time however, 165 of the UNHW families accepted to be interviewed by the Stenner Group. The True Wealth Report (Stenner 2006) reveals that the most popular past times of UNHW are traveling (particularly to London, Paris, Vienna, New York and Vancouver staying in ), playing golf and taking part in other sports, collecting art and antiques, drive BMW’s, Volvo’s or Porsches. They claim their philanthropy is tied to both their religious faith and strategic money management (Stenner et al., 2006) (Morissette and Zhan, 2006). According to Stats Can economists in their recent report who refer to research by Western University Economist James B. Davies and Shorrocks, Economist with the United Nations World University, it is to measure the actual holdings of the uber-wealthy. Forty-eight percent of Canadian wealth might be held by less than 1% of the Canadian population(Davies and Shorrocks, 2000, Davies, 2003). Western University Economist and co-author of publications with Shorrocks, editor for the United Nations World University publications and Financial Post journalist (Chevreau, 2003) both cited Shillington’s C.D. Howe Insitute report (2003), revealing an unintended disincentive for the those who earn under $50,000/annual to save. “Shillington (2003) has used Statistics Canada’s 1999 Survey of Financial Security to illuminate what he calls the “futile saving” problem. He looks, first, at the savings of “near-seniors”, those households where the older spouse is aged 55 – 64. He finds that 21% of these households have no retirement saving, and in total 53% have retirement savings of less than $100,000. On the grounds that savings of $100,000 would not permit the purchase of an annuity of more than about $10,000 Shillington believes that the majority of these people will be GIS recipients in retirement. Their savings are thus “futile”, since they will be at least half confiscated by the GIS taxback.17 Turning to actual GIS recipients, Shillington reports that about 23 percent have an RRSP, with an average value of $43,000; 29 percent have an RPP, with an average value of $65,000; and about 40% have either an RRSP or RPP. In Shillington’s view this represents the result of a gigantic fraud, however unintentional.

Governments and financial institutions have advertised the importance of saving for retirement very heavily, and the annual campaign to get RRSP contributions is a vigorous one. The voices warning low-income people that this is in no sense an “investment” are tiny ones (Davies 2003:28).” Shillington concluded that, poor seniors dependent on the federal Guaranteed Income Supplement (GIS) and its means-tested provincial and municipal counterparts should not bother with RRSPs. To do so means losing GIS benefits, rent subsidies, drug benefits, provincial aid programs like Ontario’s GAINs and similar welfare programs.” Once RRSPs create income from Registered Retirement Income Funds after 69, $1 in income reduces GIS benefits by 50¢. Since half of GIS recipients pay income tax, they face an effective marginal tax rate of 75% on extra income. In some cases involving dividend gross-ups, the effective top-rate savings may pass 100%, Mr. Shillington said. For them, “RRSPs are a terrible investment. They are victims of a fraud, however unintentional.” Saving $100,000 in RRSPs may be futile if that is your target. However, it does not mean younger people with $100,000 already saved should stop, as long as they are on the way to accumulating several hundred thousand dollars by the end of their working lives. “RRSPs can be dangerous to your financial health” is the subtitle of Free Parking, a self-published book by “reformed financial planner” Alan Dickson. “I totally agree with the report,” Mr. Dickson said. Citing 2001 Statistics Canada data, Mr. Shillington said of $1-trillion in retirement assets, $600-billion is in employer pensions, $340-billion in RRSPs and $70-billion in RRIFs (Chevreau, 2003).

“National net worth reached $4.8 trillion by the end of the third quarter, or $146,700 per person. The gain in net worth resulted from an increase in national wealth (economy-wide non-financial assets) as well as a sharp drop in net foreign debt. National net worth grew 2.8% in the third quarter, the largest increase in more than two years (Statistics Canada 2006)”. Clever people like Derek Foster who know how to work the system trigger angry responses against publicly-financed assistance for the lowest quintile. (Heinzl, 2005) Foster (born c. 1961) began making astute investments while still in university. He learned from finance gurus Peter Lynch and Warren Buffett. In 2005 he continued to earn enough from his total investments (which total six digits) in Starbucks, Colgate-Palmolive, Rothmans Inc., Royal Bank of Canada, Corby Distilleries Ltd., Manulife Financial Corp., George Weston Ltd., Pembina Pipeline Income Fund, Canadian Oil Sands Trust and a dozen or so others, that he and his family of four can live modestly without ever having to work again. Their low income c. $30, 000/annual actually allows them to enjoy certain publicly-financial benefits designed for low-income earners with no assets (Heinzl, 2005). Others include Dianne Nahirny’s Stop Working, Start Living (http://www.smartmakeovers.com) and Alan Dickson’s Free Parking and Advance to Go (http://www.freemoneypress.com)(McGillivray, 2005)

With more than a billion people living on less than one dollar per day, some evidence of increasing gaps in living conditions within and between countries and the clear evidence of substantial declines in life expectancy or other health outcomes in some parts of the world, the related topics of inequality, poverty and well-being are core international issues. More is known about inequality, poverty and well-being than ever before as a result of conceptual and methodological advances and better data. Yet many debates persist and numerous important questions remain unanswered. This book examines inequality, poverty and well-being concepts and corresponding empirical measures. Attempting to push future research in new and important directions, the book has a strong analytical orientation, consisting of a mix of conceptual and empirical analyses that constitute new and innovative contributions to the research literature.Mark McGillivray is a senior researcher with the World Institute for Development Economics Research (WIDER) of the United Nations University.

Selected webliography

Carroll, James. 2011-01-03. “Now the rich get richer quicker.” Boston Globe.

CBC. Billionaires of the World.

Chevreau, Jonathan (2003) RRSPs a bad option for low-income earners Financial Post.

Corak, Miles; Curtis, Lori; Phipps, Shelley. 2010-03. “Economic Mobility, Family Background, and the Well-Being of Children in the United States and Canada.” IZA DP No. 4814. Discussion Paper No. 4814. Forschungsinstitut zur Zukunft der Arbeit/Institute for the Study of Labor.

Davies, James B. (2003) Social and Economic Risks to Seniors in Ontario. Ontario Panel on the Role of Government (OPRG). Toronto.

Davies, James B. & Shorrocks, Anthony F. (2000) “The Distribution of Wealth.” In Atkinson, A.B. and Bourguignon, F. (Eds.) Handbook of Income Distribution.

Drummond, Don & Tulk, David (2006) Lifestyles of the Rich and Unequal: an Investigation into Wealth Inequality in Canada. TD Bank Financial Group.

The Economist. 2012-01-21. “Income inequality: Who exactly are the 1%?

Frank, Robert H. 2010-10-16. “Income Inequality: Too Big to Ignore.” New York Times.

Heinzl, John (2005) The ‘Youngest Retiree’ Tells How To Punch Out Of The Workplace. Globe and Mail.

Kaplan, Thomas. 2011-12-02. “Income Taxes for Wealthy May Increase in Albany Deal.” New York Times.

Krugman, Paul. 2010-09-19. “The Angry Rich.” New York Times.

McGillivray, Mark (2005) Inequality, Poverty and Well-being, Helsinki, Finland, Palgrave Macmillan.

Mcgran, Kevin (1998) Anti-poverty activists take case to the United Nations. The Canadian Press. Toronto, ON.

McKenna, Barrie. 2012-01-16. “In Canada, unlike the U.S., the American dream lives on.” Globe and Mail.

Mcquaig, Linda (1995) Shooting the Hippo: Death by Deficit and Other Canadian Myths, Toronto, Viking

Mcquaig, Linda (1998) The Cult of Impotence: Selling the Myth of Powerlessness in the Global Economy, Toronto, Penguin Books

Morissette, René & Zhan, Xuelin (2006) Revisiting Wealth Inequality. Perspectives on Labour and Income. Ottawa, ON, Statistics Canada.

Shillington, Richard (2003) New Poverty Traps: Means-Testing and Modest-Income Seniors. C. D. Howe Institute. Backgrounder. 65.

Statistics Canada. (2006). “National balance sheet accounts: Third Quarter”. Press Release. Ottawa, ON. December 15, 2006.

Stenner, Thane, Bower, Rod, Currie, John & O’connor, Rory (2006) True Wealth Report: Values and Views of Ultra-Affluent Individuals, Vancouver, BC, T. Stenner Group ™.

Flynn-Burhoe. 2007. “Wealth Disparities Will Intensify as UHNW Get Richer.” http://docs.google.com Flynn-Burhoe. 2007. “Wealth Disparities Will Intensify as UHNW Get Richer.” Papergirls Blog. December 16, 2006. Creative Commons License 2.5 BY-NC-SA