25 in 5 Call to Action
Let's Make the January 27th Federal Budget Count for Poverty Reduction

"When you've got banks not lending, and businesses not wanting to produce more because prices are falling and people aren't buying, and consumers looking at their own budgets and trying to balance them and prepare for a rainy day, the only actor that is left to start spending and keep the economy from going into freefall, is the government."

Who said it? Armine Yalnizyan, of the Canadian Centre for Policy Alternatives, responding to Finance Minister Jim Flaherty’s suggestion that access to credit is the most important issue facing our economy (CTV Canada AM, Jan 07). 

Show Your Support for Social Investments in the January 27th Budget

As we near the January 27th federal budget, the Conservative government is weighing its options for kickstarting a slumping economy.

Evidence is mounting that investments in infrastructure such as affordable housing and early learning and child care, along with strengthening the incomes of vulnerable families and adults, will reduce poverty while at the same time creating jobs and stimulating demand in local economies across Ontario.

Appearing before the federal Conservative pre-budget committee on January 8th, Laurel Rothman of Campaign 2000 summed up perfectly the task at hand:  “As Canada enters into a period of economic insecurity, it is even more crucial for our governments to focus on those who are already vulnerable and will feel the greatest impact […] public investments in the social security of Canadians, are a logical and essential component of fiscal stimulus at this critical time.”  Read more.

CLICK HERE to send a message to federal finance Minister Jim Flaherty urging him to make social investments and poverty reduction top priorities in the January 27 federal budget. 

Three reasons why Minister Flaherty must put priority on social investments:

1. Social transfers do double duty of protecting Canadians in tough economic times and stimulating local economies – EI reforms, the Canada Child Tax Benefit and the Work Income Tax Benefit cushion the blow for the most vulnerable while putting money into the pockets of those who are most likely to spend it on food, rent and other necessities stimulating their local economies.
2. Investments in social infrastructure create jobs and contribute to strong and supportive communities – investments in building and repairing affordable housing, early learning, child care and education not only create jobs and economic spin-offs, but also bring the most benefit to those  who live on the margins.
3. The cost of poverty is too great: we can make smart investments now to ensure everyone is at their best, or we can pay much more later in remedial expenses.  Poverty costs Canada $38 billion a year due to high unemployment, increased costs of health and social services, policing and criminal justice systems.

Three reasons why general tax cuts don’t make economic sense:

1. Most of the money from tax cuts is not spent in local economies… tax cuts for middle and high income earners ends up in savings or is used to pay down personal debt.  TD Bank economist Craig Alexander points out that of the $100-billion in stimulus cheques issued by the Bush administration last spring,  80 cents from every dollar went into savings accounts, 10 cents into imports, 10 cents into domestic spending
2. Tax cuts erode the government's revenue base taking away our ability to invest in anti-poverty and other initiatives resulting in further cuts to social programs  in order to produce balanced budgets.
3. Income support programs do a better job of benefiting low-income Canadians and local economies… child benefits, work income supplements and employment insurance are efficient vehicles for transferring money into local economies and protecting the living standards of those who have the least  

RELATED LINKS:

Leadership for tough times…The Canadian Centre for Policy Alternatives has released a proposed stimulus package that is good for Canadians and it's smart economics – the spending initiatives outlined in the Alternative Budget Plan provide far more job creating stimulus than across-the-board tax cuts.   More…

The Recession Relief Fund Coalition is pressing the federal government to support essential services to our most vulnerable people. The Coalition has launched a Declaration that also calls for a National Housing Program. To learn more about this initiative or to sign the Recession Relief Fund Declaration cick here. 

Get Real… it’s the economy, make it work for us.  The Canadian Labour Congress has a plan to stimulate the economy and to create and protect jobs, pensions and public services.  Click here to learn more… 

ACORN Action Alert: Support Affordable Housing in the Budget and Stimulus Package. More...

Flaherty must do all he can to throw Canadians a lifeline, say Armine Yalnizyan and David Macdonald in Toronto Star op-ed.  Instead of the usual tax cuts, he should target tax initiatives to social investments where they'll be most effective.  (Jan 10) More...

Come and show your support for a National Poverty Reduction Strategy in the home riding of Finance Minister Jim Flaherty! Let him know that we do care about this issue and his budget should include a serious poverty reduction plan!

Date: Saturday January 17th 2009, 2pm
Location: Whitby Go Train Station
Please carpool or take the GO train. If you need a ride let us know.

We plan on marching peacefully to the Central Library Courtyard 405 Dundas Street West, Whitby, Ontario. The 302 Brock Road bus will be leaving the Go Train station at 2pm and heading towards the library for those who choose not to walk. We will gather to listen to speakers on the issue of poverty in Canada and invite Mr. Flaherty to receive our petitions. We have requested that the petitions be officially introduced into Parliament on January 26th.

Rally endorsed by Campaign 2000, NAPO, CAW,CUPE, OCSJ.

For more information visit povertyplan.ca 

About the Countdown to a Poverty Reduction Plan eBulletins

For more information visit www.25in5.ca