New Study Shows 6 Million Canadians Living in Poverty, Revealing Greater Need Than Previously Believed
A recent report has uncovered a hidden layer of poverty in Canada, revealing that a quarter of Canadians are struggling to purchase two or more essential household items.
Instead of relying on the Market Basket Measure (MBM) to assess household poverty, authors Michael Mendelson, Geranda Notten, Richard Mattern, and Sofia Seer utilized a material deprivation index (MDI). Their findings indicated that 25% of Canadians are living in poverty, which is six million more than the poverty rate identified by Statistics Canada.
The MBM test calculates the income needed for a family of four to afford a set “basket” of goods and services. If a family falls below this threshold, they are considered poor. In contrast, the authors of the MDI report compiled a list of 11 items as a deprivation index. They surveyed 4,625 Canadians to gauge their ability to afford these items, which ranged from clothing and transportation to a nutritious diet and adequate home heating.
According to the authors, the more deprivation items a household desires but cannot afford, the more likely they are to have a poverty-level standard of living.
The MDI metrics revealed that 30% of Canadians aged 18-30 and 44.5% of single-parent families cannot afford two or more essential household items.
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Beardsley expressed the organization’s desire for the Canadian government to incorporate the MDI into their poverty measurements for a clearer view of poverty in the country.
The study was initiated in response to an increase in food bank visits during the COVID-19 pandemic, as well as surveys indicating a significant proportion of households were living at or below the poverty line based on the MDI rather than the MBM.
Concluding their report, the authors proposed that the government utilize both income-based poverty lines and MDIs to gain a more comprehensive and accurate understanding of poverty in Canada.
