Poverty in Canada

Raj S. Gandhi is a sociology professor at the University of Calgary.

Sociologists have long tried to understand the paradox of poverty in
Canada in the midst of affluence. This book is a provocative challenge
to current approaches to defining and measuring poverty. It argues that
prevailing estimates greatly exaggerate the number of poor; that
Statistics Canada’s low-income cutoff (the standard tool used in
virtually all studies measuring poverty) is badly flawed; and that
social assistance, in almost all cases, adequately covers basic-needs.
Sarlo’s approach to defining and measuring poverty is based on the
cost of necessities. He argues persuasively that this basic needs
approach provides a more relevant and useful distinction between poor
and nonpoor, and permits legitimate international comparisons.

The book is divided in 11 chapters and includes an excellent appendix
entitled “The Myth of Inequality.” Scattered throughout are some 48
statistical tables on expenditures for numerous budget items such as
food, shelter, and transportation; the profiles of Canada’s poor in
1988 by family characteristics, including age, education, employment,
and gender; and the classification of welfare recipients by income and
different family types. Sarlo also discusses changes in the meaning and
measurement of poverty over the years, which makes the reader more aware
of relative (as opposed to absolute) standards of poverty. While
Sarlo’s interpretation is interesting, he does not successfully
explain why some poor must remain poor.