Income

Older Canadians' savings are shaped by their long-term care preferences

Retrieved on: 
Sunday, September 17, 2023

This demographic shift is happening in most developed nations, and will result in a greater demand for long-term care.

Key Points: 
  • This demographic shift is happening in most developed nations, and will result in a greater demand for long-term care.
  • Québec, for instance, anticipates that 600,000 people will need long-term care by 2050 — nearly double the current number.

The costs of long-term care

    • The costs of private nursing homes are estimated to be between $5,000 and $8,000 a month.
    • Home care — a preferred option for many — costs around $5,550 a month, excluding additional expenses like maintenance and food.
    • While both nursing homes and home care impose financial burdens, their distinct cost structures can influence precautionary savings in different ways.

Long-term care and savings

    • Survey respondents were randomly assigned to different long-term care settings (home care, semi-private room in a nursing home or a private room in a nursing home).
    • Their resource allocation choices allowed us to examine how their preferences for savings varied based on the type of long-term care setting.
    • This willingness to save was much larger when respondents expected to use home care; respondents anticipating home care allocated 38 per cent more resources to savings.

Long-term care insurance

    • Differences in individual preferences for various care settings largely explain the savings disparities.
    • In the Canada-like system, the prospect of receiving long-term care at home substantially boosts savings.
    • Under the U.S.-like system, the impacts on savings of different care settings were much smaller.
    • When comparing the savings of individuals opting for home care versus a private room in a nursing home, the difference in savings was almost null.

Policy implications

    • Our research found that all subsidies are valued well beyond costs, with home care subsidies being more valued than nursing home subsidies.
    • Middle-income individuals who aren’t eligible for means-tested programs, but who have limited savings, placed the highest value on these subsidies.
    • This shows that expanding subsidies for home care can be an effective way to protect Canadians from long-term care risks.

We gave $7,500 to people experiencing homelessness — here's what happened next

Retrieved on: 
Sunday, September 17, 2023

Individuals experiencing homelessness are heavily stigmatized, dehumanized and perceived to be less competent and trustworthy.

Key Points: 
  • Individuals experiencing homelessness are heavily stigmatized, dehumanized and perceived to be less competent and trustworthy.
  • A 2020 count by the BC Non-Profit Housing Association in Metro Vancouver found there were 3,634 people experiencing homelessness; among them, 1,029 unsheltered and 2,605 sheltered.
  • Present approaches are failing, as evidenced by the rapidly increasing number of people experiencing homelessness.

Trying something new

    • We gave a one-time cash transfer of $7,500 to people experiencing homelessness in Vancouver.
    • This lump sum, equivalent to the 2016 annual income assistance in British Columbia, provided people the financial freedom to pay rent and meet other living costs.
    • The cash transfer also represented a dignified way to empower people to escape homelessness.

Our participants

    • The 50 participants in the cash group were informed about the cash transfer only after completing the baseline survey.
    • We lost contact with around 30 per cent of participants during this time while some relocated away from Vancouver.
    • The workshop consisted of a series of exercises to help participants brainstorm ways to regain stability in their lives.
    • Coaching consisted of phone calls with a certified coach trained to help participants achieve their life goals.

What we found

    • That means the cash transfers actually saved the government and taxpayers money.
    • Cash recipients increased spending on rent, food, transit and things like furniture or a car.
    • That challenges the stereotype that people in homelessness would squander money they receive on alcohol and drugs.
    • However, around 50 per cent of participants in our study moved into housing just one month after the cash transfer.
    • But despite that, they were still below the poverty line and nowhere close to meeting the living costs in Vancouver.

Drop the talk about 'mum and dad' landlords. It lets property investors off the hook

Retrieved on: 
Saturday, September 16, 2023

Hardly a day passes without talk of “mum and dad” property investors.

Key Points: 
  • Hardly a day passes without talk of “mum and dad” property investors.
  • It’s media shorthand for a rental market dominated by small operators rather than big institutions.
  • But language shapes the way we think, and folksy terminology creates a false impression of Australia’s landlord class.

Landlords are typically better off

    • Or Victorian Property Council boss Cath Evans, rejecting rent control because “mum and dad investors” are struggling to get by on the income they get from tenants.
    • More than a third of benefits go to about 500,000 landlords in the top 10% of income earners.
    • True, there are also about 200,000 landlords in the bottom 10% of income earners, but that doesn’t necessarily mean they’re poor.
    • It’s no surprise cardiologists and politicians are more likely than school teachers and police officers to be landlords.

Who owns most rental properties?

    • This year it has cropped up in a Guardian explainer, an Age backgrounder and in at least two Conversation articles.
    • The ABC recently released What broke the rental market?
    • In 2021-22, about 1.6 million individuals, or about 70% of all landlords, declared a rental interest in a single property.
    • It’s common to conflate “most investors own only one rental property” with “most rental properties are owned by landlords with just one investment” and pointing out the error might seem pedantic.

Landlords must be held to account

    • Not every property investor is rich, and some landlords are on moderate incomes.
    • And plenty of decent landlords do right by their tenants.
    • But we should avoid language that portrays landlords as folk of modest means when most are well-off.
    • Landlords engage in a business activity with profound impacts on the lives of others.

Ontario needs to remove barriers to child-care subsidies for low-income families

Retrieved on: 
Saturday, September 16, 2023

The government of Ontario has projected significant increases in demand for child care as a result of lower fees.

Key Points: 
  • The government of Ontario has projected significant increases in demand for child care as a result of lower fees.
  • In these early days, we are not aware of evidence of this happening, but anecdotally this seems to be the case.
  • To prevent this, Ontario, and indeed all provinces, need to double down on removing barriers to child-care subsidies for low-income families.

Lower-income families have less access

    • In Canada, many children spend a significant part of their day in early learning and child care, whether in centres or home-based settings.
    • With the introduction of new child care agreements across Canada, all families are eligible for substantial fee reduction.

$10 a day is a hardship for many

    • Before the federal government announced the introduction of Canada-wide early learning and care agreements, most parents who received a child-care subsidy in Toronto paid well below $10 per day.
    • Since their fee contribution was set based on financial eligibility criteria, this means that $10 per day would be a hardship for many of these families.

Complicating factors

    • Wait lists for child care can be long, with some parents having to get in line even before their child is born.
    • One complicating factor is that parents find it hard to evaluate the quality of care their children receive, with many being unaware of whether it is licensed or not.

Disadvantages compounded

    • It is concerning that children from lower-income families are less likely to have access to any form of licensed care.
    • Low-income families tend to have limited knowledge of the child-care sector and tend to live in neighbourhoods with fewer child-care spaces per child.

Remove work/study requirements

    • To address this inequity, all work/study requirements for fee subsidies should be removed.
    • However, for vulnerable and marginalized groups, access to early learning and child care remains uncertain.
    • Samantha Burns receives funding from the Social Sciences and Humanities Research Council and The Nova Scotia Department of Education and Early Childhood Development.

Bidenomics: why it's more likely to win the 2024 election than many people think

Retrieved on: 
Saturday, September 16, 2023

During an address in Maryland, the president contrasted Bidenomics with Trumpian “MAGAnomics” that would involve tax-cutting and spending reductions.

Key Points: 
  • During an address in Maryland, the president contrasted Bidenomics with Trumpian “MAGAnomics” that would involve tax-cutting and spending reductions.
  • He decried trickle-down policies that had, “shipped jobs overseas, hollowed out communities and produced soaring deficits”.
  • Changing voters’ minds about the economy is one of Biden’s biggest challenges ahead of the 2024 election.
  • Even 60% of Democratic and Democratic-leaning respondents were “seriously” concerned he would lose in 2024.

What is Bidenomics?

    • His answer, repeated in his Maryland speech, is to grow the economy “from the middle out and the bottom up”.
    • To this end, Bidenomics is centred on three key pillars: smarter public investment, growing the middle class and promoting competition.
    • On investment, Biden’s approach fundamentally challenges the argument by the right that increasing public investment “crowds out” more efficient private investment.
    • Bidenomics argues that targeted public investment will unlock private investment, delivering well paid jobs and growth.

The results so far

    • Over 13 million new jobs have been created, though much of this can be perhaps attributed to workers resuming employment after COVID.
    • Total US jobs The IMF predicts the US economy will grow 1.8% in 2023, the strongest among the G7.
    • The US also has the group’s lowest inflation rate, although it rose in August.
    • On the closely watched core-inflation metric, which excludes food and energy, the US is mid-table, though improving.
    • One consolation to the Democrats is that voters’ gloom is partly related to interest rates, which are probably close to peaking.

Concrete in schools: how missing data and poor funding contributed to today's closures

Retrieved on: 
Wednesday, September 6, 2023

A hasty autumn budget included additional revenue funds for schools, coming as a relief to many school leaders.

Key Points: 
  • A hasty autumn budget included additional revenue funds for schools, coming as a relief to many school leaders.
  • Twelve months later the chancellor, Jeremy Hunt, is under pressure to dig deep into his coffers again.
  • Usually, discussions of school funding focus on revenue funding, which is related to pupil numbers and pays for salaries and other running costs.

Knowledge gaps

    • The fact that schools are in disrepair is not news – it has been the case for many years.
    • But it has not been addressed for two fundamental reasons: lack of data and lack of funding.
    • But its findings do little to convey the detailed knowledge that would be needed to plan a strategic, school-by-school refurbishment and rebuilding programme.
    • The government says that recent cases of crumbling concrete led to a “loss of confidence”, resulting in hurried orders to vacate affected buildings.

Lack of funding

    • The incoming coalition government, however, felt that money was not being targeted appropriately, and that much was being lost in bureaucracy.
    • Thirteen of the schools with Raac were approved for rebuilding under Building Schools for the Future, but had their funding withdrawn when the scheme was scrapped.
    • The coalition government announced the Priority School Building Programme in 2011 to address the most urgent repair and rebuild needs, but it has seen funding fall to well below the amount needed for the job.
    • A chronic shortfall of both capital funding and system knowledge cannot be allowed to put the education – and lives – of children at risk.

Not religious, not voting? The 'nones' are a powerful force in politics – but not yet a coalition

Retrieved on: 
Wednesday, September 6, 2023

Today the so-called “nones” represent about 30% of Democrats and 12% of Republicans – and they are making their voices heard.

Key Points: 
  • Today the so-called “nones” represent about 30% of Democrats and 12% of Republicans – and they are making their voices heard.
  • Organizations lobby on behalf of atheists, agnostics, secular humanists and other nonreligious people.
  • By combining all unaffiliated people as “the nones,” researchers and political analysts risk missing key details about this large and diverse constituency.

Crunching the numbers

    • The CES collects large surveys and then matches individual respondents in those surveys to validated voter turnout records.
    • For example, according to these survey samples, overall validated voter turnout looked higher in many groups, not just the unaffiliated, than exit polls suggested.
    • People who identified as atheists and agnostics were more likely to vote than religiously affiliated respondents, especially in more recent elections.

2024 and beyond

    • The political left also boasts a diverse coalition of religious groups, and there are many Republican voters for whom religion is not important.
    • My research shows that neither party can take the unaffiliated for granted nor treat them as a single, unified group.
    • Today, though, motivating and empowering voters might mean looking across a broader set of community institutions to find them.

Rethinking assumptions

    • According to my research, it was actually unaffiliated respondents who reported still attending religious services who were least likely to vote.
    • Their turnout rates were lower than both frequently attending religious affiliates and unaffiliated people who never attended.
    • Sociologists Jacqui Frost and Penny Edgell, for example, found a similar pattern in volunteering among religiously unaffiliated respondents.

Traditional medicine provides health care to many around the globe – the WHO is trying to make it safer and more standardized

Retrieved on: 
Wednesday, September 6, 2023

Instead, the first step is consulting traditional medicine, which cultures around the world have been using for thousands of years.

Key Points: 
  • Instead, the first step is consulting traditional medicine, which cultures around the world have been using for thousands of years.
  • Traditional medicine encompasses the healing knowledge, skills and practices used by a variety of cultures and groups.
  • In recognizing that traditional medicine and other alternative forms of healing are critical sources of health care for many people worldwide, the World Health Organization and the government of India co-hosted their first-ever Traditional Medicine Summit.

Critical health care for many

    • In many countries, traditional medicine costs less and is more accessible than conventional health care.
    • And many conventional medicines come from the same source as compounds used in traditional medicine – up to 50% of drugs have a natural product root, like aspirin.

A framework for traditional medicine

    • In the past, WHO has developed a “traditional medicine strategy” to help member states research, integrate and regulate traditional medicine in their national health systems.
    • The WHO also created international terminology standards for practicing various forms of traditional medicine.
    • The practice of traditional medicine varies greatly between countries, depending on how accessible it is and how culturally important it is in each country.

Acupuncture – a case study in safety and efficacy

    • But leaders at the summit emphasized a need for more research on the efficacy and safety of traditional medicine.
    • For example, acupuncture is a traditional healing practice that entails inserting needles at specific points on the body to relieve pain.
    • Still, acupuncture is the most commonly used traditional medicine practice across countries, with 113 WHO member states acknowledging their citizens practiced acupuncture in 2019.
    • There’s also some evidence supporting the use of traditional medicine, including acupuncture, meditation and yoga to treat post-traumatic stress disorder.

We're in a per capita recession as Chalmers says GDP 'steady in the face of pressure'

Retrieved on: 
Wednesday, September 6, 2023

If growth continued at that pace for another two quarters, the annual growth rate would barely reach 1.6%, an alarmingly low figure that.

Key Points: 
  • If growth continued at that pace for another two quarters, the annual growth rate would barely reach 1.6%, an alarmingly low figure that.
  • The driving force behind this tepid growth is primarily weak household consumption which grew by only 0.1% in the quarter – far less than Australia’s population.
  • Households, grappling with the increased cost of essential expenses such as fuel and rent, have resorted to cutting down on savings.
  • In the three months to June Australia’s household saving ratio plummeted to 3.2%, its lowest rate in 15 years.