TORONTO - Ontario sits in last place in Canada when it comes to every major social indicator, according to a report from a provincial coalition of labour and community organizations.
The Ontario Common Front released a report Wednesday putting Ontario at the bottom of the pack when it comes to funding and access to most public programs and services — from health care to education and justice to disability benefits.
The report — called "Falling Behind: Ontario's Backslide into Widening Inequality, Growing Poverty and Cuts to Social Programs" — draws on numerous select studies and government statistics from different time periods to come to its conclusions.
PHOTOS: COUNTRIES WITH THE GREATEST INCOME GAP
It blames tax cuts coupled with reductions in social programs for many of the problems it outlines.
"Ontario's budgets for the last 15 years have repeatedly prioritized tax cuts while casting concomitant cuts to social programs as necessities rather than choices," the report states.
"Social programs that benefit all Ontarians and redistribute income through free public services such as education and health care face relentless budget pressure," it says.
The report says the McGuinty government's current austerity budget will worsen the province's record in spite of a Liberal promise to eliminate poverty.
PHOTOS: FINDINGS OF THE BROADBENT INSTITUTE'S STUDY ON INCOME INEQUALITY
Sid Ryan, president of the Ontario Federation of Labour, which is a member of the OCF, said the conclusions of the report were not surprising, but prove the province made what he calls erroneous policy choices.
"Not just the Drummond report and the budget, but before that, the Liberal policies have been driving Ontario to the bottom of the heap when it comes to social programs," Ryan said.
Economist Don Drummond's report earlier this year made 362 recommendations aimed at preventing Ontario from suffering the same economic fate as debt plagued Greece.
Drummond called for bigger class sizes, higher utility bills, fewer hospitals, a public sector wage freeze, and an end to direct subsidies and tax credits for businesses.
More than 90 labour and community organizations in the province form the OCF, backing the report that compiles research into Ontario's standing on poverty, income inequality, out-of-pocket costs for social programs, wait lists for community services and other data.
The report says there is a growing income gap among Ontarians, which Ryan calls one of the most disappointing conclusions of the report.
"It's quite clear right now they are going after the children's programs," said Ryan. "They just abandoned (the poverty reduction) message."
According to the report, between 1981 and 2009, Ontario had the country's second highest increase in the poverty rate. The document cites Statistics Canada data showing the percentage of Ontarians living below the low income measure rising from 9.4 per cent in 1981, to 13.1 per cent in 2009.
The report said Ontario has the worst record on affordable housing. It cited data showing that in January 2011, there were 152,077 households on waiting lists across Ontario for affordable housing, which represented an increase of 7.4 per cent from the previous year.
The report was released a day after teachers' unions rallied at the Ontario legislature to protest controversial legislation from the Liberal government that would freeze wages and cut educators' benefits for at least two years.
The unions said the bill tramples on their collective bargaining rights because it also bans strikes and lockouts. But Premier Dalton McGuinty said the bill was needed to help reduce the province's $15 billion deficit.
COUNTRIES WITH THE GREATEST INCOME GAP
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10. New Zealand
> Gini coefficient: 0.330<br>
> Change in income inequality: +21.8%<br>
> Employment rate: 72.3% (6th highest)<br>
> Change in income of the rich: +2.5% per year<br>
> Change in income of the poor: +1.1% per year
New Zealand performs well by a number of economic indicators, including employment, where it ranks sixth highest out of the 27 OECD countries in the study. Income in New Zealand has increased across the board since the 1980s, but the percentage annual increase among the top decile was more than twice as great as among the bottom decile. Among OECD nations, capital income in New Zealand as a percentage of total household income grew the most for the richest group and decreased substantially for the poorest group.<br>
<a href="http://247wallst.com/2011/12/06/countries-with-biggest-spread-between-rich-and-poor/3/" target="_hplink">Read the entire post at 24/7 Wall St. </a>
9. Australia
> Gini coefficient: 0.336<br>
> Change in income inequality: +8.7%<br>
> Employment rate: 72.4% (5th highest)<br>
> Change in income of the rich: +4.5% per year<br>
> Change in income of the poor: +3% per year
The difference in the annual increase in income between the richest and the poorest in Australia from the mid-1980s to 2008 is one of the largest among all countries in the study. The average annual change in income for the bottom decile was 3%, compared with the top decile's 4.5%. This caused the Gini coefficient to increase 8.7% over those years. Australia has one of the highest minimum wages, as a percentage of average wages, of all the G-20 countries. The country also has a fairly high employment rate.<br>
<a href="http://247wallst.com/2011/12/06/countries-with-biggest-spread-between-rich-and-poor/3/" target="_hplink">Read the entire post at 24/7 Wall St. </a>
8. Italy
> Gini coefficient: 0.337<br>
> Change in income inequality: +9.0%<br>
> Employment rate: 56.9% (3rd lowest)<br>
> Change in income of the rich: +1.1% per year<br>
> Change in income of the poor: +0.2% per year
In Italy, income inequality increased 9% between 1985 and 2008. According to the OECD, earnings for the wealthiest 10% increased an average of 1.1% each year, while earnings for the poorest 10% grew just 0.2% annually. Italy has the third-lowest employment rate among the 27 nations in the study, with just 56.9% of working-age adults holding jobs in 2008. Since 1985, unemployment benefits declined by more than 50% to one of the lowest recipient rates in the OECD.<br>
<a href="http://247wallst.com/2011/12/06/countries-with-biggest-spread-between-rich-and-poor/3/" target="_hplink">Read the entire post at 24/7 Wall St. </a>
7. United Kingdom
> Gini coefficient: 0.345<br>
> Change in income inequality: +7.9%<br>
> Employment rate: 70.3% (10th highest)<br>
> Change in income of the rich: +2.5% per year<br>
> Change in income of the poor: +0.9% per year
The UK had one of the biggest increases in the income gap between the wealthy and the poor over the past two and a half decades. On average, the income of the bottom 10% increased 0.9%, while income for the top 10% grew 2.5% per year. After Israel and Australia, the UK had the third-largest difference between the top decile's annual income increase and the bottom decile's increase. The income ratio of the wealthiest citizens to the poorest citizens is 10 to one.<br>
<a href="http://247wallst.com/2011/12/06/countries-with-biggest-spread-between-rich-and-poor/3/" target="_hplink">Read the entire post at 24/7 Wall St. </a>
6. Portugal
> Gini coefficient: 0.353<br>
> Change in income inequality: n/a<br>
> Employment rate: 65.6% (14th highest)<br>
> Change in income of the rich: +1.1% per year<br>
> Change in income of the poor: +3.6% per year
Despite its high Gini coefficient, Portugal's income inequality has been improving. From the mid-1980s to the late 2000s, the incomes of the country's poorest increased an average 3.6% each year. The incomes of the richest grew only 1.1% annually. The country has increased its efforts to redistribute income since the mid-1980s, such as through benefits for the unemployed.<br>
<a href="http://247wallst.com/2011/12/06/countries-with-biggest-spread-between-rich-and-poor/3/" target="_hplink">Read the entire post at 24/7 Wall St. </a>
5. Israel
> Gini coefficient: 0.371<br>
> Change in income inequality: +13.8%<br>
> Employment rate: 60.2% (7th lowest)<br>
> Change in income of the rich: +2.4% per year<br>
> Change in income of the poor: -1.1% per year
In Israel, the average income of the bottom 10% actually decreased between 1985 and 2008. On average, income of the top 10% increased 2.4% per year. During the same period, income of the poorest 10% declined 1.1% each year -- the worst rate of decline among the 27 nations studied. Only one other country, Japan, saw its bottom decile's income fall as well. According to the OECD, the top 10% of Israel's residents make 14 times more than the poorest 10%.<br>
<a href="http://247wallst.com/2011/12/06/countries-with-biggest-spread-between-rich-and-poor/3/" target="_hplink">Read the entire post at 24/7 Wall St. </a>
4. United States
> Gini coefficient: 0.378<br>
> Change in income inequality: +12.1%<br>
> Employment rate: 66.7% (13th highest)<br>
> Change in income of the rich: +1.9% per year<br>
> Change in income of the poor: +0.5% per year
Inequality in the United States increased significantly from 1985 to 2008, putting it in the fourth-worst spot in the study. As with many other countries in which income inequality has increased, average income has gone up across all income groups since the mid-1980s, but not equally. The income of the wealthiest 10% has greatly outpaced the poorest 10%. The share enjoyed by the top 0.1% in total pretax income quadrupled in the 30 years to 2008.<br>
<a href="http://247wallst.com/2011/12/06/countries-with-biggest-spread-between-rich-and-poor/3/" target="_hplink">Read the entire post at 24/7 Wall St. </a>
3. Turkey
> Gini coefficient: 0.409<br>
> Change in income inequality: -5.8%<br>
> Employment rate: 46.3% (the lowest)<br>
> Change in income of the rich: +0.1% per year<br>
> Change in income of the poor: +0.8% per year
Turkey was one of the few OECD countries to experience a narrowing of the gap between rich and poor, with income inequality improving 5.8% between 1985 and 2008. However, it still has the third-highest income inequality among the countries in this study. Part of Turkey's problem is a relatively low number of government programs to aid the poorest citizens. The average government social expenditure among OECD nations is close to 20% of GDP, while it spends just above 10% -- the third-lowest percentage. The wealthiest 10% of Turkey's residents make 14 times more, on average, than the poorest 10%.<br>
<a href="http://247wallst.com/2011/12/06/countries-with-biggest-spread-between-rich-and-poor/3/" target="_hplink">Read the entire post at 24/7 Wall St. </a>
2. Mexico
> Gini coefficient: 0.476<br>
> Change in income inequality: +5.1%<br>
> Employment rate: 60.4% (8th lowest)<br>
> Change in income of the rich: +1.7% per year<br>
> Change in income of the poor: +0.8% per year
Mexico has one of the highest rates of income inequality. Among all OECD countries, Mexico has the lowest amount of public social expenditure as a percentage of GDP. It also has the lowest unemployment benefit recipient rates. Finally, the country has the lowest minimum wages as a percentage of average wages.<br>
<a href="http://247wallst.com/2011/12/06/countries-with-biggest-spread-between-rich-and-poor/3/" target="_hplink">Read the entire post at 24/7 Wall St. </a>
1. Chile
> Gini coefficient: 0.494<br>
> Change in income inequality: n/a<br>
> Employment rate: 59.3% (4th lowest)<br>
> Change in income of the rich: +1.2% per year<br>
> Change in income of the poor: +2.4% per year
Chile is one of the few countries where the income of the poor increased at a higher annual rate than the income of the wealthy, 2.4% to 1.2%. Nevertheless, the South American nation has the worst income inequality among the 27 OECD nations examined. Chile has a particularly high rate of self-employed individuals, primarily because of its large farming class. The income ratio of the top 10% to the bottom 10% is 27 to one.<br>
<a href="http://247wallst.com/2011/12/06/countries-with-biggest-spread-between-rich-and-poor/3/" target="_hplink">Read the entire post at 24/7 Wall St. </a>
FINDINGS OF THE BROADBENT INSTITUTE'S STUDY ON INCOME INEQUALITY
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Source: <a href="http://www.broadbentinstitute.ca/sites/default/files/uploaded-manually/equality-project.pdf" target="_hplink">Broadbent Institute</a>
Source: <a href="http://www.broadbentinstitute.ca/sites/default/files/uploaded-manually/equality-project.pdf" target="_hplink">Broadbent Institute</a>
Source: <a href="http://www.broadbentinstitute.ca/sites/default/files/uploaded-manually/equality-project.pdf" target="_hplink">Broadbent Institute</a>
Source: <a href="http://www.broadbentinstitute.ca/sites/default/files/uploaded-manually/equality-project.pdf" target="_hplink">Broadbent Institute</a>
Source: <a href="http://www.broadbentinstitute.ca/sites/default/files/uploaded-manually/equality-project.pdf" target="_hplink">Broadbent Institute</a>
Source: <a href="http://www.broadbentinstitute.ca/sites/default/files/uploaded-manually/equality-project.pdf" target="_hplink">Broadbent Institute</a>
Source: <a href="http://www.broadbentinstitute.ca/sites/default/files/uploaded-manually/equality-project.pdf" target="_hplink">Broadbent Institute</a>
Source: <a href="http://www.broadbentinstitute.ca/sites/default/files/uploaded-manually/equality-project.pdf" target="_hplink">Broadbent Institute</a>
CP | By Gustavo Vieira, The Canadian Press Posted: 08/29/2012 9:48 am Updated: 08/29/2012 5:31 pm