Canadian Welfare System Analysis

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The welfare system that exists in Canada today is meant to ease the financial burden on the country’s lowest earning citizens. There exist, however, many negative stigmas surrounding the welfare system including the belief that recipients of the system are lazy freeloaders—people who are able to work, but choose not to in order to continue receiving welfare. In reality, as much as the welfare system is intended to benefit the poorest members of society, combined with the personal income tax schedule, it makes it less affordable for the poor to find work. The economic strain that transitioning from receiving welfare to having employment and paying positive taxes is known as the welfare wall and it exists as a result of the system itself. As…show more content…
The projects include a new child benefits plan that differs from its predecessor in that monthly payments continue even after the family stops receiving welfare. Another program the government is initiating is a decrease in subsidized child care fees. In addition to this decrease, the income parents can earn before disqualifying for the subsidy will increase by 13%. Another key aspect of the law is to grant welfare recipients up to $1200.00 per year to spend on work clothes and transportation. In addition to the immediate changes to legislation, the program also includes a four year plan to introduce non-insured health benefits such as dental and eye care to not only welfare recipients, but also to those people who make the transition from welfare to employment. Overall, the aim of the new multimillion dollar project is to make it more lucrative for Manitobans to be working than to be on…show more content…
There are many other costs associated to working including child daycare and the added transportation and clothing expenses. Moreover, many welfare recipients also receive additional medical care plans that are seldom provided to low earning employees. All these considerations make leaving welfare an insurmountable obstacle for many, hence the name welfare wall. For this reason, programs such as Rewarding Work are very necessary. The program tries to deal with the welfare wall by reducing the disincentives of working compared to being on welfare. Providing affordable childcare, transportation, clothing, and medical coverage reduces some of the hidden opportunity costs of returning to work. Another important aspect of the legislation is that it eases the transition from being on welfare to earning wages by increasing the maximum wage a person can earn before he or she starts losing benefits such as child subsidies. As a result, people will have more of an incentive to return to work, or at the very least, less of a
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