Due to inflation, which has reached levels not seen in several decades, poor Canadians are increasingly turning to community organizations for food aid.
The Community Food Center in Stratford, Ontario, reports that the number of people using its services has doubled. Its products, purchased at local markets, are less expensive than those sold in grocery stores. According to the center, people are spending twice as much as a few months ago.
“You see people who have never come here before,” says Derek Barnes, the manager of the center. And people who come here for the first time say the prices may be too high for them. »
Food prices have climbed 8.8% over the past year. This situation worries many experts and community groups.
The inflation rate was 8.1% in June, its highest since 1983. By comparison, hourly wages rose only 5.2%.
Barnes says now is the time for governments to make sure families’ incomes are high enough that they don’t depend on food banks.
“We don’t want people in our community to just survive. We want them to flourish, ”he says.
Valerie Tarasuk, a food science professor, says food insecurity will get worse due to inflation.
“We must take care of the incomes of those who suffer from food insecurity, summarizes the PD Tarasuk. Charities cannot deal with this problem in any way. »
Such measures should be reserved for Canada with fixed or low incomes, she adds.
Most provincial governments do not index social assistance benefits. If the federal government does this for its programs, it will take some time before the checks sent to recipients reflect this.
The NDP has called on the federal government to act now by doubling the GST tax credit and increasing Canada child benefit benefits by $500. The party argues that this aid could be financed by increasing the taxation of corporations which have seen their profits soar during the pandemic.
The Liberal government rejected the idea.
The former parliamentary budget officer, Kevin Page, points out that the last federal budget contained substantial increases in some aid programs, but it was passed before inflation peaked.
Mr. Page believes that pressure will increase on the federal government to come to the aid of the most disadvantaged.
“Providing temporary relief to vulnerable people in times of inflation, I believe politicians cannot turn their backs on that. They shouldn’t,” he said.
Mr. Page thinks that well-targeted measures, such as the increase in the tax credit for the GST, could be appropriate. However, elected officials must be careful and “not go beyond that”.
But Randall Bartlett, a Desjardins economist, warned against additional transfer payments, said it could fuel inflation.
“Transfers to low-income households are the most inflationary types of transfers, as they are then spent on spending,” he says. This is why governments rely on this kind of measure to stimulate the economy during a recession. »
Bartlett would prefer the government to stick to its budgeted plan. “This would provide certainty to the Bank of Canada on the government’s fiscal policy while providing assistance to vulnerable Canadians. »