A new study out of Ottawa pegs the cost of poverty in Canada at more than $24 billion every year and it also reflects the impact poverty has in New Brunswick.
The study figures are based on the costs from lost productivity, to the costs of health care and crime. A similar study was conducted by the Common Front for Social Justice and the Canadian Centre for Policy Alternatives, and they found that poverty is costing New Brunswickers more than $2 billion every year.
Co-author of the report, Christine Saulnier, says there are more than 146 thousand New Brunswickers living below the low income threshold of $19,495 a year and they’re costing tax payers about $2 billion annually.
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One of the highest costs she says is the impact poverty has on the health care system
“That number is $200 million in additional costs, for people who are using the health care system, because they’re living in poverty.”
“There’s hidden costs that you don’t think about,” says Executive Director of the Fredericton homeless shelter, Shelly Robarts, “so when they came back and said those numbers, didn’t surprise me one bit, not a bit.”
About 20 thousand New Brunswickers are using food banks and soup kitchens every month.
George Piers, the former president of the New Brunswick Food Banks Association, says to reduce poverty the government should invest in subsidized housing
“if you’re not on subsidized housing, you’re spending probably $400 out of the $550 dollar cheque just simply to rent a room to try to live in so that doesn’t leave much to buy food.”
A spokesperson with the department of social development says the minister won’t comment before reviewing the report.
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