POVERTY AMIDST RECORD PROFITS

(The following article is from the January 1-15, 2008 issue of People's Voice, Canada's leading communist newspaper. Articles can be reprinted free if the source is credited. Subscription rates in Canada: $25/year, or $12 low income rate; for U.S. readers - $25 US per year; other overseas readers - $25 US or $35 CDN per year. Send to: People's Voice, c/o PV Business Manager, 133 Herkimer St. Unit 502, Hamilton, ON, L8P 2H3.

People's Voice Editorial, Jan. 1-15, 2008

The year 2007 ends with news that should make every working person see red - rising poverty rates even while corporate profits keep going through the roof.

     According to the latest reports, provincial welfare rates are lower now in real terms than they were in 1986, forcing 720,230 Canadians to use food banks in 2007, including 280,900 children. Despite a booming economy, British Columbia reports the highest provincial child poverty rate at 15.2%. Even in Alberta, 64,000 children live in poverty, as do another 345,000 in Ontario, the largest province. Among recent immigrant families, 49% of children live in poverty. The figure is 28% for First Nations children, 34% for children in racialized families, 28% for children with disabilities. The average low income family survives with $9-11,000 less than Statistics Canada's Low Income Cut-off.

     But wealthy shareholders certainly aren't suffering. Pre-tax corporate profits hit $213.7 billion during the third quarter of 2007, up from $201.9 billion in the same period of 2006. That's almost $100 million in profits every single hour of the day!

     Among the biggest winners were Canada's six biggest banks, which reported 2007 profits totalling a record $19.5 billion. Three of the six banks reported their best-ever annual earnings, despite some big writedowns related to the subprime mortgage crisis in the United States. Service fees (largely gouged from working class and poor families) make up about five percent of total annual bank revenues, totalling $3.7 billion in 2007. That would sure buy a lot of hot meals and new homes for Canada's poverty-stricken children!


Found at: http://www.peoplesvoice.ca/articleprint09/POVERTY_AMIDST_RECORD_PROFITS.html



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