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Inflation: Half of Canadians' finances worse than last year – CTV News

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As inflation rates soar to the highest they’ve been in Canada in forty years, nearly half of Canadians say that right now, they’re doing worse financially than they were at this time last year.

A further third say they expect things to get even worse in the coming year, the largest number of people to answer this way in more than a decade.

The numbers come from a new Angus Reid Institute (ARI) survey released Friday, which surveyed more than 5,000 Canadian adults between June 7 and June 13 on their financial standing and struggles.

The results shed light on the plight Canadians are facing coast to coast.

Currently, inflation is at a staggering 7.7 per cent higher than last year, according to Statistics Canada. The inflation rate hasn’t been this high since 1983, the year that Canada Day replaced Dominion Day.

TRENDING DOWN

The percentage of Canadians answering that they are worse off financially now than a year ago has been increasing steadily over the last few years. In 2018, only 29 per cent of Canadians said they were doing worse than the previous year. That number climbed to 32 per cent in the first quarter of 2020, then to 45 per cent in the second quarter of 2022.

It’s now the highest that it has been since ARI started tracking this specific question in 2010.

At the same time, the number of Canadians who said they were doing the same as a year ago plummeted, going from 54 per cent in 2018, to 44 per cent in 2020, to 36 per cent in the second quarter of 2022.

Interestingly, the percentage of Canadians who say they are doing better than the previous year jumped to 23 per cent in 2020, after years of hovering around 13-14 per cent. That number is now at 17 per cent.

When these results are broken down into the household income of the respondents, those who are in the upper echelons of income, making more than $200,000 annually, were much more likely to report that they were doing better than last year financially, at 26 per cent, and the least likely to report that they were doing worse, at 30 per cent.

On the other end of the scale, those making less than $25,000 per year were more likely to say they were worse off this year, at 51 per cent, and less likely to say they were doing better than last year, at 15 per cent — underlining how the rich are hurt less by shifts such as inflation, and the poor keep getting poorer as rising costs hit their wallets.

Only one in five Canadians said they expected things to improve a year from now, while a third anticipated things to get even worse.

“Residents in Saskatchewan voice the most pessimism and least optimism on this question,” the report stated.

COST OF LIVING IS EXORBITANT FOR MANY

Concerns about the cost of simply living is the one that consumes the time and energy of most Canadians, with food, housing and bills driving a huge amount of financial worries across the country.

When asked what the top provincial issues were, with respondents being able to choose up to three options, “cost of living/inflation” was overwhelmingly the most popular selection, with 63 per cent of respondents selecting it as a major issue.

Health care and housing affordability took second and third place at 52 per cent and 31 per cent respectively, with climate change and the environment coming in at fourth with 26 per cent.

“Some regions of the country are under more economic stress than others,” the report stated. “In Atlantic Canada, the cost of living was already higher than most other parts of the country last year. And Newfoundland and Labrador, Nova Scotia, and New Brunswick have experienced higher rates of inflation than other provinces, alongside Manitoba and British Columbia.”

When it comes to the country as a whole, more than half of those who rented said that it’s difficult to afford their rent.

For homeowners, monthly mortgage payments are on the rise after a series of interest rate increase by the Bank of Canada. One quarter of Canadians with a mortgage say prices have already gone up, while another half said they anticipate a price jump. Two thirds say that if their payments increased by $300 a month, they might not be able to afford it anymore.

“The challenge for many, as pandemic-era supports are removed, and some struggle with repayment of the CERB they received, is to avoid debt creation,” the report stated, noting that many Canadians are already struggling with debt.

Two in five Canadians said they had credit card debt.

Of those who scored high on the ARI Economic Stress Index and were classified as “struggling” on that index, 62 per cent had credit card debt, and three-in-five of this group said it would take them more than a year to pay it off.

The Economic Stress Index, created in January, looks at core costs related to quality of life, such as debt, housing and household food costs, as well as the respondents’ anxieties and assessments of their own finances, to map out who is having a harder time.

There are four categories: struggling, uncomfortable, comfortable, and thriving. The proportion of those who are “thriving” has dropped six points since May, while the number of those who “struggling” has risen three points in that time period. Some good news is that 29 per cent of Canadians fit into the “comfortable” category compared to 26 per cent in May.

“A majority in each of the Atlantic provinces fall under the Struggling or Uncomfortable categories,” the report stated, with 55 per cent in Nova Scotia and 64 per cent in Newfoundland and Labrador falling into one of these two categories.

Across the country, in most provinces, more than half of the respondents fell into the one of the bottom two categories, with 64 per cent in Newfoundland and Labrador, 59 per cent in Alberta, 62 per cent in Saskatchewan, 57 per cent in Manitoba, 55 per cent in Nova Scotia and 54 per cent in Ontario. Prince Edward Island was not included in the survey.

“Only in Quebec (61 per cent) and B.C. (52 per cent) do more than half fall into the top two categories on the ESI,” the report stated. “Notably, by Statistic Canada’s CPI, those provinces have the lowest cost of living of any province in the country.”

The province with the single highest percentage of Canadian respondents deemed to be “thriving” was Quebec, with a whopping 30 per cent.

Just over 75 per cent of Canadians said their province had done a poor job of handling inflation.

Around one in three Canadians said their costs due to purchasing gas had increased, while just under half stated that those costs had gone down for them because they were consciously avoiding driving and seeking out other forms of transportation to save money.

FOOD PRICES LEAVING SOME HUNGRY

The report noted that inflation affects some goods more harshly than others.

“Food inflation was 10 per cent in May, higher than the 7.7 per cent inflation rate overall,” the report said.

Just over half of Canadians surveyed reported struggling to make the grocery bill each month, with the report noting that this is seven points higher than last October.

And the lower your tax bracket, the harder it is to put food on the table. Seven out of ten Canadians making less than $25,000 a year said it is difficult to feed themselves and their family, while at least one third of all incomes reported finding it hard to budget for food.

One B.C. resident told The Canadian Press that her grocery bill has more than doubled. Food Banks Canada are concerned that more and more children — who make up a third of those who rely on food banks — could be going hungry this summer as school ends and access to school-based food programs is cut off.

Earlier this month, NDP leader Jagmeet Singh called out MPs for laughing in the House of Commons after he spoke about Canadians being unable to afford groceries. In a video Singh posted of the incident, laughter can be heard after he states that one in four Canadians are going hungry.

“I just mentioned that Canadians are hungry and I hear laughter in the chambers,” Singh said after the Speaker asked him to repeat himself. “They should be ashamed of themselves. Absolutely ashamed.” He stated on social media that those who were laughing were Conservative MPs.

TRUST IN INSTITUTIONS

Amid rising inflation, the Bank of Canada is meant to keep the impact on Canadians to a minimum through policy adjustments, but Canadian trust in this institution is split, according to the survey. While 46 per cent said they trusted the Bank of Canada, 41 per cent said they did not.

When the political leanings of survey respondents were taken into account, the results became more stark: Past supporters of the Conservative party and the People’s Party of Canada were less likely to trust the Bank of Canada, with 59 per cent and 86 per cent indicating this respectively.

The Bank of Canada has admitted that it made missteps, and is now playing catch-up as Canada’s economy overheats.

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Little change to Vancouver downtown street encampment as residents wonder where to go

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VANCOUVER — It was difficult to see any difference had been made to the tent encampment in Vancouver’s troubled Downtown Eastside on Wednesday, a day after city staff began what’s expected to be a weeks-long process to remove the structures.

That’s for good reason, said a resident who goes by the name Edith Elizabeth — the people who live in the tents have nowhere else to go.

She said previously, residents would relocate their structures nearby so city staff could clean the street.

“It’s just like, ‘Okay, cool, take down our structures and move down the block so they can wash it,’ and that’s it,” said Elizabeth. “But here, now, it’s just like we have to disappear or something.”

Vancouver fire Chief Karen Fry ordered tents along the stretch of Hastings Street dismantled last month, saying there was an extreme fire and safety risk.

The city has said staff would concentrate their efforts on the “highest risk” areas, but several structures in those areas remained in place on Wednesday.

The neighbourhood struggles with many complex challenges including drug use, crime, homelessness, housing issues, and unemployment.

It was tense on Tuesday, Elizabeth said, with a heavy police presence on the street.

The Vancouver Police Department released a statement Tuesday saying multiple people were arrested after officers were assaulted during a “melee.”

It said staff at a community centre had called police to report a man throwing computers and behaving erratically. The man resisted arrest, police said, as “a large crowd gathered, and became hostile and combative with the officers.”

Elizabeth said police used pepper spray and the incident left people feeling scared.

An update from the city on Wednesday said a big contingent of police at the Main and Hastings intersection in the afternoon “was not as a result of the City’s effort to remove structures”, and instead stemmed from the incident outside the community centre.

The city said staff aimed to approach encampment residents “with respect and sensitivity, encouraging and supporting voluntary removal of tents and belongings through conversation.”

“We recognize that some people believe the city should not do this work, but there are significant safety risks for everyone in the neighbourhood that the city cannot ignore,” it said.

Elizabeth stood near her belongings on the sidewalk where she said she’s been staying for about three weeks after moving from another spot nearby.

“It’s not like this is a forever, permanent place,” she said, although she’s not sure where she might go next.

“As far as options down here, generally there’s been Crab Park, which is like tent city,” she said, referring to tents set up around the park near Vancouver’s waterfront.

Elizabeth said she, like many others living in tents along the street, doesn’t feel comfortable or safe in single-room occupancy buildings with “awful” conditions.

The city said staff have been meeting each week with a community-based working group since May, and more frequently with members of the Overdose Prevention Society and Vancouver Area Network of Drug Users over the past two weeks.

Staff spent Wednesday telling residents about storage options for their belongings, the city said.

These included up to two 360-litre storage totes, which staff would seal with tamper-proof labels before placing them in short-term storage. The city said the totes are on wheels, so owners can take them away if they did not want them stored.

A long-term storage container is also being provided nearby, the city said.

Community advocacy groups, including the drug-user network and Pivot Legal Society, have said clearing the encampment violates a memorandum of understanding between the city, the B.C. government and Vancouver’s park board, because people are being told to move without being offered suitable housing.

The stated aim of the agreement struck last March is to connect unsheltered people to housing and preserve their dignity when dismantling encampments.

The City of Vancouver may enforce bylaws that prohibit structures on sidewalks “when suitable spaces are available for people to move indoors,” it reads.

This report by The Canadian Press was first published Aug. 10, 2022.

 

The Canadian Press

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Draft speech on residential schools edited out blaming Ottawa for abuse: documents

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Ottawa was careful to avoid admitting abuses Indigenous children suffered at residential schools happened “at the hands of the federal government” in remarks prepared for a Liberal cabinet minister after the discovery of unmarked graves last year, documents show.

The Canadian Press obtained documents through the Access to Information Act that show a draft version of a speech written for Carolyn Bennett, who was then minister of Crown-Indigenous relations, originally contained those words before they were edited out.

“It gets to me that they’re still in a place of defending themselves,” said Cindy Blackstock, executive director of the First Nations Child and Family Caring Society of Canada.

In May 2021, the Tk’emlúps te Secwépemc Nation announced ground-penetrating radar had found what are believed to be the unmarked graves of about 200 children on the site of a former residential school near Kamloops, B.C.

The revelation spurred a reckoning across the country about the legacy of residential schools, which were government-funded, church-operated institutions that about 150,000 First Nations, Métis and Inuit children were forced to attend in Canada over more than a century. Thousands of children experienced physical, sexual and emotional abuse and neglect, or even died.

The discovery also prompted questions about what Ottawa was going to do about it.

Days later, the Department of Crown-Indigenous Relations was drafting a speech for Bennett in anticipation of a possible emergency debate on the matter in the House of Commons.

That never happened. Another form of debate was held and it appears the draft speech, as written in the documents, was not the one that Bennett ended up delivering.

One section of the draft remarks addresses the suffering children endured in residential schools, originally saying “they experienced unthinkable trauma, including physical, mental and sexual abuse at the hands of the federal government by simply attending school.”

Speech writing can be a lengthy process. Text is often drafted by the department and then sent to staff in the minister’s office and to the minister, and then sometimes back and forth again.

Edits contained in the 17 pages of drafts show the words “at the hands of the federal government” were struck out. The reason for the revision was redacted before the documents were released to The Canadian Press.

“The government, they talk a great deal about reconciliation,” said Eleanore Sunchild, a Saskatchewan lawyer and advocate from Thunderchild First Nation, who has represented many residential school survivors in physical and sexual abuse cases.

“That, however, doesn’t speak of reconciliation at all, taking out those words.”

Saskatoon Tribal Council Chief Mark Arcand said he found it “disturbing … that Canada keeps trying to minimize its role in residential schools.”

The Crown-Indigenous Relations Department has not yet responded to a request to explain the change. But the office of the current minister, Marc Miller, said in a written statement that the federal government “takes full responsibility” for its role in the residential school system, “including the abuse that Indigenous children suffered at these institutions.”

Former Conservative prime minister Stephen Harper apologized for Canada’s role in residential schools in 2008 as part of the historic Indian Residential School Settlement Agreement.

In his speech, Harper apologized for the government “failing to protect” children at the institutions, which he said “far too often … gave rise to abuse or neglect.”

He also apologized for the separation of children from families and acknowledged it carried consequences for future generations.

In the speech that Bennett ultimately gave on unmarked graves on June 1, 2021, she said she wanted to give her “profound apologies to the families and survivors,” but she did not mention abuse or assign blame.

Last month, Pope Francis came to Canada to apologize for residential schools on behalf of the Catholic Church, which operated more than 60 per cent of the institutions.

The pontiff asked forgiveness for the “evils” committed by “many Christians” against Indigenous children in residential schools. Many Indigenous leaders said they had hoped for an apology that specifically spoke about the role of the Catholic Church.

Bill Percy, a Winnipeg-based lawyer who has represented survivors seeking compensation for sexual and physical abuse, said it’s possible government took issue with the words “at the hands of” in the draft.

“That implies that they were the physical abusers,” he said.

“Most of the direct abusers would be church-related employees, not federal government employees.”

Regardless, he said Canada has paid out most of the billions of dollars distributed to abuse complainants under the settlement.

“When push comes to shove, in the court cases, the federal government always has taken responsibility.”

Blackstock said she sees where Ottawa has “wiggle room,” given that the federal government did not directly perpetuate abuse.

“What the federal government did is knowingly leave children in situations where this was happening, and were choosing not to intervene to save them from the deaths and save them from the abuse,” she said.

She said whether it’s the Vatican or Canada, institutions have demonstrated a reluctance to take full accountability for residential schools.

“What I’ve been concerned about writ large is the portrayal by the federal government as this is a ‘dark chapter in history,’ and not really owning the fact that they knew what they were doing was wrong. They knew it was leading to children’s deaths.”

This report by The Canadian Press was first published Aug. 10, 2022.

— with files from Jim Bronskill

 

Stephanie Taylor, The Canadian Press

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Quebec religious minorities feel less safe, hopeful due to secularism law: survey

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MONTREAL — Religious minorities in Quebec are feeling less safe, less accepted and less hopeful since the province passed its secularism law three years ago, a new survey suggests.

The results published Wednesday by Léger and the Association for Canadian Studies reveal that Quebecers who identify as Jewish, Muslim or Sikh report “broad-ranging, disruptive and profound negative impacts” stemming from the 2019 law, which bans public sector workers deemed to be in positions of authority from wearing religious symbols on the job.

“Muslim, Jewish and Sikh respondents describe being exposed, in their daily lives, to attitudes and behaviours that directly impact their sense of acceptance and safety, civic engagement and sense of fulfilment, well-being and hope,” the study authors write.

“The waning of hope for the next generation is especially striking in all three communities.”

Miriam Taylor, the director of the study, said it was women who were most likely to report feeling less safe than they did three years ago.

“For women there was also a feeling that their ability to speak freely in public had worsened in all three communities,” said Taylor, who is the Association for Canadian Studies’ director of publications and partnerships.

Muslim women reported some of the greatest impacts, with over 70 per cent of respondents saying they felt less safe and over 80 per cent saying they felt less hopeful for the next generation than when the law known as Bill 21 was adopted.

Sikhs, while they represented a much smaller pool of respondents, also reported a “significant” deterioration in indicators that measure fulfilment, well-being and hope, “with in almost all cases, more than 75 per cent reporting a worsening of their situations,” the study found.

While the decline in indicators of engagement was less marked among Jewish respondents, over half said the feeling of being accepted as a full-fledged member of Quebec society had worsened over the last three years, and nearly 40 per cent of female Jewish respondents said they felt less inclined to participate in social and political life.

Members of all three religious communities reported exposure to hateful incidents at levels far above those experienced by the general population, and some provided examples that ranged from insults to someone trying to run them over with a truck.

“People were spat at and had their hijabs ripped off and their turbans threatened,” said Taylor, who added that even religious minorities who did not wear religious symbols had felt their sense of safety and engagement decline.

The study found that overall support for the law among the general public has remained steady since its inception, with about two-thirds of respondents in favour. But here, too, Taylor said the responses show “nuance.”

A majority of respondents — 64.5 per cent — felt is was important for the Supreme Court of Canada to decide whether the law is discriminatory, and fewer than half of those surveyed said they could continue to support it if the court were to decide it violates the Charter of Rights and Freedoms.

And despite overall high support for the law, only 39.2 per cent of respondents agreed that a public servant who disobeys it should lose their job, Taylor pointed out. Teachers, police officers, judges and prison guards are among those prohibited from wearing religious symbols under the law.

Support for the law is also lower among women — 59 per cent compared to 68 per cent among men — and is especially low among those who are younger.

Taylor said the survey showed that those who support the law most strongly are also the least likely to report interactions with non-Christian religions, which shows that their negative opinions “are not rooted in real experience.”

She said it’s impossible to measure exactly how much of what religious minority members are experiencing is tied directly to the law.

“Social climate is a very complicated thing to measure, but some of this is due to Law 21,” she said. “It can’t be an accident that you have these consistent numbers across the board.”

The study results were created by combining a Léger web survey of the general population with the Association for Canadian Studies’ polling of religious minorities, and weighing the results to better represent the general population.

In total, 1,828 Quebecers — including 632 Muslims, 165 Jews and 56 Sikhs — were questioned for the study, which does not have an official margin of error because it was conducted by web panel.

This report by The Canadian Press was first published Aug. 10, 2022.

 

Morgan Lowrie, The Canadian Press

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