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Economic Security vs. Disincentive to Work

The notion of "less eligibility" was debated with the rise of Income Security in Canada. The English poor laws and early Canadian laws, in Nova Scotia and New Brunswick followed this concept. The notion of less eligibility was based on the principle that amount of assistance had to be less than the lowest paying job. While this concept was never given formal recognition in Canada, the amounts given were meagre subsistence level amounts. The idea at the time was that giving more than the barest minimum would be too generous and people would choose relief over work. The concern for the work incentive was paramount in the 1940 UI act, where benefits were set at 50% of previous wage rates, to ensure that workers re-entered the labour market at the first opportunity. This proved to be a hazard to health of individuals and families who were in long-term need. In the previous class we discussed the work test, indoor relief and outdoor relief.

Until WW1 the only public assistance available was provided on an emergency basis by private charities and local municipalities. Most of it was in kind, i.e. food, clothes. Cash was rarely given as poverty was seen as temporary and the result of a personal failure.





© 1998, Steve Hick.