In the 1930’s the federal government of Canada had a definition of poverty as being “Unable to pay for one months accommodation with one weeks wages.” How many people do you actually know right now at this moment who earn enough to pay for one month’s rent with one month’s wages? I personally do not know of any apart from some wealthy friends I know who do not work. Under the government of Prime Minister Justin Trudeau, at this time there is no official definition of Poverty.
Statistics Canada tracks three low income statistics.
The Low Income Measure (LIM) is 50% of the adjusted mean income of Canadians
The Low Income Cut-Off (LICO) starts with the spending of the average Canadian family on shelter, food and clothing (43% of after tax income).The threshold is set at 20% more. Any family earning less is below this Low Income Line.
The Market Basket Measure (MBM) ‘is a measure of low income based on the cost of a specific basket of goods and services representing a modest, basic standard of living.’ It takes into account the ability to reasonably participate in community activities as well as physical health. It varies by geographical location.
Once upon a time there was a regulation of the real estate market but after these restrictions were lifted we witnessed an unreasonable increase in the cost of housing and rent as a result. It is easy to fix this problem. We know that in truth, there is no private ownership of lands or resources since this Planet does not actually belong to the Human Race. Still we must adapt a solution to these rapidly rising costs for shelter in Canada.
First we must prohibit foreign ownership of any real estate within Canada. Give them one year to sell all their holdings or confiscate it.
Second we must outlaw the practice of “Flipping” buy introducing a fine for those who engage in it. Any real estate sold within less than 3 years of purchase must be fined a total of 50% of the current resale value of the holding. Any who attempt to sell a holding greater than 3 years but less than 5 years from purchase must be fined a total of 25% total resale value of the holding. Any who attempt to sell a holding that they have had for 5 years or greater should not be fined or taxed.
As soon as these simple laws are introduced we should witness the value of real estate within Canada drop by at least 50% (along with rental costs). Hopefully this will result in a lower rate of Homelessness in Canada.