Identification of Problem and Proposed Solution:
Poverty and Income inequality are one of the high causes that many citizens are caused to become homeless. Well first of all before proposing an economic solution for this problem let me identify what poverty is. "Poverty is statistics Canada's low-income cut-offs (LICOs) represents the level at which people spend so great a proportion of their income on basic necessities such as food and rent that they are living under "straightened circumstances". The LICO varies by family size and community." The economic solution that I am going to propose is that let more private corporations into the field and eliminate government out of citizens lives. For example in (Figure 1) it shows that in Canada about 16% of the population is under poverty. In Ontario alone about 14% of the population is under poverty. In order to reduce this statistics the barriers that need to be removed are taxes if income taxes are kept at a moderate level and the GST decreased.
This problem could be solved by a conservative government by imposing a conservative government more private organizations will be in the market which will cause a demand for employment the unemployment rate would decrease which would also lead to a lesser percentage of poverty. Also the income is based on the job of the individual meaning that he/she gets rewarded for his/her work therefore there is no inequality occurring in a job.
"2001 Poverty Rates from the Census (based on LICO)
* Canada: 16.2% or 4,720,485 people
* Ontario: 14.4% or 1,611,505 people
* Toronto CMA: 16.7% or 771,535 people
(Toronto CMA includes all of Toronto, Peel and York, and parts of Durham and Halton.)" (Figure1)
Economic Cost of implementation and of Not Implementing:
This economic policy will be similar...