the historical development of social security in canada pol s 321 lecture 2

The Historical Development of The Historical Development of Social Security in CanadaSocial Security in Canada

Pol S 321Pol S 321

Lecture 2Lecture 2

Major ThemesMajor Themes

PrinciplesPrinciples

ResidualResidual

CategoricalCategorical

ConditionalConditional

Less eligibility (below minimum wage)Less eligibility (below minimum wage)

Residualism vs. InstitutionalismResidualism vs. Institutionalism

- development of alternatives for - development of alternatives for distributing income, goods, and servicesdistributing income, goods, and services• common assumption in 19th and pre-1940s common assumption in 19th and pre-1940s

was that the family and private market was that the family and private market provided reliefprovided relief

• state-sponsored agencies were the last state-sponsored agencies were the last resort for relief, and then only on an resort for relief, and then only on an emergency or temporary basis emergency or temporary basis

• concept of residualismconcept of residualism

Major Themes (cont.)Major Themes (cont.)

• the alternative to this viewpoint which was the alternative to this viewpoint which was to develop during the post-WWII period is to develop during the post-WWII period is the the institutional concept of welfareinstitutional concept of welfare– result of the growing recognition of the risks result of the growing recognition of the risks

associated with social organization in urban -associated with social organization in urban -industrial society, and the capacity of the state industrial society, and the capacity of the state to mobilize to address these problemsto mobilize to address these problems

– society had an obligation to protect and society had an obligation to protect and compensate those individuals who bore the compensate those individuals who bore the costs of industrial and urban modernizationcosts of industrial and urban modernization

Social MinimumSocial Minimum

- realization that in a civilized society, - realization that in a civilized society, there is a minimum of conditions there is a minimum of conditions necessary to have a chance in lifenecessary to have a chance in life• stems from concerns about child labour stems from concerns about child labour

and minimum wages in Britain and and minimum wages in Britain and surveys of poverty in major U.S. cities at surveys of poverty in major U.S. cities at the turn of the century.the turn of the century.

Redefining PovertyRedefining Poverty

- sense that Canada was a land of - sense that Canada was a land of opportunity of strong social security opportunity of strong social security measures were not necessarymeasures were not necessary

- lack of data to either support or refute - lack of data to either support or refute perceptions of underlying social and perceptions of underlying social and economic conditioneconomic condition

- changed by improved information and - changed by improved information and increased political salienceincreased political salience

Participatory Democracy Participatory Democracy

- increasing public interest in social - increasing public interest in social security programssecurity programs

- increased benefits, especially those that - increased benefits, especially those that are universal in nature have contributed are universal in nature have contributed to this increased interestto this increased interest

- issues of due process, fairness and - issues of due process, fairness and accountabilityaccountability

Institutions: Fed.-Prov. RelationsInstitutions: Fed.-Prov. Relations

- strong central role originally envisioned - strong central role originally envisioned for central governmentfor central government

- however, division of powers, judicial - however, division of powers, judicial interpretation and political interpretation and political developments left provinces with developments left provinces with responsibility for major areasresponsibility for major areas

- incongruence between revenue-raising - incongruence between revenue-raising power and program responsibilitiespower and program responsibilities

Institutions: Fed.-Prov. RelationsInstitutions: Fed.-Prov. Relations

Secondary Source: Robert J. Jackson and Doreen Jackson. (1990), Politics in Canada. Scarborough:Prentice-Hall

Historical OverviewHistorical Overview

Pre-ConfederationPre-Confederation

- Elizabethan Poor Law Tradition (1601)- Elizabethan Poor Law Tradition (1601)• assumption of public responsibility for relief assumption of public responsibility for relief

of dependent poor, financed and of dependent poor, financed and administered by local governmentsadministered by local governments

• provide relief for the sick, old, or disabled provide relief for the sick, old, or disabled (“impotent poor”) through almshouses (“impotent poor”) through almshouses (indoor relief) or homes (outdoor relief)(indoor relief) or homes (outdoor relief)

• work for able-bodied poor and punishment work for able-bodied poor and punishment (workhouses)(workhouses)

Pre-Confederation (cont.)Pre-Confederation (cont.)

- Problems with Poor Law system - Problems with Poor Law system • ““thinly-disguised slavery”thinly-disguised slavery”• cost led local governments to combine cost led local governments to combine

different categories of recipients into single different categories of recipients into single institutions (I.e.. - sick, mentally ill, mentally institutions (I.e.. - sick, mentally ill, mentally challenged, children, tramps). challenged, children, tramps).

- legislation: Nova Scotia 1763; New - legislation: Nova Scotia 1763; New Brunswick 1786Brunswick 1786


- Early Trends- Early Trends• small rural parishes in N.B.. contracted out small rural parishes in N.B.. contracted out

to the lowest bidderto the lowest bidder• some areas held an annual auction of some areas held an annual auction of

paupers (slavery)paupers (slavery)• by mid-19th C. public institutions in larger by mid-19th C. public institutions in larger

centres and outdoor reliefcentres and outdoor relief• pre-1865 - almshouses served as hospitals pre-1865 - almshouses served as hospitals


- Upper Canada- Upper Canada• 1792 legislation in U.C. didn’t include poor 1792 legislation in U.C. didn’t include poor

law provisions (opposition to taxation and law provisions (opposition to taxation and increased local gov’t power)increased local gov’t power)

• focus on private sectorfocus on private sector• jails were used as the initial catch-all jails were used as the initial catch-all • provincial asylum established in 1850provincial asylum established in 1850• some public funds provided -destitute/sick some public funds provided -destitute/sick


- Lower Canada- Lower Canada• French Catholic tradition assigned primary French Catholic tradition assigned primary

role for health, education and welfare to role for health, education and welfare to the Church, not the statethe Church, not the state

• facilities were built and operated by the facilities were built and operated by the Church and supplemented by weekly Church and supplemented by weekly begging and donations from congregationsbegging and donations from congregations


- Western provinces- Western provinces• responsibility for provision of relief fell responsibility for provision of relief fell

mainly to provincial governments except mainly to provincial governments except where local governments were organizedwhere local governments were organized

Post-ConfederationPost-Confederation

- factory system sprang into being almost - factory system sprang into being almost overnightovernight

- rapid urbanization- rapid urbanization

- Royal Commission (1887)- Royal Commission (1887)• unanimous condemnation of certain unanimous condemnation of certain

aspects of the factory system: 50-60 aspects of the factory system: 50-60 hr./wk.; low pay; workplace safety; hr./wk.; low pay; workplace safety; underemployment/unemploymentunderemployment/unemployment

Working ConditionsWorking Conditions

- factory doors locked- factory doors locked

- physical discipline of child workers- physical discipline of child workers

- financial penalties for sub-standard - financial penalties for sub-standard work, breakage, laughing and talking, or work, breakage, laughing and talking, or latenesslateness

- industrial carnage: loss of limbs- industrial carnage: loss of limbs

Conditions (cont.)Conditions (cont.)

• anti-unionismanti-unionism– attempts to establish unions were countered by attempts to establish unions were countered by

blacklisting and intimidationblacklisting and intimidation

• wage -discrimination against womenwage -discrimination against women– generally 50% that of men and insufficient to let generally 50% that of men and insufficient to let

them live independent of their familythem live independent of their family

• poor housing conditionspoor housing conditions– poorly constructedpoorly constructed– poor sanitationpoor sanitation– exorbitant rentsexorbitant rents

Post-Confederation (cont.)Post-Confederation (cont.)

- Commission recommendation- Commission recommendation• federal gov’t establish an annuity system to federal gov’t establish an annuity system to

allow workers to save for their old ageallow workers to save for their old age• only recommendation acted upon was the only recommendation acted upon was the

creation of the proclamation of Labour Daycreation of the proclamation of Labour Day

Social Minimum(cont.)Social Minimum(cont.)

- Establishment of Social Minima- Establishment of Social Minima• increased public concernincreased public concern• needs of employers to access needs of employers to access

cheap/trained labour forcecheap/trained labour force• concerns with public healthconcerns with public health• extension of the franchiseextension of the franchise• improved information on social conditionsimproved information on social conditions

Social Minimum(cont.)Social Minimum(cont.)

- Education- Education• access to cheap labour force and method access to cheap labour force and method

of social controlof social control• 1850 - 1870s - primary education in 1850 - 1870s - primary education in

Ontario, B.C., Manitoba and P.E.I., became Ontario, B.C., Manitoba and P.E.I., became freefree

• free public libraries were fairly common by free public libraries were fairly common by turn of the centuryturn of the century

Social MinimumSocial Minimum

- Health Care- Health Care• ad hoc public health at local level to deal ad hoc public health at local level to deal

with emergencieswith emergencies• development of provincial health boards development of provincial health boards

(Ontario, 1882)(Ontario, 1882)• federal department in 1919federal department in 1919

Take 15…Take 15…


- Legislation- Legislation• 1880-1886 seven bills introduced at federal 1880-1886 seven bills introduced at federal

level - none passed in part to pressure from level - none passed in part to pressure from some employers groupssome employers groups

- Extension of Franchise- Extension of Franchise• 1920 - Dominion Elections Act granted 1920 - Dominion Elections Act granted

universal suffrage to men and women in universal suffrage to men and women in federal elections although natives and other federal elections although natives and other visible minority groups were still outvisible minority groups were still out


- improved research- improved research• Ames study - “ordinary urban conditions” Ames study - “ordinary urban conditions”

within a square mile of Montreal’s working within a square mile of Montreal’s working class district - 38,000 households (1897)class district - 38,000 households (1897)

• findings: overcrowding; definition of poverty findings: overcrowding; definition of poverty line line

• modern analysis of the Ames study modern analysis of the Ames study suggests that 73% of working class lived at suggests that 73% of working class lived at or below the poverty level of the dayor below the poverty level of the day


- Reform Movements- Reform Movements• urban reform : focused on public control of urban reform : focused on public control of

utilities; improved sanitary conditions (city utilities; improved sanitary conditions (city healthy); improved purity in government healthy); improved purity in government (city efficient); improved aesthetics; (city efficient); improved aesthetics; efficiency in government (city beautiful)efficiency in government (city beautiful)

• social gospel movement: Lords Day Act social gospel movement: Lords Day Act (1906); Social Service Council of Canada; (1906); Social Service Council of Canada; Gov’t Annuities Act (1908)Gov’t Annuities Act (1908)


- Legislation- Legislation• Ontario:Ontario:

– Factories Act and Employer’s Liability Act Factories Act and Employer’s Liability Act (1884/86)(1884/86)

• est. safety requirements,limits to hours worked, and est. safety requirements,limits to hours worked, and employment of childrenemployment of children

• weakened the legal defense os employers of weakened the legal defense os employers of assumed risk and negligenceassumed risk and negligence

• Workman’s Compensation Act (1914)Workman’s Compensation Act (1914)– first piece of social insurance (see hand-out )first piece of social insurance (see hand-out )


• Gov’t Annuities Act 1908Gov’t Annuities Act 1908– government operated annuities as a means of government operated annuities as a means of

overcoming the inadeqaucies of the private overcoming the inadeqaucies of the private marketmarket

• Quebec - Workmen’s Comp. Act 1909Quebec - Workmen’s Comp. Act 1909– schedule of benefits payable provided schedule of benefits payable provided

negligence was not involvednegligence was not involved– not compulsory, “contributory negligence” not compulsory, “contributory negligence”

upheldupheld

Two Wars and a DepressionTwo Wars and a Depression

- Impact of WWI- Impact of WWI• rise of the political left due to growing rise of the political left due to growing

social unrestsocial unrest– Winnipeg General Strike (1919), electoral Winnipeg General Strike (1919), electoral

successes of populist farm movements in successes of populist farm movements in elections at the provincial level, and election of elections at the provincial level, and election of 65 progressives at the federal level in 192165 progressives at the federal level in 1921

– Mother’s Pension Act passed in B.C. (1920)Mother’s Pension Act passed in B.C. (1920)

War and Depression (cont.)War and Depression (cont.)

- Canadian Council on Child and Family- Canadian Council on Child and Family• reviewed the act in 1931reviewed the act in 1931• residual attitude - better to punish residual attitude - better to punish

deserting husbands, unmarried mothers deserting husbands, unmarried mothers give up childrengive up children

• led to a significant cutback in servicesled to a significant cutback in services

War and DepressionWar and Depression

- 1920s (see handout)- 1920s (see handout)• establishment of federal health department establishment of federal health department

in 1919in 1919• minimum wage legislationminimum wage legislation• old age pensionold age pension• family allowancesfamily allowances


- Depression- Depression• one-quarter of population unemployed by one-quarter of population unemployed by

1933 (15% on relief)1933 (15% on relief)• pick and shovel make work projectspick and shovel make work projects• in-kind and voucher systemsin-kind and voucher systems• relief was considered a local responsibilityrelief was considered a local responsibility• federal support came in the form of annual federal support came in the form of annual

“emergency appropriations” (40%)“emergency appropriations” (40%)


- Depression- Depression• Unemployment Insurance Act (1935)Unemployment Insurance Act (1935)

– originally declared ultra -vires by the JCPCoriginally declared ultra -vires by the JCPC

• Royal Commission on Fed/Prov. Relations : Royal Commission on Fed/Prov. Relations : recognized the emerging substantial roles of recognized the emerging substantial roles of the provinces in social security without the provinces in social security without financial resources;logic of federal role in financial resources;logic of federal role in income maintenance; concept of national income maintenance; concept of national minimum of social servicesminimum of social services

War and DepressionWar and Depression

- WWII- WWII• 1941 -committee on post-war 1941 -committee on post-war

reconstructionreconstruction• Cassidy Report on Social Security (1943): Cassidy Report on Social Security (1943):

called for a comprehensive social security called for a comprehensive social security system including a standard of living floor; system including a standard of living floor; unemployment; disability; illness; death; unemployment; disability; illness; death; training and placement training and placement

Role of IdeasRole of Ideas

Keynesian EconomicsKeynesian Economics- Anyone who wanted to work could Anyone who wanted to work could

because full employment was the normbecause full employment was the norm- If an extended period of unemployment If an extended period of unemployment

emerged, governments could correct emerged, governments could correct this by spending to stimulate the this by spending to stimulate the economyeconomy

Role if IdeasRole if Ideas

Beveridge ReportBeveridge Report

- public assistance and means-tested aid could - public assistance and means-tested aid could be eliminated through comprehensive social be eliminated through comprehensive social securitysecurity

- Universal health service, universal children’s Universal health service, universal children’s allowance, comprehensve social insurance to allowance, comprehensve social insurance to address life interruptions; and maternatty and address life interruptions; and maternatty and funeral grantsfuneral grants

Report on Social Security for Report on Social Security for Canada (Marsh Report -1943)Canada (Marsh Report -1943)

- Derived from the Rowell-Sirois Commission (1937-1940)- Derived from the Rowell-Sirois Commission (1937-1940)

- National employment and investment program to maintain full - National employment and investment program to maintain full employmentemployment

- Expanded system of social insurance protection federally administered to - Expanded system of social insurance protection federally administered to

protect workers from risks of income interruptionprotect workers from risks of income interruption - Social insurance program to protect employed from ‘universal risks’, old - Social insurance program to protect employed from ‘universal risks’, old

age, permanent disability, deathage, permanent disability, death -Comprehensive health insurance including medical, dental, -Comprehensive health insurance including medical, dental,

pharmaceuticals, optometrists, jointly financed and contributorypharmaceuticals, optometrists, jointly financed and contributory -Universal family allowances -Universal family allowances

Marsh ReportMarsh Report

“ “ The genius of social assistance is that it The genius of social assistance is that it enlists the direct support of the classes enlists the direct support of the classes most likely to benefit, and enlists equally most likely to benefit, and enlists equally the participation and controlling the participation and controlling influences of the state, at the same time influences of the state, at the same time as it avoids the evil of pauperization, as it avoids the evil of pauperization, and the undemocratic influence of and the undemocratic influence of excessive state philanthropy” excessive state philanthropy”

Post-WWIIPost-WWII

- 1950s and 1960s- 1950s and 1960s• Old Age Security Act (1951)Old Age Security Act (1951)

– special provisions allowed Quebec to opt-outspecial provisions allowed Quebec to opt-out

• Unemployment Assistance Act (1956)Unemployment Assistance Act (1956)• CAP (1966)CAP (1966)

The 1960s: The Last Hurrah ?The 1960s: The Last Hurrah ?

- CAP (1966)- CAP (1966)• consolidation of all fed/prov programs based consolidation of all fed/prov programs based

on means or needs tests into a single, on means or needs tests into a single, comprehensive program for benefits to meet comprehensive program for benefits to meet financial need regardless of cause (old age financial need regardless of cause (old age assistance, blind person’s allowance, and assistance, blind person’s allowance, and disabled person’s allowances, along with other disabled person’s allowances, along with other single category programs)single category programs)

• services to allow maintenance of services to allow maintenance of independenceindependence

CAP ContinuedCAP Continued

- 50/50 cost shared assistance for needy - 50/50 cost shared assistance for needy mothers and dependent children, mothers and dependent children, homemaker services, home support, and homemaker services, home support, and other services for families in need, children other services for families in need, children in the care of welfare agencies, protective in the care of welfare agencies, protective services for children, and adoptive servicesservices for children, and adoptive services

- costs include “basic requirements for - costs include “basic requirements for food,shelter,clothing,fuel,utilities ...food,shelter,clothing,fuel,utilities ...

Boy - The 60’s was a generous Boy - The 60’s was a generous time compared to the 90’stime compared to the 90’s

- additional services covered: - additional services covered: homemakers services, home support homemakers services, home support and other family related servicesand other family related services

- 1990 - Federal Government imposed a - 1990 - Federal Government imposed a 5% ceiling on the annual growth rate of 5% ceiling on the annual growth rate of CAP contributions to the non-CAP contributions to the non-equalization receiving provinces equalization receiving provinces (Ontario, Alberta and B.C.).(Ontario, Alberta and B.C.).

Movement Towards a GAIMovement Towards a GAI

- External Forces:- External Forces:• oil crises (1973 and 1979)oil crises (1973 and 1979)• slowed economic growthslowed economic growth• increased size of labour forceincreased size of labour force

- Internal Forces- Internal Forces• impact of technological change (changes in impact of technological change (changes in

employment patternsemployment patterns• emergence of working pooremergence of working poor• focus on povertyfocus on poverty

Movement Towards a GAIMovement Towards a GAI

- Reform of Unemployment Insurance - Reform of Unemployment Insurance Plan (1970-71)Plan (1970-71)

– attempt to reshape an existing program (to attempt to reshape an existing program (to enrich and broaden the UI plan and introduce enrich and broaden the UI plan and introduce some principles of GAIsome principles of GAI

– in essence - government proposed to make UI in essence - government proposed to make UI a near universal program and increase benefits a near universal program and increase benefits from 40% to 66%from 40% to 66%

– widening of eligibility to include childbirth and widening of eligibility to include childbirth and sickness, 65sickness, 65

Reform of UIReform of UI

• eligibility also extended to cover short term, eligibility also extended to cover short term, intermittent, non-continuous workersintermittent, non-continuous workers

• qualifying periods shortened to as 8 from 52 qualifying periods shortened to as 8 from 52 weeksweeks

• benefit period extended from 36 to 51 weeksbenefit period extended from 36 to 51 weeks• extended benefits for high unemployment extended benefits for high unemployment

areasareas• costs of program were 3 X original estimates costs of program were 3 X original estimates

by 1975 by 1975

The Social Security Review The Social Security Review (1973-1976)(1973-1976)

- Working Paper on Social Security (1973) - Working Paper on Social Security (1973) -five strategies: employment (near--five strategies: employment (near-universal income for employment); universal income for employment); social insurance(contributory as first line social insurance(contributory as first line of defense); income supplementation of defense); income supplementation (top-up of basic employment and social (top-up of basic employment and social insurance) for unemployables; insurance) for unemployables; employment and social servicesemployment and social services

Social Security ReviewSocial Security Review

- principles: good and successful social - principles: good and successful social security depends on successful security depends on successful economic policy (near full employment); economic policy (near full employment); good and successful social security good and successful social security turns on an effective income support turns on an effective income support and supplementation systemand supplementation system

The Ministers MeetThe Ministers Meet

- The Plan was approved in principle, but - The Plan was approved in principle, but never implemented because of never implemented because of misgivings from some provinces about misgivings from some provinces about the federal commitment to cover the federal commitment to cover additional costs; apprehension about additional costs; apprehension about support from provincial finance support from provincial finance ministers; and the uncertainty of the ministers; and the uncertainty of the economyeconomy

Fallout from the Social Security Fallout from the Social Security ReviewReview

- no income supplementation plan was - no income supplementation plan was introduced for the working poor (beyond introduced for the working poor (beyond Family Allowance) and no GAI introducedFamily Allowance) and no GAI introduced

- however, Sask est. the family Income - however, Sask est. the family Income Plan (1974), Manitoba - Income Support Plan (1974), Manitoba - Income Support Program (1980), Quebec, Income Program (1980), Quebec, Income Supplement Program (1979), Feds - child Supplement Program (1979), Feds - child Tax Credit (1978)Tax Credit (1978)

Shortcomings of the ReviewShortcomings of the Review

- arbitrary and unilateral nature of federal - arbitrary and unilateral nature of federal decisions (lack of provincial decisions (lack of provincial consultation)consultation)

- recurring federal/provincial squabbling- recurring federal/provincial squabbling

- economic downturn- economic downturn

EPF: “This is the End”EPF: “This is the End”

- Established Programs Financing Act - Established Programs Financing Act (1977)(1977)• response to economic downturn, rising world oil response to economic downturn, rising world oil

prices and growing fed/prov frictionprices and growing fed/prov friction• federal withdrawal from 50/50 cost shared federal withdrawal from 50/50 cost shared

arrangements for health and PSEarrangements for health and PSE• replaced by an unconditional block grant based on replaced by an unconditional block grant based on

cash and tax transfers (13.5 points)cash and tax transfers (13.5 points)• 86/871990 GNP -2, 89/90 GNP -3, 90/91 froze.86/871990 GNP -2, 89/90 GNP -3, 90/91 froze.

Child Benefit ProgramChild Benefit Program

- Federal gov’t announced $600 million in Federal gov’t announced $600 million in 97 budget97 budget

- National Child Benefit initiative launched National Child Benefit initiative launched in 1998in 1998

- Provinces have used the funding for Provinces have used the funding for different initiativesdifferent initiatives

- feds add an additional $425 million in feds add an additional $425 million in 19991999

Source: Gerald Boychuk, “Reforming the Canadian Social Assistance Complex: The Provincial Welfare States and Canadian Federalism,” in Canada: The State of the Federation, 1994

http://prestationnationalepourenfants.ca/ncb/ncb_e19.html

Universal Child Care BenefitUniversal Child Care Benefit

- The Universal Child Care Benefit provides The Universal Child Care Benefit provides financial assistance to Canadian families with financial assistance to Canadian families with young children. Parents receive $100 a young children. Parents receive $100 a month — up to $1,200 a year — for each month — up to $1,200 a year — for each child under six.child under six.

- $250M each year to provinces and territories $250M each year to provinces and territories to support their priorities for child care spaces to support their priorities for child care spaces

- a 25 per cent investment tax credit is a 25 per cent investment tax credit is available to eligible businesses that create available to eligible businesses that create new child care spaces in the workplace, to a new child care spaces in the workplace, to a maximum of $10,000 per space created. maximum of $10,000 per space created.

SummarySummary

- Residualism vs. institutionalismResidualism vs. institutionalism- Social minimumSocial minimum- Redefining povertyRedefining poverty- FederalismFederalism- External eventsExternal events

Further Information…Further Information…

http://prestationnationalepourenfants.ca/nhttp://prestationnationalepourenfants.ca/ncb/library1.shtml#2002cb/library1.shtml#2002http://www.sdc.gc.ca/en/gateways/nav/tophttp://www.sdc.gc.ca/en/gateways/nav/top_nav/program/isp.shtml_nav/program/isp.shtmlhttp://www.universalchildcare.ca/en/http://www.universalchildcare.ca/en/

find_out/backgrounder.shtmlfind_out/backgrounder.shtml

the historical development of social security in canada pol s 321 lecture 2

Documents

relief of dependent

ablebodied poor

poor law system

social organization

poor law provisions

elizabethan poor law

disabled impotent poor

public institutions