There are hard benefits to alleviating poverty.
The problem is that the methodologies that show these benefits tend not to be used in traditional budgeting.
1. We tend not to look at Direct and Indirect Savings
2. We seldom count the costs of Inaction (Cost of Poverty)
3. We almost never do Cost Benefit Analysis
Each of these different types of analyses offers a different way of looking at poverty reduction. By ignoring the offsets, savings and benefits that could be estimated using these methods, decision-makers otherwise miss out on the chance to understand the economic returns related to investment in poverty reduction efforts.
The creation of a broader balance sheet can refute the incorrect conclusion that poverty reduction only relates to those low-income residents who are directly impacted. Reducing poverty has positive impacts for all Torontonians.