Toil and trouble… then inequality

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Editorial of July 25, 2013:

After toiling through adult life and approaching that freedom 65 (or 60 for the lucky ones), Canadians can take solace in the fact they will finally be rewarded for their labours with a pension and an Old Age Security cheque.

For those who have laboured and paid taxes for 40 or more years, it’s time to get something back. For some, however, this return on their lifetime of work investment does not come so readily or equitably.

Recently in the Senate, P.E.I.’s representative there, Catherine Callbeck, spoke about the fact that single or divorced seniors aged 60 to 64 are not eligible for the Old Age Security allowance, even if they are considered low-income seniors.

Low-income married couples are eligible for this allowance, if one of them is receiving the Old Age pension and guaranteed income supplement. Low-income surviving spouses (aged 60-64) are eligible for the allowance for the survivor.

However, as the senator from Central Bedeque, who frequently champions the cause of senior Canadians, pointed out there is no allowance for single low-income seniors.

This is a flaw in the OAS allowance criteria that should be fixed. The criteria, as it stands, means single or divorced seniors are not eligible to apply for benefits that their married or widowed contemporaries are receiving.

Those single or divorced seniors are more likely to be in need of this allowance, having to rely on only one income while senior couples have two incomes to support one household.

If the OAS allowance goes to widows and widowers, why are those who have never married or are divorced, not eligible to apply for the same allowance? 

“The issue is quite simple,” said Callbeck during the debate in the Senate. “As it stands now, certain low-income seniors are being denied a benefit under the Old Age Security program – the OAS Allowance – simply due to marital status.”

Callbeck promised to continue to press for changes because of the number of Island seniors living below the poverty line who could really use this additional income.

“The fact that some low-income seniors are eligible for a benefit and others are not because of marital status is appalling,” says Callbeck. She’s right.

The federal government should not exclude one group of people from receiving assistance just because they never married or are divorced. That’s discrimination. The senator is right – it must be rectified.

Canada needs a jobs and training strategy: Georgetti comments on disappointing July job numbers

 
Friday, 9 August 2013

 

OTTAWA ― The President of the Canadian Labour Congress says that the job numbers for July are a big disappointment and he is calling on the federal government and employers to invest in both job creation and training.  

“Our economy lost 39,400 jobs in July and the unemployment rate is up. This is a wakeup call and we want governments and private sector employers to invest in job creation and training. 

Georgetti was commenting on the release by Statistics Canada of its Labour Force Survey for July 2013. There were 1,380,300 unemployed Canadians in July and the overall unemployment rate was 7.2%. In the 15-to-24 age group, unemployment stood at 13.9%, and 47.9% of young workers are employed only part-time.

Georgetti says that the federal government should assist in creating good jobs by participating in a long-term program to replace and extend Canada’s ageing physical and social infrastructure in roads, rapid transit and child care. “We have cement chunks falling off of bridges and tractors falling into city sinkholes. There is a lot to be done and the government should get at it.”

He adds that Ottawa has provided billions in corporate tax giveaways in the expectation that companies would invest in job creation and training. “Our research has shown that those companies are generally sitting on the cash instead of investing it in job creation and training. It’s high time for them to put that money to  work in the economy.” 

Quick Analysis from CLC Chief Economist Sylvain Schetagne

Government austerity measures and job cuts hurt employment growth in Canada in July 2013. The number of people working decreased significantly by 39,400 in July 2013, and another 14,200 simply quit looking for work and left the labour market. As a result, the unemployment rate rose 0.1% to 7.2% and the percentage of the population working decreased (from 61.9% to 61.7%). Jobs were lost mainly in the public sector, with 74,000 fewer jobs in this sector as a result of declines in health care and social assistance (-47,000) and public administration (-22,900). Growth did occur in the private sector but the number of jobs in manufacturing remains lower than a year ago in July (-59,500). Young workers were hard hit in July. Compared to the previous month, there was decrease of 45,600 jobs among workers aged 15-24, while another 48,800 left the labour market. As a result, their unemployment rate is 13.9%, up from 0.1% from last month.

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 million Canadian workers. The CLC brings together Canada’s national and international unions along with the provincial and territorial federations of labour and 130 district labour councils.

Web site: www.canadianlabour.ca
Follow us on Twitter @CanadianLabour

Contacts:  Sylvain Schetagne, CLC Chief Economist, 613-526-7445.
Dennis Gruending, CLC Communications: Tel. 613-526-7431.
Cell-text: 613-878-6040. Email: dgruending@clc-ctc.ca

The middle class: The battleground of all politicians

Monia MazighBy Monia Mazigh August 9, 2013 http://rabble.ca

Photo: Peter Klein/flickr

In the U.S., the “M” word has been on the lips of politicians from the left to the right of the political spectrum, albeit for different reasons. President Obama is not an exception. Indeed, he made the mention of the middle-class part of his electoral rhetoric immediately after the 2008 financial crisis and after hundreds of thousands of Americans lost their houses, their American dream.

Last February, in his State of the Union address, Obama declared it was “our generation’s task” to “reignite the true engine of America’s economic growth — a rising, thriving middle class.” A few days ago, on August 5, he spoke in a gathering and he again pondered the same message, to “secure a better bargain for the middle class.” Whether we agree with Obama’s plan to revive the middle class or not, one must admit that he has been quite explicit about it. It includes measures affecting child care, dependent care, college expenses and retirement savings.

Here in Canada, Justin Trudeau is on the footsteps of Mr. Obama and his talk is all about the middle class. The only difference is that we don’t have any idea how Justin Trudeau is going to tackle the middle-class issue. Is he going to continue to give free rides to corporations as both Liberal and Conservative governments did in the past, or will he be offering a real program with fiscal and economic measures specifically targeted to the fading middle class? (Even though a lot of words are being said about the new Liberal star candidate in Toronto Centre and how her book might make up the next platform for the Liberal Party campaign). Or is he only interested in the votes of this class and then will turn his back and continue to help the big corporations instead?

But in reality, do we still have a “real” middle class? Where does the political opportunism start and where does the economic reality end?

In the last two decades, generations of politicians watched the erosion and the crushing of the middle class. Some denounced the situation and stood by their principles but many nodded and acquiesced to all the economic and social measures making the poor poorer and the rich richer, effectively shrinking the middle class.

According to a report prepared by Canadian bureaucrats and presented to Finance Minister Jim Flaherty, and recently released by Postmedia, Canada’s middle class improved its average income only by seven per cent between 1976 and 2010. This is equivalent to 0.2 per cent per year. The median income of this class did not do better. From 2007 to 2011, it grew from $66,700 to $68,000, a mere 0.5 per cent per year.

This assessment is confirmed by another report that was prepared by TD Bank. The report documents the fact that low-wage and middle-wage jobs in Canada have been shrinking as a share of the economy as job growth focuses more and more on high-skilled, high-end jobs. Meanwhile, the spending by the middle class didn’t decrease. To the contrary, it continued to increase and the funding comes from the larger amount of debt Canadian families are contracting from the banks and other financial institutions, making the Canadian household one of the most indebted in the OECD countries with a debt-ratio of around 161 per cent for the first quarter of 2013. 

Mark Carney, the former governor of the Bank of Canada, never missed an opportunity to speak against the high amount of debt that is contracted by Canadians. The government never raised an eyebrow (until they changed the rules for mortgages). They barely reacted to the horrifying numbers of children who now live in poverty. Canada’s child poverty rate increased between the mid-1990s and the late 2000s. These are not only children born to single parents of low-income families but also to working parents who can’t make enough annual earnings to afford all the basic necessities for their families. The Conference Board of Canada reported that Canada scores a “C” grade and ranks 15th out of 17 peer countries. Moreover, more than one in seven Canadian children live in poverty.

Last July, the city of Detroit in the U.S., where the middle class was first formed by the autoworkers and later by public employers running city services, went bankrupt. The fall of the auto industry, the cuts to public funds, the fiscal structure of the American government and many other socio-economic factors took Detroit to the cliff; it was forced close shop. It is interesting nowadays to watch the Conservative government trying so hard to dismantle the unions in Canada and to slash thousands of jobs in the public sector. Yes, it would be both stretched out and simplistic to draw similarities between Detroit and the path Canada is following. Nevertheless, it is crucial to study the effects of recent public sector cuts and their impacts on the Canadian middle class, and the state of our economy in general.

The middle class today is like a beautiful woman, desired and solicited by everyone but insidiously feared and despised by all. The politicians are no exception.

Monia Mazigh was born and raised in Tunisia and immigrated to Canada in 1991. Mazigh was catapulted onto the public stage in 2002 when her husband, Maher Arar, was deported to Syria where he was tortured and held without charge for over a year. She campaigned tirelessly for his release. Mazigh holds a PhD in finance from McGill University. In 2008, she published a memoir, Hope and Despair, about her pursuit of justice, and in 2011, a novel in French, Miroirs et mirages.

Photo: Peter Klein/flickr

Show Canadian Parties Who’s Boss

Voters, think yourselves employers, and would-be politicos your job seekers. Give ’em hell.

By Crawford Kilian, August 9, 2013, TheTyee.ca

Ever since the failure of the B.C. New Democratic Party to win the May election, dissidents within the party have blamed everyone from Adrian Dix to campaign manager Brian Topp and party president Moe Sihota. Plenty of outsiders have offered their own analyses and recommendations, not always well meant.

No doubt the usual suspects deserve the criticism, but I suspect the real problem is voters’ failure to remember that a democracy is an enterprise where the voters — not the parties — are the boss.

Politicians pay lip service to that idea, but they’re happier with promoting themselves as “leaders” we should happily follow. The media take the cue from the politicians, running endless stories about what the prime minister, premier, or some cabinet minister is doing. Then they profess to be scandalized to report how politicians are exploiting their perks and charging $16 orange juice to the voters’ tab.

Running in parties is a convenience for politicians, who get a better chance of election in exchange for accepting party “discipline.” The parties are less convenient for voters because party promises rarely match performance. This leads to cynicism among politicians and voters alike, and that leads to apathy and still more political abuse. A democracy can’t prosper with absentee owners; someone’s got to mind the store.

While voters have ignored their responsibilities, all parties have ignored the demographic, environmental and economic changes transforming Canada along with the rest of the world. Older Canadians may still be voters, but they notably failed to bring up their kids to take voting seriously. Robins are showing up in the Arctic while swallows vanish from the Lower Mainland. Technology has made countless industries obsolete.

Reframing the parties

We won’t solve our political problems with a reformed or abolished Senate, or a more civilized Question Period, or less whipping of backbenchers. We can’t get rid of parties, but we should reframe them, so they always remember that they’re just so many job applicants. We are their employers, elections are hiring interviews, and once hired they had damned well better deliver on what they promise.

Here’s what every federal and provincial political party, regardless of ideology, should offer Canadians:

1. Its own concept of a social contract, explaining its view of taxes and what we can reasonably expect from our investment: a country where we collectively look after basic support systems so we can individually get on with our lives. The difference between parties would be in the definition of “basic support.”

2. Redefinition of the role of MP/MLA, not so much as “people’s representative” but as “people’s agent,” like the agents of movie stars and athletes: MPs would look after the details to ensure their constituents have both immediate work and meaningful long-term careers. Like agents’ income, MPs’ income would depend on that of the voters. Government MPs and MLAs would take pay cuts based on double their home riding’s unemployment rate: a five per cent unemployment rate this quarter means 10 per cent less on the MP’s next-quarter take-home pay and eventual pension. That might make backbenchers less whippable.

3. A detailed business plan for the province or country. This wouldn’t be just to go on doing what we’ve always done, but also to argue what we should plan to do when the resources run out or a natural disaster hits. The Finnish government is currently working “to make Finland the most competent country in the world by 2020.” Canada could and should give the Finns some competition on that score.

The business plan would include how to fund full healthcare, with demographic sustainability over next 50 years, minimum; provide free education to all as an investment to ensure sustainability; strong support for young families; and active recruitment of immigrants who can also maintain cultural and trade links with their home countries.

The plan would also include heavy support for scientific and technological research and development: R&D will drive change in all countries, so we need to keep pace. The next tech revolution could come in computers or synthetic biology, or something completely unforeseen. So the party wouldn’t bet on training particular kinds of workers (which would subsidize industries that may already be finished), but on the general education of highly literate citizens who could well invent a scientific revolution we can’t even imagine yet.

A party without such a business plan should be shown the door.

4. A vision of the poor not as a problem to be solved but an opportunity to be seized, through better education and the provision of more meaningful work. With so few young workers and so many retirees to support, we can’t afford to waste the productivity of any worker. We may quarrel about levels of support, but not about support itself.

Listening like smart employers

When elections come, we should consider ourselves employers listening to very anxious job seekers who want control over very large sums of our money. They should be able to tell us what they’d do with that money, and what kind of return they’d get on it.

Smart employers know bullshit when they hear it, especially when it’s obviously what the applicant thinks they want to hear: “Gee, I’m a team player, I’ve got ideas that will save you money, I’ve got a passion for this field, you won’t be disappointed if you hire me.”

Better to hear an applicant who looks you in the eye and says: “You’ve got big problems. This is what I think they are, this is what they’re costing you, and this is how you might start to fix them. If you don’t agree, thanks for your time and good luck.”

We’re too big a country for populist micro-management. But on the day the government calls a new election, it should be legally obliged to submit a balance sheet on what it’s spent, what it’s borrowed, and how many of its promises it’s actually kept. The balance sheet would be drawn up by the Parliamentary Budget Officer, not by anyone answering to the government itself, and the Opposition would be free to present its own critique.

Reframing our parties along these lines wouldn’t solve all our problems. As the great American journalist H. L. Mencken observed, “Democracy is the theory that the common people know what they want, and deserve to get it good and hard.”

But we’re all the common people, and we sometimes learn from experience whether we like it or not. We don’t always fall for warmongers, racketeers, or pretty faces. If experience teaches us that the present party system (which has never been in any of our Constitution Acts) is treating us poorly, we can still remember who’s supposed to be the boss, and who are just the well-dressed flunkies we’ve hired to work for us.  [Tyee]

System Error: Signs Canada’s Crumbling

From: http://rantingcanadian.tumblr.com/

 

Canada is an un-developing country.

It has been for decades. Here are some of the signs.

* Crumbling infrastructure.

* Irresponsible deregulation of industry and cutbacks to enforcement of the few, weak regulations that remain. This resulted – and will continue to result – in otherwise-preventable deaths, injuries and illnesses; worse working conditions; lower wages; and lowly consumers being ripped off.

* Electoral fraud, bribes and other types of corruption being grudgingly accepted as “business as usual”.

* Bizarre, expensive and unnecessary transformation of Canada back into a colony that is subservient to foreign interests, specifically the archaic monarchy of the United Kingdom and the big corporations of China and the United States.

* The federal Conservatives blatantly erasing the line between governing party/leader and non-partisan public institutions, as well as bombarding us with propaganda under a thin guise of news and information (paid for by the taxpayers, of course).

* An overwhelming trend of unpaid internships (slavery by another name), short-term contract jobs with no benefits, unpaid overtime, and other abuses against workers who are desperate for opportunities.

* Handovers of key natural resources and industries to foreign-owned companies.

* Shockingly growing gap between the rich and the rest of us – financially, culturally and physically.

* Artificial and arbitrary hierarchies becoming more deeply entrenched.

* Rampant white-collar crime, tax evasion and other scams going unpunished.

* Victimless petty crimes being severely punished (except when the offender is rich and well connected).

* Continued reprehensible treatment of First Nations peoples, and no serious attempts at honouring treaties, making amends or solving institutional problems.

* Serious shortage of safe and affordable housing in many areas.

* Transfer of social responsibilities from public institutions to private charities, many of which siphon off huge percentages of donations to pay for high salaries and administrative costs.

* Exporting jobs and raw natural resources while importing underpaid/exploited “temporary” foreign workers and cheaply made – often-substandard – finished goods.

* Deliberate and unneeded environmental destruction in the name of corporate profit and executive compensation.

* Growing surveillance of, and persecution of, non-violent dissidents under the false pretence of public safety.

* Increasing government secrecy and clampdown on information that is relevant to the public.

* More intense consolidation of power and wealth at the top of society.

* Frighteningly high levels of government and personal debt – with no genuine plans to ever pay them off.

Our nation has been falling apart at the seams and is gradually turning into a third-world oligarchy. Meanwhile, our smug, hypocritical, right-wing politicians lecture other countries about democracy, freedom and human rights (and sometimes send our troops to those countries to kill people and destroy property).

If the treasonous Harper Conservatives manage to cheat their way back into power in 2015, Canada is pretty much done, over, finished. Don’t be fooled by the sneaky Liberals though. History shows that Liberals have no desire to reverse the damage caused by the Conservatives. The Liberals are happy that the nasty Cons are doing the dirty work, so they can benefit from their elitist, pro-corporate policies while maintaining a phony public image as nice, happy progressives who care about the poor, the marginalized and the environment.

When this eventually becomes blindingly obvious to even the most hardened deniers, those of us who saw it all along will be able to say: “We told you so! We told you fucking so, you stupid assholes, but you didn’t listen! Now you’re screwed too!” Unfortunately, there is no lasting joy in that, since we will be amongst the victims of our society’s self-destruction.

So now what?