As you can probably tell from the rest of my posts here in the blogosphere, I am a social-democrat. I am a supporter of the New Democratic Party of Canada, I voted for Barack Obama, and I would have zero problem with having same-sex marriage ceremonies and gay pride parades on every street corner in Canada. (But I'm not gay... not that there's anything wrong with that..)
And of course, one's social views are closely tied with their political ones, therefore I am socially-liberal in almost every way imaginable.
I am a big believer in social economics, and I will never buy into the school of thought that a capitalist rising tide raises all ships. Trickle down economic theory is outdated and useless, as shown by the negligible amount of difference that the most wealthy and powerful nations have inflicted on Africa, Latin America and the developing world. Not to mention the way that 21st century Harper-Conservatism has left the most destitute Canadians out to dry in our own nation.
I'm nearly finished Jack Layton's book
'Speaking Out: Ideas that work for Canadians' (1), and lays out an astonishing, albeit ambitious, plan for Canada to pull itself up and reclaim our place as the most amazing country on Earth.
Now going back deep into my moleskine I see a quote from Mr. Layton in context to the Decade of Taxcuts inflicted upon us by both the Liberal and the Conservative Governments;
'Canadians know when they stop being refered to as citizens, and start being refered to as taxpayers that they've lost something.' (2)
And its true, personally I find the term 'taxpayer' borderline insulting. Its placing a hierarchy into everyday society and belittling Canadians as though our only contribution to our collective society is monetary. But our tax dollars stop being dollars at one point and they turn into much more valuable assets. They build us roads and freeways, insure we have access to reasonably priced groceries, provide each and every Canadian with the fundamental human right that is healthcare, and most importantly our tax dollars are converted into the most indispensible and valuable currency that is work.
When we as western civilisation entered into the 'social contract' that is collective living, we signed on to certain freedoms and liberties to be State administered so as to be more effective and far-reaching than our individual selves. In Canada, we give our Governments the responsibility to administer health care to all of our citizens, setting us apart from our closest neighbours to the south. We give the challenge of creating and maintaining our road systems and highway systems to our governments, because they can handle the scope of such a project better than smaller groups or individuals might be able to.
We rely on our governments to hold certain things within the public domain, and deliberately keep things out of the hands of private industry. Our police forces and armies are such examples. They are neccessities, and it is important to maintain those institutions in a non-partisan, non-subjective manour that will benefit the inhabitants of Canada and their values. We grant the government the responsibility of, and trust them to protect us as both as a collective nation and as individuals.
You will always here the loudest voices on the Right preaching about the dangers of 'big government' and too much emphasis on collective rights as opposed to individual rights. They will advocate for lower taxes and less government involvement into our lives. Personally, I want as much government as possible available in my life. I want to see government left, right and center wherever I look. It doesnt mean that I need to become reliant on the government, or that the government has any sort of say in my affairs, it just means that the Government is there to take care of me if I so should need them. The Government as a suppliment to my individual rights is my ideal view of a government.
In a situation like the one we are in right now, facing a global Depression, cutting taxes is a useless and futile approach to take. In fact, if the Harper Government hadnt given out the corporate 2% GST cut disguised as a personal tax cut, Ottawa would have billions more dollars at it's disposal, and the $30B projected-deficit we are now in store for would probably look more like $15-20B. When Harper cut the tax by 1% in July 2007 it cost Ottawa
$400 000 per month in revenue, and and estimated
$4.35B anually. Then he cut it by another 1% in January 2008, costing Ottawa
~$9B or more. It saved individuals negligible amounts of money, and cost the collective valuable leverage in desperate times. As stated above, those tax dollars are much more than just their namesake, they create opportunity and
REAL wealth by providing stimulus to create jobs and then further stimulus by generating spending and consumerism to keep the economy rolling. Power in numbers is the key here, one $100 item is much larger and more useful than one-hundred $1 items. There was also an increase in the personal income tax for the lowest tax pad from 15% to 15.5%.
(3)As I stated above, I do not ascribe to the trickle-down school of economic thought. If you give money to those who already have more than enough money, thats where it will stay. Cut taxes for corporations, wages dont go up automatically - first things first - the stockholders get paid, then the CEO, President, all the big boys up top get their cut. After that, some new investments might take place, which may or may not create jobs. Wages will only go up if the Unions fight for it, that is almost a given in every workplace. Throughout history that has been shown aswell. The people at the bottom don't get heard unless they all chant in unison. They will be lucky to get a fraction of the value they would have received from the dollars had they not been given away in taxcuts and put towards useful social programs or infrastructure investment. Things that would generate real wealth and stimulate the real economy.
Take for example the scenario of giving $100 000 in taxcut subsidies to a widget company. Before any of that goes into creating more widgets, all of those in high management and administration get a piece. Then lets say the remaining 50% goes into making 10 more widgets an hour for that company. None of that money goes to the workers of the factory, and none goes to help the consumers pay for those new widgets. All it does is benefit the company and puff up their bottomline. Now invest $90 000 into retrofitting some old abandoned widget factories into livable, affordable housing. It creates 100 new jobs, creates 20 new living quarters for 40 more people to get off the streets into, and provides stability in their lives. Now say those 40 people shape-up and get jobs, thanks in part to the $10 000 that was invested into local community services aimed at giving tips and tricks to homeless people on how to look become hireable again. What have we done here with that 2nd scenario?
- Created 100 jobs from the construction, providing income for those workers to buy widgets
- Transformed 40 individuals back into productive members of society, allowing them to buy widgets, as well as taking a burden off of themselves and our SP-healthcare system, because they will not freeze in -35 degree Winnipeg winters anymore.
- We created a public asset in the form of real estate for the Government, collecting rents and providing for a profitable sale of the building at a later time, further stimulating the economy on the property tax collected after that sale.
- Created a situation where the widget company profits from increased spending without direct funding from the Government, therefore allowing more production without throwing out tax dollars with no hope of profitable return from the company.
It seems to me a pretty simple choice. Do we play 'Plinko' with our tax dollars and hope the ball lands in the $100 000 cup, or do we place the ball in the cup ourselves? Trickle down theory is fundamentally flawed, and exacerbates the underlying problems with the capitalist linear-model. The bottom line for the widget factory may show more monetary profitability, but it does not take into account the 'externalities' that investing the same dollar amount into
true economic factors provide - i.e. people and property values, long term objectives, long term investment in the economy.
Only Government has the resources and the mandate to execute these objectives. I do not fault private enterprise for these shortcomings, it is to be expected. A Company, in the collective sense, answers first and foremost to its shareholders and administration, not to the workers. A Government is different, seeing as it's shareholder is every single Canadian citizen, and so it's actions will reflect the best interest of all Canadians. This is a wonderful thing, because private companies do not have that same ability, and they both benefit society in very different, very important ways.
The trick is to find the delicate balance between the two.
More later on, I gots tonnes of this Commie shit...
(1) -
Book information from Winnipeg-based McNally-Robinson Booksellers found here.
(2) -
pg. 40, 'Speaking Out: Ideas that work for Canadians', Jack Layton, 2004
(3) -
Globe and Mail article, Harper's Canada Day Gift, (web article)