BLOG NUMBER 70; MAR 8, 2013; INCOME INEQUALITY

INCOME DISPARITY:

There is a growing reality that we were not all born equally. Some children enter the world in luxurious houses with every amenity; others in abject poverty in single parent homes and many in a warm and nurturing environment.

Popular movements range from the widening gap in family income- 'occupy Wall Street'-; college tuition hikes; treaty rights-'Idle no More'-; separatist and independence movements around the world - Quebec, Scotland, Mali, Gaza, Central Africa- are some examples

ON INEQUALITY OF INCOME: 
Excerpts from National Post
, mgurney@nationalpost.com

Researchers at the University of British Columbia have examined who exactly constitutes the much-discussed 1% in Canada. The term refers to the top 1% of income earners in the country, who activists in the Occupy movement (and those of like mind) contend are unfairly accumulating too much of society’s wealth, to the detriment of everyone else. The study did find some support for that theory — the top 1% of Canadian income earners are pulling in 14% of the total earnings of the country. Their average income is $450,000 a year, compared to an average of $36,000 for everyone else.

The study also looked closely into who qualifies for the Canadian 1%. They are overwhelmingly male, generally over the age of 35 and spread across multiple economic sectors. While the average wage of someone in the 1%, as said above, is $450,000, the minimum wage required to enter it is a surprisingly low $230,000 a year. That’s a lot of money, but not huge money. And those making it aren’t the stock brokers and financial executives you’d expect. Indeed, for every banker on the list, you’ll find a dentist or veterinarian.

And that is interesting. Becoming a medical doctor, a veterinarian or a dentist isn’t exactly easy — there are years of schooling, costly education bills and obviously a lot of hard work. But these are certainly accessible careers that anyone can aspire to. Not all of us have the brains or frankly the interest to find success in these fields, but they’re hardly a professional elite that sees more and more power concentrated in fewer, potentially corrupt, hands (the popular stereotype of the financial-sector plutocrat). Indeed, as our population grows (and our pet population along with), there is a constant demand for more doctors, vets and dentists. Their success isn’t about inheriting family wealth, lucky breaks or a broken economic model that rewards using accumulated capital to generate unproductive, and unsustainable, profits just by moving money around. It’s about polishing teeth and spaying cats.

Setting out to become a high-powered investor isn’t something one can just decide to do. Same with CEOs. You need certain inherent skills for that. Not to denigrate our medical professionals, who are of course highly skilled, but entering medicine or dentistry isn’t quite so impossible. Good grades, hard work and determination will give you a fair shot. The Occupiers and student protesters of today, demanding that the rich pay more or that education be free, may well in large part get their way. And if they benefit from it now and go on to enjoy some success later, they may easily find themselves picking up the tab for everyone. Tax the rich might not sound like such a good idea once people realize how low the bar for that really is.

$36000; 99%ers

$460000; 1%ers

Consider the chart below: In 2008 there were a total of 170, 000,000 earners in Canada.
The 99 percenters' data is the top row

	earners	earnings	total earned	rate	group tax paid	each Pays	post tax
	170000	$450,000	$76.5 Billion	80%	$61.2 Billion	$337,500	$112,500
	16830000	$36,000	$605.8 Billion	10%	$60.5 Billion	$3,600	$32,400

This model shows a roughly identical sum of taxes paid by the '1 percent' and the '99 percent'. In order to achieve it, it is necessary to assume the tax rates above.

Would this be a fairer way to distribute income? What would be the incentive to be productive? From where would our leaders and innovators come? Would we become a nation of "Why should I give the extra effort?".

There is an old adage: If you make it too easy to be lazy, dependant or poor, we'll have more of each.

If you tax the 1% at 50% ($225,000 each), and the 99% at 20% ($7200 each) you arrive at roughly the same revenue generation, $120 billion.  The tax burden is clearly a better distribution.

ON TRIBAL INJUSTICE: 
TORONTO SUN

When 82 First Nations chiefs and band councillors make more than the prime minister, all while many of their people live in abject poverty, something is horribly amiss. 

In Alberta alone, for example, 47 chiefs and councillors made more last year than the PM's $317,574. 

The Conservative Government's Bill C-27 is a vital and long-overdue piece of legislation that deserves quick passage so that all Canadians will finally get to know where  the billions in First Nations' grant money goes.

From the outside looking in, and this is what raises many hackles, it would appear that too many chiefs and not enough Indians are living the good life on the taxpayers' dime.  Bill C-27 should clear up the mess up. 

ON SOCIAL ASSISTANCE:

It is my opinion that government / society should only help those making an honest effort to help themselves. The Canadian Conservative Government has taken steps in the right direction with their changes to the rules governing unemployment.

Another change should be centred around a guaranteed family income of $40,000; provided that the head of the family is employed. There should be incentives for small businesses to hire more people. This could be achieved by lowering corporate taxes and eliminating health taxes, as long as the business provides a comprehensive employee health plan.

Unions do nothing to narrow the income gap. If anything, they exacerbate the problem by inflating wages beyond productivity levels; thus causing Canadian products and exports to become non-competitive on a world scale.

Provincial sales taxes are a drag on income inequality. Their utility value is negative. They tax everyone at the same rate, regardless of their income level.

ON THE CYCLE OF POVERTY:

Studies and Statistics show that single parent families are much more likely to live in poverty than two parent families. Many of our troubled neighbourhoods are the result of an acceptance of a matrilinear society; where babies are raised by mothers, aunts and grandmothers . They are left out on the streets at
an early age and come under the influence of gang culture replete with drugs and guns. These children are the product of absentee fathers. Their heroes are gang leaders and members who pride themselves on the number of young 'baby mommas' they have impregnated; rather than the responsibility they might have undertaken in order to become a nurturing parent. Municipalities provide welfare payments, food banks and community centers through programs that are seldom evaluated and affect precious little change.


ON CAPITALISM:

It is not a perfect system; but I can't think of an ideology to replace it. There are evils inherent in a Capitalistic system: Stock manipulation, investment scams, corporate greed are some examples; however, a capitalistic society provides everyone with realistic opportunity. This opportunity does not guarantee reward; hard work does.  For the most part, successful members of our society are those willing to take responsibility for their own welfare and success.


HOW TO HELP SOLVE THE PROBLEM:

1. I am not advocating for handouts. What I am proposing here is a system that enhances a family's income to a level whereby people can live with dignity, with the knowledge that they are contributing members of society and with a desire to improve their lot in life through hard work, sacrifice and initiative.
2. Make University tuition free for everyone. 
3. Channel youth into programs that provide them with knowledge and skills that are required by our society. High School Education should consist of: 2 yrs of liberal arts; 2 yrs of Specialty, Career-oriented courses, 4 months of community service, 4 months of co-op employment and 4 months of travel.  Those students who want to go on to Post Secondary Education, can now make better choices for the future. 
4. Our present Social programs are not working. There is very little oversight by bureaucracies that dole out taxpayer dollars to facilities that do not have any effect on the betterment of needy individuals. Stop politicians for creating 'boondoggles' in order to win votes.
5. Put corrupt politicians in prison.
6. Use Federal and Provincial monies to help build and improve infrastructure in the larger cities; to solve housing crises; to promote education and care for the mentally ill.
7. Incarcerate rapists, child molesters, corrupt politicians, religious missionaries and extremists in a facility north of the Arctic Circle guarded by Polar Bears and high voltage fences. There would be no human guards. Every month drop building supplies, food, a TV and Tylenol  via helicopter and let them fight over them. * NUMBER 7 REPRESENTS TONY'S NOTWITHSTANDING CLAUSE' IN THE FOREGOING.

QUOTE FOR THE WEEK:

“If we have no peace, it is because we have forgotten that we belong to each other.”-MOTHER TERESA

LEMONS TO:

TERESA SPENCE  of Attawapiskat for her phoney hunger strike and lack of responsibility in managing Federal funds of 90 million dollars.

CLIP OF THE WEEK: