Showing posts with label minimum wage. Show all posts
Showing posts with label minimum wage. Show all posts

2023-08-19

Imagining A Post Capitalist World

This is not meant to be a comprehensive analysis but an imagining of some of the features of a post capitalist world.

OK lets get this over with first. The first thing we will notice is the numbers we use to measure the success of a capitalist economy, GDP, GNP and economic growth will look bad. That is because the goals of the new economy will not be excessive production, consumption, energy waste and unsustainable growth. The new economy will be based on people not stuff. While our so-called standard of living will decline our quality of life will increase.

Because of higher minimum wages and a Guaranteed Basic Income everyone will have at least a comfortable modest life with adequate housing and all their basic needs met because there are enough resources to provide this when there is not excessive inequality and waste by the excessively wealthy.

Excessive inequality will be eliminated because of an aggressive progressive tax system based on the principle that everyone should contribute to the society/economy based on their ability.

Everyone, not just the very wealthy, will finally benefit from the use of machines to increase productivity and most drudge work will now be done by machines. The effect will be that everyone will have reduced working hours for a shorter period of their life. Work will no longer be a necessity to survive but something people crave for the fulfillment it brings to their lives.

Because of a societal decision all work requiring intelligence or decision making will be reserved for human beings.

Elimination of the exploitative capitalist practice of producing goods in low wage countries will see the elimination of excessive wasted energy transporting goods as most food will be produced within 100 kilometres of where it is consumed and other goods within 500 kilometres.

With increased time for themselves education will be an important part of everyone’s life and as with health care, treated as a public good and paid for collectively. Arts and culture, theatre and music, will be emphasized with the emphasis on local artists and productions (rather than overpriced “superstars”) as well as outdoor recreation.

Small businesses, where the owner earns his income by working in the business, will be encouraged and supported. For large enterprises, ownership and control of the means of production (factories, computer facilities, etc) will reside with the workers producing the products or providing the services, most often through co-operatives, except for public services like education, health care and public utilities where control and ownership will reside with the people through their democratically elected governments. All workers will have an effective, not just theoretical, right to join a union and bargain collectively.

The overall philosophy of the society/economy will be "from each according to his ability, to each according to his needs".

2022-04-13

Now Comes The Necessary Part Ontario Edition

Nevertheless, and irrregardless of and notwithstanding that federal-provincial jurisdiction exists the actions that are necessary for the next Ontario government to take are the same as those the newly elected federal government needs to take. It’s the same electorate and the same Canadians and the same solutions that are required.

To that end I am simply annotating my recent blog post to establish its relevancy to the Ontario election.


Now Comes The Necessary Part

We can argue all we want over whether the election was necessary but what is definitely necessary is the government tackling the pressing issues of the day, issues that have been pressing for decades and in some cases since before Confederation.

Indigenous Reconciliation

This is clearly an area where the primary jurisdiction is federal but that does not change the fact that both the federal and provincial Crowns have been responsible for the encroachment on First Nation's Lands and the denial of their inherent rights. The Ontario government has a clear role to play in reconciliation, along with the people of the province.

The longest standing issue in Canadian political history is the plight (struggled over what language to use here) of the original inhabitants of North America and the effects of European “discovery” and colonization.

[Side note: I often think the dictionary should define “discover” as “stumble upon”.]

The recent discovery of 150 (latest count Canada wide 6,000 and growing) unmarked graves at an Indian Residential School in British Columbia has focused Canadians thoughts on the treatment of North America’s indigenous peoples from unfairly negotiated treaties to the lack of clean drinking water on reserves.

People are finally realizing that it was not simply a problem of a few bad people abusing a few children in a few schools but a systemic policy of cultural genocide (“take the Indian out of the Indian”) seen as, in the words of the Indian Affairs Department, the “final solution to the Indian problem”. The facilities included such high levels of neglect and abuse that the likelihood of dying in an Indian Residential School was slightly higher than the likelihood of dying as a soldier in World War II.

Of course the term school for these facilities is inappropriate. Schools have graduates, not survivors.

It is no wonder there are problems in indigenous communities when the destruction of indigenous families and culture was government policy for so long.

Governments have committed themselves to reconciliation but what will that be. From my euro-centric viewpoint I would see it as a new social contract between Indigenous Peoples and the rest of Canada, something that will have to be achieved by consensus. But it will be up to Indigenous communities to decide when reconciliation has been achieved as they are the only ones capable of judging that.

[Another side note: Until then the flags should stay down.]

Health Care

Health care is an area where the primary responsibility is provincial. Indeed the national health care program we have now was pioneered by Saskatchewan under provincial jurisdiction. There is nothing beyond political will preventing the new Ontario government from implementing the measures cited below as an example to the rest of Canada.

Public health care, or Medicare as we Canadians call it, was first implemented in Saskatchewan in the form of hospital coverage in 1947, followed by full health care coverage following the 1960 provincial election. Federally the Medical Care Act was passed in 1968, followed by the Canada Health Act in 1984 which affirmed and clarified five founding principles: public administration, comprehensiveness, universality, portability and accessibility.

However in the over 50 years since then the system has stagnated, indeed it has gone backwards with the federal level of funding decreasing over time. We need to finish building the system and we cannot wait another 50 years to do it incrementally. The government must act now to extend the system to include:

- at least 50% federal funding

- a family doctor for every Canadian

- full mental health care, including psychology services where medically necessary

- full long term care for those requiring residential care

- full prescription drug coverage

- full eye care coverage

- full dental care coverage

- full physiotherapy coverage where medically required

Climate Change

Combating climate change will require a myriad of policy decisions that involve both federal and provincial governments, The new Ontario government must move to address this in the areas under it's jurisdiction.

The first warnings of climate change and it’s effects were noted over 50 years ago and the warnings have become more dire year after year with governments responding with lots of promises but little real action. The irony of all this delay is that the longer we wait to act, the more drastic actions we have to take to respond to this crisis. Those against taking drastic measures should have been calling for us to take action sooner rather than arguing against taking action at all.

The idea of starting new fossil fuel projects at a time when we need to start phasing out fossil fuels is simply ridiculous yet it is treated as a serious option in industry and government circles. How drastic to we want the measures to have to be when we finally realize we have to take action before it is too late.

From an economic point of view there are a tremendous number of opportunities available in the renewable energy sector. Call it whatever you want but the concept of a Green New Deal may be the economic and environmental salvation of our future.

Inequality & Under-taxation

Inequality requires tackling the problem at both ends. At the bottom we need to bring workers income and wealth up. As most workers and jobs fall under provincial jurisdiction it is clearly the Ontario government’s responsibility to increase minimum wages and employment standards, the most important being to make it easier for all workers, especially those in the so-called “gig economy”, to unionize. Also it is well within the province’s jurisdiction to establish a guaranteed basic income to eliminate poverty.

At the other end of the scale, the overpaid and overwealthed, the province has all of the tax measures available to them that the federal government has to redistribute income. To the extent that the income tax system is harmonized with the federal system the province always has the option to do as Quebec has and separate it’s income tax system from the federal one.

Ever since the creation of capitalism there has been inequality because the system is designed to create and reward inequality.

However I have to say that during my lifetime (since the 1950s) it has become noticeably worse. One factor is that the wealthy capitalists have moved the means of production to low wage countries so that their portion of the rewards of labour has increased, while the jobs left behind in North America are lower wage jobs.

They have invented a whole new sector of the economy based on piece-work to avoid paying the existing minimum wages or providing employee benefits and they give it a snazzy sounding name, the gig economy, to try to convince people they are freeing them from wage drudgery and letting them be their own boss when in reality the corporation has more control over them than if they were unionized wage workers.

At the same time the taxation of corporations and the wealthy has declined, partly in response to corporate blackmail threatening to take more jobs elsewhere if they are forced to pay fair levels of taxation.

It is also because wealth equals political power and excessive wealth equals excessive political power and that power is used to enact polices that favour the wealthy.

Governments need to enact policies that are actually designed to serve working people and dedicated to their well being, policies that will counter inequality and under-taxation.

Let us start with decent minimum wages and labour laws designed to encourage and assist workers in organizing unions. Minimum wages should not be designed to keep workers just above the poverty line but designed to provide workers with a middle class income. Our economy has the money to do that it just requires a little redistribution from those with excessive wealth to the people that actually produce that wealth.

We also need a guaranteed basic income for those that for whatever reason are unable to be employed at any particular time.

We can increase employment by redistributing money from the private sector to the public sector via a tax on excessive income and wealth to provide jobs building public infrastructure and affordable housing for everyone.

As for taxation, we can start by raising the level at which people start paying income taxes and increase the amount of tax paid in the higher marginal tax brackets. We also need dedicated taxes on excessive levels of income and wealth. I would tax away all excessive income (above $1,000,000 annually and all excessive wealth (above $100,000,000) but I do not expect any government to go near that. However that leaves a huge amount of room for a wealth tax that will have little practical impact on the standard of living of the excessively wealth while providing great benefit to the common good.

This is not in any way proposed as a punishment but just a means for them to create a better country/world with no impact on their personal well being.

Electoral Reform

Ontario and the federal government currently share the same Single Member Plurality (SMP) electoral system. Both need to change. There is no reason Ontario cannot act first and set an example for the federal government and the other provinces.

Winston Churchill is often quoted as saying “democracy is the worst form of Government except for all those other forms”.

Ever since democracy (“rule of the people” in Greek) was invented by they Greeks we have been looking for ways to make it less worst.

[Yet another side note: My Eurocentric education tells me democracy was invented by the Greeks but I would not be surprised if forms of democracy were being used in non-European cultures before then.]

The key to any democracy is the electoral system, how the people actually select the people to represent them in government.

The system we use now is Single Member Plurality (SMP), more often referred to as First Past The Post (FPTP), an objectively silly name. In Single Member Plurality systems the country (or other jurisdiction) is broken into constituencies and each constituency chooses a representative to send to the legislature. Whichever candidate receives the most votes becomes that representative. We use the term plurality because the candidate does not have to receive a majority of votes cast, just more than any other candidate.

The main benefit of SMP is that voters elect local representatives.

The main drawback is the elected candidates could possibly be the last choice of more voters than they are the first choice. Also theoretically a party could elect 100% of MPs with less than 50% of the total votes, though in practice a typical result may be more like 60% of MPs with 40% of the votes.

There are two main proposals to replace this system: Ranked Ballots (preferred by the Liberals but not in their platform) and Mixed Member Proportional (proposed by the NDP in their platform).

Ranked Ballots solves one of the problems of SMP in that it avoids the last choice of a majority of voters being elected as MPs or forming a government. It however will likely create an even less representative House of Commons based on voters first choice party preferences.

Under Mixed Member Proportional (MMP) a majority of Members of Parliament are elected in the same manner as SMP to represent defined constituencies. Then an additional number are selected from party lists in order to balance the percentage of MPs from each party with the percentage of total votes received by each party (often referred to as the “popular vote”) to form a House of Commons representative of the views of the total population. Under MMP there is usually a threshold of percentage of total vote required to be allotted seats, often 5%, to avoid radical fringe groups having representation. However if that threshold is met a party receives representation. But is not representation of all voters what democracy is about.

One of the main criticisms of MMP is that it is unlikely to provide one party majority governments (unless a majority of voters support one party). But is that not what democracy is supposed to provide, a legislature that reflects the will of the people. Would we not be better off if parties learned to work together for the common good rather than simply engaging in political posturing. By reducing the power of a single party in government you reduce the power of a single person (the majority party leader), and perhaps get back to actual representative government rather than the trend of effectively electing (even if indirectly) a dictator to rule over Parliament.

Changing our electoral system to a more democratic one, MMP, is the most important thing the government can do.

Conclusion

These are not the only issues of importance but ones that have not been properly addressed over decades and more. We need the political will to address them all now without the excuse that the solutions need to be implemented incrementally.

Both the federal and the new Ontario government need to act urgently on these priorities.

2021-09-24

Now Comes The Necessary Part

 We can argue all we want over whether the election was necessary but what is definitely necessary is the government tackling the pressing issues of the day, issues that have been pressing for decades and in some cases since before Confederation.

Indigenous Reconciliation

The longest standing issue in Canadian political history is the plight (struggled over what language to use here) of the original inhabitants of North America and the effects of European “discovery” and colonization.

[Side note: I often think the dictionary should define “discover” as “stumble upon”.]

The recent discovery of 150 (latest count Canada wide 6,000 and growing) unmarked graves at an Indian Residential School in British Columbia has focused Canadians thoughts on the treatment of North America’s indigenous peoples from unfairly negotiated treaties to the lack of clean drinking water on reserves.

People are finally realizing that it was not simply a problem of a few bad people abusing a few children in a few schools but a systemic policy of cultural genocide (“take the Indian out of the Indian”) seen as, in the words of the Indian Affairs Department, the “final solution to the Indian problem”. The facilities included such high levels of neglect and abuse that the likelihood of dying in an Indian Residential School was slightly higher than the likelihood of dying as a soldier in World War II.

Of course the term school for these facilities is inappropriate. Schools have graduates, not survivors.

It is no wonder there are problems in indigenous communities when the destruction of indigenous families and culture was government policy for so long.

Governments have committed themselves to reconciliation but what will that be. From my euro-centric viewpoint I would see it as a new social contract between Indigenous Peoples and the rest of Canada, something that will have to be achieved by consensus. But it will be up to Indigenous communities to decide when reconciliation has been achieved as they are the only ones capable of judging that.

[Another side note: Until then the flags should stay down.]

Health Care

Public health care, or Medicare as we Canadians call it, was first implemented in Saskatchewan in the form of hospital coverage in 1947, followed by full health care coverage following the 1960 provincial election. Federally the Medical Care Act was passed in 1968, followed by the Canada Health Act in 1984 which affirmed and clarified five founding principles: public administration, comprehensiveness, universality, portability and accessibility.

However in the over 50 years since then the system has stagnated, indeed it has gone backwards with the federal level of funding decreasing over time. We need to finish building the system and we cannot wait another 50 years to do it incrementally. The government must act now to extend the system to include:

- at least 50% federal funding

- a family doctor for every Canadian

- full mental health care, including psychology services where medically necessary

- full long term care for those requiring residential care

- full prescription drug coverage

- full eye care coverage

- full dental care coverage

- full physiotherapy coverage where medically required

Climate Change

The first warnings of climate change and it’s effects were noted over 50 years ago and the warnings have become more dire year after year with governments responding with lots of promises but little real action. The irony of all this delay is that the longer we wait to act, the more drastic actions we have to take to respond to this crisis. Those against taking drastic measures should have been calling for us to take action sooner rather than arguing against taking action at all.

The idea of starting new fossil fuel projects at a time when we need to start phasing out fossil fuels is simply ridiculous yet it is treated as a serious option in industry and government circles. How drastic to we want the measures to have to be when we finally realize we have to take action before it is too late.

From an economic point of view there are a tremendous number of opportunities available in the renewable energy sector. Call it whatever you want but the concept of a Green New Deal may be the economic and environmental salvation of our future.

Inequality & Under-taxation

Ever since the creation of capitalism there has been inequality because the system is designed to create and reward inequality.

However I have to say that during my lifetime (since the 1950s) it has become noticeably worse. One factor is that the wealthy capitalists have moved the means of production to low wage countries so that their portion of the rewards of labour has increased, while the jobs left behind in North America are lower wage jobs.

They have invented a whole new sector of the economy based on piece-work to avoid paying the existing minimum wages or providing employee benefits and they give it a snazzy sounding name, the gig economy, to try to convince people they are freeing them from wage drudgery and letting them be their own boss when in reality the corporation has more control over them than if they were unionized wage workers.

At the same time the taxation of corporations and the wealthy has declined, partly in response to corporate blackmail threatening to take more jobs elsewhere if they are forced to pay fair levels of taxation.

It is also because wealth equals political power and excessive wealth equals excessive political power and that power is used to enact polices that favour the wealthy.

Governments need to enact policies that are actually designed to serve working people and dedicated to their well being, policies that will counter inequality and under-taxation.

Let us start with decent minimum wages and labour laws designed to encourage and assist workers in organizing unions. Minimum wages should not be designed to keep workers just above the poverty line but designed to provide workers with a middle class income. Our economy has the money to do that it just requires a little redistribution from those with excessive wealth to the people that actually produce that wealth.

We also need a guaranteed basic income for those that for whatever reason are unable to be employed at any particular time.

We can increase employment by redistributing money from the private sector to the public sector via a tax on excessive income and wealth to provide jobs building public infrastructure and affordable housing for everyone.

As for taxation, we can start by raising the level at which people start paying income taxes and increase the amount of tax paid in the higher marginal tax brackets. We also need dedicated taxes on excessive levels of income and wealth. I would tax away all excessive income (above $1,000,000 annually and all excessive wealth (above $100,000,000) but I do not expect any government to go near that. However that leaves a huge amount of room for a wealth tax that will have little practical impact on the standard of living of the excessively wealth while providing great benefit to the common good.

This is not in any way proposed as a punishment but just a means for them to create a better country/world with no impact on their personal well being.

Electoral Reform

Winston Churchill is often quoted as saying “democracy is the worst form of Government except for all those other forms”.

Ever since democracy (“rule of the people” in Greek) was invented by they Greeks we have been looking for ways to make it less worst.

[Yet another side note: My Eurocentric education tells me democracy was invented by the Greeks but I would not be surprised if forms of democracy were being used in non-European cultures before then.]

The key to any democracy is the electoral system, how the people actually select the people to represent them in government.

The system we use now is Single Member Plurality (SMP), more often referred to as First Past The Post (FPTP), an objectively silly name. In Single Member Plurality systems the country (or other jurisdiction) is broken into constituencies and each constituency chooses a representative to send to the legislature. Whichever candidate receives the most votes becomes that representative. We use the term plurality because the candidate does not have to receive a majority of votes cast, just more than any other candidate.

The main benefit of SMP is that voters elect local representatives.

The main drawback is the elected candidates could possibly be the last choice of more voters than they are the first choice. Also theoretically a party could elect 100% of MPs with less than 50% of the total votes, though in practice a typical result may be more like 60% of MPs with 40% of the votes.

There are two main proposals to replace this system: Ranked Ballots (preferred by the Liberals but not in their platform) and Mixed Member Proportional (proposed by the NDP in their platform).

Ranked Ballots solves one of the problems of SMP in that it avoids the last choice of a majority of voters being elected as MPs or forming a government. It however will likely create an even less representative House of Commons based on voters first choice party preferences.

Under Mixed Member Proportional (MMP) a majority of Members of Parliament are elected in the same manner as SMP to represent defined constituencies. Then an additional number are selected from party lists in order to balance the percentage of MPs from each party with the percentage of total votes received by each party (often referred to as the “popular vote”) to form a House of Commons representative of the views of the total population. Under MMP there is usually a threshold of percentage of total vote required to be allotted seats, often 5%, to avoid radical fringe groups having representation. However if that threshold is met a party receives representation. But is not representation of all voters what democracy is about.

One of the main criticisms of MMP is that it is unlikely to provide one party majority governments (unless a majority of voters support one party). But is that not what democracy is supposed to provide, a legislature that reflects the will of the people. Would we not be better off if parties learned to work together for the common good rather than simply engaging in political posturing. By reducing the power of a single party in government you reduce the power of a single person (the majority party leader), and perhaps get back to actual representative government rather than the trend of effectively electing (even if indirectly) a dictator to rule over Parliament.

Changing our electoral system to a more democratic one, MMP, is the most important thing the government can do.

Conclusion

These are not the only issues of importance but ones that have not been properly addressed over decades and more. We need the political will to address them all now without the excuse that the solutions need to be implemented incrementally.

2020-09-04

Is Charity Evil

We supposedly live in a major developed industrialized country which is one of the seven most advanced economies in the world, yet:

many people depend on charity to be fed and not starve,

many people depend on charity for a place to sleep so they do not freeze to death in winter,

many people depend on charity to have a place to stay to protect them from being killed by their domestic partners,

despite our so-called public health care system we depend on charity to fund major medical research and many of our public hospital are in permanent fund raising mode to provide the beds and equipment they need to provide that care,

even our public education system depends on charitable fund raising to provide such basic amenities as library books, as well as extra programs, leading to a class-based public education system depending on the wealth of the neighbourhoods schools are located,

and the list goes on and on.

Do we not have a social responsibility to provide these basic human rights to our citizens. Should we not be funding these basic human rights collectively through a progressive tax system.

Who really benefits from charity.

Certainly corporations use charitable donations not just for tax benefits but for brand image enhancement. The wealthy use it not just as a method of tax management but also personal promotion. But it no doubt also provides a way of easing one's guilt for one's greed.

What would it be like for society if instead of making tax deductible charitable donations corporations paid all their employees a living wage. What would it be like for society if instead of making tax deductible charitable donations the wealthy paid their fare share of taxes, including a wealth tax.

What would it be like if we did not need charity because we fully funded a complete public health care and education system from a progressive tax system where everybody paid their fair share.

What would it be like if we eliminated the need for charity by establishing a minimum wage and a guaranteed basic income that allowed everyone to have a decent standard of living.

What would it be like if we did not have charity because we didn't need charity because we recognized as a society that everyone had the right to a decent quality of life.

What is the role of government if not to ensure citizens have a decent quality of life.

Does charity enable government to shirk that responsibility.

Is charity evil.

2020-08-31

Lessons We Must Learn From COVID-19 to Build a Better Society

Community is the key to the future. Those societies that are fairing best in responding to COVID 19 are those with a strong sense of community. America's dismal response is not just because of Trump, but also due to the country's overemphasis on individualism over community.

Our public health care system, part of our collective sense of community, was key to our response. It made our ability to control the outbreak possible. But it is still flawed and could not respond was well as it should have because it is underfunded and incomplete. We saw that particularly in the for profit long term care sector, measured in body counts. We must complete the system by extending it to prescription drugs, vision and dental care and most importantly long term care of the elderly and home care. We must eliminate profit from the provision of health care so that patient care and profits are never competing for funds. Most importantly we must realize that health is the most important priority for everyone and under-funding health care in order to promise lower taxes is in nobody's best interest.

Our economic safety net was the next most important factor in our successful response. Unfortunately we did not have a proper system in place to respond and the government had to respond with a series of patchwork measures put together quickly which, while it managed to avoid the worst of our southern neighbours problems, it still left the most disadvantaged, well still disadvantaged. That series of measures, as necessary as they were, increased both the deficit and national debt because the government, that has been under-taxing the wealthy for decades, did not have the financial capability it should have.

What we needed and what we need is a basic guaranteed annual income, and not just one to keep people barely above the poverty line but one designed to provide a decent quality of life for everyone.

We say 'we are all in this together" but we clearly are not equally in this together and never will be as long as we live in a society of massive economic inequality.

We talk about groups such as seniors being more at risk but in reality the biggest risk factor with COVID 19 is economic status. Those placed at highest risk, our so-called front-line heroes, those responsible for producing and providing our food and goods, are working in cramped and unsafe conditions, along with those working in high risk long term care facilities, are the biggest group of COVID 19 victims. And these are the people most susceptible to the economic consequence of COVID 19, often living from paycheck to paycheck. A few extra dollars per hour for a few weeks is not the solution.

We must deal with the economic inequality in our society by raising incomes at the bottom and reducing them at the extreme top end. CEOs of corporations who make their profits and fortunes from minimum wage earners simply do not earn the millions of dollars per year they are paid. They are paid that because of an unequal economic and political system. We must reform our tax system so that those that can afford to pay more do and those at the bottom pay less at the same time as we reduce the gap between the bottom and the top.

We need to raise minimum wages to a level that provides a decent quality of live and use the tax system to redistribute the wealth of the excessively overpaid. We cannot build the type of community and society we need on a basis of extreme inequality.

We also cannot build the society we need without concern for the environment it lives within and without addressing the challenge of climate change.

We need to build a new society, based on community rather than individualism, if we want to meet the challenges of the future and this includes a move from more individual spending to more collective spending. Fundamental change is required if we are to survive the challenges of the future and thrive within it.

Also of Interest: