the social and economic setting

The Social and Economic Setting

Chapter 3

How to Judge a Successful Country

Expectations of Government

Material Well Being

Equality

Quality of Life

Independence

Material Well-Being

Comparisons to the US usually make Canadians feel badly about their economic well-being

On a global scale, we are among the 10 richest countries in the world.

The question is whether we are continuing our material well-being or falling behind other countries?

Change in Canadians Jobs

Initially Canadian jobs relied on the primary sector, wood, water, agriculture.

Moved to industrial jobs in Eastern Canada with factory work.

Service Sector

Criticism of free trade was that the high-paying manufacturing jobs would be lost to low-paying service sector jobs.

McJobs. The reality is far

different.

Class definitions Bourgeoisie: owners of the means of

production. Proletariat: the workers. Small petite bourgeoisie: farmers,

small-business people, self-employed professionals.

Middle class: civil servants, teachers, nurses, and other salaried professionals.

Change in relative income position 1989 to 1994

# of persons % of total

moved up to higher quintile

5381 29

moved down to lower quintile

3077 17

no change in quintile 8111 44

no income in 1994 1749 10

Total 18318 100

Rich getting richer?

More than half of Canadians at the bottom of the income distribution in 1989 managed to better their relative income position by 1994.

Of the top one-fifth income recipients in 1989, 70% remained in the highest quintile in 1994.

Poor getting poorer? Overall, 29% of Canadians receiving

income in 1989 were in a better relative income position in 1994.

On the other hand, 17% moved to a lower position in the income distribution.

A large proportion of the 1989 income recipients (44%) were in the same quintile in both years.

Is Class a static existence?

Much of the improvement in relative income position can be explained by aging (1989 income recipients were five years older in 1994).

Earnings - the largest component of income for most Canadians - usually increases as individuals age through their younger and middle years and then decreases in later life.

Women Women were more likely than men to

improve their relative income position. Just over a third of all female income

recipients in 1989 moved up a quintile by 1994, while only a quarter of males advanced.

More than half (58%) of the women receiving income in 1989 remained in the same quintile or dropped to a lower one, while 64% of the male income recipients were in the same relative income position or moved down.

Women Improving The tendency for women to move up the income

distribution more often than men may simply reflect where women are to begin with - in the lower quintiles.

In both 1989 and 1994, there was a larger proportion of women in the lowest quintile. On the other hand, a higher proportion of men were in the highest quintile in both years.

There was a shift, however, in these proportions from 1989 to 1994. The proportion of women in the lowest quintile decreased from 69% in 1989 to 66% in 1994. In the top quintile, the proportion of women increased from 22% to 28%.

Power, Class and Voting

Upper class comprises 2.5 of the electorate.

Working class comprises 67.5 percent. Poor represents 15 percent of the

electorate.

The Corporate Elite

There are few at the very top. These few have interlocking companies

and control huge empires. There is cross-ownership and board

membership between corporations and banks.

Demands of the Corporate Elite

Maximize profits. Reduce government intervention in the

economy. Low taxes. Limit regulations.

How these demands help all Canadians Individuals own companies. Corporations

do not pay taxes, but taxes are paid on incomes earned from companies as well as on shareholder earnings.

Low corporate taxes translate to more jobs.

The Working Class

Petite bourgeoisie wealthier than the new middle class and have tax breaks to benefit.

Self-employed persons own the means of their production and are therefore more likely to have false consciousness.

New Middle Class

Salaried semi-professionals Unionized Well-educated Economically comfortable Bear the brunt of the tax burden. Middle class is also the largest group.

Working Class

Manual or routine work Receive less income than middle class Often less qualified, or conduct non-trade

work. Large differences between unionized and

non-unionized working class.

The Poor

Those living below the poverty line. In Canada, no official poverty line exists. Statistics Canada uses a low income

cutoff and cautions against using this as a poverty line.

What does it mean to be poor in Canada? LICO is a relative measure, and therefore

by definition, there will always people living below this measurement.

Some measurements of poverty examine what people have rather than income levels.

Do Classes exist in Canada?

Can class consciousness be measured in ways other than income, education, or occupation?

Do Canadians vote according to class interests?

Is there mobility from one class to another in Canada?

Quality of Life

We have low infant mortality rates High life expectancy 75 (M) 81 (F) Homicide rate is low, violent crime on the

decline. Fewer homeless people compared to other

countries. How do we explain increased use of food

banks?

Welfare Gap vs. Welfare Adequacy

Independence

Self-governmentPower to enter foreign treaties (1931)Power to amend the constitution (1982)power to interpret the constitution (1949)

Economic relations Cultural independence

Summary

Measuring our success as a nation is not an easy task.

While we have equality rights, relative wealth and longevity, problems exist.

Is Canada the best country to live, is probably not the best question.

A better question is whether Canadians are happy with the compromises made.

Summary

Workers provide the means for wealth accumulation for the owners.

Owners obtain disproportionate attention and resources to government.

Government’s placate workers and poor to gain votes.