Tag Archives: Redistribution

A look at redistribution of wealth from the workers to the non-workers in Canada

Canada election 2011: Conservatives in Blue, Socialists in Red, Communists in Orange
Election 2011: Conservatives in Blue, Socialists in Red, Communists in Orange

I found two examples of policies that promote the redistribution of wealth from producers to non-producers in Canada. I think it’s worth taking a look at their policies so that we understand more about our own redistribution policies.

The first example of redistribution has to do with unemployment insurance, where productive taxpayers who choose low-risk, high-pay jobs must subsidize other citizens who get high-risk, low-pay jobs. Their program is called “Employment Insurance”. Canadians who work have to pay into the system, and when any of them loses their jobs, then they get to take money out of it. Those who work more pay more, those who work less pay less. Those with safe jobs collect nothing, and those with risky jobs collect more.

Is this program fair? In this article from Brian Lilley’s Lilley Pad blog, Canadian columnist Lorne Gunter explains what’s wrong with this program.

Excerpt:

Employment Insurance is a lot of things, but an insurance plan to encourage employment it is not.

For one thing, the premiums aren’t based on the risk of making a claim.

Young drivers pay higher auto insurance premiums because they are much more likely to get in an accident. Yet Canadians in high-unemployment industries and high-unemployment regions make no higher EI contributions than those who live where they are never likely to be without work.

Indeed, those most likely to make EI claims will make far lower lifetime contributions than those who are unlikely ever to claim. That makes EI a welfare program underwritten by a tax on employment, rather than an insurance plan.

In the 1990s, I interviewed a Statistics Canada researcher who had made the study of EI his life’s work. He told me that he had discovered one New Brunswick town of 3,000 people where every adult had made at least one EI claim. Most had claimed three or more times.

In some areas, EI is an accepted part of the culture. It’s that entitlement mentality the Tories’ changes are aimed at breaking.

In the CBC’s fawning 1994 biography of Pierre Trudeau, St. Pierre admitted that one of the goals of his government’s ’70s-era reforms to Unemployment Insurance (as it was more accurately known then) was to enable Canadians to stay in their home regions if they wanted to, even if they were never likely to find steady work there.

So the scheme is also an interregional transfer of wealth — from have to have-not provinces.

Of course, every year thousands of Canadians move from have-not regions to more prosperous areas in search of better jobs and higher pay. So it is not as though everyone who could collects EI to stay put.

But the question is why should hard-working Canadians be compelled to subsidize anyone who refuses to move or turns down locally available work?

It’s very similar to their health care programs, which transfers wealth from producers to health care users – and remember that not all health care is from stuff like car accidents. Abortions, IVF and sex changes are entirely voluntary – based on lifestyle choices.

But this is not the only program that transfers wealth from workers to non-workers. It turns out that there is an entire province of Canada that has a majority of secular socialist slackers who can’t pay their own way, but must instead depend on the rest of Canada to support them.

Eric Duhaime explains in this article on the Lilley Pad.

Excerpt:

Although we live in the same house, we certainly don’t sleep in the same room anymore. Our romantic days are long gone. Quebec and the rest of Canada have grown apart. Young Quebecers have no appetite for constitutional quarrels, although they define themselves more and more as Quebecois and less and less as Canadians. They have even invented the word “decanadianization.”

Conversely, English-Canadians are becoming more and more fed up with paying for Quebec, which receives more than half the money given through the so-called equalization program, the equivalent of $8 billion a year.

The solution might not be to ask Quebec to become an independent nation but to become less dependent on its neighbours and more fiscally autonomous. To calm English Canada down, the equalization formula — which will be reviewed before 2014 anyway — could be modernized.

Canada has evolved over the years. The need for interprovincial welfare is not as necessary as it used to be. The principle of redistribution is part of our Constitution but could focus exclusively on funding very essential social programs, which wouldn’t include $7-a-day daycare or a fully subsidized year of parental leave after the birth of each child.

I think it would be an excellent idea to cut Quebec loose. Whatever goods and services they produce could still be bought by the rest of Canada – if there are any such things. Let them pay for their own exorbitant abortion and day care costs, for a start.

Why am I posting about Canada? I think it’s important for us to look at other countries so that we understand how public policies that are sold to us as “compassionate” actually punish hard work, thrift and risk-taking while at the same time rewarding ignorance, wastefulness and sloth. In fact, one could argue that Obamacare itself is nothing more than a way to transfer wealth from those who are take care of their health and work hard for their money, to those who are unemployed and want free contraceptives, abortions and sex changes. You can get all three of those things in the Canadian province of Ontario, and in the UK as well. But the UK goes even further and provides taxpayer-funded IVF and breast implants. This is what liberal compassion really means: pillaging those who sacrifice their leisure to work, in order to buy votes from unproductive, reckless and lazy special interest groups.

Who gives more to charity? Religious people or secular people?

Barbara Kay explains in the National Post.

Full text:

No matter where you live, charity begins at home. But, as we learn from the Fraser Institute’s newly released annual report on charitable giving, the question of where charity ends depends on where you live. For the 13th year in a row, Quebec has come out on the bottom of the Fraser Institute’s charity scale.

Of the provinces, Manitobans are the biggest givers, with 26% of those filing taxes donating to a registered charity, and 0.89% of total income being donated. Saskatchewan and Prince Edward Island tied for second place. Ontario, Canada’s largest province, tied Alberta for fourth place with 24% of its tax filers donating 0.74% of total income to registered charities.

And then there’s Quebec. Oh dear. Only 21.7 % of Quebecers claimed donations to registered charities, and gave only 0.30% of their total income. On average dollar value donated, Alberta led with $2,112. And Quebec limped in at $606, half the national average of $1,399.

Lest Albertans and Manitobans get swelled heads, they should know that no Canadian provinces are a patch on the Americans. Almost 27% of American tax filers donated to registered charities, compared with 23% of Canadians. Countrywide, Americans gave 1.32% of their aggregate personal income to charity, more than double the 0.64% that Canadians gave.

What’s up with these statistics? Aren’t we supposed to be kinder and gentler than Americans?

Well, one clue to deconstructing the Canadian figures, and in particular Quebec’s lousy performance, comes from the news release: “Utah was by far the most generous jurisdiction in North America, with 33.4% of tax filers donating 3.09% of the total income earned in the state, nearly three-and-a-half times the share of aggregate income donated by Canada’s top province (0.89%), Manitoba.”

Why? Here’s a clue: Mormons constitute about 60% of Utah’s population. Mormons give a lot to charity, in part because of their tithing system. And, countrywide, it’s not just Mormons. The United States is a religious country – and research tells us that observantly religious people generally give more to charity (both in time and money) than non-religious people. Canada’s secularism makes it a less generous place, no matter what we tell ourselves about the virtues of being Canadian.

Another well-observed sociological phenomenon is that big government tends to discourage charity – both because people have less money to give to charity in high-tax jurisdictions, and because coddled nanny-state citizens believe that taking care of the poor huddled masses has become government’s job. Statism dampens the impulse to be generous at an individual level.

Quebec scores high on both secularism and nanny-statism. In fact, it is the least religious of the Canadian provinces (and in fact the most militantly anti-religious). Quebec also is the most statist (and highly taxed) of the provinces. Quebecers figure their taxes are taking care of all the social problems, or should be taking care of them, and it is therefore no surprise that they are the least likely to take responsibility for the afflictions of others.

Taking personal responsibility for alleviating the sufferings of others is the mark of a mature individual. Statism tends to suffocate the blessing of empathy, and thereby promotes civic immaturity. One more in a long litany of reasons for working to bring down the size of government.

These findings echo Arthur Brooks’ study on who gives most. Religious people give more than secular people, and that just stands to reason, given that the former generally takes morality to be objective, and the latter generally takes it to be subjective.

What working at Wal-Mart taught a young conservative woman about the poor

My friend Jose sent me this wonderful article from The College Conservative.

Excerpt:

During the 2010 and 2011 summers, I was a cashier at Wal-Mart #1788 in Scarborough, Maine. I spent hours upon hours toiling away at a register, scanning, bagging, and dealing with questionable clientele. These were all expected parts of the job, and I was okay with it. What I didn’t expect to be part of my job at Wal-Mart was to witness massive amounts of welfare fraud and abuse.

I understand that sometimes, people are destitute. They need help, and they accept help from the state in order to feed their families. This is fine. It happens. I’m not against temporary aid helping those who truly need it. What I saw at Wal-Mart, however, was not temporary aid. I witnessed generations of families all relying on the state to buy food and other items.  I literally witnessed mothers of small children asking their mothers if they could borrow their EBT cards. I once had a man show me his welfare card for an ID to buy alcohol. The man was from Massachusetts. Governor Michael Dukakis’ signature was on his welfare card. Dukakis’ last gubernatorial term ended in January of 1991. I was born in June of 1991. The man had been on welfare my entire life. That’s not how welfare was intended, but sadly, it is what it has become.

Here are just two short anecdotes:

a) People ignoring me on their iPhones while the state paid for their food. (For those of you keeping score at home, an iPhone is at least $200, and requires a data package of at least $25 a month. If a person can spend $25+ a month so they can watch YouTube 24/7, I don’t see why they can’t spend that money on food.)

d) A man who ran a hotdog stand on the pier in Portland, Maine used to come through my line. He would always discuss his hotdog stand and encourage me to “come visit him for lunch some day.” What would he buy? Hotdogs, buns, mustard, ketchup, etc. How would he pay for it? Food stamps. Either that man really likes hotdogs, or the state is paying for his business. Not okay.

I urge you with every fiber of my body to click through and read the true story of Welfare Queen #1 and Welfare Queen #2. Read them, and weep. Just because someone is poor, it doesn’t mean that they are automatically a good person. Maybe they are poor because they are irresponsible and selfish. Had you ever considered that? In any case, it’s not the government’s job to hand out money without knowing anything about the person who is getting the money. Government should leave the money in the hands of people who earn it, and let us decide who deserves to receive charity. (At the most, they should give us a tax deduction for charity up to 10% of our gross income to encourage more private charity)

But wait! There’s more!

From Human Events, toll workers being paid over $100,000 a year by the government.

Excerpt:

Ladies and gentlemen, meet Princesella Smith, who raked in $89,599 for operating the toll lanes at the George Washington Bridge in 2011.

Smith isn’t alone.  An investigation by the New York Post revealed that another toll booth operator pulled in a whopping $102,670 in 2011, $40K of that money coming in overtime.  In total, as the Post notes, there are at least 24 New York and New Jersey workers who have raked in more than $80,000 as “public” workers at a job that requires us to hand them even more of our money.

[…]Besides excessive wages to people whose only skill requirement is to sit on a stool and count and collect dollar bills, tax dollars reserved for transportation uses have gone to a panoply of nonessential programs.  As Ronald Utt of The Heritage Foundation points out, the “highway trust fund” has been raided to pay for Indian reservations, historic preservation sites, Appalachian and Mississippi Delta development, roadside beautification, bicycles, hiking paths, university research, and—the granddaddy of all expenses—feeding the $425 million beast that is the Department of Transportation.

The Port Authority (PA), for instance, employees a gardener for $94,000 and a blacksmith for $146,000 a year.  Heck, there are even retired PA employees who are making around that amount by cashing in on unused vacation and comp time.  (Here’s an idea:  As we’re facing budget deficits well into our future, how about requiring public employees to use their vaca time … or lose it.  No cashing in allowed.)

The larger problem highlighted with transportation spending, as Ronald Utt underscores, is the concept of public ownership.  A paltry 65% of highway taxes collected actually go to making driving a more pleasant experience for commuters.  The rest is squandered on whatever fancies a politician’s spending appetite at a given moment.  As the number of people driving has increased on the nation’s roads and highways (up 71% since 1970), lawmakers in Washington, D.C., and around the country have funneled money to stupid bike lines and high-speed rail debacles.

If I were President, I would immediately cancel all pensions for retired public sector workers and outlaw public sector unions.  What a colossal waste of money.

UPDATE: John Hawkins just posted a column entitled “The Five Things You Can Learn From Wal-Mart“.