Social Justice: Let’s create a better world!

REFLECTIONS PRESENTED ON THE INTERNATIONAL DAY FOR SOCIAL JUSTICE

By Auréa Cormier (aureacormier@rogers.com) February 20th, 2014

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Message from the United Nations on the International Day for Social Justice

Income inequality is present in many countries Increasing inequality prevents the international

community from moving people out of poverty and thus, creating a more just world

Resulting cracks in the world are evident:Lower salaries for women and youthLimited access to education and health servicesLack of availability of decent employment

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Inequality between rich and poor is t a major social justice issue

Globalization has resulted from the capitalistic culture

Its materialistic foundation is the survival of the fittest and it favours the rich and impoverishes those already poor

Large companies have the power of moneyMillions of Canadians have no place in the

economy and inequality concerns us all

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Disturbing fact on income inequality in Canada

Breaking news on January 2nd 2014: “As of 1:11p.m. [today], top CEO compensation had exceeded what the average Canadian worker would earn all year; the average Canadian earned under $47,000 in 2012. It took the 100 top CEOs of Canada just over a day and a half to earn the same amount” (Quote by Dr. Ryan Meili)

New Brunswick also has a problem of income inequalitySource: http://www.policyalternatives.ca/projects/growing-gap/

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Dr. Ryan Meili

5New Brunswick’s median after-tax income: the 10% richest (black) vs the 10% poorest (grey):

2001-2011Source: Armine Yalnizyan, Canadian Centre for Policy Alternatives

$10,008 $9,423 $9,242 $9,086 $8,792 $8,923 $10,384 $8,962 $9,218 $9,504 $10,429

$108,980 $108,848 $109,047 $109,533 $108,951 $109,944 $117,708 $114,007

$123,797 $123,605 $124,372

Series1Series2

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

6Close-up on N.B.’s income inequality in 2011

10% poorest 10% richest0

50000

100000

150000

$10,429

$124,372

Median annual income after tax in New Brunswick in

2011

($)

.

Between 2001 and 2011, the wealth of the richest rose by 14.2% and the income of the poorest by 4.2%

The rise in Canadian inequality began in the early 1980s

From 1980 onward, the income of the middle class stagnated

Over the past 20 years, for every $1 increase in national earnings, 30 ¢ went the richest 1%, while 70¢ of every dollar had to be shared by the bottom 99%

30 ¢70 ¢

For every dollar in national earnings

Richest 1%

The remaining 99%

Source: Broadbent Institute, Towarda more equal Canada, p. 12

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Negative impacts of current growing inequality trends

1. It affects negatively on the quality of democracy

2. It increases the hardships of individuals on welfare

3. It threatens the stability and performance of the economy

4. It is detrimental to the environment

Note: Many people are ready to pay higher taxes for a fairer economy

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Basic reasons for income equality

Because of the Declaration of human rights: “All human beings are born free and equal in dignity and rights. They are endowed with reason and conscience and should act towards one another in a spirit of brotherhood.” (Art. 1.)

Because Canada, as a country, ratified the Covenant on Economic, Social and Cultural Rights in 1976

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10Rights rights mean very little for

most people unless SOCIAL and ECONOMIC rights are regarded jointly (both are essential)

A just society is one where individuals have the possibility to live with dignity, to participate in the life of the community and to develop their potential in the measure possible

Inequality threatens the Common Good

Only socially integrated markets can lead to social justice

Extreme inequality is a threat to the Common Good because it weakens the true balance of power of poorer citizens when the rich control the elections, the media, etc.

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Inequality threatens economic performance Inequality lowers demand for products and

slows down the economyWith less economic activity, less public

funds are available for public investment, social development and crisis management

People tend to follow the consumption pattern and lifestyle of the rich and, to do so, they borrow money; this leads to financial bubbles which eventually burst

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Level of inequality within 17 countries An unequal country is

one which has rich people controlling a large amount of resources, a shrinking middle class and many poor people. Scandinavian countries are more egalitarian. Canada ranks 12th in this graph and the U.S. have very high inequality.

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Income inequality (Gini index where 0 represents exact equality and 1 represents total inequality)

Sweden’s equality level compared to Canada’s

(2010 values) In Sweden, the richest 1 % of the

population owned 7 % of the wealth In Canada, the richest 1 % of the

population owned 14 % of the total wealth

The 100 elite CEOs in Canada earned, in average, 8.4 million dollars in 2010

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Positive aspects of more egalitarian countriesMore egalitarian countries place less

emphasis on consumptionTheir community life is richerThey take better care of their neighbours

(they are more compassionate)Their stress level is lower, which leads to

better social results

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Causes for the rising of inequalityLow wages (In 2010, there were 92,420 New

Brunswickers who lived on less than $10,000 per year)

Bonuses and shares given to CEOs by rich companies Low rate of unionization – only 1 in 5 workers in

CanadaRise of trade with countries paying low wages Increases in temporary, contractual, temporary and

part-time workers (11.1% of N.B. employees work part time)

Inequitable fiscal policies in Canada and in N.B.

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Things that can be done about growing inequality

Source: Broadbent Institute, Toward a More Equal Canada

1. New vision and new agenda

2. Good jobs

3. Income support

4. Expansion of public services

5. Fair taxes

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1. New vision and different agenda New commitment levels based on human rights at

federal, provincial, municipal and non-profit sectorsFocus on countries with the best performances in

terms of income equality, environmental, social, labour, human rights and fiscal policies

Introduction of new growth indicators which, along with GDP, include equity in wealth distribution, quality of life and environmental quality

Priorities set on lowering income inequality and focussed on mental health, homelessness and generational poverty

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Step 1 to control income inequality: Good jobs

Ensuring workers rights and environment protection through appropriate policies regarding trade and investment, thus avoiding a race to the bottom:An economy based on renewable resourcesA stable manufacturing sectorQuality public services, resisting the trend toward

privatizationSupport of cultural industries

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Investment in the development of competenciesProvision of high quality public educationTraining programs focussed on job entry for

unemployed and marginalized peopleImplementation of women’s pay equity

legislation Provision of good daycare servicesAmendments to labour laws regarding unions

Modification of governing structure of companiesRestrictions to financial speculation

20Step 1. Good jobs (continued)

Step 2: Income supportExpansion of employment insurance (only 40% of

unemployed workers currently have access) Improvement of social assistance (in N.B., it is

currently way below the poverty line, is only accessible after all resources are gone, and often carries a punitive aspect)

Increases in the HST credit refund and in the guaranteed income supplement

Improvements for handicapped people by offering them the equivalent of the old age security pension

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Step 3: Expanding public services Improvements in:

Higher education subsidies to offset the rise in tuition fees

Health care services covering home care and long term care

Day care services and child care support for low income families

Programs leading to affordable housingSubsidies for public transport

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Step 4: Fair taxes Canada’s taxes, as a share of national income, is

at 31% compared to the 34% average of the world’s most advances economies

Progressive income taxes contribute to equality by raising the money we need to pay for social programs and by fairly sharing the cost of public programs

Taxes link citizens to one another and to the Common Good

Taxes should be progressive and should treat wages and investment income equally

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Step 4: Fair taxes (continued) Costly tax loopholes should be eliminated by cracking

down on tax evasion through offshore tax havens Taxes should be imposed on very large inheritances Imposition of a tax on financial transactions would

generate significant revenue Green taxes (carbon tax and natural resources taxes)

would promote the transition to a socially and environmentally sustainable society

Displacement of resources attributed to the military and to criminal justice would improve income support programs

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Media should focus more on justice issues

Medias often focus on military might, new inventions and financial successes

Very limited coverage is presented on the rising number of people living in poverty, both world wide and here in New Brunswick

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Good example on the income gap appearing in

Statement in Globe and Mail on Nov. 8, 2013: “There's no magic bullet or single, perfect solution that will even the playing field in Canada. But there are plenty of good ideas on how to mitigate the effects of income inequality and improve social mobility for all. We consulted a wide range of stakeholders who offered specific suggestions, ranging from tax code changes to labour market reform. Which one resonates with you? Cast your vote…”.www.theglobeandmail.com/news/national/time-to-lead/our-time-to-lead-income-inequality/article15316231/

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Poll results from this Globe & Mail Survey

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Boost support for the working poor

Do nothing - There's no major problem

Enhance early childhood education

Emulate German's approach to skills training

Restore fairness to our tax system

0 1000 2000 3000

429 votes

455 votes

616 votes

1,945 votes

2,233 votes

Number of votes on reducing the effects of inequality

Number of votes cast

Speci

fic

suggest

ions

“Restore the fairness in the tax system” was the most popular option

The “WageMark”, an innovative optionA new organization, WageMark, is taking

the case to companies, and to the consumers themselves

Along the lines of Certified Fair Trade, they offer a means to see on the package, the equality ethic of a company

To certify for a WageMark logo, a company has to have a maximum of a 8 : 1 ratio between the highest paid employee and the lowest

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Source: Dr Ryan Meili: Here’s a new way to tackle income inequality. The Province, Jan. 16, 2014

WageMark Logo

Promoting the globalisation of compassion

People motivated by compassion represent a powerful lobby group

Working for social Justice demands a commitment to act for changes in the structures of power that control the economy, the rights of workers, preservation of Planet Earth, etc.

Instead of a globalization of the economy to the bottom, the promotion of compassion is is a much more constructive alternative

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ConclusionThe International Day for Social Justice offers an

opportunity to focus on some of the root causes of an unjust world

The current major social justice issue is the inequality between the rich and the poor

Major changes need to take place at the government level and within civil society to reduce the growing inequality

The power of compassion, along with a yearning for social justice, will create a better world

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