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The Social and Economic Setting. Chapter 3. How to Judge a Successful Country. 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. - PowerPoint PPT Presentation
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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.