gap between rich and poor
...ge of Canadians dependent on social services, insurance, and transfers the governments should be considerate of the less fortunate in order to stabilize, build, and secure the economy for the future. Key Stakeholders Canadian Revenue Agency (CRA) -The CRA administers tax laws for the Government of Canada and for most provinces and territories. They also administer various social and economic benefit and incentive programs delivered through the tax system. Their intentions are to decrease the poverty gap but the structure of the programs is only helping a portion of the population. -The CRA can control the amount of taxation as well as the allocation of social services among Canadians. As the economy expands the government spends more and more on feeding the expansion and less notoriety is given to the poor. The CRA has the power to suggest an equality agenda within the Canadian government and increase the situation of the poorer half of Canada Ministry of Finance Canada Finance Canada helps the federal government decide who gets taxed and for how much. They provide analysis and advice to policy makers and their major priority is making sure the governments finances are in good shape. - Finance Canada’s key concern is to control the government’s finances and secure stability within the economy. Their intentions are not in favor the lower class and time of economic recovery Finance Canada has done nothing to decrease the gap between rich and poor. Unions -Worker Unions have a huge impact on the way employees are treated in the workplace. Government regulations in the workplace are a direct result of collective bargaining between unions and employers and if unions can strengthen their collective bargaining capabilities then minimum-wage full-time workers could possibly exceed the poverty line in the future. Options and Alternatives There is an array of policy options and alternatives that can reduce inequality in Canada. This profile of options shows the depth of the possibilities. Likewise, any worsening of these policies will have a negative effect on the gap between rich and poor. There are three major options that can help satisfy the problem of inequality and potential shrink the gap between rich and poor: Improve market incomes, narrow the wealth gap, and increase the chance of work for youths . In order to richen the poor they must become active parts in the workforce and on top of that they must be offered fair wages and benefits. For this to be possible they must be given an equal opportunity to obtain work. Currently the government uses regulations to ensure that employees are treated a certain way. Measures include increasing the minimum wage, enhancing union-organizing freedom (unionized workers earn, on average, 32% more than their non-union counterparts ), and granting part-time workers equal rights (unemployment insurance, benefits, seniority, and employment standards coverage). Governments need to start using these tools more effectively. For the poor to become active in the workforce the supply of jobs needs to be increased. Various economic levers can be used by governments to increase both the supply of jobs and the supply of good jobs. These include the following: • Interest rates – if lower, domestic borrowing increases, businesses expand and more hiring occurs. Interest rates are directly correlated with employment and can cause unemployment to decrease dramatically. • Government spending – in general, more spending stimulates the economy. More money in the hands of poor and middle-income earners has a greater capability to spread rather than money into the hands of the wealthy . As well, governments can spend in areas that promise growth of decent jobs. • Public-sector employment – governments have the capacity to expand public sector employment and thus directly impact the supply of jobs. Public sector wages are, on average, better than private sector wages and offer greater benefits. The second option is to narrow the wealth gap. In order to do this we must expand democracy by removing the influence of money among politicians. Money is deeply entrenched in politics. The separation of money from politics must expand. The current system overly favors wealthy politicians, bestows lobbying achievements on those who can afford it and almost emanates privilege. Marginalized communities don’t see themselves reflected in politics - not through politicians and hardly through policies. Narrowing the wealth gap also consists of regulating incomes. An income cap could be very effective in balancing incomes. The corporate tax system could be used creatively to reward companies where top salaries are tied to a multiple of the minimum wage. This would serve as an impetus for either reducing the top or raising the bottom. Increasing the chance for work among our youths must be achieved but on very subtle levels. Ensuring the future of our environment and lowering consumption will help ensure a stable economy in the future and jobs for our children. Supports to lower consumption can come in the form of expanded reliance on public goods such as transit, community services and recreation. The government can provide incentives to this goal through the tax system. Recommendations Personally I think how much you ...