Alberta Soap Box 🇨🇦

Comments Effecting Canadian Events – Ken McGregor

Job Crunch

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The Liberals, NDP and Obama all think alike

The Liberals, NDP and Obama all think alike

As many underdeveloped countries start to develop their own resources and the world economy shrinks, there is going to be a lot of competition around the world to sell their good and services. The ones  that are the most efficient, competitive and cost-effective will be the winners and the ones to give the best jobs to their citizens. The countries that are bogged down in red tape and political bickering , like Canada and the US, will be the losers, with high unemployment and millions mired in poverty. We can see this happening in the US now, where there are over 95 million Americans falling into a low-income category, commonly defined as those earning between 100 and 199 percent of the poverty level  and the 50 million who already fall below the poverty line and are counted as poor.  The total number is a staggering 145 million, or 48 percent of the U.S. are either in poverty or close to it. Canada has no official poverty measure so no one is sure what the count is , but its estimated to be around 1 in 10 Canadians in 2009 were considered poor (10%). This 10% does not include the people who are slowly falling into low-income territory. Very troubling statics for Canada since most of our trade and jobs are tied to the US economy.

The big solution’s that are being kicked around by the Liberals, NDP and the Obama democrats to help the poor is to tax the rich and raise the minimum wage. All this is popular and sounds very noble at first glance until you look at who is already paying the tax and question if raising the minimum wage doesn’t in fact have a negative impact on jobs.

Presently the top 10% of the wage earners in Alberta already pay 53% of the provincial tax burden while the bottom 50% only pay 3%. The middle-income earners pay the rest. In other words, 97% of the tax burden is already paid by the top 50% of the wage earners in Alberta (Source Alberta Tax Plan 2013). Similar stats are found for the Canadian federal tax burden. Its getting clear that taxing the rich is just a slogan for the politicians. There is no way taxing the rich a few bucks is going to save the day. In fact, if you took all the net worth from all the 1146 billionaires in the world (source Forbs) with their total net worth of 5.4 trillion you would barely make a dent in the US $17 trillion debt. Yes, taxing the rich is just a political slogan to get votes, nothing to do with reality.

Raising the minimum wage is another vote getter the Liberal politicians like to throw around. The fact is just raising the minimum doesn’t create prosperity for all. The hard truth is it puts workers with no skills, that are trying to get into the job market at a disadvantage. They can no longer negotiate their wage to get an employer to train them so they can get the skills required to move up the ladder. Minimum wages pits skilled workers against unskilled workers the higher the minium wage goes up. The minimum wages also raises the cost to the employer, especially hurting small business. Small business can’t, in most cases, just pass the cost along to their customer especially in hard times. Customers just stop coming. Small restaurants, shops just have to do without hiring, leaving the owner with the hardship of working longer hours or just closing shop.

We had better get use to the fact that every worker in the world will not have a job or a job with a livable income. The hard truth is there is just not enough work for everyone to be employed in a good paying job. Someone or country is going to do without. The ones that will get the good jobs are the ones that have a product that everyone needs at a good price. For Canada, commodities is the future. Oil ,gas , potash etc. are the big ones. If Canadians don’t get on the bandwagon quickly and support our commodity industries the opportunity for good jobs and prosperity will slip away and go to our competitor’s leaving a big percentage of next generation of Canadians (your kids) in poverty.

I love to vacation in Mexico but I hope Canada doesn’t become Mexico with their subsistence jobs. Its our choice.

Please leave a comment below or email: ALBERTASOAPBOX@gmail.com

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Written by Ken McGregor

January 27, 2014 at 11:53 am

One Response

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  1. Yes we are now running out of jobs. So we will need a guaranteed annual income or there will be violent revolution. We can afford it because we don’t need to pay down the debt: Canada is not a household that has to worry about foreclosure. Debt is a paper tiger , a boogeyman the right uses to scare people into doing what’s good for plutocrats. So taxing the rich raises the money we will need for this annual stipend. Furthermore since we have reached peak jobs why are we in such a hurry to sell off out resources? You think the world will stop needing oil? Let’s make them beg for our commodities, the longer we have them the more they’ll need them.

    Roger Larry

    January 27, 2014 at 5:36 pm


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