Income and Wealth Inequality in Canada Essay

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“Poor No More” is a documentary that sheds light on the real lives of those struggling with poverty in Canada. Through the stories of individuals living below the poverty line, the film highlights the systemic issues that trap people in a cycle of poverty, as well as the hope and resilience of those fighting to make changes. Walsh does an excellent task of shining a spotlight on this often invisible issue, and her compassion and respect for those affected by poverty come through clearly. This is an important film that everyone should watch in order to better understand the everyday reality for far too many Canadians. Through a series of interviews with low-income earners, professionals, and economists on the issue, Walsh highlights the challenges facing those who live in poverty, such as poor work and living conditions. The film outlines that society must do more to help those who are struggling, especially through workers’ unions. This is not only an issue of fairness but of fundamental human dignity.

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The film’s overall message is that poverty is unnecessary and that it can be eradicated through collective action. It effectively communicates this message by featuring powerful stories of people who have overcome poverty. The film also features interviews with experts who explain the root causes of poverty and how they can be addressed (Walsh, 00:19:22). Overall, the film is very effective in communicating its message that poverty can be eradicated through collective action.

The part of the documentary that had the biggest impact on me was when the workers came together to form a union. This is because workers are humans who also need to be treated or handled with care, and this is morally acceptable. The film highlights the important role that unions play in ensuring that employees are treated fairly and respectfully (Walsh, 00:40:14). Without unions, workers would have little to no protection against exploitation by their employers. The most important message is the role that Canadian society plays in perpetuating poverty. Through case studies and interviews with experts, the film highlights how the economic safety net fails to lift people out of poverty as big corporations evade paying taxes (Walsh, 00:20:00). There is one way in which my personal problems as a future Electronics and Communication Engineer (ECE) could be influenced by the social problems raised in the film. Watching the film makes me feel demotivated to pursue my career due to the poor payments and working conditions displayed in the film.

The role of employees’ welfare is to ensure that employees are treated fairly and have access to the basic needs required for healthy and productive work life. In the film, most of the employees prefer suffering with their families because the employees’ welfare groups are giving little help, which they again deduct when a person secures a job (Walsh, 00:12:49). Many times, the lowly paid workers opt for welfare aid, but it is never sufficient even to pay rent, and as a result, these employees get evicted by their landlords.

There are employees’ welfare organizations in Canada that were recently formed to better workers living conditions. They include Unifor, the Canadian Union of Public Employees (CUPE), the United Steelworkers (USW), and the Communications, Energy, and Paper workers Union of Canada (CEP) (Savage, 2020). Each union has its own unique history, culture, and focus. However, they all commit to improving working people’s lives through collective bargaining and social activism. From the week 6 lesson, it is presented that in 2008 top 100 chief executive officers made 175 times more than ordinary Canadians. Therefore, these welfare unions have been working towards ensuring equality so that ordinary employees could be paid better salaries. On the other hand, in week 7, under poverty entry and exit rates, the lesson presents that 4.1% of Canadians entered while 27.5% exited poverty between 2014 and 2015. From the presented figures, it is true that these workers’ unions have worked hard to uplift workers from poverty.

The lowly-paid employees are the group that has been especially hard hit by neoliberal policies. As the documentary points out, these policies have often led to stagnating, or declining wages, increased precarity and insecurity, and growing inequality. The constricting of social safety nets has also contributed to increased poverty rates. Necessary prerequisite conditions for a purely neoliberal global order include deregulation (of both labor markets and economies), reduction in government spending on social welfare programs, and privatization of public services.

From the week 6 lesson, the principle of increasing the minimum wage is one of the best ways to solve the increasing inequalities in Canada. Raising the minimum wage will help to decrease income inequality in Canada as it will ensure that all workers are earning a livable wage. This will help to reduce the number of people living in poverty, which is a major contributor to income inequality. Additionally, increasing the minimum wage will stimulate the economy as low-income earners will have more money to spend on goods and services. The main benefit of increasing the minimum wage in Canada is that it enables lowly paid Canadians to afford better living conditions. This, in turn, aids in reducing income inequality and promotes a more equitable society.

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Wealthy corporations use tax havens such as those in the Cayman Islands to avoid paying taxes. By doing business in these countries, companies can take advantage of lower tax rates and weaker regulations. This allows them to keep more profits and avoid contributing to the public good in their home countries (Green, 2021). While this may be legal, it is ethically questionable and often criticized by the general public. Conversely, if Canada were to close tax loopholes or prevent the use of tax havens, it could put that money towards much-needed social programs and infrastructure projects. For example, Canada could fund a national childcare program, invest in renewable energy sources, or repair and upgrade aging infrastructure.

Alternatively, the government could choose to reduce taxes for all Canadians as a way of stimulating the economy. There are a few ways that closing down tax havens could affect my work in the financial sector in the future. Firstly, it could mean that companies and wealthy individuals would have to pay more taxes on their overseas earnings, leading to lower profits for these companies and less money available for investment (Green, 2021). This could, in turn, lead to job losses and slower economic growth. Secondly, it could make it more difficult for companies to operate in multiple jurisdictions, as they would no longer be able to take advantage of lower tax rates in certain countries. This could lead to higher costs and red tape, thus negatively impacting jobs and growth, including mine.

Sweden’s approach to unions, work, taxation, and childcare is unique and receives support from its citizens. Sweden has a long history of supporting workers’ rights, which is reflected in its current policies (Witoszek & Midttun, 2018). Swedish unions are some of the strongest in the world and play a major role in ensuring that workers are treated fairly. Swedes also have a solid work ethic; they regularly rank near the top of international surveys on work hours and productivity. Taxation in Sweden is high by global standards, but most Swedes feel it is fair and necessary to support their generous social welfare system (Witoszek & Midttun, 2018). Childcare is heavily subsidized by the government, making it affordable for even low-earners to raise their children in decent ways.

There are several potential advantages to adopting the Swedish model in Canada. Firstly, union membership is quite high in Sweden, giving workers a strong voice in the economy and more bargaining power regarding wages and working conditions. This can lead to higher wages and better working conditions, boosting productivity and competitiveness. Secondly, Sweden has a fairly progressive tax system that helps to fund social welfare programs like free healthcare and education; all these Swedish model benefits will be experienced in Canada (Witoszek & Midttun, 2018). If Canada adopts the Swedish taxation system, it would have difficulty. Sweden has a much more progressive tax system than Canada, which could lead to fewer development funds being available for municipalities and other local governing bodies.

References

Green, J. F. (2021). . Global Policy, 12(3), 372-379.

Savage, L. (2020). The past, present, and future of the Canadian labor movement. Labour / Le Travail, 85, 285-293. Web.

Walsh, M. (2013). [Film]. Poor No More.

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Witoszek, N., & Midttun, A. (2018). Taylor & Francis.

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IvyPanda. (2023) 'Income and Wealth Inequality in Canada'. 31 May.

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IvyPanda. 2023. "Income and Wealth Inequality in Canada." May 31, 2023. https://ivypanda.com/essays/income-and-wealth-inequality-in-canada/.

1. IvyPanda. "Income and Wealth Inequality in Canada." May 31, 2023. https://ivypanda.com/essays/income-and-wealth-inequality-in-canada/.


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