July 27, 2019 at 1:54 pm #8847etilleyKeymaster
Canada’s essential welfare system. Is it beneficial to the economy?
Welfare, like every other sustainable policy, is vital to any economy. To explain why, first, understand what is a Social Contract – not Socialism (1845), rather – Social Contract (1654 – Hobbes). Freedom – in a money society is the difference between salary/incomes and cost of living. Starvation Wages – are incomes below cost-of-living. Then, of course, there can be those who can find no reliable access to incomes – the unemployed, elderly, and infirm and so on. In a mature monetary system-based society like Canada, money is like air; you cannot live without it. To try is to doom oneself to isolation and no community support whatsoever.
There are other systems of commerce. The Monetary System evolved from the Bartering System, which in turn evolved from smaller systems of communal exchange. A combination of Bartering and Monetary commerce is common throughout the world still today – and once computers and assembly lines create all of our basic needs automatically, the need for a monetary system will likely fall off again as well. Managing these transitions well is critical to our day to day lives and to the future of humanity too.
In a mature monetary system economy, people without access to incomes – or with only access to starvation wages, cannot be productive for that economy. The greatest asset that any country has is their people, but if people have no opportunity to contribute – or find it much too risky personally – or for their family, to contribute to the economy, they cannot be productive and contribute. Unsustainable policies like “No Welfare” and “Inequity” turn our essential asset of people, into drains and liabilities for our economy.
This is why Inequity is very important to resolve. This is also why Constitutions in large democracies must be updated when they pass 15 million population (in the U.S., this was 1850 and in Canada this was 1950), so as to guarantee minimum social supports – including guarantees of food, shelter, empathy, healthcare, security – the assurance of Freedom to be productive and to contribute. This is a proven fact – so read on a little more.
Welfare programs seldom meet needs sufficiently (despite the fact that proper), they do little to address inequity, and they are unpopular with an uneducated electorate. A smarter approach to a welfare system, therefore, would work to reduce the cost of the Social Contract to zero – through automated Public Social Infrastructure Utilities (see ). Until this realization occurs to the voters who put similarly uneducated politicians into power, welfares must me paid for monetarily.
Does a strong Social Contract influence the economy? Yup, it does – and there really is an awful lot more at stake than economy too.
Was there gross inequity as we see today in the American Dream? Nope. FDR enacted 92% tax on the top 1% and 80% estate tax and Welfare Programs and Full-Employment policies worked to feed an American population that was experiencing 70% and 80% unemployment in some regions. The rich did very well with this level of taxation, and so did everyone else – and these programs continued unchanged for twenty years until John Kennedy lowered tax realizing the economy was now fully restored.
By the 1950s salaries were high, and one income families were assured of creating a sustainable birthrate of 3.0 children per woman nationwide, with incomes sufficient for homeownership (a cornerstone of economic success in any country). It only took a couple of years salary to own a home mortgage-free back then. There were also pensions, healthcare was affordable, and a very affordable cost-of-living dominated. People could even afford luxuries like cottages, farm tractors, and also to take a little time away easily enough. Nationalism protected U.S. businesses from foreign competition, and only men with families could hold senior jobs in government or business. A Good Life worked in this balanced monetary system society.
This strong Social Contract meant that people could be productive, and could make decisions on moral grounds, and this economy boomed as no other ever did in history. Hewlett & Packard created an enormous technology company from their garage – and the world looked to the United States as an example of everything right in the world – until …
Mature capitalism & imbalance – all started in the 1970s with salary stagnation, and then the big guns of inequity hit us in the 1980s – low-tax benefitted the rich much more and it created massive debt – which is serviced by the poor primarily, small government policy let the financial industry invest in private real estate and permitted foreign investment and competition, and none of the impacts this created to our social contract was measured – ever. GDP Reports were designed in 1652 to always be positive – and indicated nothing of the social contracts that fell steadily away this past 30-years in the U.S.. Today, America loses $37 billion every day to its hundred million or so citizens made unproductive by a far too low social contract here.
Not every country did capitalism well, but some really do; Italy, Germany, and Japan had FDR’s Second Bill of Rights installed in their Constitutions as part of the Marshall Plan after WW-II, and they are the only advancing economies in the G7 today. Six weeks paid vacations, maternity leave, strong opportunity, great healthcare, pensions, great schools, free university in many cases, and taxes are much lower than the U.S. private insurance shams. There might not be a Ferrari, Maserati, Lamborgini, Alpha Romeo, or Ducati in every driveway, but you might find a nice Fiat there for certain.
These countries lost the war, but they won the peace. Every Marshal Plan nation that accepted FDR’s Second Bill of Rights into their constitution is advancing today – every one of them.
Take a look at ACTCanadian.com or ACT-American.com to understand FDR’s nine turnaround policies (about half were conservative and half liberal – but the difference was that all were Sustainable). So why is wealth and income distribution – and welfare – a sustainable policy? Having rich people isn’t a problem – they can be productive; it’s having a lot of poor people – a hundred million assets who can’t be productive – that’s the problem.
High Social Contract is measured in longevity, suicide rates, inequity, and other social problems. Here we see that in a survey of 158 nations, stronger social contract scores are synonymous with a higher rate of advancing economies. We also see that low social contracts create low economies. Further explanation at
The U.S. has a Wealth GINI of .80 and an income GINI of .41 – think of GINI as the amount of wealth owned by the top-10%
First Wealth Inequity – notice how much higher countries with low GINIs (greater wealth distributions – shown here on the left) have advancing economies?
Next, Income Inequity: Income Inequity quickly has a strong influence when it falls below .34. Canada’s Income Inequity has changed from .32 in 2019 to .38 today – a dramatic change due to unsustainable policies like housing bubbles, double income policies, diversity laws here.
Canada doesn’t run a single one of FDR’s sustainable policies and President Trump’s party runs just two: Full-Employment and Nationalism.
So there are changes ahead for Income or Wealth Inequity – which will make productivity fall further, which will serve to create currency wars, trade wars, and then real wars – as mature capitalisms have on most occasions. Imbalances between salaries and cost of living are called starvation wages – and in many cases people have only very intermittent access to income in a mature capitalism. Hobbes, Dickens, Lord Byron, Tolstoy, Rousseau, Orwell, and Hugo are just a handful of the authors who warned against permitting mature capitalisms.
There are more conflicts in this decade than at any other time in history – and this was true right before World War I and II as well. Low Social Contracts impact most of the 80% of nations that find themselves in a collapse-trending today – and no party supports the policies needed to turn this around.
We live in a mature nuclear era, where the nuclear winter created by World War three will be an extinction-level event – for the first time in thirty recorded mature histories in history.
And if history repeats, WW-III starts before 2028. How? By some random spark in a worldwide powderkeg created by low social contracts driven by – you guessed it – Inequity. Really – no kidding – as in this is a mathematical certainty without correction.
Pay attention to Welfare and Inequity supports that ensure a high Social Contract, unless you are actually suicidal or genocidal. And pay attention to all of FDR’s turnarounds – they built a sustainable society, and American Dream, so they’ve got a proven track-record – and they are proven today by Econometric Scientists too – see. You should also be thinking twice about the nonsense terms that surrounded you as these powderkegs built-up too. “isms” are meaningless terms – deprecated in scientific economics like Transition Economics, “Right”, “Left”, Conservative, Liberal – only Sustainable matters.
Only Life Matters (snuck in a Fifth Element quote right there); if you’re a fan of the classics “mankind was my business”, “Be Excellent to each other” from Bill & Ted, the Golden Rule isn’t a nice-to-have sentiment, its a proven sustainability model – and forgetting this, or training it out of a population, is why every great civilization in human history has perished.
It’s all correctible of course, I’m no fear monger and nor should anyone have to be, all you have to do to correct all of this is to vote for ACT Parties that only run sustainable policy – or for local parties that are certified by ACT. World Peace was what the U.N. was originally built to do – but belly-flopped, but ACT is a thesis designed to actually build World Peace (Sustainable Societies) – with or without a United Nations.
Do you want to know the real irony for persons who reject Welfare – or any sustainable policy? It’s this. In about 20-years, our automations –– will automate all of our basic needs of a strong social contract, and we won’t have need of money to sustain ourselves really. Nations will be self-sufficient, and we can all get along just fine until another income presents. Its the American Dream all over again – we’re good to go – if we can just survive the next 20-years.
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