1 percent's wages climbed to 12.9 percent in 2010 from 7.9% in 1979

This is the greatest economic problem we face.



Even though corporations are more profitable, the rank and file employees are getting a smaller share.



Wages have dropped from over 50% of the U.S. economy to 43%. Median household income dropped 12% from 2000 to 2011 - yet the U.S. economy grew by 18%.



Recipe for disaster.



http://www.nytimes.com/2013/01/13/sunday-review/americas-productivity-climbs-but-wages-stagnate.html...



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1 percent's wages climbed to 12.9 percent in 2010 from 7.9% in 1979

Pierre is making sense, unlike a few others.



It may be that some people are so materialistic that they see everything in terms of greed, acquisitions, material wealth, who envies whom an all that b-tweet.



The reason for the op is not to "attack" the 1 percent. The reason is to present a technical problem with our economy and to see if anyone has any ideas about what could or should be done about it.



The problem is that the total income available to Canadians is 100 per cent. The fact is that the portion of all the income that is available to 99 percent of the people has dropped from 92% to 87%.



The other thing is that, for numerous reasons, this trend is not likely to reverse itself, in fact, it is quite likely to continue or even accelerate, without appropriate action.



Some may say it is written in the Bible this is the way it should be, some may feel this is all needless pontification and write to us about their personal achievements back in the day.



IMO if we continue in this direction, the result will be widespread unrest, instability and resulting further economic breakdown.



Raising the GST may be one answer, raising corporate tax another. Frankly I think that the problem should also be put to industry.



I'm unsure about protectionism, but what about fine tuning regulations to encourage small and local business?

Message 21 of 35
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1 percent's wages climbed to 12.9 percent in 2010 from 7.9% in 1979

 


I wasn’t talking to you ross. Why did you go off?


 


So don't preach….etc etc etc etc


 


Your story is soooo amazing. So if I may ……


I came from a poor family. Watched my father work 6 days a week for next to nothing. He worked in front of a blast furnace and with an anvil;  his hands and chest were scarred till the day he died.


I started working when I was 12. No time off after school and in all the years of public school and high school I only had one week off for a summer vacation in all those years….the rest of the time I worked at whatever I could get.


Neither did I get to keep my money….it went into the family. I left school in grade 12 and worked from day one. I wanted to go into the Min of Natural Resources but it meant going to Sault Ste Marie and there was no money. So I worked at anything from selling in a retail store, to digging home foundations out by hand, to working doors at bars. While doing this I started out my own small business and then another, but still worked to make sure money came in. I ended up selling for an international clothing company through a recommendation of a man I had worked for during my high school years. My territory was the Niagara Penn, around Toronto to Oshawa, to Tobermory to Windsor Ont with over 800 accounts including Eatons and Simpsons. I became the second top salesman in Canada. When the home office in the US sold the company to another company all the salesmen were disbanded and I went to work for one hotel chain and then another where I became the hotel manager for 3 years, but at night I still worked doors in bars. In the process I had a general manager in the US who said I had to lie to the staff, especially the immigrant housecleaning women. I seen how they were being treated and I attempted to covertly put in a union for them. Eventually it was discovered who was behind it and I lost my job. The only job I ever lost and proud of it.


After that I worked at bars most of the time and started another business, which I sold. Then started another business, a clothing store, which ended up with 3 locations, all of which I sold. Then I opened another business and another. When my partner in the first business unexpectedly died ….I closed it up and focused on the second business. The second business opened a door to another business which I still have and have had for many years with over 20 employees.


 


 


The one thing I have learned is what my father went through. A hard working man who did his best and in the end when the company got sold he lost his job of 27 years. I seen what it did to him, a man who lived to work and provide and because of those with money but without conscience he was nothing more than a disposable piece of paper from a file when he was no longer……needed. That was when I said I would never work for anyone again and anyone who worked for me would never face what happened to my father. No one! I’ve hired people off welfare rolls and people no one else would employ and gave them a trade and a profession. I have staff who when I first met them lived in dingy apartments and lived in shelters and now they have their own homes and families. No staff has ever been laid off and never will be so that I can make more money. They will do well and I make sure of that.


 


I will give my opinion anytime I feel like it. And yeah…..I’ve looked out for myself …….and others…… and I’ve done all right, Bud.





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Message 22 of 35
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1 percent's wages climbed to 12.9 percent in 2010 from 7.9% in 1979

"the reason for the op is not to "attack" the 1 percent"



........but it all boils down to money.  Doesn't it?  


As in, how come Bob keeps getting a big raise, while Tom, Dick, and Harry are still making peanuts working their butts off at a KFC  franchise.

Message 23 of 35
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1 percent's wages climbed to 12.9 percent in 2010 from 7.9% in 1979

Art, I'm a little confused.  Are you suggesting the GST be raised in order to give the 99 percent that money?  I would like some clarification, because 100 people's money with one hand in order to hand it back to 99 of them seems .........dumb.  And inefficient.

Message 24 of 35
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1 percent's wages climbed to 12.9 percent in 2010 from 7.9% in 1979

"I'm a little confused."


 


Yes, taxation and social justice can be confusing.


 


For an answer to your questions, I suggest you contact Brian Mulroney, former Conservative Prime Minister, the architect of the GST and GST tax credits for low income earners.


 


That government understood that taxing some items only - exempting basic groceries, rent, prescriptions, etc... - would result in more tax being charged to high income earners while distributing some to low income earners to somehow offset the tax payable on taxable items.


 


Not a perfect system of course but it made sense.


 


Most economists in Canada (except those working for the Conservative/Reform Party) generally agree that lowering the GST from 7% to 5% was a mistake.  If the government had too much money it should have lowered income and/or payroll taxes for everyone but high income earners..  However, politics at the time dictated it was an easy and popular promise to make and keep. 😞

Message 25 of 35
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1 percent's wages climbed to 12.9 percent in 2010 from 7.9% in 1979

Most economists in Canada (except those working for the Conservative/Reform Party) generally agree that lowering the GST from 7% to 5% was a mistake.



Who do they work for?


The left?


The liberals and socialists never lower taxes, so who cares if they have a better way to lower taxes.


Message 26 of 35
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1 percent's wages climbed to 12.9 percent in 2010 from 7.9% in 1979

Your explanation notwithstanding, I remain confused, Pierre.  The poor still got to pay GST on home heating oil, and electricity, and phone bills, etc.   So it still comes down to getting screwed with one hand,  while the other hand periodically hands them a rebate cheque with the other.   Bribing people with their own money.


Message 27 of 35
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1 percent's wages climbed to 12.9 percent in 2010 from 7.9% in 1979

It’s a game….politicians, governments and taxes. The government is given more than enough but spend it wastefully. The sooner people come to that realization the sooner we can stop playing ‘their’ game.


If the governments were businesses they'd be bankrupt in a year.





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Message 28 of 35
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1 percent's wages climbed to 12.9 percent in 2010 from 7.9% in 1979

And every three months I get to do some paperwork and remit taxes to the feds that my clients didn't want to pay in the first place.  The government has turned me into a tax collector, and no vocational test in the world would have listed that as a suitable occupation for me.

Message 29 of 35
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1 percent's wages climbed to 12.9 percent in 2010 from 7.9% in 1979

As in, how come Bob keeps getting a big raise, while Tom, Dick, and Harry are still making peanuts working their butts off at a KFC  franchise.



Where 40 years ago, Bob might have had Tom and Dick working for him - and Harry might have had his own little local cafe and employed a person or two himself:

Message 30 of 35
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1 percent's wages climbed to 12.9 percent in 2010 from 7.9% in 1979

Well.........yeah, Art, but tell me that it ultimately doesn't come down to the money.   This is all about money, and the fact that Bob is rolling in it is a source of frustration to Tom, Dick, and Harry .  Who spend some of their paltry paycheques on lottery tickets to try to get rich quick.   Cause they wanna emulate Bob the Scoundrel.   Meanwhile, you wanna lighten Bob's wallet and distribute his new plastic $100 bills to T, D, and  H.com

Message 31 of 35
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1 percent's wages climbed to 12.9 percent in 2010 from 7.9% in 1979

Look it was never Bob's charitable ways that allowed Harry to run his own joint. It was just that the system was put together that little bit more fairly.



If someone was able to run a cafe that had something to offer - then they might just do it and compete with Bob. Now it's still far from impossible - just artificially a lot harder than it used to be.



There could still be room for the market to self-regulate these problems... because in theory there should be profits to be had by facilitating entrepreneurship - somewhat along the lines of ebay originally. But it's not happening. And the demise of the middle class means there are proportionately fewer potential entrepreneurs every day.

Message 32 of 35
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1 percent's wages climbed to 12.9 percent in 2010 from 7.9% in 1979

I'm not attacking anybody either.  Normally, these kinda leftist propaganda threads get me wound up, but the Snickers bar calmed me down.

Message 33 of 35
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1 percent's wages climbed to 12.9 percent in 2010 from 7.9% in 1979

The basic GST is regressive no doubt about that.



We may be misled by the rebates that make it a better deal for low income families.



But - it is arguably hardest on the middle class and worse than a flat tax. And make no mistake the 1 percent make out like bandits, as it gets harder and harder to spend over a certain level. Not to mention amounts spent abroad etc where GST can't be recovered.



What I like about it is it is harder to dodge.



But the rebate needs to be extended to higher incomes to lessen the impact on the middle class - which was the original intention by adjusting for inflation.

Message 34 of 35
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1 percent's wages climbed to 12.9 percent in 2010 from 7.9% in 1979

Here is a study of wealth distribution in Canada: http://www.policyalternatives.ca/sites/default/files/uploads/publications/National%20Office/2010/12/Richest%201%20Percent.pdf



It basically says even the richest 1% get most of their wealth from wages.




Historically, Canada’s richest citizens relied heavily on unearned income such as returns from their investments in stocks and bonds, and rents from their real estate holdings. In 1946, just after the Second World War ended, less than half the income of the richest 1% of Canadians came from pay cheques. Wages accounted for 45.5% of their incomes and a further 10% came from professional fees (for the doctors, lawyers, etc. in this group). Higher up the income ladder, rental incomes and dividends were increasingly important sources of income.



Today the income of the richest 1% is due mostly to the lavish  sums they are paid for the work they do. They also enjoy additional rewards and extras that the majority of workers don’t: bonuses, stock options and other compensation received by bosses, bankers, inventors, athletes and artists. They’re basically doing the same job that bosses, bankers, inventors, athletes and artists have always done in Canada. They just get treated as more of a rare breed than ever.



By 2007, wages provided more than two-thirds of all income for the richest 1% of Canadians, (67.6%), and even more for those higher up the income ladder. Professional fees, dividends, and interest income were roughly the same as two generations ago for those in the top 1%.


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