RO

Socialism

Birth of Socialism

  • Mixed economic system - combining govt. involvement and economic freedom.

  • Emerged from Robert Owen

    • Factory owner during indus rev. Saw the negatives of it

    • Believed in a profit even within paying a fair wage, maximum hours, safe working conditions, outlaw child labour.

    • Put into practice in town called New Lanark - apartments, grocery stores, schools, controlled rent. Worked. Factories were still profitable.

    • Tried it in US - New Harmony - failed.

Key Ideas

  • Classical liberalism

    • Privatization of schools and hospitals

    • Competition

  • Socialism

    • Nationalization of key industries

    • Social programs

    • Cooperation & Universality.

  • Similarities

    • Profit motive, private enterprise, & private property.

No one should be denied basic services due to a lack of income. Ppl should have access regardless of income.

Goal of Socialism is to redistribute the wealth - close the economic inequality. Govt responsibility is to close the gap.

  • Clas cons and libs see economic inequality as good.

Canada

  • Socialist country/welfare state.

  • Clas libs elements - private property & profit motive.

  • Elements of govt. control seen in social programs and tax system.

    • Goal of redistributing the wealth.

    • Wealthy pay most taxes and get fewest benefits.

    • Low income earners get least taxes and most benefits.

  • Wealthy ppl prefer systems like the US because they would have certain advantages.

Social Programs

  • Healthcare in Canada - physical checkup once annually, emergency room.

    • Specialized healthcare, dentistry, prescriptions, are not covered.

    • K-12 education is covered. Post secondary, after school is not covered. Retirement for teachers is 65.

  • Canadians pay tax to cover costs.

    • Pay for social programs and redistribute wealth.

  1. Consumption Tax - GST, 5%

    1. General revenues, military, CBC, Canada Post, govt salaries, etc.

    2. Alberta doesn't have a PST, as it makes royalties off oil.

  2. Property Tax - paid once a year to city based on % value of their house

    1. Local - snow removal, libraries, garbage, 911, teachers salaries.

  3. Income tax - based on % of total income a person makes in previous year

    1. Progressive - more wealth pay more and a higher % of total cost.

Income tax - neocons, supply siders HATE progressive income tax.

  • Discourages hard work and making more money.

  • Argue for a flat tax regardless of income, pay the same %. Wealthy pay less, low income pay more, but It is not offset.

  • Cuts to social programs still necessary.

  • AB tried flat tax but lost lots of money, lasted only 3 yrs. Federally always progressive tax.

Businesses use tax loopholes like business write offs as expenses.

Sweden

Clearer example of socialist welfare state.

  • Also contain capitalist aspects - private property, profit motive, private business.

  • Govt involvement is stronger than in Canada - indicative planning

    • Govt. of Sweden gives predictions/suggestions on direction of economy for companies to use if they want.

Social programs - extensive, in place to be able to help someone from cradle to grave.

Highest tax bracket is over 50% - tax evasion rampant, as high income earners hide money to avoid taxes.