Speak Out Before It's Too Late

Speak out - before it's too late

Toronto Star
May 09, 2008 04:30 AM
Carol Goar

History is replete with examples of societies in which a privileged minority amassed a vastly disproportionate share of the wealth. But it offers little guidance about how to reverse the trend.

The reason: it has almost never been done.

The problem is not a dearth of tools. There is progressive taxation, universal education and a wide array of social programs.

The missing ingredient is invariably political will. Governments are loath to offend the rich and powerful. Voters become apathetic. Dissenting voices – the church, social activists, young people – are dismissed.

What it usually takes to rebalance a top-heavy society is a devastating war, a deep depression or a collapse from within.

That was the case in 17th century Spain. Its galleons plundered the world for 50 years. Its commercial elite grew fabulously rich. But the rest of the population fell into poverty, disease and decline. Eventually the Habsburg Empire disintegrated.

Next came Holland. In the 18th century, its merchant-traders achieved global pre-eminence. But in the countryside, farms and towns languished, once-spotless streets became filthy and epidemics set in. The golden era gave way to a long decline.

Then it was England's turn. In the 19th century, its industrial might was unparalleled and its upper crust lived in exuberant splendour. But working families struggled to buy food and stay out of debtor's prison. Two world wars put an end to the British Empire.

The United States flirted with disaster twice, once as the 20th century approached (the Gilded Age) and again 30 years later (the Roaring Twenties). The first time, trust-busting president Theodore Roosevelt pulled his country back from the brink. The second time, it took the Great Depression followed by World War II to get America back on track.

This is a daunting backdrop, as evidence mounts that Canada is bifurcating into a nation of winners and losers. The latest census, released last week, showed that the richest fifth of working Canadians are 16.4 per cent better off than they were in 1980. The poorest fifth are 20 per cent worse off. And the 60 per cent in the middle have failed to make any headway.

Yet there is no sign of alarm in the corridors of power, no acknowledgement of the need to stem the polarization.

That means Canadians who don't want to go where this path leads will have to force their governments to act.

The first step is to get a public debate going.

There is plenty to talk about. Why should the interests of a well-off minority trump those of everybody else? Why should middle-class voters, whose standard of living hasn't risen in 25 years, be content with the status quo? Why should Canadians support a Prime Minister who lets market forces rip?

The second step is to press for short-term, practical reforms.

An overhaul of Employment Insurance would be a good start. The current system leaves millions of workers with no safety net. Building affordable housing would help. People who are warehoused in emergency shelters can't establish themselves as reliable employees. Removing the barriers to post-secondary education would also be a positive step. It is short-sighted to ask students to take on huge debt loads to become productive, taxpaying citizens. These three proposals would pass any non-partisan cost-benefit test.

The final and most critical step is for voters to shake off lethargy.

Unless Canadians speak out, their political leaders will keep taking their cues from the marketplace. Unless taxpayers say no, Ottawa will continue to reward financiers and speculators and mollify the rest of the population with modest tax breaks. Unless citizens elect politicians who are willing to stand up to powerful private interests, Canada will follow the same trajectory as other once-envied countries.

There is still time to avoid this fate. Nations can change course. But the evidence – past and present – suggests that most don't recognize the danger until it is too late.

Carol Goar's column appears Monday, Wednesday and Friday.