Equality – Page 18 – Things Are Good

These CEOs Want Basic Income

Ontario Premier Doug Ford was elected earlier this year and already started implementing his plan to increase inequality in the province. Obviously, this is a bad a plan. One of the things Ford cancelled thus far was the basic income pilot program which was praised around the world, and before the study showed results Ford axed. As a response to this stupidity, CEOs have responded by demanding that the basic income pilot continue and that the concept of basic income needs support. The good thing here is that CEOs are openly supporting basic income despite the “pro-business” Ontario government stopping the basic income test.

Here’s part of the open letter from CEOs to Doug Ford:

As Canadian business leaders, we urge the Ontario government to continue the Ontario basic income pilot. We see a guaranteed basic income as a business-friendly approach to address the increasing financial precarity of our citizens and revitalize the economy.

It is urgent that we let this pilot run because we see basic income as part of a solution that could help Canadians stay competitive in the face of:

Accelerating technological job displacement due to advances in automation, software, and AI1
Globalization of jobs which has gone beyond manufacturing and textiles to entry and mid-level information work2
The ongoing transition of work to part time, contract, and gig-work3
Winner takes all markets where companies such as Amazon are absorbing greater shares of economic activity4
These global trends are causing structural changes to the economy that are depressing wages,5 reducing the number of middle class jobs available to Canadians, and affecting a decline in entrepreneurship.6

Low Income Housing Doesn’t Negatively Impact High Income Housing

housing

The graph above shows that the introduction of low income housing into a neighbourhood does not negatively impact the value of other homes. Real estate agents perpetuate a myth that social (or public) housing destroys local housing prices. Clearly this myth is based on no reality.

If you’re a homeowner that dislikes people who earn less than you please stop fighting efforts to house others. Hopefully the linked research provides more evidence for people working to bring affordable housing to cities around the world.

In the nationâ€™s 20 least affordable markets, our analysis of 3,083 low-income housing projects from 1996 to 2006 found no significant effect on home values located near a low-income housing project, with a few exceptions
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There is no statistically significant difference in price per square foot when comparing properties near a low-income housing project and those farther away when examining projects across all 20 metros. Likewise, at the metro level, the majority of markets yield no significant difference in prices between the inner and outer ring after a project is completed. However, a few housing markets revealed significant differences in price per square foot near low-income housing projects after they were placed into service.

In Singapore Housing Crises are a Thing of the Past

Singapore lacks land and this causes interesting land use problems. In the city state they ran into issues around housing their citizens ranging from land to cost. Instead of letting “market forces” dictate their housing plan (like in Toronto) the politicians of Singapore decided to act. They built housing and funded even more to ensure that in Singapore everyone will be able to afford a home.

Singapore had a severe housing shortage decades ago. But it developed one of the world’s best public housing programs, which has also allowed a huge number of its citizens to buy their own homes.

Unions Help Every Worker Earn More

economic chart

Unions have a bad reputation thanks to years of corporate lobbying and companies blaming workers for executive-induced problems. Despite the negative view of unions they have helped all workers get paid more and get more benefits. Research out of the University of Illinois concludes that unions are directly connected to broader worker rights and better wages throughout the economy, meaning that if you’ve never been part of a union you have benefitted from their work.

The unionization-inequality connection remains even when looking only at nonunion members, or at union members in only public or only private sectors, VanHeuvelen said. For instance, the study suggests that nonunion workers would have seen 3 to 7 percent higher wage growth over their careers if not for the decline in the indirect power of unions.

The connection also remains when looking only at workers who have moved â€“ or only those who have not moved â€“ between either industries or regions of the country. It also remains when looking only at the last three decades or only at workers born since 1960.

Unemployment Down; Minimum Wage Increases

work and smile

Paying workers a reasonable amount of money works out well fro economies. Raising minimum wage is happening in a few jurisdictions throughout North America and the results are coming in that the wage increase for the lowest-paid employees benefits everyone. In Ontario the minimum wage was increased last year and economic growth continued unabated, so much so that unemployment is now at a 18-year low in the province.

â€œIt is tough to find a lot of evidence that employment has been negatively impacted,â€ said Josh Nye, senior economist with Royal Bank of Canada. â€œIn terms of the minimum-wage hike, it has come at a good time when the economy is able to absorb that. Demand for labour is so strong and labour market conditions are quite tight. Employers donâ€™t have much of a choice,â€ he said.
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The minimum-wage hike has helped boost paycheques. In Ontario, the average hourly rate increased 4.3 per cent to $27.16 over July of last year. Across Canada, average hourly earnings rose by 3.2 per cent to $26.61.