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Social Security
Reform
Brief
to the House of Commons Standing Committee
on Human Resources Development
Hardial
Bains, October
26, 1994
Considering
the ramifications
which the policy on social security system has for Canadians, the
Discussion
Paper on "Improving Social Security in Canada" is really an old
statement
under a new cover. Clearly, however, far from hiding the brazen demand
that everything must be done to make businesses competitive in the
"global
market," its complete failure to draw conclusions on the basis of
modern
definitions is distressing indeed.
Discussion
on "Social Security
in Canada" is coming at a time when the entire world can see what
privatization
and "shock therapy" has done to the countries of the former Soviet
Union
and eastern Europe and other countries in the world. Chaos in the
economy,
politics and other spheres is order of the day, while millions have
been
condemned to living in abject poverty and utter degradation. These
countries
have been sucked into an old myth that capitalism can provide for the
people.
People in Canada have also suffered as a result of privatization or the
policy of putting the success of businesses at the base of the
well-being
of society.
People in
Canada, however,
want to do better. They want to begin on the basis of the modern
definition
that they have rights by dint of their being human. The right to a
livelihood,
food, shelter, education and health must be recognized as a basic human
right and the starting point for a debate on how to reform the social
security
system.
I am of the
opinion that
the old considerations on the basis of which people are considered
merely
incidental to the success of business in the "global market" should be
put to rest. It has not worked in the past as it is clear that, had it
worked, we would not be speaking about those who are the victims of
"injustice
and insecurity". The Discussion Paper pursues as its central tone the
definite
target of achieving success for businesses in the global market, while
"decreasing" child poverty is only an aspiration and preparing
Canadians
for jobs is merely a program.
When the
target is taken
up to succeed in the market, social security programs become one of the
instruments of this success, as was the case during the period
following
the expansion in the late sixties and early seventies. The logic that
the
artificial funnelling of money into the economy would keep
profitability
high began the regime of incurring debts through deficit financing. The
Reaganite-Thatcherite policy of "fiscal restraint" did not change the
situation
in which "new funds" were released either through cutbacks or through
privatization
and, generally, by both means. Any effort at this time to generate "new
funds" in the manner the Discussion Paper is suggesting will be
calamitous
to the economy and to the well-being of Canadians. If one child in five
lives in poverty today, as a result of such policies, the number will
increase,
not decrease, as a result of present proposals.
One cannot
but angrily condemn
the notion contained in the Discussion Paper that the target of
university
education is merely to acquire skills to effectively compete for jobs
in
today's job market and that the costs of such education should be borne
by the university students. Similarly, the idea that social security
funds
should be used to upgrade the skills of so-called bootstrappers who
will
have to keep learning all their lives, chasing the demands of those who
are competing in the market, is equally unacceptable. Not only is there
no mention whatsoever of the need for a top-notch education to raise
the
level of the society and prevent the high levels of illiteracy and
dropout
rates and low skill levels, but no consideration is given to the
responsibility
of the businesses which need the skills to foot the bill for such
training.
One cannot
but agree with
the aim the Discussion Paper sets for itself if one looks at it
superficially,
that the "status-quo is not an option." But when it explains that
social
policy has to be adjusted to "Changes in our economy, in our families,
in our workplaces, in our communities, and in the financial standing of
our country (which are) too dramatic to allow us to tinker at the edges
of social policy and social programming," it becomes clear that all the
changes proposed are geared to making businesses competitive, which
means
precisely to keep the status quo.
It is being
suggested that
social policy and job creation are connected in the sense that a job is
the best way to have social security. It is stated that "...helping
people
get and keep jobs" is the aim, even though the Introduction
acknowledges
that there has been a steady increase in unemployment. Then when we
actually
look at the proposal contained in the Discussion Paper, this means many
things, from action to improve the business climate for entrepreneurs,
to getting the government's finances in order. A centrepiece of
improving
employment prospects is helping people to gain and sharpen the
up-to-date
skills needed to succeed in today's job market." This is to say:
– help for
businesses through
handouts;
– more help
for businesses
through "new funds" generated by putting the financing of the
government
in order;
– still more
help for businesses
by providing them with most "up-to-date skills," which means making
people
pay for their own continuing education.
It is
presupposed that the
aim of the social security system is to tackle "social injustice and
economic
insecurity." However, the paper does not speak about the system which
breeds
"social injustice and economic insecurity." Should something not be
done
about that system? On the contrary, all the recommendations for changes
are designed to save the very system which creates "social injustice
and
economic insecurity." From the early twenties of this century, since
statistics
have been kept, the tendency of the poor becoming poorer and the rich
becoming
richer has remained a feature of the system. This has been the case
since
a semblance of Unemployment Insurance was introduced in 1942. Basing
itself
on the flawed presupposition that the aim of the social security system
is to tackle "social injustice and economic insecurity," the authors of
the Discussion Paper create one illusion after another that this or
that
measure would fix the system.
As a
starting point, the
aim of Canada's social security system should be the same as of the
economic
system. In other words, it must recognize the inviolable rights of all
Canadians by dint of their being human. What are these rights? The
first
is the right to a livelihood. As people are born to a society where
production
is social, it is a violation of their inviolable rights to demand that
they must fend for themselves or that they should be at the mercy of
"market
forces." The notion that social security programs should target the
"needy"
is a flawed one. Within this logic, the most economically powerful are
considered the "neediest" as it is they who must be assisted to become
successful in the world market. From the other side, the disabled and
the
most poverty-stricken, those who are really the victims of the social
security
system in the first place, are not considered the "neediest." The issue
is raised in the Discussion Paper of prevention instead of a kind of
crisis
management. But prevention can only be accomplished if the social
security
programs are based on the right of all Canadians to a livelihood by
dint
of their being human, on the basis of the standard of living they are
used
to and which the society has achieved. If this were recognized, the
thrust
of these programs would be entirely different.
Why does
the Discussion Paper
not want to look at its flawed logic which stems from ts rendering of
the
developments since the 1940s? If the period under question is analyzed
without any preconceived notions, we would come to the conclusion that
the capitalist system does not provide for the people. It is a system
of
injustice, exploitation and insecurities. Governments, both federal and
provincial, incurred huge debts in order to save the system but it did
not work. The same governments are calling upon the people to pay back
the debts and decrease deficits by bearing the entire burden on their
own
backs, but this will not fix the system either.
In my
estimation, social
policy should be based on the modern definition that the right to a
livelihood
is a fundamental and inviolable right which governments are duty-bound
to realize. Starting from this, we must look at the entire social
product
and, after deducting costs, all the rest must be invested in securing a
livelihood for the members of society. This includes food, shelter,
clothing,
education, health care, etc. Such a thing, of course, cannot be done at
this time because the social product is expropriated not by the people
but by those who the Discussion Paper wants to help succeed in the
"global
market". Not only that, but people are taxed after they have already
been
expropriated once. Then they have to pay UI and various other kinds of
taxes. How can social security eliminate "injustice and insecurities"
when
the aim of the government is not this but to obtain "new funds" by
cutting
back on social programs? For instance, it will procure a great deal of
"new funds" if students in higher education have to indebt themselves
even
more to finance their education.
It is
extremely clear that
it is the very businesses which want to succeed in the "global market"
which need the highly skilled and up-to-date labour force. Why then
should
they not pay for it? Why on earth should the people incur such an
expense
themselves when the result will be to further the tendency in which the
rich are concentrated on one pole and the poor on the other, with a
large
number of insecure people in between? If there is to be justice and
compassion,
why should the big businesses not be called upon to pay for upgrading
the
skills of the employees they require?
The
Discussion Paper presents
another dangerous notion which I think should be discarded at once. It
suggests that "jobs and growth" would solve the problem of those who
are
at the receiving end at this time. The twentieth century has seen a lot
of jobs and a lot of growth but unemployment has remained a
fellow-traveller.
Besides the Great Depression, a great calamity for the people, the
present
holds some very grave dangers in which old jobs are being lost at a far
greater rate than new ones are being created. Businesses, giant
monopolies,
in order to compete, bring about technological and scientific changes
for
their own ends and they will keep an outmoded system if it helps them
to
do so. What is to be fully appreciated is that the scientific and
technical
revolution should not be equated with the problems people face.
Canadians
strongly feel that
they do not exercise control over their lives. They are sidelined in
relation
to building the nation for the twenty first century. The Discussion
Paper
also sidelines them as they are merely given a role of having an input
within an already decided framework. Far from agreeing with the
framework
of using social programs as a source of "new funds", governments should
increase investments in education and the health sector as well as
provide
for those who are unemployed or unable to work. While the great sum
invested
in this manner will provide its dividends in a short period of time, it
will also be a concrete step in the direction of changing the
status-quo.
In my
opinion, nation-building
should be taken up seriously. A modern nation-state cannot be built
without
courage and a plan of action based on modern definitions. By putting
the
well-being of all human beings at the centre, a new direction for
society
can be found. The welfare of Canadians cannot be left to the mercy of
"market
forces". It has to be guaranteed. This will create the conditions for a
sound and prosperous society. Far from aiming to "decrease" child
poverty,
the aim must be to eliminate it. It is the very programs as they
presently
exist which have brought one in five Canadian children to the brink of
despair. The Liberal government should look seriously into placing a
moratorium
on the interest payments on the debt as the source of all necessary
investments
at this time. The government should carry out a detailed study on how
this
could be done and to what extent.
The
government has so far
rejected this as a possibility and choice. It says it has obligations
toward
its creditors. What about its obligations towards Canadians? When a
family
considers its budget, first it takes into account its expenditures on
food,
shelter, clothing, health care and education according to the level
required
by the society in which it lives. If its revenues fall short in terms
of
meeting these expenditures, then it claims a deficit and could
undertake
to borrow or acquire funds to bridge the gap. This is a concrete
scenario
which Canadians understand. Why does the government of Canada not
follow
a similar course of putting the claims of Canadians on society in first
place? Is the national product not produced by Canadians through their
labour? Do they not have first claim on the tax monies expropriated
from
them?
This is the
issue the Discussion
Paper glosses over throughout. It bases itself on a budget already
enacted,
in which Canadians had no say, and proposes to discuss how to get
better
value from the same dollar already allotted. According to the
Discussion
Paper, "reform must take place within the fiscal parameters required to
meet the government's target of reducing the deficit." This cannot be
considered
a starting point for a discussion on how to reform Canada's social
security
system if the aim of such a system indeed be to provide Canadians with
social security.
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