From football to property and beyond, inequality is the mother of all crises

Inequality does indeed affect us all, both physically & mentally. It's foolish to say that the poor people are happier than wealthy people. No, poor people are not happy because they have to work that much more to earn just enough to fill theirs & their children's stomachs. Then, there are education costs, housing costs, utilities, healthcare costs, & now, even the clean, drinking water costs money. Add the social exclusivity of poor people & their families due to their poverty & the life of the poor person is just hellish.

To develop & provide sustainable resources to everyone equally, the wealthy & the poor, every country needs to invest in its infrastructure & economic policies. Although, the writer of this opinion post takes a simplistic view that if Netherlands can increase taxes, & also spread its tax net, to help out the vulnerable sections of its own populations, then everyone else can, it is pretty much impossible to do that without proper practice of faith & religion.

How will religion help in alleviating poverty & instituting equality among the populace? Netherlands is a small Scandinavian country with a much smaller population than many developing countries, like Pakistan, India, Brazil, Argentina, Nigeria, Kenya, Thailand etc. It is also a pretty much a homogeneous population, very much unlike many other developing countries around the world. Still, it's impossible to eradicate inequality because the rich control the political policy-making machine.

This eradication, or at least, alleviation of inequality, can only happen through ethical people in governments & policy-making area. Increasing taxes or spreading the tax net far & wide may help in increasing the government coffers but won't help much if that money is once again ends up in the pockets of rich executives & wealthy citizens of the country, or politicians loot that money. So, how does the general public ensure that government is full of good, ethical people? And even after identifying such honest people, can the general public act rationally enough to bring them to power & stick by them, while, they increase taxes on rich people, & use those taxes to upgrade the horrible situation the general public is living in? Remember, all this will take time, whereas, the general public will want to see substantial major changes as soon as possible.

Only ethics can help there, & ethics comes through religion. Ethical & religious people will need to become leaders & consider government coffers public money & hence, need to be spent on them.

Besides ethics & religion, huge changes in electoral policies need to be implemented. These kind of substantial changes to alleviate poverty & inequality need a good & long time frame, like a decade or more, easily. But, in most democracies, even when they are stable, a government & leader has about a few years, anywhere from 8 to 10 years to finish his / her work. Of course, that has to be done, if & when, opposition parties are silent & happy with what the government is doing (then, what's the point of the opposition party?). But, these fundamental economic & social changes can easily take couple of decades to meaningfully show any changes in the system.

So, inequality indeed adversely affects a major portion of the general populace, but alleviating or eradicating inequality requires a lot more work than simply changing the tax system (even that is huge work in itself).

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https://www.theguardian.com/global-development/2016/feb/08/football-property-prices-beyond-inequality-mother-of-all-crises-tax-lilianne-ploumen

Inequality affects all of us. I live in Amsterdam, where house prices are now rising so sharply that ordinary, hard-working people don’t get a look-in. In London, it’s been like that for years. Whole neighbourhoods are unaffordable. Century-old football clubs have become the playthings of billionaires.

And the trend continues. More and more of the world’s wealth is in the hands of fewer and fewer people. I believe that tolerating this growing inequality will go down in history as humanity’s biggest mistake since communism.

People are essentially social animals. They can inspire each other, but they can also frustrate and discourage each other. And that’s what gross inequality does. It unravels the very fabric of our societies. It robs people of decent jobs and decent pay. And it robs them of their sense of purpose and self-worth.

In developing countries, the gap between rich and poor is far bigger. And it isn’t merely a technical issue, it is the result of political choices. Inequality is truly the mother of all crises. Whether it is conflict, climate change, economic stagnation or migration flows, inequality is always a major underlying cause.

Last autumn, the UN adopted new global goals. One of the main targets is to eradicate extreme poverty by 2030. To achieve that, economic growth must stay at the level it had for the past 10 years and its benefits must be far bigger than average for the poorest 40%.

The challenge we face is summed up in the slogan: “Leave no one behind”. The smartest policy here is to invest in the poorest of the poor. If we don’t, there is no way we will defeat extreme poverty by 2030. Which means we won’t generate the economic growth needed to achieve the other global goals. And we won’t reach our climate goals either.

“Leave no one behind” is also a moral imperative. In the past 25 years, globalisation has helped the world make spectacular progress on poverty. But at the same time we’ve allowed large groups to lag behind, and an even larger group to fall by the wayside completely. One of the main causes is exclusion. Whether it is on the basis of gender, religion, disability or sexual orientation, entire groups are being left out.

The mantra that no one should be left behind offers hope of a much-needed correction. It means managing globalisation properly. It means ending the unbridled power of elites. If realised, it would mean everyone could finally benefit from – and participate in – global development.

We know how to make this happen. Last year, we analysed Dutch policy to see how we could contribute more to inclusive development. It resulted in a plan of action worth €350m (£269m) that we are now putting into practice.

The plan consists of 20 measures across two areas. The first involves generating work and income for African women and young people with poor future prospects. The second consists of 10 measures to prompt robust political dialogue with developing countries on inclusive growth and development.

That dialogue is crucial, because resistance to change is often strongest precisely where change is needed most. In many poor countries, elites cling stubbornly to wealth and power until conflict, death and destruction are inevitable.

But the most powerful weapon against inequality is tax. Governments have to fight tax avoidance and tax evasion. My country has initiated the renegotiation of 23 tax treaties. We’ve proposed anti-abuse provisions to ensure that the Netherlands is no longer an attractive option for companies that want to avoid taxes. And we now forgo tax exemptions on goods and services provided under official development assistance.

At the same time, we need to broaden the tax base in the developing countries, which often rely on consumption taxes that make the poor pay a higher proportion of their income in tax than the rich. These countries need a progressive tax regime. And for that they need assistance in administering and collecting more complex forms of taxation, such as income and wealth taxes.

Taxation is not a popular subject for politicians. But it deserves far more attention. A recent study, by Jan-Emmanuel De Neve and Nattavudh Powdthavee, brings further proof that higher taxation equals more happiness.

For many developing countries, the tax burden is still 10-15% of gross domestic product. According to the UN, they’ll have to raise collection to about 20% just to be able to finance their share of the global goals. In Scandinavia, the average tax burden is more than 45%. I wish the same for every country! Provided the money is spent well, of course.

So we have our work cut out. To the super rich, I say: trickle-down is dead. To the elites and the kleptocrats in poor countries, I say: there’s a limit to how high you can build the gates around your communities. The time has come to pay. Make sure the payment is in taxes.

The losing game of publicly financed sports venues

Another great article on how taxes taken from hard-working public are used for something from which most of the general public will never get any meaningful benefit, & it reduces the money a municipal / provincial / state / federal government has to put it towards a better cause. Governments of all levels in the Western world are crying for more money & are putting in more austerity measures to cut expenditures & increasing taxes.

All the while, these same governments are spending the few money they have on things that are completely useless. These monies could be used for building more affordable housing for homeless & hence, reduce homelessness, or improving infrastructure (water pipelines, public transit, roads, cheaper & sustainable energy), which can also create jobs, which in turn, creates more tax revenue for the government, or simply providing or increasing funding for any number of social causes & NGOs.

But nooooo. The taxes from hard-working public, who itself, is trying to scrimp & save every nickel & dime by buying unorganic, cheap & unhealthy food, for instance, are being used to built expensive stadiums, which ultimately benefit the wealthy owners of sports franchises. They themselves pay much less in taxes but take full benefit of other people's taxes.

But then again, as the article asks that are governments merely stupid to bend to the demands of these wealthy individuals & then answers right away that sports subsidies are a political winner. So who is to blame here? Government or the public. The same public who will give their hard-earned money to a wealthy individual & wealthy players, & gets a paltry return for its own investment. Ironically, while the owners & players are swimming in cash & laughing how they have duped the public, the public is also not only cheering "their team" (who will leave the city as soon as it bleeds the city dry) but also buying expensive merchandise with their own money & still giving their taxes. I blame the public who claims to have open eyes & ears & have common sense, but then take such a stupid step.

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http://www.theglobeandmail.com/report-on-business/the-losing-game-of-publicly-financed-sports-venues/article25563294/

The people of Quebec City & Edmonton are falling prey to one of the oldest con games – the notion that spending public money on pro sports venues is a sound investment.

Facts don’t seem to matter in this game. And your city could be fleeced next.

Stacks of independent research over many decades have shown that building a stadium or luring a new franchise does little for a city’s economy. They typically don’t generate significant new tax dollars, jobs or growth. In most cases, the money would be more wisely spent on badly needed public infrastructure, such as roads, transit or schools.

And yet, governments serially ignore the evidence & continue to shower subsidies on team owners & their media partners.

In Quebec City & Edmonton, governments are currently sinking hundreds of millions of dollars into new arenas. In Quebec City’s case, the aim is to attract an NHL franchise. The rationale in Edmonton is to keep its team, the Oilers, from leaving.

Gobs of taxpayer cash will similarly be needed if Montreal Mayor Denis Coderre gets his wish of bringing professional baseball back to the city. The price tag for buying a franchise & building a new baseball stadium – presumably, a domed one – will top $1-billion. And it won’t happen unless taxpayers pick up a big chunk of the tab.

So why are governments so gullible?

The simple answer is that sport subsidies are a political winner.

They’re sold as investments in the economy. But it’s really about civic pride, the thrill of the game & cheering for the home team.

Montrealers, for example, overwhelmingly support the idea of bringing baseball back to their city more than decade after the Expos left for Washington, D.C., according to a recent Abacus Data poll. Nearly 90% of 500 residents surveyed expressed varying levels of support, ranging from lukewarm to strong. Just 12% are against it. Roughly 8 out of 10 respondents said Major League Baseball would be good for the economy & generate more taxes for the city.

The reality is quite the opposite, according to numerous independent economic studies conducted over several decades in North America.

“The weight of economic evidence … shows that taxpayers spend a lot of money and ultimately don’t get much back,” according to a 2001 study, “Should Cities Pay for Sports Facilities?” for the Federal Reserve Bank of St. Louis. “And when this paltry return is compared with other potential uses of the funds, the investment, almost always, seems unwise.”

The subsidies rarely stop once the venues are up & running. Billions of dollars a year in hidden subsidies flow to existing sport venues, according to a 2012 book by Judith Grant Long, now an associate professor of sports management at the University of Michigan. In her book, Public-Private Partnerships for Major League Sports Facilities, Ms. Grant Long found that taxpayers are subsidizing 78%of the average professional sports facility in Canada & the US.

Earlier this year, US President Barack Obama moved in his budget to close down one financial vehicle that has encouraged subsidies by barring the use of tax-exempt bonds to finance professional sports facilities. In Canada, governments often fund the projects directly from their own coffers, tapping into lower government borrowing costs.

The real story, however, may be that the main beneficiaries of government largesse are team owners.

Quebec City’s $400-million Centre Vidéotron was built with a combination of municipal & provincial government money. It's ... a lure for an eventual NHL franchise sought by Videotron owner Quebecor Inc., controlled by Parti Québécois Leader Pierre Karl Péladeau.

The cost of Edmonton’s $480-million Rogers Place arena, due to open in time for the 2016-17 NHL season, is being split between the city & wealthy team owner Daryl Katz, who had earlier threatened to move the Oilers to Seattle.

Mr. Katz, who also owns the Rexall pharmacy chain, is now poised to cash in with a massive mixed-used residential, office & entertainment development he’s planning for the surrounding area, dubbed “The Ice District.” The $2-billion project will include 1,000 residential units, 1.3 million square feet of office space in skyscrapers that will rank among the tallest buildings in Western Canada, a luxury hotel & a public plaza with an outdoor skating rink, casino, restaurants & stores.

The private development wouldn’t make much sense without the subsidized Rogers Place as its anchor. And businesses elsewhere will lose as customers inevitably migrate to the new entertainment area, making the deal a wash on the city’s tax ledger.

This losing scenario will play out in your city too unless someone stands up and says, enough.

That $75 Million in ads you paid for

Millions are being spent on self-promotion & self-advertisement by Canadian government, but nobody sees this before complaining that taxpayer money is always misappropriated in only the corrupt "developing" countries. "Developed" countries are seemingly all free of corruption & clean. Remember that what you see externally in developed countries is completely different to what is actually happening inside.

Social services are being cut, education budget is being reduced, health budget is constantly decreasing ... all because of not enough of taxpayers' money being in the governments' coffers to spend on the taxpayers' welfare, but there's definitely enough for self-promotion & advertising how great the government is doing.
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http://www.theglobeandmail.com/globe-debate/that-75-million-in-ads-you-paid-for/article23824771/

What is the proper word? Is it brazen? Shameless? Unprincipled? Immoral? Choose the word that you think best suits the Harper government’s unprecedented use of public money for self-promotion.
 
Let’s not be precious, of course. Other federal governments have promoted themselves using what the Harper government jokingly calls “hard-working taxpayers’ ” money. None, however, has done it so openly, lavishly, frequently & unashamedly.
 
With just six months between the budget & October’s federal election, the sluice gate of advertising spending will be open wide. The money will come from taxpayers & from the party itself.
 
Recently, the government had to report the amount it spent on advertising. It was $75-million a year for 2013-14, up from $69-million the previous year. This being an election year, the figure will likely be higher still. We already know that the government has allocated $7.5-million for spending to tout the budget’s virtues.
 
That means anyone who watches the forthcoming Stanley Cup playoffs can expect a deluge of advertising, because the government prefers to use hard-working taxpayers’ money in the most expensive time slots: hockey playoffs, Super Bowl, Academy Awards.
 
The explanation given for this spending is shameless, the kind of explanation that gives politicians a bad name everywhere as systematic liars. We need to spend the money, the government says, in order to explain how taxpayers’ money is being spent. Yet anyone who has watched the Harper government’s advertisements knows they are there for promotion, not information.
 
They use government websites, too. Check out the Fisheries and Oceans one, for example. There, you will find advertisements for the government’s recent announcement of millions of spending for harbours & ports across the country.
 
Recently, the Conservative Party sent an urgent letter to its supporters asking for money. After the budget, it said, the party needs money to promote the document’s low-tax, pro-growth policies in the face of what the letter described as the “Liberal” media that always deforms Conservative accomplishments.
 
The letter conceded briefly that there were a few pro-Conservative voices in the media, but insisted the bulk of the media is systematically hostile. This media-baiting is typical of all Conservative cash appeals: The party is surrounded on all sides by enemies, elites & hostile media voices. Only if supporters give generously can the party’s message be communicated.
 
Which is ridiculous, of course, since the Liberal media argument flies in the face of AM talk radio, the Sun Media chain (whose leader, Paul Godfrey, is a strident pro-Conservative voice), the National Post, plenty of private television & many other columnists & editorialists across the country. But “them against us” is a proven money-earner for the Conservatives, so they will stick with it.
 
Before the election writ is issued, parties can spend what they want of their own money. Since the Conservatives have more of it than the Liberals & New Democrats, they will spend this advantage & marry it with the government advertising.
 
The use of public money to promote the government has been much commented upon, usually negatively. But the Conservatives don’t care about such criticism, believing that their supporters like seeing & hearing positive things about the government. They also believe that many Canadians don’t know where the money comes from for the ads, or they don’t care, having been conditioned to think that all politicians will do just about anything to get re-elected.
 
Who can blame voters for being cynical?