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Annual Jose Marti Dinner and Dance - Canadian-Cuban Friendship Assoc., Sat., Feb. 3, 7 pm Dinner, 8:45 pm Cultural Program, at Bloor St. United, 300 Bloor St. W. Live Band "Pablo Terry & Sol De Cuba", door prize, raffle, cash bar. $25 advance ticket (includes dinner), $10 dance only (after 9 pm). Limited dinner places - sold out last year. Cheques to CCFA Toronto, PO 743, Stn F, Toronto, ON. M4Y 2N6, tel. 905-951-8499.
Poverty and debt are growing in both Canada and the world, said the authors of two separate studies on wealth released in early December. The reports, produced by Statistics Canada and a UN agency, respectively, paint the all-too familiar picture of the widening gap between rich and poor in society.
"An uncomfortably large proportion of Canadians are living so close to the line that they are unable to save for retirement," said Hugh Mackenzie, research fellow with the Canadian Centre for Policy Alternatives (CCPA) about the Statscan study. "Economic insecurity is on the rise."
The study found that the concentration of wealth at the "high end" continued to grow from 1999 to 2005, with 80% of Canadian families holding around 30% of the total net wealth in Canada.
Debt also increased during this period, and at a faster rate than net worth. More than 6.5% of Canadian families literally operate with negative net worth. In fact, over the past six years the median debt load for families has risen from $32,300 in 1999 to $44,500 in 2005 - an increase of 38%.
"Despite our retirement income system's heavy reliance on private pensions and RRSPs for retirement income, nearly 30% of Canadian families have no retirement savings at all," says Mackenzie.
The crisis isn't limited to Canada. According to a new report from the World Institute for Development Economics Research at the UN University, the poorer half of the world's population own barely 1% of global wealth - but the richest 2% of adults in the world own more than half of all household wealth.
The report deals with all countries in the world - either actual data or estimates based on statistical analysis - and examines what people own, less what they owe (most previous research has looked at income).
Not surprisingly, wealth is heavily concentrated in North America, Europe and some countries in the Asia Pacific region, such as Japan and Australia. These countries account for 90% of household wealth.
Some citizens of the rich countries have more debt than assets - making them, the report says, among the poorest in the world in terms of household wealth. (However, they are presumably better off in terms of what they consume than many people in developing countries.
(The following article is from the January 1-15, 2007 issue of People's Voice, Canada's leading communist newspaper. Articles can be reprinted free if the source is credited. Subscription rates in Canada: $25/year, or $12 low income rate; for U.S. readers - $25 US per year; other overseas readers - $25 US or $35 CDN per year. Send to: People's Voice, c/o PV Business Manager, 173 West Ave. North, Hamilton, ON, L8L 5C7.)
By Kimball Cariou
Public pressure forced the BC Liberal government to put the brakes on the privately-owned Urgent Care Centre (UCC), which opened on Dec. 1 in Vancouver. The emergency treatment facility is part of the False Creek Surgical Centre, a for-profit clinic specializing in medical treatment for the wealthy.
But the announcement that this clinic would expand into the emergency treatment area - charging $199 for immediate access to a doctor, and further fees for a wide range of services - sparked an angry response from the labour movement, the BC Health Coalition, and many other groups. The BC Federation of labour passed a resolution condemning the move, and some 200 delegates rallied at Vancouver City Hall on Nov. 30 to demand that City Council take action to block the opening.
The next day, the newly-formed "Group for the Security of the People's Health" organized a picket protest. The Group takes its inspiration from the famed surgeon Dr. Norman Bethune, who founded the Montreal Group for the Security of the People's Health in 1936 to campaign for socialized medical care.
A statement from the Group pointed out that Bethune's call to "take the private economic profit out of medicine," supported by political leaders like Saskatchewan premier Tommy Douglas, finally prevailed with the establishment of Medicare, which ensures that necessary medical care is provided free of charge to all Canadians through a public system.
"Today those principles are under constant attack by the profiteers who seek to create a two-tier system, in which the wealthy are first in line for quick access to all the best medical help, while the rest of us are left with an increasingly under-funded public system. The motive of private profit is once again becoming a dominant force," says the statement.
"The push to impose for-profit health care is more advanced in British Columbia than in any other province, according to the Fraser Institute, which favours this shift. The opening of the Urgent Care Centre, which provides emergency treatment for hard cash as part of the False Creek Surgical Centre, is the latest step towards a two-tier system...
"Having received their training in Canada's taxpayer-funded public education system, the physicians and other care-givers in such private clinics are now using their expertise for their own private benefit, effectively reducing the level of services available to the public through the Medicare system.
"The Vancouver Group for the Security of the People's Health demands that the federal and provincial governments take immediate action to shut down the False Creek Surgical Centre and the Urgent Care Centre. These operations are blatant violations of the Canada Health Act. The spread of for-profit private medicine must be reversed, before it's too late. The security of the people, not the wealth of the few, must once again become the priority!"
Moving quickly to put out a political firestorm, the Campbell Liberal government forced the UCC's owners to announce that they will bill the public health system for emergency services rather than charging fees directly. But the issue is far from resolved, since the UCC is demanding to be paid on a higher - more profitable - level than the scale for public emergency health facilities.
(The following article is from the January 1-15, 2007 issue of People's Voice, Canada's leading communist newspaper. Articles can be reprinted free if the source is credited. Subscription rates in Canada: $25/year, or $12 low income rate; for U.S. readers - $25 US per year; other overseas readers - $25 US or $35 CDN per year. Send to: People's Voice, c/o PV Business Manager, 173 West Ave. North, Hamilton, ON, L8L 5C7.)
By Toby Sanger/CUPE/CALM
The Fraser Institute's third annual report on the financial sustainability of provincial health insurance found, to no-one's surprise, that "health care financing, as it is currently structured in Canada, is not financially sustainable" and that reform is needed to increase privatization of the system.
But their approach is highly faulty. it extrapolates 60 years ahead based on recent averages, and it doesn't confront the fastest growing component of health care - the rising cost of drugs.
The study took the most recent five-year annual average for provincial health care spending for each province, and projected that rate of growth 60 years into the future. It then measured "sustainability" by comparing this to similar projections for provincial revenues and GDP. They claim that health care spending is on track to bankrupt all provinces within 60 years.
There is no doubt that provincial health care costs have increased at a significant pace, increasing by an average of about seven per cent in the past 10 years. if these rates stay higher than revenue or GDP growth over the long-term, they are unsustainable. But the last five to 10 years have not been typical.
After years of neglect, federal and provincial governments have re-invested substantially in health care over the past decade. In particular, the 2004 Health Care Accords helped support additional provincial health spending. But this major accord is not mentioned in the report.
Worse, their study doesn't analyze that major factors have caused increases in health care costs.
This analysis would have shown that prescription drug costs have grown at the fastest rate of all components of provincial health spending. Provincial spending on drugs has increased an annual average rate of 11.9 per cent during the past five years and by 10.3 per cent over the past 10 years. This compares to an annual average increase in total provincial health care spending of 7.2 per cent during the past five years and 6.3 per cent over the past decade.
Using the Fraser Institute's paying more, getting less approach, we would find provincial spending on drugs would cost $6.7 trillion by 2065, if it continued to increase at the present five-year annual average rate of 11.9 per cent. This would amount to 113 per cent of the provinces' total health care spending in 2065 if it also increased at its most recent five-year annual average of 7.2 per cent.
Using these same growth rates to extrapolate over 100 years, provincial spending on drugs would amount to almost 400 per cent of Canada's GDP by 2105.
This illustrates two things: It is absurd to use atypical five-year growth rates and extrapolate them over 60 years, and the rising cost of drugs is clearly the most unsustainable part of provincial health care spending and needs to be controlled.
A national pharmacare program would control the rising costs of drug spending by establishing a national formulary and controlling the escalating prices that drug companies are charging.
The Fraser Institute report doesn't call for controlling drug costs. Instead, they suggest that spending on pharmaceuticals should be increased.
The report also doesn't mention the U.S., which follows the privatized prescriptions that the Fraser Institute advocates for Canada. South of the border, health care spending has increased by eight to nine per cent a year. Total spending on health care in the U.S. was equal to $5,274 per person - 137 per cent higher than in Canada - in 2002 (latest international comparisons from the World Health Organization).
Government spending on health care in the U.S. was equivalent to $2,374 - 52 per cent higher than in Canada. Health care administratiive costs in the U.S. are 300 per cent higher than in Canada.
The future of Canada's health care system needs serious consideration to strengthen public health care and make it sustainable over the long-term. But this report by the Fraser Institute is a shoddy attempt to support their corporate agenda of privatization.
To elaborate on an expression attributed to Mark Twain: "There are three kinds of lies: lies, damn lies ands statistical extrapolations based on short-term trends." Virtually all mutual funds are sold with the disclaimer that "Past performance is not a reliable indicator of future results." This report should have included that disclaimer as well.
(Toby Sanger is an economist with the Canadian Union of Public Employees.)
(The following article is from the January 1-15, 2007 issue of People's Voice, Canada's leading communist newspaper. Articles can be reprinted free if the source is credited. Subscription rates in Canada: $25/year, or $12 low income rate; for U.S. readers - $25 US per year; other overseas readers - $25 US or $35 CDN per year. Send to: People's Voice, c/o PV Business Manager, 173 West Ave. North, Hamilton, ON, L8L 5C7.)
Excerpt from the Draft Political Resolution for the 35th Central Convention of the Communist Party of Canada, which will be held February 1-4 at the Steelworkers' Hall on Toronto's Cecil Street.
Heading into the next federal election, Canada is truly at a crucial moment, even more significant than the "free trade" campaign of 1988. There may be some new elements in this campaign, such as the possibility that the new leadership of the Greens will make that party a bigger factor in the struggle for votes. The fight for democratic electoral reform remains crucial to efforts to break the monopoly of the "big parties" in Parliament; in this regard, it will be important to conduct a major battle for proportional representation in the upcoming review of electoral reform in Ontario. A breakthrough for PR in Canada's most populous province would be a major victory for democracy.
The goal of the Communist Party will be to help defeat the ultra right Harper Tories - who are now the preferred party of finance capital - and in the process to shift the balance of political forces within Parliament and in the country as a whole. This struggle can become an important step towards initiating a broader campaign for a progressive agenda. For this reason, Communists will be on the ballot in as many cities as possible, to expose the right-wing agenda and to win support for the policies outlined in our People's Alternative. The Communist Party will campaign to put people's needs before corporate greed, presenting a strategy to defeat neoliberalism and block the threat of fascism and war. Our candidates will link the battles around immediate issues with the perspective of a People's Coalition government, which can open the door to a socialist transformation of Canada. This is the special contribution of Communists as we campaign shoulder to shoulder with the people's movements to defeat the Tories.
While the election outcome may help improve the political terrain, the class struggle in the coming period will revolve mainly around the ongoing fight by the working class for better wages and working conditions, and around the struggles of the peoples of Canada to defend and improve social programs and equality rights, to defend our sovereignty, and to pull Canada out of the imperialist US war machine, Our aim will be to make a much greater contribution to these struggles, by building a larger, more effective Communist Party, within the ranks of the working class, and among all the movements of the people for a better life.