PATHWAYS TO HOMELESSNESS #2

 Homemade Solutions

PATHWAYS TO HOMELESSNESS #2
 Written by,  Sharleen Cainer, BSW RSW
   The trickle-down economic theory has been a debate since the 20th century. John Maynard Keynes proposed that money should flow from government into the hands of the wealthy who would then spend it to finance their businesses. The theory was that this economic initiative would do two things. It would stimulate the economy through the production output from a wealthy business and therefor put money into the pockets of the masses, who were working in these companies owned by wealthy entrepreneurs. The masses will then spend and pay taxes on what they earn, plus buy. That revenue will then flow into social programs. Some argue that it goes the other way. The masses pay higher taxes, while the wealthy is not taxed at the same rate, therefore the flow of financial gain flows from the poorer demographic of the population into the pockets of the wealthy who enjoy spectacular tax breaks.  We have now arrived at an interesting point in time where .6% of the population controls 72% of the wealth.  
Let's talk a little bit about privatization. Take for example Hwy 407. It was planned in the 1950's, but construction started in 1987. The government then decided to make it a toll road so as to alleviate a financial issues which were on the backs of the taxpayer.  Highway 407 ETR was eventually sold for over $3 billion to a consortium of Canadian and Spanish investors. Since the privatization of the 407ETR, there are issues with things such as plate denials for unpaid 407 ETR bills, increasing tolls, false charges, and some questions and arguments about road safety, maintenance, and snow removal. Speaking of increased rates, the 407 now operates like the Ontario Hydro. There are different charges for the use of the 407 ETR, Certain exits off the 407 are more expensive than others. Then there is the charge per kilometer that varies depending on the time of use on each day. Determining what you may pay on any given moment you are using this road, is paramount to plotting the arrival of a moon module from outer space.
Mike Harris, the premiere of Ontario at the time, put forth that there should be tolls on 407 until the debt of construction was paid off. He indicated there would be a rise in the tolls of no more that 30%. The tolls have risen over 200%, from 10 cents a kilometer to 30 cents a kilometer. The kilometer rates now range from 22.50 cents to 88.97 cents comparatively to other Canadian toll roads which range from .44 cents a kilometer to .13 cents per kilometer. Another concern is that the Canadian taxpayers received $3.1 billion for a road valued at $30 billion in the sale. The profits are divided, and the Canadian Pension Fund will receive a portion of the profit with the rest going to the buyer. There is of course no information to be found as to what is the monetary trickle-down responsibility to the Canadian taxpayer from a Canadian/Spanish corporation called SNC-Lavalin Group Inc.  In 2019, the corporation sold 10.01% of the highway to the Ontario Municipal Employees Retirement System (OMERS) for $3.25 billion. After the sale, SNC-Lavalin Group Inc would own only 6.76% of the highway. (Wikipediae) Let us not feel sorry for SNC-Lavalin Group Inc. Their 6.76% ownership in 407ETR gives them a healthy asset of $4.734 billion. The dividend payout on the 407ETR monthly revenue is 182%.  That is revenue that was Canadian build, Canadian paid for and privatized, isolating that revenue from public access. Through the tolls, we continue to pay for this road.
Other corporations have also followed the same pathway from public purse to privatization. The Skydome, which became the Rogers Centre. In what appeared to be back door dealings, the government paid $53million, and several other corporations paid $5million each, along with each Blue Jay, for ownership of what was to be known as the Rogers Centre. The corporations that invested, Coca-Cola, TSN, CIBC. The top breweries, Carling O'Keefe, Labatt's, Molson were invited to pay $5million each for exclusive advertising rights.  Complaints from other corporations were that the cost of doing business was shockingly low, and there was no competition. The concept of the skydome was initially sold to the taxpayer as a phenomenal job creation vehicle. People were so excited about the jobs that were to be offered, in this spectacular stadium. People arrived, awe-struck by the magnificence of this structure, like they were arriving at Mecca. The jobs that were offered then and continue to be offered now, due to the contractual agreements with the Rogers Center are in the food service sector, at a minimum wage. The people that work in the Rogers Center can barely support themselves on their wages. In this economy, the price of housing, the cost of food, in Toronto, and the GTA far exceeds what an employee at the Rogers Center can accomplish.
The CNR (Canadian National Railway) struggled financially for many years. It was reported to the taxpayers as a losing corporation that Canada could not afford to maintain.  It was felt that government took to long to make decisions and the railway was beginning to operate at a financial loss. The CNR, initially a Crown corporation has been privatized for more than 25 years is now worth more than $100 billion. Bill Gates is the single largest shareholder in CN stocks.
While projects to end homelessness depend on government funding, the homeless population in Durham Region expands like a balloon. People who have trusted government and depended on earning an honest wage are struggling, losing their homes, unable to live a healthy balanced life, as the trickle-down theory becomes the biggest con. Taxpayers pay approximately 30% of their income to taxes. The money is definitely flowing uphill into the pockets of the wealthy elite.  Let me just offer a condolence: Dear Taxpayer, I am deeply sorry and regret to inform you, but you are now hemorrhaging money. The End.