CANADIAN POLITICS:

THE RICH GET RICHER:

Oh my, is this "news" ? During good times the rich pull ahead as they manage to grab the fruits of expansion. In bad times guess what ? They keep pulling ahead. Good or bad they will get their paws into the till. Here's an interesting item about the widening of inequality here in Canada.

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Canada’s wage gap at record high: OECD
tavia grant
From Monday's Globe and Mail
Published Monday, Dec. 05, 2011 5:00AM EST
Last updated Monday, Dec. 05, 2011 7:56AM EST
The gap between Canada’s rich and poor is growing amid shifts in the job market and tax cuts for the wealthy, according to a study that shows income inequality at a record high among industrialized nations.

A sweeping OECD analysis to be released Monday shows the income gap in Canada is well above the 34-country average, though still not as extreme as in the United States.

Income inequality is a hot topic these days, as mirrored by the Occupy movement’s concerns over the growing gap between the rich and the rest. Protesters aren’t the only ones preoccupied with the disparity; prominent figures from Warren Buffett to Nobel Prize-winning economist Joseph Stiglitz have also fretted over the growing gap, exacerbated by the recession and weak recovery.

“Income inequality increased during both recessionary and boom periods, and it has increased despite employment growth,” said Stefano Scarpetto, the Organization for Economic Co-operation and Development’s deputy director of employment, labour and social affairs, during a presentation of the report.

A growing wage gap carries significant economic consequences. Countries with greater income inequality tend to see shorter, less sustained periods of economic growth, an IMF paper this fall concluded.

“Greater inequality raises economic, political and ethical challenges as it risks leaving a growing number of people behind in an ever-changing economy,” the OECD paper said.

Its 400-page analysis, entitled Divided We Stand: Why Inequality Keeps Rising, a follow-up study to one released in 2008, delves into reasons behind the growing gap.

Canada in particular has seen a widening chasm since the mid-1990s. OECD research shows the average income of the top 10 per cent of Canadians in 2008 was $103,500 – 10 times than that of the bottom 10 per cent, who had an average income of $10,260, an increase from a ratio of 8 to 1 in the early 1990s.

The richest 1 per cent of Canadians saw their share of total income rise to 13.3 per cent in 2007 from 8.1 per cent in 1980.

Moreover, the richest of the rich – the top 0.1 per cent – saw their share more than double, to 5.3 per cent from 2 per cent. At the same time, the top federal marginal income tax rates tumbled – to 29 per cent in 2010 from 43 per cent in 1981.

Two factors explain Canada’s growing gap: a widening disparity in labour earnings between high- and low-paid workers, and less redistribution.

“Taxes and benefits reduce inequality less in Canada than in most OECD countries,” the study said.

Shifts in the labour market are a key reason why the gap is widening, Mr. Scarpetto said. The prevalence of part-time and temporary contract work is eroding wages. Technological progress has been more beneficial to high-skilled workers, while the gap in men’s earnings in particular is growing ever wider.

The gap in hours worked is growing too, as in other OECD nations. Since the mid-1980s, annual hours of low-wage workers in Canada have fallen to 1,100 hours from 1,300 hours, while those of higher-wage workers fell by less, to 2,100 from 2,200 hours.

Rising self-employment also played a role, as the self-employed typically earn less than other full-time workers. This explains more than one-quarter of the increase, the report said.

Taxation is another factor. Before the mid-1990s, Canada’s tax-benefit system was as effective as those of the Nordic countries in stabilizing equality, offsetting more than 70 per cent of the rise of market-income inequality, the report said. The redistributive effect has declined since then, so that taxes and benefits now offset less than 40 per cent of the rise in inequality.

The OECD report isn’t the only analysis of Canada’s growing income gap. A September study by the Conference Board of Canada found income inequality has been rising more rapidly in Canada than in the U.S. since the mid-1990s. Its analysis of 18 countries found that Canada had the fourth-largest increase in inequality between the mid-1990s and late 2000s.

There are social implications too, with more academic research linking income inequality with poor health outcomes. Last month, a study by Montreal’s public health agency found an 11-year difference in life expectancy between men who live in its poorest neighbourhood and those its richest.

The OECD report makes a slew of suggestions on how to narrow the gap. Taxing the rich more is one, along with closing loopholes and ensuring compliance with tax rules.

More importantly, the report said labour market outcomes could be improved by investing more in people – through education, skills training and job retraining programs. “More and better jobs, enabling people to escape poverty and offering real career prospects, is the most important challenge.”

CONSUMER AFFAIRS:

LISTERIOSIS ROUND 2:

Since September 17th the Maple Leaf Foods plant at the centre of the recent listeriosis outbreak in Canada has been reopened, and it is now processing meats even though the release of the product has still not been authorized. In the meantime, two days ago, the CFIA has also announced a recall of Dunn's Famous brand smoked meats distributed to Costco stores in Québec, Ottawa and the Atlantic provinces.

Today,however, it came to light that intensive testing has shown that foods from the Maple Leaf plant are still occasionally contaminated by Listeria. See the article below from today's Globe and Mail.

Company spokesman Michael McCain rushed to put a positive spin on matters. You can see the basic story of his reply in an article from the Windsor Star today. The main thrust of his argument is that "listeria is everywhere", and that we inevitably consume the bacteria everyday. I guess this means that we shouldn't worry about it if it appears in his plant. The good gentleman made some rather "weaselly" comparisons to the positive rate in the Maple Leaf plant and other surveys in Canada and the USA where sampling was done at the point of sale. In actual fact US law requires that there be no listeria at the point of production, as already pointed out on this blog. Sampling days later after transport and the opportunity for the bacteria to multiply would inevitably lead to a higher positive rate. What McCain is actually saying is that his company should be allowed to slip back into a less intensive regime of testing because somehow Listeria is ubiquitous. Molly would suggest that the opposite is true, that this "trial run" shows that the Maple Leaf plant should remain under permanent high levels of testing and supervision. They have proven, after all, that they cannot achieve the standards required , and achieved,across the border, and this says that the only way to assure the safety of their product is to keep the present testing regime. Perhaps make it even tighter.

The report of McCain's press release on the radio today was even more bizarre than what was reported in the Windsor Star. Molly will try and search down the full text, in the hopes it hasn't been altered by after the fact proof-reading. Really, the proof-reading should have been done before issuing the statement. There were some real howlers there. Is Listeria really "the oldest organism on Earth" ? Cough,cough !. Then there was the Maoesque statement that ""Listeria is benign to the masses". Glad to hear that Chairman McCain, and assuredly it isn't the "primary contradiction". Wellllllll, I guess the "masses" don't include AIDS patients, organ transplant recipients, diabetics, old people, pregnant women, and newborn babies. The fate of such "running dogs" shouldn't impede the great and glorious march to profitability of the 'Peoples' Maple Leaf Party' , relying on Mao TseCain Thought. Wow, I love it.

Anyways, here's the article from the Globe and Mail. Do check in at the Food Safety First website for breaking news on this front as it develops.

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Listeriosis bacteria found at Toronto plant:
Four new positive tests confirmed in samples of meat at reopened Maple Leaf site
BILL CURRY
October 9, 2008
OTTAWA -- Four new positive tests for listeriosis have been confirmed in samples of meat at the Maple Leaf plant at the centre of the outbreak that has left 20 Canadians dead.

The plant was allowed to reopen on Sept. 17, but no product has so far been allowed to enter the market.

Yesterday federal officials from the Prime Minister's Office, the Privy Council Office and the Canadian Food Inspection Agency met to discuss the new findings that the bacteria is still present in the plant.

Since the plant resumed production, there have been 2,700 product samples and four positive test results for Listeria monocytogenes.

Paul Mayers, associate vice-president of the CFIA, confirmed the results in a telephone interview with The Globe and Mail.

"We've just received results related to these four positives," Mr. Mayers said. "The plant is operating. The product isn't reaching the marketplace.

"We will, with Health Canada, conduct an assessment to assess what these findings might mean in terms of the ongoing activities in the plant and whether any additional measures would be necessary in relation to product from that plant. Of course, that assessment has not yet been conducted."

He said CFIA and Health Canada will now do a full assessment and evaluation of the positive findings.

Mr. Mayers confirmed that the CFIA informed both the Privy Council Office and the PMO about the positive findings and said both agencies are regularly in the loop on new developments related to listeria.

The findings, which were posted last night on the CFIA's website in the wake of inquiries from The Globe, come as the public service is under orders not to create waves during the federal election campaign.

Bob Kingston, president of the Agriculture Union representing CFIA inspectors, said he was "flabbergasted" by the positive tests, given the scrutiny the plant is under. "It's mind-boggling. They're cleaning up their place with the whole world watching and they still don't get it right?"
The union leader said the findings underscore his organization's campaign to block efforts to transfer certain food safety responsibilities to industry.

The most recent government announcement related to listeriosis was a recall issued Tuesday by CFIA, warning the public not to eat certain Dunn's Famous brand smoked meat pouches that were distributed to Costco in Quebec, Ottawa and the Atlantic provinces.

To date, there have been 20 deaths where listeriosis was the underlying or contributing cause, another three deaths where listeriosis was present and a further six deaths in Ontario that are still under investigation.

The latest development comes as the outbreak has already become an issue in the federal election campaign. Agriculture Minister Gerry Ritz was forced to apologize earlier in the campaign for joking about the issue during an internal government conference call. In that call, Mr. Ritz reportedly said the government was suffering a death by a thousand cuts, "or should I say cold cuts."

Since the outbreak began, there have also been numerous news media reports based on government documents either leaked to the news media or obtained through access to information requests showing concern had been expressed internally about the quality of food safety in Canada.

On Sept. 6, Prime Minister Stephen Harper announced an independent investigation into the listeria outbreak, which traced back to a Maple Leaf meat plant in Toronto. The government has yet to name the head of the investigation, but has released terms of reference.

The investigation will not be allowed to come to conclusions regarding the civil or criminal liability of any person or organization.