Introduction to socialism

1. FAILURES OF
SOCIALISM
BY: PAUL YOUNG, CPA, CGA
DATE: JUNE 3, 2020

2. PAUL YOUNG - BIO
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. SUMMARY
• Government has a role to provide social programs to its people.
• Social programs need to be properly funded and deliver in accordance with
value for money
• It is nice to provide free things for people, but it not free if someone else is
paying for it
• There are failures of socialism around the world like Cuba or Venezuela

4. AGENDA
• What is socialism
• What are social programs
• What is income re-distribution
• Private Sector
• Taxing the rich
• Social programs and tax fairness
• Issues

5. SOCIALISM

6. PROBLEMS WITH SOCIALISM

7. HOW DOES REVENUE FLOW FOR
GOVERNMENT?
• Government gets money via taxation
• Direct Taxation (Corporate / Personal Taxation)
• Indirect Taxation (Property Taxation, Sales Taxation, Excise/Duties Taxation
• Income from Crown Corporation
• User Fees
• Other taxation

8. SOCIAL PROGRAMS
• Education
• Healthcare
• Retirement
• Child Care
• Welfare
• Social Housing

9. HOW ARE SOCIAL PROGRAMS FUNDED?
• Taxation
• Equalization
• CST/HST
• Direct funding

10. WHY IS BUSINESS INVESTMENT
IMPORTANT?
• Business Investment
• Capital is required to develop and produce products for both domestic and
international exports (FDI and Domestic Capital)
• Business requires inputs like labor and material to produce goods for re-sale.
Consumer spending drives 2/3 of the economy

11. FAILURES OF SOCIALISM
Source - https://panampost.com/carlos-sabino/2017/04/27/socialism-is-failing-all-over-the-world/

12. NDP AND SOCIALISM
Source - https://www.thestar.com/opinion/commentary/2017/09/06/ndp-needs-a-radical-makeover.html

13. SOCIAL HOUSING FUNDING• Toronto Star - Affordable housing advocates: Cities and tenant rights groups who wanted the government to
increase investment in affordable and social housing were also left empty-handed. -
https://www.thestar.com/news/canada/2018/02/27/winners-of-2018-federal-budget.html
• Municipalities - https://fcm.ca/home/media/news-and-commentary/2018/fcm-statement-on-federal-budget-
2018.htm “that is why FCM called on the government to use Budget 2018 to kick-start the Strategy by
expediting already earmarked funds for social housing repairs. After years of chronic underfunding for
repairs, this move would have enabled housing providers to keep at-risk homes safe and open for vulnerable
families. But instead of protecting this vital part of Canada's social housing supply, this budget delays funding
for critical repairs that are ready to go ahead.
• BC - James said B.C. is in an affordable housing crisis and while she was glad to see the federal government’s
plans to increase loans for rental housing projects, the money is “back-end loaded,” so it won’t materialize for
a number of years. She said she wants to see the federal government step up with long-term funding and
strategies. Thom Armstrong, the executive director of the Co-operative Housing Federation of B.C., said while
the federal government’s big housing announcement came in 2017 there were also additions of note in this
budget, including $1.5 billion over five years for First Nations housing and the loan increase.
• “Guelph’s mayor says, from a municipal standpoint, the 2018 federal budget is not what he was hoping for.
Most notably, said Mayor Cam Guthrie, is a lack of funding in the budget for dedicated to social housing. The
federal government announced a National Housing Strategy in November and many — including Guthrie —
hoped the funding would begin to flow this year. The Federation of Canadian Municipalities said in a news
release that the federal government missed a key opportunity by not including funding in the budget. “We
were really lobbying hard to have some money dedicated to our social housing and the plan that came out
from the government, but there is really nothing there,” said Guthrie. ”Source -
https://www.guelphtoday.com/local-news/lack-of-funding-for-social-housing-in-federal-budget-disappointing-
says-mayor-850857
• “Half of the $4 billion that will be spent by 2028 will come from the provinces and territories with the other
half coming from the federal government. The government says the benefit will help support 300,000
households by 2028.”http://www.cbc.ca/news/politics/housing-national-benefit-1.4413615

14. TAXING THE RICH
@JustinTrudeau you and your govt should really
grasp value of money!
@AndrewScheer
• If you tax 100% of the top 1% in the USA it would
be only $1 trillion dollars
• The liberals tried to tax the top 1% and it was an
abysmal failure -
https://www.slideshare.net/paulyoungcga/2019-
election-top-1-wealthiest-canada-june-2019
• There are issues with tax codes in many
countries that need to be reformed -
https://www.slideshare.net/paulyoungcga/2019
-election-corporate-tax-and-business-
competitiveness-canada-june-2019
• Top 1% pay over 50% of their income in taxes
• Democrats and liberals are looking at wealth
tax
• Democrats and liberals never discuss tax
haven -
https://www.slideshare.net/paulyoungcga/2019
-election-taxation-reforming-the-ita-and-
shutting-down-tax-havens

15. VALUE FOR MONEY
• No were does the left talk about either size of government or getting value for money when it comes to
government. The left always thinks that there is taxation issue -
https://www.slideshare.net/paulyoungcga/value-for-money-and-comprehensive-auditing-all-you-need-to-know
• People misconstrue social programs with socialism. Many countries like the USA and Canada have great social
programs. The problem is getting the most out of social programs -
https://www.slideshare.net/paulyoungcga/2019-election-social-programs-and-taxation-canada-june-2019
• People also do not realize that many countries like Greece have unaffordable social programs -
https://www.keeptalkinggreece.com/2019/05/21/imf-greece-failures-bailout-programs/
• People like to talk about Scandinavia countries. The problem very people understand the high cost of living -
https://www.slideshare.net/paulyoungcga/scandinavia-vs-canada-economic-and-social-policies-november-2016

16. SOCIAL PROGRAMS AND TAX FAIRNESS
• Social programs are funded using tax dollars. More needs to be done to ensure social programs ar
deliver in the most efficient and effective manner -
https://www.slideshare.net/paulyoungcga/social-spending-and-tax-fairness-197908290
• Tax fairness needs to happen including revamping tax code as well as shutting down tax havens -
https://www.slideshare.net/paulyoungcga/taxing-the-top-1-and-wealth-distribution
• Role of government is to set policies that will encourage economic growth. The old statement “You
fix socialism with a good job” - https://www.slideshare.net/paulyoungcga/job-quality-canada-vs-usa
or https://www.slideshare.net/paulyoungcga/gdp-and-economy-canada or
https://www.slideshare.net/paulyoungcga/what-is-going-on-with-canadas-competitiveness

17. ISSUES WITH SOCIALISM
• Productivity
• People are not motivated to succeed in life
• Too much government intervention deters FDI
• Companies will invest where they can get a return on investment
• No emphasis of efficient and effective uses of tax payers dollars
• Value for money
• Government does not operate in a competitive environment