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

1. WHAT IS SOCIALISM
AND WHY DOES IT
FAIL TO ACHIEVE
RESULTS
BY: PAUL YOUNG, CPA, CGA
DATE: JULY 19, 2018

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
• 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. 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 taxpayers dollars
• Value for money
• Government does not operate in a competitive environment