The problem of poverty, and thus the need for food banks can be laid squarely at the feet of Government policies. Globalization, under the banner of Free Trade has caused the flight of good paying jobs to third world nations, leaving Canadians with fewer and fewer good paying jobs. But one policy has made an even greater impact on the Canadian economy and the Canadian peoples’ wallet; that being that before 1974 the Canadian Government financed itself by the Bank of Canada creating money and giving it to the Federal and Provincial Governments. Since 1974 the Government of Canada began borrowing money from private banks, and as everyone knows when you borrow money from banks you must pay the money back with interest. The issuing of interest bearing bonds to insurance companies etc is another source of revenue for our governments.
The terrible truth of letting the banks create all our created money is that when every dollar comes into circulation as a debt, you must then borrow more money merely to service the debt.
It was by a Bank Act that banks obtained the right to create money out of nothing, therefore it if the Government has the right to give banks the right to create money, the Government itself has the right to create money for itself. As said before, this was done by and through the Bank of Canada. The question arises, why would any government borrow money that needs to be repaid, with interest, when it has the right in itself to create money and stay debt free?
If we look at Canada’s debt, from the website Dave Manuel’s Debt Clock we see how much it costs to service Canada’s debt yearly. (From http://www.davemanuel.com/canada-debt-clock.php )
Q. How much does the Canadian government spend each year to service its debt?
A. In 2007-08 (the most recent data that we have access to), the federal government in Canada spent $33.3 billion dollars to service its debt. This was down from the year before due to “lower debt levels and lower financing rates”.
The Canadian government spent 2.2% of the GDP of the nation to service its debt in 2007-08.
The Canadian government spent 13.7% of its budgetary revenues on public debt charges in 2007-08. (end of quote)
If Canadians did not have to fork out $33.3 billions a year, that money would be in the pockets of every Canadian, rich and poor. And if the poor did not benefit directly from reduced income taxes the middle class and upper class would benefit from a greater amount of money-in-wallet and thus with a greater disposable income would have a much greater capacity to give to the poor, via more and better paying jobs, and yes, also to contributions to food banks.
My question to the reader is, what are we doing to get in a government that will give us policies that will not further erode the wealth of the 99%? What are we doing to inform ourselves about our democracy and financial policies that will stop our governing governments from continually creating policies that impact the lives of the 99%? We are the vast majority of voters, why do we keep electing governments that pander to the 1%? You see, ignorance is not bliss, there is a real and terrible cost to ignorance; and we are presently suffering under that cost today.
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