We don’t need any more unhappy millionaires

Non-profits and charities filling gaps where public policy and tax systems have failed

I’ve become somewhat obsessed about money and the current status quo. Why do we pay corporate executives and professional athletes hundreds of millions of dollars and child-care workers so little? Why is healthier organic food so much more expensive than heavily processed foods created in a chemistry lab?

I read about the super-rich, how they aren’t paying their fair share of taxes (or any), how their wealth is equal to the economies of small countries, how dark money is wreaking havoc with democratic elections. Chrystia Freeland’s book, “Plutocrats,” was a real eye-opener. I nearly snorted out my tea when I read about the unhappy millionaires — the 0.9 per cent of the top one per cent. They feel deprived, rather than rich, because, “they are trying to play with the high rollers (the billionaires in the top 0.1 per cent of the top one per cent) and there are things they can’t do.”

Although the U.S. is notorious for outrageous compensation for corporate executives, Canada has nothing to brag about. And don’t get me started on the wage gap between men and women.

A Statistics Canada study in March 2019 reported that average earnings between 1983 and 2015 went from $13,400 to $33,800 for the bottom 90 per cent; from $118,100 to $529,600 for the top one per cent; and from $306,700 to more than $2 million for the top 0.1 per cent. The rich got even richer as the poor got poorer.

Somehow, I’m not surprised that the highest percentage of 0.1 per cent earners — both male and female — work in finance, insurance and real estate.

None of this reflects the essential, unpaid work in our homes and communities. The Conference Board of Canada’s 2018 report, “The Value of Volunteering in Canada,” says we’re getting $55.9 billion worth of free labour from two billion volunteer hours. This number increases to $86.6 billion when non-profit activities are included.

I struggle to articulate how wrong it is for so few people to be compensated such ridiculous amounts of money when critical work caring for our planet, our most vulnerable, our elderly, our homeless and differently abled is woefully underfunded, if at all. Every week, my email inbox is filled with requests for money from non-profit organizations. They have to spend an inordinate amount of time fundraising to keep their doors open. Statistics Canada reports that we donated $10.5 billion to charity in 2017.

Charitable foundations set up and funded by the very rich are not the answer. Although they benefit the rich and their pet projects, more pressing community needs go unmet. An analysis of the Gates Foundation in the Lancet observed that by focusing on malaria and HIV/ AIDS, valuable resources and medical personnel were diverted away from more urgent childhood health issues.

It’s obvious that non-profits and charities are filling the gaps where public policy and tax systems have failed. But is this the best we can do? Shouldn’t we fix our broken tax system to pay for the programs we need? Shouldn’t non-profits be focused on advocacy work to improve bad policies — and eventually put themselves out of business?

Until recently, non-profits had restrictions on their political activity. Thankfully, a change in the Income Tax Act now allows unlimited public policy dialogue and development activities. My hope is this leads to a big leap in activity toward a solid, national climate action plan, and for a guaranteed basic income to alleviate poverty and homelessness.

It’s time to rethink the false dichotomy of business versus nonprofit. With an impending climate collapse and the old guard clinging to archaic and harmful beliefs and practices, we need public benefit corporations that require all businesses and organizations to consider environmental and social factors, as well as the financial interests of shareholders.

Our social and environmental systems are broken. Our current economic system is making it impossible to have a livable planet. We are all hurting. A disturbing number of seniors are retiring deeply in debt and students graduate owing tens of thousands of dollars, often with low-paying jobs and unaffordable rent. Too many people live beyond their means and Earth’s finite resources.

Financial literacy is needed to meet these challenges. McGill University’s free online financial literacy course was created to help. But we have to rethink our relationship with money. We really don’t need any more unhappy millionaires.