Wednesday, June 08, 2022

The "R" word

The world is currently going through a surge of inflation - some of it due to the ongoing breakdown in the global supply chain, some of it due to disruptions to oil and food supply due to Russia's invasion of Ukraine, but much of it due to pure corporate profiteering. And in Canada, the leader of the left-wing NDP has suggested a solution: taxing and redistributing those excess profits:

NDP leader Jagmeet Singh says the Liberal government should respond to the rising inflation crisis by taxing excess corporate profits and redistributing the money directly to Canadians, with “ordinary families” receiving as much as $1,000.

At a press conference on Tuesday, Singh said: “We see clearly that corporations are making these massive profits, they’re making record-setting profits, and their record-setting profits are directly contributing to the cost of living going up.”

If companies were just increasing their prices to meet rising costs “then their profits would be similar to previous years. But they’re not,” Singh said.

This seems to be a fair and effective way of ameliorating the problem. So, how about it Labour? Or is "redistribution" a dirty word for you?