The government of Ontario wants to freeze teachers’ wages for a couple of years (and prohibit them from striking during that time as well – but that’s another story). This is being done, we’re told, as part of an austerity drive in order to reduce the provincial deficit/debt which, we’re told, is nothing short of crushing. The accompanying strike ban is just for kicks, really. Something to do with a couple upcoming by-elections. But that’s another story.
Here’s what I don’t get.
We freeze teachers’ wages, therefore reducing the amount of money the government has to dole out. This reduces costs and reduces our deficit/debt. That’s pretty straight forward.
But by freezing wages doesn’t that flat line or, in real dollars, reduce the amount of taxes being collected by this same government? So while cutting costs, this move also reduces revenue. Surely there must be a study somewhere, with facts and figures that show overall this will ultimately amount in more cash for the government not less because if it’s less, well then, this manoeuvre could be seen as somewhat counter-productive to the claimed goal of reducing our deficit/debt.
Certainly, if we’re frolicking in the murky waters of economic theory, freezing wages will also dampen consumer spending especially in these our tough economic times. Less money in our jeans, as members of the former provincial Tory government would like to say, means less spending and less spending means less tax revenue in government coffers and less money in the coffers makes reducing our deficit/debt that much more difficulty.
Again, Premier McGuinty and his brain trust has factored all this in, obviously, tabulated costs versus spending, money going out and money coming in, and rationally decided that this makes good fiscal sense, yeah? It’s my math that’s bad not theirs, I’m hoping. This will all be short term pain for long term gain. That’s what’s happening here, isn’t it?
And it’s not just some fucking knee-jerk reaction to mollify right leaning voters in a couple ridings in order to, not prop up his government from defeat, but to secure another majority. A politician’s timeline shrunk from building a future for our grandchildren to nothing more than a five week campaign run. For what?
I keep hearing from our elected officials about this time in the future when we have wrestled our deficits and debt to the ground, when governments will spend again, judiciously of course. Where our taxes will remain low and our quality of life high. A time when our wealth/job creators will return to the table and deliver prosperity for all.
This is the theory. All our textbooks say it should work. It’s just that the numbers, the numbers don’t really back any of it up.
— by the numbersly submitted by Cityslikr