President Donald Trump ran on improving standards of living in the U.S., but one of his first acts in office included slashing programs that provide financial relief to millions of low-income and working-class Americans as he doled out massive tax cuts for the rich.
History in Canada shows that right-wing governments also cut social programs and implement tax cuts that benefit the wealthy. For example, the Harper government’s income tax cut changes increased after-tax income only for the top 20 per cent of families. At the same time, the poverty rate rose, particularly among the elderly.
Regardless of this track record, right-wing governments continue to rally support in the democratic system for policies that hurt working-class and low-income people. With the rise of the far-right, progressives need to lean into the foundational values of democracy and its potential to serve the needs of all people, however difficult this fight will be.
The growing gap between the rich and the rest of us is destabilizing modern constitutional democracies. Research shows that feelings of alienation develop when people do not see themselves getting ahead or being able to afford what they need. Without substantial government responses to economic threats, voters see the political system as inadequate and vote for change or disengage. Income inequality, created by capitalism’s incessant drive for the accumulation of profit, is eroding democracy.
Democracy is also shaped by corporate influence. The wealthy donate to candidates that support their policies and pay for expensive political fundraising dinners. They bankroll corporate lobbying and fund third-party entities during elections. They also support corporate-funded, right-wing think tanks pushing the interests of the wealthy. It is a vicious cycle.
Corporate interests pushed for free trade, government buy-in to globalization and neoliberal policies that removed trade barriers and good manufacturing jobs from Canada. Trade deals like NAFTA and CUSMA were written to help corporations, not the working people who produce the products.
As globalization shipped good working-class jobs away, poverty increased. The working class can’t get ahead: real median wages have barely increased since the seventies.
Fast-forward to the pandemic. During COVID-19 economic shutdowns, corporate-controlled social media fuelled misinformation. The far-right in North American capitalized on the massive jump in the cost of living that began in 2021, blaming Democrats and Liberals for high rates of inflation which were, ironically, driven by corporate greed and profits.
But don’t the people have the power in modern democracies?
Modern constitutional democracies were founded on democratic values of liberty, equality, and solidarity. Over time, these values have been eroded to mainly focus on liberty and individualist freedom.
Democracy also includes freedom from poverty, true equality, and solidarity amongst all people. These values have been distorted by politicians who are motivated to serve the needs of corporations. H.P.P. Lötter, professor emeritus of the University of Johannesburg, wrote in 2008 that the existence and degree of poverty in modern democracies can be justified by various ideologies—which are perversions and distortions of reality—to suit the interests of a specific group while masquerading as universal norms to benefit everyone.
Trump won again in 2024 based on promises to improve the economic circumstances of everyday Americans at a time of high inflation, rising mortgage prices, rents and groceries. In Canada, the federal Conservative party gained support by critiquing the Liberal government’s response to the affordability crisis and their carbon tax.
The federal government responded with affordability measures that were too little, too late. The federal GST cut from mid-December to mid-February, for example, saved the average family a modest $100, approximately. If the federal government had instead targeted this benefit, it could have cut child poverty in half, according to research by CCPA Senior Economist David Macdonald.
In Manitoba, Premier Wab Kinew’s main affordability measure was to eliminate the gas tax, intended as a “holiday” to last for six months but extended twice to a full year. Those who cannot afford to own a car did not benefit. Those with bigger vehicles, using more gasoline, benefitted. The cut cost the Manitoba government $340 million in revenu— money needed to improve the abysmal patchwork of public transportation across the province and reduce greenhouse gas emissions, or for income transfers to low-income families and people on social assistance.
Boutique, untargeted policies to address the affordability crisis are failing to provide help to those who need it most. Political researchers from the left and centrist parties have concluded that fighting poverty does not motivate voters, so they attempt to draw voters to the polls by focusing on “the stressed middle class.” As a result, centre and left affordability policies and income transfers become diluted to the point where they do not solve the problem they are meant to address, risking a loss of credibility.
It is possible to reduce poverty and income inequality
It must be acknowledged, however, that the federal government did make strides in helping low- and moderate-income people. Recent progress due to the Liberal-NDP Supply and Confidence Agreement resulted in new income transfers. While far from perfect, these are notable: Old Age Security (OAS) payments increased by 10 per cent for those 75 and older, the Canada Worker Benefit was expanded, $10-a-day child care was introduced, with subsidies for low-income families, and the Canadian Dental Program was introduced.
These efforts show that we can make gains for low- and moderate-income people. Living in a democracy can have a positive impact on poverty by providing a mechanism to address it.
The Nobel prize-winning Economist Amartya Sen explains that in countries with multi-party democratic systems and accountability mechanisms, there has never been a famine. Famines take place in countries with dictatorships—North Korea and Ethiopia, for example. Democracy is a protective factor.
With the rise of far-right governments that threaten to circumvent democratic values and norms, civil society must demand that all the values of our democracy be upheld—most importantly, freedom from poverty, achieving true equality, and acting in solidarity.
Civil society—people actively participating in democracy—must challenge the notion of freedom to accumulate profit without restriction. We must continue to educate people about the value of wealth and income redistribution to meet the basic human rights of the vulnerable, to support social mobility of the working and middle class, and to provide quality public services.
Civil society organizations, like the CCPA, promote community engagement in government policies and push for transformative change by providing analysis of regressive government policies and the potential of government to advance substantive equality.
In the face of far-right governments, solidarity and allyship amongst social change movements—Indigenous, civil rights, feminist, climate, labour, 2SLGBTQ+ and social justice—are needed in our democracy more than ever. It’s our role to speak truth to power and focus on people’s priorities: the ability to lead a good life and leave the planet for future generations to do the same.
