We shouldn’t be selling students some form of private, country-club experience. We should be providing them with as much enrichment and education as possible, because while it is important that college is a sound monetary investment, it is also important, possibly more important, that students get through Canada’s higher education system knowing more about their own strengths and passions. Post-secondary education should not be treated as a good that one purchases. It is in fact, a necessity for individuals as well as the nation as a whole and I definitely don’t think it needs to cost tens of thousands of dollars a year. Having an educated population generally leads to an improved standard of living including lower crime rates, lower poverty rates, a better economy, and much more. This should be the greater incentive in providing a high quality education, not to make profit off of students who are still learning about themselves and the world.
To keep the economy stable and in working order, the government needs money, which they collect from residents, working citizens, and corporations in the form of taxes. They must give a portion of their income to the country which the government then uses towards public services and programs such as healthcare, employment, insurance, and pensions. However, there are countless individuals and businesses across Canada who try to bend the rules and selfishly keep all earnings to themselves. As they evade their taxes at the expense of others, it puts an unfair burden on the rest of the population. This fraudulent scheme constitutes what economists often refer to as the underground economy.
With these people now in the shadow or hidden economy, they’ve not only put themselves at risk but reduced their government’s income and therefore what the government can spend on the public, thus jeopardizing their and their children’s futures.
According to the Canadian Revenue Agency, the underground economy reportedly totalled over $42.4 billion dollars. Statisticians have estimated that the value of these activities would add “between 3 and 20 percent to the value of Canada’s GDP” (Bolotta).
Major sectors involved in the hidden economy include retail, food services, and residential construction and repair.
Those who participate in the hidden economy essentially live their lives on other people’s expenses.
Since these services are being carried on at a more personal level and in a complementary manner, the quality of work is virtually guaranteed. Furthermore, since no written contract is produced and no money actually changes hands, this transaction is not reported when both parties file their tax returns at the end of the year, providing an additional benefit to both parties.
On the other hand, government revenues and consequently, spending programs are negatively affected when individuals do not pay their legal share of taxes. Whether the motive may be to avoid taxes or to ensure a more personal level of service, the result is damaging to the Canadian economy.