Tuesday, May 17, 2011

Tuesday Morning Links

This and that for your Tuesday reading.

- Arash Azizi argues that the NDP's youthful caucus should be seen as a plus in better representing a wider range of voices:
That the New Democratic Party has fought to challenge (the) status quo should come as no surprise. After all, when Tommy Douglas founded its predecessor, the CCF, the political fable of “Mouseland” was his guiding principle. He thought mice should stop electing “a government made up of big, fat cats” and fight for a government of themselves, by themselves, for themselves. His was to be the party of “mice,” the party of the common folk.

The battle Douglas began has just reached a whole new stage. For the first time, the party of common folk has emerged as the official opposition. Why then should it come as a surprise that a large part of its new caucus is comprised not of political players but of youth, students, waitresses and single parents?
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The mainstream media have raised a hue and cry in targeting the humble origins of all these new NDP Members of Parliament. After all the earlier fuss about low voter turnout, especially among youth, pundits now seem unhappy that young people actually have been elected to Parliament.

Our new MPs in Quebec are under attack every day because of their age, their “inexperience” and their humble origins. Often the $157,731 salary of a MP is mentioned in a condescending way as if they were not talking about our elected representatives but some kid who has just hit the jackpot in a casino!

Young New Democrats in Ontario and around the country welcome this new swath of MPs who are much more of an “exact portrait” of us and the working people of this country.

It is our fervent hope that after the hours of bureaucratic “preparation” they are currently undergoing they will not forget the sense of purpose and guiding principles that led them to join the NDP.
- Yes, Greg Weston's story about the Chretien Libs' duplicity on Iraq calls into doubt what had been one of the few examples of his government supposedly paying heed to progressive Canadians. But there's another side of the story that's even more significant in defining where we should go from here:
(A)fter all the fuss, the Americans didn't seem to care whether Canada contributed a lot of military might to the Iraq mission.

A former senior Canadian bureaucrat said: "The Americans knew we were stretched to the limit on the military side, and they really just wanted a political endorsement of their plan to go into Iraq."

Former U.S. ambassador Cellucci concurred: "We were looking for moral support. That's all we were looking for.… We were looking for 'we support the Americans.'"
Which raises an obvious question: after five years where Canada has been an obstacle to action on climate change and a surrogate for Republican Party messaging, would anybody value Canada's moral support on any international issue as much as the Bush administration did back then? (Here's one strong hint.)

- Barrie McKenna tears into the Cons' politically-motivated tax giveaways:
In the case of the Conservatives’ proposed family tax cut, the benefits would flow mainly to wealthier Canadians. A family headed by someone in the top 2011 income bracket ($128,800) would save more than $6,000. Working families in which the top earner makes less than $41,544 wouldn’t get anything. Nor would single people, including divorced parents.

The plan would also tilt the tax system in favour of single-income families, including childless ones, which are typically better off than other Canadians.

The families most in need are headed by single parents with children. But there’s no break coming for them.
- Finally, Richard Wolff points out the necessary alternatives to having an economy based on meeting the every whim of the corporate sector:
there are always two possible responses to any and all threats. One is to cave in, to be intimidated. That has often been the dominant "policy choice" of the US government. That's why so many corporate tax loopholes exist, why the government does so little to limit price increases, why government does not constrain corporate relocation decisions, etc. No surprise there, since corporations have spent lavishly to support the political careers of so many current leaders. They expect those politicians to do what their corporate sponsors want. Just as important, they also expect those politicians to persuade people that its "best for us all" to cave in when corporations threaten us.

What about the other possible response to threats? Government could make a different policy choice, define differently what is "best for us all". In other words, it could persevere in the face of business threats, and to do so, it could counter-threaten the corporations. When major corporations threaten to cut or relocate production abroad in response to changes in their taxes and subsidies, or demands to cut their prices or serious enforcement of environmental protection rules, the US government could promise retaliation. Here's a brief and partial list of how it might do that (with illustrative examples for the energy and pharmaceutical industries):

• Inform such threatening businesses that the US government will shift its purchases to other enterprises.
• Inform them that top officials will tour the US to urge citizens to follow the government's example and shift their purchases as well.
• Inform them that the government will proceed to finance and organise state-operated companies to compete directly with threatening businesses.
• Immediately and strictly enforce all applicable rules governing health and safety conditions for workers, environmental protection laws, equal employment and advancement opportunity, etc.
• Present and promote passage of new laws governing enterprise relocation (giving local, regional and national authorities power of veto over corporate relocation decisions).
• Purchase energy and pharmaceutical outputs in bulk for mass resale to the US public, passing on all the savings from bulk purchases.
• Seize assets of enterprises that seek to evade or frustrate increased taxes or reduced subsidies.
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Of course, a much better basis than threat and counter-threat is available for sharing the costs of government between individuals and businesses.
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Corporations have used repeated threats (to cut or move production) as means to prevent tax increases and to secure tax reductions. Likewise, they have made the same threats to secure desired spending from the federal government (military expenditures, federal road and port building projects, subsidies, financial supports and so on). In effect, corporate boards of directors and major shareholders seek to shift tax burdens onto employees. Their success over the last half-century is clear. Tax receipts of the US government have increasingly come, first, from individual rather than corporate income taxes and, second, from middle and lower individual income groups rather than from the rich.

In worker-directed enterprises, the incentive for such shifts would vanish – because the people who would be paying enterprise taxes are the same people who would be paying individual income taxes. Taxation would finally become genuinely democratic. The people would collectively decide how to distribute taxes on what would genuinely be their own businesses and their own individual incomes.

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