Tuesday Morning Links

This and that for your Tuesday reading.

- Alex Himelfarb nicely summarizes the price of austerity:

Let me be clear that I share in the broad consensus that we must be fiscally prudent. But let’s pause on what fiscal prudence really means: It means spending wisely, reducing waste, collecting sufficient taxes to pay for the public goods and services we want, and keeping debt coming down, at least during reasonably good times.
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Today’s austerity, however, is not primarily about fiscal prudence. If it were it wouldn’t be proceeding in tandem with large, unaffordable and unnecessary tax cuts for the most affluent among us. These tax cuts make deeper program cuts inevitable.

The persistent emphasis on low taxes and cuts to services and public goods looks more like ideology masquerading as fiscal common sense. In this light, austerity seems rather to be about cutting back the state and rolling out the free market agenda. Less public, more private; less collective, more individual. It is, in other words, the fulfillment of the neoliberal counter-revolution rather than an economic plan for the future.
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I, for one, would propose that inequality, not austerity, be the defining issue for us now. Income inequality is growing fast in Canada and even the traditional deniers are coming on board. The gap is simply too big, the risks too high to ignore. Indeed, extreme inequality will continue to grow in an agenda dominated by austerity and tax cuts, an agenda that reduces our capacity for mutual aid and for collective solutions to our major challenges – our low productivity, climate change and environmental deterioration, and declining political participation.

Of course we ought to be fiscally prudent and that means asking of each cut and each expenditure, including every tax cut: will this help reduce inequality or will it make things worse?

Let’s make inequality in all of its manifestations – child poverty, the reemergence of elderly poverty, the squeeze on working Canadians and students, and the excessive incomes at the top – a national priority.

- Paul Waldie documents the results of the Cons' insistence on demolishing the single-desk Wheat Board with no consideration of the resulting consequences. And predictably, the outcome looks to be plenty of damage and confusion rather than any of the supposed benefits the Cons have been claiming.

- Meanwhile, the Cons are also working on making Canada's food supply less safe. And don't take my word for it: here's what their own spinners said in adding the jobs the Cons are now cutting:

The new investments being announced today will improve the Government's ability to prevent, detect and respond to future foodborne illness outbreaks. Among other improvements, the Government will:
-hire 166 new food safety staff with 70 focusing on ready-to-eat-meat facilities...

So if the hirings were an improvement to the "ability to prevent, detect and respond to future foodborne illness outbreaks", then surely the firings have to be the opposite. Right?

- Frances Woolley posts about the effect of moral hazards in allocating health care resources. But while the principle is worth discussing, I have to seriously question how much of a problem is demonstrated when the sole example of actual gratuitous consumption of health care comes from Homer Simpson.

- Finally, Linda McQuaig criticizes the Cons' preference for foreign capital over Canadian workers:

Ironically, the Harper government has complained forcefully about “foreign” interference from outside environmentalists protesting a proposed pipeline across the Rockies. But when it comes to foreign companies stripping Canadian workers of half their wages and then moving operations out of the country, the government hasn’t a negative word to say.

Harper is of course staunchly pro-capitalist, and has aggressively lowered corporate tax rates, while refusing to link lower taxes to investment or job creation.

But his anti-union stance, evident in disputes at Air Canada and the post office last summer, has been particularly provocative. He seems determined to turn Canada into an anti-union paradise — prompting the Ontario Federation of Labour to call for a mass rally at the Caterpillar plant in London this Saturday.

As the PM gears up for his coming battle against federal public sector unions, he will no doubt draw inspiration from Mitt Romney’s stirring words: “I like to be able to fire people who provide services.”