Showing posts with label joseph heath. Show all posts
Showing posts with label joseph heath. Show all posts

Saturday, November 12, 2016

New column day

Here, a rare Saturday column on the lessons we should draw from the election of Donald Trump in how we organize and work within our political system.

For further reading (beyond the writing already linked here)...
- Others offering similar thoughts include Murray Dobbin, Rick Salutin, Kai Nagata and Robert Reich.
- Tabatha Southey highlights how racism fed into Trump's win, and argues that we shouldn't minimize its effect simply because of the election's result. Ari Berman comments on the desperately under-reported role of Republican vote suppression in electing Trump. And Gary Younge offers a thorough (and thoroughly disturbing) summary of the forces behind the election results.
- Joseph Heath offers his take on what we can expect from Trump's election - with the strengthening of anti-democratic sentiment around the globe rivaling any of the other types of damage.
- Finally, Paul Waldman describes the blatant con behind Trump's claim to the mantle of populism - and it's taken only days for Trump to make clear that anybody hoping for a break from a culture of insider self-dealing is in for a major disappointment.

Thursday, July 14, 2016

Thursday Morning Links

This and that for your Thursday reading.

- Dani Rodrik comments on the need for a far more clear set of policy prescriptions for left-wing political parties to present as an alternative to laissez-faire corporate domination, while noting there's no lack of source material worth considering:
The good news is that the intellectual vacuum on the left is being filled, and there is no longer any reason to believe in the tyranny of “no alternatives.” Politicians on the left have less and less reason not to draw on “respectable” academic firepower in economics.

Consider just a few examples: Anat Admati and Simon Johnson have advocated radical banking reforms; Thomas Piketty and Tony Atkinson have proposed a rich menu of policies to deal with inequality at the national level; Mariana Mazzucato and Ha-Joon Chang have written insightfully on how to deploy the public sector to foster inclusive innovation; Joseph Stiglitz and José Antonio Ocampo have proposed global reforms; Brad DeLong, Jeffrey Sachs, and Lawrence Summers (the very same!) have argued for long-term public investment in infrastructure and the green economy. There are enough elements here for building a programmatic economic response from the left. 
A crucial difference between the right and the left is that the right thrives on deepening divisions in society – “us” versus “them” – while the left, when successful, overcomes these cleavages through reforms that bridge them. Hence the paradox that earlier waves of reforms from the left – Keynesianism, social democracy, the welfare state – both saved capitalism from itself and effectively rendered themselves superfluous. Absent such a response again, the field will be left wide open for populists and far-right groups, who will lead the world – as they always have – to deeper division and more frequent conflict.
- Meanwhile, Michael West offers offers an inside look at offshoring and other forms of corporate tax avoidance which have been used to keep businesses making a fair contribution to the society which makes their own success possible.

- Matthew Herder, Trudo Lemmens, Joel Lexchin, Barbara Mintzes and Tom Jefferson highlight the gross lack of transparency surrounding prescription drugs in Canada. And Leila Salehi makes the case for a national pharmacare program.

- Joseph Heath points out why it's nonsensical to try to turn the social insurance provided by the Canada Pension Plan into (yet another) individual retirement savings vehicle.

- Aarian Marshall writes that U.S. municipalities are being forced to let infrastructure decay for lack of any source of funding to maintain it. And Roger Harrabin examines how climate change stands to further harm the utilities we rely on.

- Finally, Ashifa Kassam discusses the need for Canada to confront our own racism past and present, rather than making any claim to superiority based on high-profile incidents in the U.S. and elsewhere. And Susana Mas reports that the Libs continue to drag their heels on even the most basic promises to First Nations, including the removal of their longstanding 2% funding cap.

Saturday, March 05, 2016

On gross excesses

It shouldn't be news to anybody interested in climate change (and the Wall government's role in exacerbating it) that Saskatchewan has a shameful track record in polluting our atmosphere. But Joseph Heath summarizes just how embarrassed we should be:
Keep in mind that the general target we want to get to, globally, is around 2 CO2/tonnes per person. This makes “Canada” seem a long way off. But if you look more carefully, some provinces are a lot closer than others. Quebec is at 9.7 (because of hydro power), and even Ontario is at a not-so-bad 12.5 (and that’s before implementing cap-and-trade, just by abolishing coal). The numbers from Alberta and Saskatchewan though are insane — 64 and 68.8 CO2/tonne per person respectively. (It is worth noting that SK is not the worst offender in absolute terms, it just has a low population compared to Alberta.) This is of course tar sands production (and coal dependence). What’s amazing is that this only counts up the emissions associated with producing synthetic crude. To the extent that the oil subsequently leaves those provinces, the contents of what is in the barrels does not count toward the Alberta and SK emissions totals.
And those numbers are particularly worth highlighting in the wake of Brad Wall's attempt to put off any emission reductions or carbon pricing whatsoever.

Of course, it's silly enough to insist that carbon prices be avoided when oil prices are down, given that they'd both plug some of the government's fiscal hole in the short term, and minimize any disruption to consumers compared to adding extra costs when prices are already high.

But when we put the scope of our emission excesses in the context of the emission level our planet can handle, Wall's position is the equivalent of someone who regularly gorges himself on 34 unhealthy meals a day complaining that he has to put off changing his diet in the slightest. And while he may see short-term and political benefits in saying we should keep pigging out rather than even considering how to get healthier, Saskatchewan's voters might want to insist on making at least some change for the better.

Saturday Morning Links

Assorted content for your weekend reading.

- Andrew Jackson discusses how large inheritance and accumulated capital lead to gross economic and social distortions:
Inheritances are quite heavily concentrated among the most affluent families and thus compound income and wealth inequality over time.

Inheritances continue to play a significant role in the accumulation of wealth in the hands of the richest Canadians. Forbes Magazine rankings of billionaires show that the ten richest Canadian families include at least four heads of families whose fortunes were at least partly inherited: those of David Thomson, James and Arthur Irving, and Galen Weston.

Wealth, especially financial wealth, is highly concentrated in Canada and produces a significant source of income and economic well-being for the rich which is not earned in the same sense as income from wages and salaries. At a minimum, inequality of financial wealth greatly reinforces inequality of income.

This is hard to justify on the normative grounds used by liberals to justify economic inequality, namely that individual rewards reflect the productive contributions of individuals. Accordingly, it is not “unfair” to consider taxation of inheritances and large accumulations of wealth.
- Leiliani Farha weighs in on the inescapable connection between inequality and homelessness of all types. And PressProgress highlights Derek Fildebrandt's attempt to minimize discussion of any social issues whatsoever.

- Marc Lee offers his take on what happened at the first ministers' meeting on climate change in Vancouver, while John Paul Tasker reports that the federal Libs' plan on making sure carbon pricing is in place regardless of any provincial obstruction. And Joseph Heath explains why Brad Wall's position to the contrary can only be explained by fealty to corporate backers over sound governance:
(W)e all know that the current price of carbon – zero – is too low. You don’t have to know how high it should be to know that $0 is not the correct price. (Actually, in practice it’s less that zero, because of the various ways in which fossil fuel production is subsidized.) So in order to get a properly structured market, and to eliminate the unfair competitive advantage that hydrocarbons enjoy over other energy sources in the current market, one needs to put a price on carbon. What will be the effects of raising the price? Who knows? The beauty of the market is that we don’t have to know. What we do know is that raising the price will improve the allocation of resources and increase welfare.
...
Wall’s support of the “free market” is not the sort of ideological conviction that arises from a sober assessment of the virtues of private enterprise, but more like a set of ideas picked up on the golf course, from hobnobbing with CEOs. It is essentially class politics, not responsible governance.
- Meanwhile, Eric Holthaus points out that at least on a temporary basis, we've already reached the two-degree threshold seen as the point of no return for climate change.

- Finally, CUPW makes the case for postal banking as both an important social service and a source of public revenue.

Tuesday, October 06, 2015

Tuesday Morning Links

This and that for your Tuesday reading.

- Hadrian Mertins-Kirkwood highlights how the Trans-Pacific Partnership will do little but strengthen the hand of the corporate sector against citizens. Duncan Cameron notes that even in the face of a full-court press for ever more stringent corporate controls, there's plenty of well-justified skepticism about the TPP. And Olivia Chow compiles both plenty more concerns with the TPP, and the evidence that the Cons' obsession with trade agreements is doing nothing to help Canada economically.

- Upstream calls for Canadians to vote for a healthier society in the upcoming federal election. And Kimberly Noble points out how poverty and deprivation affect children's development - resulting in worse results for everybody. 

- Catherine Latimer discusses the prison crisis created by the Cons' combination of dumb-on-crime policies and lack of investment to deal with the increased demands on the correctional system.

- The CCPA provides a much-needed overview of the Harper Cons' disastrous record over their past two terms in power.

- Which means it's no surprise that the Cons are left with little but fearmongering to try to cling to power as pointed out by Heather Libby. But Sandy Garossino writes that Harper and company are putting women at risk with their choice of targets for xenophobia and exclusion. And Joseph Heath rightly argues that the Cons have gone far beyond the realm of defensible policy to the point where there's no innocent or reasonable explanation for their choices:
I usually lean towards the more charitable interpretation of people’s motives. And I try very hard to be charitable with conservatives, in part because I disagree with them on so many points, and so am likely to be biased in the direction of being uncharitable. Thus I have really been working hard to resist the tendency – which many of my colleagues have – of writing off the Conservative Party entirely, as being outside the scope of “reasonable” political conviction. I’ve also been doing what I can to encourage centre-right conservatives to be more assertive in controlling the drift into extreme ideological positions that one can see in the right wing in Canada. At this point, however, I’m starting to have trouble. My most charitable reading of the current situation is that it can be blamed on this Australian strategist they brought in, who’s basically been telling them to play the anti-Islam card, because hey, what does he care what happens to the country – he doesn’t have to live here (never thought I would find myself missing Jenni Byrne!). But even then, I’m having doubts.

Psychologically, I’m starting to feel that I should put the Conservative Party of Canada into the same mental category that most people put the National Front in France – not as a representative of a reasonable political position, but as more of a cancer on the body politic. For the moment I’m still resisting that – holding out some faith in the decency of Canadians – but the way things are going I may need to reconsider.

The one thing I can say, however, is that after Friday’s press conference, I can no longer regard it as morally acceptable for anyone to vote for the Conservative Party of Canada. A week ago, I could still persuade myself that reasonable people could disagree over how to vote in this election, but no longer.

Monday, October 05, 2015

Monday Morning Links

Miscellaneous material to start your week.

- Joseph Heath discusses how the Volkswagen emission cheating scandal fits into a particular type of corporate culture:
(W)hen the Deepwater Horizon tragedy occurred, or now the VW scandal, it was hardly surprising to people who follow these things. Certain industries essentially harbour and reproducing deviant subcultures. This is one of the reasons that much of the best work on white collar crime has been inspired by, and draws upon, work in juvenile delinquency. Whereas delinquents tend to exist in subcultures that reproduce deviant attitudes toward authority, many corporations reproduce subcultures that promote organized resistance to regulation.

This is a well-known feature of the automobile industry, and apparently this is what was happening at VW as well. One executive, speaking anonymously, blamed “the company’s isolation, its clannish board and a deep-rooted hostility to environmental regulations among its engineers. “
...
What can be said about this? Perhaps a few lessons: First, it serves as a helpful reminder that white collar crime remains a very serious social problem, one that attracts far too little public concern. This is partly because of an almost entirely supine business press – it remains that case that while the “news” section of newspapers focuses very heavily on criticizing the government, the “business” section almost never criticizes business, and does almost no investigative reporting or muckracking. (Notice that while political scandals are almost always uncovered by political reporters, the VW story was not broken by an “automotive” reporter.) Second, it is important to be aware that these criminogenic business subcultures, once developed, can be extremely difficult to eliminate. Thus it is a very important responsibility of management to set the right tone, to keep a careful eye on the corporate culture, and to take hard line when things start to get out of hand. Finally, there are many people who, for reasons of political ideology, are strongly critical of environmental law, health and safety regulation, financial regulation, the FDA, etc. These political ideologies are often appealed to by corporate criminals, as a way of legitimating their law-breaking activities. It seems to me, therefore, that those who express an ideological hostility to regulation bear a special responsibility for ensuring that their views are not misused in this way. This can be achieved, in part, by emphasizing the very significant difference between claiming that a law should be repealed and claiming that a law need not be obeyed.
- And on the subject of cultures where lawbreaking is seen as normal if not outright desirable, Andrew Nikiforuk reminds us of the multiple scandals surrounding Bruce Carson - involving both illegal lobbying and publicly-funded shilling for the oil industry.

- Meanwhile, Joseph Stiglitz sees the Trans-Pacific Partnership as nothing more than a means of entrenching corporate abuses into law around the globe. But Michael Harris notes that plenty of voters and activist groups will be fighting that choice in Canada. 

- Edward Keenan makes clear that the Cons' campaign of discrimination is intended to foment hatred against Muslims in general, while Sean Fine reports that the Cons' target voters are taking up the invitation to do violence against fellow Canadians. And Paula Simons highlights the arrogance involved in claiming to tell women what they may and may not wear.

- Finally, Haroon Siddiqui discusses the domestic damage being done by the Cons' politically-obsessed foreign policy.

Saturday, August 08, 2015

Saturday Morning Links

Assorted content for your weekend reading.

- Robin Sears discusses the hubris behind the Cons' early election call, while Tim Naumetz notes that the extended campaign is just one more issue where the Cons are offside of the vast majority of the public. And the Guardian comments on the reasons for optimism that we're nearing the end of Stephen Harper's stay in power.

- The Ottawa Citizen makes the case for better economic management than we've been able to expect from the Harper Cons. And Alan Freeman weighs in on the costly frivolity of the Cons' latest tax credit scheme.

- And for commentary on this week's debate which goes beyond surface impressions, the Guardian analyzed the debate as it happened. The CCPA offered up some issues which deserved discussion, while Vice followed up on a number of the issues raised in the debate itself. And Ian MacLeod debunked Stephen Harper's preposterous claims about C-51.

- Althia Raj points out there was relatively little talk of a coalition or other forms of inter-party cooperation. But it's worth pointing out that it was the Cons who assumed it was a winning issue in the past - signalling that their lack of interest in mentioning it signals that they no longer see it as a winning issue. 

- Jane Hilderman discusses the connection between a health democracy and a healthy society:
(T)he imbalance between those who contribute to our democracy and those who the report finds are "checking out" is a stark one — in the 2011 federal election there was a 36% gap between the cohort with the highest turnout (ages 65-74) and that with the lowest (ages 18-24). Meanwhile the political process now repels more citizens than it attracts, particularly young Canadians. As a consequence our political system is becoming less representative, leading to inequalities between Canadians who participate and those who do not. The failure of many Canadians to contribute to our political life — or to see it as a way to make meaningful change — should serve as a warning sign to anyone interested in our society's well-being.

The challenge is that a majority of Canadians no longer feel politics is serving them. If a majority of Canadians no longer felt the healthcare system had their best interests in mind, its legitimacy would begin to crumble. The same goes for our politics. If the majority of Canadians are withdrawing from the political process, the health of our democracy is in peril.
- Meanwhile, Ralph Surette is right to highlight the Cons' contempt for Canada's democratic institutions. But I will note that it makes sense for the opposition parties to focus on the problems which voters experience directly to make clear that those abuses have wider implications.

- Finally, Joseph Heath comments that our political system has seen its priorities almost entirely reversed, with the substantive decisions of legislators and political parties now seen almost solely as a means to the end of electoral outcomes rather than the other way around.

Saturday, June 06, 2015

Saturday Morning Links

Assorted content for your Saturday reading.

- Joseph Heath looks at the spread of the McMansion as an ugly example of competitive consumption which benefits nobody. And Victoria Bateman discusses the need to question the assumptions underlying laissez-faire policymaking:
Science and technology are central to rising prosperity, but, as cases such as the internet and GPS technology demonstrate, progress is just as much a result of state funding and risk taking as it is of private sector endeavour. Since the Enlightenment, innovation has been a collective endeavour – and long may it continue. However, this comes with two warnings. Firstly, and as Mariana Mazzucato argues in The Entrepreneurial State, whilst the state has historically provided funds, it has received very little direct reward. The result has not only been unfair to the tax-payer, but has also meant too few resources to help fund the next series of scientific advances. Secondly, the state needs to be careful not to limit the freedom of scientists. Since the Enlightenment, much has been achieved by letting scientists explore avenues which would not have looked profitable in advance. Here, the current system of state funding leaves much to be desired.

In explaining prosperity, not only do economists all too often marginalise the contribution of the state, they also neglect society. As I have argued elsewhere, the rise of the West followed in the footsteps of tremendous changes in society, including in the position of women. Society can, it seems, have a significant effect on economic growth. In turn, economic growth can affect society. If the growing pains that come with rising prosperity are left to fester, permanent damage can be done. We need to work hard to make sure that those that receive the highest rewards from economic growth are not able to lock-out others. Whether it is the super-rich that are able to pass on advantages to their children, reducing downward-mobility, or the areas that lose out from structural change (such as industrial communities in the 1980s), economic growth can put in place vicious circles that lead to a broken society and a waste of talent. We always need to work hard to repair the damage done if we want to sustain progress.
- Joanna Roberts interviews Johan Swinnen about food and nutrition insecurity, with particular emphasis on the reality that the problem is one of unequal distribution rather than a lack of food being produced. And Andrew MacLeod notes that if we want to recognize food and other essentials of life as rights, then we need to recognize a concurrent responsibility on government to ensure that it's available.

- Meanwhile, Madeline Ostrander highlights new research showing how childhood poverty affects an individual's brain development for life. Which thoroughly refutes the argument that it's possible to provide a fair opportunity to any individual without eliminating poverty and reining in inequality - and offers reason for our governments to make a priority of providing the essentials of life from day one.

- But instead, the Cons' response to refuse to use even money they've actually budgeted - and indeed go out of their way to dodge any responsibility for child welfare - for the First Nations people who fall under their jurisdiction.

- Finally, Amartya Sen discusses the dire economic consequences of austerity. And Susan Campbell observes that the U.S. offers an important cautionary tale on that front, while Robert Reich points out that the U.S. wasn't intended to develop into the aristocracy it's since become.

Tuesday, March 24, 2015

Tuesday Morning Links

This and that for your Tuesday reading.

- Ryan Meili reminds us of the harmful health impacts of inequality. And Susan Perry discusses the effect of inequality on health in the workplace in particular:
The rise in income inequality over the past three decades or so is taking a major toll on the general health of American workers — and not just because stagnant or falling wages have made it increasingly difficult for many workers to afford high-quality health care.

For, as a commentary published recently in the American Journal of Public Health points out, income inequality has also been accompanied by changes in the workplace that increase workers’ stress in ways that negatively affect their health.

Those changes include a less stable job market, work weeks that repeatedly exceed 40 hours (for individuals working full time as well as for those working two or more part-time jobs), work schedules with unpredictable or irregular hours, greater “job intensification” (employers requiring workers to take on more tasks and responsibilities with less pay), lack of paid sick leave and higher out-of-pocket health costs (which erode discretionary income).
- Meanwhile, Andrew Dobson and Rupert Read write that it's time to stop pretending that growth for its own sake in a developed economy serves any useful purpose - especially when a top-heavy approach exacerbates inequality. But then, Chuk Plante points out that inequality acts as a barrier to development in any event. And Naomi Klein reviews Steve Fraser's The Age of Acquiescence as nicely describing the need for concerted public action to overcome the concentration of wealth and power.

- Matthew Ingram rightly argues that we shouldn't be willing to accept unfettered Internet surveillance as the new normal, while Christopher Parsons reminds us that we're already subject to monitoring and disruption without a law authorizing anything of the sort.

- Haroon Siddiqui makes the case that we should be far more scared of the Cons than of the phantoms they're trying to invent for political purpose. And Joseph Heath discusses Stephen Harper's warmongering under circumstances where it makes no sense at all to obsess over military buildup:
Canada does not need a fighting military. Americans often accuse other Western nations, particularly some European states, of free-riding on U.S. military power. And while this may not be true of some nations, it is certainly true of Canada. Part of what’s nice about having the world’s largest undefended border with the U.S. is that they would never tolerate the invasion of Canada by a hostile power. As a result, we have to be prepared for minor border skirmishes, but we don’t really need to have a full-scale military, sufficient to defend the country from attack.

The fact that the Canadian military is essentially otiose provides one way of understanding our past enthusiasm for peacekeeping – at least it provided some rationale for maintaining something like an able fighting force. Take away the peacekeeping, and what becomes the new raison d’être for the Canadian military? The Conservative government has yet to provide one — indeed, it seems not to be even aware of the need to. The boyish enthusiasm for the military that you find in the current government is essentially a matter of personal temperament and political ideology, but it lacks any underlying national or geopolitical rationale.
- Finally, Michael Harris weighs in on the reemergence of Reform's most irresponsible elements. Susan Delacourt wonders whether early-career Stephen Harper would recognize what he's since become. And Jeremy Nuttall reports on Harry Smith's work to ensure that the Harper Cons don't stay in power any longer than we can avoid.

Monday, January 26, 2015

Monday Morning Links

Miscellaneous material to start your week.

- Larry Elliott writes that at least some business leaders are paying lip service to the idea that inequality needs to be reined in. But Alec Hogg points out that at least some of the privileged few are using their obscene wealth to remove themselves from the rest of humanity, rather than lifting a finger to help anybody else.

- Meanwhile, Joseph Stiglitz observes that sheer stubborn stupidity on the part of austerians is doing untold damage to the global economy. But Jon Henley notes that in advance of Syriza's election victory, a new social movement in Greece had already been showing how much good collective action can do - suggesting that citizens are rightly resisting the claim that there's nothing to be done to improve their plight.

- Scott Gilmore reminds us of Canada's shameful history of mistreating First Nations.

- Mitchell Anderson comments that contrary to its oft-repeated promise, Alberta has indeed blown another oil boom.

- Finally, Andrew Coyne laments the Libs' choice to join the Cons in refusing to do anything about climate change. And Joseph Heath points out that the environmental damage we're leaving for future generations to address far outweighs the financial deficits which are so often used as an excuse for inaction:
Oliver knows that deficits are neither here nor there from the standpoint of intergenerational equity. What he actually has is a standing preference for smaller government. So when government revenue falls, this gives him an opportunity to reduce the size of government, by cutting expenditures. The idea that “deficits are immoral” is just a convenient way of selling the public on this reduction in the size of government, without having to make the case for smaller government (which is a tough sell).

This is all pretty standard. I guess what makes it extra-cynical is that we are, as a matter of fact, confronting a serious problem of intergenerational justice right now, in the form of climate change. And not only are we failing to do what’s right for our children on this file, we are doing the exact opposite of what’s right. So it is obvious that a moral concern about the welfare of future generations carries absolutely no weight with the Harper government. If it did, we would be debating what to do with all the revenue being generated by new federal carbon taxes. This is what takes Oliver’s remark out of the realm of run-of-the-mill-cynical and into the realm of deeply-cynical.

Finally, just an exercise for fun. There are lots of arguments out there, suggesting that we should not be particularly worried about climate change — that things will somehow take care of themselves. Try to find one single argument for inaction on climate change that is not also an argument for ignoring government deficits.

Friday, December 05, 2014

Friday Morning Links

Assorted content to end your week.

- Manuel Perez-Rocha writes about the corrosive effect of allowing businesses to dictate public policy through trade agreements:
(C)orporations are increasingly using investment and trade agreements — specifically, the investor-state dispute settlement provisions in them — to bring opportunistic cases in arbitral courts, circumventing decisions states deem in their best interest. And now investor-state dispute settlement provisions may be enshrined in two new treaties: the Transatlantic Trade and Investment Partnership and Trans-Pacific Partnership, currently under negotiation between, respectively, the United States and the European Union, and the United States and 11 Asia-Pacific nations. If the final agreements contain these mechanisms, we can expect a flood of cases like Pacific Rim v. El Salvador.

Investor-state dispute settlement provisions feature in many significant pacts, including the North American Free Trade Agreement, and nine U.S.-E.U. bilateral investment treaties. Foreign investors can sue over alleged violations of myriad “investor protections,” including public-interest regulations that would reduce their profits. But it doesn’t cut both ways: Governments or communities affected by foreign investors cannot bring claims. Equally troublesome, tribunal operations are often opaque.
...
The investor-state dispute settlement mechanism is like playing soccer on half the field. Corporations are free to sue, and nations must defend themselves at enormous cost — and the best a government can hope for is a scoreless game. As the T.T.I.P. and T.P.P. negotiations continue, Pacific Rim vs. El Salvador should remind us not to privilege foreign investors to the detriment of the national — or global — good.
- And that corporate privilege stands in particularly stark contrast to the limited rights of citizens - as evidenced by the Ontario Court of Appeal's recent decision that individuals can't even make out an arguable case for a Charter right to housing.

- Joseph Heath examines the reality that dirty and hard-to-extract oil reserves should be seen as stranded assets for the sake of our planet, rather than relied on as a source of future wealth.

- Keith Neuman and Ian Bruce comment on the growing consensus that we need to take strong action to fight climate change. Martin Lukacs suggests that public ownership within the energy industry would go a long way toward getting greenhouse gas emissions in check. And the Fraser Institute helpfully points out that the alternative to mitigating climate change is to abandon cities built in locations which will suffer its most extreme effects.

- Finally, Thomas Walkom discusses the Cons' habit of cultivating foreign enemies in order to paper over their lack of interest in governing in the interest of Canadians.

Monday, September 22, 2014

Monday Morning Links

Miscellaneous material to start your week.

- Linda Tirado writes about life in poverty - and the real prospect that anybody short of the extremely wealthy can wind up there:
I haven’t had it worse than anyone else, and actually, that’s kind of the point. This is just what life is for roughly one-third of Americans and one in five people in Great Britain. We all handle it in our own ways, but we all work in the same jobs, live in the same places, feel the same sense of never quite catching up. We’re not any happier about exploding welfare costs than anyone else is, believe me. It’s not like everyone grows up and dreams of working two essentially meaningless part-time jobs while collecting food stamps.

It’s just that there aren’t many other options for a lot of people. In fact, the Urban Institute found that half of Americans will experience poverty at some point before they’re 65. Most will come out of it after a relatively short time, 75% in four years. But that still leaves 25% who don’t get out quickly, and the study also found that the longer you stay in poverty, the less likely it becomes that you will ever get out. Most people who live near the bottom go through cycles of being in poverty and just above it – sometimes they’re just OK and sometimes they’re underwater. It depends on the year, the job, how healthy you are. What I can say for sure is that downward mobility is like quicksand. Once it grabs you, it keeps constraining your options until it’s got you completely. I slid to the bottom through a mix of my own decisions and some seriously bad luck. I think that’s true of most people.

While it can seem like upward mobility is blocked by a lead ceiling, the layer between lower-middle class and poor is horrifyingly porous from above. A lot of us live in that spongy divide.
- Meanwhile, Rebecca Vallas and Melissa Boteach offer ten suggestions to improve the plight of workers across the income spectrum. And oddly enough, neither state-imposed indentured servitude nor a world-lagging set of policies on temporary employment makes the list.

- Ashley Renders points out that in planning to reduce our reliance on dirty energy, it's essential to have cleaner alternatives available. But Vivek Radhwa writes that we're not far off with the renewable energy sources we've already developed.

- Joseph Heath observes that hard power is of extremely limited effectiveness in dealing with both armies around the world and crime at home.

- Finally, Aaron Wherry discusses the price of democratic accountability. And Glen McGregor reminds us that the Cons will tolerate nothing of the sort - as most recently evidence by their systematic disposal of any comment critical of the FIPA.

Monday, August 18, 2014

Monday Morning Links

Miscellaneous material to start your week.

- Rebecca Vallas, Melissa Boteach and Shawn Fremstad write about the need for a new social contract. And Drew Nelles takes a look at the role of a guaranteed basic income in ensuring a fair standard of living for everybody:
Although implementing basic income would undoubtedly require a reorganization of social assistance provision, with some programs being eliminated or absorbed, it cannot be used as an excuse to dismantle what’s left of the welfare state. Instead, it’s a hopeful idea because it could act as just the opposite: the beginning of a turn away from the anti-tax, anti-social-spending policymaking that has dominated the West since the 1980s.

Indeed, I suspect that the idea of basic income has caught on for the same reason that Thomas Piketty’s Capital in the Twenty-First Century became a bestseller earlier this year. It neatly distills the era we live in: it reflects our burgeoning concern about class disparity, and it represents a symbolic reversal of the ideology that got us here. The post-recession, post-Occupy age has seen people—if not politicians—begin to reckon seriously with the threats of income inequality and wealth concentration. Basic income is an appealing solution in its simplicity and elegance: why not just give people money? Even if it remains, for now, more of a thought experiment than a concrete policy proposal, basic income is valuable for that reason. It forces us to ask what we owe each other.
- Meanwhile, Natasha Singer discusses how the "sharing economy" is serving as the latest cover for increasingly precarious work:
Technology has made online marketplaces possible, creating new opportunities to monetize labor and goods. But some economists say the short-term gig services may erode work compensation in the long term. Mr. Baker, of the Center for Economic and Policy Research, argues that online labor marketplaces are able to drive down costs for consumers by having it both ways: behaving as de facto employers without shouldering the actual cost burdens or liabilities of employing workers.

“In a weak labor market, there’s not much of a floor on what employers, or quasi employers, can get away with,” Mr. Baker contends. “It could be a big downward pressure on wages. It’s a bad story.”

Labor activists say gig enterprises may also end up disempowering workers, degrading their access to fair employment conditions.

“These are not jobs, jobs that have any future, jobs that have the possibility of upgrading; this is contingent, arbitrary work,” says Stanley Aronowitz, director of the Center for the Study of Culture, Technology and Work at the Graduate Center of the City University of New York. “It might as well be called wage slavery in which all the cards are held, mediated by technology, by the employer, whether it is the intermediary company or the customer.”
- On the other end of the spectrum, Joseph Heath notes that some within the 1% are now stashing their children as well as their tax-sheltered money in the Cayman Islands to avoid the mere general public. And Darwin offers yet another thorough debunking of the Fraser Institute's spin on taxes.

- Alison examines Canada's international arms sales, including weapons exports to both sides of conflicts in the Middle East. 

- Finally, Robyn Benson previews this weekend's People' Social Forum. And for those who haven't yet seen Canadians for an Inclusive Canada - a group which is seeking to coordinate action against the Cons' anti-family immigration policy - it's well worth a look (and a signature).

Sunday, August 10, 2014

Sunday Morning Links

This and that for your Sunday reading.

- Robert Green looks at Quebec as a prime example of selective austerity - with tax cuts and other goodies for the wealthy considered sacrosanct, and well-connected insiders being paid substantial sums of public money to tell citizens they'll have to make do with less:
In a move that seems perfectly symbolic of the sort of politics his government represents, Quebec Premier Philippe Couillard announced this week that the five members of the government commission charged with reviewing government programs and recommending where to make cuts will be paid the tidy sum of $1.03 million for about eight months of work. Commission President and ex-Liberal cabinet minister Lucienne Robillard will take home $265,000 for explaining to average Quebecers where they must make sacrifices.

The message being sent here is unmistakable: Tough choices, sacrifice and austerity are for the common people, not Quebec's elites.
...
With the exception of a spike in stimulus spending following the 2008 economic downturn, Quebec's expenditures as a percentage of GDP have been trending downward since the early nineties. Even at the height of stimulus spending in 2009-2010 Quebec was spending significantly less as a percentage of GDP than it was in the early nineties. This is hardly a picture of out-of-control spending.

So if spending is not the cause of our current economic predicament, what is? The answer lies on the other side of the balance sheet, in revenues rather than expenditures.
...
(B)etween 2000 and 2008 PQ and Liberal governments combined to deny Quebec $9.8 billion in revenues through a series of tax measures (both tax cuts and deductions) that disproportionately favour the wealthy. For example, the deep PQ tax cuts of 2002 provided the wealthiest Quebecers (those earning $75,000+) an additional $1,709, over six times the amount gained by the neediest (those earning less than $25,000). The Liberal tax cuts of 2007-2008 were even worse, providing absolutely nothing to households with $25,000 in income, $110 to households with $50,000 in income and a whopping $1859 to households with $150,000 in income.

Add to this $9.8 billion a cut to the tax on the capital of corporations (a move that provided little to small business but was a boon for large corporations and particularly banks), which cost government $1.9 billion, and we're talking about a hole in Quebec's public finances of nearly $12 billion annually.

To put this in perspective, consider that Quebec is currently planning $3.9 billion in spending cuts in order to arrive at a projected deficit of $1.75 billion. Had the government of Quebec not deliberately created a $12-billion hole in its revenues, or even limited itself to a $6-billion hole, we would not be talking about where to make cuts right now; we would be talking about where to reinvest our large surplus.
...
(T)he first step towards reversing Quebec's great neoliberal heist is informing ourselves and others about the true source of our collective problems. Problems that have nothing to do with out-of-control spending and everything to do with a series of irresponsible tax cuts directed at those who needed them least.
- Meanwhile, Andrew Nikiforuk writes that oil money has gone a long way toward funding the disconnect between the Alberta PC dynasty and the general public, while Mike Moffatt discusses Philip Cross' wishcasting as an example of how to get ahead in a right-wing propaganda tank. And James Baxter discusses the Cons' concerted refusal to listen to the values and policy preferences of Canadians:
While Canadians have been polled and focused-grouped ad nauseum on their policy priorities — which, consistently, are health care, education, the environment, pensions and veterans — they’ve instead been fed a steady diet of made-in-Alberta priorities: skills development, Employment Insurance reform, temporary foreign workers and plenty of pipelines.
...
(F)or citizens to consent to be governed, there needs to be a sense that government understands their priorities and will focus on them.

What galls is the fact that Finance Canada has spent tens of thousands of dollars in public money (and likely much more) polling and studying the priorities of Canadians in every province — only to completely ignore the results. It’s either that, or Finance was simply overruled by Prime Minister Stephen Harper himself.
- Paul Krugman writes that inequality is an impediment to growth in and of itself. And Paul Buchheit offers a few inconvenient truths for poverty deniers.

- Alex Hanson exposes the cozy relationship between B.C.'s Lib government which has trashed environmental enforcement, and the corporation responsible for the Mount Polley chemical spill. But lest there be any doubt, British Columbia is far from the only place where businesses which are actively destroying the environment are being rewarded for their efforts.

- Finally, Joseph Heath is duly appalled at John Snobelin's message that people should "embrace big risks" with no regard for the downside of following that strategy.

Thursday, July 10, 2014

Thursday Morning Links

This and that for your Thursday reading.

 - Joseph Heath responds to Andrew Coyne in noting that an while there's plenty of room (and need) to better tax high personal incomes, there's also a need to complement that with meaningful corporate taxes:
(A) crucial part of the Boadway and Tremblay proposal is to increase the personal income tax rate on dividends and capital gains. That’s where the “soak the rich” part comes in. The argument — and it is an interesting argument — is that dividends are currently taxed at a lower rate in the hands of individuals, in order to avoid “double taxation,” once in the hands of the firm, again in the hands of the beneficiary. However, if the corporation is able to shift the tax on profits to other constituencies, then the tax paid by corporations isn’t really being paid by shareholders. So by taxing corporations less, and taxing individual investment income more, the Boadway/Tremblay policy makes it more difficult for the rich to shift their tax liabilities onto others.

I can see the argument for this. However, there always the danger of equivocation when talking about “the rich” or “inequality.” There is broad-based economic inequality, of the sort captured by a GINI coefficient, and then there is the specific problem of the very rich (whom we can refer to, for simplicity, as the 1%). While it is true that most Canadians are already able to exempt the entirety of their investment income from taxation (through home ownership, RRSPs, TFSAs), this is manifestly not the case with the 1%, who continue to use corporate ownership as a vehicle for tax avoidance.

Shortly after writing about this, I came across the following working paper, by Michael Wolfson, Mike Veall and Neil Brooks, “Piercing the Veil – Private Corporations and the Income of the Affluent.” It seems to me that before we talk about “soaking the rich,” or about the distributive effect of corporate taxes generally, the issues raised by this paper need to be addressed.
- And Eric Reguly discusses the role of executive pay and stock options in exacerbating inequality:
The rich and the super-rich are getting richer. We all know that. The question is why? Every economist on the planet has a theory. Some blame waning productivity gains or workers' losing their war with the robots. Others argue that the "offshoring" of jobs has suppressed wages, still others that lower taxes on capital gains have benefited the investing class. Thomas Piketty, the suddenly famous French economist whose bestselling book, Capital in the Twenty-First Century, has fired up the wealth-gap debate around the world, argues that the inequalities in income distribution have risen sharply because of enormous corporate pay packages. He's generally right (even though the Financial Times found fault with some of his historical data) but what he does not do in any detail is break down those packages into their component parts. He and his research colleague, Emmanuel Saez, use U.S. Internal Revenue Service data, which lumps all pay together as "salaries." But salaries make up only a tiny portion of the haul for top executives. The biggest single component is stock-based pay: the realized gains from exercising stock options and the vesting of stock awards.

How did stock-based pay turn into a monster? The simple answer is that no one--not shareholders, not employees, not regulators--has been able to stop the executives from rigging the game in their favour. What seemingly started out as a reasonable idea--handing executives some shares so they would have an extra incentive to boost shareholder value--has tipped so far into the executives' favour that the richest bosses are gaining oligarch status. Through the repricing of options and ever-rising stock awards, many executives have been able to ratchet up their pay even when their company's share price falls.
...
The executive pay system is so well organized, and so sublimely immoral, that it has taken on a racketeering flavour, all in the slick guise of aligning the interests of management and shareholders. Executives pad their boards with yes-men and -women who wouldn't dare suggest their boss is overpaid; compensation consultants are happy to recommend that the CEO's pay should fall in the peer group's top quartile; and the regulatory climate has been benign, thanks to the lobbying power of the companies.
- Alison highlights yet another set of foreign-funded corporate mercenaries complaining that we shouldn't listen to environmental and social groups because they might be foreign-funded. And Kayle Hatt calls out the Canadian Taxpayers Federation's attacks on humanities research and other evidence-based analysis.

- James Moore's latest push toward a national corporate-privilege agreement has apparently given up on identifying more than a single trade barrier in favour of labelling the fictitious as "extraordinarily stupid" in the hope that will make up for the lack of actual examples.

- Finally, Seumas Milne writes that a reversal of privatization is one of the essential building blocks of long-term growth and stability:
Privatisation isn't working. We were promised a shareholding democracy, competition, falling costs and better services. A generation on, most people's experience has been the opposite. From energy to water, rail to public services, the reality has been private monopolies, perverse subsidies, exorbitant prices, woeful under-investment, profiteering and corporate capture.

Private cartels run rings round the regulators. Consumers and politicians are bamboozled by commercial secrecy and contractual complexity. Workforces have their pay and conditions slashed. Control of essential services has not only passed to corporate giants based overseas, but those companies are themselves often state-owned – they're just owned by another state.

Report after report has shown privatised services to be more expensive and inefficient than their publicly owned counterparts. It's scarcely surprising that a large majority of the public, who have never supported a single privatisation, neither trust the privateers nor want them running their services.

Thursday, June 12, 2014

Thursday Morning Links - #VoteOn Edition

This and that for your Thursday (and Ontario election day) reading...

- Joseph Heath makes the case against Tim Hudak's PCs in particular, and the shift from public to private goods in general:
(I)t’s fairly clear what the PCs are planning. They are proposing a general shift in Ontario away from consumption of public goods towards increased consumption of private goods. For example, they aren’t making any noises about privatizing things, shifting production out of the public sector into the private, but where the general profile of consumption would be the same. They are proposing that we actually produce and consume less of the sort of goods that are best produced by government: in particular, less primary education, less environment protection, less public transit, and no provincial pensions. This will be done in order to lower taxes, so that people will have more disposable income, to buy various private goods.

Now I guess it’s worth noting that the PCs have not even tried to make the case for this (nor has Coyne, really, although we did get into it a bit once). In other words, they haven’t said one thing about why they think that it would be good for us, as a society, to shift consumption away from public (or quasi-public, you know what I mean) toward private goods. And at first glance, I’m not sure what that case would be. I’ve spent a fair bit of time in middle-class suburban homes in Ontario, and when I look around there, I don’t usually say to myself “you know what these people really need?… more shit from Costco.”

So if you were to put it in the form of a debating club proposition: “be it resolved, that what the people of Ontario need is more private goods and fewer public goods” I would be more than happy to take the negative. In fact, when I hear people complaining about their various work-life/financial woes, I find that a large fraction of them can be traced back to a chronic undersupply of public goods.
...
(O)ne of the central characteristics of the public goods whose level of supply is being debated (primary education, reduced congestion, better air quality & other environmental goods) is that they are not subject to competitive consumption. As a result, increasing the supply of these goods stands poised to generate real, sustained increases in individual welfare. This is a point that has been made most persuasively by Robert Frank (in various place, including here, here and here). The pervasive tendency in our society will be to underestimate the severity of negative externalities (precisely because they are not priced) and to overestimate the value of market goods (because we ignore positional effects). This is sufficient to license a general presumption that, whatever the politically achievable level of government spending, it is probably too low, relative to the actual consumption preferences of citizens. Further reducing it will do absolutely nothing to solve the problems that people hope to solve with it, and is likely to produce nothing but unnecessary suffering.

So that is why a Conservative government would be bad for Ontario — because their basic plan, if implemented, would make life worse for pretty much everyone.
- And Linda McQuaig points out that Hudak's obviously-flawed math is far from the only problem with his party's plans to crush Ontario's wages and working conditions:
This folksy persona has tended to obscure two key things about Hudak that have become evident in the current campaign: He remains committed to anti-union legislation aimed at making Ontario more like Arkansas, and he’s capable of a breathtaking level of cynical dishonesty.

His claim that he will create one million jobs isn’t just based on faulty arithmetic — it’s based on nothing, really.

And yet, even after his numbers were exposed as grossly inflated (multiplied erroneously by eight), Hudak simply shrugged, trotted out platitudes (“economists never agree”) and refused to acknowledge the fraudulent nature of his jobs claim.

Hudak is extremely anti-union. He used to be up-front about this, openly advocating that Ontario adopt so-called ‘right to work’ legislation — laws found primarily in the U.S. south which are aimed at curbing unions.

By preventing companies and unions from signing contracts with an automatic dues check-off, such laws make it difficult for unions to survive, leaving workers with little clout to push wages much above the U.S. federal minimum of $7.25 an hour. (In Arkansas, the state allows a lower minimum wage of $6.25 an hour.)
...
It is this preposterous decision to multiple by eight which has captured most attention and caused Hudak to be ridiculed about his math.
But the whole package is riddled with ludicrous assumptions based on Zycher’s (and presumably Hudak’s) belief that by increasing “economic freedom” to the level of Arkansas and Mississippi, Ontario’s GDP per capita will grow — even though our GDP per capita is already higher than these economically “freer” states and Hudak has said he won’t introduce the anti-union laws that allegedly increase “economic freedom” anyway.
- David Reevely looks behind the surface of a "decline your vote" astroturf site, and predictably finds a right-winger trying to convince marginal voters they shouldn't bother with democracy. And Alison makes clear that it's the politicians least interested in serving the public - Hudak's PCs - who would benefit if citizens give up in the ridings targeted for voter demobilization.

- Which is naturally just fine with some of our corporate media overlords, as Jesse Brown offers an inside scoop on the owner-mandated orders to override the Globe and Mail's editorial board to hand Tim Hudak an endorsement - followed by a sad attempt to claim the endorsement actually reflected editorial judgment rather than orders from on high. But of course the real controversy is that a union representing media workers had the nerve to express its own opinion.

- In what's surely unrelated news, Canada's corporate class is corrupt even by its own account. 

- Finally, Johannes Wheeldon sets out the options available to Ontario's political parties after today's election - with a particular focus on the (seemingly likely) event that no party holds a majority. Bill Tieleman observes that strategic voting tends to benefit precisely the party one wants to stop. And for those looking for more reading material on the Ontario election, Ron Waller's blog is a great place to start - particularly in reminding us just which party actually offers an alternative to Hudak's corporatism.

Friday, May 09, 2014

Friday Morning Links

Assorted content to end your week.

- Robert Reich calls out four fundamental lies used to push corporatist policies. But perhaps more interesting is the truth which no amount of concentrated wealth seems to be able to suppress:
But the more interesting thing here is the memo’s concession of a hurdle AFP faces: That people support the idea of “taking care of those in need and avoiding harm to the weak.” That this is seen as a messaging problem is telling.
...
As it happens, the AFP memo is right. Majorities of Americans do see the economy as rigged for the wealthy and don’t believe everyone has an equal shot at getting ahead. Majorities support a minimum wage hike. Though polling is admittedly mixed on the proper role of “government,” polls have shown majority support for the idea of policies that tax the wealthy to fund programs for the poor, and more Americans think government programs for the poor help rather than hurt. During the 2012 election — which the AFP memo cites as a teachable moment — polling showed strong support for preserving the safety net.
- Meanwhile, Duncan Cameron kicks off Rabble's UP! series with a look at the history of Canada's labour movement. But Tyler Cowen points out that Canada may be on a "super-unequal" trajectory - meaning that there's ample work to be done in shaping a country that looks for ways to serve anybody beyond the wealthy few. And Linda McQuaig also weighs in on the disproportionate growth of concentrated wealth:
Even Republican President Theodore Roosevelt argued in 1906 that the U.S. should place "a constantly increasing burden on the inheritance of those swollen fortunes which it is certainly of no benefit to this country to perpetuate."

The slashing of those high tax rates in recent decades has contributed greatly, Piketty notes, to today's return to inequality.

Piketty also dispels the notion that today's fortunes are the result of talent, noting that 60 to 70 per cent of them are due to inherited wealth, and that we're on track to return to a world -- like late 19th-century Europe -- dominated by inherited wealth.

Stephen Harper is no doubt hoping we'll be distracted by sports, and by reports we're doing about as well as middle-class Americans, who've been crushed by the brutal, ongoing, Wall-Street-induced recession.

Meanwhile, an immensely rich and powerful class right here in Canada is quietly amassing ever greater wealth and power to hand down to their heirs, who will be still richer and more powerful. But, go Habs, go! Why would we care? 
- Joseph Heath writes about the apples-to-oranges comparison between defined-benefit pensions like the CPP which offer retirement security to all workers included in their scope, and the Cons' preferred message that retirees can expect not a dime more than they can buy through an individual annuity.

- And Danielle Martin, while pointing out that there's reason for pride in Canada's universal health care system, also highlights the room for improvement in our health policy:
I see three big ideas out there that could raise the bar for the health of Canadians in the next decade.

The first is to improve access to prescription medications. Public insurance, either provincial or national, should cover the 20 most effective medications for chronic disease for every single Canadian. If we purchased those 20 drugs in bulk for the whole country and bargained effectively on the price we pay, we could put this program in place without spending a single penny more of public money than we already spend.

The second big idea flows from a campaign called Choosing Wisely. It taps into the reality that today’s health care consumers are increasingly well prepared to have conversations about the risks of tests and treatments. Too many Canadians are harmed every year by inappropriate, wasteful and often harmful tests and prescriptions. Radiologists agree, for example, that 30 per cent of CT scans are unnecessary, and these scans involve radiation. And do we really need to be taking 80 per cent more drugs than we did 10 years ago? It’s time to challenge the belief that more is always better when it comes to health care, and start a conversation between patients and health care providers that is more honest about what good research tells us are the risks and benefits of our interventions.

Third, we need to acknowledge that health is about more than just health care. Rather than spending more and more at the repair shop, we need to attack the causes of ill health. Income is the most important predictor of health: the poorer you are, the more likely you are to have negative health outcomes. The Guaranteed Annual Income, a simple and powerful concept that is supported both by local and international evidence, could dramatically improve the health of all Canadians by reducing poverty.
- Finally, Don Lenihan discusses the stark distinction between academic and political commentary. But it's well worth using his analysis as a starting point to discuss how political can be made less war-like, and more open to actual discussion of public policy choices.

Sunday, April 27, 2014

Sunday Morning Links

Assorted content for your Sunday reading.

- Joe Conason discusses the increasingly widespread recognition that inequality represents a barrier to growth. And Heidi Moore takes a look at Thomas Piketty's place in making that point:
This is a deep point. Many American households, if they are lucky, will grow their wealth at the same rate as the economy. But, because the wealthy are growing their fortunes at a much faster rate, no one else can ever catch up.

Let's repeat that: no one else can ever catch up.

This is where Piketty adds more nuance: it's not just inequality of wealth and income that we're struggling with, but inequality of opportunity. That's of far more concern. In essence, he is saying, we're lying to ourselves if we believe that hard work will lead to wealth. Mainly, wealth reliably leads to wealth. Everything else is chancy. The middle class is playing the economic lottery to improve their lot in life, while the wealthy have a sure thing.
- Ian Welsh nicely sums up what level of profit we should expect out a functional market economy. (Handy hint: it isn't "every dime that can be squeezed out of a powerless workforce".)
Sustained high profits, in free market economics, are considered the sign of an uncompetitive market.  ...[If] an industry or business makes high profits regularly, and certainly if they do so for more than a decade or so, the market is not competitive.

The response to that should be political: either make the market competitive, or if it’s the sort of market which can’t be or is too much trouble to be made competitive (most utilities, if you’re sane; certainly utility distribution; any insurance required of almost anyone; roads, etc…) then either make them government run, or heavily regulate them.
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The general level of profits in a society should, actually, be pretty low.  5% plus inflation is a good level to aim for.  If high profits are available in parts of the economy, every other business gets starved for cash, as money runs to the high profits.  Economics says that those opportunities should run out and there should be a regression to the mean, but in oligopolistic economies with strong protected works and vast amounts of government corruption, that doesn’t happen—until there is a crash, at which point the most profitable businesses are bailed out, because they used their profits to buy government.

Individual businesses want high profits, but societies want low profits, and should view sustained high profits as a sign of economic illness which requires intervention.
- Joseph Heath duly criticizes Gary Mason's unusually-explicit call to drive down wages in the name of greater corporate profits:
Mason circles around this point:
A weakening Canadian dollar is helping to offset our competitive disadvantage with the United States and others, to some degree, but it doesn’t look to be a long-term answer. And we know wage cuts aren’t likely to happen.
Notice the wistful tone in that last sentence. What he’d really like to see is everyone’s wages go down, but apparently that’s not realistic. I guess we can put that down to the unreasonableness of the working classes, unwilling to sacrifice their standard of living in the interests of securing… a higher standard of living. And why isn’t a weakening Canadian dollar a long-term answer? Depends what you think the problem is. If it’s correcting a balance of trade issue, then yes it is an answer. But if the “problem” is that our standard of living is too high, as Mason seems to think, then he’s right, a weakening Canadian dollar will not lead to a permanent reduction in national income. The fact that he, and the various business leaders he cites, regard this as a problem, suggests that they are either deeply confused, or else they harbour a fundamentally malevolent attitude toward the mass of the population.
- In case there was any doubt that the corporate lobby is firmly in the latter column, Cliff and Stephen Maher both discuss the abuse of the temporary foreign worker program to attack wages and working conditions for Canadian and immigrant workers alike. And the Alberta Federation of Labour looks in detail at the massive numbers of employers misusing the program.

- Finally, Wendy Gillis reports on Canada's increasingly-embarrassing (and damaging) obstruction of access to information.

Monday, April 14, 2014

Monday Morning Links

Miscellaneous material to start your week.

- Michael Harris observes that the Cons' vote suppression tactics match the worst abuses we'd expect from the Tea Party:
Stephen Harper would make a good governor of Arizona.

In addition to the lies and sleaziness his government has been serving up during its majority, its sickening reliance on marketing over truth, its dishonest use of technology in political matters, and its shameful abuse of language, the prime minister is blighting democracy in the name of political advantage.

When Stephen Harper gave Canada fixed elections dates, no one expected a whole lot more “fixing” was still to come. There was; Bill C-23. By potentially removing hundreds of thousands of voters from the next election, Canada could now have elections with fixed dates and fixed results.
- Joseph Heath writes about the need to shift from a political culture grounded entirely in talking points and instant responses to one which allows for substantial consideration of policy choices - while the recognizing the difficulty in trying to shift from one to the other. And Susan Delacourt points out that the assumption that voters won't or can't understand even moderate policy discussion lies at the root of the problem:
Everyone has heard about income inequality — the widening gap between haves and have-nots. It’s the big public-policy challenge of our time.

But there’s another form of inequality that should also be worrying us. Let’s call it information inequality: the widening gap between those in the know and those who know not. When did facts and evidence become the domain of an elite few?

I spent a lot of time the past few years researching a book about how marketing has taken over Canadian political culture and policy-making. Some of this all-marketing, all-the-time approach threatens to make wants more important than needs, the short term more important than the long term and advertising more powerful than journalism. It’s a culture that rewards people who can whip up emotions rather than those who can marshal facts and evidence to make their case; a culture where anecdotes trump statistics.
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The mark of a healthy economy, we’re told, is one in which everyone has a chance to improve his or her lot in life. A healthy democracy should work the same way — a society in which everyone has a chance to know more, where we don’t write people off as permanently apathetic, any more than we’d write them off as permanently poor.

If we want to close that information gap, we need more “responsibility to inform” and less “people don’t care.”
- Meanwhile, Tim Harper notes that voters in Calgary Signal Hill and Kitimat both sent strong messages over the weekend that they won't mindlessly defer to those with money or power in making important political decisions.

- Which isn't to say the Cons will stop trying to hand over as much power to the corporate sector as they can get away with. On that front, Randall Affleck comments on the increased power being handed to big agribusiness to prevent farmers from using seeds; Tara Carman catches the Cons once again enabling employers to hire cheaper foreign workers rather than Canadians looking for jobs; and Michael Geist notes that what's being billed as privacy legislation is also being used to allow businesses to share Canadians' personal information for commercial purposes.

- And in case we needed a reminder as to whether we can expect business to give anything back in exchange for being handed the world on a silver platter, Steve Benen reports on Caterpillar's brazen tax avoidance.

- Finally, Robyn Benson discusses how strong public services serve as a much-needed antidote to inequality.

Wednesday, May 01, 2013

Wednesday Morning Links

Miscellaneous material for your mid-week reading.

- Thomas Walkom writes that yesterday's minor tinkering aside, the goal of the Cons' temporary foreign worker program is still to drive down Canadian wages. And Miles Corak argues that the resulting distortion of employment markets shouldn't be any more acceptable to a libertarian than a progressive:
Flooding the market with workers from elsewhere, year in and year out – even during a major recession – is not about an acute labour shortage. It is nothing more than a wage subsidy to low-paying firms, a subsidy that stunts the reallocation of goods, capital, and labour that is the basis for efficient markets.

Not only that, but by blunting the rise in wages that market forces are calling for, the Temporary Worker Program is exacerbating the inequality of earnings in the lower half of the income distribution.

It will continue to displace Canadian workers silently if not directly, despite government assurances, for the simple reason that it artificially keeps wages low, and spoils the magic of the market.

The entire program amounts to a needless intervention that creates both inefficiency and inequity. Perhaps libertarians can see that more clearly than politicians. The whole thing should simply be scrapped.
- Doctors for Fair Taxation make the case for Ontario to balance its budget through more progressive taxes rather than through massive cuts. And Andrew Jackson again debunks the Fraser Institute's anti-tax hysteria by pointing out that it's based on falsely counting corporate taxes, user fees and any other public revenue as household-level taxes - while deliberately omitting any income for anybody but individuals in order to present artificially high rates.

- Tim Naumetz reports on the Cons' power grab to take control over the CBC. Lauren Strapagiel collects a few of the Twitter responses as to what #harperscbc would look like.

- Finally, Joseph Heath pens a defence of sociology (and criminology in particular) against the Cons' attacks:
The common-sense conservative disdain for sociology is long-standing. After delivering a swingeing 25-per-cent budget cut to Ontario universities in the 1990s, then premier Mike Harris specifically fingered “sociology” as one of the useless disciplines that the universities might consider cutting.

As a liberal intellectual, whenever I encounter this sort of hatred, I naturally ask myself, “What are the root causes?” What did sociologists ever do to them? Why isn’t “society” something that conservatives consider worthy of study?

In this case the root cause is not hard to find. It comes from an accident of intellectual history, which is that criminology developed as a subspecialty of sociology. The people who conservatives actually hate are criminologists. They hate criminologists because criminologists are pretty much unified in the conviction our common-sense ideas about crime, both with respect to its causes and its remedy, are wrong.
...
(M)ost of us have a huge bias in the way that we think about punishment, which affects our judgment in everything we do, from raising kids to managing people at work, and, of course, to thinking about crime. The only way to correct this, and to figure out what actually works, is to collect data and look at long-term trends.
This is why people who read books and study statistics are much more likely to support programs that appear to coddle criminals (what conservatives like to call “hugs for thugs” programs). It’s because social scientists actually know something important about how the world works, and in this case reality does have a liberal bias.

Hostility to expertise in all of its forms is the closest thing that Canadian conservatives have to a unifying ideology. Criminologists, however, rankle them just a little bit more than others, because their expertise happens to touch on an area that many conservatives feel strongly about. Recent changes in Canadian criminal justice have served no productive purpose, other than promoting punishment for the sake of punishment and vengeance for the sake of vengeance. This may make some people feel better, but it does nothing to prevent crime. Criminologists are the ones with the data to prove this, so it’s no wonder they’re unpopular with the government.