Friday, May 10, 2013

Friday Morning Links

Assorted content to end your week.

- Yes, it's for the best that some of Canada's pre-eminent scientists are offering to walk Joe Oliver through the realities of climate change. But Nik Beeson's offer of political detoxification looks like the more important step for those of us who aren't in denial about the science:
When pushing an oil addiction to a planet in the midst of catastrophic climate change is called 'ethical,' we have indeed entered a very Orwellian world, where words come to mean their opposites. Calling Canada's oil more 'ethical' is precisely as logical as saying my crack dealer is more 'ethical' than yours.  If I was buying crack I might buy Canada's ethical crack but crack addiction is, not uncommonly, a terminal affair.

Canada needs to kick being the most savvy fossil fuel pusher in the world. It needs to start pulling its weight on limiting its carbon output. If it wants to live up to its claim of being 'ethical' in its resource extraction industry it needs binding legislation to ensure that Canadian mining companies live up to international human rights and environmental standards. It needs to accept opponents of global warming as concerned and decent citizens of our democracy. It needs to offer renewables the same kind of subsidies that the fossil fuel industry receives so that they can compete in a fair market.

Canada needs to affirm that dissent is healthy in a democracy, that federal scientists require free speech, and that mining companies don’t need to supplement their profits with federal funding previously targeted to development aid. The steroid boost given to the Canadian Revenue Agency needs to be directed to offshore tax evasion and a financial transaction tax, not towards promoting the controversial ideological agenda of a single political party.  It needs to respect the United Nations Declaration on the Rights of Indigenous People, which it signed in 2010, affirming the need for the Free, Prior and Informed Consent of Indigenous peoples with regard to the use of their land and resources.
 - Diana Mehta reports on how the abuse of temporary foreign workers has already distorted Canada's labour market. And Peter O'Neil finds that both Harper Cons and Clark B.C. Libs actively pressured Citizenship and Immigration Canada to facilitate those abuses.

- But fortunately, not all Canadian governments are buying in to the philosophy that we should simply hand public resources and policy decisions to the mining sector for free - as Quebec is taking at least some steps to improve its tax and royalty revenues.

- CBC reports on what looks to be the prime example of international trade agreements interfering in public policy-making, as Ontario's feed-in tariff program may be destroyed by an effort to incorporate local manufacturing.

- Finally, Phillip Inman discusses Paul Krugman's battle against austerity.

Thursday, May 09, 2013

On party positioning

Leaving aside whether Stephen Harper's previously-undisclosed media monitoring is actually right in substance, Brian Jean isn't entirely wrong as to why he and other Con MPs are facing it:
Conservative MP Brian Jean, who is on the list, said he’s not sure why he was flagged, but also said he isn’t troubled by it.

“They must be interested in what their colleagues are doing, right? I mean the government must be. It seems to make sense from a party position that you would be interested in what your members are saying,” he said.
The only problem is that so far, it's the public rather than the party picking up the tab for an effort aimed strictly at the Cons' partisan interests:
The Harper government has spent more than $23 million over the last two years on media monitoring — including more than $2.4 million tracking some of its own backbench MPs in television interviews, radio and print, according to documents tabled in the House of Commons earlier this week.

The names of 65 Conservative backbench MPs — or just about 64 per cent of all Tory MPs who have no ministerial or any parliamentary secretary duties — are included in a list of search terms the federal government paid third-party contractors to monitor in news media from April, 2011 to December, 2012, although some of the terms were also monitored in early 2013.

MPs and staff in every office The Huffington Post Canada contacted Wednesday were bewildered to learn who was named on a list of politicians the Privy Council Office (PCO) tracks. (The PCO is the prime minister’s department).
...
All Conservative MPs were meant to be included, Rivet added. “Things may have been missed. It was our intention to include everyone,” he said. (Most opposition MPs are not being tracked according to the documents tabled Monday).
So the real question for the Harper regime is this: why is he forcing the public to pay for media monitoring which is obviously aimed at party management rather than any legitimate function of government? And when will the Cons reimburse Canada's public purse for the money they've taken already?

New column day

Here, on how all of Canada could lose out if Christy Clark's B.C. Liberals are able to follow through on their plans to eliminate the Therapeutics Initiative which has provided needed information about the effectiveness of prescription drugs.

For further reading...
- More background about the current status of the Therapeutics Initiative is available here and here.
- And the efforts to reduce public purchasing costs for generic drugs discussed in the column include the national initiative reported on by CBC, as well as Alberta's more recent push.
- But hopefully my concern will be rendered moot by the election of a new B.C. government. And the latest revelations in the long-running B.C. Rail scandal may go a long way toward making that happen.

Thursday Morning Links

This and that for your Thursday reading.

- George Monbiot writes about the absurdity of the right-wing choice to promote inequality in the name of competition among the wealthy when the ultimate results are worse for everybody:
The capture by the executive class of so much wealth performs no useful function. What the very rich appear to value is relative income. If executives were all paid 5% of current levels, the competition between them (a questionable virtue anyway) would be no less fierce. As the immensely rich HL Hunt commented several decades ago: "Money is just a way of keeping score."

The desire for advancement along this scale appears to be insatiable. In March Forbes magazine published an article about Prince Alwaleed, who, like other Saudi princes, doubtless owes his fortune to nothing more than hard work and enterprise. According to one of the prince's former employees, the Forbes magazine global rich list "is how he wants the world to judge his success or his stature".

The result is "a quarter-century of intermittent lobbying, cajoling and threatening when it comes to his net worth listing". In 2006, the researcher responsible for calculating his wealth writes, "when Forbes estimated that the prince was actually worth $7 billion less than he said he was, he called me at home the day after the list was released, sounding nearly in tears. 'What do you want?' he pleaded, offering up his private banker in Switzerland. 'Tell me what you need.'"

Never mind that he has his own 747, in which he sits on a throne during flights. Never mind that his "main palace" has 420 rooms. Never mind that he possesses his own private amusement park and zoo – and, he claims, $700m worth of jewels. Never mind that he's the richest man in the Arab world, valued by Forbes at $20bn, and has watched his wealth increase by $2bn in the past year. None of this is enough. There is no place of arrival, no happy landing, even in a private jumbo jet. The politics of envy are never keener than among the very rich.
...
In order to grant the rich these pleasures, the social contract is reconfigured. The welfare state is dismantled. Essential public services are cut so that the rich may pay less tax. The public realm is privatised, the regulations restraining the ultra-wealthy and the companies they control are abandoned, and Edwardian levels of inequality are almost fetishised.
...
Can we not rise above this? To seek satisfactions that don't cost the earth and might be achievable? The principal aim of any wealthy nation should now be to say: "Enough already".
- Meanwhile, Andrew O'Hagan writes about Margaret Thatcher ultimate legacy in leaving the U.K. a "greedier and seedier place". And Frances Russell points out the futility of a race to the bottom on taxes.

- Haroon Siddiqui and Stephen Gordon discuss the damage the Harper Cons have done to Canada's census. And Jennifer Ditchburn writes that rural Canada will be particularly hard hit by a lack of reportable data to allow for evidence-based policy.

- But then, Jonathon Gatehouse reminds us that Harper is generally eager to make sure that facts don't find their way into public debate - as evidence by his muzzling of federal scientists. And Andrew Coyne notes that the Cons' abhorrence of pure research makes little sense even from the most restrictive of libertarian viewpoints.

Wednesday, May 08, 2013

On public evils

Yes, there's plenty of reason to wonder what the Canadian public is getting for millions of dollars in ads intended to advertise...nothing at all. But I'll point out that the answer may be even worse than one might suspect at first glance.

Here's the background to the latest set of ad spending:
Taxpayer-funded government ads are supposed to inform citizens about programs and services, according to Treasury Board guidelines.

But when the Conservatives recently put out a tender for a major new ad agency contract that could see the feel-good "economic action plan" brand continued until 2016, they highlighted consumer confidence and the direction of the country as key objectives.

The government acknowledged Tuesday that "action plan" TV ads currently blanketing broadcasts of the NHL playoffs don't contain any actual measures from this spring's federal budget — although the ads are tagged with the budget's #eap2013 handle.
...
Despite the current radio disclaimer, the Harper government has not included any caution about MPs still having to approve the "economic action plan 2013" claims being made in its TV ads.

A spokesman for the Privy Council Office, which serves the prime minister, said that's because there's nothing new in the TV ads.

"The recent radio ads launched by the Department of Finance contained new measures for consideration by Parliament as part of the March 21, 2013 budget," spokesman Raymond Rivet said in an email.

"This is why a disclaimer was included. The recent EAP television advertisements did not contain new measures and aired before Budget 2013."
So what would we expect to be the result of advertising which is expressly aimed purely at "confidence" rather than actual outcomes, at expectations rather than reality?

The most obvious possibility - and the one which we likely see as both the Cons' intention and the primary source of outrage - is that it's purely a matter of partisan gain. If Canadians are more satisfied with the economy (whether or not that satisfaction is based on their actual interests), then the Cons have a greater chance of clinging to power in 2015. And Stephen Harper has never been reluctant to spend as much money as he can get his hands on to benefit his own political future.

I'll take at face value that political interests likely reflect the Cons' main intention surrounding the EAP ads. But distortion of Canada's partisan landscape is far from the most dangerous possible result of a massive confidence-boosting campaign.

Instead, the greatest risk may arise if the ads succeed in achieving their goals. If the Cons actually reach nearly every Canadian with constant messages about "jobs! growth! prosperity!" and drown out any voices of concern or countervailing considerations, then the result may simply be to widen the gap between perception and economic reality. Or in other words, to inflate an expectations bubble which is doomed to pop at some point.

Now, the Cons may figure that irrational exuberance is a public good - or at least a risk worth taking if it helps to win an extra term in office. But those of us whose real lives are at stake may have reason to disagree.

Which isn't to say that any given scheme to short Canada is particularly likely to succeed. But we should expect that our federal government would be primarily focused on improving the actual lives of Canadians, rather than deliberately putting perceptions first. And since the Cons have made it abundantly clear that they have their priorities wrong, we should be eager to put somebody more responsible in charge.

Wednesday Morning Links

Miscellaneous material for your mid-week reading.

- Linda McQuaig discusses Stephen Harper's class war:
Canadians don’t like Harper’s anti-worker agenda — when they notice it. That’s why there’s been such a public outcry since the temporary foreign worker program was exposed as a mechanism by which the Harper government has flooded the country with hundreds of thousands of cheap foreign workers, thereby suppressing Canadian wages in the interests of helping corporations.

Apart from this clumsy fiasco, the Harperites have been adroit at keeping their anti-worker bias under the radar. Instead, they’ve directed their attacks against unions, portraying them as undemocratic organizations run by “union bosses” who ignore the interests of ordinary workers.

It’s revealing that this harsh critique of unions largely comes from business think-tanks and conservative politicians — folks who aren’t generally known for championing workers’ rights but who apparently can’t sleep at night at the thought workers aren’t being well represented by the people they elect to run their unions.

Of course, the real reason Harper attacks unions is because they’ve been effective in promoting the interests of working people over the past century. By establishing norms for higher wages and benefits in the workplace, and by pushing governments to implement universal social programs, unions are largely the reason we have a middle class in this country.
- Meanwhile, Carol Goar laments that Ontario's Wynne Libs chose not to make a meaningful effort to cut down on poverty. And Dr. Dawg documents the federal Libs' latest attempt to be indistinguishable from the Harper Cons.

- In the latest in conservative transparency, Alison Redford is covering up her own government's pipeline safety report - presumably to avoid the possibility that its conclusions might get noticed in the review processes for new pipelines. Michael Harris discusses the Cons' strategy of blaming their own scandals on unnamed bureaucrats (who are of course prevented from defending themselves with the truth). And the Star finds that the federal government won't answer questions about $2.4 billion in consulting contracts - while contracts ranging up to nine figures seem to have bought the public little more than the contractor's silence:
(S)everal departments and agencies refused to say what services they bought as part of the roughly $700 million in taxpayer money they spent on management consulting.

Human Resources and Skills Development Canada (HRSDC), in charge of delivering social programs and services, has billed more than $420 million since 2004.

One of the department’s most recognizable divisions, Service Canada, has spent another $129 million for management consulting — more than 70 per cent of which was given to a single recruitment company, according to the government’s contract records.

What consulting work was done for all that money? A spokeswoman with HRSDC refused to say.

The company, Quantum Management Services, was just as tight-lipped.

“I’m not going to answer your questions,” said Anne Cote, a vice-president in the company’s Ottawa office. 
- Fortunately, at least some individuals are working to shed lights on the increasingly-hidden operations of our state and corporate sectors. And Dennis Gruending highlights a few of the examples noted by the Canadian Journalists for Free Expression.

- Finally, Joe Bower discusses the effect of standardized testing in Alberta - which has enabled the Fraser Institute to take pot-shots at a school for student parents based on its failure to be sufficiently choosy in recruiting pupils.

Tuesday, May 07, 2013

Tuesday Night Cat Blogging

Sprung cats.



Tuesday Morning Links

This and that for your Tuesday reading...

- Joseph Stiglitz discusses the abuse of intellectual property law to turn publicly-funded research into privately-held profit centres (no matter how many people die as a result):
(A) Utah-based company, Myriad Genetics, claims more than that. It claims to own the rights to any test for the presence of the two critical genes associated with breast cancer – and has ruthlessly enforced that right, though their test is inferior to one that Yale University was willing to provide at much lower cost. The consequences have been tragic: Thorough, affordable testing that identifies high-risk patients saves lives. Blocking such testing costs lives. Myriad is a true example of an American corporation for which profit trumps all other values, including the value of human life itself.

This a particularly poignant case. Normally, economists talk about trade-offs: weaker intellectual-property rights, it is argued, would undermine incentives to innovate. The irony here is that Myriad’s discovery would have been made in any case, owing to a publicly funded, international effort to decode the entire human genome that was a singular achievement of modern science. The social benefits of Myriad’s slightly earlier discovery have been dwarfed by the costs that its callous pursuit of profit has imposed.
...
Sadly, the US and other advanced countries have been pressing for stronger intellectual-property regimes around the world. Such regimes would limit poor countries’ access to the knowledge that they need for their development – and would deny life-saving generic drugs to the hundreds of millions of people who cannot afford the drug companies’ monopoly prices.
...
Intellectual-property rights are rules that we create – and that are supposed to improve social well-being. But unbalanced intellectual-property regimes result in inefficiencies – including monopoly profits and a failure to maximize the use of knowledge – that impede the pace of innovation. And, as the Myriad case shows, they can even result in unnecessary loss of life.
- Lana Payne writes that the Cons have at least blinked in acknowledging problems with their preference for cheap, disposable temporary foreign workers over Canadian job-seekers. But lest there be any thought that they're doing anything more than the bare minimum to respond to a public-relations firestorm, CBC reports that they've been aware for at least a year that TFWs were being used in the same industries and locations where workers were receiving EI benefits for want of work. Tavia Grant confirms that the Cons' economic strategy is creating three times as many temporary jobs as permanent ones. And Tim Harford is the latest to weigh in on the corrosive effects of long-term unemployment on an individual's career prospects.

- Dennis Howlett highlights another failure of the Cons in government - noting that even after tax havens have emerged as a widely-known public issue, Con MPs have rejected any recommendations which would meaningfully address the problem.

- Meanwhile, the Cons are trying to deflect blame for their losing $3.1 billion of public money by saying...it's somebody else's fault for not identifying their failures sooner. Sound familiar?

- Finally, Paul Krugman comments on the Republicans' chutzpah in blaming everybody else for their own regular deficits. Suffice it to say that Christy Clark would fit right in:

The key measure you want to look at is the ratio of debt to G.D.P., which measures the government’s fiscal position better than a simple dollar number. And if you look at United States history since World War II, you find that of the 10 presidents who preceded Barack Obama, seven left office with a debt ratio lower than when they came in. Who were the three exceptions? Ronald Reagan and the two George Bushes. So debt increases that didn’t arise either from war or from extraordinary financial crisis are entirely associated with hard-line conservative governments.
And there’s a reason for that association: U.S. conservatives have long followed a strategy of “starving the beast,” slashing taxes so as to deprive the government of the revenue it needs to pay for popular programs.

The funny thing is that right now these same hard-line conservatives declare that we must not run deficits in times of economic crisis. Why? Because, they say, politicians won’t do the right thing and pay down the debt in good times. And who are these irresponsible politicians they’re talking about? Why, themselves.

To me, it sounds like a fiscal version of the classic definition of chutzpah — namely, killing your parents, then demanding sympathy because you’re an orphan. Here we have conservatives telling us that we must tighten our belts despite mass unemployment, because otherwise future conservatives will keep running deficits once times improve.

Monday, May 06, 2013

On measured responses

Shorter Enbridge, responding to the revelation that a tidy 94% of its Canadian pumping stations are missing required backup generators and/or shut-off buttons:
So the question is whether we'll take steps to comply with environmental laws if nobody's bothering to enforce them? Let's consider that for a moment.

In summary, the answer is "not generally".

Monday Morning Links

Miscellaneous material to start your week.

- As would-be frackers show us exactly why it's dangerous to give the corporate sector a veto over government action, Steven Shrybman suggests that corporations are mostly doing only what we'd expect in exploiting agreements designed to prioritize profits over people:
Canadian businesses are simply playing by the rules of free trade which encourages the outsourcing of everthing that isn't glued to the local Tim Hortons or the tar sands (to cite two prominent examples): that means value-added processing (where the jobs are) of natural resources that are simply ripped and shipped to the US or Asia, virtually all manufacturing, and an awful lot of services -- from accounting, and computer programming, to retail (online) sales.

And yet, nary a mention of so-called free trade from Enright -- which is really no more than domestic market de-regulation and the principal cause of our present predicament.
- But then, it's not as if corporatist policy has emerged without some massive business lobbying - and Alison documents some of the connections between outsourcing firms and governments which have fed into the temporary foreign worker fiasco. Meanwhile, the Huffington Post points out some of the effects of temporary foreign worker abuse in Alberta, while the Canadian Media Guild notes that the Cons have made sure the floodgates are still wide open.

- Pogge writes that in limiting access to future project review proceedings, the Cons seem to have succeeded in taking the "public" out of public policy. But Robyn Benson confirms that the labour movement isn't about to be silenced.

- Jason Fekete offers a few early caveats as Statistics Canada gets set to release the results of the Cons' census vandalism.

- Finally, Paul Adams notes that after Jason Collins' decision to come out publicly was met with broad support, the North American conservative movement may be the last place where gays and lesbians are uniformly forced to stay in the closet. But I'm not sure we can expect that to change for the better when the likes of Brad Wall won't so much as deign to say the words "gay" or "homophobia" (while defending a choice not to support gay-straight alliances).

Sunday, May 05, 2013

Sunday Morning Links

Assorted content for your Sunday reading.

- Aviva Shen looks at Monsanto's history of regulatory capture - with the recent "Monsanto Protection Act" serving as just a minor example in a long list of control over U.S. law:
Monsanto insists that its revolving door is in overdrive because Monsanto employees are simply the best qualified for positions in these agencies, who certainly don’t hold onto their loyalty to the company in their new roles.

Yet it’s hard to ignore how Monsanto has benefited from these connections. The USDA has never denied a single application for Monsanto’s genetically engineered crops. USDA chief Tom Vilsack briefly considered limiting Monsanto’s alfalfa planting to protect organic crops from contamination, but deregulated it entirely instead. In another win for the company, their controversial growth hormone for cows was approved under Michael Taylor, a former Monsanto lobbyist-turned-USDA-administrator-turned-FDA Deputy Commissioner, even though it was banned in the European Union, Japan, Australia, and Canada over health concerns. The hormone was approved in the US after Monsanto employee Margaret Miller oversaw a report on its safety, took a job at the FDA, and promptly approved her own report. Another Monsanto lobbyist, Islam Siddiqui, later wrote the USDA’s organic food standards, allowing irradiated and genetically modified foods to label themselves as organic...

The controversy behind the Monsanto Protection Act is a case study in Monsanto’s cozy relationship with regulators. In 2010, a federal judge chided the USDA for violating environmental law by rushing through approval of Monsanto’s genetically engineered Round Up Ready sugar beets. The judge ordered a halt on all planting of the beets until an environmental study was completed. Ignoring the court, the USDA deregulated the beets anyway, claiming that the delay would result in a sugar shortage.

That’s because Monsanto controls 95 percent of the sugar beet market, making it virtually impossible for farmers to find alternatives. Industry consolidation among a handful of corporations has driven up seed prices and stifled innovation by smaller firms. It’s no wonder, then, that a massive beet shortage would have occurred if Monsanto’s beets had been delayed for a couple years of environmental review. With the help of complacent federal regulators, Monsanto is the only game in town.
- Matthew Yglesias writes that corporate excesses are making longstanding Marxist critiques of capitalism look entirely accurate. Dave Cournoyer compares the kid-glove treatment of billionaires illegally funnelling money into Alberta's political system to the reprisals against workers concerned for their own safety. And the Vancouver Sun writes about the choice of the Harper Cons and their provincial cousins to develop a P3 industry to systematically convert public infrastructure projects into private profits.

- All of which is to suggest that there's reason to be skeptical of John Geddes' view that corporate tax cheats will ultimately get what's coming to them as a result of greater public awareness of tax avoidance. And indeed, I fully expect to see a few isolated cases of obvious individual abuses touted as having fully resolved any problem as an excuse to avoid a real look at questionable transfer pricing and other means of corporate tax evasion.

- Meanwhile, Althia Raj reports on the effect of the Cons' wage suppression policies on actual temporary foreign workers - who figure to wind up stuck in "low-wage ghettos" due to their inability to pursue alternate employment or point out employer abuses.

- Finally, Tom Kott writes that Justin Trudeau falls comfortably within the elite corporate consensus, planning to win over Con voters primarily by parroting their right-wing policy prescriptions.

Saturday, May 04, 2013

On implausible assumptions

I've made the case questioning gratuitous privatization of SLGA's liquor sales (as well as a controlling stake in ISC) based on the actual profit levels associated with real Crowns. So what kind of contrary argument is there for pushing privatization rather than public investment? Let's ask the Leader-Post's editorial board:
(M)ore private liquor stores means less profits for SLGA to give to government. It's (sic) familiar argument, but not universally accepted: critics say this ignores the income taxes private firms and their employees pay, and the taxes generated by the construction of new stores.
Now, the apparent critics might have a point - if we lived in a world where SLGA employees didn't pay income taxes, or where there was any meaningful difference in the economic activity associated with the construction of new stores for private operation as opposed to public operation. But I'd hope we can discuss the subject based on a comparison from this world, where those factors are at worst neutral as between private and public operation of new stores.

 That means the only comparison is between the public enjoying all of the profits associated with new stores, or a mere 10% of the profits (minus any further deductions, giveaways and jurisdictional transfers) from a private operator. 

Which would make for a rather easy decision for anybody looking out for the province's best interests, rather than seeking to prioritize private profits at the expense of the public good. But unfortunately, the Sask Party has had far too much help in exactly the latter mission.

Saturday Morning Links

This and that for your weekend reading.

- Helene Leblanc argues that we should make sure the Internet is treated as a commons accessible to all, rather than a privilege denied to many (particularly in rural areas):
Many Canadians living outside urban centres do not have access to high speed broadband Internet and a significant number connect at speeds of 1.5 megabits per second — only marginally faster than dial-up.

In the year 2000 Estonia declared Internet access a fundamental human right, something essential for life in the 21st century, and launched a program to expand rural access. Finland has declared that by 2015, access to a 100 megabits-per-second connection will be a legal right. The U.S.’s National Broadband Plan has set a similar target of Internet service speed of 100 megabits-per-second in at least 100 million homes by 2020.
...
It is essential that residents of Canada’s Arctic region have access to reliable, affordable communication networks — not only to protect our nation’s sovereignty and for emergency response, but to benefit from the many opportunities living in the 21st century can afford. Emergency responders also need the means to communicate rapidly in the event of disasters in the Arctic and elsewhere.
...
As government, it is the Conservatives’ responsibility to do more than repeat mindless rhetoric on the economy; they must take action to promote Canadians’ long-term prosperity. Canada needs to be strategic in securing broadband infrastructure for rural and remote regions. A lack of equitable access to high‐speed broadband will leave businesses in rural and remote regions behind in a global economy.
- Ishmael Daro reports that the Cons are already planning for three more years of publicly-funded economic propaganda, while Mike de Souza confirms that the Cons plan to spend yet more money claiming credit for past programs as a substitute for doing anything about climate change. All of which is to confirm that we should be far more concerned about the hundreds of millions of dollars being burned by Stephen Harper's central command than the comparatively trifling cost of MP communications.

- Angella MacEwen points out why we shouldn't simply assume away the problem of unemployment. And Haroon Siddiqui confirms that the Cons are still pushing to use temporary foreign workers to drive down Canadian wages and opportunities.

- Finally, Adam Radwanski recognizes that the Ontario NDP has been effective enough to force Kathleen Wynne to at least give some substance to her party's rhetoric about a "fair society". But Trish Hennessy and Hugh Mackenzie rightly note that Libs' overarching plan still involves long-term austerity rather than social progress.

Friday, May 03, 2013

Musical interlude

Econoline Crush - Surefire

Friday Morning Links

Assorted content to end your week.

- Arthur Haberman argues that our universal public health care system helps contribute to a more democratic society:
There is something that political philosophers — those like Tocqueville and Mill in the 19th century — have come to call living democratically. By this it is meant that voting is but a small part of what being in a democracy is about. It also includes volunteering in small ways to make our communities better, participating in decisions about what happens to your town or your neighbourhood, judging your fellow citizens by the quality of their character and not by the size of their homes or wealth, and treating all as equals.

Our society has decided that we needed to expand what living democratically means to the realms of education and health. We hope to make education universally available to all, a good education, providing more equal opportunity. We don’t succeed here as well as we would like, but the goal is a meaningful one.

We also hope to make health care available to all so that no one will face the misfortune of not being able to afford decent care and so that all have access to something that will enhance the quality of their lives. Here, it seemed to me in those eight weeks in the waiting area, we are succeeding very well in living democratically.

So universal health care is not only about the bodies of our citizens. It is also a statement about the values we want to forward in the body politic. May it flourish.
- Meanwhile, Bob Hepburn comments on the importance of a functional Parliament as part of the same end goal of a viable democracy. And Sean Holman's new project documents how B.C.'s parties in particular have come to expect discipline rather than participation by MLAs.

- David Wiegel writes that the Cons aren't the only political party fighting a war against social science, as their Republican cousins are actively defunding research in the area. But fortunately, Michael Adams for one doesn't intend to give in to the anti-research movement.

- Scott Clark and Peter De Vries highlight the need to track down the $3.1 billion disappeared by the Harper Cons. And Michael Harris contrasts the Cons' demands for accountability from everybody else against their expectation that nobody will question even their least plausible talking points:
Here is another big thing that has been Harperized: the need for everyone to be accountable with public funds — Indian Bands, unions, the provinces, et. al. A lot of people have wondered why Tony Clement, the Sultan of Slush, was ever put in charge at Treasury Board — except maybe to slowly suffocate the CBC. This is the guy and the government that couldn’t be bothered to properly appropriate the funds for the G-8, G-20 and simply lifted the money from the budget of the Canada Border Service Agency. The auditor-general’s report bristles with irony.

Now that Michael Ferguson has confirmed that $3.1 billion has gone missing-in-action from the Public Security and Anti-Terrorism Initiative, when can we expect the Attawapiskat Doctrine to kick in? That’s when you set the sharp-pencil boys on a tiny First Nations Band to make sure there’s been no hanky-panky with taxpayers money — and then publish their incompetence.

But Deloitte won’t be doing Tony, either before or after he becomes finance minister. It’s all about making sure that enemies come transparent and with a leash, and the regime remains behind the curtain — as no one knows better than the Wizard.
- Finally, Carol Goar discusses the current committee study of income inequality. But it's difficult to separate inequality in both opportunity and outcomes from a system set up to benefit those with the most - such as the tendency to allow the likes of Goldman Sachs to avoid the full consequences of tax evasion.

Thursday, May 02, 2013

Thursday Morning Links

This and that for your Thursday reading.

- Ed Broadbent takes a look at how our tax system can combat inequality in more ways than one:
The Broadbent Institute is presenting proposals Tuesday to the Finance Committee of the House of Commons. Our primary recommendation is that Canada establish as a goal the provision of a basic income-tested guarantee to all citizens through a fairer personal income tax system.

The tax/transfer system equalizes income in two important ways. First, progressive income taxes mean that the affluent pay a higher percentage of income than middle and low income earners. Second, these taxes help finance social programs that benefit those who have middle and low incomes more than the affluent.

Our tax/transfer system is modestly re-distributive, but we still have a very unequal distribution of income after the impact of taxes and transfers has been taken into account. And the re-distributive impact of has been declining since the mid-1990s. It’s now 20% below the advanced industrial country average.
...
(A)s a long-term goal, we should abolish welfare as it currently exists. Our current system, paid for by the provinces, provides meagre and stigmatizing benefits that leave recipients well below the poverty line. It also creates a “welfare wall” since recipients lose their benefits almost entirely if they take a low paid and insecure job. A negative income tax has been broadly championed across the political spectrum, including by Senator Hugh Segal and the late Tom Kent, the prime architect of Canada’s social reforms of the 1960s. It should be given serious consideration.

Fourth, improvements to income support programs should be financed by making our income tax system fairer. Even as the income share of the top 1% has risen, their effective income tax rate has fallen, from 39.4% to 33.3% since 2000. We should consider changes to address this, scale back special tax breaks that deliver huge benefits primarily to the very well off, e.g. on capital gains, and crack down on tax cheaters. Corporations should be required to pay to clean up their own pollution. Making these changes would help stabilize government finances and restore public trust in the fairness of the tax system.
- Meanwhile, Matt McClure points out that Alberta's "low tax" branding only applies to the wealthy - as low- and middle-class families actually pay more there than in other provinces.

- Trish Hennessy documents the costs of the Cons' austerity. But Kenneth Thomas notes that the disastrous results of austerity haven't stopped the Republicans from pushing it in the U.S. And lest we think Canada is lacking for Very Serious People eager to inflict economic pain in the name of appeasing the bond vigilantes regardless of the human costs, Neil Macdonald argues for exactly that.

- Finally, it should come as no surprise that the type of irresponsible Con government which can lose track of $3.1 billion without blinking an eye is focusing its efforts on...muzzling in the watchdogs and media outlets which might otherwise be able to hold it to account.

New column day

Here, on how increasing inequality at the top of the income spectrum is creating a real disparity in opportunity affecting both middle-class and lower-income children.

For further reading, see Sean Reardon's column (or better yet, his study) discussing the U.S.' experience in detail.

Wednesday, May 01, 2013

Normalizing secrecy

I haven't commented yet on the story surrounding Tom Mulcair's request for basic investigation into back-channel information between the Trudeau government and the Supreme Court of Canada - which seems best classified as a minor but reasonable request which has been blown out of proportion.

But I'll take a moment to point out the jaw-dropping response from the Libs, who are apparently demanding government secrecy far beyond that ever publicly defended by even the Harper Cons:
This motion calls for the federal government to release archived documents related to the constitutional negotiations which led to the patriation of the Constitution in 1982.

However, the federal government has already stated that it does not intend to give policy directives to civil servants responsible for the application of the Access to Information Act.

We would like the government to hold firm in this respect. The Conservatives already have a tendency to politicize everything; there is no need to encourage them in this bad habit. The last thing we should do is politicize the application of the Access to Information Act.

We believe this act should be strengthened; however, this should be done as part of a global legislative review and not in response to one specific request for information.
So what's wrong with that response? Well, let's take a look at what the Access to Information Act itself is intended to do in making information available (emphasis added):
2. (1) The purpose of this Act is to extend the present laws of Canada to provide a right of access to information in records under the control of a government institution in accordance with the principles that government information should be available to the public, that necessary exceptions to the right of access should be limited and specific and that decisions on the disclosure of government information should be reviewed independently of government.
(2) This Act is intended to complement and not replace existing procedures for access to government information and is not intended to limit in any way access to the type of government information that is normally available to the general public.
In other words, the point of the Access to Information Act isn't to serve as the lone means by which government information can be made public, or to require that access-to-information coordinators vet every single piece of paper distributed by a government department. Instead, it creates a right to information upon request - without affecting the authority of a government to release information through other channels.

And I don't think anybody has seriously proposed changing the law in that respect, particularly given the obvious dangers of presuming that all government information must be withheld from the public unless it's specifically requested.

But in their desperation to find a wedge against the NDP, Dion and the Libs are pretending that it's somehow wrongful for a government to so much as consider whether information should be released outside of the formal process under the Access to Information Act.

Needless to say, we shouldn't buy Dion's implicit argument that government accountability should exist only through access-to-information requests. And the fact that Dion has given the Cons leverage to make secrecy the norm - particularly in reliance on a statute based on the contrary principle - should be taken as an indication that the Libs are still more interested in preserving top-down power than pursuing good governance.

Shocker

Nobody could have foreseen that the much-ballyhooed Backbench Spring would give way to the Toadying Summer Olympics. But sure enough, the first question from a Con MP nominally challenging his party's whip looks like a gold medalist in the Party Boot-Licking and Tar Sands Shilling biathlon.

As best, it looks like we may be able to draw some amusement seeing the Cons' backbenchers compete for the right to ask future variations on "Mr. Prime Minister, your government has the momentum of a runaway freight train loaded with Uncle Cappy's Magic Non-Polluting Petroleum-Derivative Elixir, which will never spill and we shouldn't care if it does. Why are you so popular?". But anybody holding out hope that there might be some critical thought forthcoming from within the Cons figures to be in for a long wait.

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.

Tuesday, April 30, 2013

Tuesday Night Cat Blogging

Embedded cats.



On choosing sides

There's been no lack of past commentary (from myself and others) on how income splitting is about as regressive a policy as one could possibly design - and I won't repeat it for the moment other than to say that the supposed "compromise" offered by Jack Mintz only goes a step further in ascribing zero value to a stay-at-home spouse.

But it is worth pointing out Lib MP John McKay's participation in yesterday's PR stunt - explained by the bizarre claim that the issue is one that we should "de-politicize" income distribution and tax policy.

Simply put, the issue represents about as stark a political choice as possible: do we agree or disagree with the concept of taking money out of the hands of the poor and redistributing it to wealthier households? And if people accept McKay'a dubious premise that a party can be progressive while trying to silence opposition to that worldview (which the Cons will be pushing with every political lever available to them), then we're doomed to lost the political battle.

Tuesday Morning Links

This and that for your Tuesday reading.

- We shouldn't be surprised that the corporate sector is reacting with contrived outrage to the Cons' tinkering with a severely flawed temporary foreign worker program. But Jim Stanford points out what it would take to actually move labour standards upward rather than including Canadian workers in a race to the bottom:
(T)he Harper government is now moving to avert a political disaster in the making. Advance coverage in the Globe and Mail indicates its proposed changes will include a new fee for temporary foreign worker permits, and requirements that employers promise to step up their advertising and training to eventually recruit Canadians for the jobs.

But those promises won’t be worth the paper they are printed on. Federal bureaucrats have no concrete basis on which to judge whether training or recruitment promises are realistic or not, let alone have power to meaningfully enforce them. So long as access to migrant labour remains open, companies can always come back complaining about “shortages.” Even today, the so-called Labour Market Opinions which must be issued before employers can tap the program are no more than a symbolic ritual; approving employers’ “training plans” will be just another rubber stamp.

If we really want employers to find qualified Canadians instead of importing cheap replacements, the whole loophole must be closed down. The low-skill window currently allowed under the program should be cancelled completely (along with the provision allowing employers to pay 15 per cent less-than-going wages). There is absolutely no legitimate reason unemployed Canadians can’t be tapped to fill every one of those jobs: from coal mines to factories to hotels to donut shops. Employers in these industries tap the program only as a handy source of cheap, compliant labour. This whole section of the program gives the lie to the claim that we need migrant workers for their “skills” in the first place.

For genuine, specialized high-skill vacancies, the guest worker program must only be used as a temporary stop-gap, with hard caps on both numbers and length. Specialists should be allowed in for six months only, with a maximum of one renewal. That gives employers ample time to recruit Canadians – so long as they are willing to pay them. Employers who use the program for skilled-trades positions must set up their own apprenticeship programs to meet future needs.

Every migrant should be entitled to normal employment rights (including access to EI and CPP benefits), as well as having access to normal immigration opportunities. After all, if their skill truly cannot be replaced from within Canada, then they should be invited to live and work here like the rest of us, with full legal protections (instead of being fenced off in low-wage, unpoliced job ghettos).

Finally, full transparency should be required – regularly publishing which employers hire temporary foreign workers, in which jobs, and for how long. Apart from providing unemployed Canadians with a valuable source of information on job opportunities, this sunshine would help ensure that companies use the program for true skills shortages only.
- Meanwhile, Shiv Malik discusses the latest gratuitous slaps at the unemployed in the UK - as the Cons' cousins are forcing anybody out of work to participate in utterly frivolous psychometric testing.

- And Dr. Dawg offers a modest suggestion as to how outsourcing could actually benefit workers in less-developed countries. (Needless to say, I don't see our corporate overlords taking him up on the proposal.)

- Mike de Souza reports on the Cons' latest decision to eliminate any environmental assessment of major projects ranging from pipelines to chemical explosive plants. Which fits nicely with Justin Ling's interpretation of the Cons' agenda - but doesn't exactly provide reason for confidence among those of us paying attention to what laissez-faire zealotry is doing elsewhere.

- Finally, Sean Reardon discusses how income inequality - particularly between the middle class and the plutocrats - is translating into inequality of opportunity through educational outcomes.

Monday, April 29, 2013

Monday Morning Links

Assorted content to start your week.

- Lynn Stuart Parramore discusses the epidemic of wage theft by U.S. employers:
Americans like to think that a fair day’s work brings a fair day’s pay. Cheating workers of their wages may seem like a problem of 19th-century sweatshops. But it’s back and taking a terrible toll. We’re talking billions of dollars in wages; millions of workers affected each year. A gigantic heist is being perpetrated against working people: they’re getting screwed on overtime, denied their tips, shortchanged on benefits, defrauded on payroll, and handed paychecks that bounce like rubber balls. A conservative estimate of unpaid overtime alone shows that it costs workers at least $19 billion per year.
...
The sheer scope of the problem is jaw-dropping, sweeping across key industries and inflicting massive damage on individuals and society as a whole. In 2009, the National Employment Law Project (NELP) released a ground-breaking study, “Broken Laws, Unprotected Workers,” which found that in America, an honest day’s work is frequently rewarded with theft and abuse. A survey of over 4,000 workers in Chicago, L.A. and New York found that minimum and overtime violations were rife, and any attempt to complain or organize was swiftly met with punishment. Among the revelations:
  • 26 percent of low-wage workers got paid less than the minimum wage.
  • 76 percent of workers toiling over 40 hours were denied overtime.
  • Workers lose an average of $2,634 a year due to these and other workplace violations.
- But of course, it’s easier for employers to get away with violating workers’ rights in the absence of any alternative. And the erosion of public assistance surely figures into that equation:
For the record, the Rae government established a single welfare rate of $663 a month in 1993 — the high water mark. He then froze social assistance rates in both 1994 and 1995, the first two-year freeze since 1973. Mike Harris cut rates by 21.6 per cent, establishing a single rate of $520 a month and let it stay there until Dalton McGuinty took over eight years later. That low $520 single rate, if adjusted for inflation, would now be $617 a month but the current rates stands at just $606 a month.
For the last 20 years, social assistance has eroded to the point that it would take a 56-per-cent rate increase to bring the single rate back to where it was in 1993.
- Meanwhile, Paul Krugman discusses how the 1% has managed to keep dominating policy debates even when its demands have consistently produced disastrous results. And Miles Corak points out that Canada’s Standing Committee on Finance is examining some useful suggestions to address income inequality - though it’s unlikely that study will produce many results in light of the anti-social majority wielded by the Cons.

- Finally, Simon Enoch and Erika Shaker write that the labour movement’s fight for safer workplaces is far from over.

Sunday, April 28, 2013

Distinction without a difference

Erin is right to question Doug Elliott's attempt to split hairs between a "slowdown" and a "deceleration". But Elliott's parsing ranks a distant second behind Russ Marchuk in the field of evasive dissembling.

Shorter Marchuk:
It's outrageous that anybody would suggest we're imposing a disastrous policy like universal standardized testing on students. Instead, our policy is one of (flips through thesaurus) unified province-wide (flipflipflip) regular (flipflip) assessments for individual pupils. Which I'm sure you can see is something totally different.

Sunday Morning Links

Miscellaneous material for your Sunday reading.

- Daniel Kaufman notes that the EU is on the verge of implementing new standards for transparency in oil extraction - while recognizing that big oil has fought the effort every step of the way in an effort to keep its activities secret. And Shaun Thomas discusses the no-knowledge zone set up around the Northern Gateway pipeline, as Nathan Cullen's questions within the review process revealed that the federal government hadn't so much as talked to First Nations or affected industries about the possible impact of an oil spill.

- But then, the Cons can at least claim consistency in their general preference for ignorance. And the sudden elimination of a low-cost, high-use library program from Prince Albert's federal penitentiary certainly fits into that worldview. Meanwhile, Frances Woolley asks some questions as to how economists should deal with the first data set from the National Household Survey since the Cons scrapped the long-form census.

- And in case there was any doubt why the Cons and the facts tend to end up on opposite sides of any issue, Randeep Ramesh points out that the numbers being thrown around by the U.K. Conservatives as the basis for attacks on social programs aren't any more plausible than the since-debunked ones used to justify austerity for austerity's sake.

- Haroon Siddiqui continues his criticism of the Cons' push toward temporary and disposable foreign workers, this time labelling Jason Kenney as the headhunter-in-chief for employers looking to drive wages down.

- Finally, Tabatha Southey nicely lampoons Fox News North's attempt to strongarm the CRTC into handing it mandatory subscriber funding:
(A)n ideologically right-wing news organization is asking a governmental regulatory body to force private businesses, in the form of television providers, to carry it in their basic packages – thus demanding that cable subscribers pay for a channel whether they want to watch it or not.

“And why does Sun News Network believe the CRTC should do this?” you might ask.
“Is this not the same Sun News Network whose vice-president, Kory Teneycke, complained in a 2010 commentary in the Sun chain’s newspapers that mandatory carriage was ‘tantamount to a tax on everyone’ with cable or satellite service?” You wonder, because you are very well read.

“Is it not a bit surreal that we should be forced to pay for a television station that devotes much of its airtime to complaining that we are forced to pay for another television channel, the CBC, which we watch in far greater numbers?” You demand to know, because you spend a lot of time thinking about Canadian broadcasting regulation.

Well, the Sun News representatives explained, the CRTC should grant them increasingly difficult-to-obtain mandatory carriage status because, without this government assistance, the network cannot survive as a business, and also because Canadian content is inherently good for us.

Just as there are no atheists in a foxhole, there are apparently no free-market capitalists in a financial black hole, and the people at Sun News cannot spread the blame for their poor ratings thin enough.

Saturday, April 27, 2013

Saturday Morning Links

Assorted content for your weekend reading.

- David Olive writes that the dangerous effects of long-term unemployment (caused in no small part by gratuitous austerity) are just as much a problem in Canada as in the U.S.:
With our persistent high levels of long-term unemployment, Canada is at risk of creating a new permanent underclass. The world’s economic policymaking elite, Ottawa’s included, hasn’t grasped that its enslavement to the “austerity chic” of severe cutbacks in government’s contribution to the economy is retarding the recovery it claims to be promoting. It’s like watching a grainy newsreel of Herbert Hoover’s lectures on the paramount virtue of balanced budgets, while banks, farms and barber shops go bust and the jobless rate soars above 30 per cent.
Long-term unemployment is an affliction for more than a quarter million Canadians who have been out of work for longer than 27 weeks. A great many of these 250,000-plus Canadians have spouses, and children and elderly parents to care for. So the total number of Canadians suffering the hardship of long-term unemployment is far higher than a quarter-million people.
...
With a low debt-to-GDP ratio that is the envy of our G-7 peers, Canada can comfortably afford to rebuild the country and prevent the emergence of a new permanent economic underclass.
It needn’t be repeated that decisions on austerity and stimulus have consequences. Or perhaps it does, since by our silent assent to faddish government austerity we are accepting “unnecessary human misery,” not in some faraway land but in our very midst. 
- David Climenhaga traces Alberta's 2011 labour code rewrite directly to corporate influence. And while Bob Weber reports on the province finally laying charges related to an oil spill from the same year, he also notes that the PCs' first response was to try to suppress the truth:
The Greenpeace report outlines examples which it says demonstrates how officials were more concerned with protecting the image of a besieged industry than protecting the public.
It points out the board's own reviewers recommended on Sept. 13, 2011, that a public inquiry into the spill be held — a recommendation that was squelched by the board's chief operating officer three weeks later.

The environmental group also suggests that the board misrepresented air-quality data from the Little Buffalo school, quoting a board statement that "based on the current data, there is no evidence that the air quality poses risk of long-term health impact at this time."
...
Greenpeace also pointed out contradictions between the board's report and what Energy Minister Ken Hughes was told privately. While the board concluded "contaminated water was not migrating off site," a May 6, 2011, briefing note to Hughes said "there are some exceedances of hydrocarbons downstream from the wetlands."

Finally, Greenpeace quotes a May 31, 2011, briefing note to then-premier Ed Stelmach that the group says contradicts assurances given to the public: "Full restoration of the localized area is unlikely," the briefing note says.
- Meanwhile, Dave Sims points out that Saskatchewan's regulatory system is in rather rough shape too - with no information available as to what injuries and deaths have taken place at which rural and northern sites for employers with a head office in a city.

- Travis Lupick notes that Christy Clark's parting smash-and-grab of British Columbia includes the destruction of a pharmaceutical watchdog which ensured better prices and outcomes for the province's health care system (at the expense of allowing big pharma's marketing to go unquestioned).

- Finally, Erin Weir suggests that most Canadian provinces are arriving by consensus at a 12% floor for corporate tax rates.

Friday, April 26, 2013

Musical interlude

The Blizzard - Piercing the Fog

Friday Morning Links

Assorted content to end your week.

- Sadly (if perhaps unsurprisingly), the Trudeau Libs' vote with the Harper Cons against civil rights has received relatively little notice compared to the two parties' attack ad posturing. But there's still plenty worth reading on the subject - including another post from pogge, a discussion led by David Ball, and Michael Harris' assessment as to the likely targets of Con-fueled hysteria in the years to come:
(W)ith S-7 the law of the land, some dark possibilities present themselves in this country.

The federal government already has established five Integrated National Security Enforcement Teams across Canada, most recently in Alberta. Those teams, made up of officers from the RCMP, CSIS and the Canada Border Services Agency, have identified Greenpeace as a group that might attack critical infrastructure.

Harper cabinet ministers have described environmentalists as radical extremists controlled by foreign elements. Add into the mix the fact that former First Nations chiefs like Terry Nelson and Dennis Pashe have appeared on Iranian television in a bid for closer relations with that country and a chance to describe their plight and ask yourself — what would happen if either group disrupted Canadian commerce in a peaceful protest?
...
When a prime minister’s favourite part of the justice system is the police, it is a proclivity that bears watching.
- But it should be obvious that anybody genuinely concerned about amoral actors interfering with a functional society should be focused elsewhere. For example, Matt Taibbi finds yet another example of jaw-dropping amounts of money being manipulated by bank insiders for their own personal advantage. Jason Fekete notes that the Cons’ perpetual cuts to the Canada Revenue Agency have allowed tax cheats to avoid paying tens of billions of dollars - while the "good news" in the story consists in part of debts being written off rather than collected. Terry Milewski exposes the latest effort by the Cons to turn the RCMP into a partisan political body, reporting to and protecting the governing party rather than the public. And Jason Markusoff reports on the Manning Centre’s attempts to strong-arm municipal representatives into serving as puppets for the developers who funded Manning in the first place.

- Meanwhile, Sheila Block proposes a public service budget (in contrast to the corporatist tomes we tend to see instead). And Tzeporah Berman and Steven Guilbeault point the way toward what we should be looking to develop as an alternative to market worship, noting that there’s plenty of room for agreement between the environmental and labour movements:
What we’ve realized is pretty simple – no one wins a race to the bottom, not workers, not wild species, and not communities. So cutting down every last tree, shipping out every last barrel of bitumen, catching every last fish in the ocean may fatten some offshore bank account, but it isn’t going to leave us with good jobs for our kids, healthy communities, or a productive environment.

Looking back, it may have all started in the woods, with a few furtive glances and a chance encounter or two, but unionists and environmentalists eventually came to understand that “environment” includes people too. So we sat down and broke bread (and a few other things) together and figured out a way forward in places like the Great Bear Rain Forest, northeast B.C. and the whole vast green boreal forest stretching across Canada. Despite our differences, we knew that the end result of successfully balancing ecosystem protection and economic development would be much more mutually satisfying than another photo op in a clearcut. 

Then another light went on. We looked at the colossal collective challenges facing our world -- like climate change -- and saw that this big black cloud could have a silver lining – if we were smart. Good jobs could be built out of new ways to make energy, new ways to conserve it, new ways to move people, and new ways to meet their need – in fact, all species’ need -- for clean air and clean water. Studies and real-world experience have shown that this approach has much stronger jobs potential than simply putting all our eggs in the export-raw-resources basket – in fact, as many as seven times more jobs for every dollar invested in things like developing renewable energy or improving energy efficiency instead of simply digging more sticky tar out of Alberta.

Together, we’ve been strategizing on how to put Canada out in front in developing and deploying these clean, green solutions. Some unions are investing directly in green solutions, such as through Cycle Capital Management, a venture capital firm supported in part by union dollars that is investing in cutting-edge products and services that help our environment. More broadly, we’re advancing a “jobs of the future are green” agenda through the Blue Green Alliance, which has become a powerful voice trumpeting the connection between action on a healthy environment and action on jobs. 

Now, to some folks in Ottawa, this may actually be seen as something of an unholy alliance. These folks haven’t quite got the message about where the world is heading when it comes to getting serious about sustainability. They hail more from the old “pillage and plunder” school and see anything that gets in the way of all-out exploitation of raw resources – and workers -- as weak-kneed. “You have to be tough,” they bark from the windows of their limos, “What’s a few caribou when jobs are at stake?” Except they don’t mean good pay-the-bills-and-buy-a-home-in-your-community jobs – they mean jobs at oil refineries in China and in bank executive suites in Toronto.

We’re on to them, though. We’ve seen how working wages – and working conditions -- fall where union membership declines. And we’ve seen how one environmental protection law after another is stripped away when governments decide that only the “invisible hand” of the market should pull the strings, leaving whole communities – human and natural – dangling by a thread. 
- And finally, Murray Mandryk writes that the profits flowing from Saskatchewan’s successful Crowns have forced even the Saskatchewan Party to acknowledge the useful contribution made by the public sector (even as try to sell off anything that isn’t tied down). But it would be all the better if Mandryk and others would recognize the obvious corollary of that reality: if our current Crowns are in fact serving the province well, then shouldn’t we be open to considering whether new ones might also serve a valuable purpose, rather than sneering at the mere mention of new proposals?

Thursday, April 25, 2013

On regressive choices

Yesterday, I offered a quick, off-the-cuff response to the Sask Party's decision to restrict municipalities in applying property taxes to commercial and industrial land. But let's look in a bit more detail at the warped economic theory Jim Reiter is spouting in defence of the move:
"A very, very small minority of municipalities have been using mill rate factors to, in my view, excessively charge commercial and industrial properties," Government Relations Minister Jim Reiter told reporters at the legislature this week.
... 
He noted that in some cases, such as with a pipeline, it would not be possible for a commercial or industrial property owner "to pick up and move" in response to high taxes.
"In rare instances - we prefer not to have to deal with this - but we need to ensure that there's equity out there," he remarked.
In a media release, the minister noted that most commercial and industrial property owners in the province pay higher municipal property taxes than those paid on agricultural and residential properties for delivery of many of the same municipal services.
"Setting this interim limit will be a first step toward fairer taxation among all municipal property tax classes going forward and focuses on the most extreme occurrences," Reiter said in the release.
Now, those of us who see some value in being able to collect taxes might see the fact that property taxes are easily enforced as a feature, not a bug. See for example Josh Barro:
Everybody hates property taxes because they are hard to avoid. But that's a good thing -- it means property taxes are relatively non-distorting. In fact, taxes on land are completely non-distorting: Raising them won't cause any reduction in the amount of land. Taxes on improvements do distort the economy (they discourage the construction of buildings) but not as much as some other taxes. After all, once a house exists, you can't easily move it in response to tax changes.
...
Local government can't be financed solely with property tax, but the choice of many states (especially California) to back away from property tax over the last four decades has been a mistake. Property taxes are an efficient and effective way to finance government, and we should learn to love them. 
But consistent with his party's anti-social philosophy, Reiter is actually making the argument that municipal property taxes should be limited through provincial intervention precisely because they're relatively difficult to avoid. (And never mind that in the case of, say, a pipeline, a property tax is probably the only way of recouping any social benefit whatsoever from land which mostly sits idle, fails to provide any local economic activity and creates a significant risk of environmental damage.)

Let's take Reiter's argument another step toward its logical conclusion though - applying the converse of his argument that barriers to tax avoidance are supposed to be a sign of a bad tax regime. By implication, that would suggest that taxes are to be paid by the suckers who can't shuffle assets across borders and corporate entities to avoid them - and that the Sask Party disapproves of any tax which doesn't allow for easy avoidance on the part of those who can afford it (while favouring only those taxes which can be evaded).

That in turn raises ample reason for concern about Reiter's declaration that the new limit on mill rates is only a "first step". The Sask Party has no qualms about giving more favourable treatment to (selected) businesses than it does to mere citizens. But Reiter is effectively threatening any municipality which applies the mirror image of that principle and looks to the businesses who see ongoing profits from a municipality's development to pay a dime more than the lowest mill rate charged to, say, a senior with a modest home and a fixed income.

In sum, Reiter is telling us that we may be in for some combination of provincially-mandated hikes to residential property taxes, cuts to business property taxes and/or cuts to municipal services, all in the interest of handing even more to the corporate sector at the hands of citizens. And we should be careful not to let the Sask Party drag the province down that road without a fight.