Wednesday, July 09, 2014

Wednesday Morning Links

Miscellaneous material for your mid-week reading.

- Anne Manne discusses how extreme wealth leads to narcissism and a lack of empathy, while pointing out that to merely recognizing the problem goes some way toward solving it:
Outside the lab, Piff found that the rich donated a smaller percentage of their wealth than poorer people. In 2011, the wealthiest Americans, those with earnings in the top 20%, contributed 1.3% of their income to charity, while those in the bottom 20% donated 3.2% of their income. The trend to meanness was worst in plush suburbs where everyone had a high income, and never laid eyes on a poor person. Insulation from people in need, Piff concluded, dampened charitable impulses.

Poorer people were also more likely to give to those charities servicing the genuinely needy. The rich gave to high-status institutions such as already well-endowed art galleries, museums and universities, while Feeding America, which deals with the nation’s poorest, got nothing.

These qualities are not set in concrete. "We’re not suggesting rich people are bad at all," said Piff, "but rather that psychological effects of wealth have these natural effects.’ It is, he said, a function of greater prosperity, rather than innate qualities of rich people.

Piff found that when shown images of children in poverty, the wealthy could behave more empathetically. Like the long campaign for the NDIS, which sensitised people to the plight of those with a disability or those caring for them, people can respond to good political leadership which primes them for generosity rather than meanness.
- And Darlena Kunha writes about the experience of poverty and income insecurity from the standpoint of a family which once believed itself to be beyond that risk:
The reality of poverty can spring quickly while the psychological effects take longer to surface. When you lose a job, your first thought isn’t, “Oh my God, I’m poor. I’d better sell all my nice stuff!” It’s “I need another job. Now.” When you’re scrambling, you hang on to the things that work, that bring you some comfort. That Mercedes was the one reliable, trustworthy thing in our lives.
...
The most embarrassing part was how I felt about myself. How I had so internalized the message of what poor people should or should not have that I felt ashamed to be there, with that car, getting food. As if I were not allowed the food because of the car. As if I were a bad person.

We’ve now sold that house. My husband found a job that pays well, and we have enough left over for me to go to grad school. President Obama’s programs — from the extended unemployment benefits to the tax-free allowance for short-selling a home we couldn’t afford — allowed us to crawl our way out of the hole.

But what I learned there will never leave me. We didn’t deserve to be poor, any more than we deserved to be rich. Poverty is a circumstance, not a value judgment. I still have to remind myself sometimes that I was my harshest critic. That the judgment of the disadvantaged comes not just from conservative politicians and Internet trolls. It came from me, even as I was living it.
- Kaylie Tiessen argues that Ontario shouldn't let a change in its credit outlook be used as a means to further trash the province's economy through austerity and tax slashing. And Madhavi Acharya-Tom Yew's report on the treatment of Canadian banks offers a compelling indication as to why we shouldn't take the ratings agencies seriously at all - as the same firms which consistently gave perfect ratings to what proved to be derivative time bombs are now downgrading the outlook for Canadian banks merely because they might have to stand on their own two feet.

- Meanwhile, Paul Krugman points out that inflation hysteria serves primarily to ensure that the wealthy benefit at the expense of everybody else.

- Finally, PressProgress questions just how much further the Canadian Taxpayers Federation wants to go in eliminating employment insurance - though I'd suspect that zero social safety net for anybody would be just fine for one of the most extreme anti-social organizations in the country. And Andrew Stevens studies the abuse of temporary foreign workers (and resulting decline in service-sector wages) in Saskatchewan.

Tuesday, July 08, 2014

Tuesday Night Cat Blogging

Surfacing cats.





Tuesday Morning Links

This and that for your Tuesday reading.

- Katrina vanden Heuvel criticizes the U.S. Democrats' move away from discussing inequality by in favour of platitudes about opportunity for the middle class. And while Matthew Yglesias may be correct in responding that the messaging change hasn't resulted in much difference in Democratic policy proposals, it's certainly significant when a political party makes the choice to take poverty and inequality off the table as a vital part of the argument for its policy consensus.

- Meanwhile, Stephen Elliott-Buckley reminds us that the 1% tends to get its way in policy debates in no small part because it exhibits solidarity often missing among other groups:
For centuries, the 1% were the nobility, the aristocrats, the old money, the patriarchy. Then Adam Smith pitched capitalism in his 1776 book Wealth of Nations, and liberated the entrepreneurs to join the blue bloods. Today, every January, corporate and government leaders from around the world – the people who literally rule the world – meet in the winter-wonderland of Davos, Switzerland, to launch the annual World Economic Forum. There, they plan the global agenda. This year’s sexy new idea was advancing “social entrepreneurialism.” That sounds so kumbaya, just like public-private partnerships, but it’s just spin for privatizing social services.

The World Economic Forum is just one of the most recent venues where the global elite show their solidarity with each other, and plan how to maximize shareholder wealth and minimize global social, economic and political equality. Beyond Davos, our rulers have also created a roadmap for undermining the democracy of nations through secret trade agreements like NAFTA, the Trans-Pacific Partnership, and CETA (the Comprehensive and Economic Trade Agreement). These agreements are designed to give right-wing governments the excuse to deregulate industries, privatize public services, and elevate shareholders’ and investors’ “right” to profit above the needs of society.
...
The member groups of progressive coalitions need to find ways of connecting their individual members to better support each other. And the coalitions themselves need to support each other. I believe such an effort at deepening and broadening solidarity has, so far, been lacking. Meanwhile, the 1% are deeply well-connected, from community chambers of commerce right up to the World Trade Organization. They’re all spouting the same spin and rhetoric on their members’ behalf, while we, the 99%, can often not get past “letterhead coalitions,” a term introduced to me by Amanda Tattersall, one of the founders of the Sydney Alliance in Australia. What good is it to have a coalition when the extent of union, or faith, or community organization activity is merely a letter of support?
- David Ball reports on this summer's Peoples' Social Forum - which looks like one promising effort to build connections and lay the foundation for ongoing activism.

- And in case there was much doubt there's still plenty to organize against, the CCCE lays bare its trade agenda - featuring its demand that the TPP be negotiated and implemented without public input in order to ensure closed-door "enforcement" of corporate priorities and at most "dialogue" for labour, the environment and anything else not profit-related.

- Finally, Jonathan Kay rightly criticizes the Cons' "punitive moral absolutism" when it comes to withholding needed health care from refugees. But as Emmett MacFarlane notes, the Cons always seem to find some way to sink even lower than their past precedents for callous inhumanity - and Robert Goguen did just that in lecturing a sex worker about her own gang rape.

Monday, July 07, 2014

Monday Morning Links

Assorted content to start your week.

- Stephen Hwang and Kwame McKenzie discuss the connection between affordable housing and public health and wellness:
In 2009, researchers followed 1,200 people in Toronto, Ottawa and Vancouver who were homeless or at risk of homelessness. It was found that they experience a high burden of serious health problems like asthma, high blood pressure and chronic obstructive pulmonary disease. They are also at high risk for conditions like depression and anxiety, and of going hungry.

There’s more. We know that housing in disrepair can lead to accidents, fires and infestations. That overcrowding can lead to infections. We also know that, if you develop an illness, it is more difficult to get better if you are homeless or live in a substandard home.

Finally, we know the cost of housing deeply affects our health. When it takes up a large percentage of our income, it can cause profound stress and crowd out things that are important for health like recreational activities, nutritious food and prescription medication.
...
We have international and Canadian research demonstrating the way forward. And if further help is needed, we are here along with many others, ready and able to work to implement solutions. The ingredients are all there. Now it’s time to demonstrate the vision and political leadership to make sure every single one of us has a decent place to call home. 
- Mariana Mazzucato challenges the theory that inequality correlates in any way to technological progress as a matter of economic theory rather than political choice. And David Pilling questions the use of GDP as a measure of economic development - with particular emphasis on the short-sighted picture it tends to produce.

- Meanwhile, Simon Tremblay-Pepin documents some of the direct effects of Quebec's gratuitous austerity. And Matt O'Brien highlights how austerity is turning what could have been a temporary crash into a permanent drag on development.

- And Paul Krugman traces that wilful economic destruction back to a theory insisting that interest rates should be set so as to "kept permanently depressed in order to curb the irrational exuberance of investors" - raising obvious questions as to why we would then set our economic policy based on the belief that the mood of those same investors is the primary goal to be pursued.

- Finally, we shouldn't be surprised to learn that the tar sands are poisoning Alberta wildlife and the First Nations who rely on it. But based on how petropoliticians have handled the health of tar sands victims in the past, we should be even less surprised if the only action that comes from the revelation is an end to Health Canada funding for exactly that type of research.

Sunday, July 06, 2014

Sunday Morning Links

This and that for your Sunday reading.

- Mark Taliano highlights the distinction between corporate and public interests (while pointing out that both military and economic policy are all too often based on the former). And Jamie Doward discusses how the perception that government is either unwilling or unable to serve anybody besides corporate masters is turning the next generation of UK youth away from politics:
The picture that emerges from an Ipsos MORI questionnaire completed by almost 2,800 pupils aged 11 to 16 is of a generation that expects little help from politicians and which resolutely believes that it will not have the same life prospects as those enjoyed by the one before.

The poll, conducted for the National Children's Bureau and which will be published this week, is the first of its kind carried out by Ipsos MORI, and suggests that today's young people are turning away from conventional politics. Only two in five (39%) agreed with the Labour leader, Ed Miliband, that the voting age should be lowered to 16. And only 13% would be certain to vote in a general election if they had the chance, a figure that rises to 15% among 15- to 16-year-olds.

Of those who would be eligible to vote in next year's general election if the voting age were reduced, 17% say they associate themselves with Labour while 9% opt for the Tories.
...

Growing disillusionment with Westminster politics may be linked to how Generation Next see their future. Fewer than two in five expect their lives to be better than it was for their parents (37%). In contrast, 70% of baby boomers believe they have had a better life than their parents. Ipsos MORI said the findings were consistent with a general downward shift in the proportion of people who feel their generation will have a better quality of life compared with their parents' generation.

Perhaps unsurprisingly given this trend, only 14% of Generation Next believes the government will do a good job in running the country in the year ahead. They also have a pessimistic view of how they are treated by the government, with less than half believing they are treated fairly.
- Meanwhile, Michael Geist sees the negotiation of the TPP (like so many other trade agreements) behind closed doors as compelling evidence that it wouldn't hold up to public scrutiny. And Emily Atkin discusses the latest example of the oil industry buying silence when it comes to any questioning of its activities, as the price for TransCanada's donation of a single rescue truck to the town of Mattawa included the town's agreement never to publicly question or comment on any of its operations.

- Haroon Siddiqui points out that the very nature of the temporary foreign worker program is anathema to Canada's proud legacy of welcoming immigrants to build futures as part of our culture:
It hit me on Canada Day that even the name, temporary foreign worker program, is un-Canadian. “Temporary” and “foreign” are the antithesis of long-standing Canadian immigration policy, the bedrock principle of which is that immigrants are selected to be permanent residents and future fellow-citizens.

The formula has served us well by minimizing the “us vs. them” undercurrent that charges relations between new arrivals and the rest of society. In our native and adopted land, the old and the new are in it together.

Canada studiously avoided Europe’s guest worker program, under which hundreds of thousands were imported in the expectation that they’d leave at the end of their work. Few did, creating a permanent underclass in Germany, France and elsewhere — and all the resentments that go with it.

We were never like the oil-rich Persian Gulf nations that allow employers to import temporary foreign workers, but not their families, pay dirt-poor wages and hold them hostage as indentured labour tethered to their master.

Now our temporary foreign worker program allows employers to import cheap foreign labour, without families, mostly for low-end jobs for short periods. The temps are tied to their employer who may mistreat them.
- And Andrew Longhurst points out that the "temporary" element of work applies to an increasingly large proportion of Canadian jobs in general - and proposes a few policy ideas to give workers a better chance of moving part precarious employment.

- Finally, Partnership for Strong Communities takes a look at yet more research showing that the availability of affordable and accessible housing has a significant effect on spreading opportunity - in this case for the cognitive growth of children.

Saturday, July 05, 2014

To dream fondly of the day when ads haunt our dreams

Heather Mallick's column about the public's willingness to sell out to the corporate sector for cheap unfortunately meanders off on a few too many tangents before reaching much of a point. But even if she'd connected with a truly incisive take, snark has nothing on Terence Corcoran - who goes to far as to whine that spam e-mails are "essential in a market economy", and to suggest that any legislation goes too far in regulating the digital equivalent of door-to-door sales.

Which leads to the question: exactly how many people - the marketing industry excepted - actually see the constant intrusion of advertisers as a net social good?

To be clear, there are some genuine reasons for concern about the anti-spam legislation in its present form. But it takes a truly fundamentalist consumerist to suggest that CASL's fundamental flaw is that it might allow people a moment's peace from the ever-expanding reach of the corporate sector.

And indeed, if anybody actually wants to test Corcoran's thesis as to the effect of advertising, surely the more likely conclusion is that we'd rather have less of it blasted at us - in person, on the phone, online and everywhere else - rather than succumbing to a future of an endless series of vacuum salesmen pounding on our doors forever.

[Edit: fixed wording.]

Saturday Morning Links

Assorted content for your weekend reading.

- Carol Linnitt observes that the Canadian public supports a shift from fossil fuels to cleaner energy by a 76-24% margin - even as they overestimate Canada's economic returns from oil and gas.

- Meanwhile, Alison takes a look at the spread of (primarily oil-funded) advertorials in Canadian media.

- Kate Heartfield writes that even if the Cons' cuts to refugee health hadn't crossed the line into unconstitutionality, we should still consider them to be unconscionable from a policy-making perspective:
Even if you come away unconvinced of the soundness of the court’s conclusion, it is hard to come away sanguine about the effects of this policy.

A policy that “shocks the conscience and outrages our standards of decency” is not defensible, politically and morally, even if it is legal. It is hard to argue against the court’s opinion that the government “has intentionally set out to make the lives of these disadvantaged individuals even more difficult than they already are in an effort to force those who have sought the protection of this country to leave Canada more quickly, and to deter others from coming here.”

This judgment might not be the final word on the constitutionality of refugee health care, but it’s a damning critique not only of a particular policy, but also of the way our government makes policy in general.
- And Jay Monaco notes that the U.S. Supreme Court's latest set of appalling decisions serves as evidence that we shouldn't lean too heavily on the judiciary to compensate for the regressive legislation and policy choices we tend to see in the absence of a strong labour movement:
SCOTUS, in other words, is always going to be antagonistic when the law itself is the problem. Legal protections like the weekend, the minimum wage, the eight-hour workday, the 40-hour week, and prohibitions against discrimination are of incalculable value. Perpetually orienting ourselves solely toward gratitude for past victory, however, deludes us into a self-defeating reliance on the law as our protector. Much more consistently, it has played the opposite role.

It wasn’t so long ago that former union president Ronald Reagan used the cloak of law to break the air traffic controllers’ strike, an act often seen as the opening salvo in the 30-year war on workers that continues to this day. Yet Reagan’s heavy-handedness was not innovative so much as it was a return to time-honored tradition. Concessions like the eight-hour workday were not granted out of some inherent justice found in the golden hearts of enlightened politicians. They were only granted when the torches were at the gates and those in authority had no other choice – and only then after well over a century of fighting.
- Finally, Matt Bruenig suggests that we shouldn't rely on employers or other private-sector actors to make choices about social development. And Hilary Wainwright points to Public Service International's call for a stronger public sector.

Friday, July 04, 2014

Musical interlude

James Dymond - Siren's Song

Friday Morning Links

Assorted content to end your week.

- Robert Reich discusses how a reasonable balance of economic and political power is necessary to any protection of meaningful personal freedom:
In reality, corporate free speech drowns out the free speech of ordinary people who can’t flood the halls of Congress with campaign contributions.

Freedom is the one value conservatives place above all others, yet time and again their ideal of freedom ignores the growing imbalance of power in our society that’s eroding the freedoms of most people.
...
The so-called “free market” is not expanding options and opportunities for most people. It’s extending them for the few who are wealthy enough to influence how the market is organized.

Most of us remain “free” in limited sense of not being coerced into purchasing, say, the medications or Internet services that are unnecessarily expensive, or contraceptives they can no longer get under their employer’s insurance plan. We can just go without.

We’re likewise free not to be burdened with years of student debt payments; no one is required to attend college. And we’re free not to rent a place in a neighborhood with lousy schools and pot-holed roads; if we can’t afford better, we’re free to work harder so we can.

But this is a very parched view of freedom.

Conservatives who claim to be on the side of freedom while ignoring the growing imbalance of economic and political power in America are not in fact on the side of freedom. They are on the side of those with the power.
- But in fairness, it's probably true that our corporate overlords have reason to fear even the slightest scrutiny - as Joe Friesen reports that Manitoba's investigation into employers using temporary foreign workers found labour violations in nearly half of the workplaces involved.

- Meanwhile, PressProgress exposes internal Department of Finance documents discussing how the Cons' income-splitting scheme runs directly contrary to the basic principles of tax policy - most notably the principle of minimizing interference with personal choices. And Annie Bergeron-Oliver reports that the cruel, unusual and unconstitutional nature of the Cons' cuts to refugee health care has now been confirmed (PDF) by the Federal Court.

- Bryce Covert points out that contrary to the usual anti-wage spin, U.S. states with increasing minimum wages are actually generating more job growth. 

- Finally, Aaron Wherry rightly questions why the Prime Minister has the sole discretion to schedule by-elections. But I'd think that in the spirit of fixed general election dates as a means of allowing for greater certainty for parties in candidates, there's reason not to trigger by-elections immediately upon a vacancy either. Instead, wouldn't it make sense to have fixed by-election dates available at three- or six-month intervals since the previous general election, with all vacancies generated in that time period then filled at once?

Thursday, July 03, 2014

Thursday Morning Links

This and that for your Thursday reading.

- Ann Robertson and Bill Leumer respond to Joseph Stiglitz by pointing out that some of the inequality arising out of capitalism has nothing to do with rules further rigged in favour of the wealthy:
Although there is certainly significant substance to Stiglitz’s argument – policy decisions can have profound impacts on economic outcomes – nevertheless capitalism is far more responsible for economic inequality because of its inherent nature and its extended reach in the area of policy decisions than Stiglitz is willing to concede.
To begin with, in capitalist society it is much easier to make money if you already have money, and much more difficult if you are poor. So, for example, a rich person can buy up a number of foreclosed houses and rent them out to desperate tenants at ridiculously high rates. Then, each time rent is paid, the landlord becomes richer and the tenant becomes poorer, and inequalities in wealth grow.
More importantly, at the very heart of capitalism lies an incentive that leads to the increase of inequalities. Capitalism is based on the principle of competition, and businesses must compete with one another in order to survive. Each company, therefore, strives to maximize its profits in order to achieve a competitive advantage. For example, they can use extra profits to offset lowering the price of their product, undersell their opponents, and push them out of the market.
But in order to maximize profits, businesses must keep productive costs to a minimum. And a major portion of productive costs includes labor. Consequently, as a general rule, in order for a business to survive, it must push labor costs to a minimum.
...
Capitalism is a way of life, and for that reason it generates its own peculiar culture and world view that envelopes every other social sphere, a culture that includes competition, individualism, materialism in the form of consumerism, operating in one’s self-interest without consideration for the needs of others, and so on. This culture infects everyone to one degree or another; it is like an ether that all those in its proximity inhale. It encourages people to evaluate one another according to their degree of wealth and power. It rewards those who doggedly pursue their narrow self-interests at the expense of others.
The culture of capitalism, because of its hyper individualism, also produces an extraordinarily narrow vision of the world. Viewing the world from an isolated standpoint, individuals tend to assume that they are self-made persons, not the products of their surrounding culture and social relations. So the rich assume that their wealth has been acquired through their personal talents alone, while they see those mired in poverty as lacking the ambition and willingness to work hard. People are unable to see the complexities underlying human behavior because of the atomization of social life.
...
It is in this more subtle way that capitalism induces growing income inequalities. Because of their intensely competitive environment, politicians are more vulnerable to this capitalist culture than most. Capitalist culture engenders a mindset among politicians that leads them to craft public policies in favor of the good people, the rich and powerful, and turn their backs on the poor or punish them with mass incarceration.  They think it entirely natural to accept money from the wealthy in order to fund their re-election campaigns. And the more the inequalities in wealth grow, the more this mindset blinds politicians to the destructive implications of these “natural” decisions. 
- Meanwhile, Mark Serwotka discusses how privatized social services in the UK are predictably resulting in the public paying more to provide less service to recipients. And Stuart Trew and Scott Sinclair write that the next generation of trade deals will only further entrench corporate power at the expense of mere people.
 
- Jordan Press reports on Canada's ineffective response to tax evasion as a prime example of how the Cons are going easy on those who need and deserve it least - as a lack of CRA resources is resulting in hundreds of billions of dollars being moved offshore and costing the public billions in revenues.

- David Dayen warns that ineffective regulation is leading to yet another financial bubble, this time in capital markets.

- Finally, Humera Jabir writes that the Cons' tinkering with the temporary foreign worker program isn't doing anything to prevent the worst abuses of powerless employees. And the Alberta Federation of Labour points out that the TFWP is still being used to slash wages in half compared to the market rate for Canadian workers.

New column day

Here, contrasting the NDP's hard-fought Regina nomination elections against the stories of Paul Manly, Chris Rendell, and the apparent trend of federal and provincial NDP candidates being disqualified from seeking nominations for entirely insufficient reasons.

For further reading...
- The Leader-Post reported on the nomination victories by Erin Weir in Regina-Lewvan and Nial Kuyek in Regina-Qu'Appelle here. And for a couple of examples of Weir in particular making important points which don't entirely match the NDP's party line both provincially and federally, see his challenge to the cult of small business and his disclaimer-laden Commonwealth commentary on resource royalties and employment in Saskatchewan.
- Manly told his story here, while his past comments seeking the safe return of his father and challenging the NDP to do more in the effort are available here and here. [Update: And there's some response from party officials in Susana Mas' report, though the question of whether the NDP has rejected some candidates in the past on stronger grounds has little to do with whether it was justified in doing so with Manly.]
- Finally, CBC reports on Rendell's rejection alongside the recruitment of Bev Harrison here.

Wednesday, July 02, 2014

Wednesday Morning Links

Miscellaneous material for your mid-week reading.

- David Atkins highlights Gallup's latest polling showing that U.S. trust in public institutions continues to erode. And Paul Krugman notes that there's reason for skepticism about the snake oil being peddled as economic policy in order to further enrich the already-wealthy:
Why, after all, should anyone believe at this late date in supply-side economics, which claims that tax cuts boost the economy so much that they largely if not entirely pay for themselves? The doctrine crashed and burned two decades ago, when just about everyone on the right — after claiming, speciously, that the economy’s performance under Ronald Reagan validated their doctrine — went on to predict that Bill Clinton’s tax hike on the wealthy would cause a recession if not an outright depression. What actually happened was a spectacular economic expansion.

Nor is it just liberals who have long considered supply-side economics and those promoting it to have been discredited by experience. In 1998, in the first edition of his best-selling economics textbook, Harvard’s N. Gregory Mankiw — very much a Republican, and later chairman of George W. Bush’s Council of Economic Advisers — famously wrote about the damage done by “charlatans and cranks.” In particular, he highlighted the role of “a small group of economists” who “advised presidential candidate Ronald Reagan that an across-the-board cut in income tax rates would raise tax revenue.”
...
(H)ow can you justify enriching the already wealthy while making life harder for those struggling to get by? The answer is, you need an economic theory claiming that such a policy is the key to prosperity for all. So supply-side economics fills a need backed by lots of money, and the fact that it keeps failing doesn’t matter.

And the Kansas debacle won’t matter either. Oh, it will briefly give states considering similar policies pause. But the effect won’t last long, because faith in tax-cut magic isn’t about evidence; it’s about finding reasons to give powerful interests what they want.
- And on the subject of corporate capture, Alan Pyke reports that Michigan's idea of making prison food services more efficient has involved hiring a private contractor which doesn't seem interested in actually feeding anybody. And Jenny Uechl points out Kinder Morgan's sweetheart deal from the National Energy Board which is allowing it to force the public and to foot the bill for a nine-figure pipeline application - from which it would of course claim the profits.

- Richard Wilkinson and Kate Pickett document (PDF) the role of unions in working toward greater equality (h/t to James Bloodworth), while reminding us what role we should expect unions, workers and corporations to play in a healthy society:
Companies have two functions. One is to produce the goods and services which we all need, but the other is to concentrate wealth and power among top executives and generate profits for shareholders. We need the first of these, but not the second. The second has been the mainspring of rising inequality and has provided powerful perverse incentives to top management.

Increasing employee representation on company boards and expanding the share of the economy made up of mutual, cooperative and employee owned companies would begin to tackle growing inequality and the concentration of wealth at the top. More democratic companies tend to have much smaller pay ratios among their staff.
...
As well as smaller income differences and good economic performance, cooperatives, employee owned companies and others in the stakeholder business sector have other advantages. Community life has weakened substantially in rich countries over the last generation but, as Oakeshott remarks, an employee buyout can turn a company from being a piece of property into a community¹. Perhaps a stronger sense of community at work could replace the sense of community that has declined in residential areas.  It is also likely that less hierarchical structures at work could begin to change the experience of work – making it possible for more people to gain a sense of self-worth and of being valued from their employment. Certainly, a sense that you don’t have control over your work, of unfairness, or an ‘effort-reward imbalance’, have each been linked to worse health and wellbeing.

The scales of top pay and of tax avoidance are two indications of how problematic the mismatch between profit seeking and the public interest can be. Other indicators include corporate-funded opposition to scientific evidence of harm associated with company products, such as the role of fossil fuel companies opposing climate science, the manipulation of regulatory bodies set up to safeguard the public interest, and the purchase of political influence on a scale which threatens the effective functioning of democratic institutions.
- Finally, Denis Campbell interviews John Ashton about the importance of greater equality as a matter of public health. And Faiza Shaheen writes that we can't have sustainable development without challenging inequality.

Tuesday, July 01, 2014

Tuesday Night Cat Blogging


Playtime cats.




Tuesday Morning Links

This and that for your Tuesday reading.

- Jessica McDiarmid reports on the hazardous materials being shipped by rail across North America - and it's particularly sad that Canadians can only learn about the risks being imposed on us through a U.S. guide. But lest we be under any illusions that our neighbours have an enviable record in managing their own risks, Claire Moser reports that even identified high-risk oil and gas wells in the U.S. aren't being inspected.

- And of course, that figures to have much to do with the fossil fuel industry's domination of politics on both sides of the border. Which brings us to Murray Dobbin's take on the need to challenge petropolitics and the oil barons who control them:
One of the major political factors preventing serious consideration of major and rapid policy changes is the sheer power of the fossil fuel industry. Unimaginable wealth translates into unimaginable power worldwide. To imagine bringing the industry to heel in a serious effort to slow climate change, we have to imagine treating the industry like we eventually treated the tobacco industry: as an existential threat to human health. For decades the tobacco giants exerted so much political influence they were virtually untouchable. To the extent that this changed (it is obviously still a health scourge especially in the developing world), it changed because the notion of corporate "rights" was successfully challenged.

Multiply the impact of the tobacco industry by 1,000 and you have some idea of how difficult it will be to escape the political and social conventional thinking that protects the oil "industry" from rational policy. Indeed part of that conventional thinking is seeing the giant corporations involved as just another industry. This actually serves to protect this sociopathic monster because we have rules governing industries and the individual companies that make them up. Companies are "citizens" with rights (thanks to our Charter) and they live forever. They have literally unlimited money to lobby governments for continued subsidies ($2 billion yearly from Ottawa), and tax breaks against subsidies for renewables which could save the planet. Even though 97 per cent of climate scientists agree about climate change, these corporations have the power to trash science and sow doubts about global warming.

The energy giants are protected by rogue governments like those in Alberta and Ottawa. They are permitted to take as much of the stuff out of the ground as fast as they can ship it and sell it, regardless of the global consequences. Like no other sector of the economy (except perhaps nuclear power) they are allowed to externalize hundreds of billions -- possibly trillions -- in costs they should be paying: air and water pollution costs, health costs, the costs associated with distorting the rest of the economy, the cost of new roads and bridges and freeways and paved-over farm land. We refuse to tax it to cover those costs, and that means ridiculously low prices and little incentive to wean ourselves from its pernicious and deadly effects.
- And in keeping with Dobbin's proposal for public ownership in the resource sector, Paul Krugman recognizes the absurdity of criticizing ideas merely because they've existed for some time. (Which of course goes doubly for ideas which have proven to be smashing successes when implemented in full.)

- John Oliver suggests that corporations should bear the burdens facing individuals if they expect to share in the rights that properly apply to people:



- Finally, Rick Salutin sees Canada Day as the perfect time to reflect on the importance of citizenship - and to question why the Cons are so eager to grant themselves power to take it away.

Monday, June 30, 2014

Monday Morning Links

Miscellaneous material for your Monday reading.

- Benjamin Shingler reports on the push for a basic annual income in Canada. And Christopher Blattman notes that cash serves as a valuable treatment for poverty wherever one diagnoses the disease:
The poor do not waste grants. Recently, two World Bank economists looked at 19 cash transfer studies in Latin America, Africa and Asia. Almost all showed alcohol and tobacco spending fell or stayed the same. Only two showed any significant increase, and even there the evidence was mixed.

You might worry handouts encourage idleness. But in most experiments, people worked more after they received grants.

You might also worry that the poorest of New York are different. The average person in Uganda is impoverished; it’s easy to believe he would make good decisions with cash. But a homeless person in New York is not average. Substance abuse is pervasive. Maybe panhandlers here are different from the global poor.

I used to believe this. Now I’m not sure. A few years ago, I started working in Liberia’s urban slums. My colleagues and I sought out men who were homeless or made their living dealing drugs or stealing. Many abused alcohol and drugs. We tested different programs in a randomized trial of a thousand men. One thing we tried was giving out $200 in cash.

Almost no men wasted it. In the months after they got the cash, most dressed, ate and lived better. Unlike the Ugandans, however, whose new businesses kept growing, the Liberian men were back where they started a year later. Two hundred dollars was not enough to turn them into businessmen. But it brought them a better life for a while, which is the fundamental goal of any welfare program. We also tested a counseling program to reduce crime and violence. It worked a little on its own, but had the largest impact when combined with cash.
- Mark Esposito writes about the connection between growing inequality and the loss of opportunity for young workers who don't come from privileged backgrounds:
(W)hatever the main factor underpinning high youth unemployment, income inequality undoubtedly exacerbates the problem. Simply put, many jobs – particularly the most lucrative ones – are available almost exclusively to young people from wealthy backgrounds.

In the UK, for example, only 7% percent of children attend private schools. But roughly half of the country’s chief executives, and two-thirds of its doctors, have been privately educated . This trend is expected to persist, with the next generation of doctors likely to be born into families that rank among the wealthiest 20% of the population.

There are several possible reasons for this pattern. For starters, the highest-status positions require the most prestigious educational background – and that costs money. Moreover, many internships – a prerequisite for the most attractive jobs – are unpaid, making them unfeasible for graduates whose families cannot afford to support them.

But money is not the only requirement. In many cases, sought-after jobs and internships – and even admission to top educational institutions – are far more accessible to those who are within the employers’ personal or professional network. When the job market rewards whom you know more than what you know, young people with well-connected parents have an obvious advantage.
...
With financial status serving as the key determinant of opportunities, young people from poorer backgrounds are becoming increasingly discouraged – a situation that can lead to social unrest. Unless all young people have legitimate prospects of improving their social and economic status, the gap between rich and poor will continue to widen, creating a vicious cycle that will be increasingly difficult to escape.

The good news is that efforts to alleviate youth unemployment will reduce income inequality, and vice versa. The society that emerges will be more stable, unified, and prosperous – an outcome in which everyone, rich or poor, has a stake.
- Ann Robertson and Bill Leumer discuss the need for unions to build and maintain a strong political movement which goes beyond the boundaries of any one political party. And Josh Israel highlights a few of the U.S. labour groups who are moving beyond traditional organizational models.

- Finally, Michael Harris summarizes Stephen Harper's legacy, while raising important questions about whether Canadians want to be defined by tyranny:
The new prime minister ushered in his majority government with a performance that both confirmed and contradicted some of his earlier pronouncements. It was true, as he once predicted, that the country was becoming unrecognizable through fundamental changes pushed through in his majority. Many of them had to do with the effective deconstruction of Canada’s democratic institutions. It was untrue — outrageously so — that he would be the prime minister of all Canadians, as he claimed after his election in 2011.

As the country quickly discovered, Harper was the Great Divider, pitting one group of citizens against another, a tactic singled out and criticized by former prime minister Joe Clark. He was the champion of a voracious corporate sector, the practitioner of bully-boy diplomacy, and the generous patron of the police and security establishment.
...
It is no accident that Canadian politics has been infected with Republican tactics, from vicious attack ads to the stealthy and illegal use of robocalls to undermine democracy. It is no mystery that Canadians have seen their pensions diminished, have lost mail delivery, veterans offices and libraries, and after 2017, face cuts in support of medicare. Society is not Harper’s client — corporations and business elites are. In the interest of those groups, he has even used the country’s security establishment to spy on Canadians for the high crime of opposing his policies.

Harper once advised people to not listen to what a politician says, but to watch what he does. Beyond the clouds of spin and public relations thrown up by his government’s communications machine sits a truth very different from the image of ‘strong and stable government’.

The lasting impact of Stephen Harper’s time in public life will be a diminished Parliament, toxic politics, and a compromised electoral system that will make every citizen smaller … the legacy of tyrants.

Sunday, June 29, 2014

Sunday Morning Links

This and that for your Sunday reading.

- Thomas Frank interviews Barry Lynn about the U.S.' alarming concentration of wealth and power. Henry Blodget thoroughly rebuts the myth that "rich people create jobs". And David Atkins goes a step further in discussing how hoarded wealth hurts the economy in general - with a particularly apt observation about how inequality erodes our social connections:
It is not an accident that trust in major institutions has declined on a linear track with rising inequality. Study after study has shown that trust in our fellow citizens and in institutions at large are dependent on the level of inequality and corruption in society. This stands to reason: people know when they're getting the short end of the stick, even if they can't agree on why. Conservatives wrongly blame government spending and regulation. Liberals rightly blame disproportionate rewards going to the very wealthy. Not surprisingly, then, high levels of inequality also create strong partisanship within society as politicians and pundits alike ratchet up the rhetoric of blame. As both secular and religious institutions seem equally powerless to address increasing economic and social insecurity, the social fabric begins to fray and people tend to self-segregate in many ways, including politically. Economic tension and social tension tend to go hand in hand.
- And David Sirota writes about the effect of corruption on policy-making - with some all-too-familiar priorities looking like the more sure sign that political decisions are being made based on cronyism rather than the public interest:
One analysis comes from researchers at Indiana University and University of Hong Kong. They compared data from 25,000 convictions in public corruption cases with state spending data. As Governing magazine reports, the researchers document that the most corrupt states like Tennessee “tended to spend money on construction, highways, and police protection programs, which provide more opportunity for corrupt officials to use public money for their own gain.” Governing adds that those “states spend less on health, education, and welfare, which provide less opportunity for officials to collect bribes.”
- Meanwhile, Eric Bombicino wonders whether we're letting our public sector get slashed precisely because it does its job effectively:
(A)pathy, like happiness or love or suicide, is a complex thing with many sources, but based on my highly scientific process of talking to people at parties and coffee shops over the last two weeks, I’ve noticed a particular sort of apathy emerge:
 
I call it, “things are working” apathy.
 
“Look man, democracy is working for me, my garbage gets picked up, roads are in decent repair, and I can walk into a hospital and get an operation in a relatively short period of time: things are working.” Fair point, and an interesting one: the success of democracy has afforded some the luxury of apathy.
...
Over the weekend, an old high school buddy, after notifying me of his apathy because “things are working,” took me through a lengthy diatribe on the one political viewpoint he does hold: how much his small business pays in taxes. After this riveting session on payroll taxes and deductibles explained in mind-numbingly unnecessary detail, I asked him what level of taxation he would find fair. 
 
He repeated his earlier point: it needs to be lower, the government “takes” (read: confiscates) too much of his money. I then pointed out that since he wanted lower taxation across the board, he would want less government and government services. A perfectly defensible position…if you want less government.
 
He said he loves those things the Canadian government provides: healthcare, education, infrastructure, the social safety net. (In fact, they all play a role in the foundation of his apathy: that “things are working.”) 
 
We then stared at each other for a long time. He took a sip of his drink. And then repeated he was paying too much in taxes.
 
I found this fascinating. He didn’t want less government; he didn’t see small government as equaling a bigger economy. He simply wanted lower taxes. Full stop. No belief system or ideology is at play here; just a void of ignorance.
 
The irony here is plainly cruel. This void of ignorance created by his contentment with how “things are working” motivates him to want to destroy those very things.
- But Stephen Pimpare notes that upwards of a third of U.S. households have faced poverty in just a three-year span from 2009 to 2011, meaning that there isn't much distance between a large number of people and the worst effects of corporatist policy. Which makes it all the more inexplicable that policy based on hatred of the poor still seems to be the norm - as Kim Redigan points out in response to Detroit's mass disconnections of people from their municipal water source.

- Finally, Edward Greenspan and Anthony Doob rightly lambaste the Harper Cons for their nonsensical crime and justice policies. And Hannah Spray's story on Trevor Machiskinic offers a compelling example where mandatory punishments and inflexible precedents lead to an obviously flawed result based on the background to an offence.

Saturday, June 28, 2014

Saturday Morning Links

This and that for your weekend reading.

- Joseph Stiglitz wraps up the New York Times' series on inequality by summarizing how the gap between the rich and the rest of us developed, as well as how it can be reduced:
The American political system is overrun by money. Economic inequality translates into political inequality, and political inequality yields increasing economic inequality. In fact, as he recognizes, Mr. Piketty’s argument rests on the ability of wealth-holders to keep their after-tax rate of return high relative to economic growth. How do they do this? By designing the rules of the game to ensure this outcome; that is, through politics.

So corporate welfare increases as we curtail welfare for the poor. Congress maintains subsidies for rich farmers as we cut back on nutritional support for the needy. Drug companies have been given hundreds of billions of dollars as we limit Medicaid benefits. The banks that brought on the global financial crisis got billions while a pittance went to the homeowners and victims of the same banks’ predatory lending practices.
...
We need not just a new war on poverty but a war to protect the middle class. Solutions to these problems do not have to be newfangled. Far from it. Making markets act like markets would be a good place to start. We must end the rent-seeking society we have gravitated toward, in which the wealthy obtain profits by manipulating the system.

The problem of inequality is not so much a matter of technical economics. It’s really a problem of practical politics. Ensuring that those at the top pay their fair share of taxes — ending the special privileges of speculators, corporations and the rich — is both pragmatic and fair. We are not embracing a politics of envy if we reverse a politics of greed. Inequality is not just about the top marginal tax rate but also about our children’s access to food and the right to justice for all. If we spent more on education, health and infrastructure, we would strengthen our economy, now and in the future. Just because you’ve heard it before doesn’t mean we shouldn’t try it again.

We have located the underlying source of the problem: political inequities and policies that have commodified and corrupted our democracy...Widening and deepening inequality is not driven by immutable economic laws, but by laws we have written ourselves.
- And Carol Goar writes that U.S. municipal governments are beginning to fill the vacuum left by a dysfunctional federal system when it comes to boosting wages and reducing inequality.

- Meanwhile, Susie Cagle discusses the need for unions and workers to seek each other out in adapting to new forms of employment. And Jordan Brennan reminds us of the role the labour movement played in developing Canada's middle class, while recognizing that it figures to be all the more important in countering more sophisticated corporate wealth extraction schemes:
While many opponents of the labour movement readily concede that unions played an important historical role in elevating the conditions and compensation of work, this concession is invariably followed by the assertion that today’s unions are an impediment to economic progress. A brief encounter with the facts suggests otherwise.

Average hourly earnings (adjusted for inflation) are a good approximation for the level of prosperity in a society. In Canada, this metric closely tracks union density over the past century. Between 1910 and 1940, union density grew modestly and hourly earnings grew by 43 per cent. Between 1940 and 1977, density more than doubled and hourly earnings tripled. Between 1977 and 2012, density declined and hourly earnings stagnated, rising a paltry three per cent.
...
Using econometric techniques, we can determine what impact a change in unionization has on the national wage bill, and hence on average annual per person earnings. It turns out that for every percentage point change in unionization (up or down), the bottom 99 per cent of the Canadian workforce sees their annual income adjusted by nearly $500.

This implies that if unionization were to be halved from its current level — falling from 32 to 16 per cent — resulting, perhaps, from a dramatic change in labour laws of the kind proposed by conservative politicians in multiple jurisdictions, average incomes for the bottom 99 per cent of the workforce would decline from $48,062 to $40,560. That’s a 16 per cent drop.

Why? As the ranks of organized labour swell and collective bargaining pushes up labour compensation, corporate earnings margins are squeezed and the corporate profit share of national income is reduced, which leaves less firm revenue for executive compensation and dividends. Weaker unions, by contrast, translate into stagnant wages and provide the opening for increased executive compensation, plush dividends and heightened inequality.
- On the subject of wage suppression mechanisms, the Globe and Mail and David Macdonald both argue that we should be encouraging permanent immigration rather than following the corporate preference for easily-exploited temporary foreign workers. And Renata D'Alesio reports that the Cons' tough talk about cracking down on abusive employers has been based on zero information as to which employers have actually violated labour laws. 

- Finally, Lana Payne notes that Peter MacKay's latest misogynist eruptions are just the tip of the iceberg when it comes to sexism in politics - particularly under a Con government determined to squelch any discussion of sex and gender equality.

Friday, June 27, 2014

Musical interlude

Ronski Speed feat. Lucy Saunders - Rise Again (Omnia Remix)

Friday Morning Links

Assorted content to end your week.

- Paul Krugman offers a response to the assertion that accumulated wealth should be considered as costless capital:
(I)f there’s one thing I thought economists were trained to do, it was to be clear about opportunity cost. We should compare accumulation of dynastic wealth with some alternative use of resources – not assume, as Mankiw in effect does, that if not passed on to heirs that wealth would simply disappear. Maybe he’s assuming that the alternative would be riotous living by the current rich, but that’s not a policy alternative.

In fact, what we’re really talking about here is taxation of wealth., and the question is what would happen to that revenue versus what happens if the rich get to keep the money. If the government uses the extra revenue to reduce deficits, then all of it is saved – as opposed to only part of it if it’s passed on to heirs. If the government uses the revenue to pay for social insurance and/or public goods, that’s likely to provide a lot more benefit to workers than the trickle-down from increased capital.

The point is that you can only justify Mankiw’s claim that inherited wealth is necessarily good for workers by insisting that the government would do nothing useful with the revenue from inheritance taxes. I’d call that assuming your conclusions; in any case, it’s a claim that deserves to be made openly, not smuggled in on the pretense that you’re just doing economic analysis.
...
(C)onservative economists are well aware of the danger of “regulatory capture”, in which public institutions are hijacked by vested interests, yet blithely dismiss (or refuse even to mention) the essentially equivalent problem of democratic institutions hijacked by concentrated wealth. I take regulatory capture quite seriously; but I take plutocratic capture equally seriously. And this is not an issue you can deal with by claiming that the benefits of capital accumulation trickle down to workers.
- And it's worth noting that precisely the same argument applies to tax cuts or privatization of services promoted on the basis that any good done by the public sector doesn't count, while anything measurable done by the private sector is good. Which brings us to PressProgress' debunking of an inane C.D. Howe Institute report which purports to show the importance of private-sector investment, but in fact proves nothing other than that profiteers will indeed make money off of public services if handed the opportunity to do so.

- Meanwhile, Mike Marqusee discusses what happens when vital interests are left in the hands of the corporate sector by pointing out prime examples of Big Pharma holding patients' lives hostage in the pursuit of disproportionate profits. And Roger Annis looks in detail at how a combination of corporate greed and negligent regulation killed 47 people in the Lac-Mégantic rail explosion.

- Ricardo Acuna offers up a well-deserved "I told you so" to a government which is now backtracking on a P3 scheme which can't be seen as remotely palatable no matter how the PCs cook the numbers. And of course, Saskatchewan citizens will want to file the experience away for future reference:
In 2007...the Canadian Union of Public Employees contracted economist Hugh Mackenzie to conduct an in-depth review of the Alberta government’s plans to build 18 new schools as P3s. What Mackenzie found was that the P3 would cost so much more, that building in the traditional way would have allowed the government to build 10 more elementary schools for the same amount of money. Likewise, a 2013 paper published by University of Toronto professors Matti Siemiatycki and Naeem Farooqi in the Journal of the American Planning Association found that using P3s adds, on average, 16 percent to the cost of infrastructure projects. There have been similar studies, reports and articles released over the past 10 years from the Parkland Institute, the Canadian Centre for Policy Alternatives, academics from around the world and numerous other organizations and unions.

Despite all this information, the Alberta government has held steadfast in its defence of P3s, and in its policy of defaulting to P3s for infrastructure projects. They have claimed all along that this method saves money, but they have never provided a shred of evidence that this is the case. What P3s actually do is facilitate the transfer of public money and private infrastructure to their friends in the private sector, padding their profit margins and bottom lines at our expense.

Now, for the first time ever, the government has admitted that building these schools through a P3 would cost more and is therefore not a good use of public dollars. Once again, however, we will not be allowed to see the full details of the accounting and calculations that led to this assessment. You can be certain that if the government is publicly owning the $14 million extra costs and actually backing off the P3 because of it, the real figure is significantly higher. Using Siemiatycki and Farooqi’s 16-percent figure, for example, would result in the traditional procurement method costing some $78 million less than the P3.
- Finally, Janelle Vandergrift writes that the familiar right-wing refrain of "just get a job!" is utterly counterproductive as a response to poverty.

Thursday, June 26, 2014

Thursday Morning Links

This and that for your Thursday reading.

- Harry Stein discusses how government policy is currently designed to exacerbate inequality by subsidizing the concentration of wealth:
This issue brief puts aside the question of whether new policies, such as a global wealth tax, should be enacted to reduce economic inequality. Instead, it explores two existing policies that actually subsidize wealth inequality. First, reduced tax rates on capital gains and dividends increase the after-tax rate of return on wealth, which makes it more likely that the rate of return on capital will exceed the overall economic growth rate. Second, capital gains are never subject to the income tax at all if the investor dies, which subsidizes wealth concentration within a family dynasty.
...
American wealth is concentrated within the richest families at levels not seen since the 1920s, and the American people should ask whether our government should incur roughly $2 trillion in deficits over the next 10 years for two policies that subsidize wealth inequality. To start answering that question, the public benefits from these subsidies should be weighed against their fiscal cost, as all spending programs and tax expenditures should be. But even if these policies do have some merit, perhaps there are other ways to spend $2 trillion that deliver equal or greater public benefits without subsidizing inequality to such a dramatic extent.
- And Tax Justice points out that even the IMF is beginning to acknowledge that tax evasion (and the tax havens who facilitate it) contribute to poverty and inequality - particularly in the countries which can least afford to have revenue siphoned off.

- Les Whittington reports that Natural Resources Canada is fully aware of the catastrophic economic and health consequences of climate change (despite the Cons' desperate attempts to ignore the facts). And Chris Mooney notes that even in the U.S. where industry-funded denialism is at its strongest, there's relatively little disagreement on the need to prevent those consequences.

- Meanwhile, Robyn Benson sums up how the Cons' approval of Northern Gateway was based entirely on their selective listening - with Enbridge receiving privileged access, and any dissenting voices treated as traitors. And Eden Robinson writes about the increasing outrage among the people who were left out.

- Harsha Walia observes that all of us are affected by the temporary foreign worker program (along with the Cons' other regressive immigration policy). And Tamsyn Burgmann reports on one of the many loopholes left open by the Cons (in this case with an assist from NAFTA).

- Finally, Laurie Penny rightly recognizes that the fight against homelessness should involve ensuring that people have shelter - not the installation of spikes to clear out more-privileged areas.

New column day

Here, on how personal and institutional stress make it more difficult for people to defend their interests - and on the need to respond to political strategies increasingly aimed at exploiting that principle to reduce public participation.

For further reading...
- Again, Chris Mooney discussed the effect of stress on voter turnout here. And here's a reminder that the desire to suppress voter participation tends to be the result of underlying discrimination.
- See here, here and here for just a couple of the many reports on the devastating connection between poverty and personal stress.
- And without going through the far-too-long list in detail, here are reminders of the attacks we've come to expect on labour unions and environmental groups to prevent them from carrying out their work.

Wednesday, June 25, 2014

Wednesday Morning Links

Miscellaneous material for your mid-week reading.

- Gar Alperovitz suggests in the wake of Thomas Piketty's Capital in the Twenty-First Century that it's long past time to reconsider who controls capital - and make a concerted effort to democratize that control:
The name of the game — Piketty’s book fairly screams it — is capital: who gets to own it, benefit from it and derive political power from it. Accordingly, it may be of some interest to note that in significant part because of the pain and failure of our current reality, many of those local laboratories of democracy are, in fact, exploring new (and sometimes old) ways to own capital and are seeking to democratize it.

Take participatory ownership. Even as union membership has trended steadily downward, for instance, the number of people involved in worker-owned firms has increased, from 250,000 in 1975 to about 11 million working in more than 11,000 firms today. Add to this approximately 130 million Americans who are members of some form of co-op, another type of democratized ownership; this number is increasing daily just beneath the surface of what our hollowed-out local newspapers are able to report on. Credit unions — member-owned one-person, one-vote banks — control more than $1.1 trillion in assets, as much as those of some of Wall Street’s largest financial institutions.

New ways for capital to be owned broadly by the people — or, again, democratized — are also beginning to show up in city and state politics. Boulder, Colorado, for instance, is in the process of municipalizing its electric utility, what one might call localized nationalization. The city council of Richmond, California, recently voted in favor of the mayor’s plan to utilize eminent domain powers to prevent foreclosures by taking over housing from banks if a major fight over mortgages is not settled in a reasonable way. In recent years, some 20 states have had legislation introduced to establish state banks similar to the one that has been operating successfully in North Dakota for almost 100 years. Land trusts — public or nonprofit ownership of land to benefit the community in diverse ways — have increased from a mere handful three decades ago to more than 250 now operating in 45 states and the District of Columbia.

No one believes these experiments in democratic ownership are at this stage going to alter how capital is owned to deal sufficiently with Piketty’s big trends. On the other hand, powerful forces are driving the new developments — namely, growing social and economic pain and a sense that none of the old ways work.
- And Jared Bernstein and Matt Bruenig make the case for wealth taxes in particular to counter inequality (while likely leading to a more productive economy to boot).

- Thomas Walkom notes that the Cons are trying to take credit for radically changing the temporary foreign worker program when they're really doing little more than changing the titles applied to disposable workers. Bill Curry reports that Jason Kenney wants to preserve low-wage temporary worker streams at least past the next federal election - signalling the Cons' interest in avoiding answering for their efforts to drive wages down. And while Murray Mandryk is far too willing to buy the Cons' spin, he's absolutely right to point out the gall of the Saskatchewan Party in demanding that employers be handed cheap workers rather than paying market wages.

- Trish Hennessy suggests that Kathleen Wynne should use a majority government as an opportunity to eliminate Harris-era anti-tax legislation. And the CP introduces one of the next right-wing strategies to demand a response, as the Cons have assembled a panel to attack Canada's health care system at public expense.

- Finally, Mychaylo Prystupa reports that Kinder Morgan's idea of environmental responsibility is to recycle oil spill response plans which were rejected as ill-founded by the EPA - though there's no indication yet that a National Energy Board more interested in boosting oil shipments at all costs than looking at the merits of an application will take note of the faulty assumptions.

Tuesday, June 24, 2014

Tuesday Night Cat Blogging

Downed cats.




Tuesday Morning Links

This and that for your Tuesday reading.

- Suzanne Goldenberg discusses the World Bank's findings that a smart set of policies to combat climate change can actually improve global economic growth. And Duncan Cameron makes clear that the perpetual austerity demanded by the same parties who insist we can't afford to act on climate change serves only to make sure that growth doesn't benefit workers:
Dating back to the 1980s, CUPE studies by John Calvert and his successor Toby Sanger, have shown how wages have consistently lagged economic growth. Both Andrew Jackson, and now Angela McEwan of the CLC have demonstrated how private and public wages have stagnated, though union members do make out better than non-union workers.

The CCPA Inequality Project has documented how the Canadian income gap is growing, partly as a result of poor wage growth. Anti-poverty activists and social economists point to the Canadian minimum wage as having peaked... in 1969.

It is reasonable for public workers to ask for a fair share of increases in public income. Stagnating wages causes the Canadian economy to underperform. By resisting further restrictions on wage growth OPSEU and the BCTF are trying to fix an economy that is not working for Canadians.

The quality of life is tied to how much people earn, not how much the stock market went up, or the price of gold increased. How long do people have to wait until the Ontario and B.C. governments recognize the need for public sector workers to be paid fairly?
- James Abro proposes that we should talk about poverty as "acute financial distress" to emphasize its possible application to nearly anybody.

- Chris Mooney ties financial problems to our democratic deficit, discussing how stress of all kinds can reduce voter turnout and political activity. And Cindy Blackstock describes the price being imposed on Canadian activists by telling her story about being spied on by federal officials.

- Finally, several scientists lament the Cons' efforts to break links between scientific evidence and public policy. And Ian Millhiser writes about the effect of broken or gridlocked government on progressive political discussion:
The problems Sotomayor described at the opening of the ACS convention are not easy problems to solve, and they will require considerable expertise to address in an effective an sensible way. The Congress that Newt built is ill-equipped for this task. Moreover, in this age of dysfunction, the dumbing-down of Congress is getting even worse. As former Sen. Byron Dorgan (D-ND) told Glastris and Edwards, “those who are nourished by accomplishment are starving.” Hill staff typically “come highly motivated, they want to feel good about their challenge, their work, what they’re doing for the country. When they’re not getting that, they start looking around.”

This unfed hunger for accomplishment stretches far beyond the people who work on Capitol Hill. There is an entire network of advocates, public interest lobbyists, litigators and think tankers whose job is to influence Congress and the Supreme Court. If many of the best liberal lawyers in the nation are not able to see a clear path through a dysfunctional government, then these jobs become much less attractive. Bright young progressives choosing between a life of public service and a job that pays three times as much in the private sector will be much more inclined towards the latter. The brain drain is likely to extend far beyond the halls of Congress.

Meanwhile if conservatives like many of the lawyers I met at the Federalist Society awake every day believing that it could be the day when the justices hand them their next great victory, then their movement will only become more energized. The best, as William Butler Yeats once wrote, will lack all conviction, while the worst will remain full of passionate intensity.
 [Edit: added link.]