On redemocratization

Adrian Morrow reports on Andrea Horwath's speech to the Ontario NDP's provincial council. And there's certainly plenty of reason for relative optimism about a message which both reflects a clear argument for big-picture progressive thinking, and recognizes at least part of the importance of the NDP's base. That said, I'll note that there's still one area which leaves something to be desired in Horwath's message:

Party sources say the election campaign was too undemocratic, run by a handful of people close to Ms. Horwath who decreed there would be no big picture pledges. The campaign also focused too strongly on winning Southwest Ontario – a region hard-hit with the decline of the manufacturing sector – at the expense of Toronto and the GTA, the sources said. The populist approach, they contend, made it harder for some in the party to feel they were fighting for anything important and consequently led to a lack of motivation.

Ms. Horwath made a bid to correct both problems Saturday.

In a speech that bordered on liturgy, she rhymed off example after example of progressive values – from universal health care to fighting poverty to better pensions to public transit – that she would embrace over the next four years. And she tugged at NDP heartstrings, at one point referencing the party’s revered late federal leader, Jack Layton.

“Love is better than anger, as a good friend reminded us a few years ago. We are the party of hope. We are the party of optimism,” she said. “In a time when the very, very few continue to amass so much for themselves while everyone else is falling behind, we have never been more relevant.”

She also promised to make the party more internally democratic.

“Every single New Democrat should be able to see themselves in our campaigns,” Ms. Horwath said. “We must reach out as broadly as possible, both within our party and to our allies in our movement, when crafting both our commitments and our campaigns.”

So what's wrong with that past passage in particular?

It's surely a must for any leader to be willing to speak to the values favoured by party supporters, and to design policy consistent with those values. But Horwath still appears to be taking the position that the crucial actor is "we" in the sense of the party leader and her (or his) closest advisers - reflecting a commitment to an increased baseline for consultation, but not necessarily an interest in true democratic decision-making at the party level.

Put another way, while we should be able to expect at least future campaigns and policy proposals (and hopefully general decision-making) from the Ontario NDP to better reflect members' values with Horwath as leader, her intention is still to decide personally where that commitment begins and ends.

That view of the relationship between a commanding leader and a subservient party is of course entirely consistent with the practices of the NDP's competitors. But unlike the Libs (who will generally follow their leader anywhere for lack of any coherent value structure) and the PCs/Cons (who count deference to authority as a key component of their actual value structure), the NDP actually has something to lose in settling for a top-down model.

In effect, the concession that politics must be practiced along the lines preferred by the other parties only helps the Libs and Cons to argue that the NDP doesn't live up to its own values, and thus doesn't offer an improvement on what we're stuck with now. And to avoid validating that line of attack, we should expect the NDP at all levels to advocate for - and offer - decision-making mechanisms which allow for grassroots debates and decision-making, rather than treating party members as just one more focus group to be taken into account by a leader who exercises sole control.

In making that observation about the need for the NDP's leadership to value something more than their own power, however, I'll also note that far too many political activists have been willing to reinforce the same dichotomy from the opposite side.

I've yet to hear anybody offer a reasonable explanation as to how frustration with a single leader justifies abandoning exactly the party system which should provide an alternate and more democratic source of policy ideas and strategic direction. In fact, a trigger-happy view of one's own membership based on dissatisfaction with a leader both diminishes the stability of a party's general value system, and further entrenches the view that the leader is solely responsible for defining the party.

And that's especially counterproductive within a party whose extensive (and growing) progressive network still offers by far the strongest opportunity for activists to shape both electoral results and governing priorities.

In sum, while Horwath has taken some important steps in speaking to core New Democratic values, there's still plenty of work to be done in better putting them into effect. And we'll only see the best possible results at all levels if both the leaders who have centralized power and the critics who have responded by turning their back on party involvement are willing to work toward that end.

Saturday Morning Links

This and that for your weekend reading.

- James Meek observes that decades of privatization in the UK have eliminated public control over housing and other essential services - and that privatization takes far more forms than we're accustomed to taking into consideration. And Rick Salutin offers his take on the latter point:

Economist Mariana Mazzucato's new book, The Entrepreneurial State, takes a bold step in "debunking" this fake construct. (Steve Paikin interviewed her on TVO this week.) She doesn't just argue that public spending (on defence) was crucial in basic advances like computers and the Internet. That's well-known. She also shows how U.S. public money funded product innovation way down the line, including some of the smallest details of the iPhone! She says the necessity of venture capital is highly exaggerated. Private investors are now far too focused on short-term profit to take real risks. It's governments that do it. The private sector then steps in when results are assured, to take the credit and the profits.

You could read her book as a blow on behalf of the public sector in the debate. But it works even better as a rejection of the debate's terms. There's no neat private-public division, that's just spin. There's actually society, a complex hybrid. Take the process of fixing potholes. Is that public or private? Or busing students to public schools. Even at those levels, it's all entwined. You cannot unscramble this omelet or neatly separate its ingredients back out.

- Meanwhile, Robert Benzie examines the Ontario Libs' plan to hand over the province's public resources based on marching orders from Bay Street, while Rob Ferguson reports on Andrea Horwath's anti-privatization push.

- Daniel Tencer examines expert reactions to the Cons' latest plan to suppress jobs and wages, and finds precisely nobody other than the CFIB with anything positive to say about it.

- Sharon Murphy writes that directing our attention toward poverty and other social determinants of health is both more humane then funding merely reactive systems, and more likely to result in an improved return on our public investments. And Andre Picard discusses the health consequences of insufficient access to dental care (particularly among Canadians with low incomes).

- Dene Moore reports on the obscene amount of political intervention the Cons are imposing in scientific discussions, finding that 16 separate communications operatives interfered in a single request to interview a single scientist about his work. And the Star calls for Health Canada to stop suppressing its findings about defective and dangerous prescription drugs.

- Finally, Jeremy Nuttall notes that the Cons' backroom dealings on the FIPA trade and investment agreement with China resulted in their completely caving when it came to Canadian interests, while the NDP is leading the charge to stop the sell-out. And Katie Valentine reports that while Stephen Harper can't rush through giveaways to Chinese business fast enough, he also can't be bothered to show up for the U.N.'s climate summit.

Musical interlude

Bissen - Exhale (Sean Tyas Remix)

Friday Morning Links

Assorted content to end your week.

- Rick Smith discusses the growing public appetite to fight back against burgeoning inequality - along with the need to make inequality a basic test for the fairness of any policy:

(I)t is significant that a finance minister of our decidedly right-wing government showed the political courage to criticize a policy that will clearly make inequality worse. This test — whether a policy choice will exacerbate inequality — should be the test for any government in making political choices.
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[The Broadbent Institute's wealth inequality] data, though disheartening, can help focus the minds of Canadians and our elected officials to understand the urgency of taking action to combat inequality.

Because in the end this situation is the result of political choices, not some inevitability. As Ed Broadbent, a long-time champion of combating economic inequality, has explained, “Democratic politics, at its best, is about choosing what kind of society we want to live in.”

And deep and persistent inequality shouldn’t be a characteristic of Canadian society. 

- Meanwhile, Rebecca Vallas and Joe Valenti criticize one policy choice which does little other than entrench wealth inequality, as asset limits which prohibit people from accessing social assistance if they own even a modest vehicle strip people of their assets and trap them in poverty without serving any useful purpose. And in a similar vein, Angelina Chapin laments Ontario's insufficient social supports which result in parents having to choose between food and school supplies for their children.

- Bryce Covert weighs in on how unpredictable hours in the retail sector cause nothing but stress and frustration for workers. And Peter Cappelli points out the futility of telling workers to seek more education when employers are more interested in employees who have received on-the-job training (which they don't want to provide themselves).

- Harsha Walia rightly argues that after thirteen years of sacrificing rights to a war against a vague concept, it's about time to replace unfocused fear with solidarity.

- Finally, Glen Thompson exposes the latest attempts by the oil industry to make sure nobody can be held responsible for the environmental risks it wants to impose on the Canadian public:

The new [Kinder Morgan] pipeline, it seems, is as complicated as the first mission to the moon, with a robust 15,000 page draft plan, guiding a small army of civil engineers, scientists and project leads. It took no less than nine expert presenters with technical analysts standing by, to present an hour and a half project overview to the FVRD Board. Sitting two rows deep, the project leads extolled advanced science and gleaned wisdom distilled from forensic analysis of past catastrophes. The presentation team successfully stick-handled their way through the Boards member's queries; air quality, the depth of the pipeline in deep rooted agricultural crops, financial compensation capacity and riparian protection.

The second event was a long afternoon of Kinder Morgan being slow cooked by fully qualified, and at times pointed, questions from a highly informed group of community leaders, advocates and government agency analysts. Kinder Morgan walked away roughed up, limping a bit, but uninjured. Every concern it seemed, had a graph, a published opinion or a mitigation plan and supposedly every bit of it, was reasonable, given the daunting task of moving extremely heavy oil, over mountains, in February.

At the FVRD meeting, a single phrase, made by the pipeline's head director, hung in the air like a high fly ball. I'll never forget the finality in his voice, "Once the oil leaves the dock, Kinder Morgan holds no obligation or responsibility, even 10 metres out -- that's the carrier's liability." Nobody caught the ball.

The oil cargo that was loaded into the Exxon Valdez traveled safely through the supply pipeline from Prudhoe Bay without incident. The Alaska coast disaster had nothing to do with the pipeline, and everything to do with the carrier. The Kinder Morgan director's sharp statement pulls the sheet off the question: Who will take Kinder Morgan's oil out of the Port of Vancouver?

On intended consequences

Shorter Joe Oliver:

Hey, I've got a bright economic idea! Let's pay businesses not to pay workers!

If there's any long-term bright side to the Cons' announcement, it's that it should serve so nicely to undercut any "job creation" or "better off" narrative: surely every opposition party can identify workers who end up being denied jobs or raises to keep employers below the EI contribution threshold, and point to the Cons as the source of the problem. But on the balance, surely we'd all be better off if Oliver simply walks this one back.

Thursday Morning Links

This and that for your Thursday reading.

- The Broadbent Institute studies wealth inequality in Canada, and finds not only that the vast majority of Canada's capital resources remain concentrated in very few hands but that the disparity continues to grow:

The new Statistics Canada data show a deeply unequal Canada in which wealth is concentrated heavily in the top 10% while the bottom 10% hold more debts than assets.

• The majority of Canadians, meanwhile, own almost no financial assets besides their pensions. The top 10% of Canadians accounted for almost half (47.9%) of all wealth in 2012.

• In 2012, the bottom 30% of Canadians accounted for less than 1% of all wealth; the bottom 50% combined controlled less than 6%. 

• The median net worth of the top 10% was $2,103,200 in 2012. It rose by $620,600 (41.9%) since 2005. In contrast, the median net worth of the bottom 10% was negative $5,100 in 2012, dropping more than 150% from negative $2,000 in 2005.

- Meanwhile, PressProgress highlights a new international study on the declining wage levels and job quality faced by Canadian workers over the past forty-plus years. And T.M. Scanlon summarizes how growing inequality erodes our basic social foundations.

- Harriett McLachlan offers her take on what it's like to live in poverty:

What is it like to live in a world built for people not living in poverty?

I think a person who is poor is more vulnerable or susceptible to getting hurt along the road of life, the impact of which is deeper and longer lasting than folks who are not poor. The way our society is constructed, each time a poor person gets hurt they never fully recover, they are still wounded when they are hit by the next roadblock. 

Poverty is like [a] Mack Truck coming at you, barrelling towards you, and you only have a split second to jump out of the way. As you dodge one, you see another truck barrelling towards you and if you’re not careful or unlucky you can be hit by a third and by a fourth one that was not possible to see right away. How do you strategically manoeuvre towards safety in fractions of a second? How is it even possible to sustain this ‘escaping’ behaviour over the long-term? How can a person be a productive and contributing member of society under such challenging circumstances? That’s what the world is like for me living in poverty. 
...
Are there any other questions that you think I should ask you?

One question I would want to answer is: if you had money, what would change? Poverty has a way of impressing upon a person their identity. So that when one comes to define themselves as poor, all the negative images associated with being poor are woven together with who you are. A person who is poor, especially in long term poverty, most likely see themselves through a lens of negativity. The lens is bleak, without life, without hope. 

I never wanted poverty to define me. I volunteered for forty years giving to others so I wouldn’t be suffocated by the heavy weight of poverty consistently upon me. A person is still a person regardless of poverty. 

Poverty is such a restricting force, like when you see old metal cars compressed by huge machines, stacks of flattened cars waiting to be towed away to a scrap yard. Poverty can be like that on a person, very crushing. There is a strength of heart that is needed to counter that or poverty will compress the life out of you. For me it is important to define who I am independent of my circumstances. That can be a very challenging thing to deal with on a day-to-day basis when the weight of poverty is especially heavy.

- Marc Lee points out that British Columbia doesn't lack the means to properly fund its public education, meaning that it's purely by choice that the Clark Libs are trying to strongarm the province's teachers into accepting low wages and unduly difficult class conditions.  And Lizanne Foster reminds us that the primary explanation for that choice is the desire to privatize education.

- PSAC notes that the Cons are trying to force federal public servants to go to work sick rather than maintaining a sound sick leave system. And the Saskatchewan NDP reveals how workers see Saskatchewan's health care system from the inside - with strong majorities of workers finding that neither managers nor the Sask Party government are listening to how to better ensure a healthy province.

- Finally, Linda McQuaig discusses the Cons' plans to boost military spending for no particular reason (other than to ensure public money isn't used for more positive purposes).

New column day

Here, on how the corporate sector is taking advantage of Brad Wall, Michael Fougere and their respective administrations at the expense of citizens who both fund and rely on public services.

For further reading...
- Murray Mandryk and the Leader-Post editorial board each weighed in recently on the latest developments from the smart meter debacle.
- CBC reported on the province's decision to let Deveraux Developments walk away from its commitment to build affordable housing, as well as Donna Harpauer's subsequent declaration that she's entirely sympathetic toward Deveraux (and by implication, not so much toward people who need homes), as well as the response by both the NDP and a procurement expert that it's foolish to let a business off the hook for a simple contractual commitment. And the Prince Albert Daily Herald rightly challenged Harpauer's spin that we can afford not to have any available housing because nobody is actually homeless, while Mandryk pointed out the respective treatment of people and businesses in the Deveraux case.
- Finally, the CBC's story on Emterra and the handling of glass food containers by the City of Regina's recycling program is here. And in keeping with the theme of the column, the City's late-breaking response couldn't have been much more carefully drafted to insulate Emterra from criticism.

Wednesday Evening Links

Miscellaneous material for your mid-week reading.

- Scott Clark and Peter DeVries criticize the Cons' choice to prioritize right-wing dogma over sound economic management:

What should Canada do? For starters, the passive approach isn’t working. In the face of global economic uncertainty and a secular decline in growth, Canadian policy makers need to get at the levers that can strengthen growth at home.

...Of course we have options — they just happen to be ones that clash with the Conservatives’ hands-off economic orthodoxy. The Harper government is committed to lower taxes, lower spending, balanced budgets and smaller government. But why should Canadians accept these as the only options? There’s nothing inevitable in this climate about years of sluggish growth. It’s a choice — a political choice.

So with its energies directed at the coming election, the Harper government finds itself stuck in a dilemma of its own making. It wants to run on a record of good economic management but it wants to define that record as narrowly as possible — as simply eliminating the deficit. In fact, as we argued last week, the government could kill the deficit this year, one year ahead of their political schedule. But getting rid of a deficit you created doesn’t make you a good economic manager. Healthy economies grow at a healthy rate. Ours isn’t.
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Why not stabilize the debt ratio at 30 per cent of GDP? Why shouldn’t a government borrow to make new investments when ten-year, thirty-year, and fifty-year interest rates are at historically low levels? Surely that’s what future generations would want us to do.

- And Stephen Kimber reminds us of the yawning gap between Harper and the Canadian public - while recognizing that it's also worth demanding that a new government actually improve on the Cons' attitude toward what brings us together as a country:

What are Canadians most proud of? Well, start with medicare, followed by international peacekeeping and the Charter of Rights and Freedoms. Not to forget multiculturalism, bilingualism and the Canadarm.
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But...there is a jangling disconnect between what Canadians say they believe in and the values Stephen Harper has enshrined in Canada's laws and practices since his party won the majority of seats in the 2011 election.
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[Harper has] cut the netting from under our social safety net, slashed public services, done a 180-degree foreign-affairs pirouette from global honest broker to ideological barking dog, glorified the military while denigrating veterans, stealthily imposed a new unilateral medicare funding formula to eviscerate national health-care standards and download costs on to the provinces, imposed tough-on-crime legislation and mandatory minimum sentences despite evidence they don't work, attacked the courts, eliminated the long-form census, muzzled scientists, destroyed important data, emasculated environmental protections, audited charities and environmental critics, cut taxes for the rich while leaving gaping loopholes for offshore tax cheats, gutted the CBC, passed Orwellian legislation like the Fair Elections Act to make elections anything but…

The list goes on. When I asked on Facebook recently "what a post-Harper government would need to do to undo Harper's disastrous re-making of Canada," I got close to 100 responses with at least three dozen different specific suggestions.

All of this means the scheduled 2015 federal election should not simply be another rascal-changing exercise.

The 60 per cent of us who didn't vote to radically change our country's laws and values must now ask those who would seek to replace Stephen Harper not simply what they will do for our country but what they will undo to give us back our country.

- Meanwhile, Tavia Grant reports on the financial squeeze facing far too many Canadians. Frances Woolley discusses the gender politics of taxation. And Carol Goar notes that the Ontario Libs' spin about addressing poverty isn't being matched with actions:

Anti-poverty advocates have learned to welcome crumbs from the Ontario Liberals.

That is what they got in the five-year poverty reduction strategy unveiled by Deputy Premier Deb Matthews last week. The 56-page blueprint consisted of recycled promises, long-term goals, soothing language and self-congratulations (despite the fact she fell far short of her last five-year target.)

But social activists lauded the government for its good intentions, its comprehensive framework and its long-sought acknowledgement that homelessness is a provincial responsibility. They politely overlooked the fact that the minister did not raise welfare rates, did not provide a nutrition allowance, did not address the shortage of child care spaces and did not offer rent supplements.

Do these advocates really speak for people living in poverty?

It seems unlikely. Good intentions don’t fill empty stomachs or pay the rent. Families in need don’t care which government does what.

Does easy praise encourage the government to aim low?

That seems highly probable. As long as Matthews can win public plaudits for saying what “stakeholders” want to hear, she needn’t risk bold action. As long as those who claim to represent the poor are onside, she needn’t back up her words with money.

- Rank and File documents the Honour Our Deal movement which is looking to preserve the pensions earned by municipal workers in and around Regina. And Brigitte Noel reports on the heinous conditions faced by a temporary foreign worker who has since died on the job.

- Finally, PressProgress duly mocks Gwyn Morgan - not long ago one of the key figures behind one of the world's most corrupt businesses - for complaining that he and his ilk have managed to give corporations a bad name.

Tuesday Night Cat Blogging

Connected cats.

Tuesday Morning Links

This and that for your Tuesday reading.

- Andrew Jackson examines the effect of a federal minimum wage - and how it would benefit both workers and employers.

- Dylan Matthews offers a primer on a basic income, featuring this on how a secure income has little impact on individuals' willingness to work:

As noted above, a real basic income has never been implemented across a whole country, which makes macroeconomic effects hard to predict. But we do have some experimental evidence on the question of work effort, drawn from the negative income tax experiments in the US and Canada in the 1970s. Those studies found that work effort declined when a negative income tax was imposed, as predicted, but that the effect was quite small. Moreover, most of the reduction in work effort appeared to come from people taking longer stints of unemployment. That can be a bad thing, but it can also mean that people aren't settling for second-best jobs and holding out for ones that are better fits for them. That'd actually be good, economically. Additionally, the work effect reduction for young people appeared to come entirely from increased school attendance— also a desirable outcome.

Another factor is underreporting. Negative income taxes provide an incentive for beneficiaries to underreport their incomes so as to get a bigger benefit — and that's exactly what happened in the US negative income tax experiments. For the experiment in Gary, Indiana, when participants' reported incomes were cross-referenced with official government data on their earnings, the reduction in work effort went away entirely.

- Sean Holman reveals how British Columbians have been kept in the dark as to the dangers of mining activity. And Damien Gillis notes that so far, the only person punished in the wake of the Mount Polley environmental disaster was the whistleblower who lost his job for pointing out that Imperial Metals' tailings pond was about to fail.

- Finally, Carol Goar discusses how Canada's remand system represents both a glaring waste of money, and an all-too-common form of indefinite detention for people who haven't had a chance to answer the charges against them.

On advance notice

Between Joan Bryden's report, Paul Wells' interview and Murray Dobbin's column among other coverage, there isn't much room for doubt that the federal NDP's economic focus - including a national minimum wage alongside a restored retirement age of 65 and reversal of corporate tax cuts - is earning some media and public attention. And we can surely expect plenty more as Thomas Mulcair fleshes out the details as he's promised to do this fall. But what can we take from both the substance of the NDP's policy proposals unveiled so far, and the choice to introduce them a year away from the anticipated election date?

Let's start by noting that conventional political wisdom has long been trending away from meaningful engagement with voters on policy. At all levels of government, the unfortunate tendency has been toward introducing a grab bag of policies more out of force of habit than any expectation that they deserve discussion - with those policies often serving more to obscure a party's real intentions than to reveal them.

But the federal NDP has often offered an exception to the rule, due in no small part to its desire to win some public notice when the media would otherwise be inclined to focus solely on a horse race between two other parties.

Of course, part of the NDP's long-term plan has always been to ensure itself a constant place in that horse-race coverage. And there are still two obvious if distant paths toward that end result: either the Libs' choice to bet the party on Justin Trudeau could fail (leaving a strong NDP-Con clash of ideas), or the Cons could crumble like the PCs did in 1993 (allowing the Libs to assume the explicit right-wing position they have in British Columbia).

In the meantime, it makes a world of sense for the NDP to stake its claim once again as the party of ideas - particularly since this time, it has far more resources behind it to reach the media and voters alike. 

So what about the content of the recent announcements? There, Mulcair seems to have learned at least a few lessons from Andrea Horwath's loss of "core left" and "new labour" support. And so instead of taking the NDP's base for granted, he's starting with proposals which serve largely to consolidate those groups of voters (while remaining palatable across the spectrum).

Of particular note, the minimum wage proposal looks ideally placed as an idea whose overall impact might far exceed its direct effects. While a relatively small number of workers fall under federal jurisdiction, even the NDP has rarely emphasized the concept that the federal government can lead the way in improving standards across the board. And particularly if the minimum wage proposal is just the opening salvo in addressing labour and employment rights more generally, there's plenty of room to present ideas which will make for both sound policy and effective politics.

To be clear, the few ideas presented so far almost certainly won't be enough to rally the base for the next year-plus. And so I'd expect the detailed plans being presented to follow a similar theme: ideas which core supporters will see as worth fighting and donating for, and which force the Libs (and to a lesser extent the Cons) to show their hand as to whether they plan to support business interests over the public.

We'll find out fairly soon how effective that effort is. (And Mulcair can help matters by not stepping on his own policy direction - as Wells seems to have had no trouble pushing him toward anti-tax tropes.) But the resolve to change minds on matters of policy is exactly what differentiates a functional political party from a mere leadership vehicle, and it's a plus to see the federal NDP pursuing the former role.

Monday Morning Links

Miscellaneous material to start your week.

- Bryce Covert writes that U.S. workers are receiving a lower share of economic output than at any point since 1950 - and that the decline in wages has nothing to do with the quality or quantity of work:

Workers aren’t earning less because they’re slacking off — just the opposite. Their productivity increased 8 percent between 2007 and 2012 while their wages actually fell, a trend that has been going on since at least 1979. And they’ve been speeding up since the recession, increasing their productivity last summer at the fastest pace since 2009.

The productivity has helped out corporations. They saw record high profits last year, rising to $1.68 trillion, and they have been rising steadily for some time, more than fully recovering what they lost to the financial crisis. Yet workers are getting little of that money. Profits have risen nearly 20 times faster than workers’ incomes since 2008, and on the whole workers have seen a lost decade of stagnant wage growth.

- Meanwhile, Rachel Aiello reports on the Cons' challenge in trying to explain how the trickle-down policies they've pushed have produced nothing but a widening income gap, while Mark Gongloff addresses the similarly disastrous effect of austerity and corporatism in Europe.

- Carol Goar highlights one more economic trend crying out for explanation and remediation, asking whether the part-time and precarious jobs consistently generated by the Cons' anti-labour policies are the new normal for Canadian workers.

- But naturally, the Cons have no interest whatsoever in actually addressing the concerns of workers - as they're too busy using public money to subsidize the promotion of weapons exports.

- Finally, John Millar discusses the effects of poverty and inequality - along with the urgent need to dedicate public resources to eliminating both:

Here's what the evidence says about the devastating outcomes of poverty: poorer health, more chronic disease, more avoidable deaths, social injustice, increasing demand and costs for healthcare services and reduced productivity of the workforce. On a large scale and over the long-term, inequality can also slow the economy and erode democracy, political and social stability.
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Economists call what we need "a judicious redistributive approach" -- that is, to raise government revenues via natural resources, taxes on the wealthy (income, estates, capital), regulation of offshore tax havens, and taxes on externalities, such as pollution, tobacco, alcohol and sugar. Governments should direct these revenues toward social investments such as income support, education, healthcare and infrastructure.
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We are paying dearly for inaction. It would cost taxpayers less to eradicate poverty than to continue to pay for poverty-related policing, corrections, housing and healthcare. In B.C., the estimated cost to implement a poverty reduction plan is $4 billion annually, according to the Canadian Centre for Policy Alternatives. Right now, poverty costs the province up to $9.2 billion per year. Businesses and governments must take measures now to reduce poverty and inequities. It is time for concerned citizens to demand action.

Sunday Morning Links

Assorted content for your Sunday reading.

- The Tyee's recent series on important sources of inequality is well worth a read, as Emily Fister interviews Andrew Longhurst about precarious work and Sylvia Fuller about the role of motherhood.

- David Cole asks just how corrupt U.S. politics have become, while Frances O'Grady observes that U.K workers don't believe for a second that their employer can't afford to pay living wages. Robert Reich sees Detroit as a prime example of wealthy individuals shirking their responsibility to pay for the public goods they enjoy. And Joseph Stiglitz notes that gross imbalances in political influence result in markets and other institutions serving only the privileged few rather than the general public:

What we have been observing – wage stagnation and rising inequality, even as wealth increases – does not reflect the workings of a normal market economy, but of what I call “ersatz capitalism.” The problem may not be with how markets should or do work, but with our political system, which has failed to ensure that markets are competitive, and has designed rules that sustain distorted markets in which corporations and the rich can (and unfortunately do) exploit everyone else.

Markets, of course, do not exist in a vacuum. There have to be rules of the game, and these are established through political processes. High levels of economic inequality in countries like the US and, increasingly, those that have followed its economic model, lead to political inequality. In such a system, opportunities for economic advancement become unequal as well, reinforcing low levels of social mobility.

Thus, Piketty’s forecast of still higher levels of inequality does not reflect the inexorable laws of economics. Simple changes – including higher capital-gains and inheritance taxes, greater spending to broaden access to education, rigorous enforcement of anti-trust laws, corporate-governance reforms that circumscribe executive pay, and financial regulations that rein in banks’ ability to exploit the rest of society – would reduce inequality and increase equality of opportunity markedly.

If we get the rules of the game right, we might even be able to restore the rapid and shared economic growth that characterized the middle-class societies of the mid-twentieth century. The main question confronting us today is not really about capital in the twenty-first century. It is about democracy in the twenty-first century.

- On the bright side, people can generally recognize corruption where it exists, as Thomas Frank points out what happens when corporate scams are put to the test in court: a California jury refused to accept a prosecution argument that mortgage lenders cared whether loan applications were accurate (in a trial aimed only at punishing borrowers while painting banks as victims). But Yves Smith makes clear that the greediest of the greedy are only getting more insistent on securing perpetually larger rents over growth in equity.

- Alison writes that a botched war after he first tried to push Canadian troops to Iraq over public objections, Stephen Harper has finally managed to get that done - while scrupulously ignoring any of the lessons that should be obvious from the U.S.' previous disastrous stay. And Peter Bergman and David Sterman observe that the politicians shrieking about North Americans being recruited into foreign fighting forces are doing so without any basis in reality.

- Finally, Michael Spratt slams the Cons' counterproductive spin on crime:

How can a government so keen to combat lawlessness make such a botch of its own laws? How can a government composed of law-and-order types be so astoundingly ignorant of how the law actually works?

The answer seems obvious: This government doesn’t really care about fighting crime, about victims, about respecting our most fundamental law — the Constitution. What they do care about is politics — and for Stephen Harper, wrapping himself in his crime-fighter cape is a lot more important than passing laws that work, or make sense.

That the Conservatives are indifferent to the pursuit of justice is something demonstrated by their actions, not their words. They cut the Department of Justice’s research budget by $1.2 million. According to an internal government report, the Justice Department’s research budget was slashed just as an internal report for the deputy minister was warning its findings “may run contrary to government direction” and have “at times left the impression that research is undermining government decisions” and is not “aligned with government or departmental priorities.”

Why stop at suppressing the dissenting opinions of the experts when you can stifle them altogether?

Saturday Morning Links

This and that for your weekend reading.

- Andrew Jackson writes that public investment is needed as part of a healthy economy, particularly when it's clear that the private sector isn't going to put massive accumulated savings to use. Bob McDonald notes that we'd be far better off using public money to fund basic research instead of funnelling it toward the business sector. And Ed Keenan looks to Ontario for examples of how far more money is flowing into questionable corporate handouts than toward basic human needs.

- Meanwhile, Lana Payne exposes the Cons' efforts to both downplay and reduce the federal funds available to improve both economic and social conditions if they had any interest in getting things done:

Martin serially underestimated the size of federal surpluses, surpluses the Conservatives quickly spent when they took power, mostly on reckless corporate tax cuts. The Conservatives then continued the trend started by Martin, who had reduced federal corporate taxes to historic lows. Apparently not low enough for the Conservatives, who lowered them again and again.

This has been the extent of Canada’s tax debate for a generation: tax cuts. Even the political left has bought into the mantra, to a certain extent. Political parties, for the most part, want to avoid having an adult conversation on what a fair tax system in Canada would look like.And, as a result, there is little to no fiscal room to build and deliver on the needs of the next generation of Canadians or to meet the demands of an aging population.

The Conservatives have continued the austerity agenda, slashing programs and services and laying off more than 20,000 employees.  They have overstated the size of the deficit. Indeed, for the first three months of fiscal year 2014-15, the federal government has been in official surplus.

The parliamentary budget officer (PBO) has been critical of the federal government’s continued austerity, noting that the measures have slowed economic growth and resulted in fewer jobs. The PBO has also predicted a $7-billion surplus for 2015.

These slash-and-burn austerity policies have served to keep the expectations of Canadians low, but they have also fundamentally changed and diminished the role the federal government has played in Canadian society.

This, of course, has been the point and some of the rationale behind the reckless tax cuts — empty the federal coffers, strangle the expectations of Canadians and then repeat.

- Linda McQuaig writes about the costs of allowing corporations to engage in tax-evasion maneuvers like the Burger King/Tim Hortons takeover:

We’re always told we should try to lure corporations here with low taxes. But such a strategy — even if it did result in some benefit to Canada — is ultimately self-defeating.

The more we cut our tax rates, the more other countries feel obliged to cut theirs. Round and round it goes, with less and less revenue for vital public programs everywhere. It’s a race to the bottom only corporations can win.

Instead, we should be supporting the Obama administration in its efforts to stop international corporate tax dodging. The White House is now locked in a fierce battle with powerful corporations over tax inversion schemes and also over the U.S. corporate tax rate, which — at 35 per cent — is one of the highest in the world. Corporations want it slashed.

The outcome of this showdown will affect us all. If the multinationals succeed in coercing the mighty United States government to cut its corporate tax rate, it will be much harder for less powerful countries to resist the corporate tax-cutting juggernaut.

The race to the bottom will be on in earnest — with the corporate world happily handing out steroids.

- Mike De Souza reports that the Cons refuse to let Health Canada or its scientists talk about the effects of oil-industry toxins on Alberta residents (other than to dismiss out of hand the research which actually shows harm to human health caused by the tar sands).

- Finally, Rick Salutin highlights the foreign policy that's actually threatening us at home at abroad:

Yes, there’s a threat of domestic 9/11-type attacks by ISIS: either in the name of global proselytization or to teach the West what it’s like to be bombarded at home. But it’s the predictable result of western policies since 9/11: invasions, occupations, brutalizations in Afghanistan, Iraq and elsewhere. Western leaders and policy mavens knew these would elicit further 9/11s. That’s what I find despicable. They surely try to stop them but eventually some will probably get through — and they’re prepared to accept those, along with the terrorization of their own populations, as the price of their agenda.

In other words, they don’t invade or attack to stop future 9/11s. They accept future 9/11s as the cost for invasions and attacks with other purposes.

Such retaliations can arise in any society that’s been buffeted by outsiders, though they’re easier to mount in the globalized era. They already occurred in Ireland and Algeria. They often come from religion-based groups because those have deep roots and seem better able to survive repression than secular resistance movements. Occupiers like the U.S. are willing to risk the retaliation since, though terrifying and barbaric, it doesn’t menace them existentially: neither economically nor militarily. They’ll survive, and meanwhile have an excuse to tighten the screws on domestic dissent, further eroding personal security.

Musical interlude

Orjan Nilsen feat. Kate Louise Smith - The Thunder

Friday Morning Links

Assorted content to end your week.

- Jordan Brennan examines the close links between strong organized labour and improved wages for all types of workers:

U.S. scholars have found that higher rates of state-level unionization help reduce working poverty in unionized and non-unionized households and that the effects of unionization are larger than macro performance and social policies in those states. Research shows that the decline of U.S. unions between 1973 and 2007 explains one-fifth to one-third of the growth in U.S. wage inequality—a magnitude comparable to the growing stratification of wages by education. A 2010 study used data from 14,000 respondents in 14 countries and found that life satisfaction is directly related to the level of unionization and that union members report higher life satisfaction than non-union members.

Given the foregoing, ‘unionization’ provides an answer to two questions: ‘What drives income inequality?’ and ‘What can we do about it?’

Union renewal will be difficult in the current political climate, given the hostility governments currently express to the very idea of collective bargaining. The optimistic assessment is that governments are attacking unions despite the fact that unions play a progressive role in middle class formation. The more cynical assessment is that governments are attacking unions (cheered on by factions in the corporate sector) because they understand the role that unions play in building a shared prosperity.

In either case, if unions are going to continue their historic role as elevators of working conditions and lifters of living standards, governments must cease their attacks. But the absence of government hostility will not be enough for unions to flourish in the future. Instead, a supportive policy environment where union security is not only tolerated but nurtured is a crucial ingredient in union renewal.

- Meanwhile, David Dayen notes that U.S. incomes are still increasing only at the very top - and that the result figures to be a burgeoning social movement reviving the concept of forcing change through collective action.

- The Alberta Federation of Labour points out how negligent enforcement of rules governing temporary foreign workers has been putting Alberta at risk. And Bill Tieleman's commentary on the B.C. Libs' school shutdown points out that the teacher's union is simply fighting for class size and composition standards which ultimately benefit students.

- William Marsden reports that Canada's growing list of international embarrassments includes the title of greatest destroyer of natural forests on the planet since 2000. Andrea Germanos discusses a U.S. court's decision on liability for BP's massive Gulf of Mexico oil spill - just in time for oil giants to start drilling in Canada's Arctic region with lax spill response standards. And PressProgress reveals that the oil sector is far from finished demanding that Canada's laws be rewritten to place its interests ahead of the environment (and all other considerations).

- Finally, Denise Balkissoon writes about the need to actively change politics as part of a functioning democratic system, rather than merely complaining about them as something inflicted from outside. And Don Braid's take on Alberta's PC leadership race looks to offer a truly sad example of what happens when all policies and ideals are purged from an electoral process.

Thursday Morning Links

This and that for your Thursday reading.

- Ethan Corey and Jessica Corbett offer five lessons for progressives from Naomi Klein's forthcoming This Changes Everything.

- Following up on this post, Andrew Jackson fact-checks the Fraser Institute on its hostility toward the CPP. And the Winnipeg Free Press goes further in challenging the motives behind the "study":

Since the authors started out believing that the Canada Pension Plan and its investment arm are a "self-serving bureaucracy," it was predictable that they would find something objectionable about CPP administration. The surprise in the study is that the authors produced no evidence that private-sector pensions are more efficient. It is possible that they found evidence on that point but left it out of the published paper. Either way, their silence on the comparison suggests that the CPP stands up well to scrutiny.

A more useful study would produce evidence both from the public and private spheres. That study would have to be written by authors who gather the evidence first and then draw their conclusions. The study published this week seems more like the work of an agency with a narrow agenda -- what you might call a self-serving bureaucracy.

- Krishna Pendakur points out that the background to the B.C. Libs' latest war against teachers is several bargaining cycles worth of abuses of power which have left public educators with the lowest pay and the largest class sizes in the country. And Emma Graney reports that the Wall government's meddling with Saskatchewan's education system was based on precisely zero thought or consultation as to how shiny announcements would affect students in reality.

- Joel-Denis Bellavance and Hugo Grandpre break the story that the federal Department of Indian Affairs and Northern Development assembled an internal list of people requesting information about Jim Prentice's expenses.

- Finally, Carol Goar discusses how we need our health care system to be more inclusive rather than putting up barriers for marginalized people. And Scott Stelmaschuk makes the case for a guaranteed annual income.

New column day

Here, questioning whether Canadians share Stephen Harper's newly-professed aspiration to spend tens of billions of dollars more every year to prop up U.S. and U.K. military contractors.

For further reading...
- David Pugliese reported on this week's NATO summit.
- NATO's most recent spending calculations are here (see PDF link), showing that Canada currently spends about 1% of GDP on its military. Note that while this number pegs Canada's current spending at about $18.4 billion per year, I reference the $19 billion figure used by both government and outside sources in the previous link.
- While some of us think it's worth asking whether military spending is actually intended to accomplish anything in particular, at least some Very Serious People are arguing that there's nothing more important than spending gobs of money to prove that we're indeed Very Serious.
- By way of comparison to the price of meeting the proposed military spending standard, see here and here (PDF) for estimates of the raw cost of national child care and pharmacare plans respectively. (In the latter case, I treat the added price of additional use as reflecting the new cost of a federal plan.)
- Finally, Jim Stanford rightly highlights how Canada has ignored another international funding target in the form of a significantly smaller foreign aid commitment. But I'd think it's well worth recognizing a contrast between the two which fits the theme of my column: helping those who need it most seems to fit perfectly as something worth aspiring to, while it's hard to see what normative value there can be in arbitrary military spending numbers.

Wednesday Morning Links

Miscellaneous material for your mid-week reading.

- Eve-Lyne Couturier discusses the rot in the state of Canadian labour negotiations, as workers outside of the 1% are being systematically denied any of the benefit of economic growth.

- Meanwhile, Dean Baker points out that it's only by choice that the vast majority of jobs have been outsourced around the world for the sake of slashing wages, while executive and high-skilled positions have largely stayed put (with far more generous pay). And Margaret Simms highlights the effects of precarious work on workers and their families.

- Nick Carnes writes that the extremely wealthy have thus far won the U.S.' class war in terms of both representation and policy clout. And Harold Meyerson writes that burgeoning equality can be traced largely to corporations' decisions to enrich shareholders in the short term rather than investing in workers and economic development:

Lazonick looked at the 449 companies listed every year on the S&P 500 from 2003 to 2012. He found that they devoted 54 percent of their net earnings to buying back their stock on the open market — thereby reducing the number of outstanding shares, whose values rose accordingly. They devoted another 37 percent of those earnings to dividends. That’s a total of 91 percent of their profits that America’s leading corporations targeted to their shareholders, leaving a scant 9 percent for investments, research and development, expansions, cash reserves or, God forbid, raises.

As late as 1981, corporations directed a little less than half their profits to shareholders, but the shareholders’ share began rising in 1982, when Ronald Reagan’s Securities and Exchange Commission removed any limits on corporations’ ability to repurchase their own stock and when employers — emboldened by Reagan’s destruction of the federal air traffic controllers’ union — began large-scale union-busting. Buybacks really came into their own during the 1990s, when the pay of corporations’ chief executives became linked to the rise in the value of their company’s shares. From 2003 through 2012, the chief executives of the 10 companies that repurchased the most stock (totaling $859 billion in aggregate) received 58 percent of their pay in stock options or stock awards. For a CEO, getting your company to use its earnings to buy back its shares might reduce its capacity to research or expand, but it’s a sure-fire way to boost your own pay. 

...

What Lazonick has uncovered is the present-day American validation of Piketty’s central thesis that the rate of return on investment generally exceeds the rate of economic growth. Indeed, Lazonick has documented that wealth in the United States today comes chiefly from retarding businesses’ ability to invest in growth-engendering activity. The purpose of the modern U.S. corporation is to reward large investors and top executives with income that once was spent on expansion, research, training and employees. To restore a more socially beneficial purpose, Lazonick proposes scrapping the SEC rule that permitted rampant stock repurchases and requiring corporations to have employee and public representatives on their boards.

Lazonick’s article does nothing less than decode the Rosetta Stone of America’s economic decline. The reason only luxury and dollar stores are thriving, the reason German companies outcompete ours, the redistribution of income from workers to investors – it’s all here, in Lazonick’s numbers.

The lesson for Labor Day 2014 couldn’t be plainer: Unless we compel changes such as those Lazonick suggests to our model of capitalism, ours will remain a country for investors only, where work is a sucker’s game.

- Trish Hennessy looks at the numbers behind the Lac-Mégantic rail explosion. And Jenny Uechl reports that the public will likely be left with much of the bill for the Mount Polley spill.

- Finally, Duncan Cameron reminds us that a combination of core support and low voter turnout might well leave some opportunity for the Cons to cling to power after 2015. But in noting that possibility, it's also worth highlighting the need to counter the former, work on improving the latter, and demand change to the system which allows for false majorities, rather than merely accepting whatever seems like the easiest alternative to put a new face in the PMO.

On active demolition

Shorter Fraser Institute:

It has come to our attention that due to the Canada Pension Plan, the rabble might actually enjoy the benefit of high-return investments normally reserved to our corporate overlords. Clearly this must end.

Tuesday Night Cat Blogging

Cuddled cats.

Tuesday Morning Links

This and that for your Tuesday reading.

- Bill Maher offers some simple math and important observations about inequality:



- And Gary Engler proposes ten ways to build a better economic system.

- Vanessa Brcic points out that corporatized medicine is as unethical as it is inefficient. And Garry Patterson laments the premiers' weak response to the Harper Cons' attacks on health care.

- Dean Beeby reports that the CRA's investigation of the Canadian Centre for Policy Alternatives is focused squarely on the question of whether the CCPA is adequately complying with the Cons' definition of rightthink, while Dr. Dawg is duly appalled. And I'll also point out that the CCPA example surely answers Matt Gurney's rhetorical questions about CRA bias: surely it can't be anything but a gross abuse of power if Canada's tax authority is conducting investigations which respond solely to the concerns of Stephen Harper's former staffers (who may themselves have had inside knowledge that such complaints would be met with new money).

- Meanwhile, Shelina Ali discusses how anti-SLAPP legislation can help to ensure a genuine exchange of ideas despite corporate attempts to silence criticism.

- Finally, the Star writes about Barack Obama's push for global action against climate change - and how that focus may finally drag Canada along for the ride despite Stephen Harper's determination to value oil profits ahead of human welfare.

On healthy proposals

Paul Wells seems quite disappointed not to have received more attention for his recent piece on Thomas Mulcair's speech to the Canadian Medical Association. So let's take a closer look at why the angle Wells took didn't seem like much of a revelation - and what might be more significant in Mulcair's plans.

At the outset, I don't see much basis for surprise that after consistently and rightly criticizing the Cons for their health-care funding choices, Mulcair would follow up by saying he'd act differently if he had the power to do so. Which means that the headline promise highlighted by Wells is best seen as the flip side of the NDP's oft-used policy currency, not some significant new discovery. 

Now to be fair, we may not be able to take for granted that a party's opposing a policy in opposition represents a commitment to reverse it while in government (see: cuts, GST, and their omission from subsequent opposition party platforms). And indeed the Libs are following that same pattern when it comes to Harper's health-care slashing: they won't hesitate to criticize the Cons' funding cuts explicitly and implicitly, but they apparently don't want to commit to doing anything differently.

But it's hardly news that the NDP has questioned the combination of cuts to anticipated health care spending, and the Cons' less equitable distribution of the money they'll deign to put into the health care system. And Mulcair is calling only for a return to the exact level of increases already offered by past Libs and Con governments alike - which, even if continued, still figured to do little more than restore the federal government to half of its past role in funding the existing health care system.

In other words, if we've defined a "big directional policy announcement" downward to the point where incrementally-increased federal funding qualifies (particularly if accompanied by no expectation of associated policy outcomes as suggested by Wells), that would say far more about how little we've been trained to expect from our federal government than about any drastic impact from Mulcair's speech.

Fortunately, it's not clear that Wells has any basis to suggest that Mulcair's plans don't involve some meaningful policy choices beyond turning on the funding taps slightly more:


Or for those who want part of the speech in writing, here's Barbara Sibbald's report from the same speech:

An anticipated budget surplus in 2015 should be used to cancel proposed cuts to health care, maintained Mulcair.

While money may not be the solution for problems facing health care, it is "definitely a necessary precondition," he said. "Mr. Harper, it's time keep your word to protect Canadian health care."

In keeping with an underlying theme of the annual meeting, Mulcair pointed to seniors care as a primary health care challenge and later told reporters that he favours a Royal Commission on physician-assisted suicide. The NDP is the only federal party with a national strategy for seniors care, including a policy on aging and palliative care.

In his speech to CMA, he quickly moved on to other challenges, criticizing federal cuts to refugee health as "cruel and thoughtless."  

He also decried the "awful" state of some First Nations' reserves and food security in Canada. "It's totally unacceptable… that 800 000 children go to school each day without having eaten." The NDP is the first federal party with a pan-Canadian food strategy.

On the topic of military health, Mulcair slammed the government for shutting down nine Veterans Affairs service centres this year and pledged to reopen them if elected. 

So no, Mulcair isn't talking about handing over more money to the provinces while otherwise following in the Cons' laissez-faire footsteps. Instead, he's treating increased funding to the provinces as only a "precondition" to systemic improvement - pointing specifically to Libby Davies' report which discusses how federal investments can be used to change health care delivery for the better by agreement with the provinces.

Meanwhile, Mulcair also highlighted a far more significant role for the federal government in meeting its own responsibilities. And he connected health funding to a number of other related issues which the Cons tend to keep in their own silos, reflecting the NDP's recognition that public health necessarily involves more than hospitals and doctors' offices alone (including a direct mention of studying the social determinants of health).

Which is to say that while restored transfer payments may reflect bigger headline numbers, they're far from the only departure from the philosophy of Canada's federal governments, in some cases dating back several decades or more. And if there's a clear point of distinction we should draw from Mulcair's speech, it's the NDP's belief that the federal government can and should play a positive role in creating a healthier society.

Monday Morning Links

Miscellaneous material for your Labour Day reading.

- Andrew Jackson discusses the future of Canada's labour movement, while Gil McGowan highlights the fact that unionization can be no less important in Alberta and other booming areas than elsewhere. And Jerry Dias notes that there are some reasons for celebration this year.

- But Edward McClelland points out that far too many labourers who would benefit from organization are instead hostile to the idea of unions. And Timothy Noah finds another gap between labour and U.S. centrist liberals - which is mirrored by the relationship between unions and large-L Liberals in Canada.

- Speaking of which, Tracy Sherlock writes that disastrous past decade-plus for B.C.'s education system can be traced back to the Lib government's hostile response to the inclusion of special needs supports and other student priorities in teachers' collective bargaining agreements. 

- Kathy Tomlinson reports on how the Cons' efforts to undermine Canadian labour are leading to grossly unsafe working conditions for Canadian and imported workers alike. And Geoff Leo exposes yet another employer laying off qualified Canadian workers with help from the Cons' temporary foreign worker program.

- Steven Greenhouse addresses the epidemic of wage theft which is making living conditions all the worse for some of the U.S.' most vulnerable workers.

- Finally, Hedrick Smith (as adapted by Yes) documents how the spread of inequality in the U.S. is the result of deliberate policy choices. And Sean McElwee offers five reasons why politics haven't yet served to reduce inequality, particularly if voters have misplaced faith in upward mobility while ignoring its inevitable counterpart:

According to research from Carina Engelhardt and Andreas Wagner, around the world people overestimate the level of upward mobility in their society.


They find that redistribution is lower the when actual social mobility is [sic] but also lower where perceived mobility is higher. Even if voters perceive the level of inequality correctly, their tendency to overstate the level of mobility can undermine support for redistribution. In another study Alberto Alesina and Eliana La Ferrara find that, Americans who believe that American society offers equal opportunity (a mythology) are more likely to oppose redistribution. Using data from 33 democracies, Elvire Guillaud finds that those who believe they have experienced downward mobility in the past decade are  32% more likely to support redistribution. A relatively strong literature now supports this thesis.

...

[A] massive public education campaign about the extent of income inequality is neither necessary nor sufficient to achieve the kind of redistributive policies liberals favor. The real obstacles to policy action on inequality are more deeply ingrained in the structure of American politics, demographics, and interest group coalitions. Insofar as there is a role for better information to play, it likely relates not to inequality but to social mobility which remains widely misperceived and is a potent driver of feelings about the justice of economic policy. As John Steinbeck noted, "Socialism never took root in America because the poor see themselves not as an exploited proletariat but as temporarily embarrassed millionaires." Stronger unions, more lower income voter turnout and policies to reduce the corrupting influence of money on the political process would all work to reduce inequality. It will take political mobilization, not simply voter education to achieve change.

#MacKayTees

I won't claim to match Stephen Lautens' collection of #MacKayTees. But I will add a couple to the mix.

First, making using of a picture which fortuitously made its way around the Internets yesterday:

And second, encapsulating conservatism in four small words:

Sunday Morning Links

Assorted content for your Sunday reading.

- Eric Reguly examines Apple as a prime example of how supposed market successes actually reflect the private capture of public investments - and suggests the public should benefit financially from its investments which facilitate corporate growth:

Apple is such a runaway success that its profits pile up like snowdrifts in the Rockies. At last count, Apple was sitting on $165-billion (U.S.) in cash and securities. That’s more than the GDP of Hungary.

What to do with the windfall?
...
Here’s another idea: Give the surplus cash back to the taxpayer.

It will never happen, but if you believe that the stakeholders who are responsible for Apple’s success should be rewarded, taxpayers would certainly take precedence over the hedgies. Greenlight and its ilk had absolutely nothing to do with Apple’s journey from garage start-up in 1976 to the world’s most valuable tech company. They did not provide any of the capital. Apple has tapped the public markets only once, in 1980, when its initial public offering raised $97-million (U.S.). In fact, taxpayers provided the lion’s share of the funding for many of the key inventions that are built into every Apple device.
...
(W)hat powers the iPad, iPhone and iPod? Lithium-ion batteries developed by the U.S. Department of Energy. How about the devices’ liquid-crystal display? That came from the National Institutes of Health, the National Science Foundation and the Department of Defense. The Internet, GPS, SIRI (the intelligent personal assistant used in Apple's operating system) and DRAM cache did not start life as Jobs’s back-of-the-envelope doodles. They came out of the U.S. Defense Advanced Research Projects Agency and other government bodies.

Governments also supplied much of Apple’s brainpower. Thousands of its engineers and technicians have been recruited from the finest U.S. (and Canadian and British) universities. “Operating in the United States, Apple should recognize that the knowledge base on which its success has been built can be traced back to government investments,” said academics William Lazonick, Mariana Mazzucato and Öner Tulum in a 2013 paper titled “Apple’s Changing Business Model: What Should the World’s Richest Company Do with All Those Profits?”

The concept of imposing a special fat-profits tax on a single company is legally absurd and morally dubious, but the concept of imposing taxes on the supernormal profits of companies that benefit the most from government spending (such as those in the technology and defence industries) is not.

- Kev points out how employers see even their own employees as disposable tools rather than people worthy of human dignity. And Yvonne Roberts discusses what economy built on that assumption means for far too many workers:

Entrepreneurship is the pulse of a thriving economy but, according to the thinktank the Resolution Foundation, one in four who, like Almond, became self-employed in the last five years would rather work for a boss; their situation is involuntary. As employers use ever more aggressive tactics to reduce labour costs and restrict  collective action, productivity is suffering and patterns of employment initially viewed as temporary are becoming permanent. The gap between the richest and the rest widens. This is not unique to the UK.
...
This story of wage stagflation and the working poor is just as applicable in Britain. Beyond chancellor George Osborne's talk of economic recovery, the stories are legion of families and communities across the whole of Britain who are only just managing to keep afloat.  No matter how often Osborne says it, it doesn't make it true. Large numbers of Britons are not in recovery. The gulf between those getting by and those getting on grows each month.

In the UK, as elsewhere, underemployment, a lack of investment in training and low pay are rife. Forty per cent of part-timers, mainly women, would like longer hours, according to one survey. At the same time, for many on low pay the last several years have seen the cost of living soar as their wage packet has shrunk.
...
 Huge income disparities and increased casualisation of the workforce also means higher costs for the taxpayer subsidising low wages. Research last year by Landman Economics showed that the cost to the exchequer of millions of workers paid less than the living wage – "wage dodging", as the GMB calls it – is £3.23bn a year in social security spending and lower tax receipts. In a paper published last month, academics Dr Lydia Hayes and Professor Tonia Novitz considered how the cake could be sliced more fairly. They say economic inequality was at its lowest when 58% of workers were in trade unions and 82% of wages were set by collective bargaining. By 2012, 26% of the workforce was in trade unions and only 23% covered by collective bargaining, while the gap between top earners and the lowest is higher than at any time since records began.

Among the recommendations Hayes and Novitz make is sectoral bargaining to set terms and conditions across particular industries, and the right for employees to join a union without repercussions. Other proposals from the High Pay Centre include worker representation on company boards, remuneration committees, a maximum pay ratio and a legally binding target for the reduction of inequality.

- In a similar vein, Elise Gould and Frances O'Grady make the case for wage growth (and political and economic environments which put workers in a position to demand it) in the U.S. and the U.K. respectively.

- Nicholas Kristof discusses the appalling link between race and wealth inequality in the U.S. Josh Fullan and Josh Lorinc report on a program encouraging Toronto students to see how different their city looks at varying income levels. And the AP reports that 40 per cent of Michigan's households lack enough income to meet basic needs. (Which most of us see as a problem to be solved, with the notable exception of the Fraser Institute which claims that Michigan's anti-worker policies and consequent impoverishment of its citizens make for a goal to be pursued.)

- Finally, Jeffrey Simpson highlights the absurdity of Stephen Harper making yet another publicity tour of Canada's North while refusing to so much as acknowledge climate change which is radically altering the region.