Tag Archives: Economic Commentary

The Most Important Thing You Haven’t Heard About

The Trans Pacific Partnership has been described as ‘NAFTA on steroids’. While I don’t generally care for such pop metaphors this one may be quite apt.

It’s also been described as a multi-national agreement on enforced monopolies, one that would infringe on a wide spectrum of consumer, labour and environmental concerns.

And it’s by far the most secret trade agreement ever, so secret in fact that there’s a cash reward of $72,000 for a copy of its contents. So far only the negotiating parties have been allowed to look at the content, though in the way that the agreement has been designed, individual nations may only get to see the parts that directly apply to them in particular. The full scope of the agreement remains hidden, especially from the global public.

It’s being touted as a free trade agreement, when in reality it’s actually the complete and total opposite of one in some respects.

But even if it were like NAFTA, we here in Canada stand to gain nothing at all.

Don’t forget, it hasn’t been twenty years since we ratified NAFTA. Since then, we, much like the people of the United States, have seen millions of jobs flow out of our respective countries.

The best way for capital to rid itself of the ‘labour problem’ is to simply eliminate labour positions. In the last twenty years Canada’s manufacturing base has all but been destroyed by ruthless multi-national corporations. Our dollar, while currently at parity with the American greenback, actually doesn’t even come close to its value (everything costs more up here, from food to books to internet access and airfare). Factory jobs have been replaced with call centre jobs throughout much of the industrialized eastern portion of the country, while we’re patted about the head and told by our hapless (and thoroughly out-of-control politicians) not to worry, that this is all normal.

There’s nothing normal about selling out your economic sovereignty.

And let’s get something straight, we’re not the best performing economy in the G7.

We’re the least fucked-up economy in a group of nations that are all undergoing the same process to one degree or another. Free trade isn’t fair, least of all for the working classes.

And these days, there’s no middle class. It’s not that the middle class may disappear, or could face problems in the future. It’s that the middle class hasn’t existed in over a decade and we haven’t yet caught wind of the development.

The TPP deal is only going to exacerbate all of this.

And as you might expect, those in power are doing just about all they can to keep us distracted, looking the other way.

All those Bay Street types who spent last week watching Rob Ford’s crack-sponsored meltdown weren’t paying attention to the TPP.

Or perhaps they don’t care. Those who gamble money on the stock markets don’t have much of a vested interest in keeping industrial jobs in Canada, protecting the Canadian environment, or enforcing consumer regulations. All of that removes the potential for profit.

The rich are not ‘national’, their concerns are global and they have the means by which to enjoy a global life. The rest of us can barely balance our chequing accounts, and are drowning in higher levels of debt than ever recorded in our country – including the Depression.

And yet, we are distracted and pushed aside. Even though we have the right to vote, we choose not to, and so these decisions that will impoverish and cripple us are made without the slightest murmur from the toiling classes.

And when we do complain, well, what do you think this $360,000 monstrosity is for?

mtl_police_vehicle_20131106

Oh, and if you don’t know why NAFTA’s a bad thing, this should sum it up fairly well. An American company based in Delaware, Lone Pine Resources, as suing the Canadian government for $250 million because the province of Quebec has a fracking ban in place that would prevent the company from operating anywhere in the Saint Lawrence River Valley.

Fracking, for the uneducated, is a process wherein water is blasted into rock deep underground as a means of extracting natural gas.

It’s one primary drawback is that it destroys natural aquifers, makes your tap water flammable, and would, forceeably, force millions of North Americans, if not tens of millions, to rely 100% on bottled water.

Again, none of this bothers your run of the mill capitalist or any of the pigs who caused the economy to collapse (and so far haven’t been prosecuted); they just discovered a new business opportunity.

Here, add this to your nightmares.

Irony

Don't judge a book...

I came across this at Paragraphe the other day. The image on the cover caught my eye before I even realized what I was looking at, I knew I had seen this image somewhere else. But where?

It dawned on me as I glanced around – the economics and world affairs section of the bookstore is adjacent to the military history section, itself adjacent to general Canadian history. My mind connected the dots – I had seen this image in one of my father’s old war books.

A little bit of johnny-on-the-spot research confirmed my suspicions; the image is an interpretation of an old recruitment poster. Here’s the original:

The Torch

So here’s the deal.

A book promoting the Ayn Rand school of free market capitalism uses a Canadian Second World War recruitment poster produced by the National Film Board, which, if I’m not mistaken, was created specifically to generate government propaganda and diverse public education media during WW2 (post-war it was redeveloped into the world class film studio we know and love today) as its cover image – a dramatic and intriguing aesthetic embellishment to what I can only assume is little more than a high school sophomore’s praise for the apparent ingenuity of a highly individualistic brand of economics and anti-societal social organization.

Rand’s is an argument in favour of extreme selfishness and greed disguised as an appeal for individual humans realizing their ‘inner ubermensch’ and the protection of the purity of an individual spirit. As you might expect, Rand’s devotees worship her like a god and their affiliated websites read like those of evangelizing missions or self-help gurus.

Put another way, I couldn’t find anything but positive reviews of this book when I googled it, and furthermore all the reviews I did read were written by people affiliated with various Rand inspired think tanks.

They’ve got the market cornered, shall we say, when it comes to ensuring positive reviews of their own work. Objectivism in its finest form; praise from slack-jawed sycophantic reductionists. The followers of Rand are merely LaRouche aficionados you can take out in public, possibly to a cocktail party. Definitely more rhetorically put-together and conversationally competent, but driven purely by the irresponsible joy that comes with unabashed self-interest.

As I said, junior league philosophy that doesn’t ultimately hold much weight – Rand herself applied for medicare and social security in her old age, by which time her unflinching individualism had soured just about every relationship she ever had.

She died alone, living off the fat of the land, just like countless millions of other less fortunate Americans, then as today.

But let’s get back on point – the image.

It’s obvious why it was chosen – it’s a stark, minimalist interpretation of the Vimy Ridge Memorial in France, used (along with an out-of-context line from John McCrae’s In Flanders Fields, itself discussing the responsibilities of the living towards the dead) as a propaganda tool during the war. I don’t know how well you can make it out, but the Christian Cross on the side of the real-life memorial is itself less apparent but subconsciously still there, doubtless a shameful ploy to sucker in more readers with a poor knowledge of Weber’s Protestant Ethic theory. It’s perverse (to me at least) that modern-day American and Canadian social conservatives permit themselves to fawn over Rand like a minor deity without ever trying to untie the logical knot posed by Rand’s infamous in-your-face atheism.

But more on the poster…

It was produced by a crown corporation, by itself an egregious example of ‘big government’ (that is, by Objectivist standards) and further still doubtless the collaborative work of many artists employed, collectively, to preach rationing, sharing and cooperation during what was perhaps the most highly socialized era in Canadian history.

But hey, by now the copyright has expired, and rather than pay good money for an original artwork to grace the book jacket cover, the authors (themselves affiliated with the Ayn Rand Institute) instead demonstrated their utter, almost cynical disconnect some of the fundamentals of the philosophy they ostensibly espouse.

To put it another way, Ayn Rand probably designed a lot of her own book covers (and not just because she was self-published) and would be rolling around in her grave if she knew the authors had picked this particular cover.

Anyways, thought I’d share. I would still recommend giving an awkward sixteen-year-old a copy of The Fountainhead, but only because it’ll keep them off drugs until their out of high school.

Resurrect the Arrow: A made-in Canada solution to the F-35 problem.

The photo above is of two examples of the CF-105 Arrow, also known as the Avro Arrow, a supersonic jet fighter designed, built and tested here in Canada in the mid-late 1950s. It was a milestone in Canadian aviation and a great success for our high-technology industrial sector. The project was abruptly terminated in the late-1950s by the Progressive Conservative government of John Diefenbaker, who saw the project as emblematic of Liberal ‘big-government’ spending. Moreover, with the advent of long-range ballistic missiles and the launching of Sputnik (and subsequent Space Race) at the end of the 1950s, there was a widespread belief that ground and space based missiles would determine the strategic balance of the future. Thus the Arrow, the Iroquois engine and Velvet Glove missile system programs were all scrapped (literally, the aircraft were cut to pieces, engines smashed, blueprints burned in bonfires).

Avro Canada Ltd would go belly-up by 1962 as they had thrown almost all their efforts behind the project. Efforts to sell the Arrow or elements of the design to foreign nations were in fact prevented by Diefenbaker’s government (a Tory gov’t preventing free-market capitalism and over-regulating our high-tech and defence sector industries, funny) and many of the chief engineers would find work throughout the United States and Europe working for other major defence consortiums. Among others, former Avro employees would help design fighter aircraft in the UK, France and the United States, in addition to designing the Apollo Command and Service module. Indeed, as you can see from this Wikipedia entry Avro was involved in myriad state of the art technologies and were global aviation leaders.

A long time has passed since the Arrow program was cancelled. In its wake Avro would be sold to Hawker Siddeley (a British corporation), Canada acquired inferior American-built interceptors two years later (which employed nuclear weapons, not a popular move in Canada) and later, Canadair would take over construction and testing of Canadian-built versions of American-designed fighter models, including the Hornets we use today. It has been more than fifty years since we were so bold to dare develop our high-technologies sector by direct government investment and support as we once tried with the Arrow program.

And today, an opportunity has presented itself, one we seem to be very interested in squandering outright.

I don’t need to tell you about the multiple inter-related controversies surrounding the Harper government’s intention to procure 65 F-35 Joint Strike Fighters (check this out for all you need to know), but I will mention this; the plan currently involves leasing engines and weapons, providing service and maintenance contracts to non-military (perhaps non-Canadian) contractors and is already significantly over-budget given how few aircraft we’re to receive. Trudeau’s defence department ordered 138 Hornets between 1982 and 1988, and most of these aircraft subsequently underwent a total overhaul, update and modernization program about five years ago, leaving us with approximately one-hundred serviceable and still lethal aircraft. Furthermore, Canada has always used twin-engine, long-range fighters to defend our territorial sovereignty. The F-18 provided additional benefits, given that it was aircraft-carrier capable (meaning Canadian pilots could deploy from American carriers in time of war) and could fulfill multiple roles, such as interception, strike, close-support, reconnaissance etc.

The F-35 is an inferior aircraft to the F-18 in many ways, and what’s most maddening is that the F-35, at best, could only be a tactical alternative to F-18 (ergo, we deploy F-35s to bomb Libya and leave the F-18s to defend our airspace). Back during the Cold War this is typically how we operated, using two-types of multi-role aircraft, one for tactical missions and the other being used for more strategic defence roles. While the F-18s will need to be replaced by the end of the decade, replacing them with an unproven, still largely experimental and expensive fighter is obscenely irresponsible. Now while Canada has been involved in the F-35 project for some time, we have no legal responsibility to procure them, and it just so happens a more modern version of our current aircraft (The Super Hornet) is available, proven and could even be built here (given Canadair/Bombardier’s previous involvement in aircraft construction). That, or we could be bold and build precisely what we need in large enough numbers we can then re-coup production and R&D costs by selling surplus aircraft to friendly foreign nations.

What I don’t understand, however, is why a Conservative and apparent patriot like Stephen Harper isn’t chomping at the bit to realize a new Arrow. Frankly, you’d think this is stuff his wet dreams are made of.

What a hero he’d be for Canadian industry! What a great Canadian, correcting a terrible mistake from his party’s past. If only his head was in the game. What’s generally accepted is that the Arrow was the ideal fighter for Canada, and Canada is still just as involved protecting its airspace and conducting, and so we still require an aircraft with similar capabilities.

The recent discovery of a set of two Arrow ejection seats in the UK has re-ignited the persistent rumour that an intact Arrow may have been smuggled out of Canada and flown to the UK, possibly with Hawker Siddeley’s acquisition of Avro Ltd. In the years since the project’s cancellation, bits and pieces of Avro’s projects have turned up across Canada, including the Avro Car, the Avro jet-powered truck and many pieces belonging to the Arrow and Orenda Iroqouis engine projects. Enthusiasts have been trying to generate enough funds to re-assemble a working Arrow with the engines for years now, but without significant capital it is unlikely said enthusiasts will go much further than scaled-down wooden mock-ups. Stage props really.

Even if we don’t build new versions of the Arrow, at least give us the chance to build something for ourselves, to demonstrate our expertise and innovation. Our nation needs to be given goals, and the citizens must feel a tangible pride for what their nation accomplishes. Failure to involve yourself in the affairs of the People in this manner is negligent. So again I ask is it wise to allow our nation to procure the F-35? And would we rather deal with the consequences of that purchase, or create our own solution?

At the end of the day, you can’t assume you’ll get much vision from free-market enterprise. Someone must instigate a nation’s dreams.

Tramway Considerations for Montréal’s Birthday

So it looks like Richard Bergeron has his own ideas concerning our city’s 375th Anniversary, and has proposed 37.5 km of new tram routes ready-to-go by 2017. Apparently, a finance working group has been established, though precisely what this means is anyone’s guess. I would normally be more optimistic, but there’s a new cynic growing somewheres deep down inside me.

Bergeron has earned himself (somehow) a reputation as being something of a ‘tram nut’ (this is how he’s been reduced before – modern media can suck in its efforts to be overly personable). Back in the day, a more optimistic Bergeron was keen on a 250km, $20 billion tram system to cover most of the densely packed urban core of Montréal. If this seems like a lot of tramways, consider that as recently as 1959 we had about 378km worth of tram line throughout the city and some first and second ring suburbs. This was unceremoniously dismantled in `59 largely out of pressure from the American automobile industry (see Great American Streetcar Scandal).

Another recent proposal came about as part of a larger metropolitan transit plan, this time in 2008-2009, when Mayor Tremblay announced a far less ambitious plan of three lines of 20km. That plan was supposed to be complete by 2013.

Something tells me we’re not going to meet that deadline.

That said, Bergeron is persistent and (hopefully) involved in the new plan, though I wonder why not shoot for something far more complete, such as 375 kilometer’s worth. I suppose 37.5km will cause enough traffic headaches for the next six years, especially given how slowly and inefficiently we build these days. But no matter which way you cut it, this is something we desperately, definitely need.

Projet Montréal tram design proposal
Tram design proposal, Projet Montréal

That said, there are some key considerations we need to discuss.

For one, trams or trolleys? Are steel wheels on rails necessarily the better way to go? Or can rubber tyres provide a sensible alternative, better able to climb steep gradients? Rails will undeniably work better insofar as the tram lane is segregated from regular traffic, especially on long straight streets, such as Boul. René-Lévesque. However, climbing up Cote-des-Neiges road or Atwater might be better handled by a rubber tyre alternative. And consider as well that there are models that feature both steel wheels and rubber tyres, and can switch between.

Second, who will run this new transit system? Ideally, the STM runs the tram network as well as the buses and Métro, and as Bergeron has planned, the proposal is designed to intersect with existing Métro stations. A common fare and transfer system seems like a no-brainer, but this needs to be planned from the outset. The last thing we want is an expensive tram that requires a separate fare. This could be enough to kill the system entirely.

Third, will installing the system be enough to get people to give up on using their cars? Probably not without an expensive and effective mass media campaign and municipal bylaws regulating when cars can enter the city (however the city decides to define this is really up to them). In effect, this system may prove itself far more useful, if not overtly desired by the citizens, if we go so far so as to actually employ measures to keep people from driving their cars. Offering excellent service and clean trams is one way, convincing the citizenry they have a fundamental responsibility to each other to use public transit is an entirely different measure.

Fourth, and related to the aforementioned points, it may be wise to install trams on streets we intend to be new pedestrian axes – such as Ste-Catherine’s. Though business associations perpetually live in fear of street closures, road work and any other threat to the overwhelming predominance of motor vehicles on our city streets, the fact is that cities larger than our own have been able to mitigate environmental damage from mass automobile use by offering excellent public transit, with trams playing a vital role ferrying people quickly between the urban core and the first ring suburbs. I would not use Toronto as a model, incidentally, when there are so many European and other American examples to go by.

Point is if City Hall wants to really make this work, they have to provide an alternative they can enforce to the point where few will question the logic. That anyone today can feel justified in arguing against capital investment in new public transit initiatives is, in my honest opinion, a measure of our stubborn regressiveness. We need to exercise this demon from our collective conscience.

We simply can no longer afford not spending money on massive public transit projects. Furthermore, we need to grow some local government sack and start finding ways of compelling people to give up on the selfish act of using a car when cheaper, cleaner alternatives exist.