Archive for the ‘Canada’ Category.

Economic growth and social rights: the last 100 years

I highly recommend a fascinating history of how the role of government, attitudes towards social justice and economic development have developed and changed over the last 100 years particularly in the democracies of Europe and North America, given in a speech by Ed Broadbent at York University on Feb. 21.  I urge you to read it, and pass it on.

Broadbent quotes Franklin Roosevelt who said, “We have come to a clear realization of the fact that individual freedom cannot exist without economic security and independence.  Necessitous men are not free men.”

Canadian Budget January 2009

Sent to: The Hon. Jim Flaherty, Minister of Finance, Ottawa, ON

Dear Mr. Flaherty:

I hear that you are consulting widely prior to finalizing your budget proposals. I trust that you are giving adequate consideration to two groups of people: those whose life experiences and convictions are different from your own; and those who know poverty.

For at least the past thirty years I have been reading periodically that the poverty gap has been growing in real terms. Typically the information has stated that the 20% with the highest incomes have seen their average incomes rise by 20% or more over a 10 or 20 year period, while the incomes of the lowest 20% have remained the same or have dropped during the same period. This in spite of a unanimous resolution by the Commons to abolish poverty in Canada.

The numbers of the homeless have been growing in recent years. Many of these people are employable; many others are marginally so, but with proper support systems can become contributing members of society. More and more people – employed, underemployed and unemployed – are resorting to food banks, in a time when increasing numbers of us are financially unable to contribute to such voluntary organizations.

In the rural society of fifty years ago, we knew our neighbors and often cared for the needy through informal ways, and an unskilled or marginally employable person might contribute by tending a garden, chopping firewood or doing housework. Today, in our urban society in which we don’t always know those next to us, we have to organize and depend on government (at various levels) to support the needy.

Conditions on many Indian reserves have improved somewhat in recent generations, but the rates of unemployment, addiction, incarceration and suicide are still far higher than in the near-by majority communities. Settling of land claims proceeds tragically slowly, and industry takes advantage by developing on disputed land. The very progressive Kelowna Accord was garbaged by the Conservative government.

The average income of women who are working fulltime is still less than 70% of that for men; the situation has improved only slightly over several decades. Many single mothers are unable to get an education and so improve their lot, care adequately for their children and contribute fully to society; and another generation grows up, often ill equipped and disadvantaged.

Employment insurance has been largely decimated in recent years. We have heard recently of a couple, both of whom had lost their jobs, in despair and hopelessness entering into a murder and suicide pact; four lives were lost. I wonder whether these people would be alive today if EI had been maintained at the 1980 level.

I wonder also how many people have been robbed of the ability to contribute fully to society by the financial starvation of our educational and health care institutions and counseling services. We deplete our resources by our neglect.

In the meantime, we have more millionaires and billionaires than ever, taking more and more expensive junkets to distant places, and receiving exorbitant bonuses in addition to huge salaries. Surely no CEO needs to make more than fifty times the salary of his most humble employee. Such exploitation is tantamount to robbery and should be prohibited by law.

I am well aware of the need for a concentration of wealth and power if the wheels of industry are to rotate adequately. But surely such concentration can be achieved by other means. I am also aware that our largest trading partner – the elephant with us in the bed – does not have the levels of social programs that Canada has, and therefore is hard to compete with.

I do not have the knowledge and understanding to make concrete suggestions in this field, but I understand that there are some who do; that some world famous economists, such as Jeffrey Sachs, believe that we have the resources to feed the hungry and abolish starvation and save the planet, if only we have the political will. Over the years I have read recommendations by the Canadian Council of Policy Alternatives and other such bodies that criticize our system and make suggestions that sound good to me. And I am aware that about a dozen denominations of the Christian Churches in Canada cooperate in “Kairos”, an organization that studies and promotes social justice.

I am also aware that in Denmark, a land that does not have the extremes of wealth and poverty that Canada has, the population has recently declared its satisfaction with its country by a higher margin than any other population in the world, including Canada. (A well known Danish patriotic song, written about 200 years ago, holds up as an ideal a society in which “few have too much and fewer still too little.”)

I deplore the assumption that we have to bribe millionaires to get them to do their job. That is a shaky foundation for a society; witness the present economic depression.

We need to ensure that the most vulnerable are not made to bear the costs of the depression and of the mistakes and greed of the wealthy.

Sincerely yours,
Flemming Holm

Coalition and crisis

In the present situation in Ottawa, what is the Governor General to do?

1. The Conservative Government has apparently lost the confidence of the House of Commons. We have been told that this will be confirmed next week.  If it is, then the Conservative government is out.

2. There is a large group of elected members who have assured the Governor General that they are prepared to form a government.

3. If Harper wants to continue as Prime Minister, he will have to organize his own coalition.

Credibility and democracy in Canada

What a mess the world is in these days! (or is it just that I’m getting old and can’t keep up with the latest inanities?) The American Republican government has raised free enterprise, rampant capitalism and American exceptionalism to the status of a religion, and our ideology-driven Conservative government has bought into it hook and line – and the sinker is coming, I fear.

A year ago our government was saying that there was no financial crisis on the way, so eat, drink and be merry. Now they are saying that the government met the crisis a year ago and dealt with it then, so no further steps are necessary. Meanwhile, unemployment rates and the poverty gap are rising and food banks are busier than ever – or would be if we could afford to keep them stocked.

We have also been told that global warming and the environment are not important. Any day now, I expect to hear that they too have been dealt with while the country was sleeping. Meanwhile, the Arctic ice is melting, the polar bears are dying out, water tables are dropping, respiratory diseases are on the increase, and farms are going out of business. (Or is all this the fault of the previous Liberal government? – C’est la faute de liberal?)

We are told that it would be contrary to democratic principles for the other political parties to try to replace the present government with a left-of-center coalition. Is it democratic to continue to rule on the basis of principles rejected by the majority? Or to try to destroy an opposition party when it is vulnerable due to leadership problems?

The Environment and the Economy

For me, there are two main issues in this year’s federal election.

1. One is the environment. In recent years we have had ample evidence that the climate is changing. We have seen it in the extreme weather and the melting ice caps and glaciers, and in the disastrous flood problems in Louisiana, the Philippines and Bangladesh. We know that there have been a number of ice ages in the past, and periods of warming between them. We may not be able to stop these changes, but we can prepare for them and prevent the most extreme damage. It is high time that we prohibit building on flood plains, that we pay attention to our endangered shorelines, and that we act globally and help the poorer nations in their distress.

But much of the environmental problem is man-made. Increasing pollutants in the air, fewer trees and other plants to cleanse the atmosphere, increasing instances of asthma and other respiratory diseases especially among small children, growing smog problems in our cities, expanding deserts, increasing dependence on non-renewable resources such as coal and oil, all alert us to the possibility that within the next millennium human beings could become as extinct as the dinosaurs.

Still, in spite of the warning signals, we continue to depend on coal and oil, drive gas-guzzling cars, convert vegetable matter into biofuel, smoke tobacco and marijuana, and generally act irresponsibly. And the Government takes only half-hearted measures. I am reminded of Prime Minister Neville Chamberlain in 1938. He promised that there would be “peace in our time”. And of the false prophets crying “all is well” when destruction was at the city gates (Jeremiah 6:14). Denial is not an option.

Strong action is needed, and it may be that all the actions promised by all the political parties – cap and trade, green shift, carbon tax, mandatory emission reduction, taken together, will not be enough to stem the tide. In this campaign I suspect the politicians are afraid to admit the full extent of the danger and the necessity of strong action, for fear that they will lose votes. For the necessary action will be costly. Economic adjustment will drive taxes up.

2. The second issue is economic. I believe it was J.K. Galbraith who described our system as a ”horse and sparrow economy”: give a horse enough oats at the front end, and enough will come out at the rear to keep the sparrows happy. (I saw that picture played out many times when I was a boy, in the 1930s.) Another appropriate phrase is “a trickle down economy”. Our economic development is dependent on people who control large amounts of capital; the concentration of wealth enables the wheels of industry to turn; the benefits then trickle down to the masses.

Under today’s conditions this may be the best system available to our society, but I hate to think so. Unfortunately in a free market economy each business must compete with others, and this often means paying minimal wages and otherwise cutting costs. It means competing with other jurisdictions where the legislated minimum wage is lower or non-existent. Competition among powerful interests and powerful countries with other standards often makes it difficult for the most well-meaning managers to play fair with their employees and with their customers. It also interferes with pension funds and other benefits, whether these are employer or government related.

One function of government is to protect the poor and vulnerable against the wealthy and powerful interests. We do this in many ways: through the justice system, through free schools and health care, through disability and old age pensions, through laws governing minimum wages, and through human rights legislation. Such provisions are absolutely necessary, and the standards need to be raised. We need a Guaranteed Annual Income for everyone.

About 20 years ago the Canadian Parliament agreed unanimously to eradicate poverty. Since that time the poverty gap has increased; the rich have grown richer and the poor have lost ground. I hold that for any employer or CEO, or the head of any department or agency, to make ten times as much as his humblest employee is exploitation and sinful and should be prohibited. Nobody needs a half million dollar income, or a million dollar home; such affluence is shameful and obscene. I agree that effort and ability should be rewarded – but not to that extent.

Among the nations also, the wealthy countries have grown richer and the poor nations are poorer. To our shame. It is said that a billion of the world’s people have insufficient food and drinking water.

Whether nationally or internationally, we cannot depend on market forces – unbridled, profit-oriented capitalism – to eradicate poverty and build a better society. Our economy must be structured in such a way that everyone who can work will have a job at more than the present minimum wage, that those who cannot work will be able to live in dignity, that every child and youth can get an education and that everyone will have free and equal access to appropriate health care. The major cause of war and crime will then be eradicated.

I have read statements by world famous economists that it is possible to save the planet and humanity. But there will be a cost.

Environment and the equality gap – both can be fixed, if there is enough political will.

This is a difficult message to accept in this year of 2008. We are threatened in at least three ways. And when we are threatened, financially and otherwise, we tend to circle the wagons and protect ourselves and our kind.

For one, the crisis in the stock markets will result in losses, particularly for those who have investments.

Secondly, the recent tendency to extreme weather, particularly here in North America, means that someone has to pay the for the damages.

Thirdly, we are beginning to realize that the human race, and especially those of us in the western world, have been living beyond our means, and using up our resources faster than they can be replaced. One economist (Bill McKibben) is quoted as saying that if present trends of consumption continue, we will reach a level beyond the world’s capacity by 2050. He is quoted as saying that globalization has allowed people to live off others in far away places without having to absorb social costs. (Jon Magnuson in Christian Century, July 29, 2008). Other economists seem to agree. But from what I have read, they also agree that the world (and the human race) can be saved.

How will the cost be paid? How will the adjustments take place? I suggest we shall have increased taxation and belt tightening, and extension of a triage system which is already in operation. It will mean drastic changes and a reorganization of our social and economic system. This is no time to call for lower taxes.

One more thought: I believe it was Archbishop Romero who said that when he fed the hungry he was called a saint, but when he asked why they were hungry he was called a communist. He was assassinated. We too must ask why the poor are hungry.

Are we ready for the challenge? Do we have the political will?

Omar Khadr and the litmus test

Our Canadian Government holds that our complicity in Guantanamo Bay is the litmus test for our devotion to the American War on Terror. Is our complicity in American treatment of Omar Khadr and Maher Arar the litmus test for our devotion to justice?

Lewis Carroll describes a trial in which the verdict is pronounced first and the evidence presented later. Both cases – Khadr and Arar – sound like Alice in Wonderland. Or is it Malice in Blunderland?

What has happened to Habeas Corpus? To the Presumption of Innocence? To Due Process? To the protection of minors? To “Justice delayed is justice denied”? Is it possible that an innocent person is already being punished for his father’s misdeeds? If Omar is found not guilty, should he be compensated for his years of incarceration – like Stephen Truscott?

It is said that it is better for one criminal to go free than for an innocent person to be unjustly punished. Our justice system, hard won through the centuries, is being sacrificed on the altar of fear and expediency. If the trend goes any further, we are all in danger.

Caesar’s wife and Mme Couillard

The Rt. Hon. Stephen Harper, Prime Minister.

Ottawa

Dear Sir:

“Caesar’s wife must be above suspicion”

- Plutarch (46-120 A.D.)

The ancients knew it.

The federal government seems to have forgotten.

Holm on Homes

So, it will cost ten million dollars to renovate the Prime Minister’s residence at 24 Sussex Drive. This, while hundreds of thousands of Canadians would be happy to live in a two hundred thousand dollar house, and thousands more are homeless.

I have a suggestion. Buy or build a two or three million dollar home, and add a million dollars worth of security equipment. Then sell 24 Sussex Drive to the highest bidder.

The savings can be used to provide accommodation for the homeless.

Published in the Chronicle Herald, approx. May 2008

Tax equity

To: The Hon. Jim Flaherty, Minister of Finance, Ottawa

Dear Mr. Flaherty:

I am enclosing a copy of an article that appeared in today’s Halifax newspaper, stating that, of the Canadian people, “the top one per cent pay total tax rates as much as six percentage points of income lower than families in the middle. . . . the richest one per cent of families also now pay a lower tax rate than the poorest 10 per cent.”

Is this true? If so, what does it mean? Does it mean that we have to emulate the US in everything? Does it mean that Canada does not have economic freedom? Does it mean that you as Minister of Finance are dancing on a tightrope both ends of which are being held by the United States? Does it mean that we have to pay millions to a group of robber barons, bribing them to keep the wheels of industry turning and the masses in penury? Who constitute the real government of Canada?

If it is true, does it mean that government policy is more and more undermining the independence of the average person and forcing the poor to depend on foodbanks and secondhand clothing stores? It reminds me of France in the 1780s, and of the Roman bread and circuses. This in a time when the poverty gap is growing.

The poverty gap and taxes

An article appeared in today’s Halifax newspaper, stating that, of the Canadian people, “the top one per cent pay total tax rates as much as six percentage points of income lower than families in the middle. . . . the richest one per cent of families also now pay a lower tax rate than the poorest 10 per cent.”

Is this true? If so, what does it mean? Does it mean that we have to emulate the US in everything? Does it mean that Canada does not have economic freedom? Does it mean that the Minister of Finance is dancing on a tightrope both ends of which are being held by the United States? Does it mean that we have to pay millions to a group of robber barons, bribing them to keep the wheels of industry turning and the masses in penury? Who constitutes the real government of Canada?

If it is true, does it mean that government policy is more and more undermining the independence of the average person and forcing the poor to depend on foodbanks and secondhand clothing stores? It reminds me of France in the 1780s, and of the Roman bread and circuses. This in a time when the poverty gap is growing.