Saturday, April 25, 2009
A battle-hardened James charges on, leaving her minders behind her
By Justine Hunter
From
Friday's Globe and Mail
April
24, 2009 at 5:40 AM EDT
... Ms. James acknowledged she is facing more pressure this time around. And she sounded frustrated that she still is confronted at every turn with the baggage of former NDP governments.
"We are a long way from getting past that polarization," she said. "I truly don't believe that our province is going to grow up and be a real player until we get past that." ...
............................................
Though recent scandals and polls seem to be
hurting the BC Liberals, I still believe that they will win a handy
victory over the NDP.
The Liberals laid the foundation for their likely victory many years ago, when they worked to appopriate as much of the environmental agenda as possible. Through a series of initiatives, from the carbon tax to household renovations to small car rebates, they have worked to create an impression that they are an environmentally conscious government. Whether these initiatives are truly substantive or effective remains to be seen. Recent polls suggest that they still continue to follow the NDP and Greens on environmental trustworthiness. Nevertheless, they have blunted the NDP attack on the environment, and have made a few allies like the Suzuki Foundation. The NDP, in response, has offered a fairly muddled cap-and-trade alternative (though admittedly it gets little detailed coverage in the corporate press). The point is this: the Liberals have broached new ground, and have managed to steal some thunder from their opponents.
The NDP, on the other hand, have not broached new territory. They continue to reiterate their commitment to public education, public health, welfare, the environment, etc. Unfortunately, this is preaching to the converted. Their supporters already know these are the NDP's (perceived) commitments, so why regurgitate what everyone already assumes? Where is a new emphasis on economic policy, a topic that's traditionally dominated by a right wing perspective? The NDP does have many good economic arguments to make, but they seem disinterested in the topic. For example, they should have a hundred different arguments ready to defend the last NDP governments, whose economic records were much better than the Liberals and Canwest give them credit for. If James thinks that this can be wished away as mere "polarization", then she's really not up for the job. The NDP record needs to be addressed head-on, effectively and repeatedly. There should be an entire war room dedicated to responding to right wing propgaganda about the 90's. But no, James says we should grow up. Wishful thinking, perhaps?
The problem for the NDP is this: in BC's political landscape, the leading left wing party usually gets between 35% to 45% of the vote, while the leading right wing party gets the balance. So the math doesn't favour the NDP. The best the NDP can hope for is that the right wing vote is split. In fact, every NDP victory in BC, from Dave Barrett's government onward, has been because of a significant split in the right side of the spectrum (often because the right wing party has overstayed its welcome). Unfortunately for Carole James, the only real split right now is on the left side, protestations from the Greens notwithstanding. So, if anyone needs to blaze new paths, it's the NDP, not the Liberals. But since the NDP seems unwilling to do this, the result seems preordained. No new supporters, like moderate Liberals who are disaffected by Liberal mistakes, will be found, and the math will continue to haunt the NDP.
If the NDP are not prepared to tackle
economic policy as their central policy issue, then an election like
this - where the economy is very important - seems tailor made for
another right wing victory. I'll grit my teeth and vote NDP (again), but
it won't be because I'm happy with their current electoral performance.
Edited on: Wednesday, April 29, 2009 6:23 PM
Categories: BC Politics, The Economy, The Good, The Bad, and the Stupid
Debts and deficits lead to higher taxes as night follows day
Jeffrey Simpson is one of those typical right-wing columnists who ensures The Globe and Mail's firm commitment to the I'm-all-right-Jack philosophy that pervades Canada's corporate media. Nevertheless, he is sometimes capable of refreshingly honest and atypical commentary. Here he talks about the inevitability of higher taxes that must follow a period of high debt. What is irritating - yet so predictable - is the lack of responsibility that he and his fellow corporate columnists take for the "twilight zone of veracity" that he decries below. Why can't politicians talk about raising taxes? What has happened to our "political culture" that makes paying for our expenditures (or exhorbinantly high interest rates, like in the 1980's) so poisonous? Given the concerted campaign from the CD Howe and Fraser Institutes (among others) for lower taxes, and the willing championing of this cause by the media arms of Hollinger, Canwest, Bell, etc, isn't the corporate media part of this problem? If one is skeptical, compare the number of articles in any given month that discuss the benefit of taxes with those articles that assume we must lower taxes. Anyone who consumes a lot of the corporate media in North America already knows the result. In any case, no answers are given by Simpson. All we see is his acknowledgement of the problem. And I guess that's better than nothing.
................................
Debts and deficits lead to higher taxes as night follows day
By Jeffrey Simpson
http://www.theglobeandmail.com/
April 24, 2009
Lesson one for Liberal Leader Michael Ignatieff: Don't answer hypothetical questions in a sound-bite era. Lesson two: Don't even hint at the truth.
Last week, in answer to a question about what he might do if the federal deficit reached $80-billion, Mr. Ignatieff said he couldn't take any policy options "off the table," including raising taxes. Boom, the media pack went into action, and the Conservative yapping brigade hit him for espousing higher taxes. Such is political life.
Mr. Ignatieff did not call for higher taxes; indeed, he stressed that "no one in their right mind wants to shut off the recovery by raising taxes in any capacity." But in ruminating about the hypothetical, Mr. Ignatieff danced around a certain truth: Taxes will eventually go up to pay for the deficit and increasing debt brought on by the recession and government responses to it.
The Harper government has forecast $64-billion deficits in the next two years. Forget about it. They will be higher, because the economic circumstances are gloomier than anticipated. The Western world is awash in debt, led by the United States, whose projected deficits are astronomical, whose financial-sector debts are gigantic, whose personal indebtedness is enormous but whose political culture still refuses to acknowledge that, at some point, the piper must be paid.
As long as the United States refuses to face this fact, it will struggle to recapitalize itself. And as long as that recapitalization is delayed, the country's long-term economic future will be cloudy and the relative decline in which it now finds itself will continue.
High debts and ongoing deficits lead to higher taxes as night follows day. Canadians should know this truth. That was the Canadian experience once federal deficits began in the mid-1970s. The Mulroney Conservatives and, in their early years, the Chrétien Liberals raised taxes (and cut services) because there was no other realistic way to fight the Siamese twins of ongoing deficits and higher debts.
There was plenty of nonsense in those years about solving the problem with industrial strategies, pro-growth measures, eliminating "waste" in government spending, laying off civil servants. Everyone who wanted to avoid hard truths had a formula, just as so many do today. Eventually, the truth hit home, as it will after this recession. That Canada is heading toward more debt will merely increase the subsequent tax load. But, of course, politicians live in the twilight zone of veracity, suspended between what they know privately to be right and what their instincts and handlers tell them the political culture will allow.
So neither Mr. Ignatieff nor Prime Minister Stephen Harper will tell the whole truth about what lies ahead, in part because the truth will play itself out long after the next election. And since the country's economic literacy is so low, there is no point allowing your political opponent to embark on a scare campaign.
Deficits are dangerous for liberals, but especially hard for conservatives, to talk about sensibly. A mantra of conservative parties is that deficits are bad, but the way they govern invariably produces deficits, or at least weakens the fiscal position of the government.
This observation is heretical to conservatives and counterintuitive to others, but the evidence in Canada and the United States bears it out.
In opposition, then in office, conservatives promise lower taxes, and try to deliver them, as the Harper Conservatives did with their two-point cut to the GST that cost the treasury about $12-billion.
Having eroded the government's fiscal capacity, conservatives then promise to eliminate "wasteful" spending. When that effort produces meagre results, as it always does, the government either cuts programs (but never enough to make up for the tax reductions) or lets spending proceed apace, as the Harper crowd has done.
Twenty years of Republican administrations under three presidents followed this formula: a political campaign based on lower taxes and an attack on "wasteful" spending, followed by lower taxes but higher spending, with resulting chronic deficits.
Deficits of the kind conservative parties
left in Saskatchewan, Ontario and Ottawa (Alberta was the exception
because of energy royalties) also suggest that deficits and
conservatives go together, rhetoric notwithstanding.
Edited on: Saturday, April 25, 2009 1:27 PM
Categories: American Politics, Canadian Politics, The Economy, The Good, The Bad, and the Stupid, The Media
Sunday, April 19, 2009
Michael Ignatieff's Latest Book
Though I remain undecided about Michael Ignatieff's leadership abilities, his family history and intellectual credentials are undeniably fascinating.
The following is a recent article in The Globe and Mail, in which Michael Valpy reviews Ignatieff's latest book, Four Generations in Search of Canada. The book focuses on Ignatieff's maternal family, the Grants, and it appears as interesting as Ignatieff's paternal Russian family.
Michael Valpy: Portrait of a patriot?
One of the more fascinating elements of the book, as described by Valpy, is Ignatieff's relationship with his uncle, George Grant. One of Canada's great philosophers, Grant is best known for his Lament for a Nation. Grant represents an almost extinct tradition: Red Tory conservatism. This is much closer to traditional conservatism than the conservatism of Brian Mulroney and Stephen Harper. It reflects a communitarianism that is not all that different from Canadian social democracy. (Not surprisingly, Lament's anti-Americanism continues to attract unabashed Canadian nationalists, most of whom are - unlike in the United States - on the left side of the political spectrum.)
The 1960's and 70's was clearly a pivot point for Canadian politics: before this era, the Conservatives were generally pro-British and anti-American (e.g. Borden's fight against reciprocity in the 1911 election; Diefenbaker's refusal to place American missiles in Canada). The Liberals, on the other hand, were champions of free trade and continental integration (Laurier and Pearson come to mind). After this era, however, Canadian conservatism shifted to neo-liberal integration, and the Liberals, under Pierre Trudeau, became much more suspicious of American intentions. To be sure, the Liberal Party waffled, and continues to waffle, over free trade, but its more left wing elements inherited many of the communitarian suspicions of unbridled, technocratic American capitalism. That's why the definitions of Canadian liberalism and especially conservatism are so difficult to nail down. They've changed over time, and are often a complete reversal of former meanings.
Ignatieff appears to inherit his uncle's communitarian spirit and nationalism, but not his uncle's pessimism and negativity toward American capitalism. Ignatieff, according to Valpy's article, seems to be following a typical Liberal line: try to take the best of other traditions and appeal to as many Canadian voters as possible. We shall see.
Here is the G & M chart that explains Ignatieff's connection to the Grant family:
Edited on: Sunday, April 19, 2009 8:03 PM
Categories: Canadian Politics
Saturday, April 18, 2009
Donald Brittain's The Champions
My favourite documentary on Canadian politics is Donald Brittain's The Champions. The three-part series explores the epic struggle between Rene Levesque and Pierre Trudeau, and their efforts to bring forth a sovereign Quebec and the Charter of Rights and Freedoms, respectively. The series does a wonderful job of capturing the atmosphere of the 60's, 70's and early 80's, and succeeds at dispelling the myth that Canada's history and politics are boring. This is gripping stuff, and it will be worth the time you spend watching it.
http://www.nfb.ca/playlist/champions-series/
Edited on: Sunday, April 19, 2009 1:28 PM
Categories: Canadian Politics
Friday, April 17, 2009
World Economic Forum
In a world where economic discussion is still overwhelmed by neo-liberal cant, it's refreshing to see a generally pro-business organization capable of seeing competitiveness and productivity in (somewhat) broader terms than Milton Friedman's disciples. The World Economic Forum is a Swiss-based think tank that promotes international dialogue on a variety of key global issues. Perhaps the Forum's biggest contribution is its annual competitiveness rankings. Unlike traditional right-wing economic observers, the WEF agrees that competitiveness is based on a wide variety of factors that go beyond the traditional neo-liberal pillars of low taxes and deregulation. It defines competitiveness as "the set of institutions, policies, and factors that determine the level of productivity of a country." These elements include such things as financial stability and market efficiency, but also health and education, reliable political institutions, and technological readiness. Its not exactly a left-wing menu of economic analysis, but it certainly goes beyond what we see from the ideologues at Fox News, the Fraser Institute or the Heritage Foundation.
Though the USA is traditionally strong in these rankings, so too are countries with high business, income and sales taxes, and large social safety nets. According to neo-liberals, this can't possibly be true. Workers in competitive and productive economies should give much and expect little, and be grateful that the upper class is doing so well. Or so the story goes.
Rankings 2008-2009 Top Ten |
|
For more information, visit the World Economic Forum's website:
http://www.weforum.org/en/initiatives/gcp/Global%20Competitiveness%20Report/index.htm
Edited on: Sunday, April 19, 2009 1:29 PM
Categories: Global Issues, The Economy
Tuesday, April 14, 2009
Torturing Democracy
The following is one of the best documentaries I've seen about the Bush administration. I first saw "Torturing Democracy" on PBS, but it's now available as a three-part streamed video.
We may all be tired of the Bush era, but this concise, chilling and very well-documented exposé of the Bush's War on Terror is a classic example of how the means often determines the ends. Totalitarian methods cannot lead to democracy; they only leads to deeper hatred and greater terror. And, it would appear, torture can't even obtain good intelligence.
......................
National Security Archive Update, April
14, 2009
"Torturing Democracy" Wins RFK Journalism Award
http://www.nsarchive.org
Washington, DC - Today, the Robert F. Kennedy Center for Justice and Human Rights announced that "Torturing Democracy" has won a Robert F. Kennedy Journalism Award for domestic television and is a finalist for the grand prize. Produced and written by eight-time Emmy winner and National Security Archive fellow Sherry Jones, the RFK Center called the documentary film on the Bush administration's interrogation and detention policies "the definitive broadcast account of a deeply troubling chapter in recent American history."
http://www.gwu.edu/~nsarchiv/torturingdemocracy/program/
or
http://www.torturingdemocracy.org/
Edited on: Tuesday, April 14, 2009 6:56 PM
Categories: American Politics, The Good, The Bad, and the Stupid
Sunday, April 12, 2009
A Lapse of Truth in the Gaza War
The recent Israeli campaign in Gaza officially began on December 27, 2008. It started with many days of aerial bombardment of the Gaza territory, and then intensified on January 3, 2009, when the Israeli army invaded. 13 Israelis and over 1,300 Palestinians were killed in the fighting, which finally ended on January 21, 2009, when Israel withdrew its forces from the Palestinan territory. For a summary of the war, see the following:
http://en.wikipedia.org/wiki/2008%E2%80%932009_Israel%E2%80%93Gaza_conflict
One of the really fascinating aspects of the war was who the western media portrays as the aggressor; not surprisingly, they blame the rocket-firing militants of the Hamas. There's a problem with this claim. It isn't true. The first side to break the June 2008 ceasefire was Israel. On Nov. 4, 2008, the Israeli military crossed into Gaza and destroyed what they claimed was a Hamas tunnel. The Israelis killed 6 Hamas militants in the raid.
Of course, something else was going on on November 4th: the American election. So, while the New York Times did report the raid, it was clearly a day when that piece of news would be forgotten by the euphoria of the election. Indeed, the news item is so generic that it hardly emphasizes the raid as the first major violation of the June ceasefire.
Moreover, it didn't stop major new organizations in the West from blaming Hamas when the Israelis started their invasion 7 weeks later. Even though most of the rocket attacks occurred after November 4, 2008, these attacks were the prime reason for laying the blame on Hamas. On Dec. 29, 2009, the New York Times argued that "Israel must defend itself. And Hamas must bear responsibility for ending a six-month cease-fire this month with a barrage of rocket attacks into Israeli territory." The vast majority of other major western newspapers concurred, and since then most of the focus has been on Hamas' culpability.
A significant contrarian view came from the official UN Report, but of course Israel, the US and the western media condemned it:
http://www.unhcr.org/refworld/docid/48e5e2be2.html
Though the twisting of this story has been noticed by many people in the alternative press, I first heard about the inconsistency via, of all places, CNN (though CNN has since ignored the issue, and even in this report one of the commentators tried his weaselly-best to mitigate the impact of Israel's responsibility):
The connection to the American election was pointed out to me on a Rabble.Ca podcast. I strongly recommend it:
http://rabble.ca/podcasts/shows/redeye/freedom-speech-under-siege
Edited on: Tuesday, April 14, 2009 7:19 PM
Categories: American Politics, Global Issues, The Media
Saturday, April 11, 2009
Provincial deficits for 2009/2010
Here are some interesting stats re: provincial deficits. We see that Alberta has a huge per capita deficit, thanks largely to Alberta's reliance on irregular resource and exploration taxes, and not on more stable income and sales taxes. This is a good example of how debt and deficits are as reliant on what you tax as how much there is to tax in the first place (e.g. GDP).
.......................
O'Neill, Katherine and Dawn Walton. "Healthy
savings and no debt will save Alberta." The Globe and Mail, 9 April
2009: A6.
Edited on: Saturday, April 11, 2009 3:14 PM
Categories: BC Politics, Canadian Politics, The Economy
Friday, April 10, 2009
The giant Ponzi scheme that is Florida
Florida used to be the golden child of free-wheeling neo-liberal capitalism: low taxes, little regulation and scant attention paid to the future. But now that people need help from their government, Floridians are reaping what they (didn't) sow. Here's a selection from a recent article:
..........................
By Neil Macdonald
CBC News
http://www.cbc.ca/world/story/2009/03/10/f-rfa-macdonald.html
... Gary Mormino, a professor at the University of South Florida, has compared the economy here to a giant Ponzi scheme, the confidence game in which investors are paid with the money of new investors.
The Ponzi State. The phrase is catching on and it's making Mormino famous.
He says Florida's economic setup has always depended on ever more people, often retirees on fixed incomes, arriving from out of state with money to spend. Since 1970, the state has grown by an average of 350,000 new residents a year — or a thousand a day. To accommodate them, politicians in Tallahassee basically let developers build whatever they wanted just about anywhere they wanted. Usually, that has meant apartment towers and minimally inspected cinder-block homes on concrete slabs. The construction barely paused and neither did the waves of tourists — as many as 80 million vacationers a year, all ready to pay hotel taxes and rental taxes and restaurant taxes and sales taxes.
Now, everything's flat. In fact, more residents might be leaving than arriving. And the tourists are staying away. For Mormino, Florida is just a palm tree fantasy with a tax structure "that was insane." And now, he says, "we're paralyzed." Unemployment is nightmarish and rising. Tax-hating Floridians, turning to their government for help, are finding a stunted, business-driven entity with nothing to offer. "When people began looking behind the palm trees and into the account books," says Mormino, all they discovered was "massive fraud and lack of oversight." ...
Edited on: Saturday, April 11, 2009 12:32 PM
Categories: American Politics, The Economy, The Good, The Bad, and the Stupid
Monday, April 06, 2009
Resource financings keep Bay Street flush
Here are some telling statistics that help describe the magnitude of the American economic tailspin:
.....................
BOYD ERMAN
From Monday's Globe and Mail
April
6, 2009 at 4:19 AM EDT
Take that, Wall Street.
Bay Street bankers are finding themselves in the unprecedented situation of being just as busy selling stock as New York financiers, with Canadian companies raising almost as much money so far this year as those based in the United States.
Canadian companies raised about $9.2-billion selling stock in the first three months of 2009, according to figures from Thomson Reuters. That's just behind the $9.6-billion raised on U.S. markets - with both figures calculated on the same basis and in Canadian dollars to make them comparable.
Usually, Canadian common stock sales lag far behind U.S. levels, given that the United States is much more populous and has long been the centre of the financial world.
The fact that Canada closed the gap in the first quarter is less a story of this country's stellar performance and more about the dismal state of U.S. markets. Companies in the United States have all but shut down fundraising on stock markets amid the last year's unprecedented volatility.
In Canada, the value of common shares sold was little changed from the first quarter of 2008. Business held up thanks to a spate of gold and energy deals, a sale by resource-hauling Canadian Pacific Railway Ltd. and one big financial stock sale - the unloading of a big stake in ING Canada Inc. by the insurer's parent company in Holland.
Add in $5.2-billion of preferred shares, mostly sold by the country's banks, and it was the best quarter in the past two years, said Roman Dubczak, who heads the department that arranges stocks sales at the securities arm of Canadian Imperial Bank of Commerce.
"On a global basis, outside of financials, the deals that are getting done are resource-based, and because of the heavy resource bias in Canada they're getting done here," Mr. Dubczak said.
In fact, Canada's steady performance
counted for a big share of all the global stock sales in the quarter,
which totalled $47.3-billion (U.S.)....
Edited on: Monday, April 13, 2009 4:32 PM
Categories: Global Issues, The Economy
With economy so bad, Bank of Canada my revert to printing money
Didn't they try this in Germany after World War One? Perhaps I'll need to be more cautious when I gloat about my variable rate mortgage!
Of course, in Germany, there was a real shortage of goods and resources, as Germany was directly stripped of much of its resources by the Treaty of Versailles and by the requirements of reparation. Printing too much money was only one part of the story. In North America, for the moment, a shortage of resources and goods is not the problem. Hopefully Joseph Stiglitz is right: the relationship between inflation and money supply growth is weak when inflation is low. In other words, printing a lot more currency will not lead to hyperinflation IF the situation isn't aggravated by an increasing scarcity of resources. If so, we might be able to ramp up the money press for the time being without negative consequences. Nevertheless, I wonder if investors, especially major overseas institutions like sovereign wealth funds, will continue to hold large American investments. If they leave for greener pastures - and countries that will not devalue their investments - the American and Canadian economies could be in even worse trouble than they are now. Regardless of low inflation, we would probably be confronted by rapidly rising interest rates as the central banks attempt to recapture foreign investors.
......................................
By Julian Beltrame, The Canadian Press
Mon
Apr 6, 6:10 PM
OTTAWA - With economic recovery still looking shaky, the next move by the Bank of Canada may be to just start printing money.
Increasing the money supply, or quantitative easing as the term is known, has become the latest and perhaps last major tool open to central bankers to try and spark some life into the stalled engine of their economies.
The price can be high. Devaluation of the loonie and run-away inflation down the road. But, with economies running on empty, central bankers are inclined to focus more on solving the real mess at hand than theoretical messes of the future, say economists. "Printing money," says CIBC chief economist Avery Shenfeld, "looks like the key ingredient in preventing a global recession from tipping into a lasting depression."
Bank of Canada governor Mark Carney opened the door to quantitative easing last month when he cut the overnight rate to 0.5 per cent, all but emptying the chamber on the central bank's ability to directly impact interest rates. And although he appeared to close the door part way in a speech last Thursday, economists say it's unlikely Carney would have sent the signal in the first place unless he intended to carry through.
They note that nothing that has happened in the economy since Carney's original pronouncement would likely have changed the game plan. If anything, the prospects for a quick and strong recovery appears to have receded. "This is not going to be a V-shaped recovery," said Derek Holt of Scotia Capital Markets, referring to the traditional quick updraft that often follows a sharp downturn. Canada is getting the sharp downturn in spades, with estimates of an up to nine per cent contraction in economic activity in the first quarter of 2009, a post-Great Depression record. But the updraft is increasingly being discounted - the Organization for Economic Co-operation and Development now says Canada's economy will be flat at best in 2010.
Even Carney, who a few months ago held out hope of a strong recovery, warned last week that the potential for future world growth has become more muted, suggesting the same is likely true of Canada. "In the next few months, we're going to see the worst of the lag effects from U.S. supply chains catching up to Canada," predicted Holt. "And also, there had been a labour hoarding going on for much of last year because many Canadian businesses thought this was a U.S. problem and held on to their workers. Now you are going to get total capitulation by employers."
The economist is looking for another 80,000 jobs contraction to be reported on Thursday, which would bring total losses to 375,000 since October. Monday brought further evidence that the smattering of encouraging signals recently may be a mirage, as Statistics Canada reported the value of building permits plummeted by almost 16 per cent in February, four times worse than expectations. The Conference Board also downgraded its growth forecast for Canada to a negative 1.7 per cent, which is actually far better than the output contraction of between 2.5 per cent and three per cent envisioned by many other private sector economists.
Avery believes the fact the U.S. Federal Reserve and the Bank of England have started up the money printing presses to buy up government treasury bills and other market assets in order to free up credit makes the decision easier for Carney.
But with Canada's banking system still mostly functioning, Carney won't go nearly as far and may even devise a Canadian-made middle ground that allows him to achieve the benefits of quantitative easing - lower borrowing costs for consumers and businesses - without pumping up the money supply. The central banker could withdraw from the overnight market as much money as he needs to buy up such assets as treasury bills, and such non-bank assets as corporate bonds, or pools of auto leases and credit card credit, said Avery.
Other economists see Carney being bolder, although with the Bank of Canada's pre-occupation about keeping inflation at two per cent, they doubt he will go as far as the United and Britain. "When you start printing money willy nilly, you are flirting with a serious inflation issue down the road," explained Bank of Montreal economist Douglas Porter.
"Inflation is the least of anybody's concern in the immediate time, but we're running an experiment we haven't done in the post-war period, so I don't think anybody can say with confidence it won't eventually spark inflation."
Edited on: Monday, April 06, 2009 7:34 PM
Categories: Canadian Politics, Global Issues, The Economy
Saturday, April 04, 2009
B.C.'s highest court rules that Adbusters Media Foundation can sue CBC and Global TV
By Charlie Smith
April 4, 2009
www.straight.com
Vancouver-based Adbusters Media Foundation has won an appeal in B.C.’s highest court to add the Canadian Broadcasting Corporation as a defendant to a lawsuit against Global Television Network Inc. and Global Communications Limited.
In a unanimous three-member decision released Friday (April 3), the B.C. Court of Appeal overturned a previous B.C. Supreme Court ruling tossing out the foundation’s case against Global. This allows the case to proceed in B.C. Supreme Court.
The foundation, which publishes Adbusters magazine, brought the action because Global and CBC have refused to broadcast its paid anticommercial messages on the same terms as other ads.
The foundation claimed that the decisions by the CBC and Global violated its right to freedom of expression under the Canadian Charter of Rights and Freedoms.
Writing for the B.C. Court of Appeal panel, Justice Ian Donald stated that Adbusters had based its argument on the Broadcasting Act's declaration that radio frequencies are public property.
The panel disagreed with B.C. Supreme Court Justice William Ehrcke's 2008 ruling tossing out the action because it was “bound to fail”.
In this earlier decision, Ehrcke also refused an application by Adbusters to add CBC as a defendant.
According to Ehrcke’s ruling, Adbusters prepared 10 broadcast-quality ads focusing on fast food, fashion, the beauty industry, the use of sex and violence on television, and the commercialization of society.
Global refused to run nine of them; CBC accepted some ads for restricted airing, but wouldn’t put them on CBC Newsworld or the main CBC network during news or current-affairs programming.
In 1995, Adbusters unsuccessfully argued that the CBC violated its charter right by refusing to broadcast anti-advertising advertisements. Ehrcke relied on this decision when he issued his ruling.
In recent years, court decisions have suggested that the constitutional right to freedom of expression exists in certain areas under “public control”.
The Canadian Federation of Students and the B.C. Teachers' Federation won a B.C. Court of Appeal decision in 2006 declaring they had this right when it tried to buy political ads on public buses.
The Supreme Court of Canada still hasn't issued its decision after TransLink filed an appeal.
However, the Supreme Court of Canada ruled in 2005 that a Montreal strip club had a charter right to freedom of expression when it broadcast music and words from a loudspeaker onto the streets.
“As such, it [the public-control argument] deserves further consideration in the course of this action," Donald wrote in the April 3 Adbusters ruling, "and it cannot be said to be plain and obvious that when the theory is applied to the facts asserted in the pleadings the action is bound to fail.”
Edited on: Monday, April 06, 2009 7:59 PM
Categories: BC Politics, The Media
Thursday, April 02, 2009
With capitalism on its derriere, the left still gets no respect
Though it's nothing new to those who analyze Canada's media industry, the right-wing and pro-business nature of Canada's media may not be understood by the average Canadian. The following is a fairly surprising op-ed from Lawrence Martin, a stalwart with BCE's The Globe and Mail (which, as Canadian political scientist Rand Dyck has observed, "tends to set the agenda" for "top-level decision makers and media executives"). Martin's piece essentially confirms what critics of Canada's media system have been arguing for decades: there really isn't a left-wing, progressive media voice in this country, unless you make an effort and seek out under-funded sources that are well beyond the mainstream. This lack of voice is the flip-side of another reality: Canada has one of the most concentrated media industries in the western world (except maybe Italy), and Vancouver might be the most monopolized media market on the continent.
The comments regarding CBC are particularly interesting, as our federally funded broadcaster is often cited by conservatives as proof of media diversity. Apart from the fact that the CBC lacks any newspaper - the preferred choice of the 20% of Canadians who follow politics on a daily basis - CBC TV has serious ratings problems. This can be confirmed by BBM Canada, Canada's main surveyor of media viewership. And, as Martin points out, CBC TV's key news celebrities are definitely not steering us to port.
What is still unclear is the impact of progressive media voices that take advantage of new technologies. CBC's website is apparently well used, but it doesn't appear to be anymore left-wing than its television cousin, and is certainly not as strident as The National Post is on the other side of the spectrum. There are other promising progressive voices, but nothing like The Nation in the United States or the The Guardian in the United Kindom. Included on my blog are links to progressive news sources (along with some not-so-progressive sources), and I can only hope that they will effect a positive change in the future.
By LAWRENCE MARTIN
From Thursday's Globe and Mail
April 2,
2009 at 12:00 AM EDT
These are - or should be - heady times for the political left. It's when the big economic engines falter that bleeding-heart parties surge. It was in the 1930s when the CCF, which later became the NDP, was born. Even our Communist Party enjoyed some popularity then.
With today's economic tremors, government activism is the big deal everywhere. The New Democrats couldn't ask for a better philosophical turn.
And yet, they're stagnant. In the low teens in the polls, they have actually lost ground since last fall. It's hard to figure. They were onto the economic file early, issuing dire warnings and calls for action. And it turns out they were on the mark a good deal of the time, occasionally even prophetic.
But there are no apparent dividends in Dippersville. No groundswell of support. Few praiseworthy headlines. No heightened profile in a media wedded to the two main parties. Without a media proprietor of any size in Canada hailing from the left, there is no one to sing the NDP's song.
So even with capitalism on its derrière, even with the Liberals opening up space by moving more to the centre, the left gets no traction. Jack Layton can stand there all day and pound the blue-collar bible and get only minor mention in the next day's press.
Charlie Angus, the Northern Ontario NDPer and one of the best MPs in the Commons, wonders what the party has to do to get credit. "We stood here year after year being ridiculed when we warned of the dangers of deregulation, or when we talked of the need to have a backup plan for pensions. We pressed the government on the need to have an auto-sector strategy and that was something that was absolutely ridiculed by the Conservatives. It was the same with infrastructure spending."
On Afghanistan, Mr. Angus noted how the New Democrats were the most skeptical in Parliament. "I mean we were attacked in the newspapers for saying where's the long-term plan, for saying how are we going to win this, for saying we can't win this strictly militarily." On Iraq, Mr. Angus added, it's been much the same.
All in all, not a bad record. "Much of what we were saying is now common wisdom." But no uptick and, in a party better organized and funded than ever, a bit of bewilderment.
There are some reasons that may explain it. The NDP is still saddled with a dated image. For all his strengths, Jack Layton can't tap into any populist anger. His party's role in last fall's coalition may have taken a toll. On policy, other parties are stealing some of the left's thunder. The Liberals have a new, more popular leader. Unemployment numbers, while rapidly climbing, are not as bad as the double-digit figures of not so long ago.
There's also a lesson the left should have learned by now. To change the voting culture, you have to change the media culture. Without a bigger voice in the fourth estate, the left's chances of making a breakthrough are minimal. The Reform/Alliance party eventually hit pay dirt, becoming the dominant force on the conservative side, because big media promoted its religion.
"We should get the CLC [Canadian Labour Congress] to buy the National Post," one of Mr. Layton's officials was saying this week. It was said half jokingly, but it's the kind of thing the New Democrats need take seriously. There are fewer left-side media voices in the country than probably ever. The Toronto Star has the odd left-wing columnist but is predominantly Liberal. The CBC has a leftish reputation, but try finding anyone among its top TV commentators who trumpets NDP values. Rex Murphy leans right, Andrew Coyne is predominantly conservative, Allan Gregg has been anchored in the Tory party for decades and, among Chantal Hébert's many colours, pink is not prominent.
The NDP has a good public relations team and a media-conscious leader. But even with prevailing economic orthodoxies shamefaced, New Democrats can't break the journalistic ritual that sees Liberals and Conservatives with a stranglehold on coverage.
Until they do, until they alter the media perspective, until their supporters gain ownership of media properties - as happened on the right with Fox News and CanWest Global - not much will change.
Edited on: Monday, April 06, 2009 8:00 PM
Categories: Canadian Politics, The Media
Wednesday, April 01, 2009
A Recent Rant With a Friend
Here's a recent rant that I had with a friend of mine over the imprudence of lowering taxes in a time of recession:
"...individual citizen or corporation, want good value for their dollar."
I certainly agree... except if "good value for their dollar" means the government must cut back during a time of a recession. If a government tries to act like a household or company in this situation, then it commits the fallacy of composition: the government - which acts for the whole - erroneously tries to act like an individual unit such as a household or small business. This adds (massively) to the contraction, and sends the entire country into a much faster tailspin. This is exactly what happened to Canada and the USA from 1929 to 1933, and it made a bad situation into a disaster. This is why Hoover and RB Bennett were so reviled: they didn't understand the difference between micro-economic business planning and macro-economic government policy. I saw some corporate-toadying homily from the Fraser Institute in today's Sun, and it repeated almost verbatim Hoover's speeches at the beginning of the Depression. It's like they've never read a book on economic history.
In our current case, simply lowering business taxes won't be enough. The prime consideration in any business model (and when a business applies for a loan) is expectation of profit. If nobody is going to buy the goods or services that your investment will offer, lower taxes or lower interest rates will be of little help. That's exactly what they found in the Great Depression. In Canada, where 56% of our GDP is generated by consumer spending (67% in the USA), the key is consumer spending. It's that spending that will (re-)pay the vast majority of one's investment. And if it's not there, corporate tax cuts will simply lead to a gutting of the treasury. [Tax cuts, and especially targeted tax cuts, can certainly work, but usually when consumer confidence - aka consumer spending - is already strong.]
Some continue to believe that personal tax cuts will boost consumer spending. But again, that doesn't work in a recession. When times are tough, people tend to use their tax cuts for savings or paying off debt. (This is the logic of the household I mentioned earlier.) Savings and paying down debt are good things during a boom, but useless when the country as a whole is looking for stimulus. And if you're unemployed, tax cuts won't matter anyway.
By the way, lower corporate income taxes for the largest companies - courtesy of Chretien, Martin and Harper - have not improved productivity or investment in Canada. In fact, machinery investment has dropped since 2000. But CEO bonuses and shareholder dividends haven't hurt!
Cheers,
Colin
Edited on: Monday, April 13, 2009 4:29 PM
Categories: BC Politics, Canadian Politics, The Economy
Inequality As an Economic Problem for Capitalism
Here's an interesting article that recognizes that inequality is not just a moral issue for bleeding heart lefties. It's a very real problem for capitalism: too much equality might stifle innovation, but too little equality and the economic cycle will come to a grinding halt. Perhaps we should look deeper into the economic crisis, and ask ourselves why the financial instruments that got us into this mess (e.g. securitized mortgages, derivatives, etc.) were needed in the first place.
Canadian vulnerability in the face of the global economic crisis
March 31, 2009 Editorial
Canadian
Center for Policy Alternatives
As Prime Minister Stephen Harper heads to London for the G-20 leaders’ meeting on the global economic crisis, he will undoubtedly tell other leaders that Canada is well positioned to manage the crisis domestically and provide advice on the international effort.
Canada is certainly better positioned than most to implement an aggressive fiscal stimulus package to cushion the blow of the recession, since we have one of the lowest debt-to-GDP burdens of any industrialized country. This advantage, however, is meaningless unless it is used properly. G-20 leaders will not hear from Harper that Canada enters this recession in a far more vulnerable state than in past recessions. Why?
First, since the mid-1990s, inequality in Canada has grown faster than in most OECD countries, including the U.S. Median incomes have stagnated while the top 5% have captured the lion’s share of income increases.
For many Canadians, stagnant wages and low interest rates depleted savings and led to the ballooning of personal debt as a way for many to maintain to their standard of living.
As the recession hit and economic insecurity rose, its Siamese twin, consumer demand, plummeted. People, fearful for their future, have cut back spending in order to repay their record debt and/or boost savings. For those in precarious employment and where family members have lost their jobs, the situation is much worse. These families are in survival mode.
For the economy as a whole, this fragile consumer demand situation is worse than it was in the early1990s, making Canada much less likely to pull its economy out of recession any time soon.
Second, and related to the first, is the shredding of Canada's social safety net, and the overall contraction of the public sector. Cuts to social assistance, unemployment insurance, and other government transfers have weakened Canada’s automatic stabilizers, which kick in during recessions to cushion the blow for vulnerable citizens and help maintain consumer demand. According to the Parliamentary Budget Office, these automatic stabilizers today are only half as large as they were during the 1980-81 recession.
Historically, a large Canadian public sector provided stable jobs and vital public services, making it an effective counterbalance to contraction in the private sector. This stabilizing force in the Canadian economy is now dramatically smaller -- down from 50% of GDP in 1994 to 34% of GDP in 2004. Without these supportive mechanisms, the recession will be deeper and more prolonged than in the past.
The third vulnerability is that changes over the past decade in the structure of Canadian production and exports have resulted in a dramatic proportional rise in resource exports and a corresponding decline in manufacturing exports.
Always a trade dependent country (accounting for about one-third of our GDP), Canada is now even more vulnerable to volatile commodity price and volume swings. This vulnerability is heightened by the fact that more than 80% of our exports go to the U.S. In the last six months alone, these exports have fallen by one-third.
Counting on a U.S. recovery to spark a revival of Canadian exports and free-ride our economy out of recession may have worked in the past, but the U.S. is not likely to come out of the current recession any time soon.
Recently, Harper has been peddling an upbeat Hoover-type message that economic recovery is just around the corner, a message that flies in the face of a deteriorating economy.
Acknowledging the growing severity of the crisis would prompt the government to re-evaluate its existing fiscal plan. Instead, we can expect our prime minister to stand on the G-20 world stage claiming falsely that Canada has done its 2%-of-GDP share of the international effort to boost demand. He will make no reference to the very real economic vulnerabilities underlying Canada’s economy.
With an intervention-averse Conservative government at the helm, Canada’s recession will be deeper and more prolonged than it needs to be. Many more people will suffer.
And the cost to the economy – and to our way of life – will be profound.
Bruce Campbell is the executive director of the Canada Centre for Policy Alternatives.
Edited on: Monday, April 13, 2009 4:31 PM
Categories: American Politics, Canadian Politics, Global Issues, The Economy
The American Debt
If you' re not scared by the American debt, you should be. The Frontline documentary below shows the scale of the problem, and how it will hamper the Obama administration's attempt to revive the American economy... and Canada's.
http://www.pbs.org/wgbh/pages/frontline/tentrillion/view/
Edited on: Wednesday, April 01, 2009 8:14 PM
Categories: American Politics, The Economy, The Good, The Bad, and the Stupid
The Alberta Advantage?
Over the last decade, there has been a
lot of talk about the Alberta Advantage (aka the Alberta Miracle).
Alberta boosters would puff with pride because Calgary had more head
offices than Vancouver and other Western cities. It wasn't just because
of the oil patch, they assured us; it was because of prudent
diversification and sound economic policy. If only BC and other places
were more like Alberta, then our problems would be solved. Or maybe not:
What oil sands giveth, oil sands taketh away
ELEANOR BEATON
Globe and Mail Update
March 31, 2009 at 6:00 AM EDT
A few months ago, Calgary leasing executive Sean McCullough didn't fret if a deal didn't come together. At the time, office vacancy rates were low, rents were high and real estate transactions, especially in the fast-growing suburbs, were easy to come by.
“If we didn't do a deal today, we knew we'd get one tomorrow,” says Mr. McCullough, vice-president of leasing for Strategic Group, which owns and manages six million square feet of suburban and downtown office and retail buildings in Calgary and Edmonton.
But in a few short months, the global economic meltdown and attendant drop in commodity prices have turned Calgary's white-hot suburban office market on its heel.
Insiders say the cancellation, delay or cutback of oil sands projects has caused many tenants, particularly the large-scale engineering and oil sands servicing firms that have driven growth in the suburbs, to cut costs, and that has put large swaths of office space back on the market.
Calgary's suburban office vacancy rate
is now higher than that of other major cities, including Toronto and
Vancouver, experts say. It has also risen faster than in some other
places, the pros note....
Edited on: Monday, April 13, 2009 4:34 PM
Categories: BC Politics, Canadian Politics, The Economy