One of the great malignancies of the 20th century was the spread of neo-classical economics. the macro- and micro-stuff that you probably had to learn in university.
I did a good bit of fraud work in my legal career. One of the key ways to unravel a well-crafted fraud was to ferret out the inconsistencies, the gaps, the irreconcilable contradictions. Neo-classical economics, being a work of fraud, also is replete with inconsistencies, illogic and irreconcilable contradictions, but it bundles them all up and jettisons them under the category of “externalities.” It’s sort of like your teenager shoving all the dirt and debris under the bed before proclaiming his room ‘clean’ before demanding the keys to the family car.
The use of externality is a dandy way of keeping incidental costs off the balance sheet. Carbon emissions? An externality. Impacts on climate change, ditto. Deaths in the hundreds of thousands? That too.
In yesterday’s Guardian there’s an item that reveals the face of climate change since the 1970s in 8 charts. It’s taken from a UN study.
What is most telling are two bar graphs toward the end of the article. One of these is titled, “Disasters ranked by reported deaths (1970-2012)”. The countries that dominate that list are Ethiopia, Bangladesh, Myanmar and Mozambique – essentially the Third World. The other is entitled, “Disasters ranked by economic losses (1970-2012)”. Here the top players are Hurricanes Katrina, Sandy, Andrew and Ike along with flooding in China and Thailand.
What this reveals is that for the Third World, climate change is a matter of life and death. For the developed and developing countries, it’s an economic problem. Economic challenges are approached from a “cost/benefit” basis. That’s where externalities, such as all those Third World deaths and suffering, come into play. Even though the industrialized world is responsible for almost all of the greenhouse gas emissions since the Industrial Revolution that are wreaking death and suffering in the Third World, we externalize that. We keep it off our books. It’s not relevant.
What have we become?
Reflections, Observations, and Analyses Pertaining to the Canadian Political Scene
Tuesday, July 15, 2014
Monday, July 14, 2014
Giving Credit Where It Is Due
Over the years on this blog, I have been deeply and justifiably critical of the excesses of unfettered capitalism. Degradation of the environment, activities contributing to widescale climate change, and exploitation of labour have been some common targets. Yet every so often, something comes along to show that not all businesses are based on such a rapacious and monolithic model.
In yesterday's business section, The Star reported on a number of enterprises that puncture the myth that paying ones's employees more than the minimum wage is a shortcut to bankruptcy, a favoured assertion of the right.
One of those enterprises is Coffee Pubs,
where the starting wage is 50 cents higher than Ontario’s $11 an hour minimum wage. Full-time staff can start earning an ownership share in the company after six months of service. The business has also expanded to include bartending and catering services. It has 16 employees; workers start at $11.50 an hour and qualify for medical and dental benefits after three months. Managers earn about $30,000, and the Cluleys, the husband and wife owners, say they pay themselves slightly more.
A small company with only two location, Coffee Pubs's decision to depart from the conventional pay model is a bold one, given that employee remuneration in a small operation is a much greater factor in overall costs than in large enterprises.
So why did they do it? Both serendipity and social conscience seem to have played roles.
Their first site, at Bloor and Bathurst in Toronto, is leased from The Centre for Social Innovation, which offers rents geared to revenue. Their second venue is at Artscape Youngplace, a collaborative public space in a former elementary school that’s home to artists’ studios, galleries and an Ontario Early Years Centre.
The Cluleys say that their advantage comes from the strong relationships they’ve forged with local vendors, tenants and walk-in customers from the surrounding neighbourhood. They estimate they have about 100 to 150 customers each day and about half of them work in the building.
The other part of the equation is their philosophy:
“We could use cheaper ingredients and pay the staff less and make more money. We know that this way isn’t going to get us wealthy but we believe in the model,” Erin said.
“We believe if we are patient, we can make a big difference. We want to show there’s another way to run a business that’s not just profit for its own sake.”
The article includes reference and links to other organizations promoting similar values, but on a larger scale, such as B Corporation and Wagemark Foundation.
Like industry leaders including WestJet and Costco, more and companies are discovering that treating employees with dignity, respect and decent wages has tangible benefits:
They argue firms that create high-quality, well-paying jobs and treat their workers better will have a more loyal and engaged workforce, leading to better bottom lines, and better end results for everyone.
We can only hope that this model, which in many ways is the antithesis of the rapacious and unfettered capitalist one widely practised today, ultimately becomes the norm. We, of course, can do our own part by patronizing such enterprises and spreading the word about them with any means we have at our disposal.
Sunday, July 13, 2014
Message From Orwell: "I Warned You" - A Mound Of Sound Guest Post
You don't have to dig very deep to get a pretty clear picture of the decline of today's global civilization. The good times are gone, over, finished. We're out of stuff, plain and simple. The game today is for one select group of people to employ its considerable advantages to mine the remaining wealth out of everyone else. We've become the last, best natural resource and the system has been rigged to effect the greatest unearned transfer of wealth ever. It has symptoms - inequality of income, of wealth and of opportunity; the wholesale theft of political power through "capture" of legislators and, in the US, even its courts; media organizations that now serve the power they once confronted; widespread and probably irreversible environmental degradation; secrecy and the triumph of the surveillance state.
Some of us have joined outfits such as Dark Mountain, a place for those tired of the lies civilization tells itself. It's a meeting place for people who know that the game is rigged and that most of the opposition is shadow boxing.
Alternet's John Pilger writes that, "The world we've constructed is far beyond George Orwell's worst nightmare."
"As advanced societies are de-politicized, the changes are both subtle and spectacular. In everyday discourse, political language is turned on its head, as Orwell prophesied in '1984.' 'Democracy' is now a rhetorical device. Peace is 'perpetual war'. 'Global' is imperial. The once hopeful concept of 'reform' now means regression, even destruction. 'Austerity' is the imposition of extreme capitalism on the poor and the gift of socialism for the rich: an ingenious system under which the majority service the debts of the few."
Go back and read that brief passage again. Do you seriously disagree with anything Pilger observes? If not, what does that tell you? Pilger continues:
"In politics as in journalism and the arts, it seems that dissent once tolerated in the 'mainstream' has regressed to a dissidence: a metaphoric underground. When I began a career in Britian's Fleet Street in the 1960s, it was acceptable to critique western power as a rapacious force. Read James Cameron's celebrated reports of the hydrogen bomb at Bikini Atoll, the barbaric war in Korea and the American bombing of North Vietnam. Today's grand illusion is of an information age when, in truth, we live in a media age in which incessant corporate propaganda is insidious, contagious, effective and liberal."
Do you honestly believe that the Liberals today are not committed vassals to corporatism? Hell, so is Mulcair's crowd. Here's the thing. Ask yourself whether a healthy democracy can co-exist with a corporatist state. It's no accident that the House of Commons is stuffed with petro-pols on both sides of the aisle. I'll conclude with one final passage from Pilger's excellent essay. In his concluding paragraph Pilger points out how easy it is for all of us - you and me - to be corrupted.
"In the 1970s, I met Leni Riefenstahl and asked her about her films that glorified the Nazis. Using revolutionary camera and lighting techniques, she produced a documentary that mesmerized Germans; it was her 'Triumph of the Will' that reputedly cast Hitler's spell. I asked her about propaganda in societies that imagined themselves superior. She replied that the 'messages' in her films were dependent not on 'orders from above' but on a 'submissive void' in the German population. 'Did that include the liberal, educated bourgeoisie' I asked. 'Everyone' she replied, 'and of course the intelligentsia.'"
Are you part of a 'submissive void'? From what I've learned over the past seven years of many people who frequent these sites, there's a damned good chance you are. Think on it.
Saturday, July 12, 2014
The Lethal Dysfunction Of The Far Right: A Mound of Sound Guest Post
Problem: you're already getting hammered by early-onset climate change. Solution: deny it's happening, look the other way, think happy thoughts.
It sounds ridiculously dysfunctional and it is but that is the approach being taken by governments, state and municipal, in parts of the American south.
Take North Carolina, for example, where the uber-rightwing state legislature has found a solution to scientific projections of at least a metre of sea-level rise this century - pass legislation banning any mention of that.
And then there's posh Miami, Florida where real estate prices are sky high and still climbing. Miami now floods regularly and there's nothing anyone can do about it. The problem is that the city is very low-lying and it sits atop a dome of porous limestone through which rising sea water passes virtually unobstructed. Seawalls and dikes don't work here because sea water simply comes up from underneath. The city already stands defenceless against seasonal high tides and regular storm surges.
Philip Stoddard is particularly well-placed to judge what is happening in Miami. Tall, thin, with a dry sense of humour, he is a politician, having won two successive elections to be mayor of South Miami, and a scientist, a biology professor at Florida International University.
"The thing about Miami is that, when it goes, it will all be gone," says Stoddard. Nor will south Florida have to wait that long for the devastation to come. Long before the seas have risen a further three or four feet, there will be irreversible breakdowns in society, he says. "Another foot of sea level rise will be enough to bring salt water into our freshwater supplies and our sewage system. Those services will be lost when that happens."
"You won't be able to flush away your sewage and taps will no longer provide homes with fresh water. Then you will find you will no longer be able to get flood insurance for your home. Land and property values will plummet and people will start to leave. Places like South Miami will no longer be able to raise enough taxes to run our neighbourhoods. Where will we find the money to fund police to protect us or fire services to tackle house fires? Will there even be enough water pressure for their fire hoses? It takes us into all sorts of post-apocalyptic scenarios. It makes one thing clear though: mayhem is coming."
Yes, mayhem is coming. So how are Florida's rightwing leaders responding?
"...what really surprises visitors and observers is the city's response, or to be more accurate, its almost total lack of reaction. The local population is steadily increasing; land prices continue to surge; and building is progressing at a generous pace. ...signs of construction - new shopping malls, cranes towering over new condominiums and scaffolding enclosing freshly built apartment blocks - could be seen across the city, its backers apparently oblivious of scientists' warnings that the foundations of their buildings may be awash very soon.
"Not that they're alone. Most of Florida's senior politicians - in particular Senator Marco Rubio, former governor Jeb Bush and current governor, Rick Scott, all Republican climate-change deniers - have refused to act or respond to warnings ...or to give media interviews to explain their stance, though Rubio, a Republican party star and possible 2016 presidential contender, has made his views clear in speeches. 'I do not believe that human activity is causing these dramatic changes to our climate the way these scientists are portraying it. I do not believe the laws that they propose we pass will do anything about it, except it will destroy our economy.'"
Miami, in fact the entire state of Florida, is an invaluable object lesson, a miners' canary to demonstrate rightwing dysfunction at work in the fight against climate change. It's one but just one of several spots in the US expected to be particularly hard hit by global warming. Another is the American southwest from California through to Texas.
In already hot and dry Phoenix, Arizona, they're being warned to expect 10-degrees Fahrenheit warming this century. That translates from an average summer high temperature of 104 soaring to Kuwait City temperatures of 114F. In a region already severely water stressed, heating on this scale could undermine the major cities.
"Climate Central used the IPCC predictions - which generally estimate that summer high temperatures will be seven to ten degrees higher by 2100 - to make an interactive map to compare the current temperatures with cities that already experience those temperatures. For example, Sacramento will feel more like Tucson in the summer. Boston will feel like Miami. And Austin, where the average summer high is currently about 94 degrees, is projected to be more like Gilbert, which has an average summer high of nearly 104 degrees.
Meanwhile, on the clean, renewable energy front, Aviation Week has recently published several articles about space solar power (SSP). The idea is to capture solar energy in near-Earth space, convert it to microwaves and them beam the energy down to power grids on the surface.
“Space solar power has as a concept never been more appealing and more promising than it is right now,” says John Mankins, a Jet Propulsion Laboratory veteran who spent a decade as manager of advanced concepts studies at NASA headquarters. “The new technical architecture, which exploits all of the technological advances of the past 30 years in terrestrial technology—electronics, robotics, materials—makes the approach to space solar power both affordable and scalable.”
Maybe, maybe not. At the very least, though, it's a technology worth exploring.
Friday, July 11, 2014
Oh, And One More Thing
It seems I, Martin Regg Cohn and Cheri DiNovo aren't the only ones to take issue with Andrea Horwath's leadership these days:
Re:Horwath admits ‘bittersweet’ election result, July 9
I wonder what Robin Sears has to say about Cheri DiNovo. The day Andrea Horwath walked away from the Liberal budget I cancelled my membership in the Ontario NDP. This decision was not taken lightly. I worked in my first election in Grade 9 and was a member of the party for decades. When the famous letter of “the 34” was made public, I felt better. Others were also disappointed at the move away from core NDP values to populist austerity rhetoric.
Then, enter Robin Sears. He dismissed all of us as over-the-hill, negative and anti-party. And now we have Cheri DiNovo saying “we can’t ever give up our core values and principles.” I hope there are more like DiNovo and fewer like Sears in the party. If that proves to be the case I will return to the fold. I voted Liberal and I respect Kathleen Wynne but I am not a Liberal because I don’t share their core values and principles.
Peggy Stevens, Newmarket
Thursday, July 10, 2014
Andrea Comes Down From Her Perch
But only a little bit. And only because her campaign is being criticized from within.
As I noted in a recent post, Ontario NDP leader Andrea's Horwath's hubris following what almost everyone else would call a failed Ontario election campaign has been both unseemly and wholly unjustified. She initially avowed that she had no regrets about causing the election, terming it a success despite the fact her party lost key Toronto ridings and, more importantly, the balance of power. However, now that she is being publicly taken to task by both Peter Julian and Cheri DiNovo, Horwath seems to be tempering her pridefulness:
After weeks of downplaying the defeat at the hands of Premier Kathleen Wynne’s Liberals on June 12, which saw the New Democrats lose the balance of power in a minority legislature, Horwath on Tuesday conceded “the result of this election campaign was bittersweet.”
“We lost some seats in Toronto, which is very concerning to us. All three of those MPPs were good and it’s troubling that all three lost their seats,” she told reporters at Queen’s Park.
Her admission of error came after DiNovo granted an interview to The Torontoist, in which she described the results for the party as "a debacle from the beginning, from day one”.
DiNovo blamed those results on a wholesale drift from traditional NDP progressive values: poverty, child care, housing, and education.
Pointedly, she observed that "at the end of the day it’s about who we are as a party and what we stand for that we need to look at as New Democrats.”
Showing more understanding of what true leadership entails than Horwath does, DiNovo says the NDP will not regain frustrated supporters by portraying the recent election as progress, which has been the official line—focusing on the fact that the party improved its share of the popular vote by one per cent, and that efforts to attract voters outside of Toronto yielded gains. “It’s important for our voters in Toronto to know that we did not see that campaign as a success” because “I think voters appreciate honesty.”
It appears that, belatedly, Andrea Horwath may be realizing the wisdom of her colleague's insights, but not with any real grace. In today's Star, Martin Regg Cohn says that when the caucus finally met on Tuesday, DiNovo, a United Church minister, was told to take another vow of silence.
Nonetheless, as a response to those criticisms,
... a more contrite Horwath confirmed this week that she is changing her staff — and changed her tone. Where last month she was “proud of the achievements,” this week she scaled back the bravado by acknowledging the “bittersweet” reality in Toronto.
The political reality for all caucus members is sinking in. The spring election they triggered has deprived them of the balance of power, leaving the party destabilized and demoralized.
With the Liberals enjoying a majority for the next four years, the NDP leader has lost her leverage in the legislature. Over the next four months, she must regain her legitimacy within the party.
It is clear that Ms. Horwath has her work cut out for her.
Wednesday, July 9, 2014
Has Harper Betrayed The West? A Mound Of Sound Guest Post
Recent summer flooding across southern Alberta, Saskatchewan and Manitoba seems to be bringing the reality of climate change home to the people of the prairies and it’s drawing some unwelcome attention to prime minister Harper.
Look, it was bound to happen. You can’t have once-a-century weather disasters arriving every two or three years for very long before even the doubters stop listening to climate change deniers. That, from a glance at some prairie newspapers, seems to be happening at the moment. Postmedia science scribe, Margaret Munro, writes that these summer floods are the new reality for much of western Canada. Reginal Leader-Post columnist, Murray Mandryk, writes that Saskatchewan has to catch up to the fact of climate change.
“But don’t take my word for it. Ask someone like hydrologist John Pomeroy – Canadian Research Chair for Water Resources and Climate Change at the University of Saskatchewan – who has studied the issue for years, including intensive study of the drainage of Smith Creek, which flows near Langenburg along the Manitoba-Saskatchewan border.
“’We have to stop doing what we are doing,’ Pomeroy said in an interview from Alberta, where he is currently studying the impact of mountain run-off into the South Saskatchewan River.
“’Things are happening and they are happening much faster than anyone imagined.’”
Munro highlighted Dr. Pomeroy’s remarks about how the pro-oil/anti-science Harper government has gutted federal hydrology, climate and flood management programmes, leaving the provinces to fend for themselves.
“By July, Smith Creek is usually ‘bone dry.’ Last week it hit a new high as 24.5 cubic metres of water a second roared down the stream.
“[Pomeroy] says heavy winter snow had saturated the soil, which was made even wetter by unusually heavy spring rains. Then the frontal system came up from the US, stalled over southeast Saskatchewan in late June, ‘and pushed it over the top.’ The system dropped more than 150 millimetres of rain in a few days – almost as much rain as normally falls in southeast Saskatchewan all year.
“He says the change in the past decade has been remarkable.
“’Everything we know about hydrology of the prairie appears to be different,’ he says. ‘We never have saturated spongy soils with flow running off farmers’ fields in the midsummer. Never.’
“The situation calls out for a national Canadian strategy and program to improve flood prediction and water management, Pomeroy says, pointing to the US which has more comprehensive systems.
“He says recent cutbacks and, in some cases, the ‘gutting’ of federal hydrology, climate and flood management programs have left the country ill-prepared.
“When it comes to the flood forecasting problem, he says, ‘every province is left on its own, with some doing better than others.’”
Coastal British Columbians know how Harper has betrayed us and left our environment defenceless. Harper has moved the west coast oil spill emergency centre to Montreal. He has shut down many of our Coast Guard stations. He has axed entire departments of Fisheries and Oceans once responsible for monitoring our coastal waters and the health of our marine species. He has stripped navigation regulations and done everything asked of him to facilitate hazardous oil tanker traffic. To us, the fact that Harper has gutted federal hydrology and flood management programmes, leaving the prairie provinces defenceless. is old hat. This is simply another illustration of Harper’s rank ideology at work in betraying the West for the sake of Big Oil only this time it’s Harper’s natural constituents caught in the crosshairs.
Reality is catching up with Harper and even the usually reliable, centre-right media are beginning to speak out. Doubters and deniers are beginning to sound utterly unconvincing, shrill, desperate. Pomeroy might have coined a suitable epitaph for Harper’s conservatism when he said, “Things are happening and they are happening much faster than anyone imagined.”
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