Why A Tax On Financial Transactions Makes Sense

Robert Reich, for whom I have a great deal of respect, offers this succinct explanation:



You can read more about this issue, also often referred to as the Tobin tax, here.

UPDATE: We Should All Be Outraged

My father lived to be almost 91 years of age. Should I enjoy such a long life, there are many things that I hope not to lose along the way. Near the top of the list is my capacity for outrage. This morning brought confirmation that at least for the time being, it is alive and well.

Some may remember a post I made in July about Nadia Shoufani, the Mississauga, Ontario Separate School Board teacher who participated in a rally protesting Israel's brutal abuse of the Palestinians and the occupation of their land. At the time, the Jewish lobby demanded her head, conflating her criticism of the Jewish State with antisemitism, as they are wont to do.

It appears their efforts have paid off.

The CBC reports the following:

A Greater Toronto Area elementary school teacher has been suspended following a school board investigation after she was criticized for appearing in and speaking at what advocacy groups have called an anti-Israel rally.

Nadia Shoufani, a teacher at St. Catherine of Siena school in Mississauga, Ont., has been suspended with pay pending further investigation by the Dufferin-Peel Catholic District School Board, the board said in a statement.

The school board said concerns raised by the public about Shoufani's professional conduct have been referred to the Ontario College of Teachers for review.

We should all be outraged over this craven capitulation of the Dufferin-Peel Board to the political pressure exerted by those who will brook no criticism of Israel, despite its well-documented record of human rights abuse and atrocities. Human Rights Watch notes the following:

Israel enforces severe and discriminatory restrictions on Palestinians’ human rights, and it builds and supports unlawful settlements in the occupied West Bank. Its security forces appear to use excessive force against Palestinian demonstrators and suspected attackers, raising the specter of extra-judicial killings. It has renewed the practice of punitive home demolitions. The Palestinian Authority has arrested students and activists allegedly for their political affiliation or because they expressed criticism. Hamas security forces also engage in torture and ill-treatment of people, including journalists. Israel’s closure of Gaza, supported by Egypt, amounts to collective punishment and has impeded reconstruction.

Says Amnesty International:

In the West Bank, including East Jerusalem, Israeli forces committed unlawful killings of Palestinian civilians, including children, and detained thousands of Palestinians who protested against or otherwise opposed Israel’s continuing military occupation, holding hundreds in administrative detention. Torture and other ill-treatment remained rife and were committed with impunity.

The facts are not in dispute here, but thanks to those public officials working in Dufferin-Peel who have neither backbone nor a belief in freedom of speech, only the kind of cravenness seen in the worst of our politicians, Shoufani is being made an example of. That the board lacks even a scintilla of integrity is evidenced by their refusal to acknowledge they are succumbing to outside pressure, instead hiding behind another excuse for her suspension, as revealed by the Ontario English Catholic Teachers' Association (OECTA), which is representing the beleaguered teacher. They said,

the teacher wasn't suspended for her conduct, but instead for appearing to not comply with the investigation. However, OECTA said the teacher has provided all of the information the board has asked for and met its timelines.

But not everyone is unhappy about this witch hunt:

Amanda Hohmann, the national director of B'nai Brith Canada's league for human rights, praised the board for suspending the teacher this week.

"It is heartening to see the school board treating this matter seriously," Hohmann said in a statement.

While Hohmann and her group may be gratified by Shoufani's suspension, I expect and hope that fair-minded people everywhere will be appalled by this indefensible curtailment of one of our most valued Charter rights: freedom of expression.

UPDATE: Thanks to Marie for this video that clearly addresses the kinds of conditions that Nadia Shoufani was protesting against. Even if you watch even five or ten minutes, you will get the picture.

Guest Post: Putting Ourselves Under The Microscope

In response to my post yesterday, The Mound of Sound offered the following observations, which I am featuring as a guest post. The Mound has made an intensive study of the environmental and climatic perils we have created, and his insights are ones none of us can afford to ignore:

I fear, Lorne, that we have devolved into a culture of collapse. We plainly cannot keep going as we have since the Reagan/Thatcher/Mulroney era ushered in the scourge of neoliberalism. Yet, having been drawn in, there's no sign of the vision much less the popular critical mass to change and, when time is running out and our options are being steadily foreclosed, that can be fatal.

Jared Diamond contends that when past societies have collapsed it was usually the result of a choice and, in many cases, the disastrous outcome was foreseen. We can choose to conduct ourselves in ways today that we know or ought to know will spell disaster a generation or two from now. Our bacchanal of consumption is premised on "because we can" with scant regard to whether we should. We are just lucky our own grandparents were never empowered to wreak this sort of devastation on us.

Science tells us that mankind first exceeded Earth's resource carrying capacity when our population passed 3+ billion in the 70s. We're now at 7+ billion heading to 9 and beyond. To compound this, our per capita consumption footprint has swelled and continues to grow. Yet our overpopulation and over-consumption has come at a direct, although somewhat deferred (for the moment), cost.

The signs are tangible, palpable, measurable and, in some critical instances, visible to the naked eye from the International Space Station cupola. Rivers that no longer run to the sea. Red tides and blue green algae blooms in our lakes and along our sea coasts. Once fertile soil that now lies exhausted, creating spreading desertification. The blight of deforestation. The collapse of global fisheries as our industrial fleets fish "down the food chain."

We know how this ends but not exactly when. James Lovelock, creator of the Gaia Hypothesis, predicts mankind will number in a few hundred million by the end of this century. That's a massive die-off. He has warned that the only way to blunt this result entails what he calls "sustainable retreat." He uses this term to describe a social transformation away from our excess consumerism into "living small." Small houses, shared transportation, living local, everything necessary to sharply pare our individual and collective ecological footprint.

I've seen no sign that we would entertain this prescription. Your soon to be neighbour confirms this view. Our leaders still quest for 3% annual growth in GDP. We live in a political/economic construct in which negative growth is worse than death. We cannot conceive of how to live other than in the mode that has brought us to this precipice.

The following video, discussing how 2016 is on track to be the hottest year on record, helps to reinforce the consequences of our heedless ways:



Finally, Marie over at A Puff of Absurdity says that despite our natural tendencies, we cannot afford a 'business-as-usual' reaction to the perils engulfing us.

Look On My Works, Ye Mighty, And Despair

More and more in these later days of my life, I find myself pondering our species, puzzling over our apparent collective indifference to the world around us, both near and far. Obsessively, it seems, we pursue chimera after chimera, somehow convinced that personal satisfaction and the wholeness that escapes us is just around the corner, perhaps to be found in the very next purchase we make, or the next monument to our vanity we erect. The environmental consequences of that futile pursuit seem to bother us not in the least.

On my own street, two doors down, on a lot that has been vacant for a number of years, a house is being built that dwarfs all of the other houses in the area, coupled with an architecture that breathes a certain affluence and lifestyle. In the 21st century, it should have no place. To compound the insult, a number of trees on the property have been cut down to accommodate this (the pictures do not do justice to its scope):

Putting aside the resources and energy expended in constructing the house, despite the fact that yesterday was Earth Overshoot Day, I have to wonder about the kind of person who will eventually purchase the house. (The developer claims he is moving in, but I suspect he will live there for the year required so he can claim it as his principal residence and then sell it without having to pay taxes on his profit.) Will the ultimate purchaser be aware that he or she, in buying this vision, is also expressing contempt for the world of finite resources and climate change that we live in? Indeed, will the new owner be one who never even ponders such matters? Will the sun rise and fall on his or her wants, vanity and ego? I fear to contemplate too deeply the possible answer to those questions.

And yet, the ultimate owner will be a tree hugger compared to others with more monstrous egos. Consider the plans for singer Drake's new home in Toronto,

a lavish two-storey 21,000-square-foot mansion on the Bridle Path that will feature an NBA-sized basketball court, a dedicated awards room and an enormous basement pool.

Plans for the 21,000-square-foot mansion include an NBA-sized basketball court in the basement, seen here in the left of this blueprint (#1) for the property. Other items featured on this level: (#2). Pool/Hot Tub (#3). Bar with two wine fridges (#4). Spa and tub retreat (#5). Important Artifact rooms (#6). Jersey museum (SUPPLIED PHOTO)

Plans for the Bridle Path property include a handy feature for peckish players: a snack bar overlooking basketball court (#7). Also on this floor: (#8). Awards Room (#9). Library

On the top level, (#10) is the master bedroom, (#11) are other bedrooms.

To better appreciate what Drake is building, consider a few of these details:

A 44-foot by 94-foot basketball court in the basement (with a snack lounge above), where Drizzy can channel Jimmy Brooks and put in the practice time to make sure he never shoots another airball on camera ever again, like he did at a U.S. college basketball game.

A basement “spa and tub retreat,” surrounded by two saunas (both infrared and regular), a designated massage room and a linen closet.

A sprawling lower-level pool and large hot tub, both situated in front of a massive TV projection screen, with bars on both sides. No word yet on whether the proposed pool is bigger than Kanye’s, as he claims in his song “Summer Sixteen.”

A bar bookended by separate areas for “chilled wine” and “chilled champagne.”

More than one room set aside for “important artifacts” as well as a “jersey museum,” a library and an awards room that proves he was fibbing on Big Sean’s song “Blessings” when he claimed he didn’t care “where the Grammys go.”

A master bedroom with an ensuite steam shower, plus four more bedrooms each with a corresponding bath. Hold on, we’re never leaving home.

A piano room, a music and screening lounge, two dressing rooms, multiple covered terraces, another outdoor swimming pool, a gym, a lounge and a family room for the family he keeps so close.

A titanic tax bill that in 2014 amounted to $27,856.

No one should begrudge the man his success, but that success would seem to entail a grave price: total disregard, even contempt, for today's reality, a reality that is seeing some parts of the world looking for new homes because of rising sea levels. And of course, that is but one of the many challenges humanity, both near and far, faces.

But such concerns are not for my developer friend down the block, not for the likes of Drake, and clearly not for the likes of anyone who believes in erecting monuments to their egos.

They would indeed be wise to read, or reread, Ozymandias.

A Childish Recantation

That is the only conclusion I can draw from the fact that in at least temporarily acquiescing to the demands of Republican orthodoxy, Donald Trump makes a conspicuous display of reading notes instead of using a teleprompter or speaking extemporaneously as he 'endorses' people he still has a score to settle with. The message to his true believers? "Folks, I don't really mean what I am saying."

Take a look at the following clip to see what I mean:

If You Are Judged By The Company You Keep

Watch this video for confirmation of things you probably already know about Donald Trump:

The Shape Of Things To Come?

Over the past several years, I have become a bit of an aficionado of bourbon. Given that most of my life I have never cared for the taste of straight liquor, how I came to fancy it is something of a mystery, but it is now my hobby that whenever I see a new listing in the LCBO (Liquor Control Board of Ontario), if it is within my price point, I will buy it. The other frequent purchase is red wine.

My imbibing habits are really not the subject of this post; rather, it is a disturbing trend I have noticed upon visits for the past several weeks. Product prices are rising, not by ten or twenty cents, but by dollars. For example, a bottle of Barefoot Merlot, a California wine, was retailing about six weeks ago at $9.95. It then went up to $10.05, and quickly jumped thereafter to $10.95. A bottle of Eagle Rare bourbon, (a rare purchase for me, given its price) jumped from about $49 to $54.65. I could give numerous other examples, but I think you get the picture.

Given the relative stability, even upward trend of the Canadian dollar, these increases on American products cannot be attributed to currency fluctuations nor simply a cash grab by the province. I believe there is something more insidious at work.

I believe that the Ontario Liberal government, should it win re-election in 2018. is planning to privatize the LCBO, surely one of our crown jewels, given the huge profits that go into the provincial treasure each year. Indeed, in fiscal 2013-2014, it made a record profit of $1.74 billion, more than our formerly wholly-publicly-owned Hydro One.

What is my evidence, other than the rising prices that would make the LCBO's sale even more attractive to private investors? Consider the pattern:

Before privatizing Hydro One, the government engaged in a series of price increases for electricity, culminating in the current peak rate (weekdays 11 a.m.-5 p.m.) of 18 cents per kilowatt hour. One of the reasons cited is that Ontarians' conservation efforts reduced Hydro One's revenues. Left unsaid is the fact that lower profits would have also resulted in a lower IPO when the first 15% of Hydro One was sold off.

But wait. There's more.

Ontario Premier Kathleen Wynne has made a big play to offer a wider distribution of beer, which will ultimately be available, but only in six-packs, in 400 grocery stores. Prior to that, she had expressed public outrage over the virtual monopoly enjoyed by the privately-owned Beer Store, whose proprietors are multinationals: Molson-Coors, Labatt (owned by Anheuser-Busch InBev) and Sleeman (owned by Japan’s Sapporo). At the time, she suggested a licensing fee would be imposed on that monopoly. Needless to say, that never happened, but the fact that beer is now allowed, albeit in limited distribution and quantity in grocery stores, suggests an effort to change the public perception about the virtues of privatization.

Next, there is the recently-announced LCBO delivery service. Finance Minister Charles Sousa said,

the creation of LCBO.com shows the government-owned liquor agency's commitment to evolve and modernize, and will provide greater convenience for consumers.

"The virtual shelf space now available to small wineries and breweries is fantastic," said Sousa.

The online sales site will be a huge boost to Ontario wineries, breweries and cider producers, predicted LCBO president and CEO George Soleas.

As well as a boost to their already fat bottom line, no doubt, thereby enhancing its attractiveness to future private investors.

Consider as well the recent hiring of Bonnie Brooks as the LCBO's new Chair. Known as a turnaround-queen, she joined Hudson Bay in 2008, becoming

its first female president and CEO. Brooks is known for engineering a turnaround for the retailer, dropping its moribund apparel brands and bringing in mid-to-high end fashion products.

Brooks was set to retire from her role as vice-chairman before agreeing to take on LCBO role. She said this new opportunity would allow her to help “build on the great work that has already been done, and to take this exciting retail powerhouse to the next level,” with its expansion online and its new role as wholesaler to grocers.

Cynics like me would suggest that she has really been hired to complete the transformation of the LCBO prior to the start of privatization.

Expect no mention of these plans before the next election. Just as the privatization of the very profitable Hydro One came out of the blue, a cowardly and costly way to avoid tax increases while bringing in her balanced budget in time for the next election, my prediction is that Kathleen Wynne will once more betray the people of Ontario should she win another majority mandate

It is a sad thing when a citizen comes to look upon his government with suspicion and loathing. Yet it is an odium that the premier and her tired regime have justly earned.