An Excellent Policy Initiative

Although perhaps less than perfect, New York state has taken a bold move in promising free college/university tuition for its residents whose families earn less than $100,000 per year. This will allow many more to secure higher education than would be possible without the bill; upwards of 80% of families will qualify.

Ontario has also promised some tuition relief for low-income families, but the details are still rather vague.

Anything that provides a little light during these exceedingly dark times is to be welcomed:

A Cost-Benefit Analysis Of Air Travel, Or Am I Just Another Hypocrite?

Having just returned from a 10-day visit to England, my first and my wife's third, the hypocrisy of my use of air travel is not lost on me. Well-known as the worst carbon-emitting form of transportation, jets pose a moral dilemma for all of us who claim to care about the environment. However, despite recognizing how personally and environmentally compromising such travel is, I doubt that this will be my last trip abroad.

I could argue that my infrequent use of airplanes is compensated by the measured steps I take in my daily life to reduce my carbon footprint, but they hardly balance the equation. In many ways, I guess I am no different from those who refuse to use their cars sparingly, who profligately and heedlessly make discretionary energy-intensive purchases, and who put their own comforts, conveniences and wishes above all others.

Ah, but the benefits and perspectives conferred by travel are ones that I cannot resist. I will likely address some of them in the future.

Perhaps to assuage my conscience, I would like to direct you to Star ethicist Ken Gallinger's column in today's paper.

A reader writes:

I lie awake thinking about climate change and air travel. As a means of transport, planes create the worst carbon footprint, yet no one cares. Carbon emissions are destroying the earth, yet friends feel entitled to warm vacations or unnecessary business travel. Years ago I committed to flying as rarely as possible, but it’s hard. For Canada’s 150th, we want to visit the new Museum for Human Rights in Winnipeg. Is it ever ethically defensible to fly?

Gallinger attempts to put the question into a wider perspective, one that may not actually fully address the morality of optional travel:

Sometimes this column puts me in a conflict of interest. Since “retiring,” my wife and I travel a lot, so I won’t pretend this is a disinterested response.

Having confessed to frequent flying, I invite you to join me on a “fantasy flight,” perhaps from Toronto to London, England. Let me introduce our fellow travellers.

See those 30 teenagers in the front rows? They’re small-town high school kids, on their way to Vimy Ridge. They’ll be stunned by the monument, but more to the point, they’ll be brought to tears by the sacrifice, dignity and sheer valour of Canadian kids not much older than themselves.

Observe the couple in 33B and C. His arm’s wrapped around her? Well, her mum is dying over in Jolly Ol’, and she’s praying to arrive in time for a final goodbye. It’s a particularly long flight, though she’s made it many times.

Look over there: 24F. He’s a worldfamous cellist, returning to Vienna after a sold-out performance at Roy Thomson. The thunderous ovation still rings in his ears — or maybe that’s just pressure at 33,000 feet. 18G? The nervous-looking young woman? She’s a nurse from Yellowknife, working with Médecins Sans Frontières and heading for her first assignment in Pakistan. She’s never been away from home before.

The quiet man in 27C? He’s connecting at Heathrow, flying to his ancestral home in Kenya. He’s Canadian, but he returns regularly to this tiny community, helping build a school for girls. A Scarborough church helps out financially; others do, too. But he’s the one who goes, and without his journey of hope, the project would die.

Can the broadening effects of travel be an ample justification and an effective counterbalance to the ignorance that so many seem to embrace today?

Is it ever ethically defensibly to fly? Of course it is. We live in an interconnected world.

Our stories, our families, our hopes and fears are interlaced with faraway places, and despite the occasional backwash of parochialism such as south of the border, there’s no turning back. The globe is our workshop, playground, farm — our heritage and our home.

That doesn’t mean we can ignore environmental implications of air travel, any more than the costs of recreational boating, going for a Sunday drive, bearing children or eating a steak. Air travel is costly, so we need to weigh decisions carefully, avoid flying when feasible and support attempts to mitigate environmental damage. But history shows that living in silos of national, ethnic or religious isolation has a cost too — a cost that is, perhaps, even greater.

Fly to Winnipeg. See the museum. Walk the Forks. Wave to the Golden Boy. Eat Real Perogies.

Just wait till the ice melts, the Jets have again missed the playoffs, the floods recede and the mosquitoes die. There are three or four days in August when the ’Peg is a lovely city.

A Brief Pause

The metaphorical road beckons. See you in a bit.

Fortress Amerika Begins To Pay A Heavy Price

Now that the parody of a president selected by the American people has infected the U.S. national psyche with more than its usual quotient of paranoia and xenophobia, those same people are beginning to get the message that there is a high price to be paid for their irresponsibility. And I, for one, can muster little pity for those sectors that are suffering as a result of their fellow-citizens' choice.

Many are choosing to avoid Amerika for at least the next four years, from individuals to educational institutions. And it is beginning to have a financial impact, as these statistics make clear:

-Tourists spend $108.1 million an hour in the USA.

-Tourists spend $2.1 trillion in the USA every year, half of which goes to secondary small businesses like bars, restaurants, theaters, and so on.

-All of this generates $147.9 billion in annual tax revenue at the city, state, and federal levels.

-Travel ranks as the seventh largest industry in the USA.

Granted these figures represent domestic travelers as well as international ones. If you just look at international travelers, they still supported 1.1 million jobs and $28.4 billion in wages in 2015 alone. And in a divided America, will we see less internal travel, too? Almost certainly.

And as the following report makes clear, the financial health of universities is also in jeopardy:



All of these developments must be humbling indeed for the country that has the hubris to call itself 'the greatest nation on earth."

Star Letter-Writers Seldom Disappoint

Whenever I am feeling a bit down about the world around me and the passivity with which so many 'face' it, I know I can go to the letters section of The Toronto Star to buoy my spirits. Today is no exception, as readers render judgement on the disgraced Senator Don Meredith and roundly reject his groundless, cowardly claim of being a victim of racism.

Re: Racism at play in criticisms of Don Meredith, senator's lawyer says, March 19

I am fed up with the cry of “racism,” which is being broken out once again by Senator Don Meredith in the affair involving a minor child.

Our disgust has nothing to do with the fact that he is a man of colour. His confession of “moral failing” does not begin to excuse the use of his positions of power and prestige to engage in the grooming and exploitation of a child.

The sexual exploitation of children is one of society's greatest taboos. In our universal rejection, the colour of the perpetrator has nothing to do with our perception of the grievousness of his behaviour or our concern for the probable lasting effect on the victim.

Senator Meredith's actions are those of a man without any moral compass whatsoever. And we as a community must be clear that our rejection of his actions have nothing to do with his colour.

He has crossed a line for which there is no possible excuse. If he has any honour or courage left, he must resign the Senate immediately

Robert Kent, Mississauga

This saga of indecent behaviour by Sen. Meredith has become utterly disgusting. After the Senator's failed attempt to mitigate his situation by blaming the victim, and by claiming that racism is the reason that he is being scrutinized, his (now former) lawyer has brought the situation to greater heights of disbelief.

Selwyn Pieters equates Meredith's sexual involvement with a 17-year-old girl to Senators Wallin and Duffy being investigated for improper use of expense accounts. They were not forced to resign. So he suggests there is racism at play.

Meredith's behaviour was bad enough. His continued attempt to blame everyone and everything else, and his lawyer's ridiculous statements, have reached a pinnacle requiring the Senate to deal with him.

Mike Faye, Toronto

For Senator Meredith to claim racism is rich. He got caught doing something he knew very well he should not have been doing and now that his world is imploding, he is blaming everyone else.

For him to make this whole thing go away would be to resign, and the fact that the Senate cannot force him to do so is sad. He is an embarrassment to everything that he stands for as a father, husband, minister and senator.

The senate has had enough embarrassment in the past year or so with Brazeau, Wallin and Duffy. That we taxpayers do not have a way of getting rid of them is a problem that has to be fixed.

Allan Mantel, Victoria Harbour, Ont.

One thing for certain, If Meredith was a member of the “old white boys country club,” he wouldn't be able to “play the race card.” Anyone, regardless of race, committing such an egregious act, should not only be thrown out of the Senate, but should also should be criminally prosecuted.

Warren Dalton

Setting The Record Straight

Now that Senator Don Meridith, about whom I have previously posted, has switched lawyers, it is gratifying to see that his cowardly cries of racism as a factor in the calls his dismissal are being put to rest.

Meredith's new lawyer had this to say yesterday:

Disgraced Sen. Don Meredith’s new lawyer says racism doesn’t play into the widespread condemnations of his client’s affair with a teenage girl, after the senator and his previous lawyer claimed he was being treated unfairly in the wake of the sex scandal.

“It’s not my approach, nor is it my opinion, that there is any racial bias or issue here in relation to the matter, or how the Senate has been dealing with it,” Bill Trudell, a Toronto defence lawyer, said in an interview Thursday.

While the Senate ethics committee still faces an uphill battle on ejecting him from the Upper Chamber, at least we now have a small victory for truth and a blow to self-serving and morally reprehensible hyperbole.

Just A Couple Of Questions

Given that I have no background in economics, I will leave it to more finely-tuned minds to debate the merits of yesterday's federal budget. However, there are a couple of things that, from my perspective, need to be answered, and they both relate to the Infrastructure Bank the Liberal government is touting.

Introduced in last fall's economic update, the goal of the Bank, according to Finance Minister Bill Morneau, is

to attract private sector dollars at a ratio of $4 to $5 in private funding for every $1 of federal money.

While that sounds fine on the surface, the question about the returns that will prompt private investors, including institutional ones, to invest in infrastructure projects the bank will help fund needs to be answered. And it is here that things becoming a tad murky.

In yesterday's budget, Morneau had no real details to provide about it, other than a motherhood statement:

Ottawa has said it wants to leverage every dollar it puts in its infrastructure bank into $4 of investment, the balance kicked in by private-sector investors. The government thus hopes to fund $140 billion in infrastructure projects with an upfront Ottawa investment of just $35 billion.

Sound too good to be true? Perhaps it is:

The catch here is that only infrastructure projects with revenue streams will attract private investment. To be sure, that includes a lot of infrastructure, including toll roads and bridges; alternative-energy suppliers that reap revenues from power consumers; and water and transit systems that earn back their cost of capital through mill rates and Metropasses.

One can't help but wonder, like the idea to sell off our airports, this is just another neoliberal ploy, thinly disguised, that will redirect revenue from the public to the private domain.

The Canadian Centre for Policy Alternatives has released a study that suggests we will all be paying more for this largess gifting the private sector:

This study finds that private financing of the proposed Canada Infrastructure Bank could double the cost of infrastructure projects—adding $150 billion or more in additional financing costs on the $140 billion of anticipated investments. It would amount to about $4,000 per Canadian, and about $5 billion more per year (assuming an average 30-year asset life). The higher costs would ultimately mean that less public funding would be available for public services or for additional public infrastructure investments in future years.

The full study, which you can obtain here, suggests there is a better way:

There’s no reason the federal government can’t make the Canada Infrastructure Bank a truly Public Infrastructure Bank, with a mandate to provide low-cost loans (or other “innovative financial tools”) for large public infrastructure projects. The federal government already has banks and lending institutions that provide low-cost loans, financing, credit, and loan guarantees for housing, for entrepreneurs and for exporters. So why not also provide low-cost loans and other financing for public infrastructure projects? This bank could be established as a crown corporation with initial capital contributions from the federal government (and perhaps other levels of government) and backed by a federal government guarantee. It could then leverage its assets and borrow directly on financial markets at low rates and then use this capital to invest in new infrastructure projects.

This approach would involve a slightly higher cost of financing than direct federal government borrowing, but it would be considerably below the cost of private finance.

And finally, is it simply a coincidence that one of the government's tools for borrowing at ultra-low rates is ending?

The federal government is phasing out the Canada Savings Bond, a popular savings vehicle introduced after The Second World War.

The Liberals’ 2017 budget stated the bond program peaked in the late 1980s and has been in a prolonged decline since.

“The program is no longer a cost-effective source of funds for the government, compared to (other) funding options,” the budget document reads.

Perhaps it is naive of me to suggest, but wouldn't paying a higher rate of return on savings bonds that average citizens can benefit from also be a source of much-needed cash for infrastructure?

Just wondering.