Politics and Entertainment: Why are governments addicted to neoliberal #austerity?

The key to deficit reduction is not austerity – reducing government spending by cutting programs and personnel – but good old-fashioned employment. Stanford’s argument is in the Krugman reformist, Keynesian tradition. He doesn’t seek a transformation, merely a technical economic readjustment, but, given our failure to transform capitalism so far – which can be brought about,

Continue reading

Politics and Entertainment: Why are governments addicted to neoliberal #austerity?


The key to deficit reduction is not austerity – reducing government spending by cutting programs and personnel – but good old-fashioned employment. Stanford’s argument is in the Krugman reformist, Keynesian tradition. He doesn’t seek a transformation, merely a technical economic readjustment, but, given our failure to transform capitalism so far – which can be brought about, in any case, only with a political strategy, not mere economic tinkering – it has value within the framework of a capitalist reality – a stopgap of sorts. 
As I’ve said many times in that context:
Without employment, no income; without income, no spending; without spending, no demand; without demand, no production; without production, no economy.
And thus no tax revenue to pay down the deficit. Frighteningly simple, especially when one realizes that government itself instead of firing people could be employing them and establishing employment programs in an effort to stimulate the economy when the private sector is failing to do so during these stagnating times.
Still, the question remains: why is it that so many governments continue to drink the austerity koolaid when it is so evident from countless global examples that it simply doesn’t work? Because of course, as the main partner in corporatocracies, they serve their corporate brethren and their plutocratic masters. Austerity always privileges this investor class, and, while it may seem counter-intuitive, recessions, as Robert Pollin has suggested, actually benefit this class*. Ontario is no exception in its allegiance to the financial sector – after all Bay Street isn’t in Boise –  especially since it necessarily controls so much of Ontario’s industrial economy too. As long as industrial economic activity is fulled by debt/credit, the financial sector and its capital will be in control.
We should nevertheless be grateful, I suppose, that the Ontario Liberals chose to ignore Don Drummond’s highly dubious classic neoliberal recommendations. Who knows the horrors they might have wrought.
——————————————
* In the eyes of the investor class, austerity presumably generates confidence by working to maintain government solvency and asset value, especially long-term government bonds, by way of keeping inflation in check through reduced spending. Thus Canada’s neoliberal fiscal policy complements the Bank of Canada’s monetary policy of low interest rates, which also keep inflation in check. This is important to the investor class because government is of course the final guarantor of the plutocrats’ investments and their banking institutions. The outsourcing of government services if they happen at all under austerity is only an incidental benefit as is increased neoliberal freedom in the “marketplace,” for spending, whether intended by the policy or not, is also seriously inhibited in the general economy..
Continue reading

Politics and Entertainment: Why are governments addicted to neoliberal #austerity?

The key to deficit reduction is not austerity – reducing government spending by cutting programs and personnel – but good old-fashioned employment. Stanford’s argument is in the Krugman reformist, Keynesian tradition. He doesn’t seek a transformation, merely a technical economic readjustment, but, given our failure to transform capitalism so far – which can be brought about,

Continue reading

Politics and Entertainment: Maybe its time to begin thinking about withdrawing our patronage from all retailers and services that offshore labour

“Yes, the Conservatives are focused on what they call the economy. But their economy is a ruthless, inhuman task-master. It demands that the very profitable Royal Bank be even more profitable. It demands that 45 highly trained people lose their jobs. It demands that Canada’s visa system allow all of this to happen. The government serves this economy faithfully. Whom does this economy serve?”      – Thomas Walkom, Toronto Star
_________________________________________________________________________________
Maybe its time to begin thinking about withdrawing our patronage from all retailers and services that offshore labour – including perhaps even call centres, which are the most inefficient offshore labour* of all. That might be hard to do, but choices can be made on the scale of evil, even though it’s true, as Phil Soubliere once told me, the lesser of two evils is still evil.
One could also continue to educate one’s family, neigbours, and friends about the exploitative practices that lie behind their shiny new mobile phone or computer, their wonderfully au courant clothing, their expansive new internet service, and their friendly neighbourhood bank. I find, however, that most people, wanting to get on with their necessitated drudge lives, could care less. Yes, of course you’re right, my dear fellow, but what can I do about it? So good luck with that. Maybe your mother will listen.
———————————————-
*English is indeed the language of business and global commerce thanks to U.S. imperial control of global finance, but the cultural differences, the nuances, the subtexts, the connotations, the rhythms among English language speakers are significant when it comes to communication efficiency – which is what a call centre should be all about. An English-speaking German really doesn’t speak the same language as an Indian or Texan. This is why offshoring call centres in the interest of profit and wage cost cutting is a failed business practice. It frequently if not always alienates clients.  The neoliberal habit of displacing domestic workers is also of course in and of itself morally reprehensible.
Continue reading

Politics and Entertainment: The issue is not #capitalism under new management, but the transformation of #capitalism itself. #neoliberalism #cdnecon

More and more I tend to agree with George Monbiot that it is not neoliberalism in and of itself as an ideology or economic theory that is the root cause of our economic/political/social woes, but the ruling oligarchy’s alibiing use of that model to further their own wealth no matter the harm that results from that quest. (Is it any wonder they’re called “the feral rich.”) The distinction is important because it shifts the strategic focus to the plutocratic investor class itself and in turn their banking, regulatory, and corporate institutions – their agents of destruction –  which are served of course by compliant governments everywhere and nowhere more so than right here in Canada. Our banks are now “too big too fail.” This is, sad to say,  the point to which the financialization of the Canadian economy has descended: 80% of  financial assets are held in these institutions. Be prepared for the socializing of bank debt down the road now that the framework’s in place; that is, you’ll pay for any bailouts.

More and more too I find myself in agreement with both Greg Albo and Leo Panitch, who have argued persuasively that progressives groups here (including the Council of Canadians) and elsewhere are very big on tactics and “micro-politics” but woefully lacking in overall strategy and considerations of  long-term consequences. I would add to their basic argument that the self-interest of the progressive groups each with its own agenda determined largely by their executives – as is the case with political parties – will no doubt continue to inhibit any collectivizing co-operative movement towards a larger, focused pragmatic goal of institutionalizing social democratic controls.

For a brief moment, there was a ray hope with the establishment of CommonCauses, but apparently all they wish to do is replicate the actions of other progressive groups and to replace the Harper Regime. The issue of course is much larger than that simplistic goal. The issue is not capitalism under new management, but the transformation of capitalism itself. Else all is lost.

Is it hopeless? Perhaps not. Perhaps all that is required is patience, As Richard Wolff has said, “As has happened often in human history, what provokes change is less any clear vision of where we go next and more the intolerability of where we are. Capitalism is no longer “delivering the goods” for most people. The circle of its beneficiaries grows smaller and richer and more out of touch with the mass of people than ever.”

Continue reading

Politics and Entertainment: Inform your “fiscally conservative” friends please of this astounding failure

#neoliberalism Under Flaherty the #cdnecon since 2006 has been a debt-fuelled financialized one only with little real production, productivity, or significantly increased employment to drive demand. Credit card debt has gone from $35.6 billion in February 2006 to $77.4 in February 2012, a staggering 117% increase.  Mortgage debt has gone from $672.5

Continue reading

The Ranting Canadian: SNC-Lavalin + Canadian politicians = organized crime The thoroughly corrupt SNC-Lavalin has its…

SNC-Lavalin + Canadian politicians = organized crime The thoroughly corrupt SNC-Lavalin has its dirty mitts in a bunch of lucrative federal and provincial projects across Canada, despite being tainted by multiple serious infractions. Why are they allowed to operate as normal? Are they another “too big to fail” corporation? Here

Continue reading

Politics and Entertainment: A 516.7 billion increase in personal debt and 140 billion in federal debt since Flaherty took over

#cdnecon An Appalling Performance from a Finance Minister. » Whatever economic movement we’ve had has been fuelled by essentially personal debt, an astonishing  516.7 billion increase since 2006, at a staggering 165% debt to disposable income ratio. Only #banksters and the investor class benefit from such a financialization of the economy. And we’re 140 billion deeper

Continue reading