Accidental Deliberations: Saturday Morning Links

Assorted content for your weekend reading. – In The Public Interest studies how the privatization of services leads to increased inequality: In the Public Interest’s analysis of recent government contracting identifies five ways in which government privatization disproportionately hurts poor individuals and families… Creation of new user fees: The creation

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Accidental Deliberations: Thursday Morning Links

This and that for your Thursday reading.

– Branko Milanovic examines whether the U.S.’ tax system is actually progressive all the way to the top of the income spectrum – and finds that there’s not enough data about the treatment of the extremely wealthy to be sure. And Robert Cribb and Marco Chown Oved discuss the latest Panama Papers revelations showing the large-scale stashing of Canadian assets in the Bahamas.

– Laura Wright reports that Canada’s federal government has approved secret surveillance technology which leaves the public in the dark as to which of its communications are subject to eavesdropping.

– Meanwhile, the federal government is rather less interested in the public safety concerns involved in documenting the fires on the First Nations reserves within its jurisdiction – having abandoned that task in 2010.

– Ross Belot writes that there’s no point in approving and building new pipelines at the moment other than political posturing. And the CP reports on the connection between air pollution from tar sands developments and the health of residents of the area.

– Finally, Adnan Al-Daini is encouraged by Sweden’s move toward a repair-not-replace mindset, and suggests the idea should spread further:

If more countries followed the Swedish example, think of the impact that would have globally on our CO2 emissions. Manufacturing goods is energy intensive. The website “Fix it-Don’t replace it” gives the example of the iphone6 where 85% of its lifecycle’s carbon footprint is from manufacturing it, not using it and another 3% from shipping it.

Climate change is with us already and such measures are needed as a matter of urgency. Such a proposal should not be a party political issue. Good quality jobs would be created in the country where the appliance is used. It would save the consumer money, and it is good for the environment.

Could we do something similar in Britain?  Does this have to be a political issue and parties have to have it in their manifestos before it could happen?  I don’t see where disagreement between parties could arise.

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Accidental Deliberations: Wednesday Morning Links

Miscellaneous material for your mid-week reading.

– Paul Wells argues that climate change and First Nations reconciliation – two of the issues which the Libs have tried to turn into signature priorities – look set to turn into areas of weakness as Justin Trudeau continues his party’s tradition of dithering. And Martin Lukacs writes that Trudeau’s handling of continuing injustice facing First Nations has involved an awful lot of flash but virtually no action:

The extractivist worldview—bent on treating everything as a commodity—that lay behind Stephen Harper’s resource agenda just as powerfully shapes Trudeau’s. In fact, the Liberals’ attempt to wrap themselves in the UN Declaration without embracing its central right may constitute a new, more subtle form of extraction: the extraction from Indigenous territory of consent itself.

Liberal moves to extract and manufacture consent and support for outdated policies are evident elsewhere: restoring funding to the Assembly of First Nations, a government-dependent organization that has since plumped frequently for them; appointing an Indigenous Justice Minister, even though Indigenous critics argue she has sided with the government agenda throughout her political career; and agreeing to call an inquiry into missing and murdered Indigenous women, but with a mandate far short of what impacted families wanted. As the weight of reality presses against Trudeau’s rhetoric, the ability to generate consent is crumbling.

Reconciliation is a powerful hope, an uplifting prospect, a deeply desired new relationship that Trudeau has compellingly invoked. But if reconciliation does not include the restitution of land, the recognition of real self-government, the reigning in of abusive police, the remediation of rivers and forests, it will remain a vacant notion, a cynical ploy to preserve a status quo in need not of tinkering but transformation. It will be Canada’s latest in beads and trinkets, a cheap simulation of justice.

– Guy Caron discusses the CRA’s role in Canada’s two-tier tax system. Stephen Punwasi comments on the connection between Canada’s willingness to facilitate tax avoidance, and the real estate bubbles driving housing prices far beyond what working-class Canadians can afford. And Marc Lee then highlights the connection between soaring urban real estate prices and increased inequality. 

– David Ball notes that many municipalities are retaking control over their own services after learning that the promises of efficiency through privatization are entirely illusory.

– Richard Orange points out Sweden’s intriguing idea of reducing taxes on repair services to discourage people from throwing out consumer goods. But I’d wonder whether that step alone would make a dent if it isn’t paired with a concerted effort at training potential repair workers for a job which the corporate sector would prefer to eliminate.

– Finally, Paul Mason makes the case for economics to be based on real-world observations of human behaviour, rather than insular mathematical models whose assumptions about market efficiency bear no relationship to reality. And Branko Milanovic discusses the need to measure and reduce inequality as part of a global development strategy.

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Accidental Deliberations: Friday Morning Links

Assorted content to end your week.

– Henning Meyer interviews Tony Atkinson about the readily-available options to combat inequality – with the first step being to make sure people actually have a voice in the decisions which define how wealth and power are allocated:

So, if you dive into the potential solutions you seem to suggest institutional changes. You mentioned that public policy should aim at a proper balance of power amongst stakeholders; what exactly do you mean by this?

Well I think I should say first of all that my aim in writing the book was to try and dispel the sort of sense of inevitability about high inequality and therefore I was putting forward various ways of seeking to understand why it comes about and therefore how we can moderate it. And I think one of the things that has certainly happened is that institutions, like for example corporate institutions, companies, which used to have a broader view of their responsibilities, that they recognised that they had a responsibility in addition to that to their shareholders – also to their workers and to their consumers and their customers.

And I think it’s this broader notion of the social obligations of institutions and of course of individuals as well that we have responsibilities beyond both our own personal economic gains and losses. So I think that it’s part of a reaction that I have had to what seems to be a narrowing to a very much individual based self-interest which has come to emerge in the last two or three decades.

Okay, and then new ideas like Michael Porter’s shared value capitalism, they try to sort of, not revive the old dichotomy between shareholder and stakeholder models but try to align public and private interest in addressing some of the most pressing social and economic needs. Could that be one way of addressing these considerations?

Yes, I think in a sense part of the issues arise because we had in the post-war period some kind of balance of power between on the one side employers and the other side often trade unions or workers’ representatives. And that of course has shifted in quite a number of countries as a result of a number of things including, for example, the effect of privatisation resulting in reducing the power of trade unions to influence the behaviour of those institutions. So, I think we’ve seen a shift of power definitely away from workers towards capital, those who run firms.

So I think a number of proposals were designed to try and at least make sure that those interests of workers and indeed consumers should be represented. And a good example is provided by the negotiations with regard to trade agreements which seem to involve only one side as it were of that equation.

– And Van Jones writes that the Trans-Pacific Partnership and other trade deals are set up to block action against climate change.

– CUPE points out the leakage of massive amounts of revenue to tax havens and avoidance as a crucial factor in austerity politics. And Craig Wong reports on the latest increase in Canadian consumer debt as people borrow to try to make up for the lack of advancement in wages.

– Susan Ochs discusses Wells Fargo’s widespread fraud as yet another example of workers and consumers being punished for the misdeeds of high-ranking executives.

– Alia Dharssi continues her reporting on migrant workers in Canada by highlighting how recruitment agencies exploit workers who can’t stand up for themselves. And Chris Buckley argues that labour and employment laws in general need to be updated, particularly to protect people stuck with precarious work.

– Finally, APTN reports on the Canadian Human Rights Tribunal’s latest order requiring the federal government to stop discriminating against First Nations children – though the fact that two previous orders haven’t led to the government complying signals that the Libs’ in following through may be rather less than advertised.

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Accidental Deliberations: Tuesday Morning Links

This and that for your Tuesday reading.

– Bill Moyers writes about the conflict between the wealthy few seeking to preserve their privilege, and the balance of society seeking fairness for everybody:

I keep in my files a warning published in [The Economist] a dozen years ago, on the eve of George W. Bush’s second term. The editors concluded back then that, with income inequality in the United States reaching levels not seen since the first Gilded Age and social mobility diminishing, “the United States risks calcifying into a European-style class-based society.”

And mind you, that was before the financial meltdown of 2007–08, before the bailout of Wall Street, before the recession that only widened the gap between the super-rich and everyone else. Ever since then, the great sucking sound we’ve been hearing is wealth heading upwards. The United States now has a level of income inequality unprecedented in our history and so dramatic it’s almost impossible to wrap one’s mind around.

Contrary to what the president said at Rutgers, this is not the way the world works; it’s the way the world is made to work by those with the money and power. The movers and shakers—the big winners—keep repeating the mantra that this inequality was inevitable, the result of the globalization of finance and advances in technology in an increasingly complex world. Those are part of the story, but only part. As G.K. Chesterton wrote a century ago, “In every serious doctrine of the destiny of men, there is some trace of the doctrine of the equality of men. But the capitalist really depends on some religion of inequality.”

…The winners bought off the gatekeepers, then gamed the system. And when the fix was in, they turned our economy into a feast for the predators, “saddling Americans with greater debt, tearing new holes in the safety net, and imposing broad financial risks on Americans as workers, investors, and taxpayers.” The end result, Hacker and Pierson conclude, is that the United States is looking more and more like the capitalist oligarchies of Brazil, Mexico, and Russia, where most of the wealth is concentrated at the top while the bottom grows larger and larger with everyone in between just barely getting by. 

– Chris Lehmann reviews Brooke Harrington’s Capital Without Borders as a useful look at how “wealth management” serves to sever wealth from social responsibility. But Canadians for Tax Fairness point out some good news in the CRA’s response to the Panama Papers – including audits of 60 individuals and corporations caught in the offshoring scheme.

– Unfortunately, John Ivison suspects that the Libs are gearing up to push through the Trans-Pacific Partnership to further the trend toward corporate control.

– Phillip Inman reports on the latest study from Global Justice Now showing that corporations are pushing further up the list of the world’s largest economic entities, leaving an increasing number of countries behind. But there may be some opportunity to direct that news toward positive ends: if we’re going to need some outlet for Canadian national pride, surely staying ahead of Wal-Mart should be a reasonable minimum standard for global relevance.

– Finally, Kendall Worth offers some suggestions as to how to teach students about poverty in order to better understand the lives of people in their communities. Alana Semuels points out how the U.S. in particular has gone in the opposite direction by setting up institutional barriers to any serious economic study of inequality. And Peter Armstrong discusses how traditional economic policy is failing to produce the growth that would normally be expected – with a top-heavy distribution of wealth and power looming as the prime culprit.

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Accidental Deliberations: Saturday Afternoon Links

Assorted content for your weekend reading.

– Don Pittis writes that it will take far more than words and sentiments to reverse the trend of growing income inequality. Elaine Power points out that Ontario’s social assistance programs – like those elsewhere – far fall short of meeting basic human needs. And Christopher Mackie reminds us that the effects of poverty go well beyond immediate financial consequences:

Canada has free, high-quality healthcare for everyone. So why do the richest 10% of people live seven years longer than the poorest? Deep poverty can be associated with a drop in life expectancy of 20 years or more. If we look at both life expectancy and years lived with disability, the rich are 39% healthier than the poor.

Income affects health in several ways, including the direct impact on the resources needed for healthy living, access to healthy physical environments and access to healthy social environments.

Poverty limits access to nutritious food, recreation opportunities, adequate housing, and the education needed to pull oneself out of poverty. Each year, the Middlesex-London Health Unit issues a report that compares the cost of nutritious food to income received from minimum or welfare wage. This Nutritious Food Basket Report consistently shows that it is impossible for people on low income in London and Middlesex County to afford healthy food once basic costs such as rent and utilities are paid.

The benefits of policies that address poverty go far beyond simply helping the poor. Research has consistently shown that everyone is better off in societies that are more equal. Comparisons of countries which are part of the Organization for Economic Cooperation and Development (OECD) consistently show that in societies that are most equal, even the poor are healthier than the rich in societies that are the least equal. In other words, greater income equality means better health for everyone – including the rich.

This paradox – that my income is linked with my health, but that my society’s income equality is also linked with my health – is not fully understood. One theory is that it is linked with the social environments we live in. More unequal societies tend to be more competitive, with fewer opportunities for upward mobility. This can be associated with stress and hopelessness. Stress is linked with a number of health problems from heart disease to cancer. Hopelessness can be devastating, reducing motivation to seek employment and leading a person to neglect their health or even engage in self-harming behaviours like addiction to alcohol and drugs.

In more equal societies, a feeling that friends, neighbours and fellow citizens will offer help when needed can be motivational, even leading to an increased sense of self-worth. Reduced stress can allow us to see past day-to-day challenges and make better decisions for the long term.

– Christopher Adams exposes how employers are exploiting millenial workers. And Evelyn Kwong and Sara Mojtehedzadeh report on a temporary employee’s workplace death in Toronto, while Adam Hunter discusses the appalling trend of people being killed on the job in Saskatchewan.

– Tonda MacCharles reports on the Libs’ discussion paper on security laws. And Jeremy Nuttall notes that there’s ample reason for concern that they want to make matters even worse by reviving dubious “lawful access” provisions rather than correcting even the overreach found in Bill C-51.

– The Star’s editorial board writes that we should be strengthening our universal public health care system rather than destroying it as Brian Day and others want to do.

– Finally, Kathy Tomlinson details how Canada’s tax laws are being flouted by the investors making millions off of the explosion of Vancouver’s real estate market.

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Accidental Deliberations: Friday Morning Links

Assorted content to end your week.

– Armine Yalnizyan writes that the response to the European Commission’s finding that Apple has dodged $20 billion in taxes may tell us all we need to know about the relative power of governments and corporations:

The EC is also investigating state support received by Amazon and McDonalds in Luxembourg, a tax haven. Expect more costly court battles about the appropriateness of laws and systems of governance.
Since the 2008 economic crisis, giant corporations have gone from being “too big to fail” to “too big to pay.”
But as the big tax avoiders get feisty, so too are voters. The Panama Papers have made people aware of the hypocrisy: when those with deep pockets don’t pay, everyone else pays more. Governments are legitimately worried about their finances, and more focused on tax fairness than in decades. But as corporations both fight and rewrite the rules, occasionally cash-starved, debt-ridden nations are being enlisted to support their agenda.
The Apple story is huge. It could presage the end of tax competition, as nations co-ordinate attempts to combat absurd levels of tax-dodging. Or it could signal growing dominance of corporate power over state power. High stakes, to be sure, in the evolution of 21st-century globalization.

– Meanwhile, Allan Sloan discusses how Mylan’s profiteering in ratcheting up the price of EpiPens has been paired with glaring tax avoidance. And the NDP points out the conspicuous lack of any public benefit from the Libs’ and Cons’ track record of corporate tax slashing in Canada.

– Alex Hemingway writes about the costs of privatizing public infrastructure. And Thomas Walkom highlights the Libs’ options in reviewing Canada Post’s future – which include taking an obvious opportunity to better meet a large number of social needs through a postal banking system.

– Bloomberg View rightly argues that fossil fuel subsidies are about the dumbest possible type of public policy. And Samantha Page offers another reason why that’s so by pointing out the devastating health effects of oil and gas production and distribution.

– Finally, Simon Enoch offers a much-needed warning to the rest of Canada as to what Saskatchewan faces with Brad Wall in power.

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Accidental Deliberations: Tuesday Morning Links

This and that for your Tuesday reading.

– Dennis Howlett discusses the public costs of allowing tax avoidance – as Canada could afford a national pharmacare program (and much more) merely by ensuring that the rich pay what they owe:

Eliminating tax haven use could save Canada almost $8 billion a year. That’s enough to cover universal public prescription coverage almost eight times over.

Time after time, budget after budget, poll after poll, those in charge make it sound as if we’re too poor as a country to afford the programs that would really improve Canadians’ lives. The fact that revenues are lost to poor policy on tax havens and loopholes is often conveniently ignored.

At this stage of the game, the federal finance minister doesn’t need to raise taxes to pay for pharmacare. Bill Morneau just has to make sure that Canadian multinationals and wealthy individuals pay the tax rate we already have. That isn’t happening right now.

It’s simple. Canadians can continue to support a tax system that lets the richest avoid paying $8 billion in taxes annually — or we can tell them that the party’s over. Instead of ignoring what is happening in the Cayman Islands, Panama and other tax havens, we can urge our politicians to invest the taxes owing on those billions into services that benefit individuals, families, communities and the country as a whole.

There is solid data supporting raising taxes in some areas. But that’s an argument for another day. The issue at hand right now is that we do have enough money for pharmacare — likely enough for public dental care as well. Through a series of misguided and outdated decisions driven by the tax dodge lobby, we are needlessly and destructively giving up that revenue.

It’s time to fix those old mistakes and use the tax system to help this country live up to its potential.

– Meanwhile, Owen Jones discusses a European Commission ruling finding that Apple can’t validly avoid paying tax through a special arrangement with Ireland. And the Star rightly slams the Fraser Institute for presenting a misleading picture of where public revenue comes from and what it can accomplish.

– The CP reports on the Libs’ plans to facilitate the use of temporary foreign workers for liquid natural gas projects in British Columbia – meaning that the last supposed benefit for the province of engaging in a dangerous industry seems to be as illusory as all the others. And Jeremy Nuttall notes that Justin Trudeau seems set to open the door even wider to entrench the use of exploitable foreign labour by multinational corporations. 

– Finally, Catherine Cullen reports on the effects of privatized health care insurance which are being presented in an effort to defend Canada’s medicare system from would-be profiteers:

John Frank, a Canadian physician who is now chairman of public health research and policy at the University of Edinburgh, argues in his report that more private health care “would be expected to adversely affect Canadian society as a whole.”

He cites research that suggests public resources, including highly trained nurses and doctors, would be siphoned off by the private system.

More Canadians would face financial hardship or even — in extreme cases — “medical bankruptcy” from paying for private care, he writes.

Frank even suggests there could be deadly consequences. He says complications from privately funded surgeries often need to be dealt with in the public system because private facilities are generally less equipped to handle complex cases.

“If such complications, arising from privately funded care, are not promptly referred to an appropriately equipped and staffed care facility, the patient is likely to experience death or long-term disability, potentially leading to reduced earnings and financial hardship.”

Overall, “in my expert opinion,” Frank writes, the change would reduce fairness and efficiency and “society as a whole would be worse off.”

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Accidental Deliberations: Monday Morning Links

Miscellaneous material to start your week.

– Jim Hightower argues that there’s no reason the U.S. can’t develop an economic model which leads to shared prosperity – and the ideas are no less relevant in Canada:

Take On Wall Street is both the name and the feisty attitude of a nationwide campaign that a coalition of grassroots groups has launched to do just that: take on Wall Street. The coalition, spearheaded by the Communication Workers of America, points out there is nothing natural or sacred about today’s money-grabbing financial complex. Far from sacrosanct, the system of finance that now rules over us has been designed by and for Wall Street speculators, money managers and big bank flimflammers. So, big surprise, rather than serving our common good, the system is corrupt, routinely serving their uncommon greed at everyone else’s expense.

The coalition’s structural reforms include:
1. Getting the corrupting cash of corporations and the superrich out of politics with an overturning of Citizens United v. FEC and providing a public system for financing America’s elections.

2. Stopping “too big to fail” banks from subsidizing their high-risk speculative gambling with the deposits of  ordinary customers. Make them choose to be a consumer bank or a casino, but not both.

3. Institute a tiny “Robin Hood tax” on Wall Street speculators to discourage their computerized gaming of the system, while also generating hundreds of billions of tax dollars to invest in America’s real economy.

4. Restore low-cost, convenient “postal banking” in our post offices to serve millions of Americans who’re now at the mercy of predatory payday lenders and check-cashing chains.

– Juliette Garside reports on the EU’s efforts to get the U.S. to agree to basic reporting to rein in offshore tax evasion. And Heather Long points out Joseph Stiglitz’ criticisms of the Trans-Pacific Partnership as enriching corporations at the expense of citizens.

– Amy Maxmen notes that a non-profit system can develop new drugs far more affordably than the current corporate model – and without creating the expectation of windfall profits that currently underlies the pharmaceutical industry.

– Jordan Press offers a preview of a federal strategy for homeless veterans featuring rental subsidies and the building of targeted housing units – which leads only to the question of why the same plan wouldn’t be applied to address homelessness generally.

– Alan Shanoff comments on the many holes in Ontario’s employment standards (which are generally matched elsewhere as well).

– Finally, Dougald Lamont highlights the many ways in which the Fraser Institute’s anti-tax spin misleads the media about how citizens relate to Canadian governments.

[Edit: fixed wording.]

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Accidental Deliberations: Sunday Morning Links

This and that for your Sunday reading.

– Chris Hamby starts off what looks to be a must-read investigation on the effect of ISDS rules by discussing how they’re used to prevent governments from punishing corporate wrongdoing:

(A)n 18-month BuzzFeed News investigation, spanning three continents and involving more than 200 interviews and tens of thousands of documents, many of them previously confidential, has exposed an obscure but immensely consequential feature of these trade treaties, the secret operations of these tribunals, and the ways that business has co-opted them to bring sovereign nations to heel.

Reviewing publicly available information for about 300 claims filed during the past five years, BuzzFeed News found more than 35 cases in which the company or executive seeking protection in ISDS was accused of criminal activity, including money laundering, embezzlement, stock manipulation, bribery, war profiteering, and fraud.

Among them: a bank in Cyprus that the US government accused of financing terrorism and organized crime, an oil company executive accused of embezzling millions from the impoverished African nation of Burundi, and the Russian oligarch known as “the Kremlin’s banker.”

Some are at the center of notorious scandals, from the billionaire accused of orchestrating a massive Ponzi scheme in Mauritius to multiple telecommunications tycoons charged in the ever-widening “2G scam” in India, which made it into Time magazine’s top 10 abuses of power, alongside Watergate. The companies or executives involved in these cases either denied wrongdoing or did not respond to requests for comment.

Most of the 35-plus cases are still ongoing. But in at least eight of the cases, bringing an ISDS claim got results for the accused wrongdoers, including a multimillion-dollar award, a dropped criminal investigation, and dropped criminal charges. In another, the tribunal has directed the government to halt a criminal case while the arbitration is pending.

– And Dharna Noor interviews James Henry about the need for international cooperation – at both the government and public level – to crack down on tax evasion.

– Tyler Hamilton discusses the health effects of climate change. And Joseph Erbentraut examines how a changing climate is affecting both the quantity and quality of the water we depend on. 

– Kev responds to the spread of #goodriddanceharper by pointing out that as satisfying as it was to turf the Cons from office, we’re still facing most of the same anti-social policies with a more media-savvy face. And Doug Nesbitt reminds us that the Trudeau Libs are no friends of labour – with Canada Post’s appalling attacks on vulnerable workers serving as just the latest example.

– Finally, the Canadian Press reports on a much-needed push for resources to address mental health in Canada.

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