Showing posts with label economic welfare. Show all posts
Showing posts with label economic welfare. Show all posts

Friday, December 05, 2008

A Few Thoughts on the Economy and Economics

My views on general economics are likely in keeping with Canada's broad middle. Most of the 'schools' of economics haven't panned out. Karl Marx was wrong. If everyone 'Takes according to their need and gives according to their ability' there are too many people who will 'take according to their ability and give according to their need' - too many people who won't realize their potential without occasional pushes and incentives. Adam Smith was also wrong. Everyone looking after their own self interest all of the time leads to disaster. There are alot of greedy people in the world and encouraging them to be greedier and greedier without cheques or limits lead to the economic collapses of 1929 and 2007. Even outside of economic collapse it leads to a few people being very, very wealthy and alot of people being very, very poor.

I think all of our leaders need to think in terms of hybrids, in terms of what has actually worked in the real world. I don't mean what has worked in the short term - neo-con economics worked for awhile, for some and then the bottom fell out. Supply side economics has it's place - but not much ends up 'trickling down'. The demand side is important as well, people at the bottom of the ladder have to have money to spend or there is no one to buy the products you make.

In terms of specifics I would recommend two things.

1) A Office of Public Investment (OPI): These should exist at the federal, provincial and local levels. The OPI would listen to please for bailouts, loans, tax deferrals etc., Instead of just handing out cash and tax credits though the OPI would invest. So, for example, if GM wanted 3 Billion Dollars, the OPI would buy 3 billion dollars worth of stock in the company and then (assuming the company returns to profitability) would sell that stock off over time, recouping the governments money and possibly turning a profit.

2) I still really like the $1000 Solution. It's a bit complicated to summarize and someone with better accounting skills than mine needs to take a look at it, but I believe it could end (or nearly end) extreme poverty and homelessness in Canada, boost sales for retailers and wholesalers, help people pay for prescription medications, day care, university, and more. If implemented along with a carbon tax it could even be good for the environment.

I guess the long and short of what I'm saying is that given the economic models we've tried haven't worked well for us we need to think boldly and creatively and abandon ideological positions when it comes to economics.

Tuesday, September 30, 2008

Green or Greed Canadians....make your choice

It sure didn't take long for our leader (using that loosely) Stephen Harper to refuse a meeting Jack Layton asked to call of the party leaders this week concerning the recent economic nosedive the markets have taken and strategize steps to ensure Canadian economic welfare. The PM would rather duke it out in front of Canadians instead of putting competition aside briefly to gather those leaders we rely on as taxpayers and Canadian citizens to plan for any downturns. Tell me, is this the man and the party you really want looking after our country in what may be a very stressful couple of years.

According to Wolfe Blitzer on CNN's The Situation Room today discussions on how long financial stress could last...their guess, a couple years at best....at best. That, a very scary scenario for all North America as well as global concerns of how strong the ship's vortex will be and if it will be strong enough to sink everyone, but Canadians better take cue, we are very close in every way to the ship's vortex, close enough to be sucked in pretty deep so we must now look to our future with the best plan and the best man.

The Green Shift Stephane Dion has taken on, a brave Liberal leader who knew would be criticized by taxpayers, media and party leaders alike, still took on the task to finally implement a federal plan, not just provincial, who looked into our future of Canada and as future Canadians as a whole. A Liberal leader who knew the odds were against him after the sponsor-ship scandal caused many to loose faith in the Liberal party, who was the underdog coming into this party, instead of waging a platform of false beliefs to ensure a win, stood by making Canada a leader in environmental issues knowing full well this will also drive our economy in the future more then any other plan that could be implemented at this point of North American lifestyle.

I have always stood by carbon taxing since reading the book Heat-How to Stop the Planet from Burning and stood by limitations over the past year when I realized how much junk I accumulated over many years and how much was unnecessary and felt horribly guilty from my contribution of wasteful junk, just because I could buy it, because I wanted it, because going to the nearest mall, building center or one stop shopping felt good. I realized after emptying my house, what I needed...and that was to limit and teach my children to limit themselves and find a way to help instead of hurt. I also had an epiphany of my own life...I needed to help fix my part in the destruction of the earth with all this junk now sitting in a dump somewhere emitting off toxic pollution while it slowly decomposes, I need to add my two cents everyday starting with learning limitations.

So many Canadian voters hear the word Carbon Tax and are duped into believing it is a bad tax but it is so important Canadians do their bit of homework and read what the potential it has for our future in economics and the fact is we all will be learning to limit our spending, one way or another at the given moment of what's brewing.



According to TD Canada Trust's report released today on "Time for a Vision of Ontario's Economy" that can be found on their website under Economics, Don Drummond, SVP and Chief Economist and Derek Burleton AVP and Director of Economic Studies, Ontario itself will benefit all around if they took a closer look at BC implemented Carbon Tax:



Ontario has already indicated an interest in cap-and-trade

in partnership with other North American players. One

challenge with the cap-and-trade option is that it may be a

fractured market and could take a while to mount. For

that reason, the Ontario government might want to take a

close look at what the B.C. government has been doing,

which is essentially a mix of all three options.



The tax begins at $10 per metric ton of CO2 equivalent and will incrementally

increase to $30 in five years and will raise close to

$1.5 billion per year in revenues when fully implemented

That will be recycled back to taxpayers in the form of lower

taxes. For Ontario, the driving force behind a carbon tax

is not merely to generate revenues for government, but to

effectively achieve behavioural change. Moreover, it could

create a source of funds for other elements of a sweeping

economic plan. Pg 16 of report.

This being said, I picked out some very important paragraphs from the report but there are many more to be made and I encourage all Canadians to read it even though it is based on the Ontario economy, the carbon tax and what it can do is explained in much economic detail and when Mr. Harper puts down the plans of this and throwing money only to those who he believes he can win votes is doing a great injustice to Canadians especially knowing what our future is potentially looking at.

I urge everyone to read as much as you can before this election, as Americans are now determining what President will do the best for the people based on the lies and deceit that has been happening and Barak Obama who was an underdog at one time, don't dismiss Stephane Dion so quickly because you hear the word TAX in his very heavy French accent. We need a Prime Minister in this term who fly's Red and White...and keep the blues for our southern friends.