Economics 101

In the last week or so I have read or watched two radically different individuals discuss the current state of affairs of Canadian businesses. It is hard to believe that two people with I assume similar education or at least using the same type of information would present such different understandings of how the Canadian economic world works.

Gwyn Morgan in a piece from the Globe and Mail entitled “Corporation’ is not a bad word: How to fight against pervasive anti-business rhetoric” published in their online edition of September 7, 2014, argues that there is a concerted effort being made by the liberal establishment – specifically the various institutions of post-secondary education (but also Hollywood) to maliciously malign capitalism. Morgan further maintains that such active misinterpretation of the facts will lead us all to revert to communism. He suggests that this sort of almost brain washing of the young will make it impossible for corporations in the future to exist or at least to be effective. Of course Morgan’s concern is not only that some people are opposed to capitalism, but rather that this misguided approach on the part of the public will lead to a change in public policy. And of course if that happens - corporations will make less money (and the world will dissolve into chaos)

The above is not a new argument and quite frankly not that persuasive. It would perhaps be more interesting if I had any sense that big business as an entity was at risk. However it seems to me that capitalism, globalization and corporations, in spite of the economic crash that happened less than a decade before – a crash that clearly demonstrated the ineffectiveness of capitalism to either monitor or to fix itself – is alive and well. Furthermore there is every indication that the Canadian government is clearly wedded to the concepts espoused by capitalization. It strikes me as absurd that someone would publish a piece arguing that we need to be more active in preventing a return to the “Marxism-socialism” world of Soviet Russia.

      On the other hand, TVO gave author and economist Mariana Mazzucato a platform to discuss her latest book The Entrepreneurial State - Debunking Public vs. Private Sector Myths. Her primary argument is that the private sector are not the innovators that drive the economy but rather that it is the public sector (governments) that funds and drives research. And there are lots of examples for her to chose from that prove her case: the internet was initially funded by the American Government; the research on how to develop the Alberta Tar Sands was at least in part paid for by tax payers; research into GPS, touch screens, the green revolution, biotech and pharmaceuticals were all supported in their early days of development by the public purse. The private innovation funds only start to invest when much of the risk has been alleviated.  Mazzucato went on to say that corporation have millions and millions of dollars sitting in their bank accounts, money that they could invest into their industry but they don't. Why would they when the government will?

Of special interest to me were three issues that were raised during Mazzucato's discussion with Steve Paikin. One is that we, the public, are not informed as to our government's investments in certain high risk ventures - unless of course it turns out to be a poor investment. Then the opposition has new a new two by four to beat up the government of the day, but there is no public debate as to whether we want that kind of investment. I spend some energy being careful that my limited retirement funds are not invested in corporations with poor environmental records. Clearly I am wasting my time if my government is investing in the very corporations that I am opposed to.

Secondly if we the public are investing in these high risk ventures - how come we don't make money on that investment when things work out well? Why do private (wealthy) investors make money when the risk has been assumed by the public purse? And finally if investing in high risk ventures that could benefit the country as a whole is going to happen - could we please have someone making those investments not because of ideological positions but rather because Canadians will benefit not only financially but socially as well.

In thinking about the two positions taken by Mazzucato and Morgan - it would seem to me that it is well past time that capitalist and their shills stop whining about how hard life is (and therefore how they should pay less and less tax on their corporate income). They should stop telling us how invaluable they are to the Canadian economy and for heaven's sake the need to stop pretending that they alone are the final bastions of democracy. Instead  they should stand up and give thanks for the millions and millions of dollars that they directly or indirectly receive from the Canadian tax payer and perhaps just a small thanks for the fact that they live and work in a country that is so gullible. 

 

On the Road Again 2014 The Gathering #3

I stayed with the car while the other three went to check out the site. In spite of promises that it would be a trail that even an old man could do easily, I was not that confident that it would be an easy trail. The concern was validated when I noticed that that within three feet of the road there was a ditch with a three to four drop to clamber down and then almost immediately a ten to twelve foot bank to climb back up on the other side. I was feeling lazy and I didn't want to take a hard trail if there was an easy one. However within a few minutes they came back and said it was just a short walk. And they were right. The river was a five minute walk (and most folks would have only taken half that long). The short mossy path meandered through patches of ferns while over-head there was a forest of decent size second or third growth fir trees. It was dark and cool within the small forest and I immediately decided that I would put up my tent near some other tents. The thick moss looked very inviting. Besides putting up my tent there meant that I didn't have to climb down the steep three foot bank at the river bed's edge with a heavy pack on my back.

Putting my tent amongst the trees proved to be a poor decision. While the moss certainly was thick and green, it covered up a thick layer of branches and rocks so that, at least where I was at, it was difficult to find a level area for my sleeping bag. It was also dark in the forest, a little bit buggy, and that moss made it just too easy to lose things. I moved my tent down to a gravel beach ten feet from the river's edge the next morning.

The site was, in terms of width, not very large but there were lots of spaces up and down the river for people to hang out, swim or sun bath. The seed camp had done a great job in terms of preparing the main circle and had a fire pit working in the kitchen area. The food supplies were put away just behind the kitchen. The fast moving river itself was fifteen to twenty feet wide in some places and up to people's shoulders. In other spots it was quite shallow. There were lots of spots for camp sites on both sides of the river. In spite of the fact that the road was only five minutes away, it felt as if we were camping in the middle of nowhere.  Even when there were sixty plus people there, it never felt crowded.

There was another group of three people camping a  hundred or so yards downstream and their presence turned what would have been a fine Gathering into an outstanding one. The Krishnas have long been a part of Gatherings. They come, camp away from the main area and usually have food that they prepare and share with the Family. I have been to BC Gatherings where one could spend a week there and never see them. This time the three, who were from the Ashram at Ashcroft on the mainland, came to cook. They brought piles of food, huge pots and great recipes. Every night for seven nights they cooked up a feast. The food was carried to main circle and we ate like kings (and queens). They joined us for meals and participated in our conversations. They were fun, great to talk to and seemed happy that we kept on saying thank you for the great food. In spite of popular mythology, with the exception of two times when people were sharing stories, they did not discuss their personal faith, they did not chant, have bald heads or wear robes. They were just ordinary folks who were committed to providing a service to other people. 

Because of the fact that supper was provided for us, we didn't get a real kitchen built until the sixth or seventh day. Breakfast which was frequently porridge with a side of fruit salad does not need much of a kitchen. Because the  Krishna kitchen was down river, many of the Rainbows spent at least part of their day in the area helping in the kitchen and chatting with others. The fact that the best spot to swim and to sunbath was also near their camp added to the attraction of being down there.

The food is always interesting at a Gathering. At any Gathering there are usually a handful of people who have cooked over an open flame for large number of people and almost always people who want to cut and chop vegetables. But there are times when the food is perhaps not as well seasoned as it should be, or the rice is not quite cooked enough. There are also times when the cooks underestimate the amount of food needed (usually because six or seven people arrive five minutes before dinner is served). With the Krishnas, many people, including me said no to thirds - we were that stuffed. For many of us, we ate as fine there as we would have in any vegan restaurant on the plant.