By Mark Taliano
Recently in Canada’s House Of Commons, Green Party Leader Elizabeth May cautioned, “Beware the wages of spin”.
Canada’s Prime Minister Stephen Harper, emboldened by his majority of seats, dictates his party’s economic ideology.
May’s comment was directed specifically at the undemocratic nature of Bill C-38 (known more simply as the omnibus budget bill), but it applies just as appropriately to the economic mismanagement of the Harper regime. Without the “spin”, this government’s economic record reveals itself to be a failure on many levels.
Consider first, the Dutch Disease, which is now deforming what used to be a more diverse Canadian economy. Harper’s headlong rush to exploit the tar sands regardless of the environmental, economic, and democratic costs is impacting many jobs outside of Alberta in a predictable and negative fashion. A now suppressed report by Harper’s conservative government states the case that between 33 per cent and 39 per cent of manufacturing job losses are directly attributed to the Dutch Disease. When the Harper government proclaims that it is “creating” jobs, it does not mention that it is also “destroying” just as many jobs. Furthermore, the jobs being lost are “value added” jobs, which are always more important to a country’s welfare and productivity than primary resource extraction jobs.
The government spin would also have us believe that corporate tax cuts are the way to go. This, however, contradicts evidence that the Canadian branches of foreign corporations are typically not re-investing their profits into the economy or into research and development. (If a company is owned in the U.S, most of the R and D is done there.) Additionally, spending (on infrastructure, income supports, and housing initiatives) has been proven to be a better strategy for improving the economy, especially during recessionary times. Firms that put their capital (and profits) to work inCanada, with jobs and value-added enterprises, should be rewarded. Those that take their profits and value-added enterprises elsewhere (i.e Sinopec) should not be rewarded.
Tax havens, a topic rarely addressed in the government spin, are also a huge drain on our economy and on the 99%, in particular. Canada’s five major banks (RBC, TD, Bank Of Nova Scotia, BMO, and CIBC) have collectively avoided paying $16 billion in taxes between 1993 and 2007. Clearly, the government should be spending more time addressing these revenue losses, and less time harassing David Suzuki… but it’s all in the spin.
Impacts of a resource-based economy, of corporate tax breaks, of a branch plant economy, and of tax havens, are real and significant, but an unwitting public, controlled by a masterful spin, isn’t getting the whole picture. The 1% couldn’t be happier, but the 99% needs to continue on its journey of awakening.
Mark Taliano is a Niagara resident and regular contributor to news and commentary on Niagara At Large.
(Niagara At Large invites you to share your views on this post below, remembering that we only post comments by individuals who also share their first and last names.)
Niagara At Large 
Excellent article, Mark!
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I aggree, Mark you are a kindred spirit, your articles always strike a chord, thank you for all your great research and hard work, you remind me of a young passionate reporter who once worked for the St Catharines Standard 30 years ago,.you give me hope that we shall overcome, some day.
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Today in a local newspaper a noted European parliamentarian and an United Nation’s Official voiced their opinion concerning the present Canadian Governments role in the world, as well as in our own country and in fairness to them many “Canadians” have those same thoughts.
There seems to be a passion, an ownership of this government especially this conservative government by Corporations whether Canadian and/or International and it becomes more evident with each passing day as the “Rights” of the peoples are completely ignore, in fact trampled upon to satisfy the demand of those same corporations Yes trampled upon by so called “Elected Representatives of these
same peoples who trusted them and this is the shame as they do it smugingly with a complete lack of regard for the wants or needs of the people..
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Arguments that environmental regulations are “job-killing”, and that de-regulation creates jobs, is often used in U.S. political rhetoric, but has increasingly been discredited – http://wcel.org/resources/environmental-law-alert/importing-us-%E2%80%9Cjob-killing%E2%80%9D-rhetoric. Thanks for this interesting look at Bill C-38, Mark.
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Furthermore, the jobs being lost are “value added” jobs, which are always more important to a country’s welfare and productivity than primary resource extraction jobs.
That’s a bold claim. Got any sources for it?
Additionally, spending (on infrastructure, income supports, and housing initiatives) has been proven to be a better strategy for improving the economy, especially during recessionary times.
Ah, here we have Keynesianism economics, which we are finally seeing proven as the nonsense it’s always been. Take a look at Europe.
Austrian School economists have always said Keynesians would run out of money to borrow someday. Now they have.
So please tell me from where you want to borrow the money to spend on infrastructure, welfare, and housing for the poor to trash they way they always do.
Oh, you don’t like that? Then show me low income housing that hasn’t been trashed. You can’t. Because as Larry Elder said, “One of the hardest things in life is to appreciate the value of something you got for nothing.”
Clearly, the government should be spending more time addressing these revenue losses,
Whoa. They are NOT “losses”.
Preventing the thieves in Ottawa from stealing does not make it a loss, any more than installing an alarm system and hiring guards makes your money and jewelry a “loss” to a burglar.
Tax avoidance is legal, smart, and patriotic. Forcing those thieves in Ottawa to live within their means is good for all of us.
Good on you tho, for making it appear I’m defending the evil banksters. I’m not. Banksters – with their private cartels aka central banks, fractional reserve banking, and fiat currencies — are thieves, and I’m for indicting them all. And that’s not hyperbole. I’d volunteer for jury duty. Heck I’d volunteer for the prosecution.
No, I’m defending everyone’s right to avoid paying taxes. Punishing people for being productive, and for saving and investing, is evil and wrong. If you want to steal to run the country – and we can debate forever about how much government is necessary – then steal when people spend. That’s the only relatively “fair” method of stealing.
From your source at Canadaunct.net:
“Canada – with its rich natural resources, and ability to produce energy – is very unlikely to become impoverished as a result of failure to attract foreign investment.”
For now. If that mean spirited economic ignoramus Mulcair gets in, watch how fast investors flee.
”If investors do actually leave because of an increase in the corporate tax rate, Canadian companies will step up to benefit from those resources, and create jobs in the process.”
I call Shenanigans.
If the investment climate is poor, Canadian investors will leave along with foreign investors, to where it is better. Oh sure, like in the stock market, there are always a few fools who stick around until the end to lose everything. They aren’t enough tho.
”The argument is that a low corporate tax rate benefits Canada, because it attracts business, and creates jobs. But it also means that Canadian job-creators sell out to foreign investment, and that good jobs that currently exist are replaced with less stable, lower-paying jobs.”
This is a Grand Canyon sized leap of “logic”… so large it’s impossible to make sense of.
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Seconded
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Europe is crashing because of neoliberalism. People who preach libertarianism and such ignore the fact the the taxpayer ALWAYS has to bail them out. Banks don’t like regulations, but the taxpayer always has to bail them out. P3 hospitals etc. are great, but they cost a fortune to the taxpayer.Cons etc. don’t like high taxes, but they love to be continually bailed out as recently happened with the financial meltdown, and as is now happening in Europe. Income disparities haven’t been this high in Canada since prior to the depression because labour is de-valued, trade deals ship jobs to China, and world destroying tar sands exploitation is inflating the dollar, petro-state style. The middle class needs to be bailed out … at least they’d spend money in Canada instead of shipping it off-shore to tax havens as the banks do, or to China, as Sinopec and the 70 some-odd percent of foreign tar sands companies will do. We are now world environmental leaders in the acceleration of Climate Change. What an honour. According to Stats Can CANISM Table 281-0024, even Alberta is losing manufacturing. Alberta lost 10,165 manufacturing jobs over the last 5 years. Canada is losing its democracy (i.e Bill C-38), it’s international reputation (Fossil fuel awards, loss of UN Security seat), its sovereignty (energy cos. i.e Sinopec, which is really China, impacting environmental legislation, its productivity, and we’re also running a huge deficit.
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Harper likes to talk a lot about trade deals, but when he was elected, Canada’s exports were 38% of GDP. Now they are 31% of GDP.
http://t.co/ME5ec014
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My previous link didn’t work. Here’s an interesting one regarding trade deals etc.
http://openparliament.ca/committees/international-trade/41-1/37/dr-james-stanford-1/only/
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Dutch disease indeed. So why are other countries having exactly the same problem yet their economies aren’t as dependent on oil exports?http://business.financialpost.com/2012/06/20/cme-labour-shortage-not-dutch-disease-biggest-obstacle-for-manufacturers/
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The power of oil lobbying: They try to make the world believe that Climate Change related to human activity doesn’t exist, and on and on. Europe is suffering from globalized neoliberalism as are we. And our manufacturing especially is suffering from the Dutch Disease. China/Sinopec loves to see these debates. Dutch disease indeed. Global warming indeed. Here’s an idea. Maybe, just maybe, we should model our economic energies on a winning formula, which is alternate energy, rather than a losing formula, which is scraping bitumen. “Drawers of water, hewers of wood, scrapers of bitumen” (a.k.a. losing formula.)
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The cons might think that Suzuki is some kind of radical fringe terrorist, but he’d receive a warm welcome in Germany, which is one of the leading European economies at this moment:
http://www.davidsuzuki.org/blogs/science-matters/2012/06/germany-recently-reached-a-renewable/
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Mark,another great article. It bothers me when some writers attempt to be well balanced or clutter their articles with facts and references. Honestly, the idea of an entire article against political spin created by merging the spun messages of several political parties and special interest groups was also pure genius. Take care and thanks again.
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Corporate tax cuts versus productivity:
http://melhurtig.ca/2010/08/21/more-ugly-indicators/
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OECD and Dutch Disease:
http://www.cbc.ca/news/business/story/2012/06/13/oecd-canada-outlook.html
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international reputation:
http://www.facebook.com/#!/photo.php?fbid=3993560593191&set=a.3170912827511.2152615.1106208090&type=1&theater
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Tax havens:
http://www.nupge.ca/content/3626/rich-canadians-evading-taxes-offshorfe-accounts
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I wonder if you’ll see this one on TV:
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Absolute total bullshit, in the finest far left, misinformed or low information tradition. Canada has the best job creation in the G8, the G20. BEST! The spinoff from resource development across the country is enormous. The problem with job less in Ontario is unions pricing themselves out of contention. The offset is a low tax regime that brings in investment and business development. Canada is one of the best business environments in the world, and this stuff from May ( a woman who has never developed a single job in her life) is total crap. And the rest of the folks on this blog – know nothing about the topic either. Try running a business and creating a job instead of living off the public dole, and then you have some credibility.
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Gary Fraser, must live in a parallel universe. Or maybe Alberta, where my son works at different times. Here in the real world the Towns of Fort Erie, Welland and Thorold resemble Detroit City. All of our high paying jobs were exported to Mexico under the guise of Free Trade.I ran a business in Niagara Falls from 1986 to 1998, until I contracted a life threatening disease similar to Lupus and am now under constant chemo medications.
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Herr Harper creates foreign temporary jobs, but ships good manufacturing jobs to other countries. His trade deals are a flop. Even resource rich Alberta is running a deficit. No wonder Kevin Page (and so many others) aren’t welcome: they use real evidence to back up their claims, rather than fiction.
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Increased GDP means more money to tax havens and corporate profits that aren’t being re-invested for improved productivity. 6% of the population owns about 96% of the wealth. Poverty rates in Canada are high. Spending on education is 57th in the world. Foreign investment is for take-overs (97% takeovers).
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Clarification re. take-overs: Foreign investment = money coming in to Canada.
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http://www.poorvoteturnout.ca/the-welfare-of-taxpayers
the welfare of taxpayers
by Breezy Brian Gregg and Mac Walker August 20, 2014
The Leveller
online publication by poor vote turnout
Why is the welfare of the taxpayers always referenced in news stories about government waste? The taxpayer frame of reference distorts the picture and does not give the true story. If government revenue is wasted due to bad policy or bad practices it hurts all Canadians not just the taxpayers.
Implied in the outrage so often expressed regarding the wasting of the so called “taxpayers’ dollars” is the idea that taxpayers still somehow own the money they pay in taxes after the taxes have been paid to the government. The thinking is twisted. The dollars that are paid in taxes become the government’s dollars. You cannot make a payment and still claim ownership of the money you paid.
Also implied is the idea that taxpayers deserve and have the right to say how their “tax dollars” should be spent and that the more taxes a person pays the more say they should have in government business. Not! In a democracy that is not right. When money can buy you power over government decisions, democracy does not exist.
This term “the taxpayer” is used to justify further lowering of tax rates and to promote austerity measures (cutting services), both of which mean a loss to the welfare of the non taxpayers: the children, the sick and the old, and the disadvantaged.
How the use of the term “the taxpayer” furthers an agenda of tax cuts and austerity is as follows: Very little is perfect. Inevitably and over and over again someone in government screws up and wastes. When this news is reported there seems to be a convention that this report of the event must have accompanying editorial comments about how this is unfair to “the taxpayer”. There are so many news reports of this type that the details of each case of government waste become a blur and all that is left in the public mind is the common editorial comment about unfairness to “the taxpayer”.
Repetition establishes a belief about injustice to this select group – the taxpayers – and establishes the grounding for arguments to restore fairness to the group by lowering tax rates. The problem that this leaves a shortage of funds for public service programs is easily taken care of by the “necessary” cuts to services.
If we want to understand the workings of government and be able to direct it to be fair to all people there is no point in using the term “taxpayer” nor any point in talking about “taxpayers’ dollars”. We have to speak with terms that represent reality not terms that are mythical or ideological.
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