Quotulatiousness

June 4, 2013

Marx for the modern era

Filed under: Economics, History, Politics, USA — Tags: , , , — Nicholas @ 07:33

A case for finding the proper modern interpretation of the works of Karl Marx:

The first view (held mostly by its detractors) is that Marxism is little more than the politics of resentment — a philosophical justification for the hatred of success by those who failed to achieve it. The politics of resentment offers three different methods for bringing its program of economic jealousy to fruition: Under socialism, the unsuccessful use the power of government to forcibly extract wealth and possessions from the successful, bit by bit until there is nothing left; under the more extreme communism, the very notion of wealth or success is eliminated entirely, and anyone who seeks individual achievement is punished or eliminated; and finally under anarchy, freelance predators would be allowed to steal or destroy any existing wealth or possessions with no interference from the state. Marx himself saw pure communism as the ultimate goal, with socialism as a necessary precursor, and perhaps just an occasional dash of anarchy to ignite the revolutionary fires.

But there is another, more intriguing and less noxious, view of Marxist thought that gets less attention these days because its anachronistic roots in the Industrial Revolution seemingly render it somewhat irrelevant to modern economics. Marx posited that factory workers should own the factory themselves and profit from its output, since they’e the ones actually doing the work — and the wealthy fat cat “capitalists” should be booted out of the director’s office since they don’t really do anything except profit from other people’s labor. Marx generalized this notion to “The workers should control the means of production,” and then extended it further to a national scale by declaring that the overall government itself should be “a dictatorship of the proletariat,” with “proletariat” defined in this context as “someone who actually works for a living.” The problem with this theory in the 21st century is that very few people actually work in factories anymore due to exponential improvements in automation and efficiency, and fewer still produce handicrafts, and the vast majority of American “workers” these days don’t actually create anything tangible. Even so, there is an attractive populist rationality to this aspect of Marxism that appeals to everyone’s sense of fairness — even to those who staunchly reject the rest of communist theory. Those who do the work should reap the benefits and control the system; hard to argue with that.

Although the “factory” is no longer the basic building block of the American economy, Marx’s notion that “The workers should control the means of production” can be rescued and made freshly relevant if it is re-interpreted in a contemporary American context.

H/T to Jon, my former virtual landlord, for the link.

May 30, 2013

Latest EU legal move may drive support to UKIP

Filed under: Britain, Europe, Law — Tags: , , , , — Nicholas @ 08:13

Mats Persson explains why Nigel Farage and UKIP may see a spike of support when the latest legal challenge gets going:

The European Commission will today take the UK to the European Court of Justice — the body meant to police the EU treaties — over its rules on EU migrants’ access to benefits. The Commission says the UK’s so-called “right to reside” test — a filter used to make sure that EU migrants are eligible to claim benefits — is illegal under EU law as British citizens pass it automatically. The UK Government is disputing this claim saying it is clear that the UK rules “are in line with EU law.” In other words, the folks in Brussels are about to throw a hand grenade into the already red-hot domestic EU debate.

The legal details around this case are hugely complex as are the rules governing EU migrants’ access to benefits [...] But essentially, this is about the EU’s one-size-fits-all model sitting poorly with the UK’s ‘universalist’ welfare system, which is largely made up of means tested benefits rather than contribution-based benefits — unlike many other systems in Europe. The UK government feels it needs a filter — practically and politically — to make sure migrants come here to work rather than to claim benefits. Legally this is a grey area but it’s clear that the Commission is taking the strictest interpretation.

As I’ve argued before, claims that EU migrants come here in droves to claim benefits are widely exaggerated — and free movement of workers has been largely beneficial for the UK and Europe. However, it’s clear that the combination of immigration, Europe and benefits is one of the potentially most toxic ones in modern day politics, so needs to be treated with kid gloves. Even if all the evidence suggests EU migrants are less likely to claim benefits than British citizens, the perception of “benefit tourism” is still absolutely explosive.

May 26, 2013

Bangladesh needs legal reform and free markets

Filed under: Asia, Bureaucracy, Economics, Law — Tags: , , , , , , — Nicholas @ 10:37

Sheldon Richman discusses the plight of workers — especially poor women workers — in Bangladesh:

According to a report written for the Netherlands ministry of foreign affairs, most Bangladeshis, unsurprisingly, are victimized by a land system that has long benefited the rural and urban elites. “Land-grabbing of both rural and urban land by domestic actors is a problem in Bangladesh,” the report states.

    Wealthy and influential people have encroached on public lands…, often with help of officials in land-administration and management departments. Among other examples, hundreds of housing companies in urban areas have started to demarcate their project area using pillars and signboard before receiving titles. They use local musclemen with guns and occupy local administrations, including the police. Most of the time, land owners feel obliged to sell their productive resources to the companies at a price inferior to market value. Civil servants within the government support these companies and receive some plot of land in exchange.

Women suffer most because of the patriarchy supported by the political system. “Women in Bangladesh rarely have equal property rights and rarely hold title to land,” the report notes. “Social and customary practices effectively exclude women from direct access to land.” As a result,

    Many of the rural poor in Bangladesh are landless, have only small plots of land, are depending on tenancy, or sharecropping. Moreover, tenure insecurity is high due to outdated and unfair laws and policies…. These growing rural inequalities and instability also generate migration to towns, increasing the rates of urban poverty.

Much as in Britain after the Enclosures, urban migration swells the ranks of workers, allowing employers to take advantage of them. Since Bangladesh does not have a free-market economy, starting a business is mired in regulatory red tape — and worse, such as “intellectual property” law — that benefit the elite while stifling the chance for poor individuals to find alternatives to factory work. (The owner of the Savar factory, Mohammed Sohel Rana, got rich in a system where, the Guardian writes, “politics and business are closely connected, corruption is rife, and the gap between rich and poor continues to grow.”) Moreover, until the factory collapse, garment workers could not organize without employer permission.

Crony capitalism deprives Bangladeshis of property rights, freedom of exchange, and therefore work options. The people need neither the corporatist status quo nor Western condescension. They need radical land reform and freed markets.

April 24, 2013

A call to abolish the draft … the NFL draft, that is

Filed under: Business, Football, Law, Media — Tags: , , , — Nicholas @ 00:02

S.M Oliva calls for the abolition of the NFL’s annual offseason TV mega-event in Reason:

The sports draft is an anomaly of the American labor market. In most industries new hires are free to seek employment wherever there’s an opening. Even promising high school athletes may accept a scholarship offer from any college. But the NFL shield has stood resolutely against labor freedom since 1935 when Bert Bell, then the struggling owner of the last-place Philadelphia Eagles, convinced the rest of the nine-team league that poorly performing clubs should be rewarded with first choice of promising college talent. Under this new system, a “drafted” player could only negotiate a contract with a single team.

[. . .]

Regardless of how players come into the league, they are all subject to a salary cap that fixes total compensation as a percentage of football-related revenues. The present collective bargaining agreement further constrains rookie salaries, and roster limits prevent a team from simply stockpiling players. All the draft does is increase the likelihood that the most promising new talent — the players taken at the top of the first round — will go to teams with a demonstrated history of mismanagement.

This should concern the league as it faces a rising tide of concussion-related lawsuits brought by former players. While the NFL tinkers with playing rules in an effort to make the game “safer,” there’s been no effort to question the role of the draft system in promoting unsafe working conditions. Let’s say Player X is a highly touted quarterback prospect drafted by Team A. What if Team A has a poor offensive line and a coach prone to recklessness with his quarterbacks? Player X can’t turn around and negotiate with Team B, which offers a better line and a coach with a stronger record of developing young quarterbacks. Player X is stuck with Team A, and if that means he’s out of football after four years, a record number of sacks and a half-dozen concussions, then so be it.

April 22, 2013

QotD: The long-term dangers of chronic unemployment

Filed under: Economics, History, Quotations, USA — Tags: , , — Nicholas @ 12:20

One of the most pernicious aspects of the chronic unemployment rampant during the Great Depression was that it took many people (mostly men) out of the workforce permanently. Many men simply became unsuited for making a living, and this in turn prevented them from forming families or even becoming a part of normal society. The same pattern is appearing now, and it is a cause for grave concern. Chronic unemployment isn’t just a hit to the economy; it attacks the very fabric of society.

The simplistic approach to this problem is to demand that the government create jobs ex nihilo, but this almost never works in practice. Besides being wasteful of tax dollars and of limited use in actually reducing unemployment, these types of programs also tend to cultivate a sense of cynicism in the workers themselves. FDR’s various make-work schemes were a perfect example of this. (The old joke about the WPA was that it stood for “We Piddle Around”.)

Monty, “DOOM: It’s not the fall that kills you, it’s the sudden stop”, Ace of Spades H.Q., 2013-04-22

April 8, 2013

“‘Cash for sick days’ doesn’t have the same populist appeal”

Filed under: Cancon, Economics, Government — Tags: , , , — Nicholas @ 12:52

In the Globe and Mail, Barrie McKenna explains why there’s a widening fairness gap between public employees and everyone else:

The seven-month-long dispute [between the Ontario government and public school teachers] has exposed something much more disquieting: the widening fairness gap in the Canadian workplace. Thousands of public sector workers enjoy high salaries, guaranteed pensions and special perks that other Canadians will never get, regardless of how long or hard they work.

Public sector workers argue they’ve earned these gains through decades of tough negotiations with employers. And once promised, governments should not unilaterally revoke them. Fair enough. But it’s not an argument that’s likely to sway many Canadians, who exist in a parallel universe.

The ability to bank and monetize sick days is virtually unheard of in the private sector. Less than 3 per cent of the 1,336 private sector plans in Mercer Canada Ltd.’s client database allow employees to bank sick days, according to figures supplied to The Globe and Mail. That compares to 28 per cent of the 407 government plans tracked by the benefits consultant.

No wonder Ontario teachers chanted “respect teachers, respect collective bargaining,” while they suspended school sports, plays and other extracurricular activities for millions of students in recent months. “Cash for sick days” doesn’t have the same populist appeal.

April 6, 2013

The old class system and the modern welfare state

Filed under: Britain, Bureaucracy, Government — Tags: , , , , , — Nicholas @ 09:34

A majority of Britons who are on state assistance now believe that the system is too generous and discourages recipients from seeking jobs:

In 2003, 40 per cent of benefits recipients agreed that ‘unemployment benefits are too high and discourage work’; in 2011, 59 per cent agreed. So a majority of actual benefits recipients now think the welfare state is too generous and fosters worklessness. Surely those well-off welfare cheerleaders, when shown these figures, would accept that perhaps they don’t know what they’re talking about. But no, they have simply come up with a theory for why the poor are anti-welfare: because they’re stupid.

Even more resented than those who abuse the system are those who run it:

Working-class mothers hated the way that signing up for welfare meant having to throw one’s home and life open to inspection by snooty officials, community health workers and even family budget advisers.

They didn’t want ‘middle-class strangers’, as they called welfare providers, ‘questioning them about their children’. They felt such intrusions ‘broke a cultural taboo’.

And the use of welfare as a way of allowing society’s ‘betters’ to govern the lives of the poor continues now. Indeed, today’s welfare state is even more annoyingly nannyish than it was 80 years ago.

As the writer Ferdinand Mount says, the post-war welfare state is like a form of ‘domestic imperialism’, through which the state treats the poor as ‘natives’ who must be fed and kept on the moral straight-and-narrow by their superiors.

Mount describes modern welfarism as ‘benign managerialism’, which ‘pacifies’ the lower orders.

Working-class communities feel this patronising welfarist control very acutely. They recognise that signing up for a lifetime of state charity means sacrificing your pride and your independence; it means being unproductive and also unfree.

April 4, 2013

Canadian public sector workers earn between 9% and 12% more than private sector workers

Filed under: Bureaucracy, Business, Cancon, Government — Tags: , , , — Nicholas @ 09:12

Once upon a time, back in the far-distant past, public sector workers got lower wages but better job security, benefits, and pensions than their private sector counterparts. Over the last few decades, the public sector wages caught up and surpassed the private sector, and if anything the benefits and pensions got better. The Fraser Institute calculates that currently there is between a 9% and a 12% premium paid to public sector workers for similar jobs (and that understates the overall differential):

Comparing Public and Private Sector Compensation in Canada examines wage and non-wage benefits for government employees (federal, provincial, and local) and private-sector workers nationwide. It calculates the wage premium for public-sector workers using Statistics Canada’s Labour Force Survey from April 2011, after adjusting for personal characteristics such as gender, age, marital status, education, tenure, size of establishment, type of job, and industry. When unionization is included in the analysis, the national public-sector “wage premium” (i.e., the degree to which public-sector wages exceed private-sector wages) declines to 9.0 per cent from 12.0 per cent.

Aside from higher wages, the study also found strong indications that Canada’s government workers enjoy more generous non-wage benefits than those in the private sector, including:

  • Pensions: 88.2 per cent of Canadian government workers were covered by a registered pension plan in 2011 compared to 26.4 per cent of private-sector employees.
  • Early retirement: Government employees retired 2.5 years earlier, on average, than private-sector workers between 2007 and 2011.
  • Job security: In 2011, 0.6 per cent of government employees lost their jobs — less than one sixth the job-loss rate in the private sector (3.8 per cent).

To ensure public-sector compensation is fair to both taxpayers and government workers, the report argues that better data collection is needed and suggests that Statistics Canada should gather data on wages and non-wage benefits more regularly and systemically than it does now. In addition, comparisons between the public and private sectors should focus on total compensation, not just wages or specific benefits such as pensions.

About one in five Canadian workers is in the federal, provincial, or local government civil service or related organizations, and only 15% of Canadians are self-employed. The vast majority of government workers are unionized, while the reverse is true in the private sector.

April 2, 2013

Revisiting the revisionist view of the “Satanic mills” of the British industrial revolution

Filed under: Britain, Economics, History — Tags: , , , — Nicholas @ 08:55

Rather in keeping with the sentiments expressed in today’s Quote of the Day post, Emma Griffin explains why the workers generally thought of the industrial revolution as a very good thing indeed:

Writers and academics often show an interesting ambivalence about industrialization. Today, they regard it as a blessing, the single-most-effective way to lift people out of poverty. But in thinking about Britain’s Industrial Revolution, they have tended to reach the opposite conclusion: The rise of the factory, they argue, caused the end of more “natural” working hours, introduced more exploitative employment patterns and dehumanized the experience of labor. It robbed workers of their autonomy and dignity.

Yet if we turn to the writing of laborers themselves, we find that they didn’t share the historians’ gloomy assessment. Starting in the early 19th century, working people in Britain began to write autobiographies and memoirs in ever greater numbers. Men (and occasionally women) who worked in factories and mines, as shoemakers and carpenters, and on the land, penned their stories, and inevitably touched on the large part of their life devoted to labor. In the process, they produced a remarkable account of the Industrial Revolution from the perspective of those who felt its effects firsthand — one that looks very different from the standard historical narrative.

[. . .]

Higher levels of employment also helped change the balance of power between master and laborer. So long as jobs remained scarce, workers, by necessity, obeyed their employers. The price of dissent or disobedience was unemployment. With more jobs, such subservience became less and less necessary. In the booming new industrial towns, workers could, and did, walk out on employers over relatively minor matters, confident that finding more work wouldn’t be difficult. One autobiographer left his position simply because he “grew sick” of the work; another because he didn’t want to “beg pardon” after a falling out with his master; another objected to wasting his precious Sunday mornings at his master’s religious services; and another quit when his master refused to let him take his tea breaks off the premises. All working relationships are defined by a disparity in power between master and servant. But that inequality is rendered more palatable if we’re well remunerated for our services and can leave at will.

The way in which working people described the upheavals of this period provides us with a powerful reminder of the transformative effect of industrialization and of its capacity to improve living standards, even for the poor. Generations of historians have dwelled on the loss of old working patterns and presumed that the introduction of more intensive ones was detrimental to workers’ welfare. But these developments weren’t viewed in such a sinister light at the time. Industrialization promised full employment, and for those used to scraping together a living from the land, this was very good news indeed.

March 30, 2013

All those manufacturing jobs are never coming back

Filed under: Britain, Business, China, Economics, USA — Tags: , — Nicholas @ 08:37

Tim Worstall explains why this is at the Adam Smith Institute blog:

I’m always rather puzzled by those who shout that we’ve got to bring manufacturing back to the UK. Apparently this will solve all our problems over what to do with dim Northern lads or something. Once they’re all hammering out whippet flanges then we just won’t have a problem with unemployment ever again. The problem with this idea is that modern manufacturing simply doesn’t provide many jobs. And if it were to provide mass employment it would be very badly paid employment too:

    Americans working to produce traded goods and services earn, roughly, according to their productivity. If low-skill workers in America aren’t much more productive in manufacture of traded goods and services than low-skill workers in China, then they can’t earn much more than workers in China while being employed in manufacture of traded goods and services. They can earn a rich-world wage in production of non-traded goods and services, like sandwiches and haircuts, so long as there is sufficient local demand. In other words, the only way to get less-skilled Americans a good wage in a manufacturing industry is to significantly raise their skill and productivity level. If that can’t be accomplished, they can only hope to find good wages in non-traded industries. At least, that is, until wages of less-skilled workers across the developing world come much closer to converging with those in America.

Of course, that’s all about America but the same logic pertains here as well. Chinese manufacturing wages are around $6,000 a year at present. Meaning that if we had mass employment in manufacturing, as they do, then wages would need to be around that level. Or, alternatively, UK based manufacturing would have to be much more productive to support higher wages. And “more productive” is the same as saying “uses less labour”. Thus you can have few well paid jobs (in the Rolls Royces etc of this world) or you can have many badly paid jobs (Shenzen). It isn’t actually possible to mix and match between the two.

March 23, 2013

“Having it all” versus “being happy”

Filed under: Business, Media — Tags: , , , — Nicholas @ 09:32

In the Globe and Mail, Margaret Wente talks about the tension many women feel in trying to lead full lives, both professionally and personally:

Sheryl Sandberg, the billionaire COO of Facebook, is everywhere these days. Her new book, Lean In, is a smart, strategic guide for women who want to succeed. Be more assertive, conquer your fear, manage your guilt, don’t sabotage yourself.

All good advice, in my view. But these days, a lot of smart, highly educated thirtysomething women are having an entirely different conversation. They’re not talking about leaning in. They’re talking about leaning back.

[. . .]

Given the realities of the modern workplace, the mystery isn’t why there aren’t more women at the top but why so many want to get there. “To reject a high-flying career … is not to reject aspiration,” Judith Shulevitz writes in The New Republic. “It is to refuse to succumb to a kind of madness.”

Most women, if they have the choice, are happy to trade long hours and money for flexibility and control. This explains why nearly a quarter of women who have MBAs and children have dropped out of the work force 15 years after graduation, according to a U.S. study. When these findings were released, they produced much hand-wringing about the failed promise of feminism and lingering discrimination in the workplace. But what they really reflect is women’s stronger preference for a balanced life.

High-achieving younger women don’t think this is going to happen to them. It takes them by surprise. They get an MBA or law degree, a demanding job and an equal-opportunity husband. And then they have a baby and – wham. As one young mother in her early 30s puts it, “I had no idea I’d be so crazy about my child.”

I suspect a lot of the frustration young women encounter is that they’ve been lead to expect that they can cope with both a full-time, active, fulfilling career and raising a child simultaneously. The reality is that for most women, it’s a binary choice: you get either the job or the family, but not both. When this realization hits home, it can feel like a betrayal.

March 3, 2013

Arms merchant’s golden customer: an Arab nation with oil money

Filed under: Britain, Business, Middle East, Military — Tags: , , , , , — Nicholas @ 12:56

Strategy Page explains why some of the most lucrative customers for high-tech weaponry are Arab nations:

Britain has been quite successful selling their new Typhoon fighter to Middle East nations. Two years ago Saudi Arabia bought 72 Typhoons from Britain. That was followed by an order for 12 from Oman and now the UAE (United Arab Emirates) is negotiating the purchase of 60 of these expensive aircraft. This is big money, as the aircraft have a basic price of $65 million each and there are many ways to greatly increase that. For warplanes sold to Arab Gulf states there is an additional bonanza. The biggest additional cost is providing support services and personnel to keep the aircraft operational. The Typhoon manufacturer, BAE Systems, is energetically recruiting qualified maintenance personnel to keep these aircraft flying. This a much larger profit center for Arab customers than for anyone else. Few local Arabs will be recruited for this work and most of these technicians will come from the West. That is very expensive. Why can’t locals be found for these high paying jobs? The reason is simple; there are few Arabs qualified or even interested in such exacting work. This is a common problem in the Middle East.

For example, the unemployment rate in Saudi Arabia is 12 percent and many of those men are unemployed by choice. Not even counted [are] most women, who are barred from most jobs because they are women. Arab men tend to have a very high opinion of themselves, and most jobs available, even to poorly educated young men, do not satisfy. Thus most Saudis prefer a government job, where the work is easy, the pay is good, the title is flattering, and life is boring. Thus 90 percent of employed Saudis work for the government. In the non-government sector of the economy, 90 percent of the jobs are performed by foreigners. These foreigners comprise 27 percent of the Saudi population, mostly to staff all the non-government jobs and actually make the economy work. This means most young Saudi men have few challenges. One might say that many of them are desperate for some test of their worth, but a job in the competitive civilian economy does not do it, nor does the military.

The Saudi employment situation is not unique. The UAE (United Arab Emirates) has foreigners occupying 99 percent of the non-government jobs. The unemployment rate is 23 percent, but only a tenth of those are actually looking for a job. A survey indicated that most of the unemployed are idle by choice. Kuwait is more entrepreneurial, with only 80 percent of the non-government jobs taken by foreigners. The other Gulf Arab states (which have less oil) have a similar situation.

February 22, 2013

Ford’s wage-doubling myth

Filed under: Business, History, USA — Tags: , , , — Nicholas @ 00:02

In the Financial Post, Philip Cross explains the myth and reality of Ford’s famous wage-doubling ploy:

Start with the premise that Ford raised wages to increase purchasing power. As the Fortune article documents, before raising wages, Ford already had doubled output of the Model T with his innovative use of the moving assembly line, without adding to employment. The moving assembly line is what Ford deserves accolades for. To get an idea of how revolutionary it was, Ford built just over a quarter of a million cars in 1914, as much as the rest of the industry combined, but with 80% fewer workers. In other words, productivity already had doubled, allowing Ford to double wages without increasing labour costs.

And he needed to raise wages. Employee turnover at the Highland Park Model T assembly plant hit 370% in the year before the wage increase, clearly symptomatic of a dysfunctional internal labour market. That means Ford incurred the cost of hiring 52,000 people in 1913 to fill 14,000 jobs. The real reason Ford hiked wages was to reduce the cost of this turnover, not a soft-hearted desire to transfer purchasing power from management Scrooges to the Cratchits of the world.

The plan worked like a charm, as turnover plunged to 16% after wages were doubled, reducing labour costs despite the wage hike. Saying he did it to raise purchasing power was just good public relations. Who wants to advertise that their workplace was so disagreeable they could not keep workers for more than a few weeks at a time?

[. . .]

Ford is still reaping good publicity from the notion its founder spread joy and good cheer in the workplace by raising wages. Its website marvels that “newspapers from all the world reported the story as an extraordinary gesture of goodwill.” The universal appeal of this fable, repeated today by gullible journalists like those at Fortune, is probably because it feeds everyone’s fantasy that one day you’ll show up at work and get that long overdue raise, without your firm compromising its competitive position.

February 20, 2013

Incentives matter (a lot) — the growth of “Disabled America”

Filed under: Economics, Government, USA — Tags: , , , , — Nicholas @ 09:40

Colby Cosh discusses the rise and rise of “Disabled America”, the increasing number of adults of working age who are claiming disability support:

Just looking at fiscal and demographic stats from California will cause a cold, invisible hand to clutch at one’s throat, but talking to an endless series of seemingly able-bodied people who casually disclaim any capacity for honest work is even more chilling. When I got home I found out it’s not just California’s problem. In the OECD’s 2010 “Going for Growth” report, the percentage of the working-age labour force (20 to 65 years) receiving any kind of disability benefit or worker’s compensation is estimated at around 5.1 per cent for Canada. For OECD nations as a whole, the figure is 6.7 per cent.

Northern European welfare states, amiright? But for the super-competitive U.S.A., land of the proudly threadbare social safety net, the number was 9.2 per cent.

[. . .]

There is a handful of economists working on the problem without ever gaining much traction in the popular press; the atmosphere of general crisis hasn’t made it any easier for them to be heard. Reading their papers and seeing them plead for the same reforms every few years is almost as depressing as contemplating Disabled America itself. Just as social security for the aged was devised at a time when workers could expect only a few years of life after clearing 65, social security for the disabled was conceived at a time when manual labour was the norm and “disability” denoted identifiable, incapacitating physical injury. No one envisioned a world in which clerical and “knowledge” work had taken over, but the number of people judged totally unable to work had skyrocketed, owing to vague musculoskeletal disorders, unverifiable chronic pain and an astronomical expansion in the definitions of mental illnesses.

If the system is set up to provide more income through disability payments than through a paying job, there will be a tendency for minor ailments to be parlayed into a disability. When the incentives are rigged to encourage a certain kind of behaviour, people will adapt to take advantage of those incentives. If the system will effectively reward you for being “disabled”, it should be no surprise that we get more people applying for disability support.

Even if the economic climate was better, it’s not likely that governments will crack down on those abusing the system for a couple of solid reasons. First, it’s a public relations nightmare waiting to happen and every government worker knows that you never want your name to appear in the media in this kind of context. Second, people on the disability programs don’t count as unemployed and therefore reduce the pressure on the government to “do more” about jobs. And third, it’s easier to just go with the flow and not try to create any ruckus.

February 18, 2013

Reason.tv: 3 reasons to build the Keystone XL pipeline

Filed under: Business, Cancon, Environment, Government, USA — Tags: , , , , — Nicholas @ 12:30

Few energy projects have inspired the level of vitriol surrounding the Keystone XL Pipeline, that would run 1,700 miles from Alberta, Canada through the United States to refineries on the Gulf of Mexico.

The oil sands of Alberta are estimated to hold 170 million 170 billon barrels of petroleum, the largest reservoir of black gold outside of Saudi Arabia.

Because the pipeline crosses an international boundary, President Barack Obama has the final say over whether to give the project a green light.

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