Quotulatiousness

April 1, 2020

Getting the federal government out of the media business

Filed under: Business, Cancon, Government, Media — Tags: , , , , , , — Nicholas @ 03:00

Far from subsidizing the faltering mainstream media, the Canadian government should follow Ted Campbell’s advice here:

Direct subsidies will make many Canadians suspicious that the media has been bought and paid for and is little better than a government PR agency. Government advertising will bring charges of taxpayers’ money being used to publish propaganda. I wonder if tax breaks might help … maybe, as long as they are available, equally, to The Star and Rebel Media, and the North Renfrew Times, too I suppose. But where does it stop? Is my blog a news source? No, quite clearly not, it is almost 100% opinion, but what about blogs like Vivian Krause’s Fair Questions? It looks a lot more like reporting than what I do. In fact, some of her reporting looks a lot better than what the CBC does, doesn’t it? So where would the bureaucrats who draft the laws and regulations and then implement them draw the lines? Let’s assume that the traditional, mainstream media ~ the Globe and Mail and Global TV and so on ~ get tax breaks, and let’s assume that I don’t qualify. Who else does? Who makes that decision? Is it a politician, someone like the current Heritage Minister Steven Guilbeault? Is it another the so-called “arm’s-length” boards that act as surrogates for the ministers? Or is it a team of bureaucrats? Who do we trust? None of the above?

The better answer, it seems to me, is to do pretty much exactly the opposite of what Daniel Bernhard recommends:

  • First: defund most of the CBC. Make it a national (and international) radio network (actually, two networks: one English and one French). Sell off ALL of the CBC’s TV broadcast licences and ALL of its TV production facilities and many of its major radio production facilities, too. Keep a fair number of local studios, especially in rural and remote regions, and a handful (five or six?) larger regional news centres and two (one English, one French) national and international newsrooms that will provide both voice and text reports ~ over the air and on the internet, free for all Canadians and totally free of copyright so that any news agency can use them;
  • Second, provide no, zero, nada, zilch funding to any news organization. Watch and see how they shake out in this rapidly changing environment. Remove or reduce most foreign ownership restrictions. Encourage “bundling” ~ allow e.g. telecom companies like Bell and Rogers to own and to integrate newspapers and TV stations and radio stations and internet platforms and entertainment sources, too; and
  • Third, get the CRTC out of the business of the internet and cable. There is a legitimate role for an independent regulator to manage scarcity. Over-the-air radio and TV channels are always in limited (and often in short) supply and they need to be allocated (licensed) to individual broadcasters; that’s a useful job for the CRTC. There is no scarcity of capacity on the landlines, cables and even satellite links in Canada. The market does a first-rate job of regulating them; the CRTC does, at best, a third-rate job.

I am certain that there are useful, profitable business models for media out there. The fact that we don’t seem to have one in Canada is, in my opinion, because of the existence of the CBC, which distorts the market too much, and the constant efforts of governments (national, provincial and even local) to try to “support” commercial favourites. The right move is to stand back and remove the heavy hand of bureaucracy and let the media find its own, profitable business model. There is a very limited role for government but Canada does not need a Ministry of Truth.

March 30, 2020

“Hoarders” and “gougers” … when the market delivers unwelcome news

Filed under: Business, Economics — Tags: , , , , , — Nicholas @ 03:00

Tom Mullen on the efficient functioning of prices in a free market economy:

Market prices are the foundation of civilization. They are the signal that tells producers how much of any one thing to produce. They tell consumers how much to consume or whether to consume a product at all. The reason retailers don’t normally throw away 80 percent of their stock is because market prices tell them how much to have on hand at any one time to meet current demand.

When they miscalculate and buy a little too much, they still don’t typically waste their stock. They put it on sale and meet the demand at a lower price.

To the extent the market is allowed to set prices, producers generally produce what consumers want to buy in the quantities they want to buy. When all supply is consumed and large amounts of consumers are not left with unmet demand, it is referred to as the market “clearing.”

The government is always and everywhere at war with market prices. Regulations creating barriers to entry limit supply, artificially inflating prices. Price controls, including “anti-price gouging” laws override market prices, creating shortages. Subsidies to producers (farm subsidies, for example), allow producers to limit supply, artificially inflating the price.

But when the market works properly, it often delivers news to consumers and to governments that is unpopular, and governments frequently attempt to “hold back the sea” by introducing market distortions:

All these price adjustments by the market are essential for our well-being. They are the cure for the economic disease caused by the government response to the virus and the previous 12 years of monetary inflation and artificially low interest rates.

What is the government doing in response? It is escalating its usual, conventional war on market prices to a nuclear war. It is punishing suppliers of essential goods for raising prices. It is ramping up monetary inflation to historic levels to keep stock prices artificially high and unprofitable businesses alive to go on producing products for which there is no demand. At a time when market prices are more essential to our survival than ever, the government is doing more to override them than ever.

This is not an academic theory that only works on a graph in a classroom. This plays out before our very eyes in the form of essential goods not available to us at any price.

Why is there no toilet paper available? Ask most people and they will say it is because of “hoarders.” These are people who bought far more than they needed in anticipation of future shortages. The people who arrived at the store after the toilet paper is sold out vilify them. Others might just call them prudent.

The same people who vilify hoarders also vilify “price gougers.” They don’t seem to grasp the obvious cause/effect relationship here. If it weren’t for artificial limits on price, i.e., “anti-price gouging” laws, the price of toilet paper would rise dramatically with the surge in demand and the so-called hoarders would not be able to buy nearly as much. That would leave far more for everyone else. The toilet paper market would find the optimal price level where the greatest number of people could get what they need.

The Ontario government, of course, is doing everything they can to obstruct the market from operating freely.

March 29, 2020

Can we keep a few of these innovations after the Wuhan Coronavirus outbreak is over?

Filed under: Business, Cancon, Food, Government, Law, Wine — Tags: , , , , , — Nicholas @ 03:00

Chris Selley finds a few of the changes to business practice in Ontario to be definite improvements that we should retain once the panic subsides:

“The Beer Store” by Like_the_Grand_Canyon is licensed under CC BY-NC 2.0

Prepping my urban coronavirus hermitage involved packing my freezer with comforting made-ahead delights: pulled pork, chili, various pasta sauces including a life-altering Bolognese ragout recipe from Marie in Quebec City, who runs foodnouveau.com. Mostly, however, I’ve found myself wanting to eat … a bit more downscale. Supplies of Pogos and Bagel Bites are shamefully depleted, well ahead of schedule. And I do love that chicken from Popeye’s.

My superb local fried chicken joint has come up with a very simple and reassuring way to fill walk-up orders. It’s explained on the locked door: You phone in your order from outside, then retreat eight feet; an employee comes to the door with the credit/debit machine, makes eye contact, demonstratively puts on a fresh pair of gloves, opens the door and places the machine on a stool outside, along with the box of gloves. The customer dons a pair of the gloves, completes the transaction, discards the gloves in the waste basket provided, and retreats eight feet again. The employee, wearing fresh gloves, returns with the order and places it, with a smile, on the stool.

This is neither particularly ingenious nor unique. The food-delivery industry has taken to calling it “contactless delivery,” which is an amusingly jargon-y term for “pay in advance and we’ll leave it wherever you tell us and run.” I found myself weirdly impressed, though. Popeye’s system might not scale to Ronald’s place across the street, and I’m certainly not questioning McDo’s decision to shut down everything in Canada except delivery and drive-through. But especially living in a city where most everyone seems to be treating COVID-19 with suitable respect, it’s nice to appreciate the ingenuity that will keep those of us lucky enough to be sentenced to house arrest as comfortable as possible.

And it has been striking to see governments getting out of the way. Ontario, where change is generally about as welcome as a dry cough and fever, is all of a sudden a jurisdiction where licensed foodservice establishments can sell alcoholic beverages with takeout or delivery meals. It’s a place where supermarkets licensed to sell booze can do so as of 7 a.m. British Columbia made the same call on booze delivery and takeout. Alberta has allowed restaurants to sell their booze, period.

It’s hard not to notice that these loosened restrictions come as government-run bottle shops in Ontario and Quebec shorten hours. In Ontario, the Beer Store, a foreign-owned quasi-monopoly, has reduced hours and refuses to refund empty bottles. (There is no other place to refund empty bottles in Ontario.) They say you find out in a crisis who your friends are.

blogTO shows how some Toronto restaurants are getting creative with wine and food delivery options.

March 25, 2020

QotD: The broken feedback mechanism that brought down the chain bookstores

Filed under: Books, Business, Quotations — Tags: , , , , — Nicholas @ 01:00

… the push-model of book sales. Long before there was an Amazon, chain bookstores had cozy deals with publishers that sent most indie bookstores (now beloved in effigy by the left) out of business.

And then the left dominated publishing establishment had a brilliant idea. For decades they’d been trying to forecast failure and success, and failings. Books they pushed out the wazzoo (A river in Sundon’tshine) died on the vine when bookstores refused to stock them because the owners had read them. The books they had designated as to be ignored caught someone’s fancy, and suddenly were all over.

This was inefficient. It caused way too much printing that never got distributed, and much last minute rushed reprinting. (Even leaving aside how often people chose to read the WRONG things, something that started to matter more and more in the last two decades.)

So they came up with the push model. It was, from a certain perspective, brilliant.

That perspective is the one where the real world doesn’t really exist, so you don’t need to hear from it.

Because the managers of the big corporate bookstores ALSO didn’t read, they took instruction beautifully. So the publishers could say “you’ll take 100 of x and 2 of y” and they DID.

For a little while it worked beautifully, in the sense that there were no surprise bestsellers, (and publishing houses hated those. I know someone who unexpectedly sold out her print run in a week. The publishing house took the book out of print. No, seriously.) and the books that got seen and talked about were picked by the publisher. (BTW this wasn’t even always or primarily political. Sure, that existed too sometimes, but mostly it was the crazy fads that publishing convinced itself of. For instance, sometime in the mid two thousands they convinced themselves no one wanted historical mysteries — they weren’t selling, true, probably because they were on NO shelves — but everyone wanted “chick-lit mysteries” that had covers with lots of shoes and dresses and whose plots were “Sex in the City with murder.” I remember trying to find something to read, giving up and going to the used bookstore (then a hundred miles away in Denver) for my mystery fix.)

Of course, they sold less. In fact, as time went on and people got out of the habit of going to the bookstore, because there was never anything they could find to read. I mean, I remember being chased from Science Fiction to Mystery to finally History, to at last the sort of “utility” book you find in the discount bins you know “a chart of history” type of thing just to find something to buy on our bookstore night.

Then we gave up.

Eventually the broken feedback mechanism gave us the demise of Borders — and B & N is not feeling so good itself — and a yawning, desperate chasm in customers’ need for books that meant the way was wide open for Indie and Amazon. Even the early badly proofed indie books were like a breath of fresh air because for the first time I could read outside the trends being pushed.

Sarah Hoyt, “Breaking the Gears”, According to Hoyt, 2018-01-03.

March 22, 2020

“Basically, CBC ended itself. It almost beggars belief”

Filed under: Business, Cancon, Media — Tags: , , , , — Nicholas @ 03:00

Chris Selley notes the abject failure of Canada’s “national broadcaster” to rise to the occasion during the Wuhan Coronavirus epidemic:

I scuttled into National Post headquarters Wednesday night to liberate some things from my desk before Postmedia’s meatspace newsrooms officially locked their doors “until further notice.” (I and my housebound colleagues remain at your service in the meantime.) Among my correspondence was a copy of David Taras’ and Christopher Waddell’s new book, The End of the CBC? It argues that Canada’s public broadcaster must rapidly and quite savagely reinvent itself or risk “oblivion.” And it is nothing if not timely reading.

On Wednesday, in a moment history may well note as Mother Corp’s rock bottom, CBC announced it was scuppering all its local television newscasts. Instead it would feed us all Canadians a mixture of national and local news from the same Toronto-based spigot.

Basically, CBC ended itself. It almost beggars belief.

Brodie Fenlon, editor-in-chief of CBC News, took to his blog to explain the decision — but didn’t, really. He talked of “staffing challenges” stemming from employees self-isolating and working from home. “Television is especially resource-intensive, and many jobs are difficult to do at home,” Fenlon wrote. “Our systems are overtaxed.”

[…]

This coronavirus has turned a harsh, bright light on several defects in Canadian society that we’ve been happy enough to ignore. We should be keeping a list of those things, and vowing to address them comprehensively once we’ve beaten COVID-19 back. A full-on top-to-bottom mandate review for the Canadian Broadcasting Corporation, especially its English TV operations, ought to be on that list — and the status quo must not be an option.

March 16, 2020

QotD: Company incentives to prevent sexual harassment

Filed under: Bureaucracy, Business, Politics, Quotations, USA — Tags: , , , , , — Nicholas @ 01:00

One of the predictions I’m seeing everywhere, for instance, is how now Human Resources will need a lot more power over companies to prevent more #metoo incidents of sexual importuning of women.

The funny thing about this is that anyone with two eyes and a modicum of understanding of the world knows that this is not where the crazy is headed. As the attempt to drown out the legitimate cases of harassment — mostly by leftists, in leftist-dominated institutions — by claiming #metoo and that all men were essentially harassers becomes more frantic, it has become obvious that any man can be accused of harassment at any time by anyone.

So, here is a genuine prediction: I predict that instead of giving HR more power, this will give companies pause before hiring women, which will lead to a lot of decent and qualified women being left unemployed.

The second-order effect of that, for companies that can’t avoid hiring women, is two-fold: they’ll either hire women to “make-believe” positions, in which they interact only or primarily with other women, creating a drain on the bottom line, or they will allow a lot more work-at-home by both men and women. I predict we’ll see a great move towards that in the next year. Sure, it’s still possible to claim someone is harassing you via the phone, but one-party consent states at least will allow men to record everything in order to defend themselves.

Weirdly, I believe the long-term result of this will be the dismantling of the daycare and child-warehousing practice which has led to a lot of the left’s ascendency in education.

This is because no matter how much you wish to wishful think that companies will just give Human Resources more power, people who actually live and work in the world know this isn’t likely. Human Resources would mostly just make it impossible for anyone to get any work done.

Sarah Hoyt, “Nobody Expects These Predictions”, PJ Media, 2017-12-31.

March 11, 2020

Canadian National’s perfect storm

Filed under: Business, Cancon, Government, Politics, Railways — Tags: , , , , — Nicholas @ 03:00

In Trains, Bill Stephens highlights the terrible time Canada’s largest railway has been having since the beginning of the year:

“DSC02285” by Bengt 1955 is licensed under CC BY-NC 2.0

It would be hard to imagine a worse start to the year for Canadian National, whose volume is down 16% due to a string of events that’s mostly odd, unrelated, and unrelenting. CN is taking it on the chin, as no other North American railroad has seen its volume fall by more than 10% this year and rival Canadian Pacific’s traffic is up 10%.

First, there was Mother Nature. Winter arrived in January with eight days of deep cold in Western Canada, forcing CN to restrict train length. Then powerful rainstorms lashed southern British Columbia starting Jan. 30, washing out CN’s main to Vancouver for six days.

The major washouts occurred in the rugged Fraser River canyon directional running zone where CN and CP share trackage, with CN hosting westbounds and CP carrying eastbounds. The railways had to resort to running directional fleets of 15 to 20 trains at a time over CP’s line. The single-track bottleneck caused eastbound traffic to stack up at the Port of Vancouver and westbounds to be staged as far away as the Prairies. The directional running zone ranks among the top three freight mains by tonnage in North America, alongside BNSF Railway’s Southern Transcon in the Southwest and Union Pacific’s triple track across Nebraska. So this blockage was, by itself, a big deal.

Then came nearly a month of civil protests. On Feb. 6, as CN began digging out from the washout backlog, the first of several First Nations blockades set up camp on CN’s tracks. The blockades, protesting a proposed natural gas pipeline in British Columbia, halted traffic on CN’s Montreal-Toronto mainline in the East. Also ultimately affected: CN’s line to Prince Rupert, British Columbia, which was blocked by protests for six days. Other protests came and went in Edmonton, Alberta; Winnipeg, Manitoba; Quebec; and British Columbia. CP was affected, too, but to a much lesser extent. CP even hosted detour traffic for CN between Montreal and Toronto.

As if that wasn’t enough, then came regulatory woes. The same day the protests began, a CP crude oil train derailed and caught fire in Guernsey, Sask., the second such wreck in the area since December. Hours later Transport Canada issued a ministerial order that restricted key trains – those with 20 or more cars of hazardous materials – to 20 mph in metropolitan areas and 25 mph elsewhere. With the stroke of a pen, Transport Minister Marc Garneau’s knee-jerk reaction effectively reduced CN’s overall capacity by a third. You could call this slowdown “Whoa Canada!”

QotD: Orthorexia

Filed under: Business, Food, Health, Media, Quotations, Science, USA — Tags: , , , , — Nicholas @ 01:00

The American media and our popular culture both celebrate a fear of safe, nutritious food if it is not labeled “organic.” To be consistent then, why don’t we also celebrate anti-vaxxers’ fear of safe vaccines, which are also not “organic?” To be clear, I am not an anti-vaxxer. I am strongly pro-vaccine. Everyone in my house is vaccinated, and I am appalled at the outbreaks of contagious diseases due to anti-vaxxers. But let’s be clear, a Venn diagram of those who obsess about organic food and anti-vaxxers will reveal a major overlap. If you know an anti-vaxxer, he is most likely committed to an organic diet.

Our culture accepts as a scientific fact that organic food is healthier than non-organic food. You can watch TV, read popular magazines, or listen to healthy-living gurus, and overwhelmingly you will be told that organic food is healthier than non-organic food. Recipes tend to call for organic produce and ingredients. And it goes beyond organic foods. Genetically-modified foods are slandered as “frankenfoods” concocted by mad scientists in a laboratory. Further, we are admonished to avoid anything that is not “natural.”

OK then. Vaccines are genetically modified, lab-made, and certainly not natural. Being anti-vax seems a logical extension of the natural, organic lifestyle.

I know several people — including family members — who have so completely bought into the natural-organic hype that they genuinely believe GMO and non-organic foods are poisonous. They would rather starve themselves and their children to death than ingest a gram of non-organic food. They look at the shelves of a regular grocery store and see rows and rows of poison. There is a medical term for this fear of safe healthy food — it’s called “orthorexia.” I am not shocked that some of these individuals are anti-vaxxers. Instead, I am shocked (and relieved) that some of the orthorexics I know actually do vaccinate themselves and their children.

Buck Throckmorton, “Organic Food & Anti-Vaxxers – Does The Fear of Safe Food Lead to Fear of Safe Vaccines”, Ace of Spades H.Q., 2019-12-08.

March 9, 2020

One of the economic effects of the Coronavirus outbreak might actually be bottom-line positive

Filed under: Britain, Business, Europe, Health, USA — Tags: , , , — Nicholas @ 03:00

Tim Worstall explains:

“Trade Show Portfolio – Guy Lewis Photography” by Guy Lewis is licensed under CC BY-NC 4.0

One notable thing about tech events is that they tend to be in interesting places like Amsterdam and Barcelona, and you don’t get many self-employed attending. Because someone self-employed loses days of paid hours, has to pay for the flights and the tickets. And they can get the same stuff from YouTube or various learning sites like Lynda.com. Tech events are mostly a jolly for employees in bloated companies. You get 3 days out of the office, have some fun and the boss picks up the tab. Losing this will probably improve the bottom line. And “business conferences” are mostly the same.

For people working more from home, that’s a good thing. Reduced travel costs (time and petrol), less tiredness. This is gradually happening anyway, but Coronavirus has given it a boost.

And maybe everyone realises that a system of education inherited from the time before Gutenberg, when books were a scarce resource, is perhaps in need of reform. OK, you probably need to be at a university for cutting up cadavers in medicine, but for history or computer science you can probably do most of it from your parent’s spare room.

One thing about the way people work is that they often fall into habits. Change often comes from startups and small businesses because they don’t have habits. Sometimes, they’re even anti-habit. Someone in a large company sees something as wasteful and scraps it in the new company. Microsoft let their people wear what they wanted for work, rather than suits. And gradually, those new businesses replace the old. But there’s also sometimes crises that break habits. Someone is forced to do something and gets their eyes opened. They perhaps realise that the alternative works fine, or maybe better.

March 8, 2020

QotD: The essential difference between intentions and results

Filed under: Books, Business, Politics, Quotations — Tags: , , — Nicholas @ 01:00

… the entire left seems determined to go around pretending that the intention is the action. That is, they believe whatever they intended to do is what will come about, and there will be no glitch, no second-order effects, nor will people adjust their behavior in ways unanticipated by the left.

The results can be uproariously funny, like the “push model” in publishing leading eventually to the success of indie ebooks. (The short explanation is this: the push model is where, in dealing with chain bookstores, the publishers, who are overwhelmingly leftist, realized they could push them to stock whatever books they wanted to succeed, and then the customers would have to buy them because they were the only thing available. The end result was a nosedive in book sales, the death of Borders, and eventually the success of indie-published ebooks.) However, even there, on the way there, there was the tragedy of people not being able to find good things to read for a long time. (I remember us calling bookstore trips “going to be disappointed by Barnes and Noble.”)

Other times, their carefully laid plans are foiled by new technology — see, for instance, their slow-crawl through news reporting and other institutions being nullified by the internet and blogs, and a bunch of us bums working in their pajamas. […]

But often the tragic/comic effects of their action lead directly to their undoing, in a beautiful, almost Shakespearean effect.

Sarah Hoyt, “Nobody Expects These Predictions”, PJ Media, 2017-12-31.

March 3, 2020

QotD: Public service and competitive private enterprise

Filed under: Britain, Bureaucracy, Business, Government, Quotations — Tags: , , , , — Nicholas @ 01:00

Anyone who deals with the general UK public (coercive) sector regularly, knows it is a cesspit of laziness, incompetence, arrogance and corruption, riddled with civil servants that are neither civil nor servants.

And I’m not suggesting that the levels of corruption and incompetence are comparable to those found in third world hellholes. A local official in your county council is very unlikely to demand a bribe and then have your daughter raped by his buddies if you decline. He’s especially unlikely to get away with it, and then douse your family in petrol and burn them alive if you complain – those are the levels of corruption found elsewhere in the world, so we need to retain some perspective here.

But those countries have not benefited from a thousand years of sacrifice to earn us a culture that has learned through bitter experience how to run a country. Our civil servants should be performing at the highest standard and be the best in the world, because what they inherited was a culture that conquered that world, and brought civilisation and progress (often at great cost) to every corner of it.

That they have fallen from these heights and now occupy such low places should be a matter for great national shame. And yet they continue to lord it over those they pretend to serve – try calling your local planning department if you want instruction in how supercilious a local functionary feels able to be when speaking to those he claims to serve. If you just want them to do their job, you better be prepared to beg.

Whereas on the flip side, we might agree that the private (voluntary) sector is largely filled with honest and hardworking people and entrepreneurs, but there are crony capitalists out there too.

Your local butcher and baker (those that have survived the regulatory avalanches under which the crony capitalists have begged their pet politicians to bury them) remain staunch servants of their customers (through regard to their own interests), whereas oligoplists (supermarkets, telcos, insurance companies, banks, energy suppliers or transport companies) deliver to us just what the monopolists of government do – an icy contempt that would soon turn to withering small arms fire if the laws allowed it.

Alex Noble, “Corruption In The Coercive And Voluntary Sectors: Rotten Apples? Or The Tips of Icebergs?”, Continental Telegraph, 2019-12-02.

February 26, 2020

“… the First World’s most dysfunctional train: The Canadian, which in theory links Vancouver to Toronto”

Filed under: Business, Cancon, Railways — Tags: , , , , — Nicholas @ 03:00

Chris Selley fires all his guns at the pride of VIA Rail Canada’s passenger services, The Canadian:

VIA dome observation car, on The Canadian in 2007.
Photo by Savannah Grandfather via Wikimedia.

With the Ontario Provincial Police somehow finally roused to action in Tyendinaga, Ont., it seems the CN railway blockade may not last its third week. This outstanding achievement in law enforcement will come as a relief in particular to the nation’s business community, people who enjoy staple foods, and the propane-dependent. The minority of travellers along the Windsor-to-Quebec City corridor who ride VIA Rail were not as imperilled: most essential, tight-budgeted VIA trips can also be made by bus, with only moderate time lost and with money saved as a consolation. But they too will be pleased. As maddening as VIA’s corridor services can be, with their ancient rolling stock, outrageously stale food, mostly theoretical wi-fi, schedules that get slower rather than faster and reliable delays regardless, trains are just genetically superior to buses.

Or at least, most are. The Windsor-to-Quebec City services are practically Japanese in comparison to what must be the First World’s most dysfunctional train: The Canadian, which in theory links Vancouver to Toronto. It has been shut down almost since the blockade began, and hardly anyone has noticed. It’s time we talk about this crazy thing.

What, you may ask, is the most ridiculous thing about The Canadian? Some might point to the astonishing level of subsidy: In 2018, the average corridor passenger enjoyed a subsidy of $32, or 17 cents per mile. The average passenger on The Canadian: $596, or 48 cents a mile, for a total of $49 million.

But never mind the price for a second; look what it’s buying. Fifty years ago, CN’s Super Continental was scheduled to take 67 hours. Today The Canadian, plying the same route and giving way to every freight train, is budgeted a mind-boggling 85 hours eastbound and 97 westbound.

[…]

For all the subsidies, The Canadian is eye-wateringly expensive. For the full one-way trip, a cabin for two will set you back $3,824, meals included. You can take a five-day mid-range Caribbean cruise for that, and that’s no coincidence: The Canadian is essentially a cruise ship on rails. It’s just that, well, Canadian taxpayers don’t subsidize cruise lines. Because that would be nuts.

I’ve always wanted to ride The Canadian, but I never could afford both the time and the money at the same time. (I have the time now, but I’m struggling to pay my bills, so even a GO Train trip into Toronto needs to be carefully budgeted … a trip on The Canadian would be a very significant percentage of my gross annual income!).

Canadian Pacific FP7 locomotive 1410 at the head of The Canadian stopped at Dorval, Quebec on 6 September, 1965. The Canadian was Canadian Pacific’s premier passenger train before VIA Rail was formed.
Photo by Roger Puta via Wikimedia Commons.

February 21, 2020

British wages to be further impacted by Brexit

Filed under: Britain, Business, Economics, Europe — Tags: , , , — Nicholas @ 05:00

As we were told for years, if Brexit happened there were going to be dire consequences to the British economy, and here’s the latest one:

Employers are complaining that without badly paid immigrant labour they’ll just not be able to get the staff. The answer to which is that they’d better start paying higher wages then, eh?

[…]

The analysis here stems from something Marx got right. It’s competition among capitalists for scarce labour which pushes wages up. If there’s a vast reserve army of the unemployed then anyone needing more straining backs just tosses a crust to those in that army and gets as many limbs and torsos to exploit as desired. But if all are already employed then any desire for extra labour requires tempting it away from current employer and occupation to the new. That means a better job offer. Some mixture of conditions, enjoyment of the job, cash and so on that makes up a more attractive package.

The combination of cheap flights and free movement of labour has meant that the reserve army lives in Wroclaw and Debrecen. It’s also been near unlimited – compared to the size of the UK economy – these past couple of decades.

The absence of free movement – what is being complained about here – will mean that to gain the desired labour those employers are going to have to offer higher wages, higher compensation rather, to those not ordinarily resident or stemming from central Europe.

[…]

But back to the basic complaint here. These employers are complaining that Brexit will mean they’ve got to raise the wages they pay. To which the correct response is “Ah, Diddums”.

February 20, 2020

QotD: Preventing bureaucratic mission creep

Filed under: Bureaucracy, Business, Government, Humour, Quotations — Tags: , , — Nicholas @ 01:00

The mission creep that is the effect of those not slumbering in meetings and thus adding another bright idea to the tasks the organization attempts is not restricted to the public sector.

Private companies are just as vulnerable. However in that private sector we have a mechanism by which the seemingly inevitable bureaucratization is dealt with. Once it happens, the organization goes bankrupt and is removed from the scene. What we need is a similar system to deal with this process in the public sphere.

I don’t, given the above, find it at all remarkable that the WTO is regarded as succumbing to these forces, nor the UN, Amnesty, the European Union or even our own domestic governments (just how did the interstate commerce clause become a justification for Congress to restrict something that is not interstate and is not commerce?). I think it inevitable.

Various solutions appear to be available, the French one might be an example. Put up with it for 50 years then have a revolution and start again. Perhaps the answer is never to allow the public bodies to have much power in the first place, a solution that hasn’t really been tried anywhere. The Italian one? Let the system carry on adding ever more layers but ignore it? Stalin’s? Every 15 years or so shoot the bureaucrats?

All such methods have their attractions and their faults but a solution we do need to find. For one of the lessons I take from the history of the 20th century is that we don’t actually want to be ruled by those who stay awake in committee meetings.

Tim Worstall, “‘Any Organization Will, In the End, Be Run By Those Who Stay Awake in Committee'”, Ideas in Action, 2005-06-23.

February 14, 2020

The reaction to the Mohawk blockade near Belleville shows that VIA Rail isn’t a serious company

Filed under: Business, Cancon, Government, Politics, Railways — Tags: , , , , , — Nicholas @ 03:00

Mohawk protesters began blocking the main CN and VIA line between Toronto and Montreal near Belleville nearly a week ago. The police, having learned so often that the government and the courts won’t back them up, did little to try to get the blockade lifted other than to prevent active confrontations with the First Nations activists. Canadian National announced that they were being forced to park trains all over Eastern Canada as a result of the blockade and that deliveries of goods would be snarled for quite some time even after service is allowed to resume. VIA rail, on the other hand, seems to care not a bit about the thousands of travellers who have been stranded mid-journey and made no apparent efforts to bring in buses or any other arrangements. Chris Selley says this proves that VIA is not an essential service even in their own minds:

“The 6424” by Stephen Downes is licensed under CC BY-NC-SA 2.0

Of all the bad news to befall VIA Rail this week, with the cancellation of all its trains between Toronto and Ottawa and Toronto and Montreal — that’s roughly 50 per cent of its ridership and 60 per cent of its revenues — the worst news might be just how little news it has made. Mostly, the Mohawk blockade of the CN main line near Belleville, Ont., has been treated as a side story to the anti-pipeline protests and arrests in the British Columbia interior.

That’s what it is in the grand scheme of things: The battle between Wet’suwet’en members and chiefs and the federal government speaks to much larger, existential questions about the future of the Canadian economy, about the Liberal government’s reconciliation agenda, about the very nature of the Canadian federation and the rule of law. This blockade, launched in the name of solidarity with the Wet’suwet’en, just means people have to take the bus, or fly, instead of the train.

But that’s no small inconvenience, no small expense. Canadians in general are not quick to anger, but very few of the VIA refugees interviewed by various news outlets sounded even slightly furious, which they had every right to be. When protesters from the same First Nation blockaded the same set of tracks six years ago, VIA properly exhibited some concern with getting their customers to their destinations and put on replacement buses.

This time around, no buses. No suggestions. No response to media inquiries asking why there are no buses. Just a cancellation notice on the website and a fare-thee-well. At a time when VIA is seeking untold billions from the federal government to build a new Toronto-Ottawa-Montreal route and run vastly more trains, this does not bespeak a company that takes itself very seriously.

[…]

And never mind VIA, what sort of country lets a few people close down a key piece of national infrastructure, in violation of a court injunction — not for an hour or a day, but literally indefinitely? For a time it wasn’t even clear whose job it was to enforce the injunction: On Sunday an Ontario Provincial Police spokesperson told Global News it was up to the CN Police Service. On Tuesday, a CN spokesperson told the National Post it was up to the OPP, and indeed, late Tuesday OPP officers warned protesters to leave or they would be forced out. Perhaps the threat of massive economic disruption finally lit a fire under them: earlier in the day, CN had said it was considering shutting down huge parts of its freight network across the country. Had it just been rail passengers, though, the idea of this side-protest dragging on for weeks or even months seems absurdly plausible.

VIA Rail 918, a General Electric model P42DC locomotive, at Belleville, Ontario on 23 December 2008.
Photo by Martin Cathrae via Wikimedia Commons.

While VIA may not be serious, others are extremely serious:

Left-wing blogs have been offering instructions and maps during the #ShutDownCanada protests on how to blockade and destroy train tracks and other pieces of Canada’s infrastructure, according to True North.

Two websites in particular, these being North Shore and Warrior Up, have instructed demonstrators how to damage Canada’s pipelines, roads and railways.

In some of North Shore’s posts, for instance, they told their readers to stand in solidarity with the Wet’suwet’en tribe by destroying train tracks. In this article, the author makes it perfectly clear that he wants to damage Canada’s economy at large.

More absurdly, however, the article then went on to instruct the reader on how to compose a chemical mixture that destroys steel rail tracks — taking particular care to describe how not to leaving fingerprint or DNA evidence.

Thursday evening, VIA Rail announced their whole passenger network would be shut down until further notice: Service cancellation notice.

« Newer Posts — Older Posts »

Powered by WordPress