Quotulatiousness

July 1, 2012

“Canada was born in debt”

Filed under: Cancon, Economics, Government, History, Railways — Tags: , , — Nicholas @ 11:08

At the Worthwhile Canadian Initiative blog, Livio Di Matteo explains one of the less mentioned but urgent reasons behind confederation in 1867:

The trials and tribulations of the European Union, its debt crisis and the Euro and the suggestion that part of the solution lies in a stronger fiscal union reminds me of the forces behind the drive for Canadian confederation in the mid-nineteenth century. Canadians are usually taught in school that major forces driving Confederation were the potential threat of territorial aggrandizement by the United States in the wake of the Civil War or the need for a larger market given Britain’s move to free trade and the end of Reciprocity with the Americans or the desire to generate the economic resources to build a railway to the west so that it could serve as an investment frontier.

One factor that receives very little mention is the fact that the prior to 1867 the colonies of British North America were heavily in debt and faced a fiscal crisis of their own. The solution to the colonial debt crisis that Confederation allowed was the creation of the federal government that was given strong revenue raising powers and assumed provincial debts and thereby stabilized the public credit. Public debt charges in 1867 already accounted for 29 percent of federal budgetary expenditure and by 1880 had only been whittled down to about 24 percent. Canada was born in debt.

Canada was created with a large debt as the provincial and local levels of government had invested heavily in transportation infrastructure — canals and railways in particular. In 1850, there were only about 66 miles of track in operation but by 1860 about 2000 miles of track had been built in eastern Canada. The total cost of building these railways in British North America up to 1867 was 145.8 million dollars the bulk of which was for the Province of Canada — Ontario and Quebec. By way of comparison, Canada’s GDP in 1870 has been estimated at about 383 million dollars.

[. . .]

Confederation was designed to fix a massive debt problem. Creation of a new political entity — the dominion government — would allow for the current debt burden to be serviced and for more credit to be obtained on foreign markets to fund the railway projects of the late 19th century — the CPR, Canadian Northern, etc… Confederation was a solution to the debt crisis but required a form of government that reduced sovereignty for the member units in order to stabilize the public credit. In the Canadian case, as acrimonious as the discussions were, the process was facilitated by the fact that the member units were all British colonies with similar institutions.

“… except in Canada”

Filed under: Cancon, Economics, Government — Tags: , , , , , — Nicholas @ 10:25

The National Post editorial board celebrates Canada Day by making a case for Canadian exceptionalism:

The acronym “EIC” can refer to a newspaper’s editor-in-chief, the various forms of the storied East India Company, the Engineering Institute of Canada, and, in scientific circles, Electromagnetically-induced chirality. But in these odd times, they might also be deployed, for verbal economy, to denote “except in Canada.”

As in: Banks all over the Western world have suffered a series of shocks since the 2008 financial crisis – EIC. Economies have slowed — EIC. Real estate bubbles have popped — EIC. Deficits have ballooned to crisis proportions — EIC.

OK: Perhaps national pride leads us to exaggeration. A more truthful acronym might be EICAG — to include Canada “and Germany.” Various smaller European nations, as well as countries in Asia and Latin America, also have fared well. Yet it is hard to remember a time (if ever there was one) when Canada’s fortunes, taken as a whole, were so rosy compared to those of all other Western nations. This good fortune is something worth celebrating as we prepare to celebrate Canada’s 145th birthday this weekend.

They even have some praise to lavish on two former prime ministers who don’t normally get a kind word from the right:

Canada’s relative lack of red ink also is no accident. Two decades ago, Canada was what Greece was today: a bloated welfare state running up massive bills that it couldn’t pay. The unpopular job of fixing the balance sheet feel primarily to Jean Chrétien and Paul Martin — and they accomplished the task without any of the political chaos that has been gripping Athens and other southern European capitals in the last year. The prosperity and stability we enjoy today is in large part due to what those two men did with the fiscal mess bequeathed to them by Brian Mulroney and Pierre Trudeau.

Of course, not everything is going wonderfully well in the Dominion: we still have not emulated one of the notable successes of our European friends:

One of the few institutional factors holding Canada back is its healthcare system. As Shaun Francis writes elsewhere on these pages, our refusal to explicitly permit full-blown private alternatives to the current government-payer health monopoly is bad policy that is out of keeping with that of leading European jurisdictions.

Fortunately, this is a shortfall that can be cured easily. As the furor over Obamacare in the United States shows, building a universal public health system is difficult. But Canada has already done this heavy lifting over the last 50 years: All we lack now is a parallel private track — and that is something that will spring into being without any governmental action at all, save the legislative stroke of a pen needed to modify the Canada Health Act accordingly.

June 30, 2012

Writing the UN’s epitaph in advance

Filed under: Bureaucracy, Cancon, Politics — Tags: , , — Nicholas @ 11:10

Conrad Black on the increasingly useless United Nations (although he urges reform instead of abandonment):

For the past 45 years the United Nations has become steadily over-populated by poor states, failed states, petty despotisms and militant Muslim counties chiefly preoccupied in diplomatic matters with the harassment and denigration of Israel. Most of the agencies have become sink-holes of patronage and corruption for poor countries paying themselves with the contributions of rich countries and polemically biting the hands that feed them.

It has become a source of payola windfalls for corrupt agency officials as well as a substitute for theatre and psychiatry for many of the world’s most disreputable regimes. Muammar Gadaffi’s Libya was elected to the chair of the Human Rights Commission (precursor of the present Human Rights Council), and the whole hierarchy of the UN was implicated in the scandalous misappropriation of many millions of oil dollars supposedly destined for humanitarian purposes in Iraq. The chief humanitarian beneficiaries were Saddam Hussein and crooked UN officials. Many of the peace-keeping missions are staffed by unqualified soldiers from very poor countries, which rent themselves out to the warring factions for cash; and thereby increase, rather than control, local violence.

Unfortunately, Canada was, for most of the UN’s history, far too indulgent of it. First, as a victorious ally and charter member, it was part of the Anglo-American governing consensus. Then, after Lodge gave Pearson the Suez peacekeeper idea (and Pearson forgot that it wasn’t his originally), the foreign policy establishment in Ottawa began to view the UN as a way for Canada to distinguish itself from the U.S. at little cost, and to allow itself, with a modest foreign aid budget, to pander to Third World countries without seriously annoying our traditional allies. This gradually developed into the Chrétien government’s endorsement of “soft power,” a phrase originated by former U.S. president Bill Clinton’s national security adviser Joe Nye, which was a soft alternative to the use of American military might. It is a concept that has any validity only when there is a hard power option, which Canada did not possess. As practised by this country, soft power was a fraud, it was just more softness.

[. . .]

Undoubtedly, there will be those in Canada who decry the Harper government’s comparative friendliness with Israel and call for appeasement of Pillay and her foaming claque. What we should do instead is lead agitation for a massive transformation of the United Nations — back to the defence of Eleanor Roosevelt’s Universal Declaration on Human Rights (which is not subject to Shariah law or any other such barbarities), jettison the antiquated Security Council and propose a variable system of voting in the General Assembly, where votes are accorded to countries and groupings of countries according to a combination of their population, economic strength and objectively assessed respect for human rights.

Canada is well placed to organize the support for such measures by the countries that pay most of the UN’s bills. This would be a much more appropriate stance for Canada, now that it has been so unjustly pilloried by the anthill of bigotry of a Human Rights Council, than continued reverence for this citadel of hypocrisy. The United Nations is both a mad cow and a sacred cow; it is in desperate need of radical reform.

The cruellest month in Newfoundland is July

Filed under: Cancon, Economics, History, Military, WW1 — Tags: , — Nicholas @ 10:43

Rex Murphy in the National Post on the worst month in Newfoundland’s calendar:

T.S. Eliot did not write for Newfoundlanders. April is not the cruelest month. For us, it’s July. Both the first and second day of July are marked indelibly in the province’s common memory, the first perhaps the saddest day in the historic calendar, the second as the day of the most fundamental change in the essential makeup of the province.

The greatest tragedy in Newfoundland’s history occurred on July 1, 1916 the opening day of the Battle of the Somne, when nearly 800 men from the 1st Newfoundland Regiment went “over the top” at Beaumont Hammel, only to suffer close to 700 casualties within less than half an hour. It was a virtual annihilation of the entire Regiment. The shockwaves from Beaumont Hammel went through every town and village, city and outport of the time. There was not a place unmarked with grief. To this day, the memory of Beaumont Hammel commands deep respect and notice.

A different kind of event, one not drawn from conflict or war, marks the second day of the month. Just 20 years ago, for the very first time since the late 15th century and the arrival of the Europeans and John Cabot to the fish-crowded waters off Newfoundland, catching cod-fish was declared illegal. The fishery, that great and traditional fishery of Newfoundland, was shut down for the first time in nearly 500 years.

It’s been 20 years since the fishery was closed, and there’s still no sign that it will be re-opening any time soon.

June 28, 2012

What did Canada give up to get “2nd class seating” in the TPP negotiations?

Filed under: Cancon, Economics, Pacific, USA — Tags: , , , , — Nicholas @ 10:27

Michael Geist on the Canadian concessions to get a seat at the kiddy table for the Trans Pacific Partnership free trade negotiations:

…the benefits for Canada are hard to identify. The price of admission was very steep — Canada appears to have agreed to conditions that grant it second-tier status — and the economic benefits from improved access to TPP economies are likely to be relatively minor since we already have free trade agreements with four of the ten participants.

Given those conditions, why aggressively pursue entry into the negotiations?

[. . .]

Given Canada’s late entry into the TPP process, the U.S. was able to extract two onerous conditions that Prime Minister Stephen Harper downplayed as the “accession process.” First, Canada will not be able to reopen any chapters where agreement has already been reached among the current nine TPP partners. This means Canada has already agreed to be bound by TPP terms without having had any input. Since the TPP remains secret, the government can’t even tell us what has been agreed upon. [Scott Sinclair reports that the commitment is even broader, covering any chapter where provisions have been agreed upon]

Second, Canada has second-tier status in the negotiations as the U.S. has stipulated that Canada will not have “veto authority” over any chapter. This means that should the other nine countries agree on terms, Canada would be required to accept them.

This condition could be used to stop Canada from joining forces with another country on a tough issue during the late stages of the negotiation. For example, Canada and New Zealand both have copyright terms that last for the life of the author plus an additional 50 years. The U.S. has proposed that the TPP mandate a term of life plus 70 years. While Canada and New Zealand might be able to jointly block the extension, the U.S. could pressure New Zealand to cave on the issue and effectively force Canada to accept the change.

Getting rid of our government-mandated monopolies in the agricultural sector (a good thing) is not going to be worth the price of adopting American-style copyright legislation.

June 27, 2012

Questions on the Elliot Lake rescue efforts

Filed under: Bureaucracy, Cancon, Media — Tags: , , , — Nicholas @ 08:22

Whether it was just a badly phrased moment in a press conference or not, Toronto’s Heavy Urban Search and Rescue team has not done itself any public relations favours in the aftermath to the partial collapse of the Algo Centre Mall in Elliot Lake:

The story of the collapsed mall in Elliot Lake, where the rescue mission is back on after being suspended on Monday because officials deemed the building too “unsafe,” has so far deviated from romantic tales of heroism and rescue, spiralling instead into talk of delays, strict mandates and “limited resources.”

A spokesman for Toronto’s Heavy Urban Search and Rescue team, Bill Neadles, said on Tuesday the group was still in its “infancy” — that aside from winning some industry competitions and running mock rescues, HUSAR, as it is known, had only participated in one operation: a gas explosion in 2003. He said when he initially told residents on Monday the team had “reached the end of its mandate” he did not mean they were abandoning the operation, he “just didn’t want to lead anybody to believe I was going to come back with a silver claw and walk on water.”

[. . .]

In Elliot Lake, no one has been spirited away alive, at least not yet. One person is thought dead and a dozen are feared missing. At least one is believed to have made a noise amid the rubble on Monday morning.

“One of the things that gives rescue a sort of romance is the idea that you go in and you get the job done … and that’s one of the reasons this Northern Ontario mall story is so 21st century,” said Bob Thompson, a pop culture expert at New York’s Syracuse University. “Here we’ve got this potentially romantic rescue story, and what do we see? Good ol’ fashioned bureaucracy.”

When most Canadians think of rescue, they do not think of government inner-workings: a Ministry of Labour structural engineer suspending a search; provincial officials having to explicitly give the Toronto team the authority to go back in; a premier intervening to make that happen.

“If you had put 100 miners in there, they would have been out by Saturday,” said Greg Dillavough, a retired miner who once worked in mine rescue in the Northwest Territories and Ontario. “You don’t walk away from a site when someone’s alive.”

June 26, 2012

The “Draft Andrew Coyne” movement

Filed under: Cancon, Liberty, Media, Politics — Tags: , , , , , , , — Nicholas @ 10:49

I’ve met Andrew Coyne. We had a pleasant chat about political matters a few years ago (although I was one of dozens of Toronto-area bloggers he talked with that night: I doubt he remembers me). I often agree with his writings (and even when I don’t, he’s usually quotable). But how would he fare as a candidate for the Liberal leadership? Abacus ran the numbers:

Nationally, most Canadians told us they didn’t know enough about Mr. Coyne to say whether they had a favourable or unfavourable impression of him. Sixty-four percent were not sure of their opinion while 15% said they had a favourable impression while 21% had an unfavourable impression. Unfortunately for Mr. Coyne, the percentage of respondents who had “very unfavourable” was higher than those who had a “very favourable” impression of him (9% very unfavourable vs. 3% very favourable).

Nonetheless, there are “pockets” of Coynemania out there.

  • Men are slightly more likely to have a favourable impression of him than women (men 18% favourable, women 12% – women were also much more likely to be unsure).
  • There was no significant age difference although older Canadians (no surprisingly) were more likely to be aware of Mr. Coyne.
  • Regionally, he is more popular in Manitoba and Saskatchewan (25% favourable) than in other regions of the country. He is a tough sell in Quebec where his favourable rating is a mere 8%.
  • Considering his occupation and the audience likely to read and watch him, it is no surprise that respondents with a university degree were most aware and favourable to Mr. Coyne. 24% of those with a bachelor’s degree and 29% of those with a post-graduate degree had a favourable impression of the National Post columnist.
  • He is also more likely to be viewed favourably by those who live in urban communities (urban 18% favourable, suburban 13% favourable, rural 12% favourable).
  • Mr. Coyne is also viewed more favourable by those who own stocks, bonds, or mutual funds: 20% favourable vs. 10% among those who don’t own those kinds of investments.
  • Finally, there isn’t a significant partisan difference. Those who voted Liberal in 2011 are only slightly more likely to view him positively than NDP and CPC voters but the differences are marginal. He is a post-partisan candidate!

I don’t know if he’s actually interested in a political career, but he’d at least be a different kind of candidate than the Liberals have had in decades. I’ve never voted Liberal in my life, but I could imagine voting for a Liberal if Andrew Coyne was the Liberal leader. He appears to actually believe in smaller government and free markets — which is why he’d never be able to run as a Conservative. He’s on the record as being almost libertarian in his views on individual rights (especially on Nanny State issues) — which is why he couldn’t run as a New Democrat.

It’s not clear whether there are any members of today’s Liberal Party of Canada who could cope with a classical liberal as leader. But it would create a viable third choice in federal politics: that’s worth a lot in my books.

Update: There’s a Twitter hashtag for the movement: #coyne4lpc, and Jesse Helmer points out that there’s a Facebook group, too:

Update, the second: Apparently Andrew Coyne is getting into the swing of being a big-time politician, having already fired his first campaign manager:

Sacrificing relations with your top trading partner for domestic political reasons

Filed under: Cancon, Economics, USA — Tags: , , , — Nicholas @ 07:59

In Foreign Affairs, Derek H. Burney and Fen Osler Hampson outline the sad state of the trading relationship between Canada and the United States:

Permitting the construction of the Keystone XL pipeline should have been an easy diplomatic and economic decision for U.S. President Barack Obama. The completed project would have shipped more than 700,000 barrels a day of Albertan oil to refineries in the Gulf Coast, generated tens of thousands of jobs for U.S. workers, and met the needs of refineries in Texas that are desperately seeking oil from Canada, a more reliable supplier than Venezuela or countries in the Middle East. The project posed little risk to the landscape it traversed. But instead of acting on economic logic, the Obama administration caved to environmental activists in November 2011, postponing until 2013 the decision on whether to allow the pipeline.

Obama’s choice marked a triumph of campaign posturing over pragmatism and diplomacy, and it brought U.S.-Canadian relations to their lowest point in decades. It was hardly the first time that the administration has fumbled issues with Ottawa. Although relations have been civil, they have rarely been productive. Whether on trade, the environment, or Canada’s shared contribution in places such as Afghanistan, time and again the United States has jilted its northern neighbor. If the pattern of neglect continues, Ottawa will get less interested in cooperating with Washington. Already, Canada has reacted by turning elsewhere — namely, toward Asia — for more reliable economic partners.

[. . .]

In Afghanistan, Canada is now rapidly scaling back its substantial commitment to the military mission, thanks to the United States’ increasingly erratic, if not embarrassing, direction. Canada has spent billions on the war and lost over 150 soldiers, proportionately more than any other ally, but has received no tangible dividend for its support on bilateral or multilateral issues of concern to it. Canada also participated in NATO’s mission in Libya — where a Canadian, Lieutenant-General Charles Bouchard, commanded military operations. Canada has no tangible interests of any kind in Afghanistan or Libya. Its participation in those countries, proportionately larger than any other ally, was intended primarily to strengthen the partnership with the United States on the theory that solid multilateral commitments would engender more productive bilateral relations. That proved not to be the case.

Update: Matt Gurney wonders if the palpable lack of reaction by Canadians to the laundry list of “slights” might possibly indicate that Canada is finally “growing up”:

You can’t say the essay is wrong. From Keystone XL to Buy America provisions in the stimulus packages developed by Congress, the U.S. has found occasion over the last few years to irritate Canada. But notably absent has been the kind of heated Canadian rhetoric you’d hear as recently as the Paul Martin era during the softwood lumber dispute. Nor does the Canadian public seem to be demonstrating much of the reflexive anti-Americanism that has always been a strange part of our national character.

We’ve long insisted that the U.S. treat us as a separate and sovereign country, and yet react with wounded outrage when they treat us as a separate country. Go figure. But given that Burney and his co-author are right, and America has repeatedly slighted Canada … and if we can agree that Canadians don’t seem particularly freaked out about it … good Lord, could it be that Canadians are, gulp, growing up?

June 25, 2012

QotD: Working with the PQ

Filed under: Cancon, Government, Humour, Politics, Quotations — Tags: , , , — Nicholas @ 13:44

For some reason it is being treated as news that the Prime Minister said he would work with a Parti Quebecois government in the unfortunate circumstance of a PQ victory.

What else was he supposed to say? The PQ has held power several times since Rene Levesque’s first victory in 1976. It’s a democratic country, and provinces can elect whoever they want. Ottawa doesn’t have a choice whether it wants to work with the victor or not. Harper worked with Danny Williams — well, he tried, anyway — when the Newfoundland caudillo declared himself the supreme power of El Rocko Independanto and waged a personal war against his Canadian oppressors. Pauline Marois, the PQ leader (at least until the next revolt) can’t be half as annoying as Danny was.

Kelly McParland, “Why is it news that Stephen Harper would recognize a PQ government?”, National Post, 2012-06-25

No innovation can survive the bureaucratic process

Filed under: Bureaucracy, Cancon, Government — Tags: , , — Nicholas @ 10:44

A story that won’t surprise anyone who has ever worked in a large bureaucracy is still eye opening — even Scott Adams’ Dilbert characters have it easier to get their suggestions implemented:

It was the summer of 2010, and the Treasury Board Secretariat (TBS) was about to launch the Employee Innovation Program — kind of like the employee suggestion drop box by the water cooler.

Except, nothing like it at all, as TBS employee Anna Bevilacqua was about to discover.

[. . .]

The employees who answered the call for creativity had to follow several rules, including: An employee could not make a suggestion without his or her boss’ approval; and proposals that might lead to a change in TBS policy would be rejected.

Managers tracked the proposals using a spreadsheet that noted the date and exact time a proposal was received, whether an individual or team of workers made the submission and the date it was received by a committee of three TBS managers.

The program designed to cut waste was taking shape. A bloated, forbidding shape.

[. . .]

Four managers formed a “Sub-Committee for Initial Triage” to conduct a “pre-screening” of the proposals. The selection process would be guided by a flow chart with text inside parallelograms and rectangles connected by arrows.

[. . .]

Bevilacqua needed to complete an “implementation framework” document. If she failed to “clearly define objectives, benefits, deliverables, exclusions, assumptions, responsibilities, estimated costs and timelines,” if her plan did not identify possible “slippage in target dates,” if it did not use a “risk log” or a “risk mapping approach,” it could die in Phase Two.

She and the other applicants were warned: “A wrong plan is worse than having no plan at all.”

[. . .]

The vetting and revising and perfecting continued. Each surviving proposal was screened by the Treasury Board’s chief information officer, deputy chief financial officer and chief financial officer.

[. . .]

The months of meetings, memos and emails confirmed her idea was a no-brainer. Her plan would be put into action.

A congratulatory note was vetted by three people before it was sent to her.

Then, the extensive trail of TBS paper — nearly 550 pages obtained by the Star through Access to Information legislation — ends in late 2010.

The employee who suggested this had already retired before the suggestion was implemented — and it was implemented outside the suggestion program anyway. The final line of the article sums it up perfectly: “Not one employee has received a cash award.”

H/T to Andrew Coyne:

https://twitter.com/acoyne/statuses/217238022482169857

If NAFTA was real free trade “it wouldn’t contain 22 chapters of rules and regulations”

Filed under: Cancon, Economics, Liberty, USA — Tags: , , , , , — Nicholas @ 00:03

Free trade is the way to go, if you want to benefit the consumer. Producers don’t benefit as much: it increases their competition and means that bad producers are more likely to go out of business. Protectionists always rely on the visible “damage” that free trade does to these bad producers and minimize or completely ignore the (larger) benefits to consumers.

Jesse Kline explains why moving toward freer trade will benefit most Canadians, and the drawbacks will be to those who are least able or least willing to face real competition:

Prime Minister Stephen Harper announced this week that Canada will join the Trans-Pacific Partnership (TPP) talks, along with he United States, Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, Vietnam, Mexico and, we hope, Japan. Some say this will be a historic free trade deal that will extend the NAFTA zone into emerging Asian markets; others believe the United States is using the process to impose its own draconian copyright regime on its trading partners, while protecting key industries, such as auto manufacturers. The truth is probably somewhere in the middle.

The problem is that the agreement is being negotiated under a veil of heavy secrecy. And if rumours that the negotiated sections of the agreement already contain over 1,000 pages prove to be correct, it is certain that the TPP will not give us anything resembling real free trade. Indeed, the Canadian public has little idea about what we are getting ourselves into, or how much the government knew about what it was agreeing to. Based on a leaked chapter of the agreement, it looks as though we just signed up for an entirely new copyright regime, a mere hours after the government passed its own made-in-Canada solution.

To the government’s credit, it is simultaneously pursuing trade deals with the European Union and China. But in these times of global economic uncertainty, we need to see the benefits of trade sooner, rather than later. Free trade leads to higher standards of living, and benefits society through lower prices and increased variety of consumer goods; it forces domestic industries to be more efficient. Fortunately, there is another way to achieve these benefits: The Canadian government could open our borders to the world by unilaterally removing all our trade barriers.

June 24, 2012

Paul Wells: What is behind the easy ride for Thomas Mulcair?

Filed under: Cancon, Politics — Tags: , , , , — Nicholas @ 10:41

In Maclean’s, Paul Wells ponders what could be preventing Stephen Harper from bringing down the hammer on Thomas Mulcair the way he did on Stéphane Dion, Michael Ignatieff, and Bob Rae:

For six years Stephen Harper’s opponents have wondered when he would stop spending millions of dollars to whale the tar out of them. Apparently the answer was that he’d stop as soon as his opponent stopped being Liberal.

[. . .]

The surprise is that Harper is not yet using his old tricks to change it.

His old tricks would consist of a heavy, sustained advertising campaign against the man who has risen highest against him. That’s what he did against Stéphane Dion, Michael Ignatieff and then, three months ago, against Bob Rae. Now, one of these things is not like the others. In minority government parliaments where an election always loomed, Dion and Ignatieff were present dangers. But going after Rae looks like a concession to instinct—and a mistake. The money spent has been lost, the neutralized enemy is now gone, and if the Liberals manage to find somebody more impressive to lead them, Harper will wish he’d let Rae limp to the next election.

Meanwhile, apart from the odd bit of ineffectual Conservative sass-talking, Mulcair rises unhindered. Why? Three possibilities. Maybe Harper is lost in the face of superior opposition. Maybe his minions are preparing ads that will take Mulcair apart in 2013.

Or maybe Harper is happy to see Mulcair rise. The Liberals, who governed Canada for most of the 20th century while the Conservatives didn’t, are left squeezed from both sides but too stubborn to disappear. The left-of-Conservative vote remains split. With the Liberals dominant in the centre, Conservative parties won three elections between 1963 and 2004. With the NDP dominant on the left, Conservatives would win more. Harper doesn’t control all of Canadian politics or anywhere close, but if he left a landscape like that behind him, he could retire a happy man.

Conrad Black: Don’t blame Canada

Filed under: Cancon, Economics, Europe, Government — Tags: , , , , , , — Nicholas @ 08:45

In his weekly column at the National Post, Conrad Black refutes Jose Manuel Barroso (who appeared to refer to Prime Minister Harper as a “nobody” recently) that the European crisis was made in North America:

Stephen Harper is absolutely correct to refuse to contribute to World Bank assistance to Europe. The reward for the consistently intelligent fiscal management of Canada by both governing parties for more than 20 years should not be to assist rich countries that ignored our example and the warnings of their own wiser statesmen until the wheels came off the Euro-fable in all four directions.

The president of the European Commission, Jose Manuel Barroso, made the point at the G20 meeting in Mexico last week — in, as he thought, a reply to Harper’s comments on Europe’s self-generated economic and fiscal problems — that the current economic crisis originated in North America. That is not entirely true. It originated in the ill-starred fiscal and social policies of most European countries, and the tinder was set alight by bad financial, social, fiscal and regulatory policy in the United States.

Margaret Thatcher, Angela Merkel, and even Gerhard Schroeder, as well as a number of Austrian, Dutch, and Scandinavian leaders all warned that Europe could not continue to guarantee employment to all job-holders as a steadily shrinking percentage of Europeans worked and the public sector share of GDP rose, infused with the steroids of over-bountiful social democracy. Most countries of Europe today are like the little pigs who didn’t build their homes from weather-proof materials.

Furthermore, it is no rejoinder to Mr. Harper to complain about the Americans. It would be no less logical to blame the floundering of Dalton McGuinty’s Ontario on booming Texas, since both jurisdictions are in North America. In the same line of reasoning, I would like Newfoundland’s involvement in the drug wars in Mexico fully examined.

June 23, 2012

Trade deals as mutual disarmament pacts

Filed under: Cancon, Economics, Food — Tags: , , , , , — Nicholas @ 00:27

It’s a very sad commentary that the only way the current “pro-business” federal government can even consider scrapping our supply management monopolies is because “our trading partners forced us to”:

If the government were of a mind to get rid of supply management — it swears it is not — that is perhaps the only basis on which it could: our trading partners made us do it. Certainly it would not dream of doing so otherwise. Such is the power of the supply management lobby, especially dairy, that a suffocating consensus has settled over the issue, of a kind rarely seen in a democracy. Consensus is not even the word. Every party strives to outdo the others in the fulsomeness of its support. And not just every party: every member of every party, in every province and at every level of government. It’s quite creepy.

Yet virtually every economist or policy analyst of note agrees that supply management is a disgrace. The primary effect of the quotas — the intended effect — is to drive up the price of these foods, staples of most Canadians’ diets, to two and three times the market price. The burden of these extraordinary price differentials, of course, fall most heavily on the poor, a fact that ought to trouble self-styled “progressives” but evidently doesn’t.

But it isn’t only consumers who pay. Since the quotas are tradeable, the premium over market prices gets capitalized into the value of the quota. The right to a cow’s worth of milk production, for example, runs to about $28,000, meaning a farmer looking to get into the industry faces an initial outlay, for the typical 60-cow farm, in excess of $1.5-million — just for the quota, never mind the cows, the barn and the rest.

June 22, 2012

The War of 1812 “remains the Jan Brady of American conflicts”

Filed under: Cancon, History, Military, USA — Tags: , , , , , — Nicholas @ 11:03

In The Atlantic, Adam Chandler explains why the War of 1812 is an also-ran in the American war popularity contest:

Of the many holes in the American national memory, the War of 1812 may be the most gaping. The war that gave America its national anthem, birthed Uncle Sam, and anointed four future presidents as war heroes remains the Jan Brady of American conflicts for good reason: not only was it book-ended by two vastly more significant wars, but its causes weren’t sexy, its conclusions were muddy, and its most famous battle took place after peace was declared. And so 1812 remains the only American war known by its date. (Even Congress refused to establish a bicentennial commission, leaving the commemorations up to the states.)

But as history buffs, state and local governments, and (doubtlessly) some zealous reenactors begin the mark the conflict that started on this date in 1812, there is much that modern-day Americans can learn from this clumsy moment in the nation’s childhood.

[. . .]

Congress finally declared war on Britain, with impeccably bad timing: Just a few days earlier, the British foreign minister had decided to rescind the policy towards American trade that had caused all of the hullabaloo to begin with. But word did not reach America in time, and ill-equipped U.S. forces fecklessly staggered into Canada to show the British not to mess with American trade (and to possibly snag some of Canada’s sweet farm land). Aided by a confederacy of Native Americans, Canada mostly repelled the invasion and won a large number of battles.

The most ridiculous moment of all featured the United States surrendering the entire city of Detroit without firing a shot in defense. “It was the most colossal screw-up of the war,” Alan Taylor, the Pulitzer Prize-winning historian explained in an interview. “And it comes at the worst possible time in the first major invasion. The Madison administration was counting on winning a quick victory in invading Upper Canada from the western end via Detroit to render the war popular. And instead, he got a catastrophic defeat.”

However, most Americans, if they remember it at all, recall the scene that inspired the writing of the national anthem or the (technically post-war) battle at New Orleans:

“All of those are events that come in the last months of the war when the British were mounting a counterattack against the United States.” Taylor explained. “They are all events that lead Americans to think they were on the defensive in the war and that the British were the aggressor. What’s lost sight of is that the United States declared the war and conducted the first two years of the war primarily as an invasion of Canada. And so Americans don’t remember the battles in Canada because they went so badly for the United States.”

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