Quotulatiousness

December 9, 2013

Despite cutbacks, the Royal Navy still internationally active (and valid)

Filed under: Asia, Britain, Military — Tags: , , — Nicholas @ 10:32

Sir Humphrey on how the UK still manages to project force around the world in the wake of the most recent set of budget cuts:

While the numbers may be smaller than in the past, reading the twitter feed [@NavyLookout]and looking at the images of modern vessels, one is left with a genuine sense that the RN remains an immensely capable force by any reasonable standard. The ability to deploy this force globally, and to meet a wide range of missions is extremely impressive. One of the centre pieces of the SDSR was the restructuring of the RN to provide the so-called ‘Response Force Task Group’ (RFTG) which has since establishment proven to be a superb means of deploying a worked up task group around the world and reacting to events.

In this year alone the Royal Navy has been engaged in operations across the globe, and been able to not only rely on warship deployments, but also highlight the value of its wider basing and command and control capabilities. As the year draws to a close, there are by the authors reckoning three 1* command groups deployed out there co-coordinating both UK and Multi-national operations. The facility in Sembewang has once again highlighted its importance to the RN (and the wider UK) as a useful foothold in a region that the RN hasn’t frequented for some years, and HMS DARING and HMS ILLUSTRIOUS have helped restore hope to thousands of people affected by the dreadful events in the Philippines.

While many wish to be downbeat about the RN, given the pace at which it is operating globally, and the way in which it is able to respond so rapidly to so many events, it is hard to see it as a navy in decline. Yes it is smaller, but so are most Navies these days. But to judge a Navy purely by hulls and not by output is misguided — the RN today remains one of the most capable on the planet, and the events of this year have gone to show that it continues to meet the task placed on it with aplomb.

November 18, 2013

The Pentagon (accounting) papers

Filed under: Bureaucracy, Military, USA — Tags: , , , — Nicholas @ 17:25

Unlike other branches of the US government, the Department of Defence still isn’t properly accounting for all its expenditure, says Scot J. Paltrow in a Reuters report:

The Defense Department’s 2012 budget totaled $565.8 billion, more than the annual defense budgets of the 10 next largest military spenders combined, including Russia and China. How much of that money is spent as intended is impossible to determine.

In its investigation, Reuters has found that the Pentagon is largely incapable of keeping track of its vast stores of weapons, ammunition and other supplies; thus it continues to spend money on new supplies it doesn’t need and on storing others long out of date. It has amassed a backlog of more than half a trillion dollars in unaudited contracts with outside vendors; how much of that money paid for actual goods and services delivered isn’t known. And it repeatedly falls prey to fraud and theft that can go undiscovered for years, often eventually detected by external law enforcement agencies.

The consequences aren’t only financial; bad bookkeeping can affect the nation’s defense. In one example of many, the Army lost track of $5.8 billion of supplies between 2003 and 2011 as it shuffled equipment between reserve and regular units. Affected units “may experience equipment shortages that could hinder their ability to train soldiers and respond to emergencies,” the Pentagon inspector general said in a September 2012 report.

Because of its persistent inability to tally its accounts, the Pentagon is the only federal agency that has not complied with a law that requires annual audits of all government departments. That means that the $8.5 trillion in taxpayer money doled out by Congress to the Pentagon since 1996, the first year it was supposed to be audited, has never been accounted for. That sum exceeds the value of China’s economic output last year.

November 10, 2013

Latest federal initiative shows “patronising contempt, arrogant presumption and impressive stupidity”

Filed under: Cancon, Economics, Government — Tags: , , , — Nicholas @ 13:39

The federal government is launching a program to help “ordinary Canadians” become better at managing their finances. Richard Anderson points out the amusing aspect of this:

I sometimes wonder if the hacks who put out these releases aren’t giggling to themselves the whole time, amazed at what they’re getting away with. You work for a Conservative government that wades through a sea of red ink every year. This same government has no credible plan to deal with the entitlement crisis, except point out how we’re less screwed than the Yanks. So naturally you go about lecturing the common folk on how to balance their chequebooks. This is like the morbidly obese diet coach of legend.

We see here a unique combination of patronising contempt and arrogant presumption that does not, so far as we have been able to determine, exist outside of Ottawa. Even the Soviets assumed that an ordinary adult could balance their personal budgets without being lectured to by a full time commissar. Then again they were communists, not nannies. Herein lies the great difference between the totalitarian projects of the last century and the petty authoritarianism of this one, the end result. The communist, fascists and Nazis envision a new man who would change the world. Note the underlying assumption: Man.

At some point, after rigorous indoctrination, the boy would become a man. The modern nanny state assumes that the boy never becomes a man, he’s always a boy needing to be hectored to and monitored. As the press release notes: “…brushing up on the basics of money management at any age and will include events for Canadians of all ages.” No matter how old you get, the federal government will be there to tell you how to manage your affairs. That generations of Canadians did this quite well without government involvement never comes up.

Growth forecasts continue to over-estimate Canada’s actual economic progress

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

In Maclean’s, Debbie Downer Colin Campbell takes a survey of the state of Canada’s economy:

A key qualification for landing a job at the Bank of Canada, it seems, is an unfailing sense of optimism. In 2009, the bank forecast the economy would grow 3.3 per cent in 2011. It grew 2.5 per cent. In 2011, it said the economy would grow 2.9 per cent in 2013. It will likely be just 1.6 per cent. Now it says the economy will grow 2.3 per cent next year. How likely is that? The bank has consistently viewed the economy through rose-coloured glasses in recent years, perhaps believing its low-interest-rate policy will eventually bear fruit. Rates have been held at one per cent for three years now. But the economy seems only to be getting worse.

It grew 0.3 per cent in August, Statistics Canada said last week — mostly attributed to a familiar crutch, the oil business. Elsewhere, things aren’t looking up. A new TD Bank report said corporate Canada is “in a slump,” with profits down 16 per cent from their post-recession peak in 2011. Some observers point out that Canada is still doing better than Europe and Japan. But so are most countries that aren’t in a recession, from South Africa and New Zealand to Equatorial Guinea and Guatemala. After breezing through the recession, Canada is back to old habits: hoping its fortunes (i.e., exports) will rise along with America’s comeback. But the U.S., too, is back in a rut. Last week, the Federal Reserve said it would continue with its $85-billion-a-month bond-buying stimulus program.

With the economy sputtering, Ottawa has meanwhile remained preoccupied with fiscal restraint and balancing the budget within two years. So, with neither low interest rates nor government spending providing a boost, the outcome seems predictable: Official growth forecasts will look nice, but will keep missing the mark.

October 23, 2013

Perhaps the “starve the beast” plan is working

Filed under: Cancon, Economics, Government — Tags: , , , — Nicholas @ 07:05

In Maclean’s, Stephen Gordon provides an updated look at the Harper government’s ongoing “starve the beast” policy:

Canadian federal government revenues and expenditure, 1960-2013

Canadian federal government revenues and expenditure, 1960-2013

As I’ve written before, the Conservatives have applied the “starve the beast strategy“: First, cut taxes; second, cut spending in order to match lower revenues; third, obtain a balanced-budget for a smaller government. As the red line in the chart shows, the Harper government was temporarily thrown off this past by the financial crisis, which required emergency stimulus spending. They are, however, back on track.

Once again though, we need to be careful to see that the government’s revenues are back above expenditures (so the yearly deficit has been reduced over time), but the government’s outstanding debts are still quite substantial: $892 billion for 2012-13. As long as interest rates stay low, the debt should start to decline, but if-and-when interest rates rise, so will that big pile of accumulated debt.

October 21, 2013

The US debt iceberg

Filed under: Economics, Government, USA — Tags: , , — Nicholas @ 09:53

Jon Gabriel has put together a clear, understandable way to show the relationship between the US government’s revenue, deficit and debt numbers:

When Washington raised the debt ceiling this week, the Beltway media breathlessly reported that the fiscal crisis had ended. Lawyers danced in hallways, bureaucrats twerked on the Metro, congressional aides kissed strangers in the streets — the Tea Party has been defeated! It was like VJ day for wonks.

As our political class exchanged high fives and reporters praised a return to “sanity,” I wondered how these odd creatures defined insanity.

America’s fiscal crisis is not that our debt ceiling was too low, the fiscal crisis is that our debt is too high. When I mentioned this to left-leaning folks, they seemed indifferent. “Obama lowered the deficit.” “I think Bush spent more.“ “It’s Reagan’s fault!”

So I made this infographic:

US debt iceberg

Since most graphs look like this, I focused on just three big numbers: Deficit, revenue and debt.

The analogy is imperfect, but imagine the green is your salary, the yellow is the amount you’re spending over your salary, and the red is your Visa statement. Then imagine your spouse runs into the room and shouts, “great news honey, our fiscal crisis is over. We just got approved for a new MasterCard!” Your first call would be to a marriage counselor or a shrink.

H/T to Nick Gillespie:

What is it that Hemingway always used to say? That thing’s not loaded? Or something about how the “dignity of movement of an ice-berg is due to only one-eighth of it being above water.” Yeah, well, the horrors of federal finances is pretty undignified just looking at the amount of spending versus revenue we do and then it gets really sloppy when you look at the huge amount of debt below the waterline.

October 17, 2013

Yesterday’s throne speech

Filed under: Cancon, Economics, Government, Military — Tags: , , , — Nicholas @ 07:13

The big news from yesterday’s throne speech appears to be that there was no big news. In Maclean’s, John Geddes sounds underwhelmed:

To my ear, the pro-consumer rhetoric is flat. The job-creation talk is slightly better, but still pretty prosaic. I think these Conservatives know what they want to say, and how they want to say it, much better when it comes to Canadian history and the Canadian military.

So the opposition parties should be worried when they hear the revving of the 2017 Anniversary of Confederation engines. That’s a huge political marketing opportunity. Next year’s centennial of the start of World War I isn’t bad either. I was surprised, however, that the Tories risked tarnishing the history-commemoration theme by linking it closely to, of all things, the Senate. “The road to 2017 is a fitting time to strengthen our institutions and democratic processes,” the throne speech said, segueing awkwardly from great moments in Canadian history to the depressing present reality of Parliament’s upper chamber.

On the military, the throne speech hit some effectively brassy notes. For instance, touting their purchase of transport aircraft for the air force, it said: “No longer does Canada have to hitch a ride with out allies. Our serving men and women can now carry out their vital missions.” That’s good, straightforward material. The challenge will be sustaining that tone as the Department of National Defence moves from expanding to cutting.

Paul Wells considers this the government’s moment to “seize Canada’s moment, and suffocate it”:

In an excellent season for Canadian literature, the Prime Minister will pay personal tribute to Stephen Leacock by riding madly off in all directions.

He will introduce balanced-budget legislation as reliable and airtight as his fixed-election legislation. He will sell off federal assets, if he feels like it. He will encourage foreign investment, if he likes it. He will, by state fiat, find the Franklin Expedition. He’ll release a new science strategy. He’ll “crack down on predatory payday lenders,” something he already did once this year when he fired Nigel Wright. He’ll implement the Leslie Report on moving military resources from National Defence Headquarters to someplace more useful — not because the report’s ideas were self-evidently useful, but because Andrew Leslie is now in the business of giving ideas to Justin Trudeau. He’ll make Malala a Canadian citizen. He will celebrate the hell out of Canada’s 150th birthday.

Somewhere in there, at about the point where Tom Hanks would be starting to feel mighty thirsty if this had been a screening of Captain Phillips, there are a few paragraphs about consumer rights. Far less than there is about the 150th birthday celebrations. And far, far less than there is about continuing to crack down on criminals, people who look like criminals, people who might be criminals, and people who might know where there are some criminals. But the PMO assiduously leaked these table scraps about consumer protections for days before the big read, and everyone played the consumer stuff up big in the pre-throne-speech stories, and the CBC spent two hours talking nonstop about the “consumer agenda” after the speech as though there had actually been one in it. The great thing about leaking news is that you can create news where there is none, durably, long after your ruse should have been noticed. No wonder it’s so addictive.

October 4, 2013

Why this government shutdown is different from the last 17 shutdowns

Filed under: Bureaucracy, Government, USA — Tags: , , , , , — Nicholas @ 07:24

Jonah Goldberg on what sets the current US government “shutdown” apart from all the others in recent memory:

Obama has always had a bit of a vindictive streak when it comes to politics. I think it stems from his Manichaean view of America. There are the reasonable people — who agree with him. And there are the bitter clingers who disagree for irrational or extremist ideological reasons.

In his various statements over the last week, he’s insisted that opponents of Obamacare are “ideologues” on an “ideological crusade.” Meanwhile, he cast himself as just a reasonable guy interested in solving America’s problems. I have no issue with him calling Republican opponents “ideologues” — they are — but since when is Obama not an ideologue?

The argument about Obamacare is objectively and irrefutably ideological on both sides — state-provided health care has been an ideological brass ring for the Left for well over a century. But much of the press takes its cues from Democrats and sees this fight — and most other political fights — as a contest pitting the forces of moderation, decency, and rationality against the ranks of the ideologically brainwashed.

What’s unusual is the way Obama sees the government as a tool for his ideological agenda. During the fight over the sequester, Obama ordered the government to make the 2 percent budget cut as painful and scary as possible.

[…]

When Republicans vote to fund essential or popular parts of the government, the response from Democrats is, in effect, “How dare they?” Nancy Pelosi calls the tactic “releasing one hostage at a time” — as if negotiators normally refuse to have hostages released unless it’s all at once.

In the 17 previous government shutdowns since 1977, presidents have worked to avoid them or lessen their impact. Obama has made no such effort out of an ideological yearning to punish his enemies, regardless of the collateral damage.

September 26, 2013

Roll back Obamacare? Not with these tactics

Filed under: Politics, USA — Tags: , , , , , — Nicholas @ 09:42

Coyote Blog calls the current approach by the GOP “Republican Fail” and explains why:

Yes, I understand why things are happening as they are. From a re-election strategy, their approach makes total sense. A lot of these House guys come from majority Republic districts where their biggest re-election fear comes from a primary challenge to the right of them. I live in one of these districts, so I see what perhaps coastal media does not. In everyday conversation Republicans are always criticizing their Congressmen for not rolling back Obamacare. Republicans need to be able to say in a primary, “I voted to defund Obamacare”. Otherwise I guarantee every one of them will be facing a primary opponent who will hammer them every day.

But from the perspective of someone who just wants the worst aspects of this thing to go away, this was a terrible approach. Defunding Obamacare entirely was never, ever, ever going to succeed. Obama and Democrats would be happy to have a shutdown last months before they would roll back his one and only signature piece of legislation. They may have caved in the past on other issues but he is not going to cave on this one (and needs to be seen not caving given his recent foreign policy mis-steps that has him perceived as weak even in his own party). And, because all the focus is on Obamacare, we are going to end up with a budget deal that makes no further progress on containing other spending.

September 25, 2013

Redefining “austerity” (again)

Filed under: Economics, Government, USA — Tags: , , — Nicholas @ 07:51

At Coyote Blog, an illuminating comparison of “austerity” measurements, responding to a piece in Mother Jones by Kevin Drum:

He uses this graph to “prove” that our fiscal response to this recession is weak vis a vis past recessions. The graph is a bit counter-intuitive — note that it begins at the end of each recession. His point is that Keynesian spending needs to continue long after (five years ?!) after the recession is over to guarantee a good recovery, and that we have not done that.

Government spending after recessions

[…]

I took roughly the same data and started each line two years earlier, so that my first year is two years ahead of his graph and the zero year in my graph is the same as the zero point in Drum’s chart. His data is better in the sense that he has quarterly data and I only have annual. Mine is better in that it looks at changes in spending as a percentage of GDP, which I would guess would be the more relevant Keynesian metric (it also helps us correct for the chicken and egg problem of increased government spending being due to, rather than causing, economic expansion).

Here are the results (I tried to use roughly the same colors for the same data series, but who in the world with the choice of the entire color pallet uses two almost identical blues?)

Government spending before and after recessions

That second image tells a radically different story to the first one, doesn’t it? Hard to make that fit into the traditional definition of the word “austerity” though…

September 13, 2013

Medicare costs as seen by the public

Filed under: Government, Health, USA — Tags: , , — Nicholas @ 07:58

The Harvard School of Public Health released a summary of public opinion on various issues surrounding the Medicare system:

As debate over the national debt and the federal budget deficit begins to heat up again, an analysis of national polls conducted in 2013 shows that, compared with recent government reports prepared by experts, the public has different views about the need to reduce future Medicare spending to deal with the federal budget deficit. Many experts believe that future Medicare spending will have to be reduced in order to lower the federal budget deficit [1] but polls show little support (10% to 36%) for major reductions in Medicare spending for this purpose. In fact, many Americans feel so strongly that they say they would vote against candidates who favor such reductions. Many experts see Medicare as a major contributor to the federal budget deficit today, but only about one-third (31%) of the public agrees.

This analysis appears as a Special Report in the September 12, 2013, issue of New England Journal of Medicine.

One reason that many Americans believe Medicare does not contribute to the deficit is that the majority thinks Medicare recipients pay or have prepaid the cost of their health care. Medicare beneficiaries on average pay about $1 for every $3 in benefits they receive. [2] However, about two-thirds of the public believe that most Medicare recipients get benefits worth about the same (27%) or less (41%) than what they have paid in payroll taxes during their working lives and in premiums for their current coverage.

Differences between experts on the financial condition of Medicare and the public can also be seen when examining the reasons for rising Medicare costs and ways to reduce future Medicare spending. Unlike many experts, the public does not see overuse of medical care and the cost of new medical technologies as among the most important reasons for rising Medicare costs. Only one in six Americans (17%) believes that “people receiving drugs and medical treatments they don’t need” is one of the most important reasons why Medicare care costs are rising, and only 6% see “new drugs, tests and treatments being offered to the elderly” as one of the most important reasons. The three reasons cited most often by the public are poor management of Medicare by government (30%), fraud and abuse in the health sector (24%), and excessive charges by hospitals (23%).

Many experts believe that one of the most important reasons for rising Medicare costs is unnecessary care provided to patients. The public, however, sees the bigger problem for people on Medicare as not getting the health care they need (61%), rather than receiving unnecessary care (21%). Many experts see capitated payments (doctors getting paid a fixed amount of money so they can manage all of a patient’s health care for the year) as a preferred way of reducing future Medicare spending. However, a majority of the public favors continuing fee-for-service payments (65%) rather than changing to capitated health care arrangements (30%). This resistance to change may be related to the fact that a majority of the public sees Medicare in some cases already withholding treatments and prescription drugs to save money, including 63% who believe this happens very or somewhat often.

September 3, 2013

Britain’s new aircraft carriers in the news again

Filed under: Britain, Military — Tags: , , , , — Nicholas @ 09:16

It’s from the Daily Mail, so a certain level of de-hystericization is called for…along with salt to taste. First, the discovery that the two carriers will initially be without radar for early warning of incoming planes and missiles:

The Royal Navy’s new aircraft carriers could set sail without a crucial radar which warns commanders of incoming enemy warplanes and missiles.

A damning report by MPs reveals the Crowsnest early warning system will not be ready until six years after the first of the £5.5billion Queen Elizabeth-class warships enters service in 2016.

Delays in fitting the ‘eyes in the sky’ system to military helicopters until 2022 were a ‘concern’, the Commons’ Public Accounts Committee (PAC) says today.

And the costs incurred by changing the planned acquisition of F-35 aircraft to equip the carriers is rather eye-watering:

The bill for the two new warships, given the green light in 2008, is almost twice the original £3.6billion — and there are ‘huge risks’ it will increase further, says the report.

MPs heap criticism on the Coalition for wasting money after a U-turn over the type of warplanes to fly from the aircraft carriers.

In 2010 ministers controversially decided to scrap the last Labour government’s plans to buy a fleet of jump jets, which take off and land vertically.

Instead, Prime Minister David Cameron ordered conventional versions of the US-built F-35 Joint Strike Fighter that would need catapults and arrester gear to take off from and land on the vessels.

But this was based on ‘deeply flawed information’, say the committee. When the cost of fitting the ships with ‘cats and traps’ more than doubled to £2billion, Mr Cameron flip-flopped and returned to buying the jump jet.

The move cost a staggering £74million in squandered in lost man hours, administrative costs and needless planning.

Labour MP Margaret Hodge, the PAC’s chairman, said: ‘The Committee is still not convinced that the MOD has this programme under control. It remains subject to huge technical and commercial risks, with the potential for further uncontrolled growth in costs.’

Queen Elizabeth class side and overhead views

Queen Elizabeth class side and overhead views

The switch back to the jump jet was made last year. Back in 2010, I was rather pessimistic that the carriers would even be built and I suggested that India would likely take them off the Royal Navy’s hands once they were complete.

July 14, 2013

“The very definition of grand strategy is holding ends and means in balance to promote the security and interests of the state”

Filed under: Middle East, Military, USA — Tags: , , , — Nicholas @ 11:18

At the Anti-War blog, John Glaser looks at the ongoing costs of empire:

In Foreign Affairs, Michael O’Hanlon and Bruce Riedel suggest a cost-saving measure for America’s empire in the Middle East: opening more U.S. military bases in the region. Instead of relying as it has on expensive “aircraft carriers in and near the Persian Gulf,” the U.S. should move its military presence back onto land in at least three different Gulf states.

The primary purpose of having U.S. military bases peppered throughout the Middle East has traditionally been to exert control over geo-politically vital oil-rich countries and to allow for a rapid and coordinated use of military force at Washington’s command. As a Top Secret National Security Council briefing put it in 1954, “the Near East is of great strategic, political, and economic importance,” as it “contains the greatest petroleum resources in the world” as well as “essential locations for strategic military bases in any world conflict.”

O’Hanlon and Riedel don’t even consider the legitimacy of America’s military presence in the Middle East; for them, it is a natural law that can’t be questioned. So when faced with strained budgets that can’t support a sprawling, costly, and unwarranted empire, they try to figure minor cost cutting measures around the edges instead of reevaluating our military postures as a whole.

A CSIS report last year took a different tack, arguing that “disappearing finances; rising alternative power centers; declining US military predominance; lack of efficacy of key non-military instruments of power; and reduced domestic patience for global adventures,” all require a rethinking of U.S. grand strategy with an eye towards roll-back.

    The very definition of grand strategy is holding ends and means in balance to promote the security and interests of the state. Yet, the post-war US approach to strategy is rapidly becoming insolvent and unsustainable – not only because Washington can no longer afford it but also, crucially, because it presumes an American relationship with friends, allies, and rivals that is the hallmark of a bygone era. If Washington continues to cling to its existing role on the premise that the international order depends upon it, the result will be increasing resistance, economic ruin, and strategic failure.

That first sentence there is one of the most honest you’ll ever see from an elite DC foreign policy think tank. U.S. foreign policy is ultimately promoting “the security and interests of the state.” It isn’t for your sake. It benefits the government and the private interests aligned with it.

July 7, 2013

More details on US Army’s re-organization plans

Filed under: Military, USA — Tags: , — Nicholas @ 11:50

Strategy Page updates the headline news about the US Army disbanding over a dozen combat brigades in the most recent military cutbacks:

The U.S. Army recently announced its plan to reduce its 45 combat brigades to 32 but to retain most of the combat capabilities of the 45 brigade force. This will be done by transferring many of the troops and equipment from the disbanded brigades to the 32 that will remain in service. This will increase most brigades to 4,500 troops. Each new brigade will have three infantry or armor battalions (instead of two, as most now do) 18 (instead of 16) 155mm self-propelled artillery vehicles (organized into three batteries instead of two) and more engineer troops (the equivalent of a battalion) for each brigade. The new BCTs (Brigade Combat Teams) will initially consist of 14 infantry (two infantry and one tank battalion), 12 tank (two tank and one infantry battalion) and seven Stryker battalions. Three of these 35 brigades will be disbanded over the next few years, but which ones has not been decided yet. By late 2017 the army expects to reduce personnel strength ten percent (to 490,000 troops from the current 547,000).

All this shrinking is due to the fact that the army is facing some hefty budget cuts (at least 5-10 percent over the next decade). Linked with growing costs (for equipment, supplies and wages) makes this cut even larger. For example, over the next decade, defense spending will decline from 3.6 percent to 2.8 percent of GDP. Several years ago the army did the math and concluded that it would have to cut manpower up to 80,000 by the end of the next decade, and reduce combat brigades to as few as 32 (from the current 45) and total strength of 490,000 troops. Without the cuts training would have to be cut to the point where the troops would be unprepared for combat. The recent announcement simply confirms the initial army estimates.

These cuts are nothing new, as army leaders have seen it coming for some time. Four years ago, despite major combat operations in Iraq and Afghanistan, the U.S. Army went through a major reorganization. The end result was the increase in the number of combat brigades from 33 to 48 (soon reduced to 45 because of budget cuts). This required the transfer of over 40,000 people from combat-support jobs to the combat brigades. In doing this, the army got some experience in reducing personnel strength without losing capability. Most of this reset was completed, with all the new brigades ready for service, by 2010.

April 4, 2013

Harper Conservatives actually love big government … but on the cheap

Filed under: Cancon, Economics, Government — Tags: , , , , , — Nicholas @ 12:49

Stephen Gordon points out that the “small government” rhetoric from Stephen Harper’s Conservatives is so much hot air:

If asked, the Conservatives will tell you that they favour a smaller government that intervenes sparingly in the functioning of the market, and it’s been pretty well-established that a medium- and long-term goal of the Conservative government has been to reduce the share of Canadian GDP that is taxed and spent by the federal government. But lower taxes and lower levels of spending are not the same thing as a smaller government.

Here are the highlights (sic) of the “Strengthening the Competitiveness of the Manufacturing Sector” section of Chapter 3.2 of the budget plan:

[. . .]

  • $920 million to renew the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) for five years, starting on April 1, 2014. Seriously? A slush fund economic development agency for Southern Ontario?
  • $200 million for a new Advanced Manufacturing Fund in Ontario for five years, starting on April 1, 2014, funded from the renewed FedDev Ontario. More pork to be distributed to firms that enjoy the favour of the government.
  • Building on the success of the National Shipbuilding Procurement Strategy, the Government will better ensure that purchases of military equipment create economic opportunities for Canadians by developing key domestic industrial capabilities to help guide procurement, by promoting export opportunities, and by reforming the current procurement process to improve outcomes. The Conservatives can’t even be bothered to sustain the fiction that government procurement should be aimed at obtaining the best value for the taxpayer. Public money is to be spent where politicians want to see public money being spent.

[. . .]

You don’t need a big government to interfere with markets, or to weaken property rights and the rule of law. The decision to forbid shareholders of Potash Corp from selling their holdings to BHP Billiton didn’t cost the federal government a dime. Nor did instructing banks to not offer lower mortgage rates. And then there’s the example of the government’s preference for the clumsy and heavy hand of regulation over more efficient, market-based approaches to reducing greenhouse gas emissions.

I don’t think it’s quite correct to say that the Conservatives want a smaller government. They seem happy to run a government that is as big and dumb as its predecessors — so long as it’s cheap.

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