You are currently browsing the category archive for the ‘Economy’ category.

Well I’d like to change the channel from the Pandemic Gloom & Doom to the similarly depressing and helplessness inducing topic of climate change. The actors in feel similar in both channels, for instance, the vaccinated can only sit by and watch as the ignorant anti-vax crowd spreads Covid-19 to each other and fills the ICU wards past capacity. Concomitantly we can observe China and the US vie for world dominance economically and militarily while continuing to put stunning amounts of greenhouse gasses into the atmosphere, catastrophically heating the planet.

Micheal Klare sets out the bare-bones minimum guidelines to avert the upcoming climate catastrophe. Unfortunately said guidelines involve China and the US backing down from their military buildups, finding a peaceable solution to Taiwan, and focusing their economies on moving away from using fossil fuels.

Awesome. No problem. We got this…

“Only when China and the United States elevate the threat of climate change above their geopolitical rivalry will it be possible to envision action on a sufficient scale to avert the future incineration of this planet and the collapse of human civilization. This should hardly be an impossible political or intellectual stretch. On January 27th, in an Executive Order on Tackling the Climate Crisis, President Biden did, in fact, decree that “climate considerations shall be an essential element of United States foreign policy and national security.” That same day, Secretary of Defense Lloyd Austin issued a companion statement, saying that his “Department will immediately take appropriate policy actions to prioritize climate change considerations in our activities and risk assessments, to mitigate this driver of insecurity.” (At the moment, however, the thought that Republicans in Congress would support such positions, no less fund them, is beyond imagining.)

In any case, such comments have already been overshadowed by the Biden administration’s fixation on dominating China globally, as have any comparable impulses on the part of the Chinese leadership. Still, the understanding is there: climate change poses an overwhelming existential threat to both American and Chinese “security,” a reality that will only grow fiercer as greenhouse gases continue to pour into our atmosphere. To defend their respective homelands not against each other but against nature, both sides will increasingly be compelled to devote ever more funds and resources to flood protection, disaster relief, fire-fighting, seawall construction, infrastructure replacement, population resettlement, and other staggeringly expensive, climate-related undertakings. At some point, such costs will far exceed the amounts needed to fight a war between us.

Once this reckoning sinks in, perhaps U.S. and Chinese officials will begin forging an alliance aimed at defending their own countries and the world against the coming ravages of climate change. If John Kerry were to return to China and tell its leadership, “We are phasing out all our coal plants, working to eliminate our reliance on petroleum, and are prepared to negotiate a mutual reduction in Pacific naval and missile forces,” then he could also say to his Chinese counterparts, “You need to start phasing out your coal use now — and here’s how we think you can do it.”

Once such an agreement was achieved, Presidents Biden and Xi could turn to Prime Minister Narendra Modi of India, and say, “You must follow in our footsteps and eliminate your dependence on fossil fuels.” And then, the three together could tell the leaders of every other nation: “Do as we’re doing, and we’ll support you. Oppose us, and you’ll be cut off from the world economy and perish.”

That’s how to save this planet from a climate Armageddon. There really is no other way.

I think I’ve looked up and had explained to me what the term “inflation” is.  The concept has remained a bit of a mystery.  Mark Blyth the Scottish-American (Austerity – The History of a Dangerous Idea) economist parsed down the meaning of inflation to this – “too much money chasing not enough goods in an economy”.  I like that definition as it sticks easily in the mind.  However, without the necessary context, understanding what inflation is remains elusive.

Enter Yanis Varoufakis and his book “Talking to My Daughter About the Economy or, How Capitalism Works – and How it Fails”.  This short quote describes how inflation and deflationary pressures work in an economy – he tells a story based on a famous paper by R.A. Radford titled The Economic Organization of a P.O.W. camp (original linked here).

“The Exchange Value of Money

When I was your age I recall hearing a grown-up saying something I could not get my head around. I just did not get it, however hard I tried. Even when I thought I had understood it, I tried to explain it to a friend and realized that I hadn’t. What was it that this grown-up had said? That a one-thousand-drachma note (the currency we had then) cost only twenty drachmas to produce. How can it be worth a thousand dratchmas, I kept wondering, when it only cost twenty.

Maybe you are smarter than I was, but humour me nevertheless as I attempt to explain this puzzle in the context of Radford’s POW camp. Periodically, the Red Cross Would place a few more cigarettes in the prisoners’ packages but keep the quantity of chocolate, tea, and coffee the same. When extra cigarettes arrived, each cigarette now bought less coffee, less chocolate, and less tea.

Why?

Since overall a larger number of cigarettes now corresponded to the same amount coffee and tea, each individual cigarette corresponded to less coffee and less tea. The opposite also held true: the fewer cigarettes there were in comparison to the other goods that the Red Cross placed in the packages, the great the exchange value, or purchasing power, of each cigarette. In short, the purchasing power of a unit of currency has nothing to do with how much it costs to produce but, rather, its relative abundance or scarcity.

Imagine that a prisoner has been hoarding his cigarettes in order to make a large purchase when suddenly the Red Cross sends tons of cigarettes to the captives. Suddenly, the exchange value or his cigarettes drops, and his parsimony and abstinence have been to no avail.

In this way we see how having access to a currency lubricates transactions to no end, helping the economy move more commodities more quickly. On the other hand, for a currency to function it requires trust and faith: the trust that everyone will continue to accept it in return for any commodity, which is in turn based on faith that the currency’s exchange value will be maintained. It is no coincidence that in your second language, Greek, the word for “coin: (nomisma) straddles the verb “to think” (nomizo) and the noun for “law” (nomos). Indeed, what gives value to coins and paper money is the legal obligation to accept them across the realm and the belief that they are and will remain valuable.

One night Allied Bombers hammered the area where the camp was located. The bombs landed closer and closer, some falling in the camp itself. All night long the prisoners wondered whether they would live to see daybreak. The next day the exchange value of cigarettes had gone through the roof! Why? Because over the course of that endless night, surrounded by exploding bombs and consumed by anxiety, the prisoners had smoked cigarette after cigarette. In the morning the total number of cigarettes had shrunk dramatically in relation to the other goods. If previously five cigarettes had been needed to buy one chocolate bar, now only one cigarette was needed to buy that same bar.

In short, the bombardment had caused what is known as price deflation – a decrease in all prices as a result of a reduction of the quantity of money in relation to all other goods. The opposite, a genderal increase in prices as a larger quantity of money in the overall system, is known as price inflation.”

Talking to My Daughter About the Economy or, How Capitalism Works – and How It Fails. Yanis Varoufakis, pp 142 -144.

 

So, this is how I increased my knowledge of basic economic theory and what I think is a great heuristic tool if you happen to be trying to explain what inflation is and how it works in an economy.  I will need to reread both Blyth’s ( his writing is for the layperson but remains quite dense and meaty, a slow but rewarding go) and Varoufakis’s books again as both were invaluable to understand how our economy works.

 

The massive disparity between the social classes in the US make it difficult to find the equality as set down by their law, in their society.

“1. The United States, by the way, is fundamentally unjust. Even before the Trump Virus sparked a depression and corporate bailout that deepened inequality in the U.S., the three wealthiest Americans’ combined wealth already exceeded that of the nation’s bottom 50 percent. The top tenth of the upper U.S. One Percent already had a shared net worth greater than that of the nation’s bottom 90 percent and median Black household wealth amounted to 6 cents on the white median household dollar. The nation has long been riddled by massive, interrelated disparities of class, race, ethnicity, gender, and power that make an abject mockery of its claim to represent democracy and equality before the law. Exhaustive empirical research shows that progressive majority public opinion is close to irrelevant in the making of “public” policy, which consistently reflects the preferences of the wealthy Few and their giant corporations and financial institutions. You can learn all about this from mainstream researchers and journalists who never identify with “ideologies such as Marxism” or acknowledge that significant socioeconomic disparity and top-down class rule are inherent to the profits system.”

 

The US would do well to start to manage the current distribution of wealth.  A country that is run for the benefit of a small elite is a society that is doomed to fail.

 

 

A big shout out to those who will be starting and solidifying the next wave of the pandemic.

“Many B.C. restaurants and retailers already struggling to recover from the pandemic are now imploring the public to be patient with staff and respect the rules — after reports of customers behaving badly in response to COVID-19 safety protocols.

From verbal attacks to physical assaults, the backlash directed against employees is forcing some business owners to take extreme measures.

“It’s a death by a thousand cuts, it’s day after day,” restaurant owner Robert Stodola told Global News.

“This is stressful for every single person.”

Our society, to avoid the tailspin that the US is currently in, needs to adapt to a new normal.  The status quo is changing and the old expectations of ‘how things work’ must be discarded.

“Things literally reached a “breaking point” inside another restaurant in the Southern Interior city earlier this month, when one of the owners attempted to enforce a health order on a tour group that kept pushing their tables together.

“They threw their plate of food on the ground and actually assaulted the restaurateur,” said Pangilinan.

“That is completely unacceptable.”

Kamloops RCMP are investigating the July 4 incident at Mittz Kitchen, in which an owner was allegedly pushed over a table.”

Imagine that.  Thinking that you know better than the health authorities and the owner of the restaurant about how to behave within their private premise.  The people responsible for assaulting the owner and putting other people at risk should be prosecuted to the fullest extent of the law.

Given the evidence available, it is possible to not have society in complete lockdown for the remainder of the pandemic.  What it does require though is people to alter their expectations and adopt new behaviours that won’t cause a further spread of the virus.

See you all in the Xmas Lockdown.  :(

 

Source: globalnews.ca

 

Our dear government’s stalwart obsession with fossil fuel is again jeopardizing the economic well-being of the Province of Alberta.  Kenny is investing heavily in a project that may evaporate with the stroke of the Presidential pen.

The company said Alberta has agreed to invest approximately $1.1 billion US as equity in the project, which substantially covers planned construction costs through the end of 2020.

The remaining $6.9 billion US is expected to be funded through a combination of a $4.2-billion project-level credit facility to be fully guaranteed by the Alberta government and a $2.7-billion investment by TC Energy.

“TC Energy is essentially saying, ‘We don’t want to take that risk’ … Alberta is essentially saying, ‘OK, we’ll take that risk, we’ll put in $1.5 billion Canadian, and if it ends up that no one pulls the presidential permit, then we’re all going to work on getting the rest built over 2021 and ’22.”‘

We need jobs, we need economic advancement, but most importantly, we need to stop running hail-Mary plays based on the fossil fuel industry with public money.  The government of Alberta should represent all of its constituents and refocus on diversifying our economic contribution instead of playing this dreadfully expensive and foolish shell game with Alberta’s future.

Our tarsands oil just isn’t environmentally or economically sound anymore.

“He said what’s also worrisome for the industry is the political signal this sends internationally — especially on the heels of a major Norwegian investment fund blacklisting four Canadian oilsands producers.

“In terms of the bellwether of the political appetite for support for the oilsands south of the border, I think it’s obviously problematic,” Johnston said.”

I sincerely hope that we can elect the NDP as our government again in Alberta, as their dirty oil plan focused much more on economic diversification and benefits for the people of Alberta.  The Federal government of Canada is standing lukewarmly with Alberta for the moment, but with a Democratic win down south it looks like the Keystone pipeline will go back into limbo once again.

“Biden strongly opposed the Keystone pipeline in the last administration, stood alongside President Obama and Secretary [of State John] Kerry to reject it in 2015, and will proudly stand in the Roosevelt Room [of the White House] again as president and stop it for good by rescinding the Keystone XL pipeline permit.”

A spokesperson for Canada’s deputy prime minister, Chrystia Freeland, responded by saying the Canadian government supports Keystone XL: “It is a good project that will create jobs for Canadians and it fits within our climate plan.”

Fossil fuels need to pave the way to Alberta’s new economic future, maintaining them and the industries that sway our government, cannot be the way.

Quoted news stores from cbc.ca.

The Pandemic is debunking cherished capitalism mythos one weary chestnut at time.

Counterpunch columnist Rob Urie tackles some of the political consequences of the neoliberal choices we have made as a society.

 

“The question of bailouts is fundamentally different from that of taking care of people. An adequate response to the pandemic will require years of dedicated effort, not tossing a trillion dollars at ‘the economy’ and hoping for the best. Social distancing and quarantines might require income and material support for tens of millions of people for as long as eighteen months. Nancy Pelosi is reportedly already balking at spending government money to do what is necessary. It would be a benefit to workers if she forced her corporate sponsors to provide paid time off for their employees, but she won’t do this.

The economic fragility behind the rapid descent into economic crisis isn’t a product of nature. It was purposely created by the bi-partisan political establishment at the behest of oligarchs and academic economists. NAFTA was meant to make workers economically insecure. Welfare ‘reform’ was passed to make life outside of capitalist employment intolerably tenuous. The minimum wage hasn’t been a living wage for forty years. And plans to cut Social Security and Medicare are meant to increase economic fragility. Likewise, austerity is the enforcement mechanism to keep the rich in control of American political economy.

This combination of manufactured social fragility and neoliberal governance will sooner or later produce a political rupture. The election of Donald Trump was the first act of one. An extended economic crisis can produce social solidarity or a deeply ugly political response. The Democrats’ choice to stick with their neoliberal program means that they are indifferent between electing Joe Biden and a second term for Donald Trump. Add the widespread unemployment that is already baked into their reflexive austerity and a more perfect formula for fascist ascendance is difficult to imagine.”

This Blog best viewed with Ad-Block and Firefox!

What is ad block? It is an application that, at your discretion blocks out advertising so you can browse the internet for content as opposed to ads. If you do not have it, get it here so you can enjoy my blog without the insidious advertising.

Like Privacy?

Change your Browser to Duck Duck Go.

Enter your email address to follow this blog and receive notifications of new posts by email.

Join 2,077 other followers

Progressive Bloggers

Categories

October 2021
M T W T F S S
 123
45678910
11121314151617
18192021222324
25262728293031

Archives

Blogs I Follow

The DWR Community

aunt polly's rants

A fine WordPress.com site

silverapplequeen

herstory. poetry. recipes. rants.

Paul S. Graham

Communications, politics, peace and justice

Debbie Hayton

Transgender Teacher and Journalist

Whirlwind of Scrap Paper - A Blog

Wittering about books and current affairs. Posting Wednesday and Friday.

shakemyheadhollow

Conceptual spaces: politics, philosophy, art, literature, religion, cultural history

Our Better Natures

Loving, Growing, Being

Lyra

A topnotch WordPress.com site

I Won't Take It

Life After an Emotionally Abusive Relationship

VictimFocus Blog

Exploring best practice and research in sexual violence. A loud voice in the fight against victim blaming. Written and Managed by Psychologist and Best Selling Author Dr Jessica Taylor

Unpolished XX

No product, no face paint. I am enough.

Volunteer petunia

Observations and analysis on survival, love and struggle

femlab

the feminist exhibition space at the university of alberta

Raising Orlando

About gender, identity, parenting and containing multitudes

REAL for women

Reflecting Equality in Australian Legislation for women

The Feminist Kitanu

Spreading the dangerous disease of radical feminism

Double Plus Good

The Evolution Will Not BeTelevised

la scapigliata

writer, doctor, wearer of many hats

Teach The Change

Teaching Artist/ Progressive Educator

Female Personhood

Identifying as female since the dawn of time.

Radfem Resources | Radical Feminist Literature

A virtual library for those interested in radical feminist literature and resources.

Not The News in Briefs

A blog by Helen Saxby

SOLIDARITY WITH HELEN STEEL

A blog in support of Helen Steel

thenationalsentinel.wordpress.com/

Where media credibility has been reborn.

BigBooButch

Memoirs of a Butch Lesbian

RadFemSpiraling

Radical Feminism Discourse

a sledge and crowbar

deconstructing identity and culture

The Radical Pen

Fighting For Female Liberation from Patriarchy

Emma

Politics, things that make you think, and recreational breaks

Easilyriled's Blog

cranky. joyful. radical. funny. feminist.

Nordic Model Now!

Movement for the Abolition of Prostitution

The WordPress C(h)ronicle

These are the best links shared by people working with WordPress

HANDS ACROSS THE AISLE

Gender is the Problem, Not the Solution

fmnst

Peak Trans and other feminist topics

There Are So Many Things Wrong With This

if you don't like the news, make some of your own

Gentle Curiosity

Musing over important things. More questions than answers.

violetwisp

short commentaries, pretty pictures and strong opinions

Revive the Second Wave

gender-critical sex-negative intersectional radical feminism

%d bloggers like this: