The horizon is not so far as we can see, but as far as we can imagine

Category: Canada

Falling Oil Prices Are Mostly Bad News

Yes, it’s nice to play less for gasoline and heating fuel, but while some of the decline in oil prices are a result of the new unconventional oil supplies which have come on line, much of it is that the world is going into recession—demand is down from every major economy.  That’s not good.

Yesterdays’ post showed what happened in the US job market over the last 6 years.  It never recovered for most people.  Remember, in terms of business cycle that was the recovery and the boom.  Those were the good times.

As for oil, the drops are to many conventional oil producers advantage if they can sweat them out. Much of the unconventional oil which came online is not viable below $80/barrel. The viability numbers you see for countries like Saudi Arabia are not their profit break even numbers, pumping Saudi oil costs less than $10 a barrel, rather they are what the Saudi government budget needs.  But the Saudis can handle a few years making less if it send their competitors into bankruptcy.

Remember that in the late 90s oil was under $20 a barrel.  I would want to see oil under $40 a barrel, with excess supply, to expect an economy as good as the late 90s one was.  Remember also that this is not the first time this “run a shitty economy until new sources of oil come on line” play has been tried—while the details were different, this is exactly what Carter, Reagan and the Fed of the late 70s and early 80s did. Temporize waiting for the new oil supply.

But while new oil did eventually come online, notice also that the economy never really got good ever again: you have about 4 good years in the late 90s and the rest is crap (again, for ordinary people.  The wealthy did very well).

Finally, those fools in places like Canada (my home and native land) who thought the good times would never end and that letting the mixed economy (aka. manufacturing) die, are about to reap the whirlwind.

All Commodity Booms End.  No exceptions.  Always.

Repeat that until it sinks in.

The old Canadian economy ran as follows: during times when commodity prices were high the Canadian dollar went up making our manufactured goods uncompetitive, but we used the money from selling commodities to subsidize manufacturing.  During times when commodity prices were low, the profits from manufacturing were used to subsidize the the resource producing areas of the country.

Harper, that feckless provincial incompetent and neo-liberal ideologue, has broken the Canadian mixed economy, which existed before him for over 100 years.  This is probably because he’s an economist, meaning he was indoctrinated to believe neo-liberal dogma.  Or perhaps he’s just a fool, hard to say.

The only Federal leader who understands the Canadian mixed economy is NDP leader Mulcair (Justin Trudeau, while has nice abs, is not very bright, unlike his father, who was a genius.)

It might not be too late to rebuild Canadian manufacturing during the oncoming recession.  My fellow Canadians, think carefully about who you vote for, especially those of you in Southern Ontario. Your housing values will not stay where they are if Canada’s entire economy is based on boom and bust commodity cycles and there are no jobs except in resource extraction, flipping burgers and finance.  Mulcair tried to warn you, years ago.

Learn.  Or reap the consequences.


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The Attack In Ottawa will be used to justify losing more rights

Prime Minister Harper pretty much confirmed it:

‘Our laws and police powers need to be strengthened’

Yup.  Never let a crisis go to waste. I’m very sad that MPs and their staff were scared, and I’m sadder that a soldier lost his life.  But one attack does not justify increasing the police state.  However, if Harper wants it done, it will be done, a Canadian Prime Minister with a majority might is very close to a dictator, and in practical terms only the Supreme Court can check him.

Freedom in the West, such as it was, was nice while it lasted.

Observations on Canadian NDP leader Mulcair and the politics of class

Last weekend, the federal New Democratic Party (NDP) elected a new leader: Thomas Mulcair, an MP from Quebec, who was a minister in the provincial Liberal government there, before he resigned rather than open a park for development.

Mulcair was the front runner, and his victory was hardly a surprise.  Many NDPers thought that he would move to the center and would abandon left-wing principles in pursuit of power, and a number of key members of the prior leader’s team have left.

I had my doubts, but Mulcair has gone a long way to assuage them in just a week.  First, this, in his first day in Parliament:

Speaking to reporters afterward, he laid out his concerns for the state of the Canadian economy and accused the federal government of neglecting workers as it promotes the extraction of natural resources, mainly in Western Canada.

“That’s driven up the value of the Canadian dollar, made it more difficult to export our own goods. We’re killing our manufacturing sector,” he said. “The way the Conservatives are acting has had a devastating impact on good jobs with pensions.”

There was a lot of whining from Alberta about this statement, but it’s just a fact.  The classic Canadian economy was a mixed one, which combined resource extraction and manufacturing.  When manufacturing does well, resources generally don’t.  When resources do, manufacturing doesn’t.  In the old model this was considered a strength, since it meant that part of the economy was doing well, no matter what resource prices were.  And when one sector was up, it was meant to subsidize the other sector.

Resource booms always end.  Every single one.  The oil boom will end, the question is when.  If Canada doesn’t have a manufacturing sector left when the boom ends, we will become a basket case South American country.  And Alberta will become the new Maritimes (remember, the Maritimes was originally a resource boom area.)

Politically speaking, this is also smart, because the NDP just isn’t going to get a lot of MPS out of Alberta in specific or the Prairies in general.  If attacking the tar sands, and calling for Canada to add value to resources before shipping them out of the country costs votes there, so be it.  The battleground is not Alberta.  Alberta went all in with the Conservatives, and they have to live with that.  There’s no point in pandering to Albertans, it would take a huge shift in voting to gain many more seats.

The places in play are the Maritimes and Ontario, and it is there that the election will be won or lost.  It is Ontario which has been losing its manufacturing due to the high dollar, and the Maritimes has been treated shoddily by the Conservatives as well.  So on both politics and economics Mulcair’s stance is a good one, which appeals to the regions where the NDP can make gains and pisses of people who would never vote NDP anyway.

Then there was this, yesterday, when the Tory austerity budget was unveiled:

“The Conservatives have caused the problem by gutting the fiscal capacity of the government,” Thomas Mulcair, the newly crowned NDP leader, said Wednesday.

“Now they’re saying, oh, gee whiz, no more fiscal capacity in the government, we know what we’ll do, we’ll start cutting the services of the government.”

Oh my, pointing out the obvious.  Conservative tax cuts and reckless spending caused the defict.  But tax cuts for rich people are sacrosanct, so old folks will have to wait till 67 to retire.

And this:

“Everything indicates the Conservative budget will be synonymous with cutbacks and job losses. A few months ago, the Prime Minister promised textually, in this House, that he would not touch pensions, would not cut health transfers to the provinces, would not touch services to the population?” Mr. Mulcair said. “Will the Prime Minister live up to his word, or will he break his promise?”

And then, Harper cut pensions and cut health transfer to the provinces.

Ouch.  That had to smart.

Yeah, I’m liking Mulcair.

One of the things which has distressed me most about the West is that no one on the left has really been willing to hammer the politics of class.  Mulcair, who has also hit inequality, shows some signs of doing so.  It is conventional wisdom that tax increases won’t fly, but the polling data doesn’t support that, at least not if you want to tax the rich and make that clear.  Heck, if even Globe and Mail readers (the primary business newspaper in Canada) want tax increases and more spending, I think we can conclude that it’ll fly (yes, I’m aware of the limitations of that particular poll).  But even the upper middle and lower upper class think that the true rich should pay their share.  Coming out of Quebec, which is somewhat insulated from the political culture of the rest of North America, Mulcair seems willing to play class politics, and seems to know how to do so.

So far, so good.  And as for the budget, Prime Minister Harper isn’t going to get the cuts he wants from the public service without causing great pain.  Nor is cutting other forms of spending going to help the economy.  Harper better get down on his knees and pray to God that there isn’t a major downturn in China, because he’s betting everything on resource prices.  If they crumble, the Canadian economy will go with them.  And so will Harper’s job.

This is opposition politics 101: whatever the government does, you oppose. If Harper’s bet on the resource economy works, then the Conservatives will get another term.  If it doesn’t, the NDP needs to be seen as the party which opposed his policies.  Mulcair is positioning them for that, and doing so in a way which allow him, if he gets in power, to put in place policies which will reward the constituencies he needs to win—everyone not attached to the oil teat.

RIP, Jack Layton, Federal New Democratic Party Leader

If you haven’t heard, Jack died of cancer.  I only saw him in person once, at a Toronto council meeting back when he was a city councilor, but he impressed me at the time as one of only three councilors who showed decent respect to the citizens giving testimony.  I didn’t know then, and don’t know now, if it was savvy politics, genuine feeling, or both, but it felt like both.

Following politics closely, as I have, I have contempt for the majority of politicians, a contempt most of them have earned.  Jack Layton is one of the few I respected.  This is not because the NDP is the party in Canada whose ideology most closely approximates mine, I’ve had cordial contempt for most of the NDP’s federal leaders during my lifetime, it’s because Jack seemed to combine ability with a genuine calling to help people.  He seemed to want to do the right thing, for the right reasons.  That’s rare enough in everyday life, it’s beyond rare amongst experienced politicians.

Losing Layton is a big blow.  It’s common to say things like “Canada is at a crossroads”, but this really is an era of crisis, and one where countries will be making choices which will determine how prosperous, free and equitable they are for generations.  The current Conservative government is making choices which will cripple Canada economically, destroying much of what was built over the course of the 19th and 20th centuries, making us into nothing more than a country which subsists on resources, a position which will leave us very subject to shocks, and as the Conservatives are implementing it, will make us more and more unequal.

The Liberals are not, unfortunately, a credible option.  They, as with most “centrist” parties in the world today, simply want to go to hell on the slow road.  Electing the NDP, then, is our only chance.  They might not do the right things, but they are the only party which would even consider doing the right things.  And Layton was a strong leader and one whom many Canadians genuinely liked.  The nickname “Smiling Jack” started out derisive, but it became a term of affection.

I hope the NDP will elect another strong leader, and one with genuine beliefs he or she intends to put into action if elected Prime Minister.  In the past the NDP has had a tendency to elect weak leaders who are aesthetically pleasing to the party’s constituents.  Neither Canada nor the NDP can afford to make the leader a statement, the leader must be a leader, and must be able to lead the party effectively, both in the next election and as Prime Minister.

If there is an afterlife, I’m sure Jack’s still smiling.  May he smile on all of us.  I don’t normally offer condolences to public figure’s loved ones, but as Olivia Chow was one of the other three councilors in that Toronto council meeting all those years ago who impressed me, I offer her my best wishes.

Jack will be missed.  But the best thing we can do in Jack’s memory is to continue his work, and make sure that the next government is NDP, and that once in government it does the right things.

RIP Jack.  The torch has fallen from your hands, but you led us farther than any of us would have dreamed. It’s up to us now.  You’d say it always was, and be right, but the world is genuinely better for you having lived.  There is no higher praise, and few of your generation of politicians can say the same.

P.S. Layton may be the only Canadian politician in my lifetime who could say something like “Love is better than anger, hope is better than fear”, and have me believe he meant it.  Because he actually lived his life that way and tried to help others live their lives that way.  Honestly, he’s the first public figure who has died in my life where I’m actually sad.

Conservatives Win Majority

And with a fairly decent margin.  The collapse of the Liberals in Ontario, and the choice of BC to go largely Conservative seem to have been the key. Looking closely at the results, I don’t think the robocalls were the deciding factor in enough ridings to have changed the overall result.  Hopefully the courts will show their independence and investigate this question aggressively, but with a majority government, Harper will be in a position to shut down such investigations and has show in the past that he has no qualms using such power.

Southern Ontario, outside the city cores, went hard Conservative, in most cases over 50% (call them Alberta South).  This continues the trend of Ontario suburbs thinking that the man who has presided over the destruction of Canadian manufacturing is going to save them by keeping their housing values high and driving Toronto into the ground, because suburbs don’t need healthy cities.  This bet on the part of Canadian suburbanites will work out as well for them as it has for American suburbanites.

Going forward this is probably good for the NDP.  Their job now is to be a good opposition, and to make the case that everything Harper does is wrong, destructive and will be rolled back by an NDP government.  As for the Liberals, job 1 is to ditch Ignatieff, job 2 is to make the case to Ontario that they are the party that can actually run government properly, and make the economy work again.  “You had it pretty good in the 90s, didn’t you?” should be their mantra.  Especially as it looks to me like Canada is about to go into recession, certainly it’s in danger of doing so.  Of course, Harper has 4 to 5 years to try and ride it out, but I’m going to say that now that he has full power, he will screw it up.  He’s that sort of guy.

For Canada?  Not so good.  But, under the rules as they exist (minus the robocalls), the Conservatives won.  Even if Harper did cheat (and I would be highly surprised if the Conservatives weren’t behind the robocalls), it’s highly unlikely that the Courts will call him to account, since he will be in a position to shut down police investigations.  Still, there is nothing he can do that can’t be undone by another majority government, and apparently Canadians need to learn what happens when you let someone like Harper have a majority.  That learning will be unpleasant, but I guess it’s necessary.  In particular for Ontarians, who have voted against their own self interest.  It’s one thing for the Prairies to vote for “loot now, worry about the hangover later”, it’s another for Ontario to vote “make Dutch disease permanent and destroy our industrial base.”

The Canadian Election

Canadian Flag by Joe Sullivan

Photo by Joe Sullivan

Ok, on to what actually matters, today’s Canadian election.  This is going to be a nail biter, and will almost certainly come down to BC.  Over the weekend the Liberals collapsed in Ontario.  Oddly that gives the Conservatives an outside chance at their majority, since it may actually mean that some Conservatives win who otherwise wouldn’t have been viable.  The Liberals are going to be squished back into their safe seats and nothing else.
However this goes, credit to the Quebecois for turning the election upside-down.  Their rush to the NDP, making them front runners in Quebec made everyone else take the NDP seriously.

In America the establishment does everything it can to make what you’re about to witness not happen, by making sure there is no one viable to vote for who is actually left wing.

In the meantime, I am comforted to know that no matter what happens, Michal Ignatieff, the torture apologizing putz who has led Canada’s ruling party to absolute disaster, will soon be out of a job.  The possible outcomes here are so variable, from coalitions to minority governments, to majority governments of either the left or the right that it’s hard to say much about what should be done after the election, till after the election.  I will only note that I hope the NDP has transition teams in place already, because the other parties are going to be waiting for them to stumble.

I doubt I’ll live blog the results, but feel free to use this post during the results countdown, and I may pop in to say a thing or two.  The places to watch are Ontario and BC.  Ontario because the extent of the collapse there means Ontario will determine the very outside possibility of a majority for the Cons or NDP, BC because that’s where it’s going to come down to.

Update: Note that it is illegal to report election results before the close of the last polls, which is 9:30 Pacific time.  This is a law I agree with, and I’m Canadian, so I won’t be posting results before then (and I may be asleep by then.)  Many people on Twitter have said they’ll break the law but I won’t be one of them.

Update 2: Automated phone calls are going out with false statements that residents polling stations have changed.  These calls are happening in Ontario and BC.  Could be Liberal, but I’m betting it’s Conservative as they’ve been big into voter suppression ever since elcted.  It’s a pity that doing this isn’t an offense with a life sentence.  I would suggest that if/when the NDP gets in, they make it so.  These sort of American tactics are not acceptable in Canadian elections.  I’d even consider making it a capital offense, and yes, I’ll be part of the firing squad.

Update 3: In violation of the elections Act, Stephen Harper asked for votes today.  The ridings where the false information is going out seem to be ridings where the Conservatives are in danger of losing the seat.  The Canada Elections Act gives the following as the penalties:

If a judge finds a person guilty of an offence, the person may receive a fine or a period of imprisonment, or both. Under section 501 of the Act, the Court may also impose additional penalties, such as:

  • performing community service
  • performing the obligation that gave rise to the offence
  • compensating for damages, or any other reasonable measure the Court considers appropriate
  • a fine of up to five times the election advertising expenses limit exceeded by a third party
  • with respect to certain offences, the deregistration of a party and liquidation of its assets, and the liquidation of the assets of the party’s registered associations
Deregistration of the party and liquidation of its assets seems appropriate if they’ve been doing the robocalls.  Otherwise I’d be happy to see Harper doing some community service.  Saying helping pick up trash, or clean out a sewer.  The man’s constant disrespect for the law is tiresome.
Update 4: CBC is projecting a Conservative majority.  If so, a moderate disaster, but so be it.  There’s nothing they do that the next government can’t undo, and starting tomorrow that should be Jack Layton’s constant promise.
Update 5: Ontario and BC were indeed the key, especially southern Ontario, which went hard Conservative.  This continues the trend of Ontario suburbs thinking that the man who has presided over the destruction of Canadian manufacturing is going to save them by keeping their housing values high and driving Toronto into the ground, because suburbs don’t need healthy cities.  This bet on the part of Canadian suburbanites will work out as well for them as it has for American suburbanites.

On the NDP Surge in Canada

So, amidst the standard gloomy news of austerity, autocratic elites who don’t give a damn about anything but themselves and populations who keep voting for the wrong people, some actual good news arises: the New Democratic Party (NDP) in Canada has surged into second place in the polls.

The NDP are the leftmost party in Canada with the exception of the Bloc Quebecois, the Quebec separatist party who runs candidates only in Quebec.  They are strongly union associated.  They have been the third party in federal politics basically forever.  Provincially they do run some provinces.  Their birthplace was the prairies, but in the last few decades they’ve been strongest in Canada’s Pacific coast province, British Columbia (BC), though that does fluctuate.  I’d argue that the NDP are BC’s natural ruling party and has been for about 30 to 40 years.  The other parties, to defeat them, have generally had to agree that only one of them seriously run against them.

The NDP is most famous for having created Canadian Medicare, provincially under Tommy Douglas, who many Canadians consider the greatest Canadian to have ever lived.  The Feds adopted the plan after he pushed it through at the provincial level.

The scourge of the NDP has been the perception that they can’t win Federally.  As a result, in most Federal elections vote switching has often cost them at least 5% of their vote, and I’d argue up to 10%.  Canadians would vote Liberal in an attempt to keep the Conservative party out.

As a result, parties that range from Center to Left (the Liberals, NDP and Bloc) have regularly pulled in about 60% of the vote, and yet the Conservatives have had minority governments for much of the last decade.  This is also due to the fact that, like the US system, ours is first past the post, winner take all.  Geographical concentration counts big, and the Conservative’s hard support in the prairies and Alberta in particular has translated well into seats.

So the NDP being second in the polls is a really good sign, because it means that core NDP voters now have no reason to switch, and Liberal voters whose first priority is making sure the Conservatives don’t get a majority government may switch to the NDP, instead of the other way around.

The NDP surge is particularly impressive in Quebec, where they are now clearly in the lead.  The Bloc Quebecois has collapsed.  Why this has happened, exactly, isn’t something I’m entirely clear on, Quebec politics are somewhat opaque to me, but I will note that it is particularly in Quebec’s interest to make sure that Harper (the Conservative leader) doesn’t get a majority.

You may have noticed the emphasis on “majority”.  In a parliamentary system like Canada’s, with extraordinarily strong party discipline, a prime minister with a majority is pretty close to an elected dictator.  If he wants to pass a law, it gets passed. If he wants to do something administratively, it happens.  God only wishes he had as much power as a Canadian Prime Minister.

Harper is run by energy interests from out West.  Essentially they want to pump oil and exploit the oil sands, and they want to keep all the money from their windfall profits.  Quebec’s economy, in export/import terms is also an energy economy.  Quebec, essentially, is a hydro-power farm for New York State.  That money allows Quebec to run their economy the way they want—lots of farm subsidies, lots of good food, a generally fairly relaxed lifestyle. Quebec isn’t France, but it’s as close as you get in North America.  It’s a pleasant place to live in many respects.

If Harper gets his majority, the energy interests he is beholden to may cast their eyes on getting control of Quebec’s energy.  That would be the end of Quebec’s pleasant little economy.  I doubt most Quebecois are explicitly aware of this, but I think they may feel it in their guts.

And other than in terms of independence, the NDP and BQ aren’t very far apart on policy. If anything the BQ is slightly to the left of the NDP. (In American terms, they’re practically communists, not that they are in reality.  But they definitely are socialists.)

There are other factors.  Ignatieff, the Liberal leader, is a sleazeball who apologized for torture.  Most Canadians don’t really care about the torture apologetics, but Ignatieff comes across as a sleazeball with no actual convictions.  So when the Liberals went on the offensive against the Conservatives, claiming Conservatives couldn’t be trusted with Medicare (which in Canada means universal single payer health care), I suspect that many Canadians thought “well, that’s true.  But I don’t think I can’t trust you with it either.”  On the other hand, the idea that the NDP would ever harm Medicare if in power is ludicrous.   Whatever one thinks of the NDP, even its detractors know that the NDP loves universal healthcare.

Jack Layton, the NDP leader, is someone I’ve always liked.  He used to be a Toronto city councilor.  Back in the early 2000’s I went and watched city council during budget deliberations.  As it happened, it was a session when ordinary citizens were giving depositions.  They were limited to 5 minutes each, and there were plenty of them.  In essence, many of them were begging for money to whatever they cared about to keep coming, or for tax changes, and so on.  It was obvious that for most of them, whatever their issue was, it was extraordinarily important.  I remember one guy, admittedly a bit of a crank, with 5 boxes of documents.

Most of the councilors clearly weren’t paying any attention.  They were talking amongst each other, laughing, walking in and out of the room, in some cases clearly mocking the people ostensibly speaking to them.  Now I get this, it was the end of a long day, and really, most of these people were asking for money they obviously weren’t going to get, or that they obviously were going to get.  The councilors had already made up their minds.

But the people giving depositions, they cared.  Some of them were desperate, all of them had put a lot of work into it.  Ignoring them, laughing while they talked, or even mocking them, was extraordinarily cruel and disrespectful.

There were only three councilors who at least appeared to be paying attention to what the citizens were saying.  They may not have been, they may have been off in space, but they at least had the common decency or basic political cops to pretend to give a shit.  Jack Layton was one of them, his wife, Olivia Chow (now a Federal MP as well, and my MP, as it happens) was another.  There was a third female councilor whose name I forget as well.  Every other one was a complete jackass, being cruel to desperate people who had put a lot of work into the speeches they were giving.

So ever since then I’ve had a soft spot for Jack Layton.  I don’t know if he’d make a good PM, but at least he isn’t an asshole to constituents in public.  And at least he showed he could handle the basic blocking and tackling.

So, what’s outcome of this election going to be?  Damned if I know.  The polls are all over the place.  The most likely outcome remains a Conservative minority government.  The second most likely outcome seems to be that the NDP and Liberals, together, get more seats than the Conservatives, in which case they could form a coalition government, probably with the NDP as the senior coalition member (at which point I will spend a few minutes rolling on the floor laughing hysterically.)

If the Conservatives get a minority government, odds are the NDP will be the official opposition party.  Layton will be a far more effective opposition leader than Ignatieff.  And Ignatieff’s days as Liberal leader will soon be over, the Liberals will turf him, as being third party is a complete and absolute disaster for them.  The Liberals and Conservatives have traded being the government of Canada back and forth for as long as Canada has existed.

If Layton does do a good job, he might be able to cement the NDP as the second party in Canada, and if he does that, eventually the NDP will be the government.  That’s a big deal, because the Liberals are essentially centrists.  They campaign slightly left, rule slightly right, and are certainly neo-liberal friendly.  I say this as someone who actually has a lot of respect for the government of Chretien and Paul Martin.  They did a good job overall and managed a period when Canada had to kiss America’s ass very well.  Chretien, in particular, is due a lot of credit for telling Bush to fuck off when Bush tried to coerce Canada into joining the Iraq war, as that took a lot of guts from a Canadian PM, and was clearly the right thing to do.

What does this mean for the rest of the world? Canada was one of the first nations to go to a right wing government.  Through the 2000’s there has been a wave of right wing governments in the West.  The NDP doing this well might be a sign that things are beginning to turn.  Again, the NDP aren’t the wimpy left, they are actually socialists, not a party like Labor in Britain, which is clearly right wing, just not as right wing as the nutbar Conservatives.

How good a government Layton would run I don’t know. I don’t have a good feel for the wonks behind him, or for how strong a leader he’d be.  Nonetheless I am confident that of the possibilities, he’s the best man for the job.  Ignatieff is a weasel, and no one who has apologized for torture should be in charge of anything, anywhere, while Harper is a conservative ideologue who thinks that Canada should be more like the US, as well as being an autocrat who spits over Canada’s democratic and parliamentary traditions.  The sooner he retires, the better.

The outcome is still uncertain.  Heck, it’s even possible the Liberals could come back into second place, or that the Conservatives could surge.  The polls are all over the place, as noted, and this has been a very volatile election.  Someone could put their foot in it.  But still, for the first time in a long time, I am actually seeing some hope for the future.  Canada, amongst countries in the world, is uniquely positioned to ride out the next couple decades.  We have everything we need to do really well, to be one of the most prosperous and free nations in the world.  But doing so requires a course change that will never happen under the Conservatives and is unlikely to happen under the Liberals.  The NDP are the best chance, not a sure thing, but a decent chance.  So here’s praying they keep surging.

More Details for those who care

Ontario.  The largest population province in Canada is Ontario, and the Conservatives are doing gangbusters here.  This really bad for the Liberals, whose heartland Ontario is.  One of the most depressing political results of the last year was in Toronto, where Rob Ford, a conservative whose first act was to tell the unions he was canceling their contracts, was elected on the strength of the suburbs deciding that they didn’t want to pay taxes to keep the goose that lays the golden eggs healthy.  Ontario, as with much of Canada, is in a mild housing bubble, a bubble which has been deliberately kept inflated by the Conservatives.  The actual cities (not the burbs) vote Liberal or NDP, but the suburbs have been going Conservative.  Southern Ontario’s employment has been devastated by the decline in the US auto industry, and the Conservatives have really done nothing about that, but what they have done is make sure housing prices stay high.  So people who, in essence, have nothing else, are voting for them.

Alberta: Ah, Alberta.  Think of Alberta as Canada’s Texas, except that Alberta still has lots of oil, even if most of it is in the form of the oil sands.  Alberta votes Conservative both out of old resentments against central Canada (somewhat justified, though the most legitimate complaints are getting to be decades old, and I say this as someone who grew up out West) and for cold hard cash reasons: exploiting the oil sands is brutally environmentally degrading, and the Albertans want to do it dirty so they make more money.  They also don’t want their windfall oil profits taxed, nor do they want to be forced to sell oil to other Canadians (ie. they don’t want a pipeline to Central Canada).  Since all of these policies make sense if you think of Canada first, and Alberta second (ie. if you’re looking out for all of Canada) and some of them make sense even if you think of Alberta first (the oil economy will end, and if they’ve fucked up their groundwater, Alberta will be in a world of hurt, plus they aren’t reinvesting properly),well, Alberta doesn’t want a leftish party in charge of Ottawa.  What should be done is windfall profit taxes on the oil, and policies which make it necessary to reinvest in Canada (and not in real estate.  It should be made very hard or impossible to invest these profits in real-estate.)

There’s still a ton of stupidity and greed in Canada.  The five big banks have never forgiven the Liberals for not letting them merge, there is a housing bubble, there is insufficient investment in our industrial base, which is collapsing, and no one is really thinking properly about the future. Even brain dead simple obvious things, like expanding Halifax’s harbor to make it into the major northern east coast container port or like making a pipeline from west to east for oil so that we can credibly threaten to withhold oil from the US when the US fucks with us, are not being done.   How much of even the brain dead obvious stuff Layton will do, I don’t know.  But I know there’s at least a chance with him, and no chance with Harper of Ignatieff.

Happy Canada Day

canadian-flagFor all its problems, this remains a good country to live in.  It’s beautiful, it’s big, and the social safety net, while showing some wear and tear, is still there.  As with most of the world, there’s been a right wing swing, but it’s been kept relatively in check by the simple fact that the majority of Canadians aren’t right wing.

The world is dividing into countries with trade surpluses and those without.  Canada tends to run a positive balance of trade and when we don’t, it isn’t hugely negative.  We have oil, water and still have plenty of arable land.  On the downside, we’re hugely overexposed to the US, but as long as the US still has seigniorage, this will remain an advantage, and when the US loses it, at least the Chinese will still need resources (and the North America auto industry is going away anyway.)

Canada’s also one of the most tolerant countries in the world with truly multi-ethnic cities which actually work.

There are going to be huge challenges going forward, many of them caused by the fact that our form of government tends to empower geographically clumped minorities (whether in Alberta or Quebec) and disempower groups which are more geographically widespread.  The US remains a significant threat which Canadians aren’t willing to face (when water and oil really start running out, anyone who thinks Americans won’t consider taking what they want is delusional) and the hollowing out of industrial capacity and the over-reliance on commodities is likewise an issue.

Nonetheless, all countries have problems, and overall, I’d rather have Canada’s than those of most other nations.

We’ll see how we handle them going forward.

In the meantime, happy Canada Day.

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