Category: Economics

Canada, Economics, Law1 Comment

Mealy-mouthed Revisions of History

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A recent ruling by the Supreme Court of Canada (SCOC) may reveal why this country will never develop more significant economic prosperity domestically let alone in world trade. Global News reports of a decision over Section 121 of the Constitution. A New Brunswick resident had been fined for purchasing beer and spirits in Quebec which he was transporting to his home across Provincial boundaries into New Brunswick. Gerard Comeau was stopped by RCMP, issued a summons on behalf of the New Brunswick government and his purchases were confiscated. Mr. Comeau challenged the actions under Section 121 of the Constitution Act, … Continue reading Mealy-mouthed Revisions of History

Canada, Economics, Ethics, Law, News, Politics1 Comment

Anarchists For “Climate Change”

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If you’ve not heard, Kinder Morgan, a pipeline construction company has suspended all but “necessary expenditures” in the construction of a massive project involving an energy pipeline installation from Alberta through British Columbia to the Pacific coast. The company has taken this action in light of a major political dispute between the governments of the two provinces aforementioned. Briefly, Alberta wants the project to move forward with haste. The government depends on the energy loot from taxation and needs to be seen as addressing a high unemployment situation in the province. The government of British Columbia on the other hand … Continue reading Anarchists For “Climate Change”

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Shifting the Blame

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Prices of goods and services are going up, to the surprise of no one. The modern welfare state however, has the causal relationship completely backwards. In a typical report of this false revelation Statistics Canada points to rising fuel prices and the cost of restaurant meals as the principal cause of a spike in inflation. Actually, an increase in the general level of prices in an economy cannot occur without a concomitant increase in the supply of money and credit. A stable supply of money would see the decline of prices over time for most efficiently supplied goods and services … Continue reading Shifting the Blame

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“Spending” Fundamentals

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Canada’s Finance Minister, Bill Morneau, donned his new pair of designer shoes last Tuesday and delivered the government’s budget. For clarity it ought to be called the government’s spending plans, larded with lots of “feel good” spending initiatives that have nothing to do with practical finance or economics. To many of us the hoopla that surrounds the government’s budgeting process and the endless commentary that follows release of the budget itself is mind-boggling. Lawyers, accountants, journalists and various pundits on television are engaged in analyzing the government’s budget. It is easier to understand what’s going on if you identify and … Continue reading “Spending” Fundamentals

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Stamp Out Canada Post

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There is relatively little news coverage of the rotating strikes and lockouts involving Canada Post and the Canadian Union of Postal Workers (CUPW). It appears that because few Canadians care about it the major media provides only cursory reportage. Fatigue over the troubled labour history of the institution probably has much to do with the disinterest. Now might be a good time to wind up the Crown Corporation and make its assets available to the private sector in an orderly liquidation. In other words: stamp out Canada Post. Sympathy for Postal Workers Very little sympathy exists for postal workers paid … Continue reading Stamp Out Canada Post

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Inflation, Prices and Money

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Many economists continue to demonstrate their confusion about the subject of inflation. While ordinary people clearly feel the effects of monetary inflation in the form of higher prices for most goods and services, elite pundits labour under a misapprehension of the law of cause and effect. Most recently, economists are surprised by the fact that Canada’s rate of inflation for March 2011 was higher than expected. Of course, they are referring to the effects of monetary inflation: higher prices. Once again, they confuse and obscure cause and effect relationships. The Bank of Canada has now raised its inflation rate forecasts, … Continue reading Inflation, Prices and Money

Economics, Government, PoliticsLeave a comment

On Government and Other Looters

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On March 23 an opposition non-confidence motion was passed by a margin of 11 votes in the Canadian House of Commons. Parliament was subsequently dissolved and another Canadian election will be held on May 2. On April 4, US President Barack Obama announced his intention to seek re-election in November 2012. Meanwhile, gridlock in the US Congress over negotiations to cut government spending threatens shutdown of the US government. In June of last year, the New Flemish Alliance, a Dutch separatist party emerged as the largest following elections in Belgium. The various political parties could not form a governing coalition … Continue reading On Government and Other Looters

Economics, Political Economy1 Comment

Economic Alchemy: Spinning Death and Destruction into Gold

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Economist Paul Krugman, who writes a progressive political column for the New York Times sees some gold in the death and destruction in Japan. The rebuilding, he suggests, will be an economic boost. He admits it sounds like a “crazy” notion but points out that “…liquidity-trap economics is like that”. The observation is stupid on its face. Taken to its logical extension, if death and destruction have hidden economic benefits why not keep on destroying and rebuilding things? Only government elites and their advocates could come up with such cynically stupid ideas. The hidden costs, the things that could have … Continue reading Economic Alchemy: Spinning Death and Destruction into Gold

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The Paper Ceiling

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The economic bellwether to watch this year is the US “Statutory Debt Limit”. Also known as the “debt ceiling,” it represents the limit the government may borrow to continue funding operations. The present limit was set at $14.3 trillion on February 12, 2010. Congress is considering another increase to accommodate spending which could press against the ceiling by April or May. Given the reliability of government estimates this could happen sooner rather than later. Before 1917 Congress needed to specifically approve each debt issue. For efficiency, legislation was passed allowing debt to be issued funding government operations, provided total debt … Continue reading The Paper Ceiling

Economics, Government, PoliticsLeave a comment

Era of Big Government Not Over

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The question of whether Barack Obama would tack to the political center in Tuesday’s State of the Union address was answered resoundingly. Over the course of sixty-two minutes President Obama clarified that he remains a Big Government man. The mercantilist export, socialist education, corporatist industrial and Marxist taxation policies implicit in his remarks can be summed up as “statism”—that is, the state is the preferred means to achieve peace and prosperity. Burdened by an unsustainable debt load and the failure of interventionist policies, the obvious prescription is for fiscal restraint and political statesmanship. What do the American people get instead?—promises … Continue reading Era of Big Government Not Over