So, Prince Justin is planning to push through some bold non changes?
So says Toronto Star today, at https://www.thestar.com/politics/federal/2020/08/08/insiders-say-justin-trudeau-doesnt-want-an-election-he-wants-to-remake-canada.html?source=newsletter&utm_content=a01&utm_source=ts_nl&utm_medium=email&utm_email=CF7081A7105AD1558A6D9757E0DB38D5&utm_campaign=tmh_28568
I should do a short blog about this.
One of the uglier notions of the present day elite is the idea that the best way to change something is to wait for a crisis and use that to ram it through. On some occasions they have induced crises in order to push things through. This is of course antithetical to the concept of democracy, as well as that of evidence based and consensual decision making.
Apparently Justin’s big idea is a “21st century EI system”. That is something like an improved, 21st century steam engine. Employment insurance is an idea that came out of the 1930s depression.
If an adjustment to EI is what is contemplated as an answer to the age of employment instability coming on us, then that is bad news for the advocates of a Negative Income Tax. Advocates for a true Basic Income, a demogrant, a flat monthly payment, should be fairly ambivalent about it. The only real difference between a bare maintenance income from EI as opposed to a NIT would be that the funding comes out of the payrolls instead of from the income tax.
Either way, it is garbage. It is the working poor being made to pay for the non working poor, setting the two underclasses against each other. The Liberals are like any other elite in that they love to keep their unters divided and hating each other.
We do not get any alternative from the opposition parties. Green-orange-bleu would lean more toward NIT but they will never influence policy under this system, minority or not. The noise from the conservatives is predictable; free money to create a lot of useless but lucrative energy projects. No money for human needs.
The Liberals will sail on, brushing off scandals with their usual air of entitlement. Oops, sorry about that. Move on.
The only thing that will shake all this up is a crunch. The famous definitions of crisis and crunch are that a crisis is not wholly predictable but the system can make adjustments and continue. A crunch is totally predictable and results from an inability to make systemic change before the system collapses.
We have a crunch coming and it is not just because of covid19, though it is an accelerant. The USA is going into a severe recession due to collapse of demand and this will effect Canada. But in the next year or two Uncle Sam will be unable to raise money for his war machine, with huge implications.
Canada’s options for dealing with this crunch are fairly obvious, though of course impossible to implement as yet. They will involve a sharp rise in government revenues, specifically a tax on wealth, which can then be put back into the economy.
The wealth tax bit is critical if any attempt to refloat the economy is not going to just get sucked up by the wealth suckers and used to further jack up real estate prices. Or, sent off to the tax havens and money laundering emporiums. Watch for a lot of floundering around as the Liberals try a lot of short term relief measures to try to relieve the effects of the crunch on social stability.
What is most worrisome in this Star piece is that our plugged in Establishment Ottawa columnist is talking about historically low interest rates facilitating solutions. Solutions for exactly none of the problems she cites involve the government borrowing anything. As I said, the solutions would be funded by a rapid enhancement of government revenues, with some careful application of the government’s power to issue new currency.
The ultimate calamity would be if Canada started imitating Uncle Sam and “printing money”. I think, I hope, that the Canadian ruling class is at least smarter than that.
Crisis is loved by manipulative elites but crunch gets too intense for them. Crisis is not really a good time to implement serious systemic change. Crunch is a terrible time to do so. Much better to get things sorted out before crunch time. However, we do not have a political system that deals very well with crisis and seems absolutely unable to deal with looming crunch.
This dysfunctional system is what is really going to have to be patched up on the fly, rather than with some care.
So look out; a flurry of improvised and patch up solutions, which will not work, is coming as the turbulent twenties roll out.