THE
NEOLIBERALIZATION AND GLOBALIZATION OF CANADA
NEOLIBERALIZATION AND GLOBALIZATION OF CANADA
Janet
Hudgins
Hudgins
19
Aug 2014
Aug 2014
Globalization
is really a code name for corporatization. It’s an attempt by the largest
corporations in the world, and the largest banks in the world, to re-engineer
the world in such a way that they won’t have to pay decent wages to their
employees, and they won’t have to pay taxes to fix potholes and to maintain
parks, and to pay pensions to the old and handicapped.
is really a code name for corporatization. It’s an attempt by the largest
corporations in the world, and the largest banks in the world, to re-engineer
the world in such a way that they won’t have to pay decent wages to their
employees, and they won’t have to pay taxes to fix potholes and to maintain
parks, and to pay pensions to the old and handicapped.
Globalization or neoliberalism is
now so pervasive in boardrooms and cabinets that it is now the hegemony of
political-economic thought and practice in
27 countries, including Canada.
now so pervasive in boardrooms and cabinets that it is now the hegemony of
political-economic thought and practice in
27 countries, including Canada.
The change was never announced to
Canadians in so many words, nothing that would indicate purging the welfare
state and anointing neoliberalism. It’s been gradual and insidious over 40
years until now we have massive inequality with job loss and skewed
tax levies across the board.[2]
And, we just let it happen.
Canadians in so many words, nothing that would indicate purging the welfare
state and anointing neoliberalism. It’s been gradual and insidious over 40
years until now we have massive inequality with job loss and skewed
tax levies across the board.[2]
And, we just let it happen.
What is globalization or neoliberalism?
Briefly, it is complete freedom for capitalism, free of the state to be
self-regulating, and free of unions. It drastically reduces and completely
removes funding for social services, essential services, health and education,
and unloads public assets to the private sector to capitalize them. As well, its
mandate is to realign the concept of public and community to individuality and
individual responsibility. In other words, we are cut loose; the state will
take no responsibility for society, for taxpayers.
Briefly, it is complete freedom for capitalism, free of the state to be
self-regulating, and free of unions. It drastically reduces and completely
removes funding for social services, essential services, health and education,
and unloads public assets to the private sector to capitalize them. As well, its
mandate is to realign the concept of public and community to individuality and
individual responsibility. In other words, we are cut loose; the state will
take no responsibility for society, for taxpayers.
Privatization is well under way
all through our social services. University tuition increased by 28%
just between 2000 and 2007 and presidents have been forced to chase CEOs for funds in
exchange for curriculum influence and a name on the door. Teachers are out on
strike and parents are trying to enrol their children in private schools for
thousands of dollars. The mentally ill have been unceremoniously
dumped in the lap of the police and prison wardens as if this were a purview of
criminal law, and psychiatry were entrenched in the constabulary boot camp. In
Canadian-speak, a government not willing to take care of its youth and the ill,
is not worthy of the name.
all through our social services. University tuition increased by 28%
just between 2000 and 2007 and presidents have been forced to chase CEOs for funds in
exchange for curriculum influence and a name on the door. Teachers are out on
strike and parents are trying to enrol their children in private schools for
thousands of dollars. The mentally ill have been unceremoniously
dumped in the lap of the police and prison wardens as if this were a purview of
criminal law, and psychiatry were entrenched in the constabulary boot camp. In
Canadian-speak, a government not willing to take care of its youth and the ill,
is not worthy of the name.
Unfettered ownership of private
property is a hallmark of globalization so the price of real estate has
skyrocketed unchecked, the entitlement to own property a pipe dream. Overpriced
conservatively by 20%, a modest
house that cost $102,000 in 1984 would be $357,000 today. In
Vancouver, at least 20,000
housing units are
offshore-investor owned, 25
percent of condominiums are vacant or used part of the year. Ironically,
this is a source of revenue for the government.
property is a hallmark of globalization so the price of real estate has
skyrocketed unchecked, the entitlement to own property a pipe dream. Overpriced
conservatively by 20%, a modest
house that cost $102,000 in 1984 would be $357,000 today. In
Vancouver, at least 20,000
housing units are
offshore-investor owned, 25
percent of condominiums are vacant or used part of the year. Ironically,
this is a source of revenue for the government.
Any
person purchasing Canadian real estate from a non-resident has an obligation to
withhold and remit to Canada Revenue Agency (“CRA”) 25% of the gross sale
proceeds with respect to the purchase. This liability increases to 50% where the
real estate was depreciable property (a building used for rental or business
purposes) or where the real estate was not held by the non-resident as capital
property (for example, held for speculative purposes). http://www.taxspecialistgroup.ca/public/taxPerspectives.asp?art=126
person purchasing Canadian real estate from a non-resident has an obligation to
withhold and remit to Canada Revenue Agency (“CRA”) 25% of the gross sale
proceeds with respect to the purchase. This liability increases to 50% where the
real estate was depreciable property (a building used for rental or business
purposes) or where the real estate was not held by the non-resident as capital
property (for example, held for speculative purposes). http://www.taxspecialistgroup.ca/public/taxPerspectives.asp?art=126
But, the most outstanding success of neoliberalism is massive
inequality.
inequality.
Inequality
has skyrocketed … since the mid 1970s. Real wages have stagnated, while the
share of income going to the top tenth of one percent has quintupled since
1973.[3]
has skyrocketed … since the mid 1970s. Real wages have stagnated, while the
share of income going to the top tenth of one percent has quintupled since
1973.[3]
Of course, the promise
of growth and prosperity for everyone has not happened. Indeed,
rates have fallen and unemployment has risen for the last 30 years as taxes on
the rich and corporations were reduced, (the Harper government’s mantra is to
cut still more taxes), spending power by governments and the poor have inevitably
fallen. Low wages and job loss are forcing people to borrow, feeding the
lending institutions and credit card companies with outrageous interest. As
well, the explicit agreement between state and business: with the reduction of
taxes much more speculation will come, has never materialized. Corporations are
sitting on $626,000,000,000
in dead money, have been for years, never expanding or
starting or employing. Instead, growth is stagnant. This is not based on any economic
principle, just raw greed and power.
of growth and prosperity for everyone has not happened. Indeed,
rates have fallen and unemployment has risen for the last 30 years as taxes on
the rich and corporations were reduced, (the Harper government’s mantra is to
cut still more taxes), spending power by governments and the poor have inevitably
fallen. Low wages and job loss are forcing people to borrow, feeding the
lending institutions and credit card companies with outrageous interest. As
well, the explicit agreement between state and business: with the reduction of
taxes much more speculation will come, has never materialized. Corporations are
sitting on $626,000,000,000
in dead money, have been for years, never expanding or
starting or employing. Instead, growth is stagnant. This is not based on any economic
principle, just raw greed and power.
The Canadian standard of living
began to change radically in the 1980s when manufacturing was traded to Mexico
with the North American Free Trade Agreement (NAFTA). It was purposely designed
to impoverish on both ends. Canadians
lost manufacturing jobs: 464,000 between 2000 and 2011 alone, and Mexicans
were short paid. No unions, no recourse.
began to change radically in the 1980s when manufacturing was traded to Mexico
with the North American Free Trade Agreement (NAFTA). It was purposely designed
to impoverish on both ends. Canadians
lost manufacturing jobs: 464,000 between 2000 and 2011 alone, and Mexicans
were short paid. No unions, no recourse.
On
the 10-year anniversary of NAFTA, the Washington Post reported, “19 million
more Mexicans are living in poverty than 20 years ago, according to the Mexican
government and international organizations. About 24 million–nearly one in
every four Mexicans–are classified as extremely poor and unable to afford
adequate food.… Today, over half of the Mexican population, and over 60 percent
of the rural population, still fall below the poverty line, despite the
promises made by NAFTA’s proponents.[4]
the 10-year anniversary of NAFTA, the Washington Post reported, “19 million
more Mexicans are living in poverty than 20 years ago, according to the Mexican
government and international organizations. About 24 million–nearly one in
every four Mexicans–are classified as extremely poor and unable to afford
adequate food.… Today, over half of the Mexican population, and over 60 percent
of the rural population, still fall below the poverty line, despite the
promises made by NAFTA’s proponents.[4]
Poverty
in Canada has been rising steadily since NAFTA. Current numbers state that
over 13 percent of Canadian children living in poverty resulting in health care
costing $7.6 billion a year; 30,000 people are homeless; 15 percent are the
working-poor. Between 2000 and 2009 manufacturing
jobs fell from 16 per cent of total employment to 10 per cent; of 17,800
jobs, 14,000
were in the service sector while goods production dropped to 3.8k. The
latest employment figures are not an improvement with a loss of 18,000 full
time jobs and 60,000 of those precarious placements; net 42,000.
in Canada has been rising steadily since NAFTA. Current numbers state that
over 13 percent of Canadian children living in poverty resulting in health care
costing $7.6 billion a year; 30,000 people are homeless; 15 percent are the
working-poor. Between 2000 and 2009 manufacturing
jobs fell from 16 per cent of total employment to 10 per cent; of 17,800
jobs, 14,000
were in the service sector while goods production dropped to 3.8k. The
latest employment figures are not an improvement with a loss of 18,000 full
time jobs and 60,000 of those precarious placements; net 42,000.
Regressive means, devalued man-hours and the class system
take us back generations, before building a country from a colonial appendage
beholden to England to a solid liberal democracy with progressive values in the
interest of its people. But, the Welfare State only lasted for about a
generation before the shift began, the gatekeepers making changes so covertly
we hardly noticed.
take us back generations, before building a country from a colonial appendage
beholden to England to a solid liberal democracy with progressive values in the
interest of its people. But, the Welfare State only lasted for about a
generation before the shift began, the gatekeepers making changes so covertly
we hardly noticed.
The Conservative government took over a surplus of $13.8 billion in 2006, (not that the previous government was any less
capitalistic), then put us in debt to bail out the financial and automobile
industries when the former forced the international economy to bottom out in
2008: banks (all 5)--$114 billion(8), automakers $14.6 billion(29). No one recovered their
home or their job, but were fed the chronic austerity rhetoric. The federal
government debt was $602 billion (2013) plus a $25.9 billion deficit (2013-14). The collective
direct debt for the country is $1.2 trillion. As well, we paid $28.2 billion in interest in 2011, and $783.5 billion
over the last 20 years. We are paying massive interest because the administration
stopped borrowing from ourselves 40 years ago, otherwise
we would not be paying interest at all.
capitalistic), then put us in debt to bail out the financial and automobile
industries when the former forced the international economy to bottom out in
2008: banks (all 5)--$114 billion(8), automakers $14.6 billion(29). No one recovered their
home or their job, but were fed the chronic austerity rhetoric. The federal
government debt was $602 billion (2013) plus a $25.9 billion deficit (2013-14). The collective
direct debt for the country is $1.2 trillion. As well, we paid $28.2 billion in interest in 2011, and $783.5 billion
over the last 20 years. We are paying massive interest because the administration
stopped borrowing from ourselves 40 years ago, otherwise
we would not be paying interest at all.
The upshot of the 2008 recession
came in the form of ‘disciplinary
democracy’[5] that threatens punishment to the lower classes for dissent. The
unrivalled policing and surveillance of the state restricts popular democracy
and the protest movement. “Structural
adjustment” codifies the demands of neoliberal policy to privatize, cut
funds, and install a system of “permanent
austerity” to shore up the world market for the elite. To this end work
patterns have changed from the nine-to-five forty hour week to contracts,
shifts, part-time, nights and weekends around the clock, and huge pressure to
turn out more in less time; to financialize and commodify the workers. These
changes came from dictums between governments such as the G8/G20 accompanied by
the phrase, “there is no alternative.”[6]
No Canadian Conservative politician has ever stated any of this or mentioned the
words: neoliberalism, globalization, or privatization in front of a microphone.
came in the form of ‘disciplinary
democracy’[5] that threatens punishment to the lower classes for dissent. The
unrivalled policing and surveillance of the state restricts popular democracy
and the protest movement. “Structural
adjustment” codifies the demands of neoliberal policy to privatize, cut
funds, and install a system of “permanent
austerity” to shore up the world market for the elite. To this end work
patterns have changed from the nine-to-five forty hour week to contracts,
shifts, part-time, nights and weekends around the clock, and huge pressure to
turn out more in less time; to financialize and commodify the workers. These
changes came from dictums between governments such as the G8/G20 accompanied by
the phrase, “there is no alternative.”[6]
No Canadian Conservative politician has ever stated any of this or mentioned the
words: neoliberalism, globalization, or privatization in front of a microphone.
Consider the effect on other
countries where “restructuring” has taken place. In
Chile, with the coercion of the United States and Henry Kissenger, public
assets were privatized; natural resources were opened up to private and foreign
investors; all leftist social movements and health centres for the impoverished
were dismantled; imports took the place of home manufacturers and there was
extreme military spending. The elite and foreign investors did well, while the
middle and lower classes fared badly.[7]
The poverty rate rose to nearly 40 percent by 1990.
countries where “restructuring” has taken place. In
Chile, with the coercion of the United States and Henry Kissenger, public
assets were privatized; natural resources were opened up to private and foreign
investors; all leftist social movements and health centres for the impoverished
were dismantled; imports took the place of home manufacturers and there was
extreme military spending. The elite and foreign investors did well, while the
middle and lower classes fared badly.[7]
The poverty rate rose to nearly 40 percent by 1990.
In Africa, restructuring cost
$612 billion in debt service more than they received in loans. The transfer of
these funds went from the South to Northern banks in exchange for the IMF to
take power, impose economic policies and end social subsidies. Maternal and
infant mortality rose with neoliberalism as well as a decline in income, an
increase in unemployment and lowered, sometimes negative, growth rates.[8]
These are the people who are living on $2 a day.
$612 billion in debt service more than they received in loans. The transfer of
these funds went from the South to Northern banks in exchange for the IMF to
take power, impose economic policies and end social subsidies. Maternal and
infant mortality rose with neoliberalism as well as a decline in income, an
increase in unemployment and lowered, sometimes negative, growth rates.[8]
These are the people who are living on $2 a day.
Bricker and Ibbitson, (The Big Shift), say the West has
won, it’s over for Canadian progressives, and the country is probably more
divided now than ever before. Some democracies may even want to resolve the
crises of inequality because, of course, voters are not in favour of it. But Harper
couldn’t fight the elephant in the room supposing he could be persuaded to.
Once free markets were unleashed and all oversight removed the corporate sector
took power from, and control of, the regime. The relationship between business
and governments has become incestuous. Canada now has an estimated $20 - $32
trillion in unreported
wealth in tax havens. The government is paying lip service
to mollify taxpayers but making no genuine effort to collect. And
essential services are so starved for funding that the private sector is just
waiting for the moment it can take complete control.
won, it’s over for Canadian progressives, and the country is probably more
divided now than ever before. Some democracies may even want to resolve the
crises of inequality because, of course, voters are not in favour of it. But Harper
couldn’t fight the elephant in the room supposing he could be persuaded to.
Once free markets were unleashed and all oversight removed the corporate sector
took power from, and control of, the regime. The relationship between business
and governments has become incestuous. Canada now has an estimated $20 - $32
trillion in unreported
wealth in tax havens. The government is paying lip service
to mollify taxpayers but making no genuine effort to collect. And
essential services are so starved for funding that the private sector is just
waiting for the moment it can take complete control.
It’s like waiting for the final
stages of cancer to set in to address the illness. And the cost! There are 380,600
youth unemployed, nearly 14 percent of the workforce, and of those 1.4 million are
unemployed. The majority of
those who are employed are in part time, “precarious” (temporary,
badly paid) work but one of these jobs will not
pay the rent, (1/4 of Canadians are spending up to 63% of income on
housing). Defunded services are leaving the masses to find a way to cope with
increased costs of essential social services while the well to do and
corporations pay accountants and lawyers handsomely to finesse the tax system. These
things are anathema to Canadians who have raised their kids in a culture of
equality, stability and balance.
stages of cancer to set in to address the illness. And the cost! There are 380,600
youth unemployed, nearly 14 percent of the workforce, and of those 1.4 million are
unemployed. The majority of
those who are employed are in part time, “precarious” (temporary,
badly paid) work but one of these jobs will not
pay the rent, (1/4 of Canadians are spending up to 63% of income on
housing). Defunded services are leaving the masses to find a way to cope with
increased costs of essential social services while the well to do and
corporations pay accountants and lawyers handsomely to finesse the tax system. These
things are anathema to Canadians who have raised their kids in a culture of
equality, stability and balance.
Since the 1970s, corporations
have been using desperate women for cheap labour in the Free Production Zones
(FPZs,) or “maquiladoras” to make clothes and electronics. “The FPZs lie in
areas where century-old colonial-capitalist and authoritarian-patriarchal
conditions guarantee the availability of the cheap
labor needed.” But there is a new, ominous shift,
from sneakers and computer chips, to armaments.
have been using desperate women for cheap labour in the Free Production Zones
(FPZs,) or “maquiladoras” to make clothes and electronics. “The FPZs lie in
areas where century-old colonial-capitalist and authoritarian-patriarchal
conditions guarantee the availability of the cheap
labor needed.” But there is a new, ominous shift,
from sneakers and computer chips, to armaments.
Globalization is devastating
the economies of all the countries where the doctrine has been instituted. The old,
imperial class system has been reintroduced and we have a huge division between
them. Secret trade deals are pulling the rug out from under the working
class without consultation or notice. Their jobs are tendered when production
is exported to countries that sanction inhumane, underpaid labour in appalling
and dangerous factories with no regulations and no unions, colonized to make
cheap items sent back to consumers who are either too poor to buy quality or people
who just relish the concept of the cheapest of the cheap provided by the
poorest of the poor. The outcome is workers on both ends of the deal deliberately
impoverished by their respective governments.
the economies of all the countries where the doctrine has been instituted. The old,
imperial class system has been reintroduced and we have a huge division between
them. Secret trade deals are pulling the rug out from under the working
class without consultation or notice. Their jobs are tendered when production
is exported to countries that sanction inhumane, underpaid labour in appalling
and dangerous factories with no regulations and no unions, colonized to make
cheap items sent back to consumers who are either too poor to buy quality or people
who just relish the concept of the cheapest of the cheap provided by the
poorest of the poor. The outcome is workers on both ends of the deal deliberately
impoverished by their respective governments.
Anyone who doubts that the
financial industry is willing and able to ethically govern itself need only
remember that it sold derivatives—what Warren
Buffett refers to as Weapons of Mass Destruction—and sub-primes all over
the world and found that it was quite acceptable to make money from clients rather than for clients. As soon as the US
deregulated, bankers paid a lot of people, with no knowledge or interest in
banking principles, a lot of money to play computer games to manipulate the
market. It is still not safe to invest in the New York Stock Exchange.
financial industry is willing and able to ethically govern itself need only
remember that it sold derivatives—what Warren
Buffett refers to as Weapons of Mass Destruction—and sub-primes all over
the world and found that it was quite acceptable to make money from clients rather than for clients. As soon as the US
deregulated, bankers paid a lot of people, with no knowledge or interest in
banking principles, a lot of money to play computer games to manipulate the
market. It is still not safe to invest in the New York Stock Exchange.
If there is anything we have learned from recessions and
depressions, including the ‘Great’ ones, it’s that the financial industry
cannot be self-regulating. All the major economic crisis we have been through
that have cost millions their livelihoods and all their possessions came about
because the money making business went mad with greed and the taste of power it
gave them.
depressions, including the ‘Great’ ones, it’s that the financial industry
cannot be self-regulating. All the major economic crisis we have been through
that have cost millions their livelihoods and all their possessions came about
because the money making business went mad with greed and the taste of power it
gave them.
If ever we needed to be afraid for the future of the country,
it’s now. The right wing, politico-economic regime has created a deep sense of
hopelessness on the part of voters, that they will never be able to afford an
education, much less earn a decent living and raise a family. Although it may
be fodder for comics, it’s not so amusing to young people who have to grin and
bear it when they are living in their parents’ basements. The Harper government
has dramatically changed Canada and blatantly intends to do a great deal more
until everything is privatized, until there is nothing left of our assets but
tanks and ships, and the whole work force is serving French fries. We have a responsibility
to change the regime before this happens.
it’s now. The right wing, politico-economic regime has created a deep sense of
hopelessness on the part of voters, that they will never be able to afford an
education, much less earn a decent living and raise a family. Although it may
be fodder for comics, it’s not so amusing to young people who have to grin and
bear it when they are living in their parents’ basements. The Harper government
has dramatically changed Canada and blatantly intends to do a great deal more
until everything is privatized, until there is nothing left of our assets but
tanks and ships, and the whole work force is serving French fries. We have a responsibility
to change the regime before this happens.
[1] [1]
Roth, William and Katharine Briar-Lawson Eds. Globalization, Social Justice and The
Helping Professions. State University and New York Press. Albany, 2011
Roth, William and Katharine Briar-Lawson Eds. Globalization, Social Justice and The
Helping Professions. State University and New York Press. Albany, 2011
http://books.google.ca/books?id=u0cayrOLth0C&pg=PA198&lpg=PA198&dq=Globalization+is+really+a+code+name+for+corporatization&source=bl&ots=cJi2Z8e_Bn&sig=VvTmUZ1oY2Vm7lXY3nslwqn4B74&hl=en&sa=X&ei=KrfzU-_mLcegogTS4YGgAw&ved=0CD0Q6AEwBA#v=onepage&q=Globalization%20is%20really%20a%20code%20name%20for%20corporatization&f=false
[2] Effective corporate tax rate 2013 15% http://www.cra-arc.gc.ca/tx/bsnss/tpcs/crprtns/rts-eng.html and http://www.canadianlabour.ca/news-room/speeches/clc-secretary-treasurer-hassan-yussuff-speaks-corporate-tax-freedom-day-2013
[3] Evans, Peter and William H Sewell, Jr. The Neoliberal Era: Ideology, Policy and
Social Effects. Cambridge University Press. 2013 http://sociology.berkeley.edu/sites/default/files/faculty/evans/Evans%20Sewell%20Neoliberalism%20DRAFT%205-17-11.pdf
Social Effects. Cambridge University Press. 2013 http://sociology.berkeley.edu/sites/default/files/faculty/evans/Evans%20Sewell%20Neoliberalism%20DRAFT%205-17-11.pdf
[4]
NAFTA’s Legacy for
Mexico: Economic Displacement, Lower Wages for Most, Increased Immigration. Public Citizen’s Gobal Trade Watch https://www.citizen.org/documents/ImpactsonMexicoMemoOnePager.pdf
NAFTA’s Legacy for
Mexico: Economic Displacement, Lower Wages for Most, Increased Immigration. Public Citizen’s Gobal Trade Watch https://www.citizen.org/documents/ImpactsonMexicoMemoOnePager.pdf
[5] Hall, Gary and Clare
Birchell, Eds. Cultural Studies in the Age of Disciplinary Democracy. Edinburgh
University Press. Edinburgh, 2007. http://epress.lib.uts.edu.au/journals/index.php/csrj/article/view/2119/2289
Birchell, Eds. Cultural Studies in the Age of Disciplinary Democracy. Edinburgh
University Press. Edinburgh, 2007. http://epress.lib.uts.edu.au/journals/index.php/csrj/article/view/2119/2289
[6]
http://www.globalresearch.ca/the-consequences-of-globalization-and-neoliberal-policies-what-are-the-alternatives/7973
http://www.globalresearch.ca/the-consequences-of-globalization-and-neoliberal-policies-what-are-the-alternatives/7973
[7] Harvey, David. Neoliberalism as Creative Destruction.
The ANNALS of the American Academy of Political and Social Science 2007; 610;
21 http://ann.sagepub.com/cgi/content/abstract/610/1/21
The ANNALS of the American Academy of Political and Social Science 2007; 610;
21 http://ann.sagepub.com/cgi/content/abstract/610/1/21
[8] Bond, Patrick and George Dor. Neoliberalism and Poverty Reduction Strategies in Africa. Discussion paper for theRegional Network for Equity in
Health in Southern Africa (EQUINET) March 2003
Health in Southern Africa (EQUINET) March 2003
No comments:
Post a Comment