Planet Atheism » Allen Small

Why Ontario electricity costs are going up and up!

Allen Small — Tue, 07 Sep 2010 19:03:00 +0000

Ontario residents may have noticed that their electricity provider has increased the per kilowatt-hour rates for use. One cause of the increases can be traced to a report published by the Ontario Clean Air Alliance (OCAA) in March 2008 (Eliminating Subsidies and Moving to Full Cost Electricity Pricing by Jack Gibbons) suggesting that subsidies to the production of electricity of almost $8-billion annually should be eliminated over a ten year period (at 3.5% per year) to bring Ontario more in line with other jurisdictions in North America. Subsidies became policy because it gave Ontario a “competitive advantage”. As in any economic situation that only looks at one side of an issue, that “competitive advantage” is coming back to bite Ontarians. The genius that created the subsidies neglected to consider that they might discourage energy conservation and investment in small-scale generation, and they have. The article from OCAA also points to a resulting “productivity gap” between Ontario and neighbouring competitors such as New York State, which uses just half the electricity compared to Ontario to produce one dollar’s worth of GDP. While the subsidies were a bad idea to begin with, the story behind the additional increases gets much worse.

The local utilities appear to be the villain in this story but they simply distribute electricity for their municipal shareholders to the consumers. The real villains were previous governments who created the subsidies. Now the McGuinty government is compounding those increases in its rush to be green at all costs – mostly yours.

Over 100 years ago competitive cheap hydroelectric power became widely available to businesses and residents of Ontario and it became the industrial dynamo of Canada. We still benefit from that very good start, but today, rather than encourage a competitive market in the production of cheap electricity the McGuinty Liberals are doing the opposite. They have made long-term deals with various companies (like Samsung Corp.) to purchase electric power at rates far in excess of the current market price of 4.5-cent per kilowatt-hour market rate (a 100 watt light bulb could run for 10 hours for 4.5 cents).

As a result Ontario will be forced to buy electricity at between 13.5 and 44.3-cents per kilowatt-hour (kWh) for the next twenty years from various solar and wind power companies. Recently (Aug. 13, 2010) McGuinty renegotiated a deal with 16,000 solar power project applicants to pay them 64 cents per kWh (down from an initial 80 cents) when they come on-line in the near future. Remember, these are intermittent power sources (no sun/wind no power), so “back-up” fossil fuel sources will be standing by (at additional expense because McGuinty is closing the cheap coal burning plants).

These massive subsidies to green energy are a result of policy brought about by the Ontario Green Energy Act (2009) which was shepherded through Queen’s Park by the powerful lobby group the Ontario Sustainable Energy Association (OSEA). Under the new Green Energy Act, former Energy Minister (now Toronto mayoral hopeful) George Smitherman (also of e-Health infamy), directed Hydro One to connect to the new heavily subsidized solar and wind power generators at a cost of $2.3-billion (the ones that will get 64-cents/kWh for their power). The OSEA claims to speak for Ontario ratepayers and it has exerted its influence through another group: the Green Energy Act Alliance (GEAA). How do these groups get funded? Well, it’s almost incestuous.

A recent article in the Financial Post (Aug. 17, 2010) by Parker Gallant points to a list of sponsors including: the Ontario Trillium Foundation (it distributes lottery revenue), the City of Toronto Atmospheric Fund, Ontario Power Authority, the Ministries of Energy, Natural Resources, Environment, Aboriginal Affairs, Hydro One and on and on. Its largely tax money that is influencing government policy, not public input.

In November 2009 OSEA held its 1^st Annual Community Power Conference. The sponsors above plus a few other branches of government and a very few private-sector sponsors that directly benefited (law firms, equipment importers, unions) paid for the conference whose Honorary Chair was David Suzuki (his foundation also gets money from Trillium above). The keynote speaker was then Energy Minister George Smitherman who is slated for this year’s conference, too. Somehow in all this the word “cozy” seems inadequate to describe how Ontario’s electricity policymaking works.

Is it possible to find a more expensive way to produce electricity than the McGuinty Liberals have? I doubt it. Imagine what kind of competitive position this creates for Ontario businesses for the next 100 years. Of course the new HST adds an additional 8% to your electric bill, as it will continue to go up and up.

This article was excerpted from the Fall Issue of Libertarian Bulletin the Newsletter of the Ontario Libertarian Party

The Dishonor of Militarism

Allen Small — Tue, 07 Sep 2010 01:48:00 +0000

The Dishonor of Militarism

Competition in government?

Allen Small — Mon, 06 Sep 2010 21:15:00 +0000

Today is Labour Day (yes, with a "u" in Canada) a holiday that celebrates organized labour (that picture from a Labour Day Parade in Fort William ON, 1903). This morning The US Heritage Foundation blog suggested that today should be called Government Day. In the US this is the first time that public sector unionized government workers outnumber private sector unionized workers. Unions have become a casualty (or is it causality? both?) of the recession/depression. In Canada it's likely similar, but maybe we're not there quite yet, certainly the public sector is rife with unions and the various levels of government seem to be in cahoots with their unionized employees. That of course is the problem, the public sector unions virtually eliminate one of the key features of bargaining, that is, looking for less expensive help, union rules prohibit that. Some of you may say that is the point of unions, the workers are protected. Certainly thats true, but who protects the tax payers? Is it elected officials that represent taxpayer interest? Of course it should be, but look at the job they have done.
Public sector strikes are fairly common, but in the end government negotiators generally cave in with offers in excess of anything available in the private sector. A recent Toronto garbage strike ended with unions getting a much better deal than private contractors give their workers.
Public sector construction contracts regularly requires unionized workers to carry out any work. In the Toronto region, electricians doing public sector work get between $34 and $36 per hour. The average hourly rate for non-unionized electricians work is $26. Now multiply that percentage difference (38% more) by all the public construction projects and its easy to see why government costs continue to rise much faster than the rate of inflation and governments go into debt. The elected officials who are responsible rarely get blamed, and if they do, they don't get re-elected but the new officials aren't any different. There is no competitive other government to take over (most political party's once in power act the same as their predecessors), the business of government is monopoly with minimal change every four years or so.
So imagine if there were alternate, but competitive governments, in other places to live that actually offered a competitive price structure. Somewhere where freedom is valued and competition exists in everything. That's the idea behind the Seasteading Institute, explained in this short video for young people.

A sovereign debt and currency crisis?

Allen Small — Sat, 04 Sep 2010 17:41:00 +0000

Maybe I've been watching too many Peter Schiff videos lately, but I'm getting more concerned about our financial future. By "our", I mean North America, we are effectively a common market. The old joke about the Americans sneezing and Canada getting the flu is well know in these parts. Everyone says Canada is in good shape compared to our neighbour, but as I have said before if your biggest and best customer has money troubles, then how good is your business?
The stock market doesn't seem phased, it's been in rally mode this week - but with lower volume. I'm not an economist but I know volume can be a sign of conviction and enthusiasm. The lack of volume says something else, or it could just be the end of summer.
I know I said I wasn't an economist but I have managed my family affairs so that we have no debt and some savings. I always thought that debt was something you wanted to reduce as quickly as possible, and there really is no such thing as good debt (contrary to what many advisors will say) even if it is a mortgage or business loan. Debt means you are not in control of your future - the debt holder is. The more debt the less control you have, so getting rid of debt is always a good idea for individual, families and governments.
So when the financial crisis of 2008-09 occurred, as a result of excessive debt it wasn't a surprise. Peter Schiff was right. The debt owed by homeowners became more expensive because interest rates rose. Many found the new rates beyond their ability to pay, sold or abandoned their homes and the rest is history. Prices for US homes fell significantly for the very first time. The resulting recession, according to several knowledgeable people (including Peter Schiff) is just the beginning. That argument is clearly explained in the following video which is about 45 minutes long but well worth your time.

No god?!

Allen Small — Tue, 31 Aug 2010 23:57:00 +0000

One of the fascinating features of the new social networking fad, is that you interact with people from all over that you would likely never run into in your real life. That new level of interaction will I have no doubt lead one day to some interesting and unexpected outcomes. As the use of the internet evolves it is bound to become even more exciting than it already is.
Just within the last few hours (it's stunning to me) I was introduced to Edward Current via Facebook (by a friend...thanks). I'm not sure if that is his real name, but he is very clever and irreverent in a cheeky sort of way. If you look through his YouTube Channel, he claims no religious affiliation and he claims the following is a comedy, very tongue-in-cheek and done well.

Of witches and wireless

Allen Small — Wed, 25 Aug 2010 21:35:00 +0000

In1692 in the village of Salem Massachusetts, two young girls, the daughter and niece of Reverend Samuel Parris, began to have violent fits where they screamed strange sounds, threw things, contorted themselves into strange positions and acted as though they had been possessed. The girls complained of being poked by pins and pinched, yet the local doctor could find nothing physical that caused these symptoms. Soon other young women in the village began exhibiting similar behaviour. The cause of these "possessions" was at that time considered to be witchcraft, a capital felony crime in the colonies. The three people charged and the trial that resulted has been popularized in the cinema and on the stage. That story was only a small part of the wider hysteria in colonial Massachusetts that eventually resulted in the arrest and imprisonment of over 150 individuals and the eventual execution of 19 people.
We think things like that don't happen anymore, the results of that particular mass hysteria had catastrophic effects on human life for individuals and families who listened, often uncritically to the testimony of local experts. Mass hysteria still happens today. How many times have you heard stories of buildings being evacuated after the discovery of a mysterious white powder? The white powder eventually is identified as chalk or something equally innocuous, but the irrational fear stems back to those days after 9/11 when all white powder was assumed to be anthrax spores.
So when I read about parents in the Barrie Ontario area that want the Simcoe County School Board to remove Wi-Fi routers from their schools because of their affect on children, I though witchcraft. Parents are complaining that their children are suffering from headaches, dizziness, nausea, racing heart rates, memory loss, trouble concentrating, skin rash, hyperactivity, night sweats and insomnia. Skin rash! All of these symptoms began apparently after the 14 local schools had wireless installed.
The experts are lining up; Ontario's Chief Officer of Health, Health Canada, the Simcoe Board and an assortment of government agencies all claim there is no danger and no evidence to support the parents' claims. The parents have Prof. Magda Havas from Trent University and the NDP Health critic France Gelinas who think the matter deserves further study. Everyone has an ulterior motive here, except maybe the parents. Prof. Havas does work on the potential dangers of non-ionizing electromagnetic energy - big motive.
This type of story - cell phones cause brain tumours, high tension wires cause leukaemia and on and on have been fashionable for as long as those technologies have been around. I hate to quote the WHO, but they say no evidence for any of this.
Interestingly our nearest star, the Sun, produces a wide range of both ionizing and non-ionizing radiations - huge amounts - but of course it's natural radiation. It's the "man-made" stuff we need to be concerned about, you know like organic and chemical - chemical bad, organic good. Simple solution: I'm wearing an aluminum foil hat right now to protect me, maybe it will help those poor kids too.

The greatest gift to the American libertarian electorate was the Obama administration

Allen Small — Mon, 23 Aug 2010 23:13:00 +0000

This is from Reason TV. Thanks to a fellow blogger I'm showing it to you.

Stimulus spending US style

Allen Small — Sat, 14 Aug 2010 17:21:00 +0000

Need a laugh? If you are an American this isn't really that funny - its just unbelievable. If you are Canadian you should not feel smug, it's not that much different here. This video link was brought to my attention by Cato-at-Liberty, enjoy:

Complexity, the State and You

Allen Small — Wed, 11 Aug 2010 20:53:00 +0000

It was totally by accident that I discovered Freedomain Radio some years ago while "surfing-the-net". This is a libertarian site, run by a true libertarian, but not in the political sense. Stefan Molyneux is a philosopher, or more correctly a libertarian philosopher (with a degree in philosophy), a sort of male Ayn Rand who uses modern tools to publish his message. He blogs, produces podcasts, he posts to YouTube and he writes books. He has some extraordinary insights that he shares with people through all these methods of publication. Need something to think about? Just spend a few minutes watching/listening/reading his always thought provoking material.
If you are in the Toronto area he will be attending one of our libertarian "pub-night" meetings in September. If you have Facebook - check this out, if not go to the Ontario Libertarian Party site and click on the pub-night prompt. Stefan is a local, from the Greater Toronto area and I think he is getting better and better at delivering his message. Here is one of his latest YouTube postings that gets to the core of libertarianism.

The best a government education system can provide

Allen Small — Tue, 10 Aug 2010 15:13:00 +0000

As a former public high school teacher I often feel pangs of guilt because I was part of a system in Ontario that did not have the best interests of its students as its ultimate purpose (although I did try to ignore the system). What was its ultimate purpose? Not an easy answer, but the system was primarily geared to other things like, staffing, timetabling, government "edu-babble" and maybe then to students. Of course this view was not shared by most teachers but I'm certain it was shared by many students.
Thanks to the wonders of social networking, email etc., I present to you a courageous valedictorian, Erica Goldson, of an American public high school who feels much the same as I do. If you want read along the full text of the speech is here. Erica is an anomaly, and her speech is obviously not typical but as you will hear, deeply felt.

A census I can support

Allen Small — Tue, 03 Aug 2010 17:39:00 +0000

That lovely photo (dragonfish) is just one of many taken over the last 10 years in a worldwide Census of Marine Life that will be formally presented in early October 2010.
This type of cataloguing and describing of species represents one of the lowest and oldest "levels" of scientific enterprise (although this study required the most up-to-date technology). Cataloguing and describing species pre-dates the 18th Century's Carl Linnaeus (the father of Taxonomy) who invented the binomial naming system still in use today. It is worthwhile work and not surprisingly it reveals that there is an awful lot we have yet to discover about planet Earth.
The number of "new" creatures revealed in this study should be humbling to the scientists and for me indicates just how little is known about how things work on Earth.

The reason I bring this up aside from my love of science and nature, is the spin being applied to this story. Sure human actions are endangering ocean life, we are all aware of what "over-fishing" has done to the East Coast Canadian Maritime fisheries, but to me that is an issue of ownership. When no one owns an area, whether on the ocean or the land, when that area is designated as "public property" or "government-owned" who is responsible for the area? Of course the simple answer is that government bureaucracy "manages" the area. Well, in Canada the Department of Fisheries and Oceans "managed" the East Coast Cod Fishery, how did that work out? The Minerals Management Service in the USA was responsible for "regulating" safe oil drilling in the Gulf of Mexico, how did that work out? If these areas were privately owned, the owners would probably be more careful preserving them. I'll bet they would harvest whatever resource wealth was in their territory in as sustainable a fashion as possible to protect their own interests. Governments, bureaucrats, typically have other motives like pandering to special interest lobby groups for political favours.
The worst thing that could happen to some of these marvellously diverse and productive ecosystems discovered in the Census of Marine Life is that they are "managed" by various government agencies around the world.

Blackberry Ban

Allen Small — Mon, 02 Aug 2010 19:37:00 +0000

The boys at RIM in Waterloo must be a little concerned about this. It seems the very reason business people, and politicians use the Blackberry service, that is, security, is troubling to the bureaucrats in the United Arab Emirates. They, along with India and the Saudi Arabia can't monitor traffic in the Blackberry Network. Of course that is kind of the point, but I won't quibble.
The UAE will ban Blackberry service as of Oct. 11, 2010. If that happens there is already talk about a black market in SIM cards to circumvent the Telecom Regulatory Authority (TRA) in the UAE (too many initialisms!). That's the power of the free (even if it is black) market!

Let the CRA support You

Allen Small — Mon, 02 Aug 2010 17:35:00 +0000

"We are from the government, and we are here to help you."
According to this below the Black Market is bad, and you should not support it. Rather, you should be happy that the government will support you. How can you argue with that kind of logic?

We're in trouble folks......

The Black Market Bailout 2

Allen Small — Sat, 31 Jul 2010 15:10:00 +0000

Just to follow up my last post that mentioned illicit food places, the West coast also has its share of these. I was listening to the People's Radio network (CBC Radio 1) last evening, to a program called The Main Ingredient. They highlighted a "floating restaurant" called The Wandering Spoon in Vancouver BC. Three regular daytime chefs cooking whatever they like to discerning and willing patrons without government oversight, regulation or constraint (and for a lower price too). What a concept!
Just to the South in Seattle there was a chef that prepares black market buntings in the French way. The pictured Ortolan bunting is apparently delicious eaten plucked and whole, but must be smuggled into the US from Europe where it is endangered. Naughty boys!

The Black Market Bailout

Allen Small — Thu, 29 Jul 2010 02:06:00 +0000

There is an interesting article in the Financial Post today asking the question "Did Washington avert a depression"? Of course the answer is a resounding yes, not just because it's the Financial Post, but because the guy that wrote the report was a former vice-chairman of the Federal Reserve. What the hell do you think he would say? Naturally they don't go into the fact this "intervention" into the economy is going to be reconciled at some point down the road, but by that time the unwashed masses will have forgotten what caused the reconciliation. Of course those same unwashed masses will be forced to pay for the consequences without hope of any bailout. But there is one way for them to get that bailout and hints of it, are occasionally visible.
In Michigan, one of the hardest hit of all the States economically speaking, some businesses are accepting payment for goods or services with alternative forms of currency. Imagine a restauranteur accepting copper (and I don't mean pennies) as a payment for meals. Of course Ontario and BC have increased taxes on many more items this month with the new HST. Does that mean an all cash underground economy will grow? Do bears crap in the woods? "You betcha" as whats her name would say.
Yessiree the unwashed masses may be unwashed but they are not stupid. They want their bailout too. Which brings me to the story of the illegal "grilled cheese factory" in Manhattan. Apparently there is a talented grilled cheese maker in NYC who eschews the local government regulations and the prohibitive cost (not to mention risk) for setting up a legit business. This fellow has created a business making and delivering grilled cheese sandwiches for $5 in a brown paper bag to customers on local street corners. He even has a FaceBook page and a "company" name: Bread.Butter.Cheese. This could be the way of the future, the black market bailout!

Why the mandatory long form of the census is so vitally important

Allen Small — Wed, 28 Jul 2010 01:46:00 +0000

It's not going away; the latest Tory taunt is still all the rage for the bureaucrats of Bytown. And why not, the Census delivers vital information if you are a bureaucrat, and vital information if you are a Canadian that thinks the greater good of the country is best served by a well informed government at the helm. It makes perfect sense, not just for government, but for businesses that are too lazy or too cheap to do a proper analysis of their own market.
The Census is essential so government can implement new policies and programs, so it can best spend the taxes and tariffs it ~~coerces~~ collects from Canadians. With this information the politicians and portfolio mandarins in Ottawa are obviously best equipped to accommodate the needs of all Canadians. They will be behind the proverbial curtain, tweaking the dials and adjusting things just so, in order to make certain the economy hums along with no surprises, no bumps so clear will be their view. Trust in them, trust in StatsCanada and we will be a just and happy society. Sure.

All the statists were lining up in front of the Parliamentary committee "to study the long form" these past two days, all of it available for your viewing pleasure on CPAC. Rumours are flying that a compromise is in the works - so Canadian, it's sickening. I still don't understand why the conservatives decided to do this now, it really is not what you would call a "conservative" idea. But it's a diversion, more interesting than leaky oil wells and oppressive humidity. It is also a great opportunity to examine the role of government in our lives, the problem of course is that it shows just how comfortable we are with big government doing big things.
Neil Reynolds has some interesting comments on that very topic this week with reference to the Census. Interestingly he writes for the Globe and Mail which has been leading the statist charge to preserve the coercive mandatory long form of the census. I suspect whoever is pushing that agenda at the Globe might have political aspirations in the Liberal Party.

Census Shmensus

Allen Small — Thu, 22 Jul 2010 23:54:00 +0000

Looks like the Harper Conservatives have created another issue where none existed before. Harper has a knack for this. While they have not yet backed down (yet) on returning the long form of the Census for 2011, the pressure among the statists must be getting unbearable (there is now a FaceBook page!). Seems that all of the things Harper proposes that I like, he reverses course on. Remember the $1.95 per voter party funding cut fiasco? I liked that, and it was gone.
I think people are thinking about the Census issue from the wrong perspective. Suppose there was no long form of the Census, suppose the government suddenly announces that there will be a series of personal intrusive questions about race, ethnicity, income, plumbing, education etc. in 2011. I'll bet some of the same people who are now up in arms about the long form being removed will argue the reverse. How about this guy?

Don't you think he would object to the intrusiveness of the long form? Sure he would and he would probably use many of the same words, he would wonder why the government needs to know all this information and he would cry out that this shows how ideological these Conservatives are - snooping where they don't need to be.

Nullification, American and Canadian style

Allen Small — Wed, 21 Jul 2010 20:12:00 +0000

Thomas E. Woods' latest book is about an old idea - nullification. The book called Nullification: How to resist Federal Tyranny in the 21st Century harkens back to a Jeffersonian idea that individual US State legislatures have the authority to ignore and declare void any federal law they deem unconstitutional. In Canada the analog is Section 33 of the Charter commonly known as the "notwithstanding clause" that allows provinces to opt out of Federal decisions. Neil Reynolds has a nice piece in today's Globe and Mail that provides a method that might restrain the growth of the welfare state in both Canada and the United States. Have a look.

Leading American Libertarians

Allen Small — Tue, 20 Jul 2010 17:28:00 +0000

I was directed to this video by a FaceBook friend and I can't resist posting it, enjoy.

Making the long form of 2011 Census voluntary – a good start

Allen Small — Mon, 19 Jul 2010 02:30:00 +0000

By now if you live in Canada and keep up with the news you have heard about the announcement made by the Harper Conservatives with regard to next years Census. Federal Industry Minister Tony Clement announced that the "long form" of the Census called the National Household Survey (see left) will be voluntary rather than mandatory as it has been in the past. Clement said that this was actually recommended by StatsCan, but rumours within StatsCan spin this story a different way. Whatever the truth it seems to be a tiny positive step that the Conservatives should be commended for.
Of course that's not what the opposition thinks and Clement's statement has been criticized (not surprisingly) by a large number organizations that claim they need the information from the long form to do proper planning. Many groups brought out there big guns, the C. D. Howe Institute brought out its President, William Robson.
In the Globe and Mail last week Robson admits that the long form is intrusive - "Knowledge comes at a price". But he goes on to show that's OK and he has no idea how the term "libertarian" fits into the politics of Canada or anywhere else. Let me quote one of the juicier bits:

"If you are one of the many Canadians who would like government to do less but do it better, this spectacle risks making you tear your hair. The state’s role in our economy and society has grown prodigiously over the past century – and not only radical libertarians worry about the resulting cost to prosperity and freedom. As governments’ reach grows, however, so does the need for information with which citizens can hold them to account. In eliminating the census long form, the libertarians have taken out the wrong target."

I've read that paragraph a few times and I can't believe Robson does not see the contradictions. He sort of laments the fact that the "state’s role in our economy and society has grown prodigiously over the past century" - it's a "worry", but as it grows it needs more information so citizens can hold government to account. Huh, it's the citizens that will suffer? Does he think libertarians would want more information from government to keep an eye on government? I'm shaking my head, but that is only part of why Robson thinks we need the long form. He mentions education, we need the long form to sample graduating students to see if they comply with the government mandated curriculum in the government mandated schools. On immigration, we need the long form to better plan the Canadian labour market. Then there is health care:

"The state plays a huge role in Canadian health care: Good information on personal and neighbourhood characteristics can help us know if we are healthier or sicker as a result. It redistributes income on a colossal scale: The long-form census can reveal much about the successes and failures of these programs. In all these areas, good information helps Canadians hold their governments to account."

Is that a great quote or what? I'm certain the next Census is going to give us the required information so we can fix health care, shorten those queues, improve the technology and justify that "colossal" redistribution of income right?

Just one point on the immigration. My parents came to Canada 62 years ago with virtually nothing but me. There was no government program for immigrants, no English classes, no co-ordination with skills and the labour force; my parents figured it out with help from various charitable agencies, family and friends. It worked amazingly well, my family and the thousands of others that came from war-torn Europe managed without government central planning, detailed statistics, charts and graphs and all that Statistics Canada does with more than half-a-billion dollars a year of our tax money.

The problem with democracy

Allen Small — Tue, 13 Jul 2010 20:05:00 +0000

Many forms of Government have been tried, and will be tried in this world of sin and woe. No one pretends that democracy is perfect or all-wise. Indeed, it has been said that democracy is the worst form of government except all those other forms that have been tried from time to time.
Sir Winston Churchill, Hansard, November 11, 1947

Democracy is a process by which the people are free to choose the man who will get the blame.
Laurence J. Peter (1919 - 1988)

On account of being a democracy and run by the people, we are the only nation in the world that has to keep a government four years, no matter what it does.
Will Rogers (1879 - 1935)

Under democracy one party always devotes its chief energies to trying to prove that the other party is unfit to rule - and both commonly succeed, and are right.

And

Democracy is the theory that the common people know what they want and deserve to get it good and hard.

H. L. Mencken (1880 - 1956)

All those pithy quotes come from this very helpful site - it is interesting browsing. There is truth in all of the quotes and my favourite is the first one from
Churchill,
often misquoted. I have always had trouble with the idea of democracy, even as a young boy I realized that the two words "wisdom" and "majority" are not always correlated.

For libertarians democracy is problematic much like Churchill's quote. In the present day, those countries that are democracies tend to have the most freedoms available to its citizens. When problems occur freedoms are often "suspended" even in democracies and frequently under the guise of protecting the majority. Those of us in the Toronto area recall how the recent G20 debacle interfered with daily life, freedom and commerce in the downtown core. Clearly democracy and liberty are correlated but sometimes not guaranteed in practice. In fact, just the presence of the G20 meetings and the security disruption caused, was to me neither democratic or in any way advancing freedom no matter what local politicians said.

Democracy is also intrusive. If allowed, governments that are democracies, will grow by claiming responsibilities that rightfully belong to individuals or groups. When this happens, governments that claim they know best will confiscate resources (taxes) and spend them often inefficiently. When taxation becomes too intrusive governments will amass debt, with the promise of repayment underpinned by the

future

productivity of the population. Expanding the debt while increasing government responsibility is characteristic of almost all of today's democracies and it is unsustainable.

This week Neil Reynolds writes in the Globe and Mail about the disintegration of the welfare state in Europe, democracies that are living beyond their means and it's a warning to us.

God and the Charter

Allen Small — Fri, 09 Jul 2010 21:37:00 +0000

So last week I suggested that the Queen (British Crown) be phased out of Canadian law. As unlikely as that may seem, given the constitutional changes required, here is another windmill I'm going to tilt at.
Yesterday the National Post highlighted a discussion that occurred because of an unusual interpretation of the Charter by a Superior Court judge in Quebec. The judge defended a private (sort of - they are funded 60% by Quebec) Jesuit high school of its right to teach Roman Catholic ethics and religion rather than the mandated Quebec provincial curriculum. The judge used the Preamble to the Charter ("Whereas Canada is founded upon principles that recognize the supremacy of God and the rule of law") to make his case.
This presented an opportunity for CFI to get some publicity and its executive director Justin Trottier to point out that the Preamble is inappropriate for about 25% of Canadians who are agnostics or atheists. Bloody right! Furthermore the Preamble and section 2 of the Charter are a bit contradictory. Section 2 states that everyone has fundamental freedoms including "freedom of conscience and religion" which of course does not preclude atheists but I hope you see what I mean.
Again this is not a big deal and nothing will happen as a result, but the last phrase in the Preamble is what makes Canada what it is. The rules are important and need to be tested and sometimes tweaked, and this document (as imperfect as it might be), and others need to be part of the fabric of daily life.

Suicide, politics and economics

Allen Small — Wed, 07 Jul 2010 17:50:00 +0000

A study that appeared in the British Medical Journal this week suggests that the $6-million state-of-the-art suicide barrier built over the Bloor Street Viaduct in Toronto works wonderfully. No one has jumped from that bridge in the 4 years since the barrier was constructed, however those who wanted to jump went to other bridges. That's right, the number of suicides by jumping has not changed in the city (56.4 per year pre-barrier vs. 56.6 per year post-barrier). The entire very readable report is posted here. On average 9.3 people per year jumped from the Bloor Viaduct, but in the macabre economics of suicide that number did not change. Interestingly the overall number of suicides in the city has decreased significantly over the same time span.
Hindsight is 20/20 sure, but politics in Canada on a city scale or a national scale is fairly predictable. The construction of the bridge barrier is a perfect example of how other people's money is misallocated daily by elected officials at all levels of government. To me this illustrates a phrase commonly used among Austrian economists "what is seen versus what is unseen". If you go to the Ludwig von Mises Institute's website (a wonderful place to explore) and type that phrase into the search box you will see it produces almost 150 results. It is a common theme in Austrian economics that refers to misappropriated resources. Yes, the $6-million solved the problem for the Bloor Viaduct (seen), but did not solve the overall problem of jumping from bridges and has left the city with fewer resources to solve other real problems (unseen).
As this story circulates through the media and gets bounced off a few "experts", you can be sure that no politician involved will admit this was in any way an error, but rather that more money needs to be spent going after the root problems of suicide prevention. Count on it.

The Royal Visit is a royal pain.

Allen Small — Tue, 06 Jul 2010 20:24:00 +0000

Imagine your young child asking about the visit of Elizabeth II to your hometown. What would you tell her? Would you say this is an important person and then try and list off all the Queen's accomplishments? That list might present a problem, because the Queen's most outstanding accomplishment was being born into the right family at the right moment in time. Your child might ask why is the Queen important? Your answer might sound like this: Elizabeth II is important because she is the Queen; a lot like saying she is important because she is famous, like Paris Hilton only with more followers. Your child may or may not see through the circularity of this argument, but think about what she learns here, the Queen is important because people say she is important and people grant her that importance. You probably won't tell your child that she herself could never become the Canadian Head of State, because that position is reserved for the Queen or her progeny, not deserved, not earned, just because.

The Queen was in Toronto these past few days, probably not enjoying the heat and humidity much like the rest of us, she is human after all. She is also an anachronism and an expensive frill.
Sure I know why we have a Queen but as she has pointed out herself during this trip, Canada has grown up in her lifetime and I think its time to cut the umbilical with the Brits. The fact is Canada works, by-and-large so why mess with that? Many would say "it ain't broke" so leave it alone. Not only that imagine what the cost in stationary changes would be alone? So no, I'm not advocating a referendum just yet, or looking for a more republican form of government yet; and then of course there are the constitutional issues. I'm getting a headache just thinking about what needs to be done.
So lets be economical here, cut the ties along the way as the Queen herself fades. That has been happening very, very slowly but it needs to be more deliberate.

The War on Drugs goes on "Take 2"

Allen Small — Mon, 05 Jul 2010 16:53:00 +0000

My previous post referred to the passage of Bill C-15 in the House of Commons. Apparently Bill C-15 has been reintroduced as Bill S-10 in The Senate. Here is the backgrounder from the Dept. of Justice regarding Bill S-10. The purpose of this legislation is to curtail the production and trafficking of all "illegal" drugs and particularly if it involves "organized crime". Below, I will present some of the arguments for and against these Bills and the prohibitions against drugs.
First let me be clear, I don't give a rat's ass about drugs or drug use. As far as I'm concerned people have the right to do whatever they like with their own body as long as they harm no one else. I personally do not advocate, use, promote or even like the fact that people use drugs. I don't see drug or alcohol use as virtuous, noble, fun or desirable and I would just as soon not have anything to do with the issue. Furthermore, if users become dependent on the use of drugs or alcohol - so what? It is still not my issue, I expect users to be responsible in their use and not affect those individuals who wish not to be affected. I have no right to tell people how they must live and neither does the state. There is no crime if there is no victim. Of course crossing that fine line between drug/alcohol self-abuse and the rights of others is a very different story, but not for now.
So why do I bother writing about this? All of us who live in this country and pay taxes are involved, all of us who pay for the police, the prisons and jails, the legal system; we are all involved whether we like it or not. The policies and laws implemented by the state determine to a large degree the safety of our streets. Look at what drug laws have done in Mexico and the United States, we don't need to copy those mistakes.
My problem is that I'm not onside with the anti-prohibition people in Canada or the US (from the evidence I see). Their opposition to prohibitions seem to be more pragmatic than principled. In Canada the people against Bill C-15 and S-10 point to empirical evidence - the science, that suggests that more Draconian policies and laws makes criminals of many and misspends scarce resources. Obviously I can't disagree with that, I just don't think the science is the reason to reduce or eliminate the prohibitions. Having said that, we can be allied in moving the policies in the right direction, so here are two videos that present arguments care of an anti-prohibition group:

Part 2:

The War on Drugs goes on

Allen Small — Sun, 04 Jul 2010 16:28:00 +0000

I first wrote about the War on Drugs in March of 2009. My view is that Alcohol Prohibition created criminals of American citizens in the 1920's and 30's and today drug prohibitions are doing the same to both Canadians and Americans as well as citizens of other countries around the world. The illegal drug trade and the laws against it has created violence that endangers the lives of innocent citizens rather than protecting them.
Contrary to good evidence the Harper Conservatives have introduced and passed (195 to 54) Bill C-15 that provides for Mandatory Minimum sentencing for so-called drug crimes even though more policing has been shown to increase violence. The violence threatens to spread into Canada and has grown worse especially in the border area around the US and Mexico. Bill C-15 will impose a minimum 6 month sentence for possession of between 5 and 201 cannabis plants. Though C-15 has passed in the House it has yet to become law awaiting passage in the Senate and signing by the Governor General.
The anti-prohibition group called LEAP has organized some opposition to Bill C-15 with this petition and the following video:

To my American friends and relatives:

Allen Small — Sun, 04 Jul 2010 15:15:00 +0000

Happy Fourth!

Bigger government equals poor economic performance – The Rahn Curve

Allen Small — Fri, 02 Jul 2010 16:25:00 +0000

From The CATO Institute here is a video that correlates the size of government to economic performance. Canadians should be reminded that the size of government in the mid-1990's was over 50% and that the Chretien/Martin austerity cuts of the mid-late '90's brought that down to a smaller (but still unacceptable) 42-44% in recent years. Relatively speaking that has made Canada look like a model for economic achievement compared to other Western democracies during the Great Recession.
Dan Mitchell of CATO explains the Rahn Curve:

Ideology vs. Ideology – How I celebrate my freedom.

Allen Small — Thu, 01 Jul 2010 16:24:00 +0000

Happy Canada Day!
By now most people have heard about the new "conservative" SUN TV NEWS channel slated to begin broadcasting on cable in the new year. It is owned by Quebecor Media Inc. and it will broadcast from downtown Toronto under the leadership of Kory Teneycke once of the PMO in Ottawa. Media pundits have already dubbed it "Fox News North", and I'm certain Quebecor would be thrilled if it was as successful as its supposed American version. Of course the website of the new station says nothing about "conservative" just "straight talk opinion journalism at night". I guess thats code for conservative. I'm not even sure what conservative means, - would commentators advocate the status quo? Does that mean that other broadcasters are liberal, socialist or don't advocate the status quo? While I welcome the new station I have real doubts that it will be any different then the others.
If Sun News reflects conservative values, does that mean it supports Harper's gang in Ottawa? If that is true how would it give a new ideological spin to news that differs from CBC, CTV or Global? Does that mean Sun News would advocate fiscal conservatism? That would be good but in my view Harper's Conservatives are less fiscally conservative than Jean Chretien's Liberals. Or is it going to be socially conservative, is it going to rail on gay marriage, abortion, drugs and gambling? That will not get me to watch. So you can see my problem, their ideological spin would likely be pretty much the same as the ideological spin I get every day in the supposed neutral news broadcasts on the other networks.
There is a prevailing ideological bias in the Canadian media and it colours all the broadcasters almost all the time. A good way to describe the pervasive ideology is to contrast it to mine, not that mine is the "right" (no pun intended) ideology but it is the only one I've got and it is my blog so here goes. I'll write a topic or issue in no particular order, first give my view of the prevailing media propaganda, then follow that with my own propaganda or bias.

The G8/G20 talks in Muskoka and Toronto:
Media propaganda: Important to get the leaders together to solve the world's problems with concerted action and unity of purpose.
My bias: A huge waste of money, an anti-democratic exercise of "back room boys" playing at sorting out the world's problems. These pseudo-governmental bodies (Gx) have no mandate from individuals in the representative countries, and have the ultimate effect of wasting resources and reducing freedoms around the world.

The G20 Protest Mess in Toronto:
Actually I can't argue with the media bias here. Most of them saw it for what it was, and it wasn't pretty. The bottom line is that our police act like police everywhere and it is most certainly not to protect the rights of citizens. It seems that civil rights are most often jeopardized during stressful events, just when they need to be protected the most.

The Queen arrives in Canada:
Media propaganda: Wonderful to have her back "home", isn't that a nice hat?
My bias: Ugh! A huge waste of money, talk about anti-democratic; it's 2010 and time to shed the concept of "royalty" except in its economic meaning. The lesson taught to our children is that a privileged birth entitles one to be treated with special rights. This is not the lesson that should be taught in a society based on liberty and individual rights, not a Canadian value.

The Afghan War:
Media propaganda: For Canada a NATO obligation, necessary to prevent the resurgence of terrorist groups like Al Qaeda in Afghanistan, plus an attempt to create a democratic situation in Afghanistan (so they can be just like us). Many in media would advocate staying beyond 2011 and "finishing" the job.
My bias: I was not against the initial "Get Osama" reaction in 2001, but since then too many lives have been lost for too little gain. At least 150 Canadians have died "defending Afghanis" - a waste of lives and money. We have done nothing lasting in Afghanistan but piss-off the natives, prop-up a corrupt government and there is no way to fix the problem or any reason to, so we should leave NOW.

The World Economic Crisis:
Media propaganda: The world was on the edge of disaster in late 2008 and quick government action saved us. The stimulus money/bailouts saved us and the economy is recovering slowly but surely and the future in bright. Canada is in pretty good shape in all this mess because we have relatively low deficit/debt problems.
My bias: How could Canada be in "good shape" if all its "customers" (we are a trading nation) are in dire straits with huge deficits and bigger debts? Who are we going to sell to? Are they going to purchase on credit and how can we trust them to repay? Several European countries are on the verge of defaulting, their bonds are junk, they must cut their costs likely resulting in mass (government worker) layoffs and unemployment or at best reduced salaries for many. All this austerity will sharply reduce consumption/trade and a recessionary or deflationary situation is likely. The same is true in the States (our biggest customers), if individual States default (or need bailouts) their situation mirrors the European countries. The bottom line is that the medicine must be taken or federal banks will print money to "fix" the problem resulting in future inflation which is a silent stealth tax on us all.

Climate Change/Global Warming:
Media propaganda: An urgent global problem that must be addressed before it is too late with concerted world action effectively creating a new world psuedo-governing body that tracks and trades carbon production with the intent of saving the planet for the future.
My bias: The planet has been warming since the most recent ice age (10-12,000 years ago), and if we are in any way aggravating the rate of warming, we certainly cannot and should not fix the problem without huge costs in money and freedoms. Let the future deal with any problems that may arise if and when they arise.

An article I read by Mark Steyn in MACLEAN'S a couple of weeks ago prompted me to write this piece. Steyn's article (worth the read) talked about Don Newman's (CBC) view of FOX NEWS, and how biased it was. Of course bias works two ways as I hope I've pointed out.
One other little note. You may know Penn Jillette, illusionist and libertarian host of one of my favourite TV shows: Penn & Teller's BULLSHIT (seen in Canada on TMN). Well, there is an article in a mid-June issue of Vanity Fair where Jillette is interviewed by an obviously biased reporter, it too is worth a look.
Enjoy your freedom, Happy Canada Day!

G20 Fallout – J.M.Keynes Lives

Allen Small — Wed, 30 Jun 2010 18:22:00 +0000

Want proof that the G20 meeting was money well wasted?
Harper got the G20 members to sign off on cutting their deficits 50% by 2013. So slow their rate of borrowing to half in three years. Neil Reynolds thinks they are operating under a delusion here.

Return of the Maunder Minimum?

Allen Small — Tue, 22 Jun 2010 16:22:00 +0000

Last January 11 I posted an article called "Can scientists be AGW Skeptics" where I showed a satellite photo of the UK covered in snow top to bottom. It was a very cold winter over there and in much of Europe.
This week Neil Reynolds writes an interesting little piece about the "little ice age" of the late 17th Century which held the British Isles and a good chunk of the continent in its icy grip. This was a real event for which historical writings exist, along with historical corroborating weather data from the UK which tracks back 350 years.
The little ice age corresponded with a solar anomaly called the Maunder Minimum which was an extended period of low sunspot activity. Sunspots (cooler areas on the sun) vary in cycles of about 11 years (give or take) and our sun is currently at a low in sunspot activity. All this of course suggests to me that the sun varies in its energy output over time which should have profound effects on Earth's climate and maybe a more satisfactory theory explaining climate change. There is good evidence that the sun is a variable star and that its energy production seems to follow cycles both long and short. If that theory explains climate change (even partially), than it is unlikely to gain support from the scientists of the IPCC because there will be no funding for their terrestrial research into anthropogenic causes of climate change; so solar variability is ignored or played down. Who can blame them?
Reynolds' article suggests that Britain and Europe may experience another prolonged cold spell and of course the University of Reading physicist who makes this prediction says it has no relation to the ongoing global warming which is caused by humans. Of course it doesn't. Or maybe global warming is caused by one of the longish solar cycles, who knows?

Running out of other people’s money

Allen Small — Fri, 18 Jun 2010 16:36:00 +0000

Summer seems to make it difficult to get concerned about anything. All those important causes whether personal or work related will wait for September. That's always been my attitude anyway and it seems to be true of the stock market and everything else as well. The media often sets the tone for what should be at the top of our collective agendas. Right now the World Cup is the big story here, but close behind is the impending G8/G20 traffic disruptions and security costs in the Greater Toronto area. Close behind that is the catastrophe in the Gulf of Mexico, but all of it does not seem that important because its summer.
Everyone has forgotten the economic crisis of 2008/09 that created market turmoil, job losses, portfolio losses and on and on. Most people think the problem has been solved, the bailouts worked, good times are just around the corner, the governments of the world have things under control. The coming G8/20 meetings will be the icing on the cake and will demonstrate to the world that everything will be hunky-dory. Some people think that this apparent pause the economic crisis is just the calm before the real storm.
Johan Norberg is a Senior Fellow at CATO and he sounds like that TV ad Canadians are accustomed to viewing from the ING guy "Fredrick" who cautions people to "save your money". Norberg has some sobering comments in this CATO video from last month:
http://www.youtube.com/watch?v=0WEwy-uGKoI&NR=1

Obama is ready to kick BP in the ass

Allen Small — Thu, 10 Jun 2010 22:29:00 +0000

ReasonTV thinks Obama should be kicking himself first. The BP oil disaster is another clear example of how corporations can be vilified for their blunders. This is a shared blunder, it's not just BP. The US Federal government is up to it's elbows in sticky brown goo because it is their fault almost as much as it is BP's. Watch this:
http://www.youtube.com/watch?v=Quk0tb2qUwY

Cutting Government spending…where to start.

Allen Small — Tue, 08 Jun 2010 12:18:00 +0000

Here is a nice piece of research done by Dan Mitchell at CATO: "There Are too many Bureaucrats and They are Paid too Much". Of course this refers to the American situation but we in Canada should not feel smug. I don't need to add anything except that the same goes for Canada's Federal, Provincial, Regional, and Municipal bureaucracies.
http://www.youtube.com/watch?v=5xzd3puYmiM

Who is Ayn Rand? by Charles Murray

Allen Small — Fri, 04 Jun 2010 22:01:00 +0000

A daily email from CATO@LIBERTY (you should subscribe) prompted this posting. It comments on the fact that two biographies have recently appeared describing the life and times of Ayn Rand. Apparently neither of them were particularly complementary (I have not read either) to Rand and I was aware of that.
Rand is reviled in most academic and philosophical circles possibly because her philosophy of Objectivism seems so simple (it's not really) and compelling. Her books have sold very well in the past 50 years and are selling even better these days possibly due to the economic crisis around the world (I'll wager they sell better than any other philosopher).
Some would say the books, especially Atlas Shrugged, are even prophetic. I don't think there is any prophesy involved, I think what is happening (and will continue to happen) around the world is a logical consequence of many bad decisions by many people in power over many years. If economics is a science (which I think it is) then certain actions will lead to undesirable and unintended consequences, much the same as crashing a car into a concrete wall will cause damage and worse.
Anyway, Charles Murray wrote an interesting piece "Who is Ayn Rand", where he talks about Rand and the new bios and I'm thinking its time to reread some of her stuff. Despite her negative portrayal by modern-day academics, her popularity runs circles around any other of her kind, and she remains a positive and important influence on me and millions of others.

Heretics Unite, you have nothing to lose…..

Allen Small — Tue, 01 Jun 2010 00:29:00 +0000

I wish I could say that this will be my final word on Global Warming.
Frankly, I think that the Copenhagen Conference (Dec. '09) was a turning point for the entire issue as it coincided with the "e-mail debacle" in Britain (true or not). That is one reason, and the other is the realization by everyone lately that not only can banks default and beg for bailouts, but whole countries can default on their bonds (loans) and need to be bailed out too. Obviously the economic ideas that have prevailed in recent times across the governments of the Western world will need to be revised. I hope that happens soon, but I think more severe pain will have to be endured before the poop really hits the propellor.
So I give you The Great Global Warming Swindle, (found on Facebook) a rather lengthy piece of video (get the popcorn) that is a compilation of the other side of Global Warming. Is it true? Well, maybe it is or maybe it's just another point of view. Some things are for sure, you don't have to watch it, and if you watch it, you don't have to believe it, and if you believe it, you can't force anyone to do something about it; because there is nothing to do. So gather your children........I don't think it's your fault.

http://video.google.com/videoplay?docid=-5576670191369613647#

TIME looks at Rand and Ron Paul

Allen Small — Fri, 28 May 2010 18:35:00 +0000

The recent Senate primary win for Rand Paul in Kentucky is having repercussions throughout American politics. Apparently Kentucky Republicans like what Rand Paul is saying, much the same as Galveston Texas area voters have liked Ron Paul for a dozen years now.

Ron Paul is arguably the world's best know libertarian, and his son shares many but not all his father's views. Is Rand's win significant? Well, TIME magazine thinks so, and so does CATO. Many libertarians dismiss Rand as "libertarian-light" with some statist ideas, but for me close-to-libertarian is better than almost any other option. As the TIME article mentions Ron Paul's views don't seem so wacky now:

"Twenty years later, Paul's views no longer seemed kooky: government spending soared even under a Republican Congress and President, leaving many conservatives fed up. At the same time, the human and financial toll of the Iraq war, which Paul decried as an act of imperialism, left some Republicans angry with the so-called neocon wing of their party."

The CATO-at-Liberty article is worth a read, because coming from a libertarian perspective it places the Paul's in the American context and gives us all a hopeful message for the future.

Obama is responsible for BP oil disaster. Who knew?

Allen Small — Thu, 27 May 2010 19:54:00 +0000

Yup that's right: “I take responsibility. It is my job to make sure that everything is done to shut this down,” Obama declared at a news conference in the East Room of the White House. Gee I thought it was BP’s fault. When Obama swore to “protect and defend….etc.” I don’t think this is what the framers of the US Constitution meant. In fact this seems to take some responsibility off the shoulders of BP, but Obama went on calling the spill an “unprecedented disaster” and pointed to the “scandalously close relationship” he said has persisted between Big Oil and government regulators.

Well that does it; I can’t believe that government regulators had anything to do with this. Aren’t US government regulators supposed to be regulating stuff on behalf of the American taxpayer? I thought they worked for the government, the people, by the people and all that shit. I guess I was wrong. Of course NOW Obama is in charge, and yes he is part of that same government he just blamed a couple of lines back. So I guess we can trust them now because it’s a different branch of government. Don’t you feel better?

The good news is that it is oil, and there is lots of sun and heat down there in the Gulf. With the help of “oil eating” microbes the mess gets cleaned up….eventually.

Big Government Canadian style and the right questions

Allen Small — Tue, 25 May 2010 16:55:00 +0000

When political parties give up their principles, bad things happen. Of course once in power, the operating principle of almost any political party becomes hold onto power - damn the principles.
In Canada if you belong to the Conservative Party then you know the truth of that last statement.
This morning in the Globe and Mail, Tom Flanagan points to just three issues (I think there are so many, many more) that have created unnecessary debate and discussion, all of them related to the Conservative government's increases in the size and responsibility of the state.
Issue one: the Jaffer-Guergis affair involving alleged lobbying of the federal state to garner subsidies for "green" businesses. Flanagan dismisses the affair then asks the right question: why has a conservative government created a $1-billion Green Infrastructure Fund? Why indeed? Here is a giant plum ripe for the picking by lobbyists and insiders who would scam their own family for financial gain. How is creating this fund being fiscally responsible or conservative?
Issue two: Abortion in the Third World.
First let me say this to those who think abortion should be banned in Canada or anywhere. The only banning that should go on is your power to force anyone to do anything against their will as long as no one's rights are abrogated. If you think a fetus has rights over and above the mother that is carrying it, then you need to take that fetus and bring it to term yourself, good luck. Or should we lock up that pregnant female and force her to carry the fetus? Would you do that to your daughter? The current law in Canada on abortion is the one that is appropriate, that is, no law.
Now that you know my position lets see what Mr. Flanagan said. The Conservative government refuses to fund abortion in the health care part of Canada's foreign aid package. This angers many at home and abroad (including Hilary Clinton) and threatens to become an issue in the G8/G20 summits coming to disrupt your summer plans in Southern Ontario this June. Again Flanagan asks the right question: why is the Conservative government promoting government-to-government foreign aid? He points to scholars that have shown that government-to-government foreign aid (except for immediate disaster relief) actually impedes economic growth and good governance in the Third World. I hope Stephen Lewis reads Flanagan's article.
Issue three: Gay Pride. The Conservatives have decided not to fund this year's Gay Pride Parade in Toronto while continuing to fund a variety of other parades and festivals across the country. Is Harper pandering to the homophobic part of the Conservative Caucus? Probably, but again Tom Flanagan asks the right question: why should the federal state subsidize any parades or festivals anywhere? How is that being fiscally responsible? Well, it isn't and it's too bad that Flanagan stops at three, but it is a start and I recommend the article to you. Flanagan ends by suggesting that today's economic realities will of necessity shrink the size and scope of government, I can't wait.

In defence of Climate Research; stop the criticism!

Allen Small — Fri, 14 May 2010 19:56:00 +0000

It seems that climate scientists are pretty thin skinned when it comes to criticism. They want it to stop; especially the political attacks on the climate change advocates. So they have published an "open letter" basically saying stop the criticism we're right, so there. They invoke names like Galileo, Pasteur, Darwin, and Einstein claiming association with these past scientists and implying that their theory of anthropogenic global warming is on the same level as those past greats. May be, may be not, I don't remember any of those past greats asking for special consideration, their theories spoke eloquently and survived decades (centuries even) of scrutiny and controversy.

Meanwhile Al Gore is doing really well, bought a new house, did you hear? Yes, just a modest $9 million seaside villa; nothing special really. Back to the scientists, check this column from Libertas Post, I wish I had said this.

Smart Urban Planning?

Allen Small — Wed, 12 May 2010 21:07:00 +0000

Have you ever felt out of step with the majority at a gathering? Last night I was a town council meeting where I felt like the guy wearing shorts and a tee shirt at a black tie affair.
My town is finally coming to grips with an issue that has been brewing for years. The Province of Ontario has mandated my town as a growth centre - part of the Greater Toronto Area. The town still has a large component of zoned farmland that could be developed to accommodate this new growth. Let's put aside for the moment the issue that the Province can dictate where people should live and how towns should develop, I think that's wrong.
The town's councillors felt compelled to act on the provincial edict. A variety of special interest groups ranging from the David Suzuki Foundation, to all manner of ratepayers, farmers, and developers groups fought (in a civilized way) to convince the town councillors how to plan this future growth. There were public meetings, council meeting, special meetings and on an on for years. The essence of the debate focussed on rezoning the farmland. The developers and the farmers wanted the land rezoned for future development in accord with the provincial edict, the other groups, lets call them the environmental lobby, wanted to preserve 100% of the farmland (some of the best land in the Canada) for future food production (as a Food-belt) and concentrate any future growth within the existing urban developed land. That concentration is euphemistically called "intensification" or I prefer "densification". Councillors were prepared to apportion up to 60% of the future growth within the existing urbanized land and the rest on the rezoned farmland.
So yesterday was decision day and the environmental lobby had there guns out (metaphorically speaking). The mayor, who doesn't know the meaning of brevity, rambled on about the "process" and thanked all present (and those in the past) for the civil conduct displayed. A lot of "back-patting" followed, it is after all an election year. Then came two hours of deputations beginning with a representative from the Suzuki Foundation who played this video which featured the guru himself. One after another people spoke, mostly on behalf of the environmental lobby, followed by raucous applause. Each repeated how the farmland was essential, even though our growing season is short and farmers are having difficulty competing with farm produce from offshore. Many of the farmers are nearing retirement age with no one willing to purchase their land and keep the farms going. For them selling to a developer may be a profitable out.
The environmental lobby would prevent this, farmers would be forced to continue or sell to anyone but a developer and take far less than the fair market value of the property. One eloquent speaker, the daughter of a farmer, spoke about how her father would like to do nothing else but continue his farm, but his age will make that difficult sooner than later.
Many from the environmental lobby spoke about "smart growth" in towns like Portland Oregon and wanted my town to be a model for smart growth in Canada. The problem is that smart growth has its share of criticisms now, after being around in the States for years. Portland and other cities have many of the problems, that were supposed to be avoided with smart growth. Smart growth is also supposed to be more conducive to beating climate change (if you think that's a problem), but studies have shown the opposite is true. Here is an interesting debate if you have an hour to kill.
All of this debate was going on during our Great Recession, which I fear is still in the early stages. The smart growth approach depends heavily on major governmental transit expenditures. These would need to be financed with increased debt, which could be a problem given the possibility of sovereign defaults in Europe. A default could cause money to stop flowing like those days in the fall of 2008.
Today in the Globe, our friend Neil Reynolds lays out one of the chief problems with Western society. All of this is related to how governments take on responsibilities they should not - smart growth, stupid idea.

Why weddings matter

Allen Small — Fri, 07 May 2010 21:23:00 +0000

Last week at this time my family and friends were preparing for the wedding of my son to his fiance and former girlfriend. This event has been long anticipated, and even though they were living together we all knew that the marriage was a big deal.
By coincidence on the morning of the marriage, Margaret Wente (one of my "go-to" columnists) in the Globe and Mail published "Why weddings matter more than ever". I tried reading it to my family at the breakfast table and the emotions were very strong in the context of the day.
After the wedding I read comments about this column in the paper and online. I felt that many people missed one of Ms. Wente's most important points, so I wrote my own letter to the editor. Now that the kids are off on a honeymoon, the relatives have returned safely home, and the dust is settling in my house, I thought I would share with you what I wrote to the Globe and Mail:

Margaret Wente’s column (Why weddings matter… May 1^st) was published on the same day my son was married, so it had a special impact in my household that morning.

Ms. Wente mentioned that wedding rates are in decline and that “No government, no matter how well-heeled or well-intentioned, can offer an effective substitute for the devotion and parental investment of two nurturing adults.”

I absolutely agree and I believe that our governments in the last 60 years have usurped the position and responsibility of family, church and community. Who needs these institutions when strangers are coerced by government through a myriad of welfare programs, into providing for all our needs from cradle to grave?

It is no coincidence that rates of marriage have declined, and that rates of divorce and single parent families have increased in that span of 60 years.

My son’s wedding was wonderful!

The Globe editor did not publish this letter, frustrating yes, but that is one reason I blog.

Reactions to political words

Allen Small — Wed, 05 May 2010 22:07:00 +0000

A recent survey of Americans by the Pew Research Center shows that Libertarians have some work to do in defining what they represent.
The chart shows that among those surveyed the reaction to the word Libertarian is not screamingly positive, on the contrary. Yet the terms "States' rights", "Civil liberties" and "Civil rights" have distinctly positive reactions. All of these might be supported to a large degree in the libertarian idea. The disconnect between these terms and the term libertarian seems larger than is warranted, so maybe those ideas are not part of the libertarian sales pitch. They should be.
The article points out that Republicans take a dim view of libertarians, (so much for the term "right-wing" when applied to libertarians) while Democrats are evenly divided and Independents have a much more favourable view (44% positive/32% negative). The term "right-wing" which I just mentioned, would to me, more closely fit "fascist-authoritarian-socialists" who are Republicans, by and large (of course they would disagree).
Libertarians are in desperate need of better marketing strategies or they will be stuck with this negative view.

Ion Propulsion – The Next Generation

Allen Small — Wed, 05 May 2010 20:51:00 +0000

For all you "trekkies" or "trekkers" here is more evidence that Star Trek has changed the world. A space probe called Dawn is travelling beyond the orbit of Mars and heading into the asteroid belt between Mars and Jupiter. Dawn is supposed to achieve "standard orbit" (a Star Trek term - see picture) around the asteroid Vesta, staying and exploring a while then heading off to the asteroid Ceres later. These are two of the largest asteroids in this solar system. Why study asteroids? Well, the standard NASA answer is to gets some insights into how they formed and help scientists understand the formation of the solar system. Of course asteroids may be cholk-full of raw materials, so science may not be the only reason for such a trip.
This is not the first time asteroids or comets have been visited. On July 4th, 2005, NASA's Deep Impact probe intentionally collided with the comet Temple 1. In January 2006, NASA's Stardust probe returned samples of the Comet Wild and is on route to visit Temple 1 in 2011. In September 2008 the European Space Agency's Rosetta probe flew by the asteroid Steins.
But the Dawn visit is unique because it orbits two asteroids and if it had used conventional fuel it would have been too heavy to launch with current vehicles. Instead of conventional fuel Dawn uses Ion propulsion, a concept made popular during the original Star Trek series. This clip helps explain:
http://www.youtube.com/watch?v=IjR36EAR_B4

Vote small, think big – can’t agree more!

Allen Small — Tue, 04 May 2010 21:31:00 +0000

Pat Condell is one of my favourites. He is British and speaks from the European perspective and his message is mostly anti-religious. That gets a bit tiresome sometimes, but he does such a good job of it, and his delivery is so smooth, that just to watch him is a pleasure. Maybe it's just because of his accent, he sounds so smart - I think he is.
Thursday, May 6th is the British election, an important one not just for the Brits but all of Europe and even us to some extent. In a recent post he spoke about the importance of this election. Condell is no libertarian, but his message is one that should be heard because it can be applied in Canada or the US. Have a listen:
http://www.youtube.com/watch?v=krybvOx-8Dk

GM (Government Motors) loan pay back explained

Allen Small — Tue, 04 May 2010 18:57:00 +0000

Remember "new math"? Neither do I, but I do know when I'm being scammed. The CEO's of GM in the USA and Canada are bragging about their loan repayment in contrived television ads being played in both countries. They are STRETCHING THE TRUTH, and if they can lie without consequences we're all screwed. Here is another more accurate representation of the lie:
http://www.youtube.com/watch?v=SOaS2SymjQ4&feature=player_embedded

Canadian electoral reform

Allen Small — Tue, 27 Apr 2010 16:03:00 +0000

This week in the Globe & Mail Neil Reynolds writes about Canada's inability to elect majority governments of late, and how that could jeopardize our democracy.
Well, I won't start rhyming off the jokes about democracy and the tyranny of the "majority" and how democracy is three wolves and two sheep voting on what's for dinner.......OK, sorry, I said I won't.
Mr. Reynolds makes the point that very few (25 out of 308) of our Federal Members of Parliament (MPs) actually received a majority in their ridings in the 2008 federal election. That fact can be viewed this way: only 59% of the qualified electorate actually voted and 37% of them actually chose candidates that form our current Conservative minority government. So our current government represents just 22% of the possible voters, but that speaks to the issue that voters feel powerless to change the system so they don't bother to vote. That last point of course, is why we have many little parties, Libertarians among them.
Mr. Reynolds suggests that allowing a "runoff election" in ridings where no candidate has a majority, as is done in many countries, will rectify the situation. He further goes on to blame our multi-party system especially the Bloc Quebecois and the NDP for our inability to elect a majority now, or in the foreseeable future. All this of course is true, just as its true and ironic that many of the smaller special interest parties receive the bulk of their funding from the public purse. It just makes me shake my head, we are paying for the Bloc to block a possible majority and allowing them to disrupt the running of our parliament and split the country apart, only in Canada!
Anyway, the odds of this issue being addressed by the current government is nil. Their primary attempt at electoral reform is to create more ridings in areas where more Conservatives can be elected, that is, in rural areas and out west while improving representation by population (also a good idea). This may be our only hope, but its affects will not be felt for years.
In the meantime some groups are pushing for what is called proportional representation, an idea that was defeated in the last Ontario election in a referendum and would further fracture our already fractured parliament. If it weren't so serious, it would be funny.

The Green Myth

Allen Small — Thu, 22 Apr 2010 18:31:00 +0000

Today thousands of children across Ontario and probably much of North America will be picking up garbage. It's Earth Day and Ontario schools will be demonstrating to their little clients what it means to be "stewards of the planet", the official propaganda of the Ministry of Education. Students will don rubber gloves, go to local parks and be reminded that humans are a blight on the environment. Back in class they will be told that we use the wrong kinds of fuel, and we are melting the Polar Ice Cap causing thousands of innocent Polar Bears to drown. Students will be told that they must prepare to live more modest lives than their parents, reduce, reuse and recycle. Our collective guilt can only be assuaged if we are GREEN!

Thankfully most students will not take this to heart, and this lesson will have the same effect on school children as telling your own kids to clean their room - it won't happen. The temptations of technology, of having fun for its own sake, of living this life while you can, are the things that will drive this group of children. They will pay lip service to the new environmental religion but that's all. Either that or they could be driven to this sort of thing: No Impact Man. Ugh!

Unfortunately our governments do not just pay lip service. Pressure from within, from special interest groups and industry, have caused the Ontario government for example, to misallocate funds on our behalf (they are good at it). A recent deal with Samsung Corporation will have Ontario consumers paying far more for wind and solar electric power than the market price for electricity. Up goes our electric bill! Who needs the Machiavellian "cap and trade" schemes that were being touted at the Copenhagen Climate Conference last December. The McGuinty government is doing it through the back door. Wind and solar look good, but cost lots and are somewhat intermittent, so conventional power generation must be built as well to ensure adequate power production. Nuclear is also climate friendly, but very expensive and prone to premature breakdown as we have seen from half a century of use. No one makes money on nuclear power, more government subsidy.

The McGuinty government will also give tax breaks (up to $10 000) for electric cars which have no emissions! if you happen to forget how electricity is produced. Oh well, it looks good and that is what is important.

We have been told in the media and by politicians that the new economy will be GREEN, thousands of new jobs will be created. Does this mean that entrepreneurs are rushing to invest in all things green? No, most of the money is coming from government coffers which are pretty empty these days, so the green future will be financed by debt, and those children who are being indoctrinated today will indeed have a more modest future. Happy Earth Day.

Pandering to the electorate

Allen Small — Tue, 20 Apr 2010 16:15:00 +0000

It seems the government of Ontario is gearing up for the next election, already. There is just a year and a half to go and the Liberals of Ontario seem to be coming out swinging as protectors of the little guy - a traditional NDP ploy.
In the fuzzy economics of government, Premier Dalton McGuinty has made some fuzzy statements lately to "help" us all cope with rising costs and rising expectations.
McGuinty will protect renters from greedy landlords, protect the environment from....well... from us, and protect us from greedy pharmacists, and its still early days. The National Post has a great editorial on the doings of Dalton here, it's a must read.

This week we will pick on teachers

Allen Small — Tue, 20 Apr 2010 01:02:00 +0000

The Globe and Mail has just completed a nine month investigation in which it has discovered that the largest school boards in Ontario waste money. HELLO! What a shock! They should have asked me, I would have sped up their investigation. Look what the Globe decides to pick on.
The Globe discovered that school boards would rather hire experienced retired teachers than inexperienced new graduate teachers to cover for the contract teachers who have an extended illness or are on mat leave. This is absolutely true, but lets back up a minute to see if its crazy.
Most of you reading this are not, or have never been, a school teacher. Imagine being absent from your job for a day or two, the likelihood is that no one was hired to replace you for that time. Upon your return you catch up on the work back-log or even do some of the work from home. Not teachers; if the teacher is absent he/she requires a substitute, and that sub must be given instructions by the absent teacher. For short periods of time even freshly minted teachers may be able to handle such an assignment, hell a door stop probably could. What about extended absences? Would you trust an inexperienced teacher to deliver the program and manage the classroom for several weeks or longer? Well, neither do most contract teachers or their Principals. Realistic new teachers realize this, and accept being paid on a graduated grid (when they get a contract) over ten years, because they are most incompetent when they start and become less so over time.
The Globe journalists seem to be hung up on the pay (no wonder), the retired substitute gets the vaunted teacher's pension, AND is paid at regular pay rates for the long term substitute job; not bad (to a point). The journalists are jealous because their jobs have been lately on tenterhooks, so who can blame them.
The issue here is not just double-dipping retired teachers preventing fresh young blood from entering the profession, its much deeper and wider than that. The issue is that public sector unions and governments have been in cahoots for years and now the chickens have come home to roost. Governments are looking for ways to save money and reduce their spending and the past deals based on old assumptions are no longer appropriate. The apparent waste in hiring substitutes needs to be addressed - but the unions/federations will not go quietly.
It's not just teachers, what about retired hydro employees who go on consulting contracts for their former employer? What about unionized LCBO workers who contract deals to sell liquor? Union people must sell liquor? That's a skill?!
The crunch is coming folks, the public sector unions will be dealing with cash strapped governments at all levels soon and changes will be required. I hope the Globe does more of this digging, the voters need to know.

A challenge to Canadian journalists

Allen Small — Wed, 14 Apr 2010 18:33:00 +0000

Tomorrow is income-tax deadline day in the United States. In Canada we follow two weeks later on April 30.
As a journalist, John Stossel does not hesitate to skewer both people and practices that he feels stray from the ideas of fundamental liberty. Today he writes about the complexity of income tax in the United States, read it here.
Income tax in both Canada and the US has become part of our daily lives - like brushing your teeth and taking out the garbage. Most things that we do on a daily, weekly or even annual basis are fairly simple. You shovel the snow, cut the grass, paint the garage - stuff like that. You might even hire someone to do these things for you, but that is strictly voluntary.
Income tax has become so complex that many people MUST resort to outside help, like John Stossel. Lets put aside for a moment the size of the tax, the questionable value for money that it delivers, and the coercive nature of this obligation. Why does it need to be this complicated? Where are the Canadian journalists that might inject this issue into the daily conversation?

Raising the minimum wage (Part 2)

Allen Small — Mon, 12 Apr 2010 18:18:00 +0000

In Part 1, I pointed out that by arbitrarily ignoring productivity and increasing the cost of production (by raising wages) the government effectively creates money out of thin air. No new wealth is created by producers, but costs have increased. Ultimately more money must be printed (injected into the supply of money) to adjust to this new situation which devalues the existing supply of money and adds to what we call the inflation of our currency.
As for employers (the creators of wealth), their labour costs have been increased by government edict, and in order to stay competitive they must raise their prices or reduce there input costs by releasing staff. This effectively prices the lowest skilled workers out of the "legal" workforce. In Ontario this month, employers must decide to either pay their bottom rung of employees $10.25 per hour, let them go, or shorten their hours worked. Alternatively employers may keep wages for their more skilled workers lower than they may otherwise be, creating a class of under paid skilled workers that cannot secure a decent living wage (more about that later).
I'm sure this Ontario government action, raising the minimum wage, is motivated by the best intentions of helping the working poor; the irony is that it may be doing exactly the opposite.
The people of Ontario are fortunate to have one of the most robust and wealthy economies in the world and as a result we have one of the highest standards of living in the world. And yet by my strictly unscientific measure, poverty seems to be increasing.
In my experiences living in the Greater Toronto Region (GTA), one of the fastest growing regions in the country, poverty was something I was always aware of. While my own family struggled as I was growing up, I don't ever remember being hungry. In 1983 one of the first food banks was created to address the problem of hunger in the GTA. Now 27 years later, this and other food banks have sprung up and food donations during key holiday periods has become a ritual in our society. The food banks have persisted during good times and bad and they don't just cater just to the unemployed. Today in the midst of the Great Recession over 30% of food bank users are employed earning an average $10.90 per hour working an average 20 hour week. Food bank users have increased in those 27 years (by the way inflation went up 103% in that time!!) despite government programs to address the issue of poverty, and despite raising the minimum wage. In fact Ontario began a poverty reduction strategy called Breaking the Cycle in December 2008 with a set goal of reducing poverty in children by 25% in 5 years. All of this in my view is the wrong approach.
In my view raising the minimum wage increases inflation, increases unemployment and creates an underclass of workers that cannot earn a living wage. To get a better understanding of some of these issues let me direct you to some of these sites:
The Ludwig von Mises Institute; Economics in One Lesson; and the Freeman Online.

John Stossel – What Am I?

Allen Small — Wed, 07 Apr 2010 20:30:00 +0000

Yesterday I suggested that people should check out John Stossel's Junk Science program on YouTube. I also noted why I like Stossel, and why I continue to like his work. It's almost as if he were reading my blog (not likely). Today to publicize his FOX Business Network show he writes "What am I?". Perfect, have a look.

Junk Science – A refreshing look at things we believe

Allen Small — Tue, 06 Apr 2010 22:53:00 +0000

I've watched John Stossel's rants about "Junk Science" for years when he was a correspondent on the ABC program 20/20. As a former science teacher I've even used Stossel's program in video tape form to help teach or at least stir up some controversy among my students.
Today Stossel works for the FOX Business channel, which I don't even get, but thanks to the magic of the internet and YouTube I can share with you Stossel's latest foray into deflating some commonly held beliefs regarding science. There are few journalists that I know that have the enthusiasm and passion of Stossel. Better yet he has a libertarian fire in him that no one can seem to quench. This is in five parts and deals with everything from nuclear power to global warming to plastic garbage bags. Enjoy:
http://www.youtube.com/watch?v=MLRoeHXV-xo

Energy from Space

Allen Small — Mon, 05 Apr 2010 22:27:00 +0000

Last week in my "Earth Hour" rant I mentioned how human technology can distort carrying capacity and make a liar of Thomas Malthus . Malthus was one of the first to suggest the idea of limits to (human) population growth. The contrary influences of disease, famine, and war were outlined in his volumes Principles of Population. Of course he was proved wrong, again and again by the ingenuity of human technology.

Remember the whole Earth Hour thing was a reminder that we need to be aware of our impact on the environment and we must cut back our use of resources. For many this is a “motherhood” issue that has spread far and wide and is now infiltrating the public conscience. I can’t disagree with many of the ideas because waste is well, wasteful.

So when an idea is floated regarding energy production that is not the typical of the conserve, wind power, nuclear and solar capture stuff that is already out there, it may be wise to listen. Today in the Globe and Mail Neil Reynolds presents such an idea that may change the energy equation for the future and us. The idea is being pushed by the National Space Society and it even has a Canadian connection. The idea involves capturing solar energy in space (via a very large solar panel array) and "beaming" it down to Earth. Check out the pictures here. Interesting idea, could be a game changer, who knows.

Raising the minimum wage (Part 1)

Allen Small — Fri, 02 Apr 2010 22:28:00 +0000

Ontario's minimum wage increased as of March 31st, 2010. The general minimum wage increased from $9.50 to $10.25 per hour and so were several other wage categories clearly posted on this website. On the same day an article in the Globe & Mail by Jim Stanford (CAW) outlines his thoughts as to why this increase was "a reason to celebrate". On the surface it seems that this action by the McGuinty Liberal government was designed to assist the working poor and raise their living standard. But all economic actions have at least two sides and this action bears some close scrutiny.
In an unfettered market, wages and salaries are calculated by employers on the basis of the employees productivity. Productivity is a measure of the employee's output, and for a business to succeed, that output must be greater than the price of the employee (wages) and all of the support costs that allow the employee to be productive. The difference is profit, and maximizing profit is the goal. Employees that achieve that goal, deserve a fair wage, and in a competitive market their skills can be shopped around to the highest bidder. Every employee has a price (wage level), usually commensurate with their talent, skill and experience. As these increase, the employee becomes more valuable and in an unfettered market the employee can demand a greater price - to a point.
When a government steps into the market and arbitrarily raises wages (across the economy) , it does so by ignoring productivity. The government only looks at one side (employee) of the economic equation. The link between the price of labour and the price of good and services is irrelevant to the government action. In fact the government assumes that employers will somehow absorb the added cost. What if the employer passes on the cost by increasing the price of their goods or services? What if this happens throughout the economy? The costs are passed on and prices for goods and services increase. Does this benefit employees? I think, eventually they are back to where they were in terms of living standard. Am I wrong? (Part 2, later).

Flat tax good for Canada too

Allen Small — Wed, 31 Mar 2010 19:14:00 +0000

Did you submit your 2009 income tax form yet? Do you ever wonder why it is so complex? And then there is the paradoxical situation where the government gives us tips on how to save income tax and offers "tax breaks" if we perform certain actions then provide proof. Talk about manipulation. That is the carrot-and-stick approach to controlling us that governments in Canada and around the world seem to have perfected. They want, no need your money, as much as possible NOW! But they are willing to play a game with us all and see how clever we can be at reducing or avoiding payment. Some of us even hire people to avoid payment - doesn't that seem ludicrous?

The income tax in Canada was a temporary measure instituted by the government in 1917 to help finance World War I. It was so easy to put into law and so easy to keep, that here we are 93 years later and it has become a fixture of life. The government even jokes about it on their website. But most of us never really analyze what we get in return for this huge expense, maybe we should. In almost very other aspect of our lives we carefully shop around for the various goods or services that we use. There is choice, we buy this car not that one, we choose that peanut butter, not the other - choice is everywhere. Not in government "services" - someone else chooses for us but we pay. Of course they must know what they are doing, right?

About this time last year I wrote about the Fraser Institute's flat-tax proposal. You can see the tax form for individuals in the corner. It's just ten lines, simple, no loopholes. But if it were instituted it would destroy the industry built up around tax preparation, CA's, lawyers, publishers, tax preparers.....it boggles the mind. The government would have to bail them out....we don't want to go there do we? You wonder just who is the government working for, who are they protecting? Is it us?

This week Dan Mitchell of the CATO Institute released a flat tax proposal for the Americans. It's worth a look, it's good for Canada too.

http://www.youtube.com/watch?v=nhUOpNve1bY

Canadian health care, like saving the melting snowman

Allen Small — Mon, 29 Mar 2010 15:37:00 +0000

Michael Bliss has a very thoughtful and sobering look at the sustainability of the Canadian heath care system today in the Globe and Mail. He likens care for the sick to keeping a snowman from melting, "the more we succeed at protecting the snowman, the more expensive" the costs.
Professor Bliss offers "no practical panaceas, quick fixes or easy answers". But I love these paragraphs with my emphasis added as he offers up possible solutions:

"Nor are the political gatekeepers of most health-care systems, certainly not Canada's, willing to unleash anything like the cost-reducing force of unrestrained competition in the health-care marketplace. It seems counterintuitive to suggest that flooding the market with doctors, nurses, hospitals and laboratories, all competing fiercely with one another, might actually reduce costs. Although other industries work this way – think about food and housing – free enterprise in health care is an experiment we are deeply afraid to try.

If we can't hold the line on health-care costs, how can we keep on paying? When governments take responsibility for health care, their only options are to raise taxes, run up debt and squeeze spending in other areas. All of this is happening in Canada, with no end in sight."

Read the article for yourself, unfortunately Prof. Bliss makes so much sense he is likely to be ignored. But the words are out there and the idea needs to be spread far and wide.

Earth Hour 2010

Allen Small — Mon, 29 Mar 2010 00:52:00 +0000

The one hour voluntary power outage was repeated last night. Lots of fanfare in the media locally, as if it meant something. The WWF who sponsor this annual event do it to raise consciousness for the environment. That's fine, it is good to be conscious. The problem of course is that these eco-groups like WWF, want concerted government involvement in all aspects of our lives because we - humans - are the scourge of Planet Earth. Our technology, our fecundity, and resulting billions, they say has raped and pillaged this planet and stolen habitat from organisms great and small.
One of the most important biological concepts taught in any basic environmental course is "carrying capacity". Usually it is used to describe how many organisms can be sustained within an ecosystem. The entire planet of course is a finite ecosystem and it has a carrying capacity. So more people, less of some other creatures in a natural system. Human technology can distort carrying capacity and make a liar of Thomas Malthus, and it has. Even so there are limits, and groups like WWF that support conservation of habitat and creatures are by implication advocating the downsizing of the human population. Because of the limits to growth, in many respects it is a zero-sum game. It's only a problem if you are among those going to be "downsized". How is downsizing accomplished? One way is to suppress technology, the thing that gives humans the "edge" on planet earth. I wonder, is that the unstated goal of the eco-groups? A return to simpler times, less technical, more natural, organic, back to the earth. The symbolism is certainly there, turn off the power en mass world-wide, light candles to dispel the darkness and be conscious of your carbon footprint. It has a folksy attraction, singing 'round the camp fire, who doesn't like that? It sounds good, but, be aware of the implied and unstated, that part is worrying.
By the way here is what I said last year.

Ann Coulter’s Canadian Trip

Allen Small — Sun, 28 Mar 2010 00:04:00 +0000

Ann Coulter's recent visit to Canada has revealed some disturbing aspects of Canadian society.

We are censored here in Canada by each other, our overwhelming desire to be politically correct, and by government, through various "hate laws" - "sex laws" in the federal and provincial criminal codes. Most of the country (except maybe Quebec - see their niqab ban) bows to the sanctity of multiculturalism, forgetting that it's not the many cultures that make Canada great, but the rules and rights that protect individual Canadians in their daily lives that make this a great place to live. The peoples of those many cultures came here to escape the bad rules in their former countries. Speak against the government in many countries and face jail time or worse. But Canada like most countries have some restrictions on free speech, the United States being the exception (although with Homeland Security I'm not so sure any more).

The right of free speech either exists in a free society or not, there cannot be some kinds of free speech - some things allowed, but not others. That is difficult to stomach sometimes, hateful things are said, maybe provocative things, but unlike physical violence hate speech can be easily dismissed or argued against. Purveyors of hate if allowed to speak can be pointed out and identified. It's better to know your foes then to have them hide, I think.

So Ann Coulter's arrival in Canada was bound to cause consternation especially among multicultural elements at universities (because of her comments on Islam post 9/11), and I'm sure Coulter and her retinue were counting on the publicity that would be generated. Well that worked.

Coulter is a reality NEWS TV/Radio entertainer. She is to media what the contestants are to Survivor. The reality NEWS TV/Radio talking heads make for cheap programming for NEWS media outlets. No need to send out real journalists to dig up good stories around the world (expensive), just put on the talking heads and let them bash it out (good ratings), and by the way they'll do it for cheap so they can push their latest book. That is Ann Coulter.

The non-story of Coulter's arrival to speak at various Canadian universities was made into a story by the media. There are lazy journalists (or cheap media organizations) who prefer "streeters" (media jargon for street interviews) to real news. Coulter is an attractive shit-disturber, let her do her thing then record the "street" comments of the students, easy story. That is what happened.

The reaction at the University of Ottawa was best characterized by Ian Hunter in the Globe and Mail (full column definitely worth reading):

"Our universities can best be understood today as finishing schools in political correctness. From pre-kindergarten days, students have been brainwashed by the liberal consensus on all issues – political, moral, social. The university exists to round that off with a little learning."

Thus Hunter explains the reasons the "louts and yobbos" prevented Coulter's Ottawa appearance. In the '60's, and '70s Canadian governments advocated multicultural policies and politically correct groupthink for all those teachers who now teach in our schools all over the country. It's no wonder students can't face controversy, they think their only recourse is to ban controversy. It's no wonder our politics seems boring to Canadian students - it is boring. Canadian politics is grey compared to the red-white and blue of our American cousins. Remember Canada's motto is "peace, order and good government". Well time to shake things up.
Remember these wise words I recently re-read from Ayn Rand: "No one’s rights can be secured by the violation of the rights of others."

American Health Care Reform

Allen Small — Wed, 24 Mar 2010 15:06:00 +0000

The so-called health care reform bill has been passed in the States by a very divided Congress. Not one member of the Republican Party voted for it. The Bill that was passed is really health insurance reform, and it requires all Americans to buy health insurance whether they can afford it or not. Those who can't afford it will be subsidized and its estimated by 2014 when the thing takes full effect 95% of Americans will have insurance.
I'm sure that the American system of health care is broken, but I have strong doubts that this new Bill is the solution. It is supposed to save money, well living in Canada I know that health care costs are rising at an unsustainable pace and eventually something will have to change. The Americans will likely find that their costs will also rise much faster than anticipated. This short video outlines three reasons why:
http://www.youtube.com/watch?v=Un505mz35dY

During the health care debate in the U.S., Michael Cloud of The Advocates for Self Government proposed six simple ways to dramatically cut costs for medical care without it costing taxpayers a penny. Here is what he wrote:

1. Allow price advertising. Let pharmacies, doctors, hospitals, and laboratories to publish their prices for goods and services. Eliminate all laws, regulations, and government provisions that hinder or prevent medical providers from posting their prices.

Charges for the same medical procedure can vary 30% to 300% within a 100-mile radius. But without price information, patients can't shop for the best value.

In the 1970's, U.C.L.A. Economist Sam Peltzman compared the costs of eyeglasses in states that allowed price advertising and states that outlawed it. Results? Much lower prices in states that allowed price advertising.

2. Let all Americans buy prescription drugs outside the United States. Do NOT force them to travel abroad. Allow them to have the prescription drugs shipped to their homes.

I've seen the 30% to 60% savings in prices of prescription drugs purchased in Mexico.

International competition for prescription drugs will drive down domestic prescription prices.

3. Let all people buy medical insurance across state lines. In New Jersey, a single man would pay $4,000 for medical insurance. If he lived in Pennsylvania, he'd pay $1,500. If the New Jersey man could buy medical insurance from a Pennsylvania provider, he'd save $2,500 a year.

Imagine this all across America.

This would cut medical insurance costs for millions who already have needlessly overpriced premiums.

AND, if the American Enterprise Institute study is correct, this would make medical insurance affordable for 12 million uninsured Americans.

4. Let doctors and patients negotiate discounts for paying cash. If a patient saves a doctor the time, trouble, delay and cost of dealing with insurance companies, Medicare, or Medicaid - let the doctor and patient share the savings.

5. Let patients, doctors, and hospitals enter into into legally binding, limited-liability contracts. This would reduce the cost of medical treatment by reducing the cost of malpractice insurance.

Just as Prenuptial Agreements limit marital risk, limited-liability contracts will limit medical risk.

6. End all government mandates that require businesses or individuals to buy medical insurance. End all government mandates that punish and tax those who do NOT buy medical insurance. Make insurance companies earn our business with lower prices and better quality - rather than lobby government to compel us to buy medical insurance by force of law.

Canada’s Action Plan – Fixing broken windows

Allen Small — Tue, 23 Mar 2010 17:50:00 +0000

You have probably seen that picture on the left, either at the roadside or in the media. It advertises the Canadian government's plan to create jobs in the wake of the Great Recession.
Have you ever wondered how governments create jobs?
Governments obtain income from various kinds of taxes, fees, duties etc. Basically they redistribute a large portion of the wealth of the nation. Adding to the bureaucracy and hiring more government workers certainly creates jobs, but does not add to the wealth of the nation in fact it increases the size of the redistributed portion. Government can also hire private industry to add or improve government supervised infrastructure - effectively "creating jobs". Again this is just money that must be taken out of the private sector - all of us - through greater taxes eventually, or as often happens the government prints more money.
Suppose your after tax income was $6000 per month. That might be enough to take your family on a nice vacation for a week, but your normal expenses that month like mortgage, food, phone, cable etc., would not be paid unless you used savings or borrowed against future income. Generally governments borrow against future income frequently going into debt (deficit spending) which is added to the total debt of the government. The government of Canada and many other countries have done exactly that over the last couple of years. Does it work?
Not according to the Fraser Institute in a report issued today on what caused the economic turnaround we have experienced lately. The report can be downloaded for free, and it basically attributes the turnaround to private investment and exports.
Creation of jobs rarely works the way government claims. In a very entertaining video John Stossel, explains this type of thinking is what economist's call the "Broken Window Fallacy".

http://www.youtube.com/watch?v=UPmo2e-bAMQ

Involuntary Charity by yet another tax: G8 Style

Allen Small — Mon, 22 Mar 2010 16:30:00 +0000

Canadians have every right to feel over-governed. I pay taxes to my local Municipality, the Regional, Provincial and the Federal governments. Each successively higher level of government seems to have less beneficial impact on my life and I have less influence on their spending as my "vote" becomes more diluted.

What if I told you that a Super-Federal government, a world government also wants your taxes to finance its projects? That is the proposal of some members of the G8 countries (see photo from last G8 meeting). The tax is called the Financial transactions tax (FTT), and it is tiny (anywhere from 0.005% to 0.05% depending on sources) but its revenue generation is huge. That's because the tax would be levied on financial transactions including stocks, bonds, foreign exchange and derivatives (futures, options etc.) trades world-wide. Its estimated that the tax would generate somewhere between $447US billion and $1022US billion (thats a trillion!) annually, not chicken feed. Apparently Canada does not support this tax. Julio Montaner and Stephen Lewis, in a recent Globe and Mail column think that Canada needs to get with the program.
"Once a leader in health and equity, Canada is now the only G8 country that is determinedly, inexplicably and shamefully opposed to an innovative financing tool – the financial transactions tax (FTT) – that would produce billions of dollars to meet critical global health needs."
These guys go on to say that:
"It's one thing to oppose heavy taxes in a time of economic hardship. But the FTT, which has been endorsed by Britain, France, Germany and the International Monetary Fund (with friendly interest shown by U.S. President Barack Obama), would levy a fee so small (as little as 0.005 per cent) on the millions of daily bank financial transactions that one would need a magnifying glass to even notice it."
How could economies lose as much as a trillion dollars annually and not notice it? Would you not notice that leech on your leg perpetually sucking your blood? I think eventually you would. That is the essence of this idea, charitable donations are "too voluntary" according to Montaner and Lewis. Funding for global health needs must be institutionalized and the best way to do that is to have this esoteric FTT that common folk won't even notice. Sneaky eh? Imagine how diluted your "vote" is as a member of the G8 countries?

For those of us that live in Southern Ontario be aware that the next G8 meeting is in Huntsville Ontario, cottage country this June. You can be certain they are going to discuss the FTT. Time to exert whatever influence you have, write your MP and MPP and let them know that voluntary charity is the way to go. Do it.

Libertarians at Manning Centre

Allen Small — Sun, 21 Mar 2010 16:58:00 +0000

The Manning Centre Barometer was held last week in Ottawa and a Libertarian group was there hunting for libertarians. This photo is from a Maclean's-on-line article that shows how the Nolan Chart was being used to discern a participant's political leanings.

Unfortunately the article associated with the photo failed to mention the libertarian presence instead it spoke about the rise of social conservatism in Canada. Libertarians are not social conservatives, on the contrary the libertarian attitude is extremely liberal in that regard.

The article's author Paul Wells, seems to be saying that there are dangers in a Harper Conservative government because it still carries along the baggage of social conservatism the so-called "hidden agenda". I agree, and of course as the Canadian electorate ages (especially the Boomers) both fiscal and social conservative attitudes rise. This attitudinal shift was illustrated in the article by pollster Allan Gregg.

This creates opportunities for Libertarians in Canada. Libertarians demand fiscal restraint on government while simultaneously advocating the traditional "Canadian" attitude of social liberalism. To paraphrase Pierre Trudeau, the government does not belong in the bedrooms of the nation, or any other room for that matter.

Environmentalism: Descent into irrelevance

Allen Small — Fri, 19 Mar 2010 00:58:00 +0000

I was scanning the "Mail Bag" in the most recent issue of MACLEAN'S (March 29th, 2010) and read a letter about plastic grocery bags. It seems that in Atlantic Canada, Loblaw's has dropped a five-cent fee for grocery bags because customers were switching to Sobeys rather than pay the fee. The letter writer went on to say "apparently, cheaper is more important than greener." Of course in some places (Toronto) the municipal government (one of the dumbest, most incompetent in the country) has made it a law that retailers will charge five-cents per bag in an attempt to curb their use.

Fortunately I don't live in Toronto, where the municipal council believes it knows how people should live their lives. My municipal council has other stupid laws - but not that one....yet. But I digress.
In today's Globe and Mail one of the regular columnists (Lawrence Martin) had an interesting comment about Elizabeth May and the Greens. The gist of the column is that May (leader) and her Party are slowly losing ground. Of course she has no elected MP's in the parliament (so not much to lose there) and the Greens seem to be a one issue team. That issue - with many names: environmentalism, climate change, green shifting. All of that seems to be fading away from the media spotlight and the public consciousness as Martin suggests, especially since the Copenhagen non-event. Whatever the reason, it is a good thing. Environmental responsibility need not be forced down each of our throats by zealots like the Gore's and Suzuki's and by governments that seek to pander to them.
Maybe now problems with the environment will be put into perspective, along with all the other important issues of the day. Who knows maybe people will start to see that the biggest issues can be dealt with right at home, right in your own country, your own province or state, your own town.

Is the US Tea Party movement Libertarian?

Allen Small — Tue, 16 Mar 2010 21:56:00 +0000

It's a good question. They seem to want to limit the size and scope of government but, and its a huge BUT, they resemble too much the kind of Republicans that were just booted out of Washington last year. The Tea Party is a hodge-podge of disenchanted voters without a clear direction or director. Check out this libertarian point of view:
http://www.youtube.com/watch?v=GbjyqKUZBFk

Welcome to Loonieland

Allen Small — Sun, 14 Mar 2010 17:58:00 +0000

In this video the Canadian Taxpayers Federation explains the new Federal Conservative Budget for 2010. Its an austerity budget so government will spend less, right? MMMMmm maybe not:
http://www.youtube.com/watch?v=k4emBsiquyI

Meaningless terms: Right-Left, Conservative-Liberal, Republican-Democrat

Allen Small — Fri, 12 Mar 2010 23:28:00 +0000

Rarely do I read Rick Salutin's column in the Globe & Mail, and when I do I never agree with his comments. Today was no different but at least it caught my attention, so here I am.
Salutin's article talks about politics and religion, right up my alley. He points out that politics and religion are so linked now that secularists are leftists and religious types are right of centre. He says this split is clearest in the United States and he gives a quote from Bill O'Reilly the FOX News guy who said that the Globe and Mail is secular and therefore left-wing. Salutin then continues to ramble on finally talking about Avatar and Gaia.
For me this column just highlighted the fact that political terms like "Left and Right" have really no meaning at all and the language of politics must adjust to accommodate reality. If you've read any of my blogs you know that O'Reilly's simple categorization doesn't work, and it doesn't work in many people that I know.
So I propose using the terms "Statist" and "Libertarian", this way we lump guys like O'Reilly, Salutin, Leftists, Rightists, Liberals, Conservatives, Democrats, Republicans, Socialists, Communists, Fascists, and whatever into the category STATIST. That's because all these so-called political beliefs really advocate varying degrees of State control of individuals. Libertarians don't.

Ironically Glenn Beck, also of FOX News claims he is becoming Libertarian and used the Nolan Chart on his TV show recently to underscore my case for a new political map. First he's no Libertarian, but I loved the idea of getting away from the typical two-dimensional Left-Right spectrum of political thought. Who knows he may have actually done us a service!
But back to my point, let's start using terms that have meaning. Once people understand the new terms and their meanings things will be a lot clearer at election time, choices will be more stark and obvious. It couldn't hurt.

Growing like topsy = Canadian Bureaucracy

Allen Small — Wed, 10 Mar 2010 17:43:00 +0000

Today in the Globe and Mail, Neil Reynolds has a great column that demonstrates how governments grow. The article Civil service: Too many jobs, too little service should be mandatory reading for all elected officials, and come to think of it for all electors as well.
Reynolds describes an incident in the town of Orleans, a suburb of Ottawa, where a plastic cow on a roof seemed to contravene a bylaw and required hiring a consultant (at $20 000) as part of the "public consultation". The story is almost laughable if it were not for the fact that its true and it illustrates the bigger issue that the public sector this year is larger than the public sector last year. Not only does that cost us all more, but those individuals who "work" for government are not working in the private sector, therefore not creating wealth, not creating jobs and not adding to the productivity of Canada. Last October I wrote about how big government stifles enterprise and reduces productivity. Of course if government grows faster than the economy, government must be financed by borrowing against the future. These loans (usually bonds) become a larger fraction of our GDP, sometimes so large that they actually endanger investor confidence in Canada. Have a look at this page that compares GDP vs. National Debt by country. While Canada's debt to GDP ratio is over 62%, take a look at Zimbabwe: 241%! Which country would you rather invest in? While Canada might look good in comparison, government continues to grow and if you read Reynolds' article to the end, you will appreciate the irony in Jim Flaherty's recent budget. It's really no joke.

Authoritarian Paternalism

Allen Small — Sat, 06 Mar 2010 21:16:00 +0000

The photo is a satellite picture of the island of Hispaniola; the red line divides the island into the Dominican Republic on the right and Haiti on the left.

My fellow Canadians are quite familiar with the Dominican as a sunny refuge in winter, and a source of some very good baseball players. Haiti is known for its poverty and its chief export to Canada, people. Over one hundred thousand Haitians live in Canada, mostly in Quebec. These are hard working proud people that have made substantial contributions to Canada including giving us our current Governor General.

I’ve avoided writing about Haiti after the catastrophic earthquake in January because I had little to add to what was then, and still is a desperate situation. Haiti is a basket case as far as governance, economics, rights, freedoms, justice, in fact by any measure one might choose. Of course the problem is that Haiti was a basket case before the earthquake, now, well it’s a head shaker. Before the earthquake there were thousands of non-governmental organizations (NGO's) pouring money into Haiti, now that number has increased and governments have joined the rescue. Will it save Haiti? I’m not optimistic. Today in the Globe and Mail my view is shared by Margaret Wente, have a look. Her view is that Haiti, if it is to be saved will be saved by its chief export to places like Canada, its people.

Computer models vs. Reality

Allen Small — Tue, 02 Mar 2010 17:35:00 +0000

The recent earthquake in Chile has caused scientists at the Pacific Tsunami Warning Center in Hawaii to reexamine their computer models. While the Chilean earthquake did produce a tsunami, its most devastating effects were local and quick – mostly along the Chilean coast and nearby islands. Even though this was a monster quake (Richter 8.8) the feared tsunami that might hit Hawaii was miniscule compared to the South Asian tsunami that killed a quarter of a million people on Boxing Day 2004 as far away as Africa.
Computer models are relatively new tools used in many science related fields, like engineering, weather forecasting and of course climate change forecasting. Models always need to be tweaked to accommodate all known variables and then need to be back tested against actual events to see how the models performed. That process is ongoing, continuing toward bringing the model closer to reality because the science is never settled, the probabilities are just shifted.

More climate meltdown

Allen Small — Tue, 02 Mar 2010 01:51:00 +0000

Even the mainline press is starting to question the "settled science" of climate change. A recent opinion in the Wall Street Journal Online suggests that the IPCC claims on impending climate doom could bear with more scrutiny. The article challenges some IPCC ~~claims~~ spin and spins it in a different direction. Of course as these contradictory positions mount up, public opinion becomes more confused than ever over a very complex issue. The good news is that the likelihood of government action may diminish.

Hockey is Golden

Allen Small — Mon, 01 Mar 2010 01:13:00 +0000

Isn't Hockey great without the dumb fights? In Olympic competition fights are banned. The NHL should copy this rule.

Climate Change Humour

Allen Small — Sun, 28 Feb 2010 19:38:00 +0000

I think this is funny, I wish it were true. Double-click to see it enlarged. Its from:
http://www.ihatethemedia.com/the-pseudo-science-is-settled-new-hockey-stick-graph-shows-unprecedented-rise-in-global-warming-skeptics

An IPCC prediction gone awry

Allen Small — Sat, 27 Feb 2010 18:49:00 +0000

The United Nations Intergovernmental Panel on Climate Change, the very name does not make me feel warm and fuzzy all over. Any belief I may have once nurtured that the United Nations is the solution to the ills of the world has long gone, along with the belief that the government is my friend and is there to protect my rights. So you can imagine my bias towards the IPCC. Their publications and predictions form the foundation of Climate Change activism around the world. The pearls of wisdom shed by the IPCC are examined like chicken entrails by a voodoo medicine man to discern what calamities may befall us if we don’t defer to their predictive powers. So when a prediction of the IPCC doesn’t jive with reality it should give us all reason to be skeptical.
Certainly climate change has been occurring, those of us in Southern Ontario are acutely aware that this entire region was covered by kilometre thick ice sheets several times throughout history, the last time was roughly 13 000 years ago. I live within short driving distance of the moraine ridges and drumlins left by the glacial retreat. The Great Lakes themselves are stark reminders as glacial puddles left by the continent sized glacier. The glaciers have retreated to the far north where they still exist in alpine regions but now vast areas of Tundra are all that remain in Canada.

This is true in Europe and Asia as well and this fact has meant great changes for the indigenous peoples of the north. In Canada the Inuit have experienced such rapid change that community elders still talk of the good old days. The indigenous peoples of Northern Europe will tell similar stories.

In the IPCC predictions of human catastrophe the greatest impact it says will be climate migration due to coastal flooding as sea-levels rise around the world. They predict that upwards of 200 million people will move as a result, overwhelming cities and creating massive upheavals to those countries involved.

Wait a minute, maybe not, maybe some of these impoverished indigenous peoples will adapt (humans are crazy like that) as they did to the ice ages millennia ago. Remarkable is it not, how a species (Homo sapiens), whose origins were in the savannah of central Africa can adapt to living in the High Arctic? Anyway, I digress, a recent study of the Sami the Inuit analogues of Finland shows that maybe the IPCC predictions are a bit overblown.