Going Our Way?

While the cat’s away, we will take about something other than municipal politics today.

Gaze averted for the past year or so from the train wreck that has become the Ford administration, I’ve been keeping myself occupied with the goings-on at other levels of government. Not that there’s a whole lot more to commend from that view either. But at least it lends one a different perspective.

Which is (Segue alert! Segue alert!) what this country is slowly, incrementally facing, a changing perspective. The Albertazation of Canada, let’s call it where the government is the problem not the solution, taxation is a dirty word and all economic problems can be solved by digging into the ground below your feed and mining the resources.

Or as Erna Paris wrote in a Walrus article from March of 2011, “The New Solitudes”: … an outlook more familiar to Americans than to Canadians, at least since the Reagan revolution of the 1980s. Its organizing principles are a powerful commitment to individualism, and to maximum freedom in every sector. Governments should be small, their powers limited, their taxing capacity curtailed. The market must be free and unfettered. Individuals are uniquely responsible for their failures, as well as their successes, and they cannot expect assistance from the ‘nanny state.’

A twist on an old theme, the two solitudes revisited. No longer English and French with its healthy dose of disregard for those here before any European set foot on these shores. But a new division, grounded in western alienation that may be less geographic than it is philosophical. It’s not that Alberta ever wanted in. They wanted the rest of Canada to be more like them.

Or maybe it’s nothing more than sour grapes written from the heart of what was once the economic engine of the nation. The tables have turned. Power has shifted. Money talks, baby, and these days it’s the west with the deep pockets, Canada’s sugar daddies. The new payer of the piper gets a different tune played. If you want to keep dancing, you better learn the new steps.

Not so fast there, bucko. There’s nothing radical going on here. It’s simply business as usual. What we’re witnessing from this long feared stable Conservative majority government is little more than a slightly bluer tinged Chrétienism.

Take last week’s federal budget for example. Nothing out of the ordinary, no draconian hidden agenda. The new normal. Nothing to see here, folks. Everybody back to work.

You see what just happened there?

It is now taken as a simple matter of fact, plain as the nose on your face that government deficits and debt are due to excessive spending. On bailouts and stimulus spending during the global economic crisis. On pensions and other outrageous luxuries afforded to those not willing to do an honest day’s work in the private sector. We are all now true believers in the Rob Ford maxim that governments have a spending not a revenue problem despite all evidence to the contrary here in Toronto.

Buying into that mantra, Dalton McGuinty’s Liberal government in Ontario instructs Don Drummond not to even consider new taxes as a way of helping to alleviate the provincial deficit. This is a spending problem, remember? Tell us how to spend less not how to generate more revenue.

The flip side of this leap of faith, this embrace of the Alberta way, is that low taxes, cutting taxes creates a robust economy. It’s that simple, people. Although the Ontario government in its recent budget put off further corporate tax cuts, it was seen as a concession, a sop to keep the NDP happy rather than an admission that having slashed the rate over the last few years has generated little economic benefits to anyone but those businesses now paying less tax.

Lower personal income tax rates and the reduction of the GST at the federal level have also proven to deliver somewhat illusory economic benefits. Yet there’s nary a mention of that in much of the budget coverage. Little analysis to challenge the prevailing orthodoxy blowing in from the prairies. Taxes are bad, evil even to some minds. End stop.

No, the only way to turn this ship around, to build a sustainable economy, is to dig our way out. Addition by extraction. Ontario? Quebec? Stop expecting handouts from the rest of the country and get mining. There’s gold (of something else valuable) in them thar hills. Drill, baby, drill!

You see, according to the Alberta way, green may be good in theory but terrible in practice. Where’s the money to be made in wind, solar? Ontario’s very tentative baby steps in that direction have proven to be a bust to those inclined to view alternative energy with scepticism. Nothing more than a vain hope in the eyes of the Globe and Mail’s John Ibbitson.

Never mind what’s been going on over there in Germany, say. That country propping up the European economy at the moment. Its embrace of solar and wind power has helped turn around moribund manufacturing areas in the former east bloc parts of the country. In just 12 years, green energy went from contributing 6.3% of the country’s energy output to now over 20%, creating over 300,000 jobs in the process.

Hmmm, revive a flagging manufacturing base. Reduce dependence on unsustainable fossil fuel sources. Seems like a win-win strategy to those not wedded to the Alberta way.

Unfortunately, there’s little boldness in leadership in that direction currently. Politicians of all stripes have accepted the handcuffs of fiscal restraint to dampen expectations of new ideas and nip any discussion of charting a new course in the bud. Hewers of wood and drawers of water we once were. Hewers of wood and drawers of water we shall continue to be.

Those of us demanding something different are now another solitude, looking forward rather than backward. With a majority federal government intent on reshaping the country and its institutions bit by bit into a decentralized, corporate-minded, neoconservative plaything, we may have to take the prime minister up on his offer to seize more regional autonomy and assume control of our future. A future divergent with the Alberta way. That, to borrow Erna Paris’s title, is our new solitude.

sneakily submitted by Urban Sophisticat

A Little Ray Of Sunday Sunshine

I was stateside a couple weekends ago, jumping at any and every opportunity to get away from this city even for a day here and there to live free from our 24/7 municipal political theatre. It distorts your reality, discolours your perception, upsets your equilibrium. Why, right now, Cityslikr is out cold on the office couch, laptop on his chest, left hand holding a 4/5s empty bottle of kosher wine, and has been since about 9 pm Friday night except for the occasional waking burst to read the news, fire off a tweet or two before falling back unconscious.

Who wants to live their life like that?

When I leave this place, I endeavour to leave it completely, seldom talking about the Toronto `situation’. In fact, as difficult as it may be to believe, the world consists of far more people who know little about our city and nothing about our current mayor. Far, far more people. Carl Sagan sized numbers. Billions and billions.

So I drink up their wilful ignorance and luxuriate in their insistence to care even less. It’s a big wide world out there, folks. Great swaths of the land where Mayor Rob Ford holds no sway.

And there I was in such lovely bliss when my very gracious hosts asked why I wasn’t doing that thing on that blog-y thing that I’d been doing a little while back. Did it go under or whatever you call it when stuff on the internet just ceases to exist? While I could’ve just said ‘yes’, it died and I had moved on, instead I opened up a little on the current state of the city and how, if I paid too much attention, I simply lived with too much rage, so for my own well being, I had to step back and pay less attention.

That was all I said. I did not insist on giving the gory details. Short, sharp and to the point. Let’s move on to another topic, shall we? Who was going to scoop up all those Oscars, huh? Certainly not some French silent film.

But they could feel my pain and wanted to help, I think. After ordering another bottle of red wine, they said they had two words for me.

Buddy Cianci

Buddy Cianci is the longest serving mayor of Providence, Rhode Island. (Interesting fact: Rhode Island is not an actual island). Both of Cianci’s stints as mayor (1975-84 and 1991-2002) were cut short by felony convictions. The first was an assault conviction for beating up a man using a lit cigarette, an ashtray and fireplace log. I’ll pause to let that sink in… It seems Buddy thought the guy was sleeping with his wife.

Seven years later, Buddy was re-elected mayor and presided over a very positive period of urban renewal in Providence while also heading a government neck deep in corruption. Operation Plunder Dome as it came to be known, and when all was said and done, Mayor Cianci was hit with 27 charges including racketeering, extortion, conspiracy and mail fraud. He was only convicted of the one charge, conducting a criminal enterprise but ended up serving 5 years in prison for it.

While he has contemplated a return to political office after waiting out the requisite 3 year time out for convicted felons, nothing has come of it. He remains, it seems, not an unloved public figure, appearing locally on both radio and television. A colourful politician who, when push comes to shove, will probably be judged for his positive contributions to the city he led than the seamier aspects.

“So, you see,” one of my friends said, “any city worth its salt elects itself a ‘Buddy Cianci’ somewhere along the line. You’ll survive.”

Words to live by, friends.

While it may seem impossible to comprehend at this point in time, no matter how bleak the view now, we will survive. We will pick up the pieces that will inevitably be broken, put them back together as best we can and move forward.

The city will survive.

glass half fully submitted by Urban Sophisticat

Debtor Consequences

Yes, since you were asking, I have been conspicuously absent here at All Fired Up in the Big Smoke for the last couple months. In fact, I’ve steadfastly attempted to keep the whole Toronto politics scene at a safe distance. My doctor felt it might’ve been the source of a rash I developed over the past couple years or so. There may be some merit in that diagnosis since both the itching and scarlet redness have noticeably lessened with my withdrawal from the fray.

I step back in at this point, emboldened certainly by the prescribed ointment that I’m using but also to ask a question. I want to know all about this magical land fiscal conservatives and deficit hawks have been waxing on about locally, federally, internationally. A place where governments roam free of deficits and debt while sprinkling loving specks of social services and infrastructure upon their thankful population. Let’s call this place Debtfreetopia or, the Republic of DFT for short.

How exactly does Debtfreetopia do it, I wonder. The theory, as I understand it, goes something like this: unshackled by the deadening burden of interest payments, Debtfreetopia can spend more on all the nice to haves that people seem to want. So beautifully simple and straight forward it’s difficult to understand why not only governments but businesses and households wouldn’t follow such a model. Don’t spend what you don’t have, right?

So save and scrimp and collect all your pennies until you can pay in full for that dream house you’ve had your eye on for 43 years. Car troubles? That old clunker way past its prime? Well, I guess you’re going to have to take the bus until you’ve saved the necessary funds to buy yourself a new vehicle. Finished high school and can’t afford university? Wait until you can, say 30 years down the road. You’ll appreciate it more then. And I’m sure Donald Trump is paying cash and carry building his new downtown tower.

That’s how all successful businesses and entrepreneurs function, am I right? Only build, develop, create those things successful businesses and entrepreneurs build, develop and create with money tucked away in high interest bank accounts, safes and under mattresses. Whatever you do never borrow or go into debt. That is the end of all things good and human. Just like that idiot Polonius told his son shortly before seeking protection from a sword wielding sociopath behind some drapes.

Remember that big meltdown in 2008? Leading up to it, everyone, and I mean everyone, warned all those financial firms not to over-leverage themselves and make bets on risky mortgages. And by ‘everyone’, of course, I mean almost no one. You gotta spend money to make money. (Better yet. You gotta spend other people’s money to make money.) Isn’t that the investment banker warrior battle cry?

To hear the shrill wails coming from Team Ford during the 2012 budget debate over the past few months, one would have to assume that the city of Toronto is as up to its eyes in debt and junk investments as Wall Street was. Tune in even for the briefest of moments and you were sure to hear the words ‘Greece’ and ‘Italy’ intoned in the most ominous, there-but-for-the-grace-of-god, cautionary of manners. If we don’t rein this in, folks, we’re going find ourselves shit out of luck on some Mediterranean beach with only cheap wine and squid to survive. The humanity. The humanity.

So I checked the books when the budget was finalized last week to try and understand the depth of the problem. The $400+ million on debt services charges that the city will be paying seemed awfully big, bordering almost on the out-of-control. If push came to shove, I certainly couldn’t find that amount of money to service my debts. At least not this year. How could a city of 2.5 million mes [pl. me] come up with such a daunting figure?

I got on the blower with Cityslikr and asked how he could be so recklessly cavalier mocking people who were alarmed by such a large amount of money. “Four hundred million dollars, you asshole!” I screamed into the phone at him. “Do you know how many wading pools that would keep open?! How many library books it would buy? That’s more than half of the $700 million of unfunded liability owing on the order of new streetcars! Think of the children! The children, Cityslikr. The children.”

It was at that point of time when my attention was directed toward the other number on the page beside the $419.4 million. “See that?” Cityslikr asked. “Read that number out.” Truth be told, I’m not comfortable with the concept of percentages. Straight up numbers, I prefer. The bigger, the better to scare myself with. Percentages are too nebulous.

“4.5%.”

“Yeah? So what about it?”

“That’s the percentage of the nearly $9.4 billion the city will spend this year that it’s forking out to service the debt.”

Desperate to get back to whole numbers, I tried to brush the statement aside. “Exactly. Over four hundred million dollars we could be spen—“

“How much do you spend on your mortgage a year?” Cityslikr interrupted. “That investment loan you took out just before the market crashed? Imagine all the poor bastards out there paying credit card interest and car loans. Most of us would be deliriously happy to be paying under 5% a year to service our personal debt.”

Well sure, of course. If that’s the way you choose to look at it. It’s so easy to get waylaid by big numbers. Damn, those deficit hawks are good. Just when you think you’ve figured out all their ploys and schemes.

Debtfreetopia is a mythical land of make-believe. Just another ruse to reduce the role of government. Debt has to be manageable, of course. Ideally it ebbs and flows with the economy. Up during bad times, back down in good.

This isn’t a call to, how did the mayor’s brother phrase it last week, spend like drunken sailors. But to demonize debt as some sort of weakness of character, a nefarious government plot intended to ensnare us all, that is not the kind of person, frankly, I want in control of the public purse strings. The clearly don’t understand how economies function.

by the numbersly submitted by Urban Sophisticat