Your money: The untold story

I've said many times I am not an economist, but I am interested in economics, as we all should be. 

My daughter posted an interview with a legitimate economist regarding the demise of the penny. Very briefly here is what the main stream media are missing from this story.

Withdrawn from circulation this week, the penny is suffering a battering of name-calling. An annoyance, a pest, a nuisance – a budget document on the penny’s elimination reads “Some Canadians consider the penny more of a nuisance than a useful coin. We often store them in jars, throw them away in water fountains or refuse them as change.”

But according to Dr. George Bragues, Acting Vice-Provost and Program Head of Business at the University of Guelph-Humber, the real story behind the end of the penny is one that has yet to be told.

Throughout mainstream media, the elimination of the penny is being touted as something we’re all happy to see disappear. But what’s the real story here?

The story that many seem to be missing is, Why has the government been compelled to give up the money in the first place? Why has the value of the penny become so minimal? And that story has to do with how the government has managed money.

How so?

The real story is that over the last couple of generations, we have seen inflation increase on average 2-3% per year. Seems minimal - but over time, that adds up.

We know that it now costs 1.6 Canadian cents to produce each one cent coin. To this end, Finance Minister Jim Flaherty declared the penny as “a currency without any currency in Canada.”

Again, this should raise the question – what has happened here? That the price of the copper that goes into the penny is now worth more than the penny itself is an indication of the government’s inflation of the money supply.

So the fact that we’re giving up the penny should be alerting us as to how the government has been systematically cheapening our currency. That tells me that the government has not managed its money as well as it should have.

Obviously not the message the government would want to send out.

Of course, the government has no interest in declaring that. They can’t say, We’ve inflated the currency for the last 50-60 years, so we’re now going to have to go to nickels as the smallest unit of account.

Also, the economic establishment tends to be in favour of the monetary policy we’ve had in the post WWII era – which has essentially been an inflationist policy, where we tolerate 2-3% inflation per year. Prior to WWII, and certainly prior to WWI, that was not the norm. Throughout the 19th century, prices were either stable or declining. But with the Great Depression – the most seminal event of modern economic history – came an interpretation of that event that has shaped our current policy.

The predominant interpretation of that event – what went wrong, where policy makers failed – has led to a phobia of declining prices, or in other words, deflation. This became viewed as economically destabilizing. And now because of this horror, we’ve since gone with this inflationist policy, which basically says we should do everything in our power to keep prices from coming down, which includes increasing the money supply.

Where do you see this headed?

There is the slippery slope argument – that this will inevitably lead to a recession or even a depression and the next thing you know you’re the new Zimbabwe.

I share the view that at certain times, like now, increasing the money supply out of fear of deflation leads to bad policy. I would argue that this fear of deflation led to the financial crisis of 2008 – and has since led to an excessively easy monetary policy that has put too many people into debt, particularly in the United States and around the world. I fear that the policy now, where we’re pumping up the money supply while having 0% interest rates, is going to create the same sort of distortion – perhaps not in the real estate market, but may appear elsewhere.

Originally posted here.

Rounding OUT the penny

Beginning this week Canadian currency will be penniless, or should I say, 'less the penny.' That's right the penny is passé, about to be rounded out of existence.

For many Canadians, the penny has so little value it's looked upon as an annoyance, an unnecessary weight, for me, a strange way to view money. For the Canadian Mint, the penny is worth less than it costs to make (currently 1.6 cents).

The beginning of the end of the penny is Monday, February 4th, though we have known about it for some time now.  On Monday the mint stops distribution and businesses are encouraged to round all cash transactions up or down to the nearest nickel. As a result the Canadian government will save about 0.004% of its total budgetary expenses by not producing pennies. Apparently they believe 'every penny counts,' a phrase also destined for extinction.

The rounding of cash transactions will likely end up costing everyone just a bit more. Think of how many prices currently end in the number NINE. Lots, it's a gimmick to get customers, so, no more 99 cent sales for CASH transactions. Will 99 cent sales be kept for non-cash transactions? Will that discourage cash transactions in favour of debit or credit? Or will businesses start pricing things that end with '2 cents' -  which will be rounded down to encourage cash transactions, to make people think they are getting a deal? Who knows?

Either way, this is inflationary, and of course it is inflation, the debasement of currency, that caused the disappearance of the penny.

Is this just a Canadian problem? No. The Americans are in the same boat, and according to some sources both the US penny and nickel are in jeopardy. Am I getting carried away when I worry about the revaluation of our money? Well, maybe not in the near future. The Canadian dollar has actually appreciated considerably in recent years compared to its American counterpart. But many think that the US dollar and Euro are doomed. We trade with them, how can we not be affected?

The lesson of history is that the fall of nations is presaged by the collapse of their currencies. It's happened over and over, no fiat currency has survived the foibles of corrupt government practices. This time it's our turn.        

Climate (or is it weather) Consensus

Years ago, whenever Groundhog Day rolled around, the official word for predicting the arrival of spring came from Pennsylvania, the town of Punxsutawney. That was the place made famous in the 1993 classic movie starring Bill Murray.

First of all, its difficult to believe that it (the movie) was 20 years ago, and second, (if I'm not mistaken, and I could be) it was shortly after that movie that prognosticating groundhogs started popping up all over the place like, well, groundhogs.

Wikipedia has a list of some 15 big rodent celebrations, including the largest and original one from Punxsutawney, and many much smaller ones. I guess people saw it as a way to cash in on once-a-year notoriety, and bring in tourists during the dead of winter.

So, I was amused today when my local all-news-radio station announced that a "consensus of groundhogs" agreed on a prediction, 2-to-1 in favour. I'm not certain if it was to be an early spring or six more weeks of winter, but to me that is six-of-one or half-a-dozen of the other, no difference.

Groundhog Day defenders claim that the furry creatures have uncanny accuracy, 75% accurate 90% of the time, which I think means being right about two-thirds of the time, not bad. However a Canadian study (who would pay for that?) claims only 37% accuracy in about 40 cities.

When I heard the news report of a consensus of groundhogs, I thought immediately about the UN and IPCC claims of catastrophic global warming (a measure of my deep respect for this claim). Now, I'm not really equating the IPCC scientists with groundhogs (as much as I'd like to), but their consensus opinion in some ways resembles any consensus opinion, even a groundhog's. 

If the premise on which the opinion is based is faulty, it doesn't really matter how many are in the group that makes up the consensus. They could all be wrong. The problem with catastrophic global warming is, that trying to reverse it by eliminating CO2 as a waste gas, by severely cutting back on fossil fuel use, seriously impacts those of us that live in places that are too cold and or too hot. That includes a lot of people. Then, saying that climate impacts will be felt in 50 years or so, well, that just means I won't see it, and those young enough now to appreciate the dilemma (if there is one) will be seniors by then. 

So, even if we humans are somehow unknowingly tinkering with the climate to some degree, is it worth the pain of slowing the warming? We did not start the warming, the ice age glaciers began melting while our ancestors were using spears to kill mammoths. The warming has continued and is ongoing, and possibly we are hastening the event, but like groundhogs we really don't know whats going on. What I'd like to know is this, do the groundhogs predict weather or climate?        

Who cares about politics?

Imagine drawing a circle on a white board that is about the diameter of a basketball. Then, pretend to make a dot a bit smaller than the size of a pea in the centre of that circle. If the area inside the basketball-sized circle represents the population, that dot represents the number of people who are involved and care about politics, most of the time.

That's how Gerry Nicholls started his presentation on getting the Libertarian message out, back in April of 2011 to a group of us. He went on to say that if another circle was drawn with the diameter of a softball, inside the big one but centred on the dot, the area within the softball-sized circle represents the population that is somewhat involved in politics (especially during elections). The area from the boundary of the soft-ball circle to the boundary of the basket-ball circle, well, that's the majority of the population and they are clueless about politics most of the time.

I used to think that clueless meant apathetic. But look at it this way. The great majority of car owners, have no idea how their car's engine works, or any other system for that matter, but they certainly are not apathetic about the operation of their car. When it works, they're happy, when it doesn't work, well, you get it.

So it is with politics, very few care or are involved with how things work. Why should they be? They rely or the political pros, who are the mechanics that keep the machine of government working. People are far more interested in political personalities than political issues which actually drive politics. What was Michelle Obama wearing during the recent US Inauguration? Was Barak chewing gum after the Inaugural Address? (Yes) Did you check the link, see what I mean?

So it's not fair to say that people don't care about politics, to continue my metaphor, they are just very reluctant to open the hood and get all greasy. Who can blame them? People are busy trying to live their lives, trying to earn a living to feed themselves and their family, as well as the ever growing government - actually several governments. Its worse that kids, kids may become independent, that is never true about government.

This week I was introduced to a new website called Rate My Government. As a former teacher I'm quite familiar with Rate-My-Teachers, which I found very accurate in my day. If you scroll down this page on the right side you will see a link to rate your doctor, it works pretty well too. Why not Rate-My-Government?

The site itself, still pretty new, has lots of potential, and it should work well even for the clueless, but it looks to be designed for the "involved." That could be a problem, especially since they are relying on many eyes to read many ads, look back at Gerry's diagram.     

Canadian healthcare shows that human freedom is an individual issue

This week the Fraser Institute released a new book authored by 13 people titled Towards a Worldwide Index of Human Freedom. Contained within the book is a new comprehensive index of human freedom in which Canada places fourth in the world, tied with Ireland and Australia, sounds pretty good.The US places seventh.

Here is what the Fraser Institute says about its report: "Our new report measures the degree to which people are free to enjoy classic civil liberties—freedom of speech, religion, individual economic choice, association and assembly—in 123 countries. We also look at indicators of crime and violence, freedom of movement, legal discrimination against homosexuals, and women's freedoms."

I have a great deal of respect for the Fraser Institute and I'm sure their new report, done in conjunction with Germany’s Liberales Institut, is as accurate and comprehensive as possible.

The problem I have, and have always had with these types of reports is that rights and freedoms don't really apply to groups or countries, they are in fact individual. So you may be free in Canada to do many things, but if you are blocked from doing just one thing, that harms no one else, then you are not really free. For example, the "rules" around healthcare in Canada are simply Draconian.

The video below also comes from the Fraser Institute. In it, Dr. Brian Day of British Columbia, talks about healthcare in Canada. He points out that Canada is the only country on Earth "which outlaws the right of citizens to spend their own money on their own healthcare" when they want to. In fact, in parts of the country, clinics are fined heavily if they treat "uninsured" patients (patients who pay outside the system), and in Ontario, any patient that "jumps the queue" (and there are many, many queues) can be fined $10,000. What kind of freedom is that?

I don't consider either the Fraser Institute or Dr. Brian Day as representing the principles of libertarianism, you will no doubt be able to pick out why in the video. However, the healthcare system is so broken here, that I believe any movement in the direction of a freer market for healthcare is a step that I can support. Dr. Day makes a persuasive argument, and the issue of healthcare freedom will be in front of the courts later this year.    

"I hate Laurel Broten."

Actually, I don't really, but that headline is an exact quote overheard in teacher's lounge at a neighbourhood government school today. That same sentiment was probably echoed across the province by numerous other teachers.

Ms. Broten is the current Minister of Education (probably not for long) and like many Ministers before her, she is coming under fire from the province's teachers. Of course that is part of the problem, why should one person assume all the faults of a broken system? It's not her fault, not entirely.

Today was the first day back to work for most teachers in Ontario after the two week holiday break. Numerous School Boards had no contract agreement with their teachers on December 31, 2012, at 11:59 pm, now they do. A contract was imposed by legislation, Bill 115, which was passed last summer.

But labour peace is not about to break out in Ontario's education sector, far from it. The teachers and their respective unions have been royally pissed off with Bill 115, because it places a series of constraints on their "working conditions" without going through the steps of collective bargaining. Teachers called it undemocratic. I guess it is, of course teachers are forced to join and contribute to a union, then pay heed to that union or be fined. Recent single-day rotating strikes around the province by ETFO (one of the larger more militant unions),  were enforced by fines of $500 to disobedient teachers. In addition Boards may not negotiate with any teacher that is not a member the union, Catch 22, not exactly democratic either. None of that is the fault of the union or the teachers, they are just operating under the Education Act which grants everyone all of their privileges. It's an amazing document that really should be more widely read.

For example, one of the large unions, OSSTF, withdrew all extracurricular activities from schools as a sign of their discontent with Bill 115. But no where in the Education Act are teachers required to perform extracurricular activities. In Section 264 of the Act, Duties of Teachers, there is no mention of extracurriculars. Why should their be? If you work for any service industry are you required to organize your clients into competitive teams after work and supervise them? No, of course not, its voluntary, as it is with teachers. But since it is such an integral part of the school "experience," why is it not a contracted duty?

What is more surprising is what are the contracted duties, here is a part of the duties from the Education Act:

264. (1) It is the duty of a teacher and a temporary teacher,
 religion and morals
(c) to inculcate by precept and example respect for religion and the principles of Judaeo-Christian morality and the highest regard for truth, justice, loyalty, love of country, humanity, benevolence, sobriety, industry, frugality, purity, temperance and all other virtues;

Alas, nothing about love of liberty.

Notice that in everything I have said so far there is not a word about the clientele in this business of education. No word of the students or the parents, they are less than irrelevant in this story, even though they foot the bill. There is no "opt out" of taxation during a public sector labour tiff. Yet this is a service that parents MUST send their children to, or face penalties in the Education Act (Section 21 Compulsory Attendance)

21. (1) Unless excused under this section,

(a) every person who attains the age of six years on or before the first school day in September in any year shall attend an elementary or secondary school on every school day from the first school day in September in that year until the person attains the age of 18 years; and...etc

Ironically there is a new section that includes bullying, but I won't bore you.

So, how can this be fixed? Andrew Coyne, whom I usually don't agree with, points in a direction in a column he wrote this week, I recommend it. He ends with the quoted paragraph below, I like it.

"So the question becomes: if we want to change the culture, are we prepared to change the model? The alternative, of simply carrying on as before, in a sullen war of attrition with an increasingly embittered teaching corps — union leaders have suggested the boycott of extra-curricular activities might remain in place for the whole two years — is hardly appetizing. Will anyone grasp the nettle of fundamental education reform, taking power away from bureaucrats and school boards and union leaders, and giving it to schools, and parents, and individual teachers?"

Bang, bang! Something must be done!

Police-reported crime rates, Canada, 1962 to 2010

On the morning of Friday, December 14, 2012, a young man walked into an elementary school in Newtown Connecticut and committed an atrocity. He shot and killed 20 children, all just 6 and 7 years old, and six teachers of the school, I'm sure you all know the story.

I've been reluctant to write anything about that, not because I was not affected, just the opposite.

My wife and I have spent Friday's with our grandson for the past 7 months now, and many more to come I hope. We entertain each other. Our house is his plaything and we just supervise, its always fun and lots of work. I know we treat this little one differently than we did our own children years ago, wisdom does come with experience.

So as I heard news reports of the shootings that day, while our little guy was playing at my feet, I knew what kind of reaction to expect from the media and the talking heads on TV. The presence of my grandson made the pain of this story much more acute for me. I tried, but could not imagine the pain of the grandparents and parents of those children killed in Connecticut. There are no words.

As expected the debate and the discussion around the Newtown killings centred on how to prevent a future occurrence as if that were possible. Of course that means removing guns from people. The reaction was reflexive, and from the highest levels. The US President visited the town and made assurances that something would be done.
Of course, its for events just like this that laws are enacted by the political class. Good laws come from rational discussion and debate, where the rights of individuals are protected, where unintended consequences are considered, where time is taken without the emotion or trauma of events to cloud judgment.

After 9/11 and many orders of magnitude greater, the same kind of reflexive reactions among the political class and the media happened. Did that improve things? Are we safer, more certain that events of that sort won't ever happen, or are things worse? Have freedoms been lost? Have unnecessary wars been fought? Bodies heaped on bodies in far off lands, with a generation of afflicted children there, now sworn to vengeance. It has been made far worse by clouded judgement.

Newtown is not the same as 9/11, but the cries to do something are just as loud in proportion and the political class just as eager to appease irrational demands.

So lets be rational, is there a correlation between guns and crime? This Harvard study says no in the conclusion: "the burden of proof rests on the proponents of the more guns equal more death and fewer guns equal less death mantra, especially since they argue public policy ought to be based on that mantra....To bear that burden would at the very least require showing that a large number of nations with more guns have more death and that nations that have imposed stringent gun controls have achieved substantial reductions in criminal violence (or suicide). But those correlations are not observed when a large number of nations are compared across the world."

The media and political class seem to imply that mass shootings such as Newtown and crime in general is on the rise, is that true?

No, not in Canada anyway, the graph above (from here) clearly shows that crime did rise until the early 1990's, but has been falling steadily ever since. The severity of crime is down in almost every jurisdiction in Canada, and crime rates in 2011, the most recent year for data, is the lowest in 40 years. The reasons probably to do with aging boomers.

To appease critics in Ontario, where we already have stringent gun controls, Premier McGuinty recently announced a locked door policy for schools. About time, I always lock my door at home, don't the children in government schools deserve the same consideration?

So how about the US, are things just getting worse and worse there? Is crime on the rise? Are shootings an every day occurrence? Watch this short video for an interesting analysis, you may be surprised.

Postscript: Obviously this is a complex and controversial issue, there is no simple single answer. I have some experience with firearms, but not nearly enough, certainly not as much as I would like. But I found a blogger who is very experienced and has an opinion that I can support, here.

   

Self-management in business

It almost sounds like spontaneous organization with echoes of communal cooperation. Here is a huge business venture where the employees run the show:

Junk Food Jury 2

I hope you have been paying attention to your junk food intake during the holiday season. Why do I care? I don’t really.

But just because I think it is a personal choice and responsibility what you eat, that does not mean everyone else does.

The Ontario Medical Association (OMA), infinitely wise, and powerful, has pronounced on junk food. Apparently, it's the cause of the obesity epidemic sweeping our society and OMA knows how to combat the problem. OMA president Dr. Doug Weir: “We are raising a generation of children that will suffer from devastating and wholly preventable diseases, overwhelm the health system, and die prematurely…. The time for gentle admonitions has come and gone. We need to fight…with…. tax incentives and graphic warnings.”

Privately run and voluntary advocacy groups should be able to push an agenda, but OMA is a special case. They bargain with government when physician’s contracts expire. Effectively they are a union monopoly, with the ear of government. They represent the "political, clinical and economic interests" of the Ontario's medical profession. When they advocate legislation to increase taxes, or restrict marketing, you can be certain such legislation is inevitable. Of course their monopoly plus the government monopoly on healthcare, gives them the credibility to say they can mitigate healthcare costs by behavioural engineering.

OMA uses the unfortunate precedent and apparent success of the anti-tobacco campaign to bolster their case. However, tobacco is not an essential requirement of life, food is. The reasons for the steady decline in Canadian smoking rates over the years may be in part due to government action, but I suspect it has more to do with education and societal pressures. There is little reason to ask someone standing beside you to refrain from drinking cola; smoking is different.

Strangely, there is no real scientific evidence that points to junk food as being the cause of shorter lifespans in people or the primary cause of obesity. Diet is so variable, volume of food may be more important. Should we legislate the size of cutlery? Scientifically, there are too many questions to answer before we impose any judgment on food, even if it were appropriate. Agreement on what is junk food will end up being extremely arbitrary.

Last February three Alberta physicians suggested that junk food be reclassified as "pathogenic," disease-causing, like viruses. I wrote about that story here. Their argument is that junk food contains so many excesses related to various chronic conditions, junk food must be the causative agent. Yet that has never been established because very few people (if any) eat junk food exclusively.

So why is OMA so concerned about your diet that they want to warn you using government legislation? Because we let them, its become fashionable for the political elite to rail against junk food. Lots of stories in the States from the West coast, and the East.

I don't really have a problem with an educational assault on junk food without any government involvement. Good advice on diet is to be expected from physicians, why don't they leave it at that?   

The main argument against the OMA proposal is the libertarian one. Should government use its monopoly on the use of force to control our diets? Certainly not!

A climate science debate? We'll see.....

It's been almost six months since I've mentioned global warming. That recent IPCC conference in Doha was barely worth mentioning, not much of consequence happened. I guess just going to a part of the world that depends on the fossil fuel business, with an anti-fossil fuel message is worth noting. So there, noted.

In case you are wondering, I am not denying global warming (climate change or whatever). I believe the planet has been warming, certainly since the last ice age. It's still warming. Are humans the cause? Maybe to some extent, but not to the extent that we need to take any drastic global action, now or ever.

Over the past 22 years IPCC has put out an "assessment"  of the "climate crisis." The fifth one, AR5, was just prematurely released here. Each report since 1990 made predictions based on the climate models IPCC runs. 

The graphic, which comes from this site, shows predictions from the first assessment (FAR) to the last AR4, including an actual measured record (black arrow), at least according the this website.

Terrence Corcoran in the National Post, says AR5 has a “game-changing admission” about the effect of the Sun's magnetic field on climate. He also points out that a debate has broken out among the priesthood of climate science: "we have a science debate, rather than a dumped consensus. It’s not pretty, but it is an improvement over the secretive science that has dominated the IPCC since its inception."

Its good to see debate, that is the essence of science after all, that's how it corrects itself so the truth does emerge....eventually.

The rest of us can get on and discuss the real manmade problems of sovereign debt and currency. There is your real crisis and looming catastrophe. 

Lots of REASON to be optimistic....

...at the end of 2012.

How to increase the cost of post secondary education

Perhaps you have seen the recent television ads from the Ontario government explaining that school isn't like the movies. The ads show dramatized scenes of a student making an extraordinary football catch, another completing an arcane math equation on a blackboard, and both being offered fully paid university scholarships.
Alas, those were movies, in real life students and their parents need to pay for education, so the Ontario government has a solution. It will give qualified students 30% off on their tuition.

You might think that qualifying for this discount would be difficult, not at all, easy as pie. This eligibility wizard lets you know if you qualify, you should try it. You might be surprised to read that in order to qualify gross parental income must be less than $160,000. Thats right $160K, not exactly poverty, not by a long shot. So, if your parents only make a paltry $150K per annum, you're in.
A brief check of average per capita income in Ontario, and you find that most families pull in considerably less than $100K, let alone $160K.
Now lets look at tuition, average undergrad tuition in Ontario is the highest in Canada at just under $7200. A 30% discount brings it down to about $5000.
Sure, even that is a strain on any family, but children take about 18 years before they are ready for university, and planning and saving is something I would expect everyone to do, but thats me, and that is the responsible thing to do.

The point is, making the cost of education lower for many people, actually makes it more expensive for everyone.

When something of value becomes cheaper, more of that something is consumed. Demand for that something becomes greater. Greater demand generally results in higher prices. That is what will happen and is happening to the cost of education in many jurisdictions.

This is another example of how a well-meaning government action is not fully thought through, but in fact leads to unintended consequences as this video points out:

Think like a libertarian in 30 days or less!

Now there is an outrageous claim and a tall order. Some may be mumbling "why would I want to?" 

If you have some free time over the holiday period in the next few weeks, let me suggest a productive way to improve yourself while obtaining a very strong grasp of libertarian principles and a basic understanding of Austrian economics. You may not agree with it all, or any of it, but you will have a better understanding of the libertarian idea.

The reading list that I have linked here was created by Robert Wenzel, who as you can see has a very popular blog. Note that some of the comments below that list suggest other articles that Wenzel missed.

Why we wait for healthcare in Canada....

"We have a (healthcare) system in which the patient is not at the forefront of the system.....We have a system where ..... patients are a cost to the institution....The hospitals in Canada are unique in the OECD in being funded almost exclusively with global budgets....which means that a hospital is given a billion dollars a year....and no matter whether they treat 100 or 1000 or 20,000 patients, every patient that comes into their institution is a cost. This is a perverted system of funding a hospital...."  Dr. Brian Day

See the story of the boy that was paralyzed after surgery delays:

What is the price of the "free healthcare" we receive in Canada? Read this.
Is current healthcare policy sustainable in Canada? Read this.  

Right-to-work OR race-to-the-bottom?

Hard to believe "right-to-work" has arrived in Michigan.
The Detroit area, called Motor City, was once the centre of the universe for automobile manufacturing. Michigan was a fantastic wealth-producer as well as being heavily unionized and really one of the centres for the labour movement in America. Things have changed, that's what competition does.

The manufacturing sector has been shrinking in Michigan since year 2000, and has only weakly recovered in recent years, much of that due to artificial government "stimulus."

But competition has also pushed Michigan to act. Earlier this year neighbouring Indiana became a right-to-work state, so, lose jobs to Indiana or stop the bleeding, that was the choice for Michigan.

Of course Michigan borders Ontario, so are we next? We can hope, but not likely, not yet.

The principle behind right-to-work clearly lines up with the libertarian non-aggression principle. Workers should be able to join and contribute fees to a union or not. Employers should have the right to choose their employees based on whatever criteria they please. Workers should be able to freely associate and form collective bargaining units (unions) and approach employers with terms. Employers should be free to bargain with the union or other workers who are NOT members of the union. Unions and union members do not own the jobs they have, the jobs are the property of the employer/owner of the business. Right-to-work for workers means freedom to choose to belong to a union or not, within a free market.

Of course none of that squares with the way unions operate in reality. Generally the "brothers and sisters" do not appreciate independent thinkers in the workforce and are more likely to bludgeon (and I mean literally) reluctant joiners into joining. This practice of union coercion is referred to as "hard fought gains" by the mainstream media. One of my least favourite reporters from CBC, Neil Macdonald, wrote his fair-minded assessment of the situation here. I'm not sure which of the thirteen "!" CBC unions Macdonald belongs to, but even he couldn't ignore reality in that missive:

"Now, it is unarguably true the unions brought a lot of their misfortune upon themselves. The larger ones have often been corrupt and sometimes entangled with organized crime." Oh really?

Evidence that union jobs don't belong to the union members came recently in the dispute with Hostess Brands. Two unions were involved, the International Brotherhood of Teamsters and Bakery, Confectionary, Tobacco Workers and Grain Millers (BCTGM) Union (part of the AFL-CIO). The story is complicated, Hostess has been struggling for some time now, 8 of the last 11 years were in bankruptcy, and blame is shared all around. But to give you an idea as to how unions help business this is from a story in the Wall Street Journal:

"Under the latest turnaround plan, the sticking point was Hostess's distribution operations, source of the Hostess horror stories filling the media. Union-imposed work rules stopped drivers from helping to load their trucks. A separate worker, arriving at the store in a separate vehicle, had to be employed to shift goods from a storage area to a retailer's shelf. Wonder Bread and Twinkies couldn't ride on the same truck."

Rules are rules, and sometimes they get in the way. Hostess is being liquidated and the jobs are gone for 18,500 people, but the union wins a Pyrrhic victory, whoop-dee-do.

Jon Stewart called right-to-work a race to the bottom and went on to say: "It's one of those things that are actually named for the opposite of the thing they do, like strip bars call themselves gentlemen's clubs."  I think he got that wrong. What unions want is the right-to-coerce, what should be, is the free market.