The debt of doom must be repaid!

Watch this clip a few times. The cartoon bears will explain STAGFLATION according to the Austrian School. When you're done send it to your MP or Congressman. Tell them to watch until they get it, who knows the jackasses mentioned in the clip may also watch. It can't hurt.

Do as we say, not as we do!

The ratio of Canadian debt-to-disposable-income has just recently surpassed that of the United States according to Bank of Canada Governor Mark Carney, Finance Minister Jim Flaherty, and Prime Minister Stephen Harper in a media barrage this past week. All three warned that too much debt is dangerous in this low interest rate environment, because rates may move upwards quickly putting many families in jeopardy. Of course they are the ones creating the low rates, but they are just playing with you, don't be fooled!
Why are the rates low? To encourage borrowing and spending of course, but don't you borrow because the aforementioned three money-micro-managers are concerned that there is too much borrowing going on, even though governments continue to borrow. Just do as we say, not as we do! Is that confusing or what?
Amidst all this Keynesian crap rides Maxine Bernier carrying the banner of the Austrian School in his most recent column in the Financial Post. Bernier gets right to the heart of the matter, puts the blame where it belongs, and leaves no doubt that he just does not belong in Stephen Harper's Conservative Party.
 

Essentially a disservice

 

The last time I wrote about public transit was February of this year, and in Toronto, Canada's largest city, the only thing that has changed is the city's administration. I think the change was for the better, but that doesn't mean I agree with the administration on this (or any) issue. The new mayor of Toronto wants to declare the transit system an essential service, effectively eliminating the right to strike for TTC employees during a labour dispute. The argument for, centres around avoiding a citywide disruption by holding the riders hostage, the argument against points to the fact that compulsory arbitration generally favours the employees and usually hurts municipal budgets or requires a fare hike. With only those alternatives many will say lets declare this an essential service and ensure the smooth operation of the city, no matter what the cost. Of course that attitude has escalated budgets, taxes, debt, entitlements, etc.
What has not changed since the election, is that the TTC is still a monopoly in cahoots with its unions! What needs to be asked is: how difficult is it to drive a TTC vehicle? Does driving require years of schooling, or can just about anyone who can drive do that job? The job requires a Grade 12 education and a 30 day training course, and pay starts at about $22.56 per hour rising to $29.43 after 2 years or just over $60,000 per year, not including overtime. A non-unionized truck driver gets about $18 per hour, a school-bus driver can make just over $16 per hour. Yes, truck drivers do not interact with riders, but the jobs are similar and in many instances the truck driver has a tougher more demanding job. The school bus driver also has a special responsibility. How to reduce the cost of TTC employee compensation?
Is it possible to automate some of the TTC jobs? Absolutely! For example, when was the last time you personally interacted with a bank teller to do your banking? I require a human bank employee maybe two or three times a year, at all other times my banking is done remotely by phone, computer or ATM. Are there TTC jobs that can be done by machine? Yes, but the important question is, is it possible to automate jobs and get around the public sector unions? I suspect automation will come eventually happen as it has in many other cities.
But I'm avoiding the elephant in the room. Is it possible to break up the TTC monopoly and give transit riders real choice? How about getting the city to sell the bus routes to a private company or consortium? The subway and streetcar lines may be kept in the public sector for the time being, those being the easiest to automate eventually. The private sector bus routes could become directly competitive with the remaining public system. TTC administrators would have less responsibility and need a much smaller budget. The two systems would operate in parallel, supporting one another where it was mutually advantageous. The private sector bus drivers could be offered a profit sharing deal, maybe shares in the company, dividends and other incentives. Is this crazy? Only if you are still stuck with the idea that government is there to solve all problems, look around, it's not working. Competition will improve transit, to consider anything else at this point is essentially a disservice to riders.    

Electric dreams, cold reality bites

That picture is the visual readout for the Chevy Volt on a cool late fall morning. Battery operated things don't work that well in cool/cold conditions, all Canadians know that, and electric cars of course run on batteries. If the temperature is less than minus 4 degrees Celsius (26F), the fossil fuel engine on the Volt comes on to help "condition" the battery, then shuts down after 3 or 4 minutes. The electric engine works optimally at 20 degrees Celsius (70F).
So as I look out on this frigid mid-December day, where I doubt that the temperature reached minus 12 Celsius (8F) with a minus 20C windchill, I wonder how the Volt would have performed. Probably not to well. The Volt doesn't like extremes of temperature, that is lower than minus 4C. Extremes!!
Gwyn Morgan has an interesting take on electric car dreams in the Globe today. I guess those booster cables will be really busy in the future. Can you boost an electric car?