Charter Cities

In recent years Cuba has been a destination for many Canadians to escape the winter. For me the politics of that place for the past 50 years is a turnoff and I'm not a fan of sun and surf anyway. But a small and problematic part of that island is run by Americans, Guantánamo Bay, may become a bargaining chip in Obama's overtures to Latin America. If the Cuban ruler, the younger Castro or whoever takes over, has any smarts they may opt for an idea put forth by economist Paul Romer. Romer unveils a bold idea: "charter cities," city-scale administrative zones governed by a coalition of nations. Could Guantánamo Bay become the next Hong Kong? Watch:

Government bailouts and Moral Hazard

Another great column today by Gwyn Morgan in the Globe and Mail titled: Bailouts and the nasty consequences of 'moral hazard'. It points the finger at the cause of the financial mess that started in the U.S. and then proceeds to explain how "they gets us coming, and they gets us going." Morgan rehashes much of what has already been said, but he is more lucid and speaks with the authority of a Canadian business person and says it far better than I could. Do yourself a favour and read it.

The Seasteading Institute and The Israel Test

I often hear people ask where are the libertarian countries that exist today in 2009? The answer is simple, there are none that have all the components of a libertarian society, but there are many countries that operate to a limited degree under some libertarian principles. The most immediate hope for a completely libertarian society is TSI, The Seasteading Institute. Under the direction of Patri Friedman the grandson of Dr. Milton Friedman (see YouTube interview below), TSI seeks to establish autonomous ocean communities to improve the human condition by enabling innovation with new political and social systems - hopefully libertarian systems. The young Friedman gives up on attempts to change our societies from within, instead he thinks we should start from scratch - at sea. I certainly understand the frustration from which an idea like that can originate so I will watch TSI with interest and anticipation. In the mean time I will continue to pound the table for change here, on dry land, within easy driving distance to just about everything.

In a recent column, Neil Reynolds wrote about a book The Israel Test, which discusses Israel's extraordinary free market achievement and posits that "Israel has become one of the most important economies in the world and is second only to the United States in its pioneering of technologies that improve human life." The book also discusses achievements of Jews (a minority group if ever there was one) in general and of Israel in particular. Israel was established in a hostile environment just 60 odd years ago and has evolved from a pseudo-socialist democracy to a country that has "sloughed off its manacles of confiscatory taxes, oppressive regulations, government ownership and socialist nostalgia." Here is an experiment like the one TSI aspires to, that shows even a small measure of liberty has impressive results. The results are more impressive given the achievements of those nations, mostly dictatorships and religious autocracies surrounding Israel by comparison. Imagine what a large measure of liberty would nurture - in any nation.

The good news of the Toronto garbage strike

There are rumblings in some Toronto media that a political shift has occurred and the tide has turned in the politics of the City of Toronto. The cause is the 39 day garbage and city workers strike that seemed to hinge on the issue of bankable sick days. The city's mayor insists that a victory was achieved and that the city will save $140 million over the next five years which amounts to an annual saving of less than 1/3 of 1% of the city's operating budget of $8.7 billion (2009). The union thinks their membership did well; obviously someone is wrong. The problem is that the city's negotiators were hamstrung. They did not have the option to negotiate with another entity like a private contractor. The city was negotiating with a city sanctioned union monopoly and no one else. This "partnership" between the city and the union benefits the union at the expense and inconvenience of the city tax payers. As a result of the strike the good news is that city tax payers are beginning to realize this as evidenced in this poll (see the PDF on the right). The idea of contracting out garbage collection (as exists in the former City of Etobicoke and many other municipalities in the GTA) is finally becoming a viable option for many Toronto voters (see the poll). Only when competition exists can prices be set that are fair both to the taxpayer and the city worker given market conditions of the day. In the midst of a recession with GTA unemployment approaching 10%, you would think that even unions would contemplate concessions. Why should they given their monopoly position? So is the mayor of Toronto right in declaring victory, or is this a wake-up call for all voters? I think its time to wake up.

T.O. garbage strike over

The Toronto garbage/city services strike is over, only the BIG clean-up remains. How did Mayor Miller, formerly of the NDP do? Well, the simple fact that this entire farce lasted as long as it did tells you something of Mr. Miller's allegiance's. Miller claims that the agreement falls within Toronto's budget restraints. For me, "budget restraints" when set high, define the term oxymoron.

Where is Global Warming?

Where I live we are having one of the coolest July's in my memory. But one cool summer does not make a trend. But is there a trend? Are you certain? The issue of Climate Change/Global Warming or whatever you like to call it seems to be settled as far as the the G8 Summit 2009 Leaders are concerned. To them the trend is apparent and world-wide action is required right now, whether you like it or not its for your own good. But there are dissenting views and these views are worthy of your time. Maybe the issue is not yet settled, see what you think, check this out.

Enough with this union monopoly of the public sector: Time to contract out

The headline of this blog is from the Globe and Mail Report on Business section of July 21, 2009. The article was written by Gwyn Morgan, and it gives me great hope that things like the garbage crisis in Toronto may result in a brighter future for all of us. Click on the title to view the article, it's well worth your time.

Toronto Garbage & Services Strike - Day 30

Its been a coolish summer so far in the heart of the Great White North. Not much sign of global warming here. That's the good news, the bad news is that garbage is still piling up in Toronto and if it ever warms up this summer the smell ought to be interesting. Driving through most parts of town the effect is surprisingly minor, but it could get worse quickly.
This is what its like being held hostage by a union, CUPE, while the municipal government allows the union to run roughshod over the rights of its citizens. Pickets are preventing citizens from bringing their garbage to transfer/holding stations and temporary dumps.
Rumours are that many of the non-garbage workers are returning to work. The government looks like its out to break the union, not a bad idea, but governments at at fault here. Past contracts that were poorly negotiated by civic leaders are coming back to haunt everyone. The only good coming out of this, is the discussion around private garbage collection and allowing municipalities to divest themselves of responsibilities they should not have taken on.

July 20, 1969

"Ambivalence" is the only word that comes to mind when I recall the Apollo 11 landing on the moon. I'm a space junkie from the days of Sputnik 1 when I was just ten years old. By the time of the moon landings I was a young adult and I understood the global politics around the space race and the enormous costs involved. The night of the landing, those first steps, the wall-to-wall television coverage, that was amazing. But the reality was that the race was over, America had won and there was nothing more to prove. To underline the propaganda aspect of the whole thing, the US Congress began to scrutinize the expense, eventually cancelling one "science" mission and by the end of 1972 (Apollo 17) manned exploration of the moon was over never to return again.
You can imagine my delight when the X Prize was announced in 1996 inviting private enterprise to enter their own space race and even greater delight when the prize was won only 8 years later with an interesting libertarian twist. So lets hear it for to tourists in space without government subsidy!

Walter Cronkite 1916 - 2009

Growing up in the sixties, my views of religion and politics were being formed. By the end of the sixties I realized that religion was ridiculous and politics was corrupt. But there was Walter Cronkite whom I trusted and admired even as a Canadian boy. He was the journalist's journalist and maybe the last of his kind. His nightly newscasts cultivated in me a hunger for news - that I still have. His obvious delight of space exploration and science in general reinforced in me the same feelings. Very few of my actual teachers had the same influence. So I was very sad to hear this and be reminded of mortality.