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?

Lights. Camera. Activism.

Those of you that have read Ayn Rand's epic novel Atlas Shrugged, may have heard rumblings of late, that we are in fact living the novel. Atlas is shrugging, the novel is prophetic!
I suspect Rand thought exactly that, when the novel was published 53 years ago, but who knows. Certainly there are aspects of today's news stories that resemble Atlas Shrugged, but thats true of Orwell's Animal Farm, Nineteen Eighty-Four and other dystopian fictions.
The people at the Ayn Rand Institute however, want to stir the pot a bit and possibly catalyze some action through activism. They have sponsored a short video contest, submissions have closed (Dec. 8/10), the purpose being to continue the current rumblings. Why not? It's a great idea, some of the videos are very clever and the good news is, you may still vote for your favourite until Dec. 22nd, 2010. All the videos are located here, all deserve commendation, and I have posted one of my favourites below.
The entire enterprise anticipates Atlas Shrugged, Part 1 (the movie), scheduled for release on April 15th, 2011. Isn't that income-tax-deadline-day in the U.S.? Coincidence? 

The myth of deflation and wisdom of economics professors

Tugwit-the-Terrible strikes again.
The fear of falling prices and thus the fear of a currency that could buy tomorrow, more than it bought yesterday (deflation), keeps government central bankers awake at night. Imagine borrowing a ton of money (like most countries already have), then having to repay it? Its much easier to repay the money if you could print some of it in your basement and scam the lenders. The sad truth is, that IS the job of central bankers like Ben Bernanke in the US (whoa to the Chinese). That's called inflation, and despite what Mr. Bernanke says, he LOVES inflation, he needs inflation, and will do anything to encourage it.
One of the first things central bankers do before they warm up the printing presses, is to hint to the media that deflation is possible, and that it is bad. I'm not sure why its bad, I like the fact that my computer today is faster, better, and CHEAPER, than my previous computer. I think that is deflationary, in fact my standard of living improves as prices deflate! Don't they? I'm confused, so I will let the people at the von Mises Institute explain.
After you have looked at that, watch this from Mr. Tugwit's Channel. Tugwit pulls no punches!    

Jack and Dave explain Quantitative Easing

The following video was created by Tugwit the Terrible and can be found on Mr. Tugwit's Channel. You may have to watch this more than once, I did.
Just imagine trying to explain this scenario on a news program to the general public. Imagine the news anchor or reporter trying to keep the audience's eyes from glazing over.

I was very pleased to hear that Rep. Ron Paul has been named to chair the House Domestic Monetary Policy Subcommittee when the Republican majority takes over the US Congress in the new year. This will give Rep. Paul oversight on the Fed and maybe shed some much needed light onto its actions. Last year Ron Paul authored a book titled End the Fed. We can hope.    

The freedom NOT to associate

Have you ever had a job where you were told that you will automatically "join" a union as well? I have. I was just happy to get the job, way back then. I was young, really needed the job and as a bonus I belonged to this large group of like-minded individuals all striving for the betterment of education, in this case. They didn't even call it a 'union', it was a 'federation' (OSSTF) so I felt better about belonging. They had lofty goals, some that I liked, some that I didn't like, but my dues were automatically removed from my paycheque, and I was too busy doing my job to really concern myself with the doings of the federation/union.
That's very likely the way it is for many Canadians who have jobs in a variety of businesses, not just government related fields like teaching.
The Charter guarantees the rights of individuals to associate freely. But do workers have the right NOT to join a union? That is the question that will be appealed in this interesting case described by Karen Selick of the Canadian Constitution Foundation.  

Shooting the messenger: A hit on Julian Assange

Private Space!

I've always been a "space junky" - outer space that is. I can vividly remember that day in October 1957 when Sputnik 1 was launched by the Soviets (yes I'm old - check out one of my favourite movies October Sky). Back then, and for some time afterward, I was brainwashed into thinking that only governments could "afford" to explore space. Space was to be explored by countries; and of course this was troubling to me because by the time I hit my late teens I was thinking that governments maybe should not be doing this with taxpayers money. In those pre-libertarian times, I had some problems rationalizing my love for space exploration and my political philosophy. I've written about this before, but today I'm pleased to say I feel better about the whole thing now, thanks to Elon Musk the CEO of SpaceX Corp.
SpaceX, a private corporation, announced this morning (Dec. 8, 2010) that they have launched the first large capsule into earth orbit, the Dragon spacecraft. Now Richard Branson's Virgin Galactic could have competition for tourists! Marvellous!

Hearts and Minds

Apparently the battle for hearts and minds in the Middle-East can be fought without bullets. To paraphrase Victor Hugo "there is one thing stronger than all the armies in the world, and that is an idea whose time has come." So listen-up NATO, ISAF, and all the military forces over there, protecting our freedom, and keeping us safe in the Great White Frigid North. Thanks to WikiLeaks (and published in the Guardian UK) we now know a better, cheaper way to bring freedom and tolerance to the Muslim masses. Just inundate them with American television programs, they watch, they listen, and most importantly they absorb (check out the link) US culture (such as it is). Bring the troops home and lets sell some popcorn!

Here is an excerpt from some US Embassy cables published in the Guardian:

//David Letterman, Agent of Influence//

11. (S) XXXXXXXXXXXX said the American programming on channels 4 and 5 were proving the most popular among Saudis. A look at the December 17 programming menu for MBC channel 4 reveals a 24-hour solid block of such programs as CBS and ABC Evening News, David Letterman, Desperate Housewives, Friends and similar fare, all uncensored and with Arabic subtitles. Channel 5 features US films of all categories, also with Arabic subtitles. XXXXXXXXXXXX told us that this programming is also very popular in remote, conservative corners of the country, where he said "you no longer see Bedouins, but kids in western dress" who are now interested in the outside world.

12. (S) Over coffee in a Jeddah Starbucks, XXXXXXXXXXXX, and XXXXXXXXXXXX elaborated on the changes in the Saudi media environment. "The government is pushing this new openness as a means of countering the extremists," XXXXXXXXXXXX told Riyadh press officer. "It's still all about the War of Ideas here, and the American programming on MBC and Rotana is winning over ordinary Saudis in a way that 'Al Hurra' and other US propaganda never could. Saudis are now very interested in the outside world, and everybody wants to study in the US if they can. They are fascinated by US culture in a way they never were before."