Phil Burpee, Columnist
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Phil Burpee |
The Empty Quarter they
call it - Rub al Khali - that great, drifting wilderness of
shifting sands and harrowing winds that constitute the trackless
interior of the Arabian Peninsula. Down in Montana they call it the
Big Empty - the huge swatch of disorienting antelope prairie that
runs from not-quite Dakota all the way over to not-quite the Rockies
- a place of no place in particular, where every hopeful rise in the
landscape just delivers you to another vista of heat-shimmer and
dust-devils. The barrens, the moors, the scrub, the bogs, the frozen
wastes, the island-less seas, the nether reaches, the Land of Ghosts
- many are the names we give to those places where life itself is of
no value, and the snuffing out of the flickering flame of hope is a
precursor to a terrible nothingness and the Void.
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The Big Empty |
There is a Big
Empty up here north of the Medicine Line too, no less oppressive than
the most soul-chilling of geographical wastelands - it is called the
Economic Action Plan of the Government of Canada. And be of no doubt
- it is a place of fearsome emptiness, where only the disembodied
spirits of lost and forlorn bean-counters, jaded and confused policy
wonks, and fiscally-prudent ex-bureaucrats wander wraith-like amongst
the sad ruins of long-term, socio-economic cost/benefit analyses.
"Woooo-oo-oooo-ooooo....." they cry - pitiful
wailings soon lost in the devouring winds of governmental lethargy
and indifference.
We're in the middle of
the slo-mo car crash scenario in this country. It's a hackneyed sort
of truism that time seems to slow down as you enter a wreck, but I've
been in enough tipping-point type incidents over the years in cars or
on horses, or just almost losing your footing in that spot where you
probably shouldn't have been scrambling in the first place, to say
that it's true - it really happens. Everything starts to look like
the commercials for Alberta Tourism where water-droplets seem to take
forever to fall, or that girl's hair just seems to drift across the
camera for ever and ever - a dreamy state where the conventional laws
of time and motion are suspended, and your brain is warped into a
drug-like space - the better to believe what you're seeing must be
pure magic. But the high-speed cinematography of our national decline
into single-commodity slavery is quite another sort of dream-world -
more along the lines of the attenuated screech of rubber on pavement
and the terrible clattering of gravel in the wheel-wells as the bus
begins its long, ugly lurch off its drive line and starts to pitch
hippopotamus-like over the edge of that forty-foot embankment - and
all the while those pathetic little monkey faces glued to the windows
with their fingers outstretched, and their eyes saucer-like and
uncomprehending.
There was a bit of feather-ruffling a while back in the news when Tom Mulcair, leader of Her Majesty's Loyal Opposition in Ottawa, observed that there were certain structural imbalances in our current national economy which, if not carefully recalibrated, would cause increasing harm and place the country as a whole in increasing jeopardy. The much-deployed term Dutch Disease is used to quantify this type of economic malaise. The term stems from an episode some decades ago when Holland's economy became suddenly overwhelmed by the fruits of an off-shore hydrocarbon play, which resulted in the guilder suddenly morphing into a petro-guilder and, owing to the high volatility and ever-increasing value of oil products on the world market, caused the apparent value of Holland's currency to rise dramatically. And when a currency rises in value arbitrarily against the dollar standard based purely on an extractive industry, and in isolation from actual broad-market valuations, then the rest of the economy suffers accordingly and in a predictable fashion. As the currency appreciates, so do the concomitant costs of production (cost of living, wages, supplies), especially and particularly in the export sector. So, in short, the Dutch priced themselves out of both the European and world market and suffered a significant collapse of their manufacturing sector, with a resulting flight of both capital and people, along with a spike in unemployment and a heightening of social tensions.
There was a bit of feather-ruffling a while back in the news when Tom Mulcair, leader of Her Majesty's Loyal Opposition in Ottawa, observed that there were certain structural imbalances in our current national economy which, if not carefully recalibrated, would cause increasing harm and place the country as a whole in increasing jeopardy. The much-deployed term Dutch Disease is used to quantify this type of economic malaise. The term stems from an episode some decades ago when Holland's economy became suddenly overwhelmed by the fruits of an off-shore hydrocarbon play, which resulted in the guilder suddenly morphing into a petro-guilder and, owing to the high volatility and ever-increasing value of oil products on the world market, caused the apparent value of Holland's currency to rise dramatically. And when a currency rises in value arbitrarily against the dollar standard based purely on an extractive industry, and in isolation from actual broad-market valuations, then the rest of the economy suffers accordingly and in a predictable fashion. As the currency appreciates, so do the concomitant costs of production (cost of living, wages, supplies), especially and particularly in the export sector. So, in short, the Dutch priced themselves out of both the European and world market and suffered a significant collapse of their manufacturing sector, with a resulting flight of both capital and people, along with a spike in unemployment and a heightening of social tensions.
Mr. Mulcair was making an objective observation, not to mention a volatile and politically dangerous one. It is easily supportable, however, by a variety of well-established economic models, including those espoused by the Economist, which, tellingly, still chooses to refer to Alberta's 'tarsands' as 'Alberta's dirty oil' - and this from a flagship publication of capitalist enterprise. What he was saying is that an over-accelerated development of the oilsands with chronically-insufficient royalty levies is resulting in an over-valued Canadian petro-dollar which in turn directly results in a weakened export capacity, especially in the manufacturing sector, as had happened to the Dutch. This is not debatable - it simply is the case. The question is as to whether the undeniable benefits of the oilsands might outweigh such side-effects (or as Robin Williams once quipped in a sketch about Olestra and it's potential ‘side-effect’ of anal leakage - "That's not a side-effect - I think that's an effect!"). Of course the hackles came up right away and the spectre of the National Energy Policy of Pierre Elliot Trudeau (the N.E.P. of P.E.T.) was dutifully disinterred and paraded about in all its mouldery horror. Much pompous indignation was to be seen on the TV, including Premier Brad Wall of Saskatchewan harping on about 'divisiveness' and 'impediments to progress', etc. Mr. Harper and Ms. Redford likewise obliged with mock dismay and indignation. Of course, Mr. Wall would have to come out on the attack, especially since he's busied himself with undercutting Alberta's already too-low hydrocarbon royalties these last several years in order to try and poach some business for Scratchy's mini-patch in the eastern Athabasca. This business model can be summed up as 'bend over and spread 'em'. Hardly a bastion of thoughtful conservatism.
But then conservatism is on the run these days amongst Canada's right-wing administrations, especially those of Ottawa and Edmonton. Given the approximate socio-political flavours of conservation, preservation and exploitation - typically loosely attached respectively to small-c conservatives and/or social-democrats (conservation), greenies (preservation), and gluttonous capitalists (exploitation), it seems disturbingly clear that our 'Conservative' governments are increasingly in thrall to the siren call of exploitation. That siren of temptation should give us a sick feeling, like the old air-raid sirens of the 1960s. The warnings are sharp - and they are immediate - 'Something wicked this way comes.....'.
It is informative
to note that what passes for socio-economic development these days
from the perspective of government is little more than an abrogation
of what otherwise would be perceived as the state's responsibility to
assure equitable market-access for all of society. Along with this
there is a pernicious misperception that the Free Market approximates
the behaviour of the food chain in the jungle. It is nothing of the
sort. Nature 'red in tooth and claw' is by no means the model upon
which ten thousand years of human commerce and intellectual
interaction is based. The absolute essence of the marketplace is the
fair exchange of goods and ideas - not the overwhelming of lesser
interests by the misbehaviour of unbridled monstrosities. There is
now a so-called 'wisdom' that any impingement whatsoever upon the
malignant proclivities of certain corporate entities is tantamount to
free-market heresy - why else do you think corporations are even now
busily working to see to it that they are not only regarded as
'persons' under proprietary and civil law, but are also wheedling
their way deviously and inexorably into the body of protections
afforded under various forms of Human Rights and Bill of Rights
legislation? It is in no way substantively different than having the
weasel petition for access to the chicken house for no better reason
than that the chickens are allowed in there, and it is discriminatory
to so hinder the hard-working weasel in his legitimate pursuits -
viz. killing chickens. Children can figure this kind of bogus line
of twisted logic out in a jiffy.
An economy addicted to
the hydrocarbon sector is like an eighteen year old kid about five
seconds away from getting his girlfriend pregnant - 'It feels too good to pull out nuh-nuh-nooooow!' We inhabit a federation in
this country, for good or for ill. It is absolutely necessary to have
the sort of discussions as that triggered by Mr. Mulcair. Pretending
nobody let go a beaner in the cocktail lounge gets us nowhere. If an
over-emphasis on a commodity-based economy is causing problems with
the manufacturing sector, let's have a conversation about that. If
agri-business and trans-global chemical and seed outfits are gutting
rural life and sending waves of young country folk fleeing to the
cities, let's have a conversation about that too. To complain that
pointing out the frailties and susceptibilities in the federation is
automatically 'divisive' is just self-serving bluster. The new owners
of the Athabasca oilsands - Alberta, Saskatchewan and Canada - are
nothing more than lottery winners. We woke up one day with a winning
ticket, and now behave as though we invented it or earned it. We
didn't. What we do earn, if we try, is a rightful place in the human
family. And this isn't done by finger-pointing and unwarranted
crowing.
It's windy in the Big
Empty. Coyotes yip and the dust stings as it hits your face. The
swirling sands of hysteria and delusion quickly gather around your
ankles, clutching and creeping, sucking you down. Reach out for an
anchor-post and there's nothing there - just the cackling of the
banshees, and the fast-receding voices of reason and good sense.
Don't believe everything you see on TV. And always, always beware the
crocodile tears of the pompous and the righteously indignant.
Phil Burpee
May 26, 2012
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