Harper, the Coming Deficit and Conservative Class Warfare

Stephen Harper continues to move away from his declarations during the election campaign that if we were going to have a recession here in Canada we would already have had one, and that the fundamentals of the economy are strong. Today at the APEC summit, he was, to use the Toronto Star's language, "[drawing] on memories of the Great Depression." Is it not strange, that he can change his tune so radically over the course of a month and a half, from excoriating Stephane Dion for refusing to absolutely rule out running a deficit, to making the arguments for why we should be deficit spending.

There are two explanations for this incongruity, when you take into consideration that many economists saw this recession coming down the pipes at least a year in advance, and some saw it coming longer away than that (Marx saw it coming 130 years ago). The first possible explanation is that Harper is fundamentally incompetent at the role of managing the economy. If he, with an MA in economics, was unable to see this coming 45 days ago, when the majority of the western world could, then he is entirely incompetent to be making the big decisions. Of we adopt this explanation, he was too focused on blind partisanship to actually see that the train was about to go off the rails. The second possible explanation is that Harper deliberately deceived the Canadian people, that he lied to us. This explanation is supported by the rapid about-face he performed when it became undeniably clear that the economy of the western world was headed into the shitter.

Harper has already committed the country to a $50 billion bank bailout, which when you consider the proportional sizes of the Canadian and American economies is actually a bigger bailout than the $700 billion Wall Street bailout. He wants to send the country further into debt to bail out the auto industry by handing them a no-strings-attached cheque. And mark my words, this deficit that he created to bail out failing capitalists is going to be used as an excuse to cut services for the working class. This is the Conservative modus operandi. Transfer wealth to capitalists. Use resulting deficit to justify programme cuts. Rinse. Repeat.

Now, I think that so long as we are operating under a market-capitalist system, Keynesian spending is a good way to stimulate the economy, but it has to be targeted correctly. Shovelling money into the gaping maw of transnational capital is not correct targeting. The best way to stimulate the economy is through direct transfers to the most impoverished. These are the people living pay cheque to pay cheque, and spending every cent that comes in on necessities of life like food, clothing and rent. These people will not take the transfers and squirrel them away. They will put every last cent back into circulation, thus getting maximum value for the government's stimulus dollar. Whereas transfers that benefit the rich wind up being saved, taken out of circulation and ultimately sent overseas to nontaxable Swiss bank accounts. Supposed stimulus measures targeted at the rich are a deception. They will not stimulate the economy because the money won't go into circulation, it will go into bank accounts to be inactive and gather interest.

I understand that many people are worried about the looming failure of the big three American automakers. So am I, since there are plenty of jobs that will be lost, with the resulting knock-on effects through the economy. That is why I support finding a way to save them, but not in their present form. The only way I would ever support a bailout is if it resulted in the public acquiring, on a permanent basis, majority equity and voting control over the companies. That way, the government can insure that the bailout money goes to the right places, not into paying dividends and obscene executive pay packages. The government can make sure that the companies are serving the public interest by building fuel-economical (not the same as fuel-efficient, though generally fuel economy requires fuel efficiency) vehicles for sale to the public, as well as retooling some plants to produce public transit vehicles like buses, street-cars, light-rail vehicles and trains to meet the longer-term requirement for effective, efficient and widespread public mass transit.

Nationalization is ultimately the best bet precisely because the nationalized companies can be made to serve the needs of the people, rather than the people serving the needs of the companies and their controlling capitalists. Government ought to be for the people, not for capital, but I can't call to mind a time when Canada truly had government for the people. In fact, the only government I can think of that was ever really for the people in Canadian history was the CCF government of Tommy Douglas in Saskatchewan that introduced many great programmes, built many strong Crown corporations, substantially increased the standard of living across Saskatchewan, and managed to do all of this while running 17 straight balanced budgets, making that government the most effective manager of public funds in Canadian history.

Conservatives like to wrap themselves in the mantle of sound fiscal management, but their version of sound management is transferring wealth to the wealthy, and making up for it by cutting services to the working class. That isn't sound fiscal management, that is the class warfare for which they so readily decry socialists. The only difference is that conservatives around the world wage class warfare on the working class. Since the capitalists and their political puppets on the right are waging class warfare on the workers already, it is time that the working class said "enough already" and started to wage class warfare back. Enough sitting around and passively taking it. It's time to organize and fight back.

Days Remaining in Bush Presidency: 58