Wednesday, May 09, 2018
I Heard "Canada Is No Longer Competitive" and I Thought, Define "Competitive."
The Bloomberg business network posted this video of Sun Life CEO warning that Ottawa will need to rethink Canada's competitiveness. That got me wondering what this guy must be on about. My guess was taxes, corporate taxes, and he was agitating for Trump-grade corporate tax cuts, the race to the very bottom in this the era of "everyday low taxes."
That's one of the biggest and most insidious distinctions between progressivism and neoliberalism.
In neoliberal practice, government works for the corporate sector and that much comes across in the velvet-gloved demands of guys like this Sun Life CEO's.
Under a progressive system, government works with the corporate sector but it works for the public, the people, the voters who elect that government. They understand that the corporate sector's value is the measure of the benefit that results for the public. Government's priority must remain with the corporate sector's service to the country, not the corporate benefit to shareholders and directors.
Donald Trump has America in a race to the bottom. The United States is at near full employment but the terminal-stage capitalist model that Trump and others like him have crafted is broken. How do you know? That's easy.
When a nation approaches full employment that results in a reduction in the labour pool. That should shift economic power somewhat more to labour than capital. A scarcity of available labour should result in higher wages. It's a seller's market. Only this time that's not happening in the States. Wages remain unduly flat. Labour is not buoyant. It's merely treading water. Which suggests that the next economic turndown will be pretty tough on working class Americans.
I think what we're seeing in the States and what we're hearing from guys like this Sun Life CEO should remind us that it's time we revisited how we want our governments to deal with the private sector. These shakedowns have to stop.