5/26/2006

 
Providence State versus Neo-liberalism

Before World War Two, Canada was a liberal State, where ruling of companies was ultimate and workers we're treated mostly like slaves, or very cheap labor. Then mans we're called under the Flag to protect our "civilization" against National Socialism.

It is after V-day that Canada has began nationalization of primary services like health care, education and others secondary services on a large scale due to popular pressure. This fact is still today but we are starting to see the end of it.

Some example can be seen in our every day life; secondary services like airlines, railroads, gas and power are not anymore under the ruling of the State. The end of the Providence State. We are to see in a near future, as it already going on, the privatization of primary State services.

In facts, it is not so bad that Air Canada and Petro-Canada are not anymore State ruled. As it was said, this solution was to share the profits.It's not so quite true.

When the Country was the only owner of such companies, which was the real profit sharing as theses companies, we're thriving and keeping a wealthy competition, for the common masses, from their private counterparts. The yearly profits we're then injected in the government's budget to be spend on other public sectors. Their only reason of existence was to serve the People.

Now that theses are privately own, even if they are called public companies, the profit is still share among the People, but is there a need to specify that theses Peoples are very few? Of course, there is till profit, witch is now the ONLY reason of existence. And the general public is not receiving any of this since it is going to so few.

Even if theses companies are paying taxes, there is a huge lost for the government.The amount of money returned to the government has a negative balance from what it was, and the re-injection of the profit in public sector is almost non-existent. The owner can easily choose to invest is profits in another country.

So both the government and the People are the big looser in this equation. This now completed auction of public companies has the name of Neo-liberalism witch mean, for you and me, that the State gets less involved in the economy sector as it has no ownership of any kind to drive the decision procedure for prices setting and investments direction.

In other terms, companies whose interest is only profits now fix prices. They lower the cost of production, while selling at an always higher price at the expense of the customers and they have the items they sale built in foreign country at the expense of the workers.

What there is to be understood is that at the time when the government has developed social programs, nationalized sectors of the economy and had the pretension of a better distribution of the wealth was only an erratic and inconsequent detour in History.

We are only assisting to the return to "normality". What more natural thing than to have the financial, natural and human resources of the State than to serve corporation's interest thru subventions, loans without interests or fiscal evasion?

The common saying is to deny, in our common belief, the role and intervention of the State. It is to make us believe that the advantage of private corporations is dynamism, expertise and efficiency of this model. Versus the weight, incompetence and frivolous of the providence State.

This speech leads to perfect imbecility to make us think that Neo-liberalism is the only viable option. We are taught to believe that the only reason of investment is not profit but jobs creation. That it is for pity, for compassion for a neighbor that one creates a job. For this guy that wouldn’t know what to do of him if he was not an employee.

So, if we don't moderate our elite, they will ruin themselves while creating so many jobs for the People. We must all mobilize in emergency to have new laws to protect our compulsive investors.

# posted by DrFloyd @ 2:07 AM

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