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The Economic Freedom Network
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Ideas, Liberty and Freedom
by Ben Pascuzzi, University of Alberta,
Law
Ideas are very powerful things. They can change the political, economic and social
landscape of a society without a single bullet being fired. Ideas can't be fought with
soldiers or tanks or computers.
Elites in human history, be they political, economic, or religious, have tried to stamp
out what they considered to be "dangerous ideas that threaten social
tranquillity" but have failed. In the end, as long as the human mind remains free,
new ideas will emerge.
Those of us who value individual liberty should not look upon political correctness,
special interest groups, university speech codes, or even blatant racism and sexism
(sugar-coated as "affirmative action") as our primary enemies. Our enemy is,
rather, the lingering ideas of socialism that persist in our society.
Ideas like, "the government can spend my money more wisely than I can,"
"the reason we have poor people is because others are rich," etc., continue to
place constraints on political, social, and economic liberty. Only when these ideas are
put to rest once and for all can we move towards a truly free society.
This is what we must present to Canadians: individual liberty is not a means, but an end
in itself. We want to roll back the welfare state, not to hurt the poor, but to save them;
we want to remove limitations on free speech, not to promote hate, but to end it; and we
want to dismantle employment equity and affirmative action programs, not to marginalize
groups, but to liberate the individuals these groups claim to represent.
In the end, one simple statement should be kept in mind: you do not free someone by taking
the freedom of others and, when the state does, it enslaves us all.
Who Ya Gonna Call? ... P.C. Busters!
by Ezra Levant, University of Alberta,
Law
When a politically correct (P.C.) witch-hunt comes to campus, will you know
how to respond?
You'd better.
Recent developments suggest that a P.C. crackdown at your university is just a matter of
time. For example, every law school in Canada now has two different admissions
procedures-one for minority racial groups, and the other for everyone else. Same thing for
professors-they're hired by quota too.
______________________________________________________________________
You can be a statistic-just another road-kill on the highway of political
correctness. Or you can be a P.C.-busting hero.
______________________________________________________________________
And don't get any bright ideas about criticizing these policies: restricted speech and
conduct codes have come to campus as well.
Look around you. Is there a "human rights" office on your campus? Odds are, the
"rights" promoted wouldn't be found in any dictionary. In fact, at many schools,
the human rights office is actually in charge of drafting the affirmative action plans,
calculating the racial quotas, and writing the speech codes!
The crackdown is scary. With all these new rules and all these new rulers, something's got
to give. After all, you can't have cops without bad guys. That's where you, the
politically incorrect student, come in: you're the bad guy.
Maybe you ask a few too many questions of your socialist professor. Maybe you challenge
the sacred cows of racial set-asides and affirmative action. Maybe you violate the speech
code-you know, saying Manitoba instead of Personitoba.
One day, your professor might ask you to stay after class. You'll be told to tone it
down-the word "please" will be used-but the speech code will be mentioned too.
Or, you'll be "invited" for a meeting with your dean. You know, nothing serious.
You'll be told to stop writing those pesky letters to the school newspaper-please. But
they'll also pull out the student code of conduct and threaten you with discipline.
You've got a choice to make.
You can be a statistic-just another road-kill on the highway of political correctness. Or
you can be a P.C.-busting hero.
To win, bring the debate on to your turf. It's not that tough. Think of it as political
judo-using your opponents' moves against them. Here are some tips:
- Bureaucrats work by threats. So rule number one-and this is critical-is to bring a
witness to every P.C. encounter. You'll show the bureaucrats that you mean business. More
importantly, you'll be able to prove it if they threaten you. And they will.
- Bureaucrats love rules. So always use their rules against them. If a committee wants to
investigate you, demand to see their "terms of reference," the bylaws they have
to play by. Demand to see every relevant document. Be tough. Think "hero."
- Always challenge their authority. Do they have the right to make you attend a hearing,
to punish or threaten you? Remember, these professional busy-bodies think this is fun.
It's up to you to make sure they're not having any more fun than necessary.
- Finally-and this is the exciting part-realize that you'll never win in their kangaroo
courts. You must take your battle against P.C. to a fairer court: the court of public
opinion. You must call in the media.
Expose the bureaucrats. Shine the bright lights of publicity
on them. Make them explain themselves. Embarrass them. Hit them where it counts-their
alumni fundraising. Remember, they'd hit you where it counts too, if they could.
It's time to put up or shut up. I guess it comes down to this: do you believe in freedom?
If you don't, go back to bed. If you do, get ready, little P.C. buster.
Welcome to the fight of your life.
Choose your enemies as carefully as you choose your friends.
Towards A Free Labour Market
by Raphael Solomon, University of Toronto, International Relations
Sixty years ago in the U.S., the Democrats under Franklin D. Roosevelt legitimized
revolutionary ideas of the left. Recently, governments have been elected vowing to
overturn one of these entrenched ideas-that big government must interfere in the everyday
lives of the citizenry.
One particular area has been ignored by the politicians and by the intellectuals
supporting them. Manning, Gingrich, Klein, Harris-none have plans for a true revolution in
the labour market. A truly free economy has a free labour market.
A labour market is composed of two groups: employers and employees. Employees are allowed
to band together in unions to set the price of labour, but employers are not allowed to
form cartels to set the wage rate. This is inherently unfair and unfree.
Union monopolies gain benefits for their members at the expense of non-unionized workers,
consumers, shareholders, and the general taxpayer. Unions tend to represent narrow private
interests at the expense of the public at large. A possible free market solution is to
implement right-to-work (RTW) legislation under which individual workers would have the
right to join a union on a voluntary basis.
By making union membership voluntary, consumers would gain, producers would gain, and
efficient employees would gain. Unions that did not enlist enough members would be put
"out of business" as they evidently do not represent the interests of the
workers.
Assume that, under a traditional union contract, all employees of a certain firm make $20
per hour. However, some workers should be paid more; some less. With RTW laws, each
employee would be paid his worth, there would be no wasted surplus in the labour market.
With increased globalization of trade, flexibility in the labour market is necessary if
Canada is to attract investment capital and remain internationally competitive. Such a
revolution in the labour markets in Canada is long overdue.
Moral outrage is the most powerful motivating force in politics.
Generation Taxed
by Sean McKinsley, University of
Calgary, Political Science/Economics
Gone are the days of trouble-free youth. In Canada, every new child
is born $31,000 in debt. Statistics used in this article have been compiled from Alberta
Public Accounts, 1993-94; Isabella Horry, Filip Palda, and Michael Walker, Tax Facts 9,
Vancouver: The Fraser Institute, 1994; and Christopher Good, "The Generational
Accounts of Canada," Fraser Forum Special Issue, August 1995.Note
This is the brutal reality facing future generations who will inherit a public debt of
more than $2 trillion. Their taxes will have to pay the bills racked up by our
politicians' out-of-control spending and promises of more spending.
Consider that today's generation pays a tax rate one third greater than its parents. In
1961, taxes amounted to 33.5 cents of every dollar earned by the average Canadian family.
In 1995, it's nearly half of every dollar.
What if the 1995 rates were to increase by 50 percent? Sound impossible?
Unfortunately, this is not only possible-it is probable. For future generations-newly born
Canadians, and those just now entering the workforce-the future tax burden could reach
between 65 and 75 cents of every dollar earned.
The cause of this tax explosion? Politicians have been unwilling to stop spending. In
addition, they have tried to balance the books by hiking taxes. In fact, higher revenues
have only meant higher expenditures. In 1960, government revenues were 27 percent of
Canada's Gross Domestic Product and spending was 29 percent. By 1993, revenues were 44
percent of GDP and spending was 51 percent.
______________________________________________________________________
Let's pay our bills today rather than cater to the "tax, borrow, and
spend" gang that threatens to destroy our hopes and dreams.
______________________________________________________________________
The effect of this tax explosion on the younger generation-Generation X, as we are
called-is harsh. Canada's future crop of professionals, technicians, farmers, and
tradespeople will see their dreams of buying homes and raising families impeded by
skyrocketing taxes and ballooning public debt. Generation Xers will be the first
generation in Canada to work as hard as their parents yet have a lower standard of living.
We will undoubtedly experience the highest effective rate of tax in the history of Canada.
Generation X? We are Generation Taxed!
Most Canadians understand that forcing this tax burden on future generations is immoral.
The solution is to protect both present and future Canadians against harmful government
policies of tax, borrow, and spend. Politicians have been unable to say "no" to
the special interest groups and their whining for increased spending, financed on the
backs of future generations. Statutory limits must be imposed on politicians' taxing,
borrowing, and spending. Tax and expenditure limit laws (TELs) are needed.
But it is not our fight alone. Canadians-young and wise alike-are calling for TELs.
Alberta and Manitoba have taken important first steps by adopting balanced budget
legislation. Manitoba has also passed a Taxpayer Protection Act. Ontario's
recently-elected Premier Harris has pledged to follow their lead. These provincial
governments have recognized that taxpayers are sick of having no say in tax increases.
The time has come to leave the dangerous debt path that Canada is travelling on. Let's pay
our bills today rather than cater to the "tax, borrow, and spend" gang that
threatens to destroy our hopes and dreams.
[Editor's note: For a detailed analysis, refer to Robin Richardson, "Watch Manitoba
for the Strongest Balanced Budget Law in Canada," Fraser Forum, September 1995, pages
19-20.]
Actions have consequences
Double Trouble for Transfer Bubble
by Kevin Garvey, Canadian Securities
Institute, Canadian Securities Course
On June 19, 1985, the Prime Minister was confronted by a group of
angry seniors protesting plans to reduce old age pensions. "You made us vote for you,
then goodbye Charlie Brown" was the defining sound bite that aborted the federal
government's proposal to control individual transfer costs. What was squandered was a rare
opportunity to tame the growth of the "generational accounts."
Chris Good at The Fraser Institute has recently completed a pioneering study on
generational accounting. Generational accounting is a method of calculating the future
stream of government taxes, transfers, and expenditures based on demographics and
population. Generational accounting helps determine whether public policy is sustainable
given the fact that, eventually, governments must earn enough revenue to pay their bills.
The study reveals that crushing taxes loom for young Canadians if we continue on our
current course. Christopher Good, "The Generational Accounts of Canada," Fraser
Forum Special Issue, August 1995.Note
Under our ostensibly "pay as you go" social welfare system, transfer payments
from government are redistributed to individuals in the form of unemployment insurance,
welfare payments and retirement pensions. The funding of these payments is based on the
government's ability to tax labour market participants in order to pay the
non-participants.
This is the political quagmire. Currently, 35 percent of our population is over the age of
50 and 10 percent of the workforce is unemployed. These groups are unlikely to approve of
benefit reductions, yet if fiscal reforms are not imposed quickly, we will hamstring
future generations of Canadians with unsustainable debt levels. Over the next 40 years,
the number of Canadians over the age of 65 will double, and the ratio of workers able to
support them will drop from 5:1 to 3:1. Unfortunately, as George Bernard Shaw observed:
"A government which robs Peter to pay Paul, can always count on the support of
Paul."
Governments have become masters at shifting and shuffling the real cost of these massive
inter-generational transfers. What began as a small boil on the backside of government
balance sheets has become a malignant tumour, bulging from the federal government's annual
financial statements in the form of footnotes.
The current government has precious few public policy options at its disposal. In order to
sustain our current transfer programs, the government should begin to pursue an aggressive
immigration policy aimed at attracting young, skilled, employable immigrants. This policy
should be combined with a reduction or freeze in current transfer payments to individuals
in the hope that productivity remains stable at the 0.6 percent per capita growth range.
If "radical" and "revolutionary" are not part of your vocabulary, they
will be soon, Charlie Brown.
You can't save the world if you can't pay the rent.
CLUB NEWS
There are a number of clubs organized by, and targeted towards, Canadian youth that
provide forums for discussion of free market, classical liberal ideas. Some host guest
speakers, others simply have open discussions on public policy topics, but all offer an
opportunity to learn, to meet like-minded people, and to have fun. Why not contact one of
the clubs below:
Laissez-Faire Club of Vancouver
Contact: Tracey Nicholls Taylor at (604) 525-0309
Monthly meetings are held in The Fraser Institute's boardroom for spirited discussions of
public policy issues within a classical liberal framework.
Laissez-Faire Club at the University of Alberta, Edmonton
Contact: Ben Pascuzzi at (403) 447-4940
Established three years ago, the Laissez-Faire Club at the U of A brings in prominent
speakers and organizes various public events.
Laissez-Faire Club of Calgary
Contact: Rob Anders at (403) 680-4442
@BODY IN BOX = Do you enjoy hearing about smaller government and less regulation? Come on
out to the Laissez-Faire Club of Calgary. It's free to join.
Laissez-Faire Club of Toronto
Contact: Avril Allen (416) 595-0179
This newly-formed club is looking for youth in the Toronto area who would like to discuss
free-market ideas and eventually host events. Everyone welcome!
Amis de la liberté, Montreal (discussions in French)
Appelez-nous: Michel Kelly-Gagnon (514) 323-7576
Les amis de la liberté réunissent un groupe informal de réflexion qui s'intéresse aux
aspects politiques, économiques et philosophiques de la liberté individuelle. Les Amis
de la Liberté cherchent à mettre en oeuvre des moyens de promouvoir le libéralisme
classique au Québec et d'explorer les avantages du libré-marché. Nous organisons
notammant des déjeuner-conférence a tous les mois.
Book Reviews
What Everyone Should Know About Economics and Prosperity by James B. Gwartney and Richard
L. Stroup, published by The Fraser Institute, 1993
Forget Economics 101. New age economics is nothing more than dollars and sense-common
sense, that is. You don't have to teach me marginal utility to have me know that no sip of
a slurpee tastes quite like the first. Keynes is dead and all that matters now is supply
and demand.
The ideas in The Fraser Institute's "What Everyone Should Know About Economics and
Prosperity" are simple and concise. No detailed graphs and no complicated language or
theories. It isn't hard to comprehend such concepts as "Incentives Matter" and
"There Is No Such Thing As A Free Lunch." Why? Because this is the economics of
every day reality.
Interesting examples applicable to our world are given to support simple ideas. Learn how
a centrally-planned economy wastes resources. See why legislators run budget deficits and
what we can do as voters to end it. Read why government helping some at the expense of
others leads to economic retardation and plunder. Most importantly, realize the logic of
the free market and come to understand why it works! In following our own self-interest,
we assist others. In the words of Gwartney and Stroup, "[Sam] Walton and [Bill] Gates
made a lot of money because they helped a lot of people."
Help yourself. Succumb to the free market and buy this book.
Reviewed by Stephanie Schramm, University of Calgary, Political Science
[Gwartney & Stroup's book is sold to students for $6 plus $4 shipping and handling,
and GST.. To order your copy, call 1-800-665-3558.]
Une Société Sclérosée by Professor Jean-Luc Migué
In the past few years, it has become a virtual cliche to talk about young people who have
no future and who must grapple with unemployment, suicide, AIDS, dropping out of school,
and the national debt, to name only a few issues. Generation Xers face a bleak future from
an economic, psychological, and social standpoint.
Professor Migué's latest book is a realistic account of the problems encountered in 1995
by young Canadians looking for their first job. The Professor of Economics at the National
School of Public Administration in Quebec argues convincingly that, since the Quiet
Revolution, growing government intervention has led to ever-rising unemployment. Excessive
regulation of work, the heavy tax burden borne by employees and employers alike, the
monopoly of unions, and trendy social views (job sharing, positive discrimination, minimum
wage, etc.) are largely responsible for steadily rising unemployment rates.
Migué does not specifically single out young people as victims of this move to exclude
the less organized from the labour market. Yet, one does not have to be a mind reader to
understand that young people are the first ones to be adversely affected by political and
bureaucratic decisions.
Every day, one sees how easy it is for our politicians and bureaucrats to make decisions
at the expense of the younger generation and for the benefit of their voters and friends.
Probably the most serious consequence of this is the increasing debt which has resulted
from attempts to appease a multitude of special interest groups. When our federal MPs
discussed symbolic cuts to their gold-plated pensions, it never even occurred to them to
apply the cuts retroactively to those already benefitting from this costly plan.
Migué's book is a must-read for those who are interested in these fundamental questions.
The "true" causes and the "real" culprits of the paralysis of the
Canadian job markets are identified and clearly analyzed through a highly interesting
empirical process.
Young people out of work, young social assistance recipients and students who are still in
school not by choice, but by circumstance, should read Une société sclérosée in their
spare time. Perhaps it will help them better understand why their job prospects are not
quite as golden as those of their elders.
Reviewed by Eric Duhaime, École national d'administration publique
[Editor's note: Although this book is available only in French, we decided to publish the
English translation of the book review as we felt that it provided our anglophone readers
with valuable insight into the concerns of Quebecers. Professor Migué's book is published
by L'etincelle of Montreal and is available for $14.99. Please telephone (514) 481-2440 or
fax (514) 481-9973 for more details.]
If you don't read, you can't lead.
Careers in Ideas
Although free market ideals can be honed and practised in almost any environment, you may
feel especially inclined towards a career in academia or the arts. If you love ideas,
think them important, and want to have an impact on the future, you might consider a
career in ideas, which may take one of several paths:
academia, which will involve some combination of teaching and research;
journalism, print (newspapers, magazines, books), broadcast (radio and television) or
both;
public policy, which may involve analysis of public policy issues such as taxation, social
programs, health care, government indebtedness, labour markets, etc. at both the
provincial and national levels;
film, theatre, and fiction, whether it be scriptwriter or director, novelist or editor.
Click here to view Table
The test of moral ideas is moral results.
Take These Seminars...
The Fraser Institute is the only Canadian organization currently hosting market-oriented
seminars and colloquia for youth. However, there are programs run by U.S. outfits which
you may be eligible to attend and should be aware of. The seminar opportunities reviewed
here represent two U.S. organizations who open their programs to Canadian students
interested in free market ideals.
Youth Leadership School
Organizations like the Leadership Institute train activists who believe in the ideals of
economic freedom and individual responsibility. Attending a Youth Leadership School taught
me how to organize grassroots-based youth campaigns. They can teach you how to politically
mobilize youth in order to create a winning psychology for your campaign.
Morton Blackwell, the founder of the Leadership Institute, was the youngest delegate for
Barry Goldwater to the Republican National Convention in 1964. That experience made him
realize that technology is as important a part of political success as are ideas. Morton
started the Leadership Institute to teach young activists the skills necessary for them to
make a difference in the public policy process.
Remember, nothing moves in the public policy process unless it is pushed.
Reviewed by Rob Anders, University of Calgary, Political Science grad '94.
[The Leadership Institute's program, Youth Leadership School, is a gruelling
(8am-midnight) weekend-long seminar that teaches political technology and campaign
strategy in circumstances designed to simulate actual campaign conditions. In 1996, two
seminars are being held just south of the border: February 17-18, Ithaca, NY; and March
23-24, Seattle, WA. There is a $50 registration fee which covers meals and conference
materials only. Further information on these programs can be obtained from the Leadership
Institute at (703) 321-8580.]
The Institute for Humane Studies
The Institute for Humane Studies operates out of George Mason University in Fairfax,
Virginia. This is how it seees its mission:
IHS is an ideological organization, in the true sense of the word-the study of ideas. Of
course we are interested in ideas that we believe will improve the quality of life of
humanity. These ideas are based on the dignity and worth of each individual and, flowing
from that, individual rights and voluntarism in all human relations. The foundation gives
rise to a confidence in free markets and the institutions of private property, the rule of
law, and an expectation of individual responsibility.
______________________________________________________________________
Many of the American students identified themselves as libertarians and held a
much more radical view of classical liberalism.
______________________________________________________________________
The week-long seminar consisted of four one-hour lectures per day, each lecture followed
by a 15-minute small group discussion and a half-hour question and answer period. The
lectures were provided by four different instructors in the fields of economic history,
law, economics, and political philosophy. Advance readings sent to participants dealt with
the writings of F.A. Hayek, Ayn Rand, Richard Epstein, and Ludwig Von Mises, among many
others.
As neo-conservatives, most of the Canadians there agreed that the role of the free market
is central to sustainable economic success and human dignity, but that the role of the
state, albeit a very limited one, is crucial for the purposes of dealing with law and
order and some areas of market failure.
Many of the American students identified themselves as libertarians and held a much more
radical view of classical liberalism.
I would highly recommend this seminar to any scholar with an interest in ideas. I have
gained a much greater appreciation for the concept of liberal thought and the high quality
of intellectual thinkers made this a week well spent.
Reviewed by Norman Groot, Wilfrid Laurier University, Economics
[The Institute for Humane Studies offers week-long summer seminars, held throughout the
U.S., mixing lectures and discussions about liberty and classical liberal ideas, designed
to stimulate and challenge your views on public policy issues. Some of the seminars are
geared towards undergraduates, while others are intended for graduate students, and still
others are for writers and film makers. If you are chosen to be a participant, all your
accommodation and meal costs are covered-all you have to pay is your travel to the U.S.
destinations. Information about their programs can be obtained from the IHS at (703)
934-6920.]
You can start too late, but never too early.
... And Internships
Looking for a summer job? Consider a summer internship. Internships are a great way to
gain experience while contributing to the public policy process. Some of the jobs you
might perform as an intern include library research, writing for the organization's
publications, editing, and event participation. Below you will find two examples of
internship opportunities.
The Fraser Institute
As an intern, I was given the opportunity and support to write a book-almost unheard of
for a twenty-three year old student. Tentatively titled Youthquake, the book documents the
tremendous debt burden that government overspending is putting on Generation X.
I also attended the Institute's summer events-the guest speakers, the round-table lunches
and the detailed briefings. Of course, simply working in the Institute itself was a great
way to learn about the free market, from the experts. I leave The Fraser Institute knowing
that I have a tremendous ally in the fight for liberty and free markets. The wealth of
research, the quality of the staff, and the vision of Dr. Walker are a potent combination.
The Fraser Institute is an indispensable resource for any student who cares about freedom
in general, and free markets in particular.
In fact, I think that the Institute's internship is a vital addition to any education. The
Fraser Institute "tops up" any university degree, by providing a free market
approach to the world of economics and politics.
The research skills I practised, the free market ideas I learned, and the leading public
figures I met made this an unforgettable summer.
Reviewed by Ezra Levant, University of Alberta, Law
[The Fraser Institute offers summer internships to university students undertaking
specific research projects under the guidance of policy directors. During their summer
terms, interns strengthen their research and writing skills, take part in Institute events
and work along-side Canadian public policy experts. Interns also have the potential for
having their research published in Fraser Institute books or newsletters. Once the
internships are complete, the Institute continues to support and mentor the students with
a view to helping them secure positions in their chosen fields. Information can be
obtained by contacting Annabel Addington at The Fraser Institute, (604) 688-0221, ext.
315.]
Charles G. Koch Summer Fellow Program
My particular internship was sponsored by the Charles G. Koch Summer Fellow Program. An
internship is an incredibly worthwhile investment if you're interested in a serious
education about advancing free markets and fiscal sanity in government.
And you won't be alone if you do decide to come. Every summer, Washington, D.C. is taken
over by interns from all parts of the United States and some from Canada. Many of the
people who staff the think tanks and advocacy groups were interns themselves only one or
two summers ago.
During their internships, students learn about the policy process and the skills that are
necessary to effect policy change. No other experience could leave you feeling more
motivated and ready to act on your beliefs than being an intern.
Reviewed by Avril Allen, University of Toronto, Law
[The Charles G. Koch Summer Fellow Program is a ten-week program that includes two weeks
of seminars on market-based public policy and an eight week internship with a Washington,
D.C., policy institute. Information about this program can be obtained from Matt Estabrook
at the Center for Market Processes at (703) 934-6970.]
Keep your eye on the main chance and don't stop to kick every barking dog.
Turnaround By Young People In Quebec
by Eric Duhaime, École national d'administration publique
As part of its approach to the referendum, the Parti Québécois government set up
travelling commissions responsible for ascertaining the political mood of various
religious and age groups.
The government believed that the work of the Commission des jeunes sur l'avenir du Québec
(Youth Commission on the Future of Quebec), as part of this exercise in information and
participation, would be a real sovereigntist pep talk that would confirm, once again, that
young people as a whole support the government's approach to the referendum. How surprised
the government was when the report by the Commission des jeunes was finally submitted on
March 20, 1995!
______________________________________________________________________
. . . young people are not changing; the times are changing.
______________________________________________________________________
The report hardly mentioned the plan for sovereignty. Its first three recommendations
called for the elimination of three things: job security for public servants; the Conseils
régionaux de concertation et de développement (Regional Consultation and Development
Boards); and school boards. The report also recommended the passage of basic legislation
on deficit control; challenged the sacrosanct universality of social programs; and called
for a return to the principle of responsible schools, over which parents would have real
power, offering courses which instill entrepreneurial values.
Those were the findings of six of the eight commissioners on the Commission des jeunes
after it had received over 300 briefs and heard from more than 5,000 young people. In
other words, if the message of giving responsibility to individuals and phasing out
government participation and bureaucracy is being expressed in Quebec society, it is the
young generation that is proclaiming it.
Another encouraging sign is the recent emergence of a group of young libertarians in
Quebec. Calling themselves "Amis de la liberté" (Friends of Freedom), some 30
individuals, mainly young people, meet every month in order to attend a lunchtime talk and
debate the advantages of the free market, individualism, and tolerance.
The turnaround by young people in Quebec may not be surprising, given their situation.
Young people in Quebec are more affected by damaging government obesity than are young
people in other Canadian provinces or American states.
Quebec's per capita debt is the highest of all the provinces. The province's unemployment
rate in 1994 for people aged 15 to 29 was 15.7 percent-not counting the 12.1 percent
already receiving social assistance or the incalculable number of young people who had
artificially become students because of lack of work. Young people aged 15 to 29 accounted
for only 22 percent of the population in 1991, down 7 percent from ten years earlier. That
means fewer young people to pay for ever-more generous and numerous pensions for baby
boomers and for the skyrocketing health care costs of an aging population.
The gravity of the situation for the upcoming generation undermines not only the finances,
but the enthusiasm and energy of tomorrow's labour force. We are now seeing record suicide
and dropout rates among young people in Quebec.
Although most young people still support the sovereignty option, they do so for very
different reasons than did their parents 30 years ago. They see Canada as a country whose
fragile unity is held together through the massive indebtedness of all its citizens. Young
people no longer want to support the federal government at the cost of their future. They
see sovereignty as Quebec's only available means to end the federal government's
irresponsibility, duplication of services, and ruinous jurisdictional overlap.
As popular journalist Lysiane Gagnon perceptively noted in her comment on the Commission
des jeunes report, young people are not changing; the times are changing. How right she
is! What ideals, if not individualism and freedom of choice, can this generation afford-a
generation that knows it will have to bear the burden of interventionism inherited from
the Quiet Revolution?
In moments of crisis, the initiative passes to those who are best prepared.
The Best Health Care System in the World?
by Cynthia Ramsay, Health Care
Economist, Fraser Institute
Universal, accessible, portable, comprehensive, and publicly administered! These are the
five principles on which the Canadian health care system is based. They are enshrined in
the Canada Health Act (1984) and they make the Canadian health care system the best in the
world. They are worth protecting at all costs . . . .
And so goes the rhetoric of the federal health minister and of other supporters of
Canada's current health care system. It should only take a few examples to convince you
that the rhetoric is just that-rhetoric, without much substance.
Universal
British Columbia and Alberta have medical premiums. It is estimated that 95-97 percent of
people are covered by provincial insurance in B.C. Thus, in B.C., roughly 108,800 to
181,370 people do not have public health insurance.
Accessible
A Fraser Institute study indicates that waiting times for surgical procedures vary greatly
across provinces, the wealthier provinces tending to have the shorter hospital waiting
lists. Waiting lists might be acceptable if the length of wait was based purely on medical
necessity, but studies have shown that 80 percent of the time, patients who jump to the
head of the line in B.C. do so for non-medical reasons (ie. at the request of senior
Ministry of Health officials).
An Ontario Cancer Treatment and Research Foundation study showed that waiting times for
cancer treatment in Canada are 3 to 4 times longer than in the United States. More
importantly, it reports that the waiting times for treatment in Canada are substantially
longer than what radiation oncologists consider to be the maximum medically acceptable
time to wait.
Portable
Ask Quebecers if their health plan is portable. You will find the answer is no. Quebecers
who find themselves requiring medical services in another province must pay out-of-pocket
for these services. When they return home, they will be reimbursed only for the amount
these services would have cost if performed in Quebec.
Comprehensive
The list of services covered by the Act is not, never has been, and never will be a
comprehensive list. There is not even a national consensus as to what services are
medically necessary and, therefore, should be publicly insured. Since health is a
provincial responsibility, different provincial insurers cover different procedures.
Publicly administered
In the Canadian system, the government is, more or less, the monopoly employer of health
care personnel. When labour negotiations break down, there are no other sources of care
available, and patients pay the consequences. With the latest piece of provincial
legislation in British Columbia, the Medicare Protection Act, the B.C. government is
extending its powers even further. Even if a doctor decides to opt out of the medicare
system entirely (so that he receives no funding whatsoever from the government), the
government reserves the right to set his fees according to what it deems acceptable. In
essence, the government reserves the "right" to publicly administer the private
sector!
Despite the contentions of Canada Health Act supporters, its principles are not being
upheld. It is a myth that Canada has a one-tier health system in which everyone has equal
access to quality health care. It is not convincing to use the Canada Health Act as an
argument against moving to a two-tiered health system in Canada.
In a two-tiered system, public and private deliverers and insurers of health care must
compete with each other for clients (patients). A two-tiered system does not mean that
there will be one quality of care for those who can afford it and an inferior quality of
care for those who cannot. The public system will be forced, by competition, to offer a
level of service comparable to that being offered by the private system.
A two-tiered system means that waiting lists can be reduced, that patients can have
greater control over decisions which concern their own health, and that Canada can truly
have the best health care system in the world.
All gains are incremental; some increments aren't gains.
"A Rose by Any Other Name..."
by Sonia Arrison, University of British
Columbia, graduate student in Political Science.
Many people-with good cause-are confused about the terms
"conservative," "liberal," and "classical liberal." The
meanings of these words have changed over time and are further blurred in everyday usage
by the press. For example, those who believe in the free market are routinely lumped in
with other individuals, such as holocaust denier Ernst Zundel, under the broad terms
"right wing" or "conservative." It's time to clear up confusion
surrounding these words and also to show why free market thinkers do not belong in the
"conservative" category.
First, a genuine "conservative" is not simply someone who belongs to the
Conservative Party or calls himself or herself a conservative. Likewise, a real liberal is
not simply an individual who every year votes for the Liberal Party of Canada. Parties in
Canada are not about conservative, liberal, or socialist principles. Rather, Canadian
parties are pragmatic. They adopt platforms and ideas that will serve their main purpose:
to get elected.
The words "liberal" and "conservative" originated in Europe, and their
roots reveal their true meanings. At the base of the word liberal is "libre" or
free. In the original use of the term, a liberal was someone who valued freedom. In
contrast, the word conservative has as its root "conserve." To conserve is to
preserve, or to oppose change. The doctrine of conservatism is a doctrine of clinging to
the past and of distrusting new ideas and innovations.
Conservatives are different from classical liberals because they do not believe that a
"spontaneous order" can occur in a completely free market. Conservatives see
order as "the result of the continuous attention of authority." Therefore, a
true conservative cannot support the free market. Unlike the classical liberal who is
optimistic that the self-regulating forces of the market will adapt to new problems, a
conservative is a pessimist. In the European sense of the term, conservatives are
Monarchists; the past to which they cling is one of order imposed by a sovereign.
Clearly, the definition of conservatism changes along with history. Conservatives today
usually value small government and family values which they believe were in place when
Canada was born. The interesting thing about conservatism is that which specific past is
conserved is a matter of temporal destiny; and therefore there are no ultimate principles
of conservatism. This is relevant because no guiding principles are bad principles. Rather
than being a "forward looking doctrine," conservatism is a "backward
reaching doctrine" and hence will not advance until pulled along by some strong
force, whatever that force may be.
In Canada, the strong force has predominantly been a socialist force. Clues as to what a
socialist values can be taken from the foundations of the word itself: "social."
Socialists are individuals who argue for collective measures such as "socialized
medicine." They believe in large government, and that the collective good of society
is more important than individual freedoms. In Canada, the term "liberal" has
come to symbolize socialist ideals which explains why many classical liberals have adopted
the label "libertarian."
The interaction between theory and practice has resulted in a strange labelling shift.
Those Canadians whose principles led them in the past to call themselves
"socialists" now call themselves "liberals." Individuals whose highest
value is freedom are now forced to use the awkward term "libertarian" or
"classical liberal"; and conservatives are often confused with libertarians who
advocate the free market.
______________________________________________________________________
In Canada, the term "liberal" has come to symbolize socialist ideals
which explains why many classical liberals have adopted the label "libertarian."
______________________________________________________________________
The confusion between libertarians and conservatives often stems from an agreement between
the two that there should be less government. However, there is an enormous difference
between conservatives and libertarians in terms of why less government is favoured.
Libertarians see it as a way to guarantee individual freedoms while conservatives merely
want to "go back to how it was"-or how they think it was.
This difference is important. After all, conservatives favour a society in which
established values can justify privilege or monopoly to shelter certain people against the
forces of change. That type of society is not one that appeals to many.
You can't beet a plan with no plan.
Condamnes à innover
by Pierre Desrochers, National School
for Scientific Research, Urban Studies
It is true that an isolated workman often throws away a number of small things which would
have been collected and turned to good account... but waste of this kind can scarcely
occur... even if it is in the hands of small men; and there is not very much of it in any
branch of industry in modern England, except agriculture and domestic cooking. No doubt
many of the most important advances of recent years have been due to the utilizing of what
had been a waste product; but this has been generally due to a distinct invention, either
chemical or mechanical, the use of which has been indeed promoted by minute subdivision of
labour, but has not been directly dependent on it. Cette citation est tirée de la
huitième édition de l'ouvrage. Voir Marshall [1920] 1976: 233.Note
-Alfred Marshall,
Principles of Economics,
1ère édition, 1890
Selon une croyance répandue, la croissance économique et le progrès technologique
détruiraient l'homme et son environnement. Mais comment alor expliquer que des calamités
comme le saccage des forêts, l'érosion des sols et la disparition des terres arables
soient le lot des pays du Tiers-monde ou de l'ancien Bloc de l'Est bien plus que des
économies avancées? Le progrès technologique et la croissance économique seraient-ils
les meilleurs remèdes à nos problèmes environnementaux?
C'est du moins l'opinion de scientifiques aussi réputés que James Lovelock - le père de
l'hypothèse Gaia L'hypothèse Gaia, très populaire mais souvent mal comprise par bon
nombre d'écologistes, postule que la Terre et la biosphère constituent un ensemble
régulateur qui lutte et résiste de lui-même contre les excès risquant de le dégrader.
Voir Lovelock [1979] 1993.Note - pour qui la pollution (entendue au sens de déversement
de déchets) est aussi naturelle a la "Terre vivante" que le fait de respirer
pour les espèces animales. Il ajoute néanmoins que pour demeurer maître du génie que
nous avons libéré de sa bouteille, nous sommes condamnés à innover et à concevoir
continuellement de nouvelles technologies.
La plupart des idées reçues sur la nature du progrès technologique sont pourtant le
plus souvent erronées. Qui sait ainsi que la technologie précède presque toujours la
science et que les inventions commercialisables les plus radicales sont surtout le fait
des petites et moyennes entreprises et non pas des multinationales ou des laboratoires de
recherche? En fait, l'innovation technologique procéderait bien plus par la combinaison
de plusieurs procédés plus anciens et serait essentiellement additive, i.e. qu'elle
résulterait de petites innovations continuelles et non pas de changements radicaux, comme
par exemple la découverte de l'acier ou de l'électricité. Le lecteur voulant une bonne
introduction au sujet ainsi qu'une explication plausible quant aux facteurs ayant mener à
la prédominance de la vision surestimant le rôle de la recherche fondamontale pourra
notmment consulter le numéro spécial "The Interaction of Science and Technology in
the Industrial Age" de Technology and Culture 17(4), Octobre 1976. Pour un texte plus
récent traitant sommairement de tous ces points, voir Parayil (1991).Note
Comment cela se traduit-il en matière environnementale? Essentiellement par l'apparition
de nouvelles technologies moins dommageables On peut ainsi rappeler que, malgré leur
caractère nuisible, l'exploitation du charbon a permis de mettre fin au saccage des
forêts et l'utilisation du pétrole a mis fin au massacre des baleines, tuées pour leur
huile. Le charbon et le pétrole étaient pourtant considérés comme de peu d'interêt
jusqu'à ce qu'on mette au point des technologies en permettant l'utilisation. En fait, il
est de plus en plus admis que la correction des défauts des technologies existantes est
sans doute le principal moteur du changement technologique. Voir Petroski (1992).Note mais
surtout, comme l'a noté il y a plus d'un siècle l'économiste Alfred Marshall, par le
recyclage de produits ou de sous-produits de l'activité industrielle. Si le traitement de
ce sujet par Marshall est le plus ancien à m'être tombé sous la main, celui de Jacobs
(1969) m'apparaît plus intéressant.Note Il ne s'agit pourtant pas du recyclage intégral
que plusieurs paliers gouvernementaux tentent maintenant d'imposer, où un matériau
retourne dans son produit d'origine (par exemple, le papier journal en papier journal, le
verre des bouteilles en verre de bouteilles), mais bien plutôt d'un usage novateur et
rentable des ressources gaspillées.
Les quotidiens nous donnent continuellement des exemples de réutilisation créatrice des
déchets faites sans coercition gouvernementale: une usine de transformation de poissons
convertit ses déchets en farine de poisson; une centrale au charbon utilise sa poussière
dans des produits de ciment et transforme ses émanations sulfureuses en acide sulfurique;
une laiterie et une décharge municipale convertissent les émanations de leurs résidus
en gaz méthane, etc. (Tomalty et Pell 1994). Pour illustrer à quel point le phénomène
est antérieur à la "prise de conscience environnementale" de certains
législateurs, il suffit de rappeler quelques découvertes archéologiques: une flûte en
os datant de 32 000 ans, une lampe chauffé avec de la graisse remontant à 17 000 années
ou encore des statuettes d'ivoire ayant au moins 14 000 ans (Begley et Lief 1988). Que la
transformation soit faite par le producteur d'un résidu ou une autre entreprise importe
peu. Ce qui semble pourtant certain, c'est que ce processus sera grandement facilité par
l'application d'un procédé techno-logique novateur ou déjà utilisé dans un autre
secteur d'activités.
Bon nombre d'auteurs craignent pourtant que le progrès technologique ne puisse suivre
notre production de déchets nuisibles. C'est cependant oublier que si effectivement
l'innovation résulte pour l'essentiel de la combinaison de plusieurs choses plus
anciennes, le nombre d'innovations devrait croître très rapidement à mesure qu'augmente
le nombre et la disponibilité des technologies (Waldrop 1992). Petroski (1992) a
également élaboré une thèse intéressante selon laquelle la correction des défauts
des produits et procédés est le véritable moteur du progrès technologique; comme il
n'y a jamais rien de parfait, nous pouvons donc être assuré de sa pérennité. De plus,
un examen historique de l'évolution technologique devrait, selon certains chercheurs
(Hueckel 1975, Waggoner 1995), nous rendre optimiste.
Il ne faudrait pourtant pas croire que le progrès technologique est une donne inévitable
de la condition humaine. Le mathématicien Rene Thom (Sorman 1989) ou le métallurgiste
Cyril Stanley Smith (1982) nous rappellent ainsi, parmi d'autres, qu'entre 1880 et 1940 la
vie des êtres humains a été concrètement modifiée par l'apparition de l'électricité
de la radio, du téléphone, du moteur, de l'automobile, de l'avion, des antibiotiques et
de plusieurs autres trouvailles technologiques importantes qui ont été bien plus
significatives que ce que nous avons connu depuis la fin du second conflit mondial.
Comment expliquer la stagnation de l'activité inventive ces dernières décennies? Il
s'agit selon moi de la conséquence logique d'une idéologie interventionniste postulant
que le développement économique consiste à faire toujours plus des mêmes activités
plutôt que d'en concevoir de nouvelles ou que la clef de l'élimination des sous-produits
industriels conciste à diminuer radicalement la production plutôt que de se fier a la
créativité des producteurs pour trouver de nouvelles façons rentables d'utiliser les
déchets. Il est ainsi certain que l'innovation technologique répond aux signaux du
marché et que conséque-mment la distorsion systématique desprix effectuées par nos
gouvernements au nom d'une "restribution plus équitable de la richess" (comme
par exemple les tarifs préférentiels en électricité consentis à certaines industries
"energivores" ou les subventions indirectes massives à l'industrie automobile
par la construction d'autoroutes) a prolongé indûment la vie utile de certaines
technologies et découragé l'apparition d'alternatives plus propres, efficaces et
économiques.
La protection de l'environnement est longtemps apparue comme le noyau dur de la
réglementation, où seule la puissance publique était susceptible de prévenir le
gaspillage des ressources. Il s'agit pourtant d'une position réactionnaire et sans
fondements empiriques car les problèmes environnementaux ne sont pas le lot des
économies libres, prospères at novatrices mais bien plutôt des économies
interventionnistes, stagnantes et sclérosées.
Effort is admirable. Achievement in valuable.
Don't treat good guys like you treat bad guys.
What Is Seen and Not Seen in The Era of the Snappy
Soundbite
Editor's note: For the original use of this phrase, see the
essay "What is Seen and What is Not Seen," by the great 19th-century classical
liberal Frederic Bastiat, in his Selected Essays in Political Economy, (F.E.E., 1964), pp.
1-50. For a more modern exposition of Bastiat's reasoning, see Henry Hazlitt's classic
Economics in One Lesson (Harper & Row, 1979).Note
by Bruce Culp, Columbia University,
Journalism
Easing the pain, the goal of public spending, is conceived in such a manner as to make us
all feel better about ourselves. Whenever the economy stagnates, regardless of the size of
the debt, there are always calls for more government. To see this for yourself, just turn
on the television.
No one likes to see a family in need, particularly a hard-working one. So money is
siphoned away from the taxpayers, and then, in the name of humanity, redistributed to the
less fortunate.
While such initiatives lack practical economic benefits, they do play well in the media.
Politicians score points by showing compassion for the downtrodden in front of cameras.
After all, any public figure who doesn't envision a chicken in every pot is in danger of
never being elected.
______________________________________________________________________
After all, any public figure who doesn't envision a chicken in every pot is in
danger of never being elected.
______________________________________________________________________
That is why "make work" projects are always so popular. Sickened by welfare,
taxpayers can see men being put to work on highways, while the unemployed get the chance
to fulfil their dreams. One can't turn on the evening news today without seeing a
government official, his chest pushed out in an expression of joy, beaming over a shining,
new, public facility.
For many Canadians, "priming the pump" is good for the country. It improves the
quality of life and relieves the burden placed on the battered social safety net. But does
it?
Come to think of it, when the government takes $20 million from taxpayers and uses it to
build a new office tower, who benefits? Sure, a few hundred construction workers get a
year's work. Contractors buy bathroom fixtures. Lumber yards sell 2x4s. For the local
Carpenters' Union, the government contract means easy money. (So easy that the office
tower will end up costing $30 million after over-runs.)
But what if the $20 million were allowed to stay in the hands of the taxpayers? What if
they didn't have to pay the tax? Although it may take some imagination, the money would be
spent much more efficiently. Someone would have bought a case of beer. Another person, a
collection of Mel Torme CDs. A young couple might have put the money in the bank, where it
could have been loaned out to an entrepreneur who was opening a new software company. The
money would have been allocated on the basis of individual preferences which reflect the
highest rate of return on investment.
When the government interrupts the efficient flow of resource allocation, the outcome is
sub-optimal; resources are wasted. Although a building may provide benefits, it does so
only to a small portion of the population. Market forces are replaced by bureaucratic
decree and government spending crowds out private investment-the economy as a whole
suffers.
In a era when snappy soundbites frame the media's agenda, there will be no reporting of
this misallocation of resources. Television crews can't show the number of jobs created by
no tax at all. They can only report on the ribbon-cutting ceremony: the office tower-what
old-time journalists cynically call "the grip and grin."
When you turn on the television tonight and settle into your armchair, be sure to look for
the ground-breaking ceremonies, all of which feature golden shovels digging into your
pocket. Keep in mind, of course, that there will never be any mention of the buried costs
of government taxation.
One big reason is better than many little reasons.
Editor's Corner
Perhaps you have noticed a common theme to the articles in this issue of the Canadian
Student Review; a theme which does battle with an old and particularly stubborn myth; the
impotence of the individual.
Can you remember how many times you've heard the following gems of "collective
wisdom": "Go with the flow"; "You can't fight City Hall";
"If you can't beat them, join them"? These clichés illustrate one of the
greatest lies you will ever be told.
The authors of the articles contained herein all share a commitment to the power of ideas
and the ability of the individual to make them happen. Although they address a wide range
of topics, they all express an allegiance to the concept of intellectual activism which is
summed up in the following quotation:
Ideas cannot be fought except by means of better ideas. The battle consists not of
opposing, but of exposing; not of denouncing, but of disproving; not of evading, but of
boldly proclaiming a full, consistent and radical alternative.
-Ayn Rand, The New Left: the Anti-Industrial Revolution
This flowering of free market activism amongst the "new intellectuals" is not
limited to the pages of the Canadian Student Review. Campus clubs and discussion groups
for recent graduates and young professionals are springing up across the country.
Information about these clubs and how to contact them is provided in the "Club
News" section of this issue.
All of these groups have been founded by and are supported by people who understand that,
far from being impotent, the individual is the source, the fountainhead, of all human
activity. Arenas such as the Canadian Student Review, The Fraser Institute's Student
Seminars and the Laissez-Faire/Amis de la liberté clubs will provide you with the
opportunity to add your voice to Canada's public policy debates.
These are your forums; the free minds-free markets ideas you are embracing are your tools;
rebuild the world in your own image. And, in the words of one of my fellow participants at
The Fraser Institute's 1995 Student Leaders' Colloquium: Have courage.
Tracey Nicholls Taylor
Editor
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Last Modified: Wednesday, October 20, 1999.
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