2004: Where is the talk of economic democracy in this election? It is time for a New Deal for Canada: Real Economic Democracy: By Adam Johnston
May 25, 2004 (Updated May 28, 2004)
With Prime Minister Paul Martin dropping the writ on May 23, 2004, the 38th election for Canada was announced for June 28th. All three of the major parties came out gunning on the first day of the campaign. Prime Minister Paul Martin of the Liberal Party blasted Stephen Harper by saying "Do you want a Canada that builds on it's strengths and values, such as Medicare, generosity and an unflinching commitment to equality of opportunity, or do you want a Canada that departs from much of it's history- a Canada that rejects valued tradition of collective responsibility?" referring Harper and the Conservative Party as an extremist party.
Meanwhile Stephen Harper said that his Conservative Party is a "modern, moderate and mainstream" party, while the Liberal government is corrupt and has broken its promises to account for millions of government dollars through the sponsorship scandal.
On the left, New Democratic Party leader Jack Layton slammed both Liberal Prime Minister and Conservative leader Stephen Harper as "reckless tax cutters" and promised a green vision for Canada where everyone will prosper.
There are some clear things that have come from the first few days from this 2004 federal election.
- The Liberal Party is using the same strategy in 2000 that they used against the Canadian Alliance that won them a majority, this time against the Conservative Party, whether it will work or not, it is doubtful as Canadians are getting very cynical of the federal liberals, especially after the sponsorship scandal.
- The Conservative Party is the party of tax cuts, planning to implement an $ 18 billion package, which would include 25%, cut for middle income earners, eliminating corporate subsidies in favouring of lowering business taxes.
- The New Democratic Party is going green this time, promising to introduce an environmental bill of rights, tax breaks for green investment, as well as an atmospheric fund. Not to mention the usual favourites of the NDP of promising to keep health care public, making post secondary education more accessible to the public.
But probably what is semi disappointing is that no one is talking about creating real economic democracy in Canada. All parties of there ideas of platforms of the usual suspects of issues (i.e. health care, Conservatives want to have some aspects of it private, the NDP wants to keep it public, and the Liberals cannot make up their mind whether to have private or public delivery of essential health services), but no one is willing to take the risk of talking about bread and butter issues that matter to Canadians like the concentration of airline competition, media or the miss-match of skills that is in the labour market with many University/College grads from business, law and arts programs working in low wage jobs like call centre, restaurant, or temp agency work. Not to mention the lack of real employment opportunities in Canada, thanks to relying on huge multi-national corporations for employment. This strategy has been a failure.
Both sides of the political spectrum to a degree have realized to heavily on giving massive corporate subsidies, in hopes of getting massive returns in terms of receiving tax windfall back. Whether it is the Federal government giving huge massive subsidies to the auto companies, or the provincial government giving subsidies to MCI in Manitoba. This strategy has largely failed. You do not have to look too far for examples (i.e. the 2004 federal budget, 2004 Manitoba Provincial budget) to see that this strategy only benefits shareholders and not the general public. This is a classic case for government not to get into business decisions and stay out of subsidizing large companies.
Yes the Federal Liberals and Conservative Party are no doubt the parties of big business and although new financing laws have came intro effect; the large donors will come individually from the CEO's of these large companies.
The New Democratic Party is the best major party best positioned to be against the concentration of the airline, media industries as well as against big business. This is the party that is always been the conciseness of Canada and can best capture the sentiment of Canadians everyone. A large majority of Canadians agree with the NDP on concentration of the big banks, the war in Iraq, the environment and health care.
The major problem with the NDP currently is the public perception that the NDP would send Canada into a major financial black hole, as Paul Martin said "To every problem, the New Democrats propose, the same solution. One that starts with a dollar sign and ends with a whole bunch of zeros".
While this is in large extent a myth (i.e. balanced budgets in Manitoba and Saskatchewan with NDP governments, compared to Liberal government in British Columbia), the fact still remains in public opinion in a large extent that the NDP is big government, and anti-business. The general public in Canada want a protector of health care, the environment and public education, but also Canadians hate government waste and red tape. Canadians want someone to know how our programs will be paid for.
If the NDP wants to lay the ground work for a truly democratic socialist society in a North American context, I recommend it follow a populist vision that has been mention by authors David C. Korten, Marjorie Kelly and Jeff Gates in their recent writings. Call it the "New Deal for Canada". Here is how the New Deal for Canada should work:
- Break up Air Canada into smaller companies and have employees of Air Canada take first of ESOP's (Employee Share Ownership Plan). Air Canada was virtually on the brink of disaster in mid May if it was not for the Canadian Auto Workers being dragged into a horrible arrangement. Add to the fact that Westjet, and Jetsgo are the only other "major" airlines in Canada. This is bad for competition, consumers in general. The fact that Canada is a broad, large country and deserves decent air travel in every part of this great land. What I propose is that the NDP promote breaking up Air Canada into two- three smaller airlines to service the Canadian public better in every area of this country. As well once this is completed, after the break-up of Air Canada, the employees of the smaller Air Canada airlines should get first crack at buying ESOP's into the smaller airlines and having at least 40% of seats on the boards of each of these companies. This would promote the idea of industrial workplace democracy, as well as give Canadians a better and fair airline industry in which to choose from.
- Get tough on Anti-Trust on Media conglomerates if one thing that the NDP can do to promote free market economics yet promote one of the goals of democratic socialism is to promote getting tough on anti-trust on huge media companies like Canwest Global. The fact is that media concentration is a major issue in Canada and a majority of Canadians do not like having only one or two major voices in the media. Why not promote Anti-trust laws that we have in Canada to promote breaking up media concentration like Can-West Global or Bell (CTV).
- A new tax policy on ESOP's as well as consumer and worker co-operative ownership of business enterprises in Canada. Canada has a very proud history of co-operative enterprises. Unfortunately, the taxation policy does not match that. A 10-15% tax credit on worker co-operative enterprises as well as ESOP companies should be implemented. That way employee owners of these companies can invest in capital equipment or hire more people to produce goods or provide services.
- Cut payroll taxes and government red tape for small businesses. There is an increasing amount of eco-entrepreneurs, socially responsible small business owners who believe in the same ideals as the NDP does (clean environment, strong labour standards, workplace democracy), yet they still face the same challenges of running a business (i.e. payroll costs and continuously filling out non-essential paper work). What better way of connecting a democratic economy, cleaning our environment and putting underemployed/unemployed people to work then supporting small businesses that support the ideals of the New Democratic Party then by doing this.
Small Business is very innovative and creates most of the new jobs in Canada. Small business provides the best of the free market without all the negatives of concentration, price fixing that big business provides. In fact, small business is the closet to pure competition and Adam Smith's vision of economics then anything that the Financial Post can say daily.
Canada has one of the worst environmental rankings among the OECD and unemployment among young people in this country is very unacceptable. With an EI surplus of over $43 billion, payroll taxes can be afforded to be cut for small businesses. Instead of increasing the EI payments on underemployed or unemployed workers, why not cut EI premiums for small businesses, which will in turn will cause small businesses to hire underemployed/unemployed people and create new exciting green businesses that will help clean our environment and increase our OECD environmental ranking.
Also cut the unnecessary paper work that small business has to do to register their companies. This would save the government money in processing fees; therefore it can allow the government to spend more money on social programs.
-Provide tax incentives for creating alternative media companies in Canada. The NDP has always been in favour of media democracy, but the only solution has been to support the CBC. However, while the CBC is great and unbiased the fact of the matter is, it does not solve the issue of media concentration in Canada. I have already mentioned one idea with Anti-Trust; however, another interesting way of breaking up media concentration in Canada is the use of tax credits for people to start alternative media companies (i.e. small newspapers, alternative magazines or television stations). Canada is desperate for more voices in the media and this could be one way of doing it through a tax credit or lower rate of taxation for alternative media companies. What better way then creating media democracy then by doing this.
- Creation of a complimentary public broadcaster. The CBC is great and unbiased, like I have mentioned however, it is in very vulnerable shape right now. One way that the NDP could create better media democracy is the creation of a decentralized public broadcaster to compliment the CBC (i.e. PBS). This would allow members/average citizens to own a public broadcaster. This would be in-line with the values of the NDP of media democracy. Yes PBS has its problems (i.e. sometimes tedious membership pledges), but a decentralized public broadcaster would allow another voice for which Canadians be heard.
There is no doubt that the NDP will win more seats then in the previous election in 2000, anywhere from 15-30 seats, The NDP is hoping for a minority government in this election where they will hold the balance of power with the Liberals. But if the NDP wants to seriously govern, it has to follow a strategy that still plays well to the activist crowd within the Party, yet would reach well to the average Canadian citizen who in general support the ideals of the NDP, yet do not vote for them because of fear of wealth destruction.
By following this agenda, the NDP can create a "New Deal" for Canada, a New Deal for a true economic democracy that follows the time honoured ideals of social democracy, yet in a North American context that will not scare the average citizen off. Consider it Canada's Franklin Delano Roosevelt for the 21st Century.
Adam Johnston is the creator of the Website Economic Democracy for the 21st Century and a part time Business and Administrative Studies student through Red River College: Continuing Education
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