As part of the Manitoba Modern Economics, Technology and the Environment project, I have come out with a 2010 budget wish list for the provincial budget. The budget, which comes out March 23, 2010, faces one of the greatest challenges in a while. For the first time in recent memory, Manitoba forecasts a deficit, in the range of $555 million. One can account that their were many problems that happened in 2009, namely the H1N1 flu, 2009 spring flood, and the global economic crisis. All of these dried out the coffers of the government as the cost of the H1N1 and spring flood cost Manitoba $146 million. Add to that Manitoba Hydro’s revenue declined by $136 million, and Manitoba is in the red.
Despite the deficit, Manitoba has many challenges ahead. This includes, poverty reduction, building an environmentally sustainable province, and a very high-tech economy with new exciting high-tech industries that can compete with the rest of the world.
In Manitoba Budget 2010: Recommendations to the Province of Manitoba, I as the creator of Manitoba Modern Economics, Technology have laid out what the province can do in tough times like these to bring in the deficit, while decreasing poverty, greening our environment and building a high-tech province.
This includes:
- Increasing the higher income tax bracket in 2011 for a temporary measure, along with creating a sur tax for the highest income earners until 2013.
- Decreases the lower-income tax bracket.
- Claw back MLA salaries and pensions by 5%
- Freeze public service sector employees salaries for two years.
- Creation of the Social Entrepreneurship tax credit to encourage social entrepreneurship.
- New credit for worker owned and micro businesses.
- Environmental community entrepreneurship tax credit of 5% for local green enterprises.
- Start a round table discussion for a carbon tax within the Province for 2012.
- Increase green technology research & development by 5% and 10% if a carbon tax system is in place by 2012.
- Creating a green jobs training program.
- Allowing consumer co-operatives and small-scale private businesses to offer alternative energy.
- Expand the Interactive media tax credit’s maximum 40% limit from $500,000 to $1,000,000.
Even if the province implemented some of these ideas, the province would be well on its way to reducing the deficit, while efficiently using their resources to work on the things society cares about, which are eliminating poverty, a clean environment and new job creation.
For more information contact Adam Johnston at: moderneconomicstechenviro@gmail.com
The recent blog by David Drummond, chief legal officer at Google, proves that the company’s leadership learned little from their move to China in 2006.
China is a complicated market, more so with the media industry. The Communist Central Party (CCP) retains far more control over media, the press, and the internet than any other economy at a similarly-developed level. Internet companies must carefully consider how to enter China so they do not get forced into releasing personal account information.
Google took a long, hard look at the plight of Yahoo! in China. When it entered the country, Google kept its gmail and gchat services off of servers located in China. Because personal account information was stored on servers outside of China, Google was safe from being forced to turn over sensitive information.
Google made two broad errors since entering China: failing to assess its target consumer and reacting with ultimatums to the recent hacker attack.
When it entered China in 2006, Google tried to fight the CCP at every step, announcing that it was fighting for the rights of the common Chinese consumer. When taken from a western perspective these actions are honorable. But the Chinese are just as nationalistic and proud of their country as the US. They are not inclined to demand their rights from the government entity that brought them out of the Cultural Revolution and provided them with over 9.3% GDP growth for 15 years.
China comes from a cultural base that is collective, Confucian, and non-rebellious. Its perspective on freedom of speech and freedom of property varies from ours in that it assigns to these issues a lower level of importance. Google went into China espousing American values that did not translate well. As Kai-Fu Lee, former head of Google China, was quoted as saying, “The Chinese internet is different from the US and European internet. If you don’t listen humbly to your customers and pay close attention to the subtle differences you will fail…That is why, generally, US internet companies have, with the exception of Google, failed in China” (Neate, 2010). While Kai-Fu Lee seems to feel Google has listened to the consumer’s needs, I feel that Kai-Fu Lee’s departure from Google shows in part that it did not.
Additionally, Google’s ultimatum blog posting represents a major failure to grasp opportunity. Had it understood Chinese history, it would know to play the victim in this case. Take the Chinese classic “The Three Kingdoms” for example. Every Chinese businessperson reads this novel as a strategic guide to business. In it, a master strategist named Zhuge Liang finds his army stuck on a river bank awaiting an attack the next morning. They know they don’t have enough arrows to repel the enemy that will cross the river in the morning. So Zhuge Liang has his army build and dress straw mannequins and place them in boats. They then float the boats across the river with ropes and swimming soldiers. The enemy, fearing a pre-emptive attack, fires arrows that stick in the mannequins. The boats are pulled back and the next day Zhuge’s army uses the enemy’s own arrows to repel their attack, decimating the enemy in the process.
Stories like these are what Google should have read to gain an understanding of Chinese culture and history. Had it approached this situation with a more humble form of outrage, Google would have gained negotiating leverage and respect in a country where the government is not known to give it. It could have used the arrows from the ineffective attack as ammunition to fire back at the CCP.
Cited Works:
Neate, Rupert. “The former Google boss creating China’s answer to Silicon Valley”. The Daily Telegraph. London (UK). Mar. 12, 2010. Pg. 4.
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OK, I have to admit, I am one of those who read “The Road to Serfdom” and totally loved it. Hayek was spot on about the folly of planned economies. The markets are not perfect. But having imperfect markets beats planned economies on any day. We just have to provide a reasonable amount of regulation and provide social safety nets that take care of those who end up taking one for the team because of the dynamics of the free market.
And that is why I thought this post by Easterly was kind of neat.
PS: forgive the terse posts lately. Blame it on this being the last week of winter quarter.
by AL Whitney (C) copyright 2010 All Rights Reserved
And the Bankers Manifesto of 1892
It is amazing to watch how much of the population in the United States has developed such intense team loyalty. To listen to Ohio State University and Michigan State fans before or during their annual game, you would think the guys on the field were locked in a mortal winner-takes-all battle. And fans have been known to cry or get depressed if their ‘team’ looses.
The team loyalty ‘religion’ is also an integral part of the divide and conquer strategy being used on the population of the U.S. by the global gangster/bankers. Some people actually admit they are Democrats or Republicans for no other reason than that’s what their parents were. Currently Team Republican seems to prefer O’Reilly and FOX news and Team Democrat are fans of Olberman and MSNBC. This is NOT an accident that the media (controlled by a few huge corporations) constantly beats the Democrat versus the Republican (or vice versa) drums. It is orchestrated to keep us divided and prevent us from noticing what is going on behind the curtain. If we woke up and realized that Washington DC is now a replication of the movie The Godfather and Ben Bernake’s testimony to Congress was exactly like Michael Corleons, we’d recognize why our economy is in on the brink of collapse and who is REALLY responsible.
In the early 1900’s US Congressman Charles A. Lindbergh, Sr. from Minnesota revealed The Bankers Manifesto of 1892 before the US Congress sometime during his term of office between the years of 1907 and 1917 – to warn the citizens.
Perhaps the gangster/banksters got the idea of promoting a rivalry (as a smokescreen) from the Hatfields and McCoys which took place from 1878-1891? The Hatfield-McCoy feud (1878 – 1891) is an account of American folklore that has become a metaphor for bitterly feuding rival parties in general.
The Bankers Manifesto of 1892
“We (the bankers) must proceed with caution and guard every move made, for the lower order of people are already showing signs of restless commotion. Prudence will therefore show a policy of apparently yielding to the popular will until our plans are so far consummated that we can declare our designs without fear of any organized resistance. The Farmers Alliance and Knights of Labor organizations in the United States should be carefully watched by our trusted men, and we must take immediate steps to control these organizations in our interest or disrupt them.
At the coming Omaha Convention to be held July 4th (1892), our men must attend and direct its movement, or else there will be set on foot such antagonism to our designs as may require force to overcome. This at the present time would be premature. We are not yet ready for such a crisis. Capital must protect itself in every possible manner through combination ( conspiracy) and legislation.
The courts must be called to our aid, debts must be collected, bonds and mortgages foreclosed as rapidly as possible.
When through the process of the law, the common people have lost their homes, they will be more tractable and easily governed through the influence of the strong arm of the government applied to a central power of imperial wealth under the control of the leading financiers. People without homes will not quarrel with their leaders.
History repeats itself in regular cycles. This truth is well known among our principal men who are engaged in forming an imperialism of the world. While they are doing this, the people must be kept in a state of political antagonism.
The question of tariff reform must be urged through the organization known as the Democratic Party, and the question of protection with the reciprocity must be forced to view through the Republican Party.
By thus dividing voters, we can get them to expand their energies in fighting over questions of no importance to us, except as teachers to the common herd. Thus, by discreet action, we can secure all that has been so generously planned and successfully accomplished.
“THE BANKERS’ MANIFESTO OF 1934
Capital must protect itself in every way, through combination and through legislation. Debts must be collected and loans and mortgages foreclosed as soon as possible. When through a process of law, the common people have lost their homes, they will be more tractable and more easily governed by the strong arm of the law applied by the central power of wealth, under control of leading financiers. People without homes will not quarrel with their leaders. This is well known among our principle men now engaged in forming an IMPERIALISM of capital to govern the world.
By dividing the people we can get them to expend their energies in fighting over questions of no importance to us except as teachers of the common herd. Thus by discreet action we can secure for ourselves what has been generally planned and successfully accomplished.
So what is it that both Team Republican and Team Democrat have in common that the gangster/banksters don’t want us to come together on? Here are just a few very likely possibilities:
job losses
pension losses
pollution of our air (chemtrails) and water
privatization of our public services and resources
crumbling infrastructure that there doesn’t seem to be enough money to fix
a devastating deficit that grows larger each year as the politicians refuse to stop waging endless wars
poor quality education for all of our children
unreliable voting system that can be manipulated electronically
a regimented computerized health care system that is now being forced upon us
unsafe drugs and vaccines are being overprescribed to us due to the conflict of interest and corruption at the CDC, the FDA, and the WHO
corporatized medicine (Medicine, INC.) that is now a ‘for profit industry’ placing safety and patient care far behind corporate earnings
imported unsafe food (80% of all seafood is now imported and very likely not safe to eat)
Finally, every time I ask ANYONE if they feel like we are drowning in corruption they respond with an emphatic YES!
We need a real awakening and we need to recognize who our common enemy is:
The entire centralized global banking cartel (the gangster/banksters aka The MoneyMasters) and their ‘pals’ such as: the Bank Of International Settlements (BIS), International Monetary Fund (IMF), Club Of Rome, The Committee Of 300, the Central ‘Intelligence’ Agency (CIA), the Council On Foreign Relations, The Tri-Lateral Commission, The Bilderberg Groups, the ‘Federal’ Reserve System, the Internal Revenue Service(s), Goldman Sachs, Israel and the Israeli lobby, the Vatican, the City of London, Brussels, the United Nations, the Israeli Mossad, and the primary chosen mouthpiece of the beast, the Associated Press (AP).” For more info about their ‘agenda’, read The ‘City’ World Conquest
Ellen Brown of Web of Debt is promoting an end to the Central Bankers control of our economy and a restoration of sound monetary policy: Campaigning for State Owned Banks
Footnote:
My very first awakening into ”reality’ regarding globalization was watching TheMoneyMasters. It took me several days to digest a) the magnitude of lies and deception that was ongoing and b) the serious implications the corrupt central banking system represents to our country and our families. But, I recovered.
Last night I saw the excellent Butch Cassidy and the Sundance Kid for the first time. There’s a lot of economics in that movie.
For instance, when Butch Cassidy finds out the expensive lengths the train company is going to in order to stop he and Sundance from robbing them, he identifies and laments a pareto improving road not taking.:
“A set-up like that costs more than we ever took…If he’d just pay me what he’s spending to make me stop robbing him, I’d stop robbing him.”
This is a lesson in the limitations of the Coase theorem, especially when one party has shows a willingness to break the law. Reputation and trust matter for effective contracts.
Later Butch wants, and in fact tries, to make a bargain with the government, offering to fight in the Spanish-American war and stop his criminal ways if all their past crimes will be forgiven. Again, the reputation and the commitment problem prevent a pareto improving outcome.
It is amazing to watch how much of the population in the United States has developed such intense team loyalty. To listen to Ohio State University and Michigan State fans before or during their annual game, you would think the guys on the field were locked in a mortal winner-takes-all battle. And fans have been known to cry or get depressed if their ‘team’ looses.