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Sunday, September 10, 2017

Thoughts on the state of things in September 2017




               The world is being disrupted by the Internet and social media that has existed for only slightly more than twenty years. Uber, Air B and B, Facebook, Twitter, Netflix and many other apps are changing old ways of doing business. The summer of 2017 has produced the worst box-office returns for movies in twenty years. Amazon and on-line retailers are taking market share from retailers even forcing Walmart to compete on-line with better customer service. 

               Disruption is occurring everywhere. Will NAFTA survive and if it does will it benefit the working people in North America? President Trump argues it is the worst agreement that America has ever signed. Maybe so, there is plenty of evidence that people who once had good jobs in factories both in America and Canada have been displaced by low wage workers in Mexico and other countries to the benefit of the small increasingly rich segment of the economy. The financial sector has automated the stock market to react reflexively to incremental information cycles without regard to the long-term effect on the population. Making and losing money in the market is not new but it is now using improved tools to bring more wealth to the already wealthy.

               What happens in America overflows into Canada and western countries to a greater or lesser degree. President Trump was elected by voters who suffered change brought about by NAFTA, other international trade agreements and the significant drain of wealth from the population to the small number of uber wealthy. While Trump may be a hollow shell who is really part of the problem his election could be an early indicator of a popular revolt against the ‘system’. A revolution grows as people react fearfully to events they cannot control when the elite ignore them.

               Could the French Revolution of 1789 to 1799 preview the next months and years in the United States?  Americans rejected the establishment candidate in favour of what appeared to be a rebel. His base remains solid despite how erratically the Trump administration has performed during its first nine months. If the ‘people’ are not satisfied with progress it can seek more aggressive ways to shake up an ineffective government. A leader might arise from the proletariat to lead a revolution that will be challenge ‘big money’ and their privilege. Martin Luther King rose as a leader in the 1960’s to improve the lot of black Americans. He was cut down before the rebellion got out of control but another person with a different pedigree could galvanize the people as Bernie Saunders almost did in the recent election. Time will tell but there are societal ‘wrongs’ to be corrected and the politicians owned by the wealthy class are not capable or willing of addressing.

               My country and province is the same but the establishment remains unchallenged. The last general election produced a government that promised great things for the people and once elected reneged on them. There is a smaller wealthy class in Canada but it is no less in control of how things are done. For example, the federal government plans to throw a bone to the people by allowing the sale of marijuana for recreational use. Ontario, a traditional nannie state, has determined that ‘weed’ will only be available in government owned and run locations the way it controls the sale of alcohol. The model is the evolution alcohol control since prohibition ended in 1927 when purchasers required a booklet to record their purchase delivered from a hidden warehouse in brown paper bags. Now they provide relatively modern retail stores where a limited selection ensures product from many sources remains unavailable. It is operated by very well-paid management who are unstressed by the competitive pressure of free enterprise. The same structure will sell ‘weed’ to citizens ensuring minimal marketing, limited supply, little if any choice and good well-paid secure jobs for a few politically acceptable managers.  Of course, front line employees will be precarious part timers with no product knowledge thus ensuring low costs and high profit for the government to otherwise waste.

               The nanny province of Ontario continues to show no effective change, government is unchallenged and incompetent as witnessed by the electrical supply system, is supportive of wealthy families preferably ‘old money’, friends and political flunkies. I don’t foresee disruption and a popular rebellion here, it’s not the Canadian way.