Category Archives: Economics

The Assault on Universities: A Review

Is there a worse possible fate for Canadian universities than the imminent future bearing down on universities in the UK? A 100 per cent cut to teaching grants for the humanities and social sciences; tripling of tuition fees to £9,000; up to 40,000 jobs lost and 49 universities (out of 130) at risk of closure.

These developments, set to go into effect in fall 2012, will add to the problems facing universities in light of recent cuts of £1 billion and the ongoing sector marketization and privatization via reforms first introduced by New Labour. These processes include the real or perceived corruption of the academy via the pandering to donors, such as the scandal surrounding the £1.5 million donation from a charitable foundation run by Saif al-Islam Gaddafi, son of the late Libyan leader, to the London School of Economics.

Such changes will compound the decade-plus impact of research and teaching ‘assessments’ on universities that have led to the wholesale closures of departments, including traditional academic subjects such as biology and English, because of ‘mediocre’ or ‘poor’ performances in research or teaching or in attracting students.

The blind faith in market fundamentalism has evolved via the last 15 years of higher education policy into a ‘logic’ that means even a top performance rating will not guarantee your survival.

No story encapsulates this disastrous logic better than the closure of Middlesex University’s philosophy department and its flagship, world renowned Centre for Research into Modern European Philosophy in 2010, despite earning the highest performance research grade (5P). Middlesex will continue to collect £175,000 per year in additional funding for quality over the next four years.2

The arts and humanities dean’s justification for the closure was “… that, it made ‘no measurable contribution’ to the university” (p. 21) or, in other words, it “brought in a lower per capita income … and therefore seemed uneconomical.” (p. 23)

This logic, which can undermine even the most successful and prestigious of programs, is reflected in the “rise of McKinseyism, the doctrine that things that cannot be measured have no value.” (p. 21)


To read more of this review of The Assault on Universities: A Manifesto for Resistance, edited by Michael Bailey and Des Freedman, London: Pluto Press, 2011, please go to The CAUT Bulletin, Vol.59, no.5 (May 2012): [http://www.cautbulletin.ca/en_article.asp?SectionID=1405&SectionName=Bookshelf&VolID=342&VolumeName=No%205&VolumeStartDate=5/11/2012&EditionID=36&EditionName=Vol%2059&EditionStartDate=1/19/2012&ArticleID=3484]

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Filed under Canadian Universities, Cutbacks, Democracy, Economics, Education, Faculty Unions, Higher Education, Private Universities, Public Sector, Tuition, Uncategorized

Harper: Pensioners as ‘Threats’ to Economy? Reveals much about how work is ‘downgraded’

The comments that Prime Minister Stephen Harper made about the “threat” that Canadian elders represent to the economy and future of the country at the World Economic Forum (WEF) in Davos, Switzerland, should not have been unexpected.

Harper has never forsaken nor rejected his neoliberal beliefs and support for the corporate elite (who have been framed by the occupy movement as the “1%” [though they tend to be a much smaller group of closely linked people than this figure suggests], as opposed to the rest of us, the “99%”). For Harper and his ilk, what furthers the bottom line of private, for-profit corporations is of value. The people, though, who make a corporation or government or any other organization work, are not.

Perhaps, Harper has read too much of the “Great CEOs” of history. It’s not just Harper, though. So much in our corporate-owned and controlled media extol the virtues and values of the “great men of business” without a thought about the people who actually do the work. None of them would be worth their bonuses without us, the 99%, doing all the work.

This is the same as the Caterpillar lock-out of nearly 500 workers at the Electro-Motive Diesel Plant in London, Ontario, on 1 January 2012 because the executives wanted to cut their wages and benefits by more than 50%, even in spite of huge profits made by the company. This is how the members of Canadian Auto Workers Local 27 are rewarded for decades of hard work, increased productivity, skills and expertise?!

Just as Caterpillar appears to have little use or regard for the human beings that make the goods, so do Harper and the Conservatives show how little they value what retired workers have done for this country over the previous decades.

Yet, many of these hard-working Canadians have been ripped off by executives and governments. For example, provincial and federal governments allowed or even enabled executives to raid the pension funds of employees in the private sector, and now politicians, like Harper, turn around and complain that the public pension system is not sustainable. Or that public sector workers have pensions that will allow them to retire (modestly) and even that is somehow wrong.

This is part of the de-valuation or degradation of work and its value in society by the very elites that benefit from the work of the 99%.

It also explains Harper’s degradation of the work of our elders, people who have worked and followed the rules all their lives. They’ve struggled to build this country and worked hard.

I think it is worth (re)reading Bertolt Brecht’s poem from to get the perspective from the 99%:

“A Worker Reads History”

Who built the seven gates of Thebes?
The books are filled with names of kings.
Was it the kings who hauled the craggy blocks of stone?
And Babylon, so many times destroyed.
Who built the city up each time? In which of Lima’s houses,
That city glittering with gold, lived those who built it?
In the evening when the Chinese wall was finished
Where did the masons go? Imperial Rome
Is full of arcs of triumph. Who reared them up? Over whom
Did the Caesars triumph? Byzantium lives in song.
Were all her dwellings palaces? And even in Atlantis of the legend
The night the seas rushed in,
The drowning men still bellowed for their slaves.

Young Alexander conquered India.
He alone?
Caesar beat the Gauls.
Was there not even a cook in his army?
Phillip of Spain wept as his fleet
was sunk and destroyed. Were there no other tears?
Frederick the Great triumphed in the Seven Years War.
Who triumphed with him?

Each page a victory
At whose expense the victory ball?
Every ten years a great man,
Who paid the piper?

So many particulars.
So many questions.

(See this link to follow up some informative comments and thoughts on Brecht’s poem: http://wonderingminstrels.blogspot.com/2003/12/worker-reads-history-bertolt-brecht.html)

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Filed under Cutbacks, Democracy, Economics, History, News, Pensions, Politics, Poverty, Uncategorized, Wages, Welfare, Work and working conditions

Should you (the 99%) pay for parties for the 1%?

Since 31 July 2011, the largest province of Canada, Ontario, has cut the ‘Special Diet Allowance’ of $250 for people on welfare. Welfare rates have been cut by 55% since the Progressive Conservative Party got into power in 1995.

As a result, people who have exhausted their unemployment benefits (E.I.) and their savings and are forced onto the dole, have very little to live on – even if they didn’t have to pay rent, it would hardly cover the rising cost of food, electricity, gas and so on. They represent the poorest of the 99%.

So, while the Liberals under Dalton McGuinty try to penalise the poor and the unfortunate, whom Tim Hudak’s Tories are probably itching to put the boot in as well, rich corporate executives and their wholly-owned political allies reap the benefit of taxpayer-funded parties (ie ‘entertainment allowances’). That is, the 1% get to party and we get the bill!

And poor people, who are trying to exist on incomes that are below subsistence in a first-world city (and provincial capital), Toronto, and have those meagre incomes cut even more, there is nothing forthcoming.

My modest proposal is that these ‘entertainment’ expenses that big business executives claim (at taxpayers’ expense) should be cut by 50% (as a starting point) and turned over to those most in need: the poor, the homeless, the unemployed (whose jobs have been shipped overseas), as well as putting it towards cutting student debt and funding daycare and long-term daycare. (I would also propose that this would not include small businesses and the self-employed under a certain level of turnover.)

Since the provincial election on 6 October 2011, where the Liberals were returned with a minority (53 seats), can we expect any change for those most in need? Although the Tories hold 37 seats, the New Democratic Party (NDP) holds 17. The anti-democratic rhetoric of both federal and provincial Tories has made McGuinty ‘nervous’ about anything that can be called a ‘coalition’ and so bends the way of Hudak and Harper.

This is unfortunate as the bankrupt model of neoliberalism continues to act as a ‘Robin Hood’ in reverse – putting money into the hands of those who need it least: the 1%. That is why today 15 October 2011 some of the 99% have awaken and taken to the streets of more than 950 cities around the world in over 80 countries.

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Filed under Corporate Welfare, Corruption, Cutbacks, Democracy, Economics, Elections, Politics, Poverty, Uncategorized, Wages, Welfare, Youth

US Healthcare: ‘A Lottery in Reverse’?

Is this the ‘Swiss cheese’ model of insurance coverage? Full of (loop)holes?

“Medical problems caused 62% of all personal bankruptcies filed in the U.S. in 2007, according to a study by Harvard researchers. And in a finding that surprised even the researchers, 78% of those filers had medical insurance at the start of their illness, including 60.3% who had private coverage, not Medicare or Medicaid.”

‘Study Links Medical Costs and Personal Bankruptcy’ by Catherine Arnst, Bloomberg Businessweek (http://www.businessweek.com/bwdaily/dnflash/content/jun2009/db2009064_666715.htm).

I’ve never understood the US, especially in the way they discuss healthcare. It is as if you are unlucky enough to contract a disease or illness, or get hit or suffer an accident, than you have no expectation that you will be able to get well and NOT be poor?! (Unless, of course, you have lots of money. But, then you don’t need a lottery ticket, eh?!)

So even if you have health insurance, you may still go bankrupt?!

Or, essentially, if you are ‘unlucky’ enough to survive, you than are more likely to go bankrupt? It’s not the ‘Grim Reaper’ you have to fear, but the ‘Grim Repo’.

So, it is really a ‘lottery in reverse’ (lotteries are about the possibility of winning money or a luxury home or care or vacation, not losing everything, as if you were gambling?!).

But, US healthcare coverage seems to be a wee bit more like buying a ticket for the lottery and than finding out that someone else gets to collect the ‘winnings’ from your ticket – if you survive your illness or accident!).

The land of opportunity? For whom? HMOs? Doctors? Insurance companies? Free-market fundamentalist think tanks?

This is why I think of the US healthcare system as a ‘lottery in reverse’ because it is much more expensive (as a cost of GDP) than the single-payer system in Canada or the National Health Service (NHS) in the UK, or indeed any of the systems available to millions of people in first-world countries. And your likelihood to survive an illness or disease or accident is no better (from what I know anecdotally: I’m sure we’ve all heard of all the lawsuits for malpractice that go on as well, eh?!).

Of course, there are many billionaires and others who have made fortunes off of the healthcare system, right?!

They and/or their organisations purchase politicians via lobbying to ensure the continuation of a system that works as a “lottery in reverse”, right?!

Isn’t even President Obama sponsored by private healthcare organisations?!

And, they should have a right to make money off of people’s misfortunes, right?! Or at least protect ‘their’ way of (luxury) living?!

Isn’t that the ‘American Way’?

(Personally, I don’t believe that because I have travelled extensively in the US and met loads of wonderful people, many of whom are not happy with the system as it is.)

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Filed under Economics, Healthcare, Humour, Politics, Uncategorized