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Canada’s banks are sound. So what! 
Canada’s banks are sound, we are told. So what!  Meanwhile, they have made it clear that they ready to pour billions into these institutions, just in case the need should arise. 
       Those of us who have savings and pensions invested with these corporations can rest assured for the while. The executives of these financial institutions are also happy because their enormous payouts are protected. And those somnolent people on the corporate boards can continue to collect their directors’ fees while they pretend that they are running these companies.
        In the Great Depression of the 1930’s the government also told Canadians that the banks and economy were sound. In fact, not one Canadian bank was forced to close, while U.S. banks were folding in massive numbers. Nevertheless, the Canadian people suffered rates of poverty and unemployment that matched any place in the world. Families lost their homes and farms and small businesses closed. Students dropped out of school and sneaked onto freight cars in search of work in other locales. Public assistance was administered in a mean and humiliating fashion, treating people in need as suspects of wrong. Meanwhile the banks were sound.   
        History may have no parallels but we do see some disturbing signs. For instance: the latest employment statistics show a rise in employed persons, but the increase is almost entirely for part-time workers. 
        Canada has a social safety net that is supposed to help us get through hard times. Or will our federal and provincial governments fall back on the regressive practice of cutting social eligibility and support payments.  Will we see cuts to public programs that will increase jobless numbers? Holes have already appeared in the social safety net and more might be on the way.  
        We want to have the federal government assure us that our society is sound, and that the assurances for the financial institution are not at the expense of jobs, health, and the well-being of all Canadians
                                                                      L.K

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Community organizing, a real job
 Barack Obama, Democratic Party candidate for President stands accused of being a “community organizer” by Republican Party leaders in the United States. What a terrible accusation! They say that he never had a “real job” because he was organizing in South End Chicago for three years before he ran for his first political office.
             According the Republicans, Community organizers, people who bring together diverse elements of the community to establish and achieve social and economic goals outside of the political party system, are not to be taken seriously; or if taken seriously, should be treated with suspicion. The Americans have a rich history of community organization who contributed much to society.
            The outstanding example of a community organizer was Harry Hopkins. Almost 96 years ago he began his career as a worker in the
Christodora House, a social settlement in New York Citiy Lower East Side. Later, he became president of the American Association of Social Workers.  In the depths of the depression President Roosevelt put him charge of the first massive federal relief and works program. He developed creative and approaches to relief and job creation and was in charge of spending hundreds of millions of federal funds (They did not talk about billions in those days.)
            In World War II, he became the president’s personal envoy to Winston Churchill  and Joseph Stalin, taking charge of huge military and economic aid programs to Britain and  the USSR.
           In 1940 he was considered a serious contender for a presidential nomination, which ended when FDR decided to run for a fourth term. He served briefly as aide to President Truman. He died in 1946, in part a victim of his own grinding work schedule. Hopkins was a major community organizer who never held a “real job”. 

           
In Canada we have the example of Tommy Douglas who started out as Baptist Minister. He was guided by the Social Gospel movement and preached that both the body and the soul had to be served and protected.  In Weyburn, Saskatchewan he attracted attention by organizing a community of farmers and miners that was hit by the Depression of the 1930’s. Finally, he entered politics and became Premier of the province. Like Obama he never held a “real job.” 

L.K.

 


The Cuban paradox
If good economic conditions equal good health, why do international comparisons show that the Cuban population is ranked among the healthiest in the world? UBC health economist Robert Evans calls this the “Cuban Paradox”. In an article in Health Policy / Politiques de Cuba has achieved ‘first world’ population health status despite a minimal economic base.”
           
Cubans have a health status slightly below the United States, and higher than several more prosperous European countries. Recently, a report in the Canadian Association Medical Journal showed that in the 1990’s the health of the Cuban population actually improved despite the desperate conditions that followed the end of the Soviet Union support of the Cuban economy.
           
Today, almost all health indicators – including longevity, and infant mortality rates, places Cuban up there highest income countries of the world.
The health of Cuba's population matches or exceeds, on average, that of the United States in many respects.
   
         What is the explanation? Evans points out that there is very little scholarship evaluating the Cuban experience. He cites one important factor: “Cuba's doctor-to-population ratio - 5.91 per thousand - is by a substantial margin the highest in the world.”  However, the doctor to population ration does not explain it all. Evans points out the there a number of other countries wealthier than Cuba have very high physician ratios but do not achieve anything near the same results.
            Evans suggests that the Cuban health care system has unique features. He reports that “
The difference appears to be that in Cuba, primary care physician (and nurse) teams have responsibility for the health of geographically defined populations, not merely of those patients who come in the door. These teams are then linked to community- and higher-level political organizations that both hold them accountable for the health of their populations and provide them with channels through which to influence the relevant non-medical determinants. To take on these roles, the medico familiar integrale (MFI) is trained in both the medical and the non-medical aspects of health.” 
           
This approach is similar to Community-Oriented Primary Care that has been discussed for many years in Canada, U.S. and the United Kingdom but little has come of it. Health care in Canada is locked into a number of professional, economic and political compartments that would have to speak to one another to achieve the same results at much lower costs that we now have.
            “Our societies are achieving average levels of population health that match or exceed Cuba's, albeit at more than 10 times the cost for healthcare.” Evans adds, ”It could be worse.”


Waiting for trouble
A self-employed person is said to have a terrible boss, one who demands more work for less pay and allows no unions. This is important to recognize as self-employment has grown while jobs in manufacturing have declined.                     Canada has more people employed than ever. However, many of the new jobs are low-paying, insecure jobs in the service sector and self-employment is often another name for job insecurity. 
    The increase in self-employment could be taken to mean that Canadians are a nation of hardy entrepreneurs, who are willing to work. However, if past experience is any guide, self-employment usually increases when good jobs with regular hours, better pay and benefits vanish, and there are fewer choices available. When opportunities present themselves, most of the self-employed head back to regular jobs.
           
The romantic notion of self-employment as a way to building a solid economy with go-getting entrepreneurs has little value. Many of the self-employed are doing odd jobs or really working for former employers under less certain conditions. On average, they do not earn as much as people working in manufacturing. Employers find these irregular workers economically useful because no payments have to be made for Employment Insurance, Canada Pension Plan, or other social and health benefits. Labour safety and job standards can be avoided because the employer is no longer deemed responsible.
           
Campaign 2000, which advocates the end of child poverty, has issued a report with the Toronto and York Regional Labour Council that decries the loss of manufacturing jobs in Ontario, and states that a worker who loses a full-time manufacturing job and succeeds in finding new work will experience, on average, a 25% drop in income. The data in the report shows that replacing a lost job in auto manufacturing with one in retail, as auto manufacturing declines and retail expands, would cause income to drop by two-thirds.
           
The report, Work Isn’t Working for Ontario Families: The Role of Good Jobs in Ontario’s Poverty Reduction Strategy, suggests that improving labour market regulations, increasing unionization, maximizing the benefit of public dollars and stimulating manufacturing for the developing global green economy are strategies to re-build secure livelihood for Ontario citizens.
           
Ontario’s expanding service sector has a very low rate of unionization, and includes much temp agency and sub-contracted work that operates outside the reach of existing labour standards legislation.
           
According to the report, workers are toiling more and longer hours, but the increase in non-standard or precarious work – that is part-time and contract jobs with low pay, little or no benefit coverage or security – leaves many Ontario families struggling with poverty.
          
Canada has many jobs that need to done and can be done under better working conditions. Ontario Premier Dalton McGuinty is trying to encourage an Italian auto manufacturer to move some of its operations to Ontario to replace jobs lost in the province’s huge auto industry. To succeed, the provincial government will have to offer considerable inducements at the public’s expense. We wish him success in his efforts but we see it as maintaining Ontario’s huge concentration (perhaps over concentration) in one highly vulnerable industry. It does not face the new requirements of a changing world.
            Ontario certainly needs more manufacturing. One proposal in the Campaign 2000 report is for more “green industries” which can be achieved by beefing up environmental protection laws so as to provide a local market that will serve as the base for a major new area of manufacturing. 
          
However, there are other areas of society that require our attention. We have tremendous social development deficits, both in physical facilities and programs. Our deficits in education, health and social services have built up over many years. They could and should be among our biggest employers, much larger than they are now. They should be seen as major investments in society that can only bring long-term economic benefits. We have been stingy with our efforts in these areas and the need to act now is self-evident.
           
Recently, we viewed a series on American public television about U.S. presidents. In one program, we saw a spiritless President Herbert Hoover in 1932 claiming that the American economic system was sound, taxes were low, and the budget balanced. He blamed the economic problems of the time on the “world depression.” He saw no need for government activity because a bright future was ahead as the economy turned itself around. Within months of this statement, 500 banks closed and the unemployment rate reached 33%. Hoover went down as a failed president.
            Hoover’s statement sounds eerily familiar. echoing those made by Canadian Finance Minister Jim Flaherty and other conservative public finance experts. He boasts that he has cut taxes, balanced the budget and blames Canada’s problems on conditions in the United States. He says the economy is sound and it will turn itself around. No additional government action is needed.
    We disagree; inaction is not and option. History tells that waiting for things to happen is waiting for trouble.        
— L.K.

 

 
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