The Canadian Press: Income gap widens between Canada's rich and poor, OECD study says

Byoliveridley

The gap between the rich and poor in Canada widened significantly in a recent 10-year period partly because Ottawa spent less on cash benefits than many other developed countries, the OECD says.

It was a reversal of the trend in the two previous decades when the gap was narrowing, the Organization for Economic Co-Operation and Development said in a report.
via The Canadian Press: Income gap widens between Canada’s rich and poor, OECD study says

Just like our southern neighbour, of course. This is no liberal-conservative divide issue, but a consequence of the neoliberal deregulation and tax-cutting policies so popular since the mid ’90s. Inequality deepens divisions within a country and creates a ruling class that is increasingly vested in keeping the inequality going as it benefits them.

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  • Take that, economists!

    Byoliveridley

    Brownlee’s mistake was to put into practice something that worked only in theory.

    Meet the economists who know why we buy what we buy | Money | The Guardian

    Buried in an excellent article introducing the field of behavioural economics to a wider audience is that one line takedown of economics theory! I happen to believe that economists just aren’t scientific enough to understand how modeling works. A well behaved, rational human being who makes every decision independently of other decisions based solely on maximizing her economic utility is like (warning, quantum theory reference) a physicist reading about the particle in a box model and deciding to predict the behavior of all subatomic particles. Yes, it is a neat theory with some neat math, but it’s only the first step!

    Scientists try to be a little more humble with their modeling. They seem to know that the chaos and probability driven events in even the simplest of real world settings make models/simulation mostly exercises in trend seeking, not deterministic end points.

    To predict the economic behavior of people, you have to include the variables that make them people! Not assume that all people will follow all your assumptions of their behavior strictly, and to not call them names when they don’t act to maximize their short term utility!

    Anyway, apropos nothing, I like to rant about economists! The article also notes that Barack Obama is a follower of behavioral economics, good for him. I wonder if McCain even knows what that phrase means.

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    Church State Separation in India

    Byoliveridley

    Meant to blog about this on Wednesday, but it’s been that kind of week!

    Debate in India: Is Rule on Yoga Constitutional? – New York Times

    At issue is a measure by the Hindu nationalist-led government of the state of Madhya Pradesh, in central India, that required public school students to practice the sun salutation and recite certain chants in Sanskrit during a statewide function on Thursday. The state government, controlled by the Bharatiya Janata Party, or B.J.P., said that it complied with a central government policy to encourage yoga in schools and that it was inspired by a recent visit from a popular Hindu spiritual leader. Muslim and Christian groups in the state took issue not so much with the yoga exercise, but with the chants, which they said were essentially Hindu and in worship of the sun. They argued in court on Wednesday that it violated the Indian constitutional provision to separate religion and state.

    The courts did the right thing. Yoga in India is definitely associated with being Hindu, and Sanskrit as well. There has been a growing tendency among right wing Hindu organizations to conflate Hindu and Indian (they do mean the same thing, after all). I would recommend any number of essays from Amartya Sen, especially those from the Argumentative Indian for a definitive takedown of this pernicious movement. The one-line answer is that India over the last 2000+ years has been influenced by so many religions and regions (Christianity, Islam, Buddhism, China, Arabia, Persia, Europe) that it is a foolish to ascribe any one identity to this country.

    Whether yoga is religious practice is, like everything in this country, a matter of debate. Some people note that its recitations sometimes invoke Hindu gods, but others argue that its physical exercises have nothing to do with Hindu ritual. It is hardly uncommon for non-Hindus to practice yoga

    And a lot of Hindus celebrate Christmas by going to the temple, funny how that works, and funny how nobody’s making them do it. The issue here was always imposition by the state and choice.

    Yoga is wonderful and very good for you, and with a little care, can easily be delinked from its religious affiliations. Maybe this program can be done right, if the government is actually interested in getting it right.

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    The U.S Emperor's new edict on regulation

    Byoliveridley

    Wow, plutocracy-protectionary principle alert.

    Chemical & Engineering News: Latest News – Changing The Rules On Regulations

    A new directive from President George W. Bush to federal agencies adds layers of bureaucracy to the process of issuing regulations and gives the White House greater control over agencies’ rules. Critics say the directive, issued Jan. 18, will slow down regulation. They say it also shifts regulatory priorities, which were set by Congress in federal laws, away from protection of health and environment to economic rationales. Some industry groups, including the U.S. Chamber of Commerce, praise the directive. “It’s the first truly significant attempt by an Administration to hold federal bureaucrats to account and insist they act with discretion when imposing new and expensive burdens on businesses and consumers,” says William Kovacs, the chamber’s vice president of environment, energy, and regulatory affairs. Under the new directive, agencies can regulate only when they can demonstrate to the White House Office of Management & Budget (OMB) that the free market is not producing the desired results of the rule, such as health protection. To show that a new rule is warranted, agencies must identify what economists call “market failures”—such as when an industrial sector with unfettered pollution sells its products more cheaply than it would have had it included the cost of pollution control into the price of its goods.

    Sounds reasonable, does it not! All the good buzzwords thrown in there, “Cost-Benefit Analysis”, “Market Failure”, etc. But note that the burden of proof is on the regulating body to come up with a clearcut “proof” before passing regulation.

    In addition, the directive requires each agency to have a presidentially appointed “regulatory policy officer.” The agency cannot begin work on a new rule—even one required by Congress through a law—until it gets a green light from its regulatory policy officer or unless the head of the agency gives approval.

    The Emperor gets to appoint a viceroy to police the agency to ensure that no such regulation will get passed.

    Note the modus operandi:

    1. Appoint lackey to head agency
    2. Appoint viceroy to oversee regulation
    3. Rewrite rules to increase power of executive over legislative
    4. Shift burden of proof away from the regulated to the regulators
    5. Slash budgets so regulating agencies cannot do the work adequately
    6. Hound competent employees out of the agency
    7. Routinely bash said agency as an example of “big government”. Repeat steps 4-7 as often as necessary to ensure “success”

    Banana republic, indeed.

  • |

    Pakistan and the Taliban

    Byoliveridley


    At Border, Signs of Pakistani Role in Taliban Surge – New York Times

    The most explosive question about the Taliban resurgence here along the border between Afghanistan and Pakistan is this: Have Pakistani intelligence agencies been promoting the Islamic insurgency?

    The government of Pakistan vehemently rejects the allegation and insists that it is fully committed to help American and NATO forces prevail against the Taliban militants who were driven from power in Afghanistan in 2001.

    Western diplomats in both countries and Pakistani opposition figures say that Pakistani intelligence agencies — in particular the powerful Inter-Services Intelligence and Military Intelligence — have been supporting a Taliban restoration, motivated not only by Islamic fervor but also by a longstanding view that the jihadist movement allows them to assert greater influence on Pakistan’s vulnerable western flank.

    Read the whole article, it is instructive. Most South Asians (including Pakistanis) would say “D’uh”! We’ve known this for years! It’s considered a well known fact that the Pakistan’s Intelligence Agency ISI helped create the Taliban with US assistance and coordinated the Mujahideen resistance in Afghanistan. Read this article from 2001 for a good summary.

    My point is not to discuss the rightness or wrongness of these actions. Most competent countries will do whatever is in their best interests. Everyone’s known this piece of information about the ISI for years, and the U.S government knows this as well. It is in every country’s best interest to be as hypocritical/devious as possible in the pursuit of foreign policy. 

    But  it is incumbent on any newspaper covering the government to not participate in this hypocrisy. The NY times writes three pages on the Taliban without providing any background on U.S involvement. It is an article of faith among South Asians like me that American mass media is an organ of U.S diplomacy and/or propaganda. Articles like these only confirm this hypothesis.

  • |

    Bush appoints fox to guard henhouse

    Byoliveridley

    Apparently, the fact that the senate would not confirm this person does not matter much. Democracy is a quaint concept in this august country!

    Bush Recess Appointment Threatens Public Protections – Press Room – OMB Watch

    2007—President George W. Bush today installed Susan Dudley as White House regulatory czar through a recess appointment. Dudley will now serve in the White House Office of Management and Budget as administrator of the Office of Information and Regulatory Affairs (OIRA).

    OIRA is a powerful office responsible for reviewing and approving federal agencies’ most significant regulations. Installing Dudley threatens decades of public health and safety protections; doing so by recess appointment endangers our democratic process.

    “Dudley’s record is one of anti-regulatory extremism,” said Rick Melberth, Director of Regulatory Policy at OMB Watch. “She has opposed some of our nation’s most basic environmental, workplace safety and public health protections.”

    Dudley has falsely proclaimed ground-level ozone to be beneficial, opposed ergonomic standards to protect workers from repetitive stress disorders, and even suggested that airbags should never have been mandated in automobiles.

    The kinds of rollbacks Dudley may push forward could render useless valuable federal laws that have saved countless American lives. OMB Watch and Public Citizen documented Dudley’s anti-regulatory views in a September 2006 report, The Cost Is Too High: How Susan Dudley Threatens Public Protections.

    Dudley’s strong ties with the industries she will be regulating pose an obvious conflict of interest. For the three years before her nomination, Dudley directed the Regulatory Studies program at the Mercatus Center — an industry-funded, anti-regulatory think tank. It is likely that industry executives will have unprecedented access to Dudley, while concerned citizens will be increasingly shut out.

  • Tory majority in Canada?

    Byoliveridley

    According to the poll, conducted by the Strategic Counsel, 37 per cent of Canadians would opt to vote for the Tories were an election to be held today, compared with 29 per cent for the Liberals, 17 per cent for the NDP and 9 per cent for the Green Party.

    globeandmail.com: Tory majority? Pollster takes your questions.

    The interesting fact is that Centre-Left parties (Libs NDP + Green) are much more popular than the Tories, so while the country prefers left of centre politics, there is a lot of vote splitting going on. Need to learn a bit more about that, eh! If this were India, the NDP and Liberals would be running a united ticket.