Centre of the Continent

Thoughts from the middle of North America

Practical Socialism — Part Two

I wanted to continue with my thoughts on what is a new breed of socialism in Canada. The federal NDP will be voting on a resolution to remove the word socialism from the party’s constitution this weekend but in no means does that signal the end of the left. Contrarily, it will help to ensure it’s continued prosperity.

In North America, socialism is a frightening word. It’s mere mention brings up irrational connections with communism, Marxism and the totalistic Red Scare of the cold war. I have to admit that I was inspired by Monte Solberg’s commentary for the Ottawa Sun. (Who’s afraid of the NDP? Me! – June 13, 2011 — {LINK} ) The most enlightening aspect of his piece is that for all of the attempts to horrify the reader, I actually found it supportive of the causes the NDP is fighting for. This is utterly amusing.

The New Democrats want to severely limit the interest on credit card debt. This is to help reverse the trend of working people piling up more debt then they can ever pay off. In an interview on Sun TV, Mr. Solberg went so far as to say that this would prevent people getting credit in the first place. This is part of the point. Talk to any debt councillor and they will tell you that the worst issue they have to contend with is companies offering credit to those who in their current financial state, shouldn’t be approved. This is a good thing. Large interest rates on store credit cards and quick convenience store loans are there to compensate for the percentage of bad debt the lenders know they are in store for. It makes much more sense in the long term to not extend bad credit at all. These extended-period, mega-interest monies are usually for unneeded items that to the debtor offer a little short-term gratification. There are cases were this credit is being used for necessities and that is a even bigger issue altogether.

The same goes for cell phones and the fairness measures that the NDP wants to institute. Tempting customers with the latest smart phone and giving to them free for signing a 3-year contract is virtually usury and extortion. In a sensible world consumers should pay for their hardware upfront and then they can come and go as they please. For basic communication, less expensive phones can always be available. This is yet another debt trap that consumers can do without.

Bill Maher likens conservative philosophy to a religion; no matter how much damning evidence may be put in front of them, a conservative continues to have faith in their standard policies. The belief that cutting the taxes of the rich creates jobs and prosperity is just such case. The eight years G. W. Bush was in power were the least productive in the U.S.’s history. With all of the corporate tax-cutting and Wall Street pandering the economy there only netted three million jobs. At the same time, the US federal government nearly doubled it’s debt. It likely won’t happen but the American Government is but weeks away from defaulting on it’s treasury bonds. How can this policy and it’s forced continuation be seen as successful? Yet, it is the model that our own Conservative government wants to follow. Will higher tax rates lead to some corporations leaving Canada? Yes. If a corporation does not wish to be a part of our social structure then it is a taker and is welcome to leave.

Monte Solberg is taking up the cause of the big banks, big telecom and big oil. These are the most profitable sectors in our economy. Show me a major player in any of these fields that even came close to any kind of economic calamity. Can you say the same of your family and neighbours? These companies don’t need government help to make a profit.

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