What is the common link between the Industrial Revolution, Margaret Thatcher, and the foreign worker scandal? At first, the answer is not obvious because of the gaps in history, but there is a link – capitalism. It is one of those common words we misuse; it conjures up ideological concepts and emotional support, but its true meaning can be more ominous.
The liberal economy is based upon ideals of economic efficiency, borne from the time of the Industrial Revolution. Put quite simply, the objective of all business is to maximize profits through efficiency and competition: if they cannot become efficient in doing so, they must fail and perish.
This theory is great if there was truly a level playing field from which all started, and that the human consequences of these ideals were not so dire. Capitalism, in its drive for profit-maximization, did so through the exploitation of resources, including people, but it created its own inefficiencies in the process.
After the market crash of 1929, it was realized that “the market” forces were not so efficient in governing an economy, as human greed and capitalism bastardized this economic ideal, and Keynesian economics was born in 1936 as a means to try to maintain stable, efficient economies. But by the mid-1970's many governments were struggling under debt because of the burgeoning costs of trying to maintain employment within inefficient industries. When Thatcher came to power in 1979, she reversed that trend, bringing forth the dynamic shift in the economic mindset known as neo-liberalism.
The world saw a return to market capitalism leading the way in governing economies, with some dire consequences at times. Government no longer “interfered” with the economy, which was supposed to mean that they would not inject money into protecting inefficient businesses. However, governments also failed to regulate these same economies, with the major consequences of the recessions of 1982, 1993, and 2008. As we are all aware, when these economies failed, it was the people who had to bear the costs. We have faced downsizing, outsourcing and unemployment, and the more modern consequence is through foreign workers; all so that a few capitalists may maximize their profits.
Making money is not a bad thing, because when we are all able to earn a fair wage, we can consume goods and services, which can lead to a healthy economy. But what we are seeing today is not a healthy economic situation. The costs of living have been going up exponentially since 1980, yet the actual incomes of Canadians have remained stagnant, while our standards of living diminish. With barely a middle class left, most of us live in debt and the fear of losing everything we have worked for.
The neo-liberal economic model is just as corrupted as its liberal predecessor, but we, as a society, are also averse to government debt and question its efficiency. We need a new economic model, an economic messiah to lead us from this path of ruin, but we will not find one amongst our current leadership. They, including Stephen Harper, were schooled in the neo-liberal economic ideals, with little vision for something new. So, our only choice as individuals is to adapt, retrain, and invest in ourselves, as government and businesses will not invest in us, and as we continue to exist, despite our economy, we hope we can eke out a future. If we follow this transcendentalist economic path, however, why would we need government; a poignant question to ask now that it is tax season.
John Kennair is an international consultant and doctor of laws who lives in St. Albert.
