Economy

Wednesday May 6, 2020

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday May 6, 2020

Science vs Politics; Lives vs Livelihoods

This accursed pandemic has brought us a range of new expressions. Flattening the curve. Social distancing — or physical distancing if you prefer. Self isolation. Stay home, stay safe. 

And then there’s this one. Lives over livelihoods. 

Living in a Pandemic

Where, exactly, this originated in the COVID-19 context, we do not know. But it’s one of the better descriptors and we can expect to hear a lot more of it now that most jurisdictions are beginning to talk and act on reopening society and the economy. It works either way, too. Livelihoods over lives.

That’s the philosophy driving decision-making in jurisdictions where reopening the economy and relaxing pandemic societal rules are judged more important than minimizing the human toll of the virus. This would include the many states in the U.S. where governments are rushing to normalize life and working. In many of these states, they haven’t yet begun the flatten the curve. They still report many new cases and new deaths every day. 

And yet the governors in those states, with full and urgent support from the Trump administration, are moving faster and faster to throw their economies wide open. Hair salons, tattoo parlours, beaches, restaurants — you name it.

Health and medical voices in America are warning of dire consequences. The most respected disease projections in that country now predict that previous death estimates will double, largely become of reduced distancing, more openness and increased mobility. By the end of May, the models say, daily reported cases will double. Up until recently, these models were regularly cited by the Trump White House as being gold standard. Now they are inaccurate, the president has decided. 

Former New Jersey governor Chris Christie is a loathesome character by any reasonable definition. But at least he is honest about America’s frenzied reopening. He says yes, more people will die, but that’s the price of renewed economic prosperity, and Americans just need to get used to it. Livelihoods over lives rules the day in Donald Trump’s America.

Thankfully, not so here in Canada and Ontario. Our political leaders still adhere to the lives over livelihoods mantra. But it’s getting increasingly difficult, as you can see by the growing agitation among people of a certain political stripe to get back to business. Not every Canadian who needs the emergency benefit (CERB) has received it yet, but already Andrew Scheer wants to talk about cutting it back so as not to be a “disincentive” to get people back to work. 

You can certainly see the stress on Ontario Premier Doug Ford. This week, he is once again holding out optimism for some normalcy over the Victoria Day weekend. Just a week or so ago he did the same thing and then had to walk back his optimism because it wasn’t supported by health data.

Anyone with empathy has to feel for Ford. He’s a business-first politician in an environment that won’t allow him to be business-first. He desperately wants to hold out a light at the end of the tunnel, but he has to be careful. If he overpromises again, his credibility takes a hit. If he presides over a government that moves too quickly, he knows he will wear the increased fatality counts, just like Quebec Premier Francois Legault will if his overly-aggressive approach to reopening backfires (he has already had to delay his reopening by two weeks).

But Ford, like Prime Minister Justin Trudeau, is unwavering. He will not put the economy first at the expense of more dead people. Trudeau and Ford will not put livelihoods ahead of lives. Even though not doing so will cost more money and inflict more economic devastation. We don’t know about you, but we’re happy to be governed by people with their priorities in the right order. (Hamilton Spectator Editorial)

 

Saturday May 2, 2020

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Saturday May 2, 2020

Tiff Macklem to lead the Bank of Canada

Finance Minister Bill Morneau has appointed Tiff Macklem, the former senior deputy governor of the Bank of Canada, to take over the top job at the central bank as it navigates the uncertainty of a pandemic-driven recession.

February 11, 2009

Macklem is currently the dean of the Rotman School of Management in Toronto, but had spent decades with the Bank of Canada before starting that appointment. 

Macklem began his career at the bank in 1984. He was widely expected to win the contest for bank governor in 2013, but was beaten out by Stephen Poloz, who was then CEO of Export Development Canada.

Poloz’s term ends June 2. 

The transition to new leadership comes as millions of Canadians have signed up for government aid and companies big and small are relying on federally backed wage subsidies to weather the COVID-19 pandemic.

During Friday’s announcement, Morneau said he’s confident Macklem’s expertise in financial markets will help the central bank navigate an economic crisis never before seen in Canada.

Coronavirus cartoons

“The bank has to be humble about what it doesn’t know. There’s a lot we don’t know about this disease. There’s a lot that medical experts don’t know about this disease,” Macklem said during his unveiling in Ottawa.

“But the Bank of Canada has tremendous analytic economic financial capacity to analyze what’s going on in the economy, and the important role for the Bank of Canada is to provide Canadians with as much information as it can honestly provide as to what is happening and what the recovery could look like, recognizing that we’re probably going to have to look at more than one scenario.”

In the past months, Poloz and Morneau have appeared at several joint news conferences to show a co-ordinated approach on monetary and fiscal policy to deal with the economic fallout of the pandemic and global oil shocks.

Morneau has announced more than $250 billion in direct financial aid, credit support and tax deferrals to help offset the impact of the COVID-19 pandemic. (CBC) 

 

Friday April 30, 2020

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday April 30, 2020

Coronavirus Proves Capitalism Has Always Been a Lie

April 2, 2020

As the coronavirus pandemic continues to cause mass death and upheaval around the world, there has been an unexpected side effect: it has unmasked capitalism. In the U.S., this unmasking can be seen in both the Federal Reserve’s actions as well as Congress’ coronavirus aid legislation, the CARES Act, both of which reveal critical truths about an economic system that has been sold to working people as one thing and as quite another to banks and corporations. To shed some much needed light on the intricacies of our financial situation during the latest crisis, “Scheer Intelligence” host Robert Scheer spoke with acclaimed economist and attorney Ellen Brown. 

There are plenty of parallels to be drawn between the last financial crisis and the coronavirus pandemic, with the clear exception being that now we’re not just dealing with a broken economy but with a deadly virus. Brown, who has written over a dozen books on economics and is the founder of the Public Banking Institute, explains how, unfortunately, the Covid-19 bailouts will once again betray Americans just as the 2008 stimulus did. 

November 14, 2008

“In 2008 the bailout was basically of the banks, or we had quantitative easing that went to the banks,” the author tells Scheer. “And then the idea was that the banks were supposed to lend that into the real economy, but of course, they didn’t do it. … But now we have even more credit facilities [and] the problem is, they’re all going to help the big corporations, and the hedge funds, and virtually every sort of shady business. Things the Federal Reserve couldn’t lend to before, [but] now they have new ways of doing it.”

The nefarious uses of the CARES Act have been blasted all over the press, and now news has emerged that the Federal Reserve is planning on handing big corporations a whopping half a trillion dollars with “no strings attached” and zero interest. As Scheer points out, however, this seemingly miraculous economic response at times of crisis, when money is suddenly conjured out of thin air, is nothing new. 

“The fact is, this is like what happens in wartime. You know, you had the Great Depression, [and when ] we went to war, suddenly [Franklin Delano] Roosevelt was able to really spend money,” says the “Scheer Intelligence” host, “And as a result, we got out of the Great Depression. In wartime, the government just prints money, finds it somewhere, and no questions asked. 

Living in a Pandemic

“And that’s what happened now,” Scheer goes on. “Because of this pandemic, Congress just said, OK, we’re going to find–what, you said $4 trillion; I’m sure it’ll grow to $8 trillion. They don’t do that ever about, say, dealing with poverty or education, or any of these things; they always are very tight with the dollar. But now, because we have this warlike situation, they can suddenly find this money, and they can spend it in a totally unaccountable way.”

March 7, 2020

But just as the deadly pandemic is becoming yet another opportunity for Wall Street and corporations to swindle the public with the help of the government, it’s also finally made one thing very clear: Universal Basic Income is absolutely possible. 

“As you say, if they could find the money for all that,” Brown tells Scheer in response to his summary regarding how money has always been funneled to the top, “they could clearly find the money for the people. My preferred option [is what] they call ‘helicopter money.’ Money that’s just created by the Federal Reserve and flown–theoretically, the original term came from flying helicopters over the people and just dropping the money equally on everybody. And we could still do that, and that’s called a Universal Basic Income.”

Brown goes on to explain in detail why it’s not only affordable, but won’t cause the massive inflation that critics so often write about whenever the measure is suggested.

“It’s not going to be inflationary,” she explains, “and that’s because of the way money comes into existence. We don’t really have a money system; we have a credit system. All of our money is credit; it’s created as credit on the books of banks, and it’s extinguished when the loans are paid off.” 

Perhaps her most shocking calculation is that were the current stimulus money to be divvied up and sent directly to families, it would end up being $13,000 per person, not the measly $1,200 the government is sending out as a one-off. Where, you may ask, did all the rest of that money go? As Brown and Scheer continually remind us, it’s been sent to the companies that pull all the strings in our rigged system. (KCRW) 



 

Wednesday April 15, 2020

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday April 15, 2020

After Mocking ‘King’ Trump, Cuomo Says Virus Should Be ‘No-Politics Zone’

Since the coronavirus began to ravage New York, Gov. Andrew M. Cuomo has used a fine mix of outright flattery and back-room diplomacy to draw down a variety of federal support, preaching nonpartisanship while mostly avoiding direct attacks on President Trump.

Marvellous Maps

In a span of about 24 hours this week, however, Mr. Cuomo, more typically known for his bruising political style, appeared to return to his roots. 

In a frenzy of television appearances on Tuesday, Mr. Cuomo urged the president to avoid being “dictatorial.” He said on CNN that Mr. Trump’s coronavirus response had been “schizophrenic.” About 30 minutes later on MSNBC’s “Morning Joe,” he compared the president’s daily briefings to “a comedy skit,” while saying no governor should watch them because “there’s no value in it.”

Mr. Cuomo’s comments were prompted by Mr. Trump’s unsubstantiated claim during a White House news conference on Monday evening that he had “total authority” over the states when it came to reopening the economy.

That claim was quickly rebuked by several governors, including Gov. Larry Hogan of Maryland, a Republican who heads the National Governors Association. But it was Mr. Cuomo who used the sharpest language, threatening to undo weeks of diplomacy toward the White House.

Mr. Cuomo’s shift in tone comes at a time when New York’s once-urgent need for immediate resources from the federal government has lessened, with many indicators showing a so-called flattening of the curve in the state.

Coronavirus cartoons

It also followed the introduction of the governor’s new coalition with his counterparts from six neighboring states to draft a plan to reopen the region’s economy — a move that displeased President Trump, whose exasperation grew Tuesday after Mr. Cuomo’s media appearances.

“Cuomo’s been calling daily, even hourly, begging for everything, most of which should have been the state’s responsibility, such as new hospitals, beds, ventilators, etc.,” the president wrote on Twitter. “I got it all done for him, and everyone else, and now he seems to want Independence! That won’t happen!”

Mr. Trump followed up with another post in which, referring to the film “Mutiny on the Bounty,” he compared the governors’ coalition to mutineers turning on their captain.

But given a chance to respond at his daily news briefing later Tuesday morning, Mr. Cuomo, a third-term Democrat, held back, repeatedly saying that he did not want to argue with Mr. Trump.

“The president was clearly unhappy,” Mr. Cuomo said, noting the “Mutiny on the Bounty” tweet and other remarks by Mr. Trump, who he said “was clearly spoiling for a fight on this issue.” (New York News)

Every cartoon idea starts with an ugly rough sketch

 

Friday April 17, 2020

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday April 17, 2020

Canada to keep border restrictions with U.S. for long time: Trudeau

Coronavirus cartoons

Canada’s border restrictions with the United States will remain in place “for a significant time” as the two nations fight the coronavirus outbreak, Prime Minister Justin Trudeau said on Thursday.

Washington and Ottawa agreed last month to clamp down on non-essential travel while allowing massive trade flows to continue across their long shared frontier.

“There’s a recognition that as we move forward there will be special thought given to this relationship. But at the same time we know that there is a significant amount of time, still, before we can talk about loosening such restrictions,” Trudeau told a daily briefing.

U.S. President Donald Trump on Wednesday told reporters the two nations were “doing well” and said, “It will be one of the early borders to be released.”

The two nations’ economies are highly integrated, and allowing trade to continue avoided major problems for the auto sector as well as the transportation of food and medicines.

 



Part of a Politico package featuring Canadian cartoonists

 

Although Trudeau’s government has enjoyed good relations with the Trump administration over the last 18 months, tensions still remain. Last month, Ottawa slammed a U.S. proposal to deploy troops along the border to fight the spread of the novel coronavirus, prompting Washington to drop the plan.

A total of 1,048 people in Canada had died from the coronavirus by 11 a.m. EDT (1500 GMT), slightly less than 10% higher than the death toll a day ago, official data posted by the public health agency showed.

The total number of those diagnosed with the coronavirus had climbed to 28,899. The respective figures at the same time on Wednesday were 954 deaths and 27,540 positive diagnoses.

Medical officials now expect the death toll to be between 1,200 and 1,620 by April 21, Theresa Tam, the chief public health officer, told a briefing.

She repeated comments she made on Wednesday about being cautiously optimistic the outbreak could be slowing down. (The Province)