How to run the world for free

Incentive

I have a proposal: Set the salary of an MP, MPP or municipal councillor equal to the median earnings of the population which she represents. The Prime Minister would get the median of Canada, a Premier the median of his province, a mayor the median of her municipality. The median should be calculated using ALL voting age constituents, including students, the unemployed, prison inmates, everyone.  I'm not really sure what would happen, but I think it would help politicians understand how their policies affect their constituents in a pretty clear way, instead of simply selectively choosing which rich pals they want to listen to.

The sky is falling

Get used to it. Maybe get an umbrella. A really strong one. Parts of a major expressway in downtown Toronto started falling on the street below this week. Initial reactions by officials were that everything is fine. Which, of course, it is not. It may not be a big structural issue for the Gardiner to have its superficial outer layer flaking off, but it sure is a big health issue for anyone walking or driving on the Lakeshore underneath it.

This is just another piece of crumbling infrastructure which we can't pay to keep up. Which, it turns out, is built into the North American way of life. Someone pointed me at this series of articles this week. They are very well reasoned and full of evidence in the form of case studies. I strongly recommend you take the time to read them all, but if you are really pressed, I'd say read #2 and #5.

And then, remember this: whatever you're paying – in taxes, for goods, for services – it's not enough. And if you don't pony up, eventually the sky will fall on your head.

The Growth Ponzi Scheme

1. The Mechanisms of Growth - Trading near-term cash for long-term obligations.


2. Case studies that show how our places do not create, but destroy, our wealth.


3. The Ponzi scheme revealed - How new development is used to pay for old development.


4. How we've sustained the unsustainable by going "all in" on the suburban pattern of development.


5. Responses that are rational and responses that are irrational.

The Fickle Finger of Fate

Some food for thought, on the subject of why social security nets are for everyone, not just the poor. (See also: Filthy Lucre [which has an unfortunate subtitle, but is worth reading even if you think you love capitalism])

Paul Krugman, in his post about the decreasing value of higher education:

but remember, the Luddites weren’t the poorest of the poor, they were skilled artisans whose skills had suddenly been devalued by new technology.

Mark Thoma, on why social security is not welfare:

If you think you are so rich and powerful that you don’t need such insurance, consider this. The stock market collapse of 1929 at the onset of the Great Depression wiped out substantial quantities of wealth. The typical stock was worth only one sixth its pre-crash value once the bottom was reached. Whatever insurance existed in the stock market evaporated as the crash unfolded.

It wasn’t the poor jumping out of windows on Wall street. If you think it can’t happen to you, think again.

The WTF Economy

This article about companies that are thriving despite a bad economy is not improving my outlook on humanity. Company number 4 is Snuggie.

I think we have a smoking gun here: the economy collapsed because the education system in the US is so bad that people no longer know how to use a blanket by the time they reach adulthood.

Woohoo!

Good news, everybody! You can now pay me for my ramblings! Flattr, who provides that little button next to all my post titles, is now open to everyone. It's pretty easy if you have a paypal account. So go and register and start Flatrring!

Saving Face

You know those horrible ads for "#1 tip of a flat belly"? Those drive me nuts. If it's a flat belly, how can it have a tip? Or is it that the flat belly is giving you a tip? I wish someone would rewrite those ads.

Anyway, I also have a tip for you. I got it from Rob Carrick's Personal Finance Readers a couple of weeks ago. His semiweekly blog is always entertaining, if not always entirely useful.

A tip came up on Rob's Personal Finance Reader a few weeks ago which was: dry your razor completely after every use. Being the experimentally minded person I am, I gave it a try. For the last few weeks I have been using my breath and a small amount of toilet paper to remove all the water from my razor blade after use. And you know what? It works.

Previously, I would probably get 3 or 4 shaves out of a blade and on the 4th one my neck would look like a freshly plowed field. I'm now on shave 6 with this blade and not a nick at all today. So give it a try, it'll save you money and save your face.

Let me know if it works, or if you have any other easy money-saving (or environment-saving) tips you want me to try out and write about.

Paying Our Dues

I live in a country that doesn't even rank enough to have received an iPhone 4G release date today. In order to remedy this, our government has decided to throw a $1-billion, 3-day long party for a handful of old, rich men.

I pointed out to my friend A that to pay for this you would have to go around to every single man, woman, child and other person in Canada and ask for $10 a day for 3 days.

"Shame," he responded, "that you couldn't just collect the whole $30 on the first day."

Start'em Young

I had a strange experience today at my community garden plot.

I was digging a hole which, while for asparagus, was suspiciously about the size and shape of hole one might dig for disposing of, say, a human body. But never mind that.

The important thing is that I had a shovel. The other important thing is that my plot is very near the children's playground at my community centre. As I was digging, a child of maybe 4 or 5 years came over to the fence and said something about my shovel. I told her I was using it to dig. She asked if she and her friends could have it. I said no, I needed it to dig. She said I could have it back afterwards. I said that I couldn't lend it to her. She then said something I found very strange: we need the shovel to make money.

Capitalism and I are on the outs right now. I mean, insofar as I need capitalism to survive, I guess I have no choice but to transact commerce. The problem with capitalism is that the main justification for it relies on the premise that people will do what is best for themselves. This is demonstrably false. People are easily fooled. Information is easily withheld (think Goldman Sachs).

If a small child came up to you and asked to borrow your shovel because she needed it to put the means of production in the hands of the workers, you would probably call child services and tell them that her parents were communists.

I didn't call child services and tell them that there was a little capitalist child on the playground. I did tell her that she probably wouldn't be able to make much money with the shovel. But she probably didn't believe me.

After all, they've already gotten to her.

Have Your Cake and Eat It, Too

There's all sorts of stuff I could write about: I just got back from Halifax; I've been to two scientific conferences in the last 2 weeks; the gardens (there are two this year) are in and growing; there are countless other things in my head right now.

But there's something that's been bugging me for a while, and the way the markets are behaving right now has reminded me. It's like, deep down inside, people are terrified that the current system is broken, but they don't really know what to do about it because there is no alternative, so they're just swinging their money around panicky willy-nilly.

All the while, the so-called experts are saying that everything is fine, the system is on the mend. Nothing was wrong with the foundations of the old system, it was only some dead wood that needed removing. So go ahead and invest in banks and manufacturing and all those other things which led to the economic catastrophe. The experts can see the future and it is good.

But wait, aren't these the same experts who spent 6 months telling everyone that the financial meltdown wasn't their fault because "no one could have predicted it"? Ah, so, don't blame you for the crisis because you don't have a crystal ball, but listen to you now because you can forsee the recovery?

Well, which one is it, guys? Can you predict the future or not? Evidence suggests not.

Like a Better Me

I haven't been writing here as much as I'd like lately. There are a number of reasons for that. First off, I'm hellabusy being a born-again student; grad school is exactly like I remember my older friends/colleagues describing it. Secondly, a lot of my creative thinking drifts very quickly in the rant category these days and I'd like to spare my readers too much of that. And finally, sometimes I have trouble expressing my ideas in ways that are understood by people who don't spend all their time inside my head*.

So imagine my delight when I came across a very well thought out piece which expresses many of my very own feelings in crisp, compelling prose. It is actually the introduction to a book which I have now reserved at the Toronto Public Library. If I had to summarize the article, it would be a phrase I started using sometime shortly before the housing bubble burst: home ownership is the new serfdom. But that is a very cursory summary, indeed.

I found the article by trying to learn more about a particular guest blogger on boing boing after being taken in by some of his posts. He puts very elegant words to some pretty complicated thoughts I've had: it's like reading what I would write if I were a better me. Which sounds a bit vain, but really, if you stumbled across an author like that, wouldn't you bask in your discovery for a little while?

Set aside a good chunk of time before clicking the link: the article is a bit long, but I think it's well worth sticking with. I strongly encourage you to read it, if only so that some of my rants sound a little less insane and baseless the next time we speak. And maybe it will stir in you some of the same thoughts and feelings it did in me.

Introduction to Life Inc.: How the World Became a Corporation and How to Take It Back.


* As a solipsist, I know that everyone spends all their time inside my head. Unfortunately, not everyone else knows that.

You Got Yourself Into This Mess...

I grew up in the land of consequences. When I was about 8 years old, my grandmother was taking drink orders for us kids at Christmas dinner. Being my smart-ass, 8 year old self, I asked for rye and water. So she brought me a (very small) glass of rye and water. I told her I was only joking, but she refused to bring me anything else until I finished it. And so I learned two very valuable lessons: 8 year olds don't like the taste of rye, and be careful what you wish for.

I think I kind of lucked out with my parents. A lot of people think they should be glad for all the times their parents were there for them, and I sure am (or I would be if I could think of any... kidding!).

What I am more grateful for is the times they weren't there for me. I'm talking about the times they said things like “you got yourself into this mess, get yourself out of it.” Because I learned that I could get myself out of those messes. I learned that screwing up wasn't the end of the world and that I was capable of a lot more than I thought. That life goes on. And I got to learn these things as a kid. Becasue of coddling by their parents, these are lessons a lot of people my age are only starting to learn for themselves and let me tell you, learning is a lot harder as you get older.

During those times, I'm sure I felt like I'd been abandoned, that my parents were jerks. I suspect it was as hard, if not harder, for my parents to watch me struggle than it would have been for them to step in. They were motivated, however, by wanting me to succeed later in life, ie, to get me out of their house.

I sort of feel like this is all a good analogy for the current market woes. People asked for capitalism, and by gum, that's what they got. Virtually unbridled, unregulated access to markets. And what did they do with it? They blew it. They took out loans they couldn't afford; they loaned money to people who couldn't afford it. They lied to each other; and they invested in things about which they knew not. People wanted capitalism but they didn't want to shoulder the responsibility and do their due diligence.

So now what does everyone expect? For mom and dad, AKA the government, to bail them out. Well, you know what I say? You got yourself into this mess, get yourself out of it.

Of course, the government doesn't have the same motivation my parents did. The government wants to keep people under their roof. Because that's where they can control them. And think of it this way: which is going to garner more votes now? The quick, easy solution that falls apart after 10 years or less? or the long, hard, pull-yourself-up-by-your-bootstraps solution which results in a much more sustainable economy where everyone gets a shot at being happy?

It's too bad, because I think now might be a good chance for the economy to learn that it's not the end of the world if the government doesn't bail you out. The way I see it is this: the price of capitalism is personal responsibility for all transactions. People didn't pony up and I suspect that what we get next will carry a much heavier price tag: freedom.