Economics 101: Rewriting the Textbooks

Deborah Yedlin (2008-12-30) of the Calgary Herald’s Business section succinctly summarized the economic nightmare of 2008 in which the investment banking industry collapsed, Chicago school economics theories were debunked and their heroes dethroned, trusted risk management managers were vilified, and the axis of financial power shifted from the West to the East.

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Citations

“The consequences of the lack of regulation in the shadowy subprime housing market, and the ability of banks to get loans off their balance sheets and have investment banks repackage them as rated securities, allowed for the spreading risk. It was a practice that was supposed to ensure if something went bad, the damage would be contained because the exposure would be spread out. It was an axiom that was lent an even greater reliability because U. S. Federal Reserve chairman Alan Greens-pan was a believer in it. As many are now painfully aware, the dominos began to fall when two hedge funds at Bear Stearns collapsed in late 2007. This started the clock ticking on the 84-year-old investment bank, which proceeded to lose the confidence of investors and counterparties and was sold post-haste to JP Morgan Chase in March for $10 a share with the “help” of the U. S. Federal Reserve and its investment banking veteran, Hank Paulson (Yedlin 2008-12-30).”

“Nobel Prize-winning economist Paul Krugman, in opining on the multi-billion fraud perpetrated by Bernard Madoff, suggested one of the reasons he was not discovered was because of society’s worship of the wealthy. Too many, he said, have drawn the conclusion that people who have made huge sums of money must be very smart and to question these individuals would be to insult them (Yedlin 2008-12-30).”

Webliography and Bibliography

Yedlin, Deborah. 2008-12-30. “Storybook year ends in economic nightmare.” Calgary Herald.

Public Policies Keep 16% of Canadians Poor

Judith Maxwell (2008-01-28), former head of the Economic Council of Canada and Canadian Policy Research Networks, claimed that the high concentration of at-risk Canadians live in highly disadvantaged neighbourhoods of poverty by postal code. In 2008 the Canadian national poverty rate remained at c. 16% where we’ve been stuck for eight years. Maxwell claims that religions, some social-minded businesses and countless volunteers who constitute civil society are revitalizing desperately poor neighbourhoods, tackling homelessness and letting governments know that the current policies prevent people from escaping poverty.

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Maxwell, Judith. 2008-01-28. “Forget policy makers, civic leaders are spearheading the fight to end poverty.” Globe and Mail.

Homelessness: from crisis management to ending the disgrace

Leading US advocate for homeless praised The Calgary Committee to End Homelessness’ 10-year plan business plan’s innovation, measurable benchmarks, field-tested, evidence-based & modeled on best practices in US cities which house homeless families, provide supported housing and treatment for homeless who suffer from mental illness and addictions.

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The Calgary Committee to End Homelessness unveiled its 10-year plan, “outlining the hundreds of millions of government dollars success will cost, as well as the projected $3.6 billion in eventual savings. The plan, developed by a committee 2007-2008, includes targets such as reducing the number of emergency shelter beds by half within five years, eliminating family homelessness within two years and chronic homelessness within seven, and creating more than 11,000 affordable housing units, including secondary suites and student housing [. . .] The Calgary committee has already launched two pilot projects it believes will put roofs over the heads of at least 100 people over the next year . . . A New York program is the model for Pathways to Housing, which finds supported housing for people with mental illness or addictions and then focuses on treatment. Hennepin County’s Rapid Exit program is being copied by CUPS as it matches homeless families and landlords, finding a place to live for at least six families in its first month (Guttormson 2008).”

My questions: How did structural changes over the last twenty years change the face of homelessness? When did the Canadian federal government download responsibilities regarding public health services including mental health to the provinces and the provinces to municipalities? What are the current demographic studies of the homeless, the proportion who are urban Inuit and First Nations? women? immigrants? children? families? mentally ill? relationship between mental illness and substance abuse?

Folksonomies or tag cloud

Calgary Committee to End Homelessness, Steve Snyder, Calgary’s housing prices are seriously unaffordable, Phillip Mangano, U.S. Interagency Council on Homelessness, homeless, 10-year plan, crisis-management, end the disgrace, innovative ideas, business plan, measurable benchmarks, innovative ideas, municipalities, field-tested, evidence-based, Pathways to Housing, Rapid Exit, best practice, Calgary Committee to End Homelessness, 10-year-plan, emergency shelter beds, homeless families, supported housing, mental illness, addictions, chronic homeless population,

Timeline

2006 3,400 people in Calgary, Alberta were considered homeless, that is, living without permanent shelter (Guttormson 2008).

2007 The Calgary Committee to End Homelessness launched two pilot projects Pathways to Housing and Rapid Exit in 2007 which are anticipated to put roofs over the heads of at least 100 people in 2008 (Guttormson 2008).

2008-01-28 Demographia International Housing Affordability Survey: 2008 pegged Calgary’s housing prices as “seriously unaffordable.”

2008-01-29 The Calgary Committee to End Homelessness unveiled its 10-year plan, outlining the hundreds of millions of government dollars success will cost, as well as the projected $3.6 billion in eventual savings (Guttormson 2008).

2010 According to the Calgary Committee to End Homelessness’ 10-year plan (2008-2018) officials hope to stabilize the homeless population at the 2006 numbers 3,400) and to eliminate family homelessness by 2010.

2013 Calgary Committee to End Homelessness 10-Year Plan promises to reduce the number of emergency shelter beds by half within five years (Guttormson 2008).

Who’s Who?

Calgary Urban Project Society (CUPS) is “a not-for-profit community health centre in Calgary’s downtown core. Offering collaborative and holistic services in the areas of health care, education and social services, CUPS Community Health Centre helps people make the transition from poverty to stability. Founded on the principle that all people have an inherent right to lead a life of dignity, equality and respect, CUPS is a safe, warm and welcoming environment free of judgment and rejection (CUPS website ).” CUPS is actively engaged in combatting poverty and homelessness in Calgary. They have inaugurated a pilot project which matches homeless families and landlords, finding a place to live for at least six families in its first month is modelled on the US Hennepin County’s Rapid Exit program.

Cox, Wendell a senior fellow at the Frontier Centre for Public Policy and Hugh Pavletich, a property investment manager in New Zealand produced the survey entitled

Demographia International Housing Affordability Survey: 2008.

Frontier Centre for Public Policy’s senior fellow Wendell Cox and Hugh Pavletich, a property investment manager in New Zealand produced the survey entitled

Demographia International Housing Affordability Survey: 2008.

Kim Guttormson is a journalist with the Calgary Herald which is part of the CanWest group.

Pathways to Housing, which finds supported housing for people with mental illness or addictions and then focuses on treatment is modelled on the successful New York program (Guttormson 2008).

Phillip Mangano is executive director of the U.S. Interagency Council on Homelessness and a leading advocate for the homeless, who praised Calgary’s 10-year plan for ending homelessness. Mangano claimed that, “If this plan is implemented the way it is written, you will see in the next few years the number of people on the street, the number of people long-term in shelters, begin to be reduced. Calgary has decided to stop managing the crisis and begin ending the disgrace.” Mangano is confident that Calgary’s “bold and innovative” strategy will accomplish the plan’s ambitious goals. “Mangano, who has read Calgary’s report, calls it impressive and says it has the key components of successful plans in other cities — it’s based on a business plan, it has measurable benchmarks and it uses innovative ideas from other municipalities. “Calgary has done a very good job of uncovering the innovative ideas that are already field-tested and evidence-based, they’re already working somewhere else,” said Mangano, who has worked with more than 300 plans south of the border. “So you know if you invest in them, they’re going to work there (Guttormson 2008).”

Steve Snyder is chairman of the Calgary Committee to End Homelessness. Snyder explained how this plan differs from past approaches where money was “thrown at the homeless issue” in that there is nothing in this plan that is pie-in-the-sky. In order to break the cycle of homelessness the committee studied best practice models in American cities where ten-year plans developed since 2003 have proven successful. “New York has closed a 1,004-bed shelter, Portland reduced its chronic homeless population by 70 per cent, Denver saw its chronic numbers drop 36 per cent and Hennepin County in Minnesota recorded a 43 per cent decrease in homeless families (Guttormson 2008).”

U.S. Interagency Council on Homelessness

Webliography and Bibliography

Guttormson, Kim. 2008. “U.S. advocate for homeless raves about Calgary plan: City lauded for decision to start ending ‘disgrace’.” City & Region. Calgary Herald. January 29. B3.

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CC Flynn-Burhoe, Maureen. 2008. “Homelessness: from crisis management to ending the disgrace” >> Google Docs. Uploaded January 29.

Tag clouds with shaft of light: Playing tag with the Fraser Institute

Flynn-Burhoe, Maureen. 2007. “Tag clouds with shaft of light: Playing tag with the Fraser Institute.”.You may copy and use this image and text by following the Creative Commons License 2.5 BY-NC-SA guidelines.
Tag clouds with shaft of light over the Canadian topography, or playing tag with the Fraser Institute.

This tag cloud was merged with a Google Earth view from West Coast mountains towards Ottawa and Washington in the East. The beam of light in the background is the Enron tower.

In the Adobe Photoshop toolbar under Filter > Liquify > I maximized the brush to create powerful wind patterns effects in the clouds hovering over the Canadian topology.

I studied the Fraser Institute’s on-line annual reports and web pages to piece together the following categories, tags or folksonomies to introduce mass media users to one of the most highly cited think tanks which emerged in 1974 at the height of Thatcherism. These are the tags in the cloud:

Economic Freedom, Milton Freeman, Education, Environment and Risk, Privatizing Correctional Services (1998), Alan Greenspan, Skeptical Environmentalist by Bjørn Lomborg, Fiscal Policy, Sally Pipes, T. Patrick Boyle, MacMillan Bloedel, Governance, Csaba Hajd, Ralph Klein, Private vs. Public Health, Can the Market Save Our Schools? (2000), Law and Markets, Caring For Profit: Economic Dimensions of Canada’s Health Care Industry (1987), Non-profit Studies, Adam Smith, Atlas Foundation, Sir Antony Fisher, Regulatory, Pharmaceutical Policy, The Illusion of Wage and Price Controls, Preston Manning, Entrepreneurship and Markets, Michael Walker, IEA, Alan Campney, Social Affairs, School Report Cards, Thatcher, economic conscience, Bill Emmott, George Shultz, John Raybould, Trade and Globalization, Schumpeter, The Economist, Cato Institute- Washington, Rent Control: A Popular Paradox

See also Think Tanks: Corporate Director Board Interlocks: Fraser Institute

Billions in trade gap, pennies for workers in China’s Special Economic Zone

Richard Nixon noted, “[In 1994] China’s economic power makes US lectures about human rights imprudent. Within a decade it will make them irrelevant. Within two decades it will make them laughable (Huntington 1997:195).” Rural norther women (2006) in southern SEZ, earn pennies. Profits shared by retailers, Tianjin, Klein, Nautica, Chaps, Feniger

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Challenges of Human Rights within a Geopolitics of Exclusion

Originally presented as part of: Flynn, Burhoe, M. 2004. “Human Rights Comprehensive,” Carleton University, Ottawa, ON.

 

The 1993 Vienna Human Rights Conference revealed the ideological schism between the Western bloc of liberal democracies embodied in European and North American countries and diverse ideologies of fifty non-Western countries[1] which the West lumped together as Asian-Islamic. In spite of this, cultural relativism was rejected in favour of the universality of human rights. At this same conference Islamic and Chinese delegates emphatically stated that the universality of human rights was not questioned. But as China’s economic clout increases so does the demand for a shift in the dominant western-centred human rights lexicon to include Asian values (Falk 2000:8). See also Ignatieff.

The rapid dramatic economic, industrial and technological growth of China’s Special Economic Zones has situated China as a formidable trade partner in the global economy attracting foreign investors particularly the US and Japan. This has a profound effect on Human Rights debates which became visibly apparently in 1994 with Clinton was forced to retract threats to impose sanctions on China for its human rights abuses. It is the hope of the Western world that China’s need for trade partners will lead to greater transparency but in the unpredictable shifts of power dynamics, economic forces alone will not compel China to adopt western values. As China’s international market strength gathers momentum human rights concerns conveyed by even the more vocal dissenters, Tibet and Taiwan are set aside.

At a recent conference on Governance Self-Government and Legal Pluralism (2003) Premier Okalik[2] defined traditional knowledge as a collective means of re-interpreting a rapidly changing world. Falk suggested an “alternative to the false universalism of globalization in the form of an intercivilizational world order that combines the ecological and biological conditions of unity with the civilizational[3] realities of difference and self-definition (Falk 2000b:161). This radical shift recognizes the emergence of civilizational identities which challenges the dominant statist identities (2000b:147). Another term that is used to describe this geopolitics of inclusion is multi-civilizational dialogical relationship. An international globalization research centre, Institute for Global Peace and Policy Research (TODA) is developing a multi-civilizational conceptual framework focusing on the unity and variety of conditions and institutions for global democracy in an age of globalization and regionalization (TODA 2000).

The end of the cold war, ideological passivity of China, spread of market liberalism set the stage for a new period in human rights. The new western political ideology claimed that only democratic forms of governance are legitimate and promote human rights (Falk 2000a:47).

 

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[1](including Communist Cuba, Buddhist Myanmar, Confucian Singapore, Vietnam, North Korea, China, Muslim Malaysia, Indonesia, Pakistan, Iran, Iraq, Syria, Yemen, Sudan and Libya)

[2] At a recent conference on Governance Self-Government and Legal Pluralism Premier Okalik acknowledged the challenges of transforming a society afflicted with inherited social wrongs. Governance for the new territory is based on traditional Inuit values respected for the full weight of the history it reflects, as a proactive means engaging the transition. Inuit culture remained intact until relatively recently unlike other indigenous peoples in North America. Okalik described one of the pivotal values of Inuit governance resides in unique form of communication based on listening to others while never losing one’s own horizon in a process that is as complex in execution as it is simple in expressing. In this way Nunavut governance evolved using the best of the Westminster style of government but with unique Inuit traits that reflect Inuit culture and knowledge Inuit Qaujimajatuqangit. The application of IQ is contemporary and continues to evolve although it is steeped in tradition (Okalik 2003).

[3] Falk traced the roots of the civilizational explorations to Braudel (Braudel 1949[1969]) and Toynbee (1961). Elitist and ethnocentric art historian Erwin Panofsky (1939) measured all art history in relation to highpoints of Western civilization, particularly Gothic France and Renaissance Italy (1984; Holly 1997). In education both Hutchins (1936) and Allan Bloom (1987) in his Great Books series assumed the primacy of western civilization over all others. Lord Kenneth Clark’s (1970) televised popular mini-series Civilisation (Alter 1999) spanned eleven countries and sixteen centuries claiming achievements in the name of western civilization through art, architecture, philosophy and history.

 

The end of the cold war, ideological passivity of China, spread of market liberalism set the stage for a new period in human rights. The new western political ideology claims that only democratic forms of governance are legitimate and promote human rights (Falk 2000:47). In 1989 China cracked down on pro-democracy activists in Beijing‘s Tiananmen Square. This was denounced by Clinton when he was campaigning for the US Presidency. However ever since China initiated its more market-friendly policies in its Special Economic Zones, its GNP has risen dramatically. Currently its economy is second only to the United States. Unlike many other late comers to development, China strategically developed its own technical expertise with rapidity thereby limiting China’s dependency on the United States. This has profound effect on Human Rights debates which became official in 1994 with Clinton was forced to retract threats to impose sanctions on China for its human rights abuses. China is attracting foreign investors particularly the US and Japan. It is the hope of the Western world that China’s need for trade partners will lead to greater transparency such as is beginning in the Special Economic Zone. (See the timeline of events that led to the shift.)

Flynn-Burhoe, Maureen. 2004. “Challenges of Human Rights within a Geopolitics of Exclusion,” “Overview of the Context, Content, Conceptual Framework and Outcomes of Designing and Teaching a Human Rights Course in Iqaluit, Nunavut,” Comprehensive Exam II, submitted to PhD committee members Professors Rob Shields, Phillip Thurtle, Donna Patrick. May 21, 2004 in partial requirement for a PhD in Sociology/Anthropology at Carleton University, Ottawa, ON.  Creative Commons license applies.

 

Selected Bibliography

Axworthy, Lloyd. 1995. “Statement.” in World Summit for Social Development. Copenhagen, Denmark.

Braudel, Fernand. 1949[1969]. La Méditerranée et le monde méditerranéen à l’époque de Philippe II, vol. 1. Paris, FR: Flammarion. http://www.armand-colin.com/cgi-bin/bookf.pl?is=2200372248

Brittan, Sir Samuel. 1996. “Review of Charles K. Rowley’s “The Political Economy of the Minimal State”.” The Times Literary Supplement. http://www.thelockeinstitute.org/books/politicaleconomy_review1.html

Falk, Richard A. 2000. Human Rights Horizons: The Pursuit of Justice in a Globalizing World. New York: Routledge.

Gadamer, Hans-Georg. 1960 [1975]. Truth and Method. New York: Crossroad Publishing Company.

Habermas, Jurgen. 1981. “The Theory of Communicative Action.” vol. 2.

Hutchins, Robert. 1936. The Higher Education in America. Chicago.

Leary, Virginia A. 1998. “Globalization and Human Rights.” Pp. 265-276 in Human Rights: New Dimensions and Challenges: Manual on Human Rights, edited by Janusz Symonides. Aldershot, UK: Ashgate Dartmouth Publishing Company Ltd. / UNESCO Publishing. hum/sym/hum

Lyons, Oron R. 1992. “The American Indian in the Past.” in Exiled in the Land of the Free: Democracy, Indian Nations and the U.S.Constitution, edited by Oron R. Lyons and John C. Mohawk. Santa Fe, New Mexico: Clearlight Press.

Okalik, Paul. 2003. “The Naujaat Challenge: Working Together.” in To the Conference on Governance Self-Government and Legal Pluralism. Hull, Quebec. http://www.gov.nu.ca/Nunavut/English/premier/press/cgsglp.shtml

Powless, Irving Jr. 2000. “Treaty Making.” Pp. 115-126 in Treaty of Canandaigua 1794: 200 Years of Treaty Relations between Iroquois Confederacy and the United States, edited by G. Peter Jemison and Anna M. Schein. Santa Fe: Clearlight Press.

Rikard, Jolene. 2002. “After Essay – Indigenous is the Local.” Pp. 115-126 in On Aboriginal Representation in the Gallery, edited by Lynda Jessup and Shannon Bagg. Gatineau, PQ: Canadian Museum of Civilization.

Ryan, Alan. 1997. “Pragmatism, Social Identity, Patriotism, and Self-Criticism.” The National Humanities Center. http://www.nhc.rtp.nc.us:8080/publications/hongkong/ryan.htm

Symonides, Janusz. 1998. Human Rights: New Dimensions and Challenges: Manual on Human Rights. Aldershot, UK: Ashgate Dartmouth Publishing Company Ltd. / UNESCO Publishing. hum/sym/hum

Taylor, Charles. 1989. Sources of the Self: The Making of the Modern Identity: Cambridge University Press. http://www.philosophers.co.uk/cafe/phil_may2003.htm

TODA. 2000. Annual Report 2000. University of Hawaii: Toda Institute for Global Peace and Policy Research, Globalization Research Center. http://www.toda.org/annual_reports/2000.html

Canada’s nasty secrets revealed to OECD: Child Poverty in Rich Countries

Child poverty in Canada is almost six time that of Denmark. Overall poverty rates are also high. 10 % of Canadians live in poverty – a stark contrast to Denmark’s 4.3 % and Sweden’s 5.3. (Rothman, Laurel. 2006. “Report of a Standing Committee on Finance,” www.campaign2000.ca) Recommendations: minimum wage $10 per hour; Employment Insurance reform.

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CBC, 2006. Aboriginal children face terrible poverty in Canada: report: B.C. and Newfoundland have highest rates; Alberta and P.E.I. have lowest rates. Last Updated: Friday, November 24, 2006 | 2:04 PM ET, Accessed November 24, 2006 11:19 PT.
http://www.cbc.ca/canada/story/2006/11/24/child-poverty.html?ref=rss

Flynn-Burhoe, Maureen. 2006. “Canada’s nasty secrets revealed to OECD: Child Poverty in Rich Countries,” last updated November 24, 2006 11:05 am. papergirls.wordpress.com, accessed (YY/MM/DD) https://papergirls.wordpress.com/2006/11/25/canadas-nasty-secrets-
revealed-to-oecd-child-poverty-in-rich-countries

Laurel Rothman, Laura. 2006. “Reducing Child & Family Poverty in a Time of Prosperity: The Roles of Tax Benefits, Public Investments and the Labour Market Submission to Standing Committee on Finance Pre-Budget Consultation,” http://www.campaign2000.ca/rc/rc06/06_C2000NationalReportCard.pdf Last updated YY/MM/DD Accessed November 24, 2006.

Campaign 2000

Selected webliography on Status of Women Canada generated from my Endnote bibliography, compiled from (1992?-present)

Dion-Stout, Madeleine & Kipling, Gregory D. (1998) Aboriginal Women in Canada: Strategic Research Directions for Policy Development. http://www.swc-cfc.gc.c/publish/research/abwom-ehtml

Dion Stout, Madeleine & Kipling, Gregory D. (1998) Aboriginal Women in Canada: Strategic Research Directions for Policy Development. Ottawa, ON, Status of Women Canada. http://www.swc-cfc.gc.ca/pubs/0662634314/199803_0662634314_e.pdf

Frulla, Liza (2005) Statement of Canada. United Nations Commission on the Status of Women 10-year Review of the Implementation of the Beijing Platform for Action. http://www.swc-cfc.gc.ca/newsroom/news2005/0302_e.html

Gender Equality, Aboriginal Women (2000) Roundtable Report. Ottawa, Aboriginal Women’s Roundtable on Gender Equality. http://www.swc-cfc.gc.ca/publish/table/010914-e.pdf

Jenson, Jane (2004) A Decade of Challenges; A Decade of Choices: Consequences for Canadian Women. Montréal, Canadian Policy Research Network-Family Network. http://www.cprn.com/en/doc.cfm?doc=558

Kenny, Carolyn, Faries, Emily, Fiske, Jo-Anne & Voyageur, Cora (2004) A Holistic Framework for Aboriginal Policy Research. http://www.swc-cfc.gc.ca/pubs/0662379594/200410_0662379594_1_e.html

Kipling, Dion-Stout and Gregory D. (1998) Aboriginal Women in Canada: Strategic Research directions for Policy Development. http://www.swc-cfc.gc.c/publish/research/abwom-ehtml

Lindsay, Colin, Almey, Marcia & Statistics Canada (2004) A Quarter Century of Change: Young Women in Canada in the 1970s and Today. Ottawa, Status of Women Canada (SWC) Policy Research Fund. http://www.swc-cfc.gc.ca/pubs/0662388976/200412_0662388976_1_e.html

Press Release (1998) Fry welcomes gender breakthrough in APEC. Manilla, Phillipines. http://www.swc-cfc.gc.ca/newsroom/news1998/1019-2_e.html

SWC (1995) Setting the Stage for the Next Century: The Federal Plan for Gender Equality. Status of Women Canada

SWC (1998) Human Rights for All. http://www.pch.gc.ca/progs/pdp-hrp/docs/cedaw5/nt_e.cfm?nav=2

SWC (1999) Highlights of Federal Government Initiatives to Address Violence Against Women: Legislative Reforms That Assist in Addressing Violence Against Women in 1999: Bill C-79. Status of Women Canada. http://www.swc-cfc.gc.ca

Voyer, Jean-Pierre (2003) Introduction: Social Capital: A Useful Tool for Public Policy? in Initiative, Policy Research Horizons. Public Works and Government Services Canada. http://policyresearch.gc.ca/v6n3_e.pdf

Friedman: social responsibility of business is to increase its profits (1970)

In a June 27, 2017 article entitled “Is the Problem With Tech Companies That They’re Companies?: A Stanford professor argues that a profit imperative is in tension with the needs of a democratic society” published in The Atlantic , Rebecca J. Rosen reported on the Aspen Ideas Festival co-hosted by the Aspen Institute and The Atlantic. One of the speakers, Stanford professor Rob Reich, argued that “a profit imperative is in tension with the needs of a democratic society”. Reich Reich referred to the economist Milton Friedman’s 1970 article in The New York Times Magazine called “The Social Responsibility of Business Is to Increase Its Profits.” These “ideas have contributed to a libertarian ‘background ethos’ in Silicon Valley, where people believe that ‘you can have your social responsibility as a philanthropist, and in the meantime make sure you are responding to your shareholders by maximizing profit.'”

Economist Milton Friedman, propagated 18th century values in the Post-WWII global economy. Like Adam Smith he preached the gospel of minimal government, laissez-faire. The triad, Hayek’s The Road to Serfdom (1944), Ayn Rand’s Atlas Shrugged (1957), and Milton Friedman’s Capitalism and Freedom (1962) pit economic efficiency against social justice.

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Footnotes

I compiled this digitized collage, inspired by Deborah Barndt’s Tangled Routes: Women, Work and Globalization on the Tomato Trail on November 16, 2006. I used a Google earth generated globe to situate as a kind of circumtomato globe. I developed the concept of John Elkington’s Cannibals with Forks for the image of a world being devoured by those who choose to make decisions based on only one bottom line.

See also speechless.wordpress.com

Barndt, Deborah (2001) Tangled Routes: Women, Work and Globalization on the Tomato Trail, Aurora, ON, Garamond Press.

Davis, Ian. 2005. “The biggest contract: By building social issues into strategy, big business can recast the debate about its role, argues Ian Davis.” The Economist. May 28.

“The great, long-running debate about business’s role in society is currently caught between two contrasting, and tired, ideological positions. On one side of the current debate are those who argue that (to borrow Milton Friedman’s phrase) the “business of business is business”. This belief is most established in Anglo-Saxon economies. On this view, social issues are peripheral to the challenges of corporate management. The sole legitimate purpose of business is to create shareholder value. On the other side are the proponents of “Corporate Social Responsibility” (CSR), a rapidly growing, rather fuzzy movement encompassing both companies which claim already to practise CSR and sceptical campaign groups arguing they need to go further in mitigating their social impacts. As other regions f the world—parts of continental and central Europe, for example— move towards the Anglo-Saxon shareholder-value model, debate between these sides has increasingly taken on global significance. That is a pity. Both perspectives obscure in different ways the significance of social issues to business success. They also caricature unhelpfully the contribution of business to social welfare. It is time for CEOs of big companies to recast this debate and recapture the intellectual and moral high ground from their critics. Large companies need to build social issues into strategy in a way which reflects their actual business importance. They need to articulate business’s social contribution and define its ultimate purpose in a way that has more subtlety than “the business of business is business” worldview and is less defensive than most current CSR approaches. It can help to view the relationship between big business and society in this respect as an implicit “social contract”: Rousseau adapted for the corporate world, you might say. This contract has obligations, opportunities and mutual advantage for both sides.” See The Economist premium content.

Elkington, John (1997) Cannibals with Forks: The Triple Bottom Line of 21st Century Business, New Society Publishers, Limited.

Elkington, John (2003) Chrysalis Economy: How Citizen CEOs and Corporations Can Fuse Values and Value Creation, Wiley, John and Sons, Incorporated.

CBC, 2006. “In Depth: Wealth Canada’s super-rich,” CBC News, Last Updated December 4, 2006, accessed December 12, 2006.

Canadian Business magazine lists 1. the Ken Thomson family (media) $24.4 Billion Cdn or 19.6 Billion US); 2. Galen Weston (groceries) $7.1 $24.4 Billion Cdn; 3. The Irving family (oil) $5.45 Billion Cdn; 4. Ted Rogers Jr. (media) $4.54 Billion Cdn; 5. Paul Desmarais Sr. (Power Corp.) $4.41 Billion Cdn; 6. Jimmy Pattison (entrepreneur) $4.35 Billion Cdn; 7. Jeff Skoll (eBay) $3.93 $4.41 Billion Cdn; 8. Barry Sherman (Apotex drugs) $3.23 Billion Cdn; 9. David Azrieli (real estate) $2.44 Billion Cdn; Fred and Ron Mannix (mining) $2.38 Billion Cdn as ten of the 22 Canadian families who are part of the uber wealthy group of 793 billionaires who control $2.6 trillion US of the world’s wealth. Others include Alexander Schnaider (steel) baron, Calvin Ayre (online gambling), John MacBain (classified ads), Guy Laliberté (Cirque du Soleil) 1 Billion Cdn. of this group of 22 billionaires their money came from pharmaceuticals, media, oil and gas, food retailing, printing, money management, construction and the BlackBerry. Five of the 22 are in their forties.

Danko, William D. The Millionaire Next Door

Danko, William D. Richer Than A Millionaire

Drummond, Don, Tulk, David. 2006. “Lifestyles of the Rich and Unequal: an Investigation into Wealth Inequality in Canada.” Special Report. TD Bank Financial Group. December 13, 2006. Accessed December 14, 2006.

Drummond explains how the wealthier quintile of the Canadian population will continue to become wealthier while the middle quintiles will suffer with lower wage gains intensifying wealth disparities. The assets of of the lowest quintile fell by 9. 1% since 1999. This is the group which includes single women, Canada’s children who live in poverty and seniors.

What is also interesting is that there is a significant amount of inequality within the highest wealth quintile of Canadians. One can get an appreciation of this fact by noting the pronounced difference between the mean and median asset holdings. While median net worth for the top 20% is $862,900, the average stands at $1,264,200 suggesting a significant skew towards the extremely wealthy. This difference is even more pronounced when holdings of individual assets are compared for those who hold them within the highest quintile. The largest source of the skew towards the wealthy comes from the holdings of bonds which has a mean-median ratio of 7.9 (the larger the ratio, the greater the share of the asset is held by the top segment of the wealthy). The nebulous category of “other non-financial assets” also has a significant concentration in the super-wealthy. Included within this category are such items as the contents of the residence, valuables, collectables, as well as such high value and sparsely-held items as copyrights and patents. […] Within this category, the share of employer-sponsored pension plans (18.5%) is twice as large as individual pension assets (10.5%) such as Registered Retirement Savings Plans (RRSPs), Registered Retirement Income Funds (RRIFs), and Locked-in Retirement Accounts (LIRAs). Holdings of non-pension financial assets (10.4%) and equity in business (10.5%) each represent a comparatively smaller portion of total asset holdings.

Morissette, René, Zhang, Xuelin. 2006. “Revisiting wealth inequality: Perspectives on Wealth and Income,” Statistics Canada. http://www.statcan.ca/english/freepub/75-001-XIE/11206/high-1.htm
Vol. 7, no. 12. December 13, 2006. Accessed December 14, 2006.

“When all families are considered, real average wealth rose 70% from [1999 to 2005] however wealth inequity increased as well. Real average wealth increased between 51% to 70% reflecting large increases for the wealthiest 10% of Canadians who held 58% of the wealth, a percentage that continues to rise as it has since 1984. For fifteen years prior to the deep cuts made in the post-1984 period of deficit panic wealth inequity fell then plateaued. Canadian families will continue to become more at-risk to social exclusion as their debts increase, equities are reduced and they face little or no wage increase.Morissette and Zhang (2006) reveal how challenging it is to estimate the share of total wealth controlled by the upper quintile, particularly the UHNW. See also Davies (1993). While 10% may control 58% of Canadian wealth less than 1% of Canadian families may in effect hold up to 46% of the wealth.While Morissette and Zhang (2006) claim that elderly unattached individuals saw their median wealth double, from roughly $48,000 in 1984 to $100,000 in 2005, they did not qualify that the extremes of wealth and poverty skew the statistics. See the article on the large number of senior Canadians who live below the poverty line.While the wealthiest quintile, particularly the top 1% benefited since 1984, the lowest quintile, mainly female lone-parent families remain as by far the most financially vulnerable. “In all years, more than 40% of persons in these families were in low income and would have stayed in that state even after liquidating their financial assets.” This is where Canada’s children who live in poverty in a rich country live. Lower quintile included those with median wealth no higher than $7,000, families with no assets at their disposal to lessen the impact of unexpected expenses or earnings disruptions. The average wealth of the most vulnerable families fell to -$1000 between 1999 and 2005 from zero assets/debt ratio through the 1980s to negative (about -$1,000) in both 1999 and 2005. The value of their real estate, for those who did have a modest home, did not rise. “it fell substantially among those in which the major income recipient was aged 25 to 34. In 2005, these families had median wealth of $13,400 (in 2005 dollars), much lower than the $27,000 and $17,400 registered in 1984 and 1999 respectively.” While in the middle quintile there was a modest rise of average wealth rose of about $19,000, families in the most wealthy quintile experienced a substantial increase in the value of their real estate. They allocated more of their financial assets to RRSPs and LIRA holdings. They sharply increased their investments in RRSPs between 1986 and 2003. “Median wealth more than doubled between 1970 and 2005, having grown by c.20-25% since 1984. While the median wealth of young families fell by half between 1984 and 2005, it rose by almost 40% for those in which the major income recipient was a university graduate aged 35 to 54.”

Stenner, Thane, Bower, Rod, Currie, John, O.Connor, Rory. 2006. “True Wealth Report: Values and Views of Ultra-Affluent Individuals,” http://www.truewealthreport.com/downloads/2006_TWR_low.pdf.

Researchers for the True Wealth report surveyed 165 Ultra High Net Worth (UHNW) individuals, those whose assets are over $10.