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By  Dawn Paley & Isaac Oommen
Briarpatch Magazine
January/February 2010

The latest estimate of the cost of the Olympics to be borne by the public is $6.1 billion. This figure includes the expansion of the Sea-to-Sky Highway, the construction of the Richmond-Airport-Vancouver rail link, the expansion of the Vancouver Convention Centre, the construction of an athletes’ village and various venues, and a ballooning security budget. The two-week sporting event is set to be the most expensive entertainment spectacle in B.C.’s history.

As the tab continues to grow, costs that were at first unquestioned are coming under increased scrutiny by journalists, critics and boosters of the Games alike. To give an idea how the money may have been better spent, Isaac Oommen and Dawn Paley looked into what $6.1 billion would buy in five key areas of public policy.

1. Education

Since 2001, the B.C. Liberals have made substantial cuts to education. Class sizes have grown, rural schools have shut down, children and teens get less support, and hot lunch programs and after-school activities have been scrapped. University students have seen their tuition spike while debt forgiveness initiatives have been cancelled.

“Educators don’t have enough money to do proper assessments, class sizes are huge, school sports programs have been cut,” said Marla Renn, a high school teacher active with the Olympic Resistance Network. “If there’s ever an earthquake, many schools don’t have properly engineered structures to ensure they won’t fall down on top of everyone inside.”

For the cost of the Vancouver-Richmond-Airport rail link ($2.05 billion), the province could:

Carry out complete seismic upgrades to all B.C. schools. To date, $400 million of the total $1.5 billion investment necessary to carry out seismic upgrades has been allocated. ($1.1 billion)

Operate a community college the size of Vancouver Community College, offering 140 programs and serving 25,000 students, for one year. ($100 million)

Fund the annual operating budget for B.C. School Sports, an organization that coordinates extracurricular sporting activities for B.C. students. The government cancelled an annual $130,000 in funding to the group last fall. ($390,000)

Build five new, 1,000-student secondary schools in B.C. ($250 million)

Provide every student enrolled in B.C. public schools with a hot lunch every day for one school year. ($421.6 million)

2. Family services

“We need more family programs,” and less foster care, said Samantha Sam, an active member of the Power of Women group in Vancouver’s Downtown Eastside. There would be fewer children leaving reserves for Vancouver, says Sam, if there were better recreation facilities and programs on reserves.

A Canadian Centre for Policy Alternatives (CCPA) study released in September 2009 found that one in four single mothers in Canada live in poverty, as do 14 per cent of single elder women and almost one out of every 10 children. The statistics are much worse for Indigenous women and families. A full 25 per cent of Indigenous children in Canada are growing up below the poverty line and a staggering 30 per cent are in foster care, according to the Native Women’s Association of Canada.

For a bit more than the cost of the expansion of the Vancouver Convention Centre ($883 million) and the construction of the Athletes’ Village ($1.2 billion), the Canadian government could:

Provide for one year the minimum amount of additional funding First Nations communities across Canada need to safely care for their children in their homes and communities, according to CCPA calculations. ($130 million)

Introduce a universal child care system across Canada. According to the CCPA’s Alternative Federal Budget, funding towards child care provides at least a two-to-one economic return on investment. ($2.2 billion)

3. Housing

“When they give homes to people, that’s when I’ll be happy,” said Beatrice Starr, a member of the Power of Women group. “Not shelters but homes, where they can have their privacy and live like real human beings.” The 2008 Metro Vancouver homeless count tallied 2,660 individuals sleeping on the street, representing an increase of over 137 per cent since 2002. “If we spent one billion dollars on housing in Vancouver, we could end street homelessness and make significant upgrades to many of the city’s aging and decrepit single-room-occupancy hotels,” said Laura Track, Pivot Legal’s housing campaign lawyer.

For a little more than the cost of the Sea-to-Sky Highway expansion ($600 million), the city or province could:

Build 3,200 units of housing in Vancouver, according to the Inner Cities Inclusiveness report prepared in 2002. ($647 million)

4. Community welfare and the arts

Raising welfare rates from their unjustifiably low levels is a requirement for creating a more equitable society. In addition, programs that improve the lives of all members of our communities have faced serious funding cuts. Arts programs in B.C. are slated to lose 88 per cent of their funding over the next two years. Libraries are facing further cuts and some city parks are on the verge of being shut down.

For less than the cost of building the various Olympic venues ($580 million), the province could:

Raise welfare rates by 50 per cent in B.C. (2007 data) for one year ($500 million). Eliminating barriers to accessing welfare would cost an additional $200 million.

Restore core funding for B.C. artists ($17.3 million).

Restore city funding to the Vancouver Public Library and keep the Riley Park Branch of the Vancouver Public Library open ($1.4 million). The Riley Park Branch is marked for closure due to budgeting constraints.

Restore funding for Literacy BC’s online programs and coordinators ($1.7 million). “In 2005, the province of B.C announced the golden goal of becoming the most literate jurisdiction on the continent,” said Judy Cavanagh, Executive Director of Literacy BC, in a press release. “Just four years later, key literacy funding is being cut.”

5. Transportation

Thousands of transit riders in Vancouver can attest to the system’s underfunding. Pass-ups are common because buses are too full to pick up passengers, many areas lack night service, and travel from the suburbs can be difficult. “Metro Vancouver is 500 buses short of what we need today,” said Ian Bruce of the David Suzuki Foundation. “Buses are the workhorses of the public transit system, where 80 per cent of the riders take one bus during their commute.”

For the minimum cost of the security budget ($900 million), Metro Vancouver’s regional transportation authority could:

Acquire, operate and maintain 698 new buses, trolleys and community shuttles ($880 million). Such a purchase would bring the city in line with regional plans and greatly improve the quality of bus service in B.C.


The social issues that exist in Canada won’t be solved with money alone, but the examples above give an idea of just what could be bought for the cost of the 2010 Olympics. And as all levels of government continue to scale back social programs while generously funding wars and a two-week circus, anti-capitalist and anti-colonial resistance to the Games continues to grow.

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Illustration by Trevor Waurechen

Illustration by Trevor Waurechen

By Leslie Jermyn
Briarpatch Magazine
September/October 2009

Imagine opening your morning paper to read the following:

“The Minister of Human Resources announced today that she will be working with the provinces to lower university and college enrolments across the country. ‘We don’t think young Canadians should be wasting their time with post-secondary education,’ the Minister said. ‘It’s not good for them and it’s not good for the Canadian economy.’”

Odds are that your reaction would range from shock and outrage to simple gobsmacked disbelief. Education is widely and uncritically accepted as wholly good for everyone – students, their families, society as a whole, and the economy – and the higher you go up the schooling ladder, the better. But whenever something becomes so obvious that to think otherwise appears ridiculous, perhaps it’s time to take a second look.

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By Alethea Spiridon
Briarpatch Magazine
September/October 2009

Education costs money, but then so does ignorance.”
Sir Claus Moser

I n 1992, I was a high school graduate enrolled in studies at the University of Saskatchewan. Post-secondary education had never been a can-do for me – it was always a must-do. My family was entrenched in middle-class mediocrity, my dad a high school teacher and my mother a stay-at-home mom. The only means of financing an education was through government-funded student loans, but according to the loan assessor that year, my father, the sole breadwinner of the family, earned too much (at $45,000 per year) for me to qualify for assistance. He managed to fund that initial year; the next six years of study – four university, two college – were my responsibility. If I wanted the education I felt I needed to secure some kind of reasonable career and livelihood, I, like so many other students, would have to take on thousands of dollars in debt.

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Here’s how we could solve the credit crunch without giving anything to the banks.

By George Monbiot
The Guardian
January 20, 2009

In Russell Hoban’s novel Riddley Walker, the descendents of nuclear holocaust survivors seek amid the rubble the key to recovering their lost civilisation. They end up believing that the answer is to re-invent the atom bomb. I was reminded of this when I read the government’s new plans to save us from the credit crunch. It intends – at gob-smacking public expense – to persuade the banks to start lending again, at levels similar to those of 2007. Isn’t this what caused the problem in the first place? Is insane levels of lending really the solution to a crisis caused by insane levels of lending?

Yes, I know that without money there’s no business, and without business there are no jobs. I also know that most of the money in circulation is issued, through fractional reserve banking, in the form of debt. This means that you can’t solve one problem (a lack of money) without causing another (a mountain of debt). There must be a better way than this.

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1) Hold no debt (for most people this means renting)

2) Hold cash and cash equivalents (short term treasuries) under your own control

3) Don’t trust the banking system, deposit insurance or no deposit insurance

4) Sell equities, real estate, most bonds, commodities, collectibles (or short if you can afford to gamble)

5) Gain some control over the necessities of your own existence if you can afford it

6) Be prepared to work with others as that will give you far greater scope for resilience and security

7) If you have done all that and still have spare resources, consider precious metals as an insurance policy
8) Be worth more to your employer than he is paying you

9) Look after your health!

(For further explanation, check out The Automatic Earth, “How to build a lifeboat.”)

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Like gallows humour, only darker. Parental discretion is advised.

Watch video.

Get your war on. More episodes here.

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From today’s “debt rattle” on the blog Automatic Earth — a site worth visiting from time to time if you’re looking for a refreshingly downbeat perspective on the massive transfer of wealth currently underway:

With the Dow Jones safely tucked in back down below 9000, and European exchanges losing 7% on average, the positive overall global effect of an unprecedented transfer of public funds to the private sector, to the tune of some $4.5 trillion, has lasted about a day and a half.

The $4.5 trillion could have been used to the benefit of the people it rightfully belongs to, the same people who will soon desperately need every singly penny of it. Instead, it has been given away, and is now no longer available to help in what is cynically called “the real economy”.

And that is where the reason for today’s plunging stocks lies: the real economy, in the real world, where the real people live. Unfortunately for them, financial decisions are all taken by those who live in other universes, for whom the real world has no meaning without the world of finance, who are under the illusion that their multi-million bonuses exist for the good of the people.

A nice way of putting it is this: “If you spent $1 million per day from the day Jesus was born until Christmas 2008, you would have spent $733 billion”. In other words, you could have spent a million a day for 12,000 years, and still not get to the amount spent in the past 5 days.

Full article.

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jump

Here are three by financial economist and historian Michael Hudson to help guide you through the economic meltdown currently underway. Best taken with a stiff drink.

1. “The new road to serfdom: An illustrated guide to the coming real estate collapse.” Harper’s Magazine, May 2006.

2.  Michael Hudson and Nomi Prins on the AIG bailout. Democracy Now, Sept. 17, 2008.

The bailout is “the worst possible move, and it puts the class war back in business with a vengeance. Wall Street has been preparing for this for years, because every financial analyst knows that the debts can’t be paid. And the question that Wall Street has, if you’re going to take a gamble on bad debts that can’t be paid, how are you going to come out a winner? And there’s only one way of coming out a winner, and that’s to make the government bail you out.”

3.”The insanity of the $700 billion give-away.” CounterPunch, Sept. 29, 2008.

“No economy can keep up with the burden of debts growing at exponential rates faster than the economy itself is growing. No economy can grow at steady exponential rates; only debts can multiply in this way. That is why Mr. Paulson’s $700 billion giveaway to his Wall Street colleagues cannot work.

“What it can do is provide a one-time transfer of wealth to insiders who already have been playing the debt-credit system and siphoning off its predatory financial proceeds to themselves.”

The gist: today’s failed bail-out bill was a really, really bad idea that wouldn’t have worked anyway. The biggest danger now? That they’ll come up with something even worse.

The only workable solution is to write-down or forgive the bad debts and let the banks and investors eat it. That’s the only way “Main Street” is going to recover. But don’t hold your breath for Paulson to propose that.

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Two takes on the state of the union to our south:

1. The Extreme Reality Makeover Show

By Hank Stuever
Washington Post
July 29, 2008

Symbolic to our era like a sledgehammer to drywall, the biggest house that ABC’s “Extreme Makeover: Home Edition” ever made over — a sprawling, four-bedroom starter castle, a three-car garage mahal with a turret and all — has gone into foreclosure, in the ‘burbs south of Atlanta.

2. It’s a Class War, Stupid
Election season will be packed with distractions, but the real issue is becoming a matter of life and death

By Matt Taibbi
Rolling Stone
Jul 15, 2008

I am a single mother with a 9-year-old boy. To stay warm at night my son and I would pull off all the pillows from the couch and pile them on the kitchen floor. I’d hang a blanket from the kitchen doorway and we’d sleep right there on the floor. By February we ran out of wood and I burned my mother’s dining room furniture. I have no oil for hot water. We boil our water on the stove and pour it in the tub. I’d like to order one of your flags and hang it upside down at the capital building… we are certainly a country in distress.

— Letter from a single mother in a Vermont city, to Senator Bernie Sanders

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The slice-of-life radio documentary show This American Life has just put out a show on the U.S. housing/credit crisis. TIL does an excellent job of teasing out the complex causes and devastating consequences of the subprime disaster.

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