Participatory Planning
The following may be of interest -- Jim Devine Original message I am interested in some of the brief comments that have been made recently on participatory economic planning "from the bottom up" in the context of a reconstituted socialism. I would like to make one empirical observation. I did some investigation of the Yugoslav planning system in 1987 which was based on enterprise and local community plans which were integrated at the commune and republic level and then at the national levle. Reconciliation was then attempted and the results sent back down to the lower planning levels where plans were adjusted and the process repeated (i.e. iterative procedures). Unfortunately, for the 5 year plans, the procedure took more than five years so that the plan was never completed until after the planning period was over. It was not really suprising, therefore, that the plan goals were never achieved. IMHO, the model of democratic participatory planning at the micro level is an unattainable, utopian dream. (This does not mean that I am either opposed to macro planning or participatory democracy/socialism -- which I am). Paul Phillips, Economics, University of Manitoba, Winnipeg, Manitoba. [EMAIL PROTECTED]
Participatory Planning
This is in response to Allin Cottrell and Chris Barrett's response to my original posting on the Yugoslav planning experience. Cottrell (I admit I have not read their book) does not seem to be describing what I mean by "participatory planning", which was a political process involving people right down to the workers' council level. It can, of course, be facilitated by computers and algorithms, but how do you incorporate in this the local farmers milk co-op who, when told that the plan can not accommodate 5000 extra hectolitres of milk a month then have to meet to decide what else to produce (butter, alfalfa, veal) over the next planning period? This can't be done instantaneously or else the whole concept of participatory planning doesn't mean very much. Chris Barrett's comment I concede -- except this is not economic planning in the sense we normally refer to the term in reference to socialist economies. Indeed, his point is well within my comment -- I believe it is possible to have participatory planning within a more macro economic policy planning which sets out "market" parameters. I use quotation marks because the market then is not the unconstrained capitalist market but the directed, regulated market that includes the value constraints incorporating the more global macro planning mechanism. (See Branko Horvat) I think Herb Gintis' comment is close to what I am trying to convey. Have a participatorily planned day! Paul Phillips, Univeristy of Manitoba
Kinky running
Tom Weisskopf asked what would explain the fact that, despite the lower cost of producing Nikes etc., the price hasn't fallen and monopoloy profits arebeing made despite potential competition. One wonders if this does not fit very nicely into Sweezy's kinked (oligopoly) demand curve where, despite falling marginal costs, prices in the oligopoly sector are retained to prevent price competition. The hiring of Jordan et al. merely ensures that Nikes and their oligopolistic rivals have a *different* product from no-name competitors. Paul Phillips, U of Manitoba
Roger Douglas
Pen-lers, I am scheduled to debate with Roger Douglas of (in)famous New Zealand neo-conservatism next Tuesday (April 5) here at the University of Manitoba. He is making the rounds here in Canada, I believe under the auspices of an ultra-right think tank, spouting monetarism, privatization, deregulation etc. He also claims, of course, a certain credibility because of his experience as finance minister in the last NZ "Labour" (sic) government. Now I know, in general, the NZ history, but not the details and the history of the NZ economy since his predations. Can I ask anybody on the list who is familiar with his views and evidence/argument to counter them to send me their comments asap. Paul Phillips [EMAIL PROTECTED]
Imperialism
Why is it that Americans feel that their (perverted?) values are superior to all others that they feel they must use the cyberspace to defeat what Canadians feel are the proper values of equity and access to just treatment? The recent comments on the invasion of the Canadian system of justice disgusts me. American freedom of speech seems to equate with freedom of inquisition! Paul Phillips U of Manitoba
worker participation
Can anyone give me some leads. A colleague who is looking at the impact of work er participation (profit sharing, esop, worker involvement ect.) on productivity wants to know if there are any national (comparative) surveys of the extent of worker part- icipation and othe forms of involvement in economic decision making. If anyone can give me leads as to any references on these points, I would appreciate it. Paul Phillips, [EMAIL PROTECTED]
Bosnia
This is a response to Nathan Newman's posting: After having spent the last eight years researching, studying and teaching in and about Yugoslavia and its constituent parts, I find the kind of gut reaction of Nathan and others to the events in Bosnia to be frustrating. I find it particularly frustrating to hear the call for "pro-intervention" when it was German and US intervention in organizing and promoting the breakup of Yugoslavia on ethnic grounds that started the bloodshed in the first place, and it has been US intervention recently that has discouraged peaceful settlement. If Nathan or any others think that Bosnia can be put back together under a Muslim dominated government, which appears to be the current US goal, they have been smoking some of the most power halucigens currently known. The fact is, once the US, Germany, the EC and the UN encouraged and facilitated the breakup of Yugoslavia on ethnic grounds *without any guarantees to the protection of minorities* the fate of Bosnia was sealed. We all knew it, foreign journalists knew it, and the German and American state departments knew it -- but refused to accept it. They thought they could win one more victory in the cold war by destroying the Serbs who had the temerity to vote for the retention of a socialist (communist) government. The fact is, the Milosevic government was a bulwark against the much more nationalist partie, the truly fascist parties, or the right, in particularly the Serbian Radical party of Sesel which has its own militias fighting in Bosnia. I could go on at length, and will if there is any demand from the network. (As an economist, my supply responds to demand). With sadness for the loss of a country I had come to love. Paul Phillips, Univerity of Manitoba, [EMAIL PROTECTED]
Bosnia
Pen-ners Since my response to Nathan elicitated not only a considerable response, and several requests for elaboration, but also unsolicited responses for additional information and at response to a private communication that was not posted to this network, I am goaded (prompted, flattered) to respond at length. But, before you hit the del key, I will respond like "hire-purchase" agreements, in installments. (My dog needs to go for a walk before I can finish this post otherwise). First, my comment that western countries (the US in particular should avoid intervention in Bosnia since they have done enough damage already. Some people rejected this view. Let me first quote from Sean Gervasi "Germany, US, and the Yugoslav Crisis" _Covert Action_ Winer 1992-93. Yugoslavia has for some time been the target of a covert policy waged by the West and its allies, primarily Germany, the United States, Britain, Turkey, and Saudi Arabia, as well as by Iran, to divide Yugoslavia into its ethnic components, dismantle it, and eventually recolonize it." (p. 41) If you still have any doubt, read the article and the US state department documents that support it and then tell me that the US and Germany did not have the dismemberment of Yugoslavia *on ethnic lines at the expense of Serbia* long before the crisis arrived. Secondly, the actions of Germany and the US (supported by the EC after being blackmailed by Germany) are in contravention of the 1975 Helsinki agreement that guaranteed the post-war national boundaries of Europe (not the ethnic boundaries of sub-national units). The US and Germany apparently see themselves as above international agreement and treaty -- depending on their convenience. Thirdly, the Yugoslav constittution proved the *obligation* of the Yugoslav army to protect the unity and territoriality of Yugoslavia. Therefore, it had the constitutional obligation to prevent the breakaway of Slovenia, Croatia and Bosnia despite the international interference of the US and Germany. When it did so the US, Germany and the UN (under US/German domination) objected and in the case of Bosnia forced the Yugoslav army to withdraw -- leaving the irregulars and the militias of the right-wing neo-fascists to represent Serbian interests and prevent incursions on Serbian interests and properties. Then, under the pressures from north America and Europe and on the basis of highly biased reports (I will go into that in my nest post) the UN intervened -- led first by Canada. All you doubters should read General McKenzie's biographical account of that period. (It is called _Peacemaker_). The first "atrocity" committed in the subsequent period was, in his account, the ambush of the peaceful withdrawel of Yugoslav troups by the Bosnian (Muslim) army. Nor was this the first atrocity practiced on the Serbs -- ethnic clensing had already been practiced in Croatia against the resident Serb population, long before whatever happened in Bosnia (This is not an apology for subsequent Serb atrocities -- it is merely to point out that the press accounts that Serbs are responsibly, and solely responsible, for atrocities or even the initiators of atrocities is factually wrong. As a final point in this first post, why did the US army fight the South when it declared unilateral independence? Obviously, if the UN had been in existence, Britain would have sent in its Navy to defeat the North since it had no right to defend the integrity of the US. MY god I hate hypocrisy! If you want more? Paul Phillips
Bosnia-4
Pen-ners, This is about reporting and its effects on perceptions of what is really going on in Bosnia. But first a footnote to yesterdays post on the effect of US intervention in Bosnia. This is a short quote from Paul Koring's article in todays _Globe and Mail_ "The statement by British Lieutenant-Gerneral Sir Michael Rose, the UN's Bosnian commander, that the air strikes were solely to protect peacekeepers seems little more than a fig leaf to hid a vastly changed international posture that can no longer sustain the pretence of UN impartiality The danger is that limited Western intervention will ruin the prospects for a wider peace settlement but allow existing front lines to harden first into ceasefire lines and eventually into new boundaries. (which would) leave Bosnia unworkable as a patchwork of miserable enclaves and surrounded cities. The smouldering inequities of such a settlement would, perha;s in a few years, rekindle the next Balkan war." It should be noted that Koring has generally taken an anti-Serb stance. Now as to the media distortion of what has been going on. This account is taken from Minneapolis Star Tribune (Dec 17, 1993) which was originaly taken from _Foreign Policy_ , a journal publised by the Carnegie Endowment for International Peace. I will paraphase for brevity. Despite the apparent overwhelming evidence of Serb "grave offenses" the Serbs have always claimed that the evidence of grave offenses against Serbs has been covered up in the media and the Serbs have been denied the right to present their side of the case. Peter Brock, the author of the artical goes on to document the flagrant misinformation that was spread by the western media. Including: 1. pictures of the damage in Vukovar being used on western TV to be a picture of damage to Dubrovnik 2. BBC film of an ailing, elderly " Bosnian Muslim porisoner-or-war in a Serb concentration camp" being a Yugoslav Army prisoner-of-war in a Muslim concentration camp. 3. reports of Muslim children killed by Bus shooting turning out to be Serbian children 4. Newsweek photos of "serbian atrocities in Bosnia" being the same photos ov Serb victims of Croatian atrocities in Vukovar a year earlier 5.CNN repots of massacres of Muslims which turned out to be massacres of Serbs (CNN did not correct its stories) 6. NYT picturs of croats being killed by "Serb attacts" were actually Croats who had been killed by Muslim attacks 7. the most famous picture of the amaciated "muslim" prisoner of war in a prison camptwas in fact a Serb who was imprisoned for looting and, according to his sister in Vienna, looked emaciated because he suffered from TB. and so on. What about the reports of widespread rape etc. UN commision on human rights report (Feb 10, 1993) mentioned a figure of 2,400 victims -- including Muslims, Croats and Serbs though the biggest number had been Muslims while "Amnesty International and the International Committee of the Red Cross concurrently declared that all sides were committing atrocities and rape." What has not been reported widely is either the atrocities, ethnic cleansing of Serbs, rapes of Serb women, the number of Serb refugees in Serbia resulting from ethnic cleasing, the accounts of Serbs, including children, who were having operations (including amputations, etc.) in Serbia without anesthetic because of the embargo which, while supposed to allow food and medicine in, has in fact delayed or prevented medicine and anesthic from arriving. Let me conclude this sorry tale with Brock's conclusion: "In the wake of the negligence and pack journalism that have distorted the cover a distored the coverage of the Yugoslav civil war to date, the media would be well-advised to gaze into their own mirrors and consider their dubious records. At some point, historians or an official international investigation will determine the true culpability of all the actors in the Yugoslav tragedy. But one of those actors is the media itself. Let me also add that as academics we also have an obligation to become properly informed and not be stampeded into supporting US capital's goals on the basis of distorted media propaganda not backed by the facts. Tomorrow, I will address the claim that Serbs are the aggressors, have seized all this territory, and peace will only reward aggression. In search of a balanced response, Paul Phillips
Bosnia-5
Pen-ners, A short post to explain the relative territorial distributions in Bosnia. At the time of the unilateral declaration of independence by the Muslim led government, Serbs and Yugoslavs represented just under 40 per cent of the population, but they inhabited approximately 60 per cent of the land. The reason for this is that the Serbs were disporportionately in the poorer agricultural areas while the Muslims and Croats were more concentrated in the urban and more developed areas. This dates back to the medieval Ottoman rule period under the feudal system. In order to retain feudal lands, it was required that the lords convert to the Muslim religion. Thus the landed aristocracy, if you can call them that, became Muslims while the peasants retained their Orthodox religion. However, under the Ottoman land tenure system, fiefs were largely a form of allocation of taxing ability and the lords were not necessarily, or indeed primarily tied to the land -- and hence were more urban. At the present time, the Bosnian Serbs control about 70 per cent of the land area -- i.e. an additional 10 per cent. During the last negotiations that came close to agreement, the Serbs agreed to accept a division amounting to I think it was 52 per cent -- i.e. a reduction in both the population coverage and of the area they now control. As well, almost all the major industrial centres and developed areas would be included either in the Muslim or the Croatian republics. (Sorry I can't lay my hands on the exact municipalities at this moment but I have them somewhere.) I intend to take up some of the points that my postings have engendered, but I will do so as my last post on the subject. However, I can't let one factual matter pass since I think it represents the kind of attempt to diminish my argument by claiming I made a factual error. I think it was Barkley who corrected me by saying to the effect that I had used the term "Bosnia and Herzegovin" and he said it should be Bosnia-Herzegovina. In fact, he is wrong. About three weeks ago I was watching news reports from Sarajevo supplied by Bosnian television. In the corner of the screen was the logo "BiH". What does the "i" stand for? In Serbo-Croat, "i" is "and". But perhaps the Bosnians don"t know the name of their republic. I rest my case. Paul Phillips
NZ
The most comprehensive analysis of the ECA and the attack on New Zealand labour that I have seen is a long (240 page ms) manuscript by Ellen Dannin who responded to my earlier request for information for my debate with Douglas. (That should read 140 page, not 240 page). (We Can't Overcome? Labour Law Reform and the Unions in New Zealand".) If Ellen is on the net, let me just say that I haven't finished reading it yet, but what an eyeopener. As a sidebar, I would be interested in recent developments in OZ ( if things are going that well -- what has happened to Hewson -- we get virtually no press reportage here. And what of Bronnie?) See ya, mate Paul Paul Phillips, [EMAIL PROTECTED]
Job opening
The following job has opened up (somewhat late in the game) here
at the University of Manitoba in the Department of economics, a
department that is committed to "methodological pluralism" and welcomes
applications from economists of all stripes. The official announcement
reads:
The Department of Economics invites applications for a full-time probationary ap
pointment at As
probationary appointment at Assistant Professor rank in the area of
Environmental Economics and the Economics of Sustainable Development
beginning 1 August 1994. The successful applicant must have a Ph.D.
in economics with a stron theoretical and/or policy orientation and have
demonstrated competence in teaching at the undergraduate and graduate
levels and research. The successful applicant will be expected to
develop a program of courses in Environmental Economics and the
Economics of Sustainable Development and to take advantage of the
presence of the International Institute for Sustainable Development
in Winnipeg and the Natural Resources Institute at the University of
Manitoba. Salary will be commensurate with experience and qualifications.
Applications with curriculum vitae, and three letters of reference shoul
should be sent by 15 July 1994 to Professor John Loxley, Head,
Department of Economics, University of Manitoba, Winnipeg,
Manitoba R3T 2N2.
The announcement goes on to point out that we are an equal opportunity
employer, Canadian citizens and permanent residents get first shot,
the university is a smoke-free environment ("save for specially designated
areas) etc.
HOWEVER, this position is funded by the employment equity fund which
means we must staff it with someone who fits into the underrepresented
groups which in Canada are legally defined as Women, Aboriginals,
Visible minorities, and the Handicapped. I perhaps may point out
that the position was created by the resignation of a female staff
member who accepted a position elsewhere. Our department is,
unfortunately, overly male despite years of trying to rectify this.
If you are interested, please e-mail John Loxley AS SOON AS POSSIBLE
as we must make a decision quickly if we are to staff the position by
September.
The address is: [EMAIL PROTECTED]
If you want more information, please e-mail me at:
[EMAIL PROTECTED]
Paul Phillips
Oscar
Sam Lanfraco worries that it is -4F outside -- here it is -24C outside. Wither the Weather -- Sydney Australia, burning up in plus 40C, Europe washing away in rain, Manitoba freezing in -20s and -30s C -- whatever happened to global warming. Paul Phillips, Economics, Manitoba
Sacks
Anthony D'Costa commented recently on the failure of orthodox economists to recognize the importance of institutions in the failure of the IMF project and Jeffrey Sachs departure from Russia. It was interesting this morning to hear a debate on CBC between Sachs and a Russian economist (I didn't catch his name) who is now teaching at York. In any case, the upshot of it all was that Sacks was still maintaining that the only problem was that the "stabilization" plan was given up too soon and not allowed long enough to work. He also basically said that you can not have a transition to a market economy with democratic political institutions. Perhaps, on this he is correct. Paul Phillips, Manitoba
Participatory Planning
The following may be of interest -- Jim Devine Original message I am interested in some of the brief comments that have been made recently on participatory economic planning "from the bottom up" in the context of a reconstituted socialism. I would like to make one empirical observation. I did some investigation of the Yugoslav planning system in 1987 which was based on enterprise and local community plans which were integrated at the commune and republic level and then at the national levle. Reconciliation was then attempted and the results sent back down to the lower planning levels where plans were adjusted and the process repeated (i.e. iterative procedures). Unfortunately, for the 5 year plans, the procedure took more than five years so that the plan was never completed until after the planning period was over. It was not really suprising, therefore, that the plan goals were never achieved. IMHO, the model of democratic participatory planning at the micro level is an unattainable, utopian dream. (This does not mean that I am either opposed to macro planning or participatory democracy/socialism -- which I am). Paul Phillips, Economics, University of Manitoba, Winnipeg, Manitoba. [EMAIL PROTECTED]
Participatory Planning
This is in response to Allin Cottrell and Chris Barrett's response to my original posting on the Yugoslav planning experience. Cottrell (I admit I have not read their book) does not seem to be describing what I mean by "participatory planning", which was a political process involving people right down to the workers' council level. It can, of course, be facilitated by computers and algorithms, but how do you incorporate in this the local farmers milk co-op who, when told that the plan can not accommodate 5000 extra hectolitres of milk a month then have to meet to decide what else to produce (butter, alfalfa, veal) over the next planning period? This can't be done instantaneously or else the whole concept of participatory planning doesn't mean very much. Chris Barrett's comment I concede -- except this is not economic planning in the sense we normally refer to the term in reference to socialist economies. Indeed, his point is well within my comment -- I believe it is possible to have participatory planning within a more macro economic policy planning which sets out "market" parameters. I use quotation marks because the market then is not the unconstrained capitalist market but the directed, regulated market that includes the value constraints incorporating the more global macro planning mechanism. (See Branko Horvat) I think Herb Gintis' comment is close to what I am trying to convey. Have a participatorily planned day! Paul Phillips, Univeristy of Manitoba
Kinky running
Tom Weisskopf asked what would explain the fact that, despite the lower cost of producing Nikes etc., the price hasn't fallen and monopoloy profits arebeing made despite potential competition. One wonders if this does not fit very nicely into Sweezy's kinked (oligopoly) demand curve where, despite falling marginal costs, prices in the oligopoly sector are retained to prevent price competition. The hiring of Jordan et al. merely ensures that Nikes and their oligopolistic rivals have a *different* product from no-name competitors. Paul Phillips, U of Manitoba
[PEN-L:3610] toys et al.
Oh Tavis, you bring out the worst in me. I should point out that we boycott US toys for Christmas presents for our grandchildren -- in particular the products from Disney which we consider the worst of all producers. In relative terms, we consider these products the bottom of the line -- below those produced in China ( because at least the Americans should know better). But, hey Bill, we make as many of our gifts as we can for the ]kids, sew cloths, build toys, etc. It not only keeps us in touch with our granchildren (in an artisanal way), it gives us great pride in our craftsmanship while using up left-over materials and wood. And to all, best wishes for peace and tranquility in the new year! Paul Phillips
[PEN-L:3631] Mixed messages
Pen-llers, I it just me -- or is everone getting long messages about right wing populism on the net? "Government is bad, the necessity of reducing government expenditures and taxes, etc -- and all of that sh__. I this what this net is about, in which case is it time for me to sign off? or what? Please inform? .. Paul Phillips
[PEN-L:3895] papal economics
Following from Doug's comments, I would like to relate a short anecdote: Shortly after I joined the economics faculty at the University of Manitoba, I ran for union rep for our faculty constituency which, at that time, was composed of the Economics Department and the Department of Religious Studies. I came second to a Mennonite Minister who was a prominent member of the Religious Studies department. Shortly afterward, however, he became head of his department which made him ineligible to be "shop steward" and hence I, having polled second in the election, was appointed as the new union rep. Many in the university wondered at the organization of the constituency that included economics and religious studies until it was pointed out that there was a strong affinity of thought -- both were based on faith and a belief in the divine hand! Paul Phillips, Economics, University of Manitoba
[PEN-L:4030] unit labour cost
Pen-lers what is the best, readily available source for US unit labour costs (real) 1980-1993 -- or does anyone have the figures handy? Paul Phillips, University of Manitoba, [EMAIL PROTECTED]
[PEN-L:4040] ULC
Thanks to all who responded to my request for infor re unit labour costs. Paul Phillips, University of Manitoba
[PEN-L:4151] Cuba
Aprapos of Sid Sniad's comments/post on Cuba, what ever happened to the proposal that surfaced on the pen-l some time ago that those of us interested contribute $100 to a Cuba assistance fund that would be redeemable in a couple of years in tourist/travel expenses? paul phillips
[PEN-L:5895] Medicare
A short respose to Shawgi Tell on Canadian medicare. 1st, there are difficulties, primarily with reduction in funding by the Federal government (though the provinces are not blameless here). 2nd, there was a great need for reform in the system since it discouraged _pre_ventative medicine in favour of crisis intervention medicine and it encouraged high cost institutional care rather than home care and other alternatives. 3rs, there is a real bias toward capital intensive hospital care in our system -- a bias that is expensive and, in medical terms, inefficient. The problem is that these probems can not be addressed easily at the federal level which can only dictate the level of funding. Furthermore, the real escalation of costs has been in the cost of drugs that have skyrocketed since Canada gave in to American pressure and extended the patent protection to international drug companies such that the cost of drugs now exceeds the cost of physician services in Canada. In order to dealwith this problem, we will probably have to cancel the Can-US free trade agreement. This may be a necessary precondition of providing affordable health care in Canada -- and probably the US as well. Nevertheless, Shawgi Tell's analysis is symplistic and does little to help us save medicare in Canada. On the line for health care, Paul Phillips, Economics, University of Manitoba
[PEN-L:6070] re: rethinking overdetermination
I am a little suprised at a kind of a-historicism and cultural insensitivity of Bill and Doug with respect to both classical music (in particular opera) and fold music a la Seeger et al. With respect to opera, Verdi's music was considered so politically dangerous by the elite that he was heavily censored on a number of occasions by the political authorities. Case in point was the original version of Un Ballo in Maschera (Masked Ball) which involved the murder of royalty in Sweden -- he was forced to change it to a murder of a politician in Boston if I remember correctly -- with the bad guys named Sam and Tom. He was, himself, politically active being elected a senator after the unification of Italy as a liberal though he resigned because he did not like political life. However, his songs for the freedom of enslaved (read political) peoples were extremely powerful and extremely popular with the common people and a rallying cry against political despotism. Two pieces, in particular, became quite famous for their appeal to the masses, the chorus of the oppressed from McBeth, but most particularly, the chorus of the Hebrew slaves from Nabucco. It was the anthem of the revolutionary movement in Italy and when Verdi died, his funeral procession was lined with hundreds of thousands of working Italians who all new and sang it as the procession passed by (Va pensiero!). If you have ever heard it or sung it, it really 'swings' and gives one goosebumps. It is still so popular that Nana Mouskouri wrote an upbeat 'freedom' version of it and released it on one of her most recent "Classique" album. I heard her sing it at a sold-out concert a few years ago in Winnipeg -- and the people at the concert were not 'the elite' but mainly working-class people. So a great deal of that music can, and still does, move common people. Another case in point, at the local folk-music, jazz and local rock performance centre, each year near easter, they sponsor a "sing-along" Handel's Messiah. The place is packed and, believe me, not with the hoi poloi -- though the conductor is usually the conductor of the Ballet co. By the way, one of the most recent popular CDs released in Winnipeg is a jazz trio, featuring the piano jazz of the conductor of the Winnipeg Symphony orchestra. Now as to folk music. Bill is a little young to remember, but for many of us the Weavers were what woke us up to political action. And I can remember marching in the aldermaston anti-bomb marches in London in the early 1960s with 44-50,000 people singing "ban the bomb forever more" which was originally based on a Welsh children's hymn "Calon Lan" and taken by Welsh miners to the US where it became both a white gospel song and, in turn, the miners union song, "union miner". Over the last few years I have sung with both the local opera company and with the Winnipeg labour choir, a choir put together orignally to celebrate the 75th anniversary of the Winnipeg General Strike of 1919. When we sang at one union function and ended with the labour anthem "solidarity forever", the labour audience jumped to their feet their fists in the air and sang along, some with tears running down their cheeks. So don't tell me that kind of music doesn't have the power to inspire and to bring emotion to people, including a lot of young people. At the winnipeg folk festival this year there were 30,000 people -- a hell of a lot of them teen agers. An when a Celtic bank started a fast number, there would be a thousand of them dancing in the grass. So don't tell me it doesn't swing either. By the way, if it makes any difference, one of my favourite performers is Bruce Springsteen. Have any of you listened to his latest, "The Ghost of Tom Joad". Time to go listen to some music. Paul Phillips, Economics, University of Manitoba
[PEN-L:6599] re: Big Mac Attack
On most occassions I agree with Doug. But now I am confused. Within the last couple of weeks two empty blocks at the end of my block have been cleared and new construction begun. One, is to construct a new McDonalds outlet -- the other to construct a new Wendy's" outlet. Now I shouldn't let personal preferences dictate but I have never ever liked any McDonalds product. (When I visit my grandchildren I always give them the option, any restaurant except McDonalds) But I realize as an economist that they are the market leader. (God knows why). Now Doug is arguing that they are competitive? I find this quite ludicrous. There is oligopistic competition ( go read Galbraith) but it should probably be better described as rivalry rather than competition which,for better or worse, has become typified in neoclassical economics. Once one accepts a non-comptetive product model (and labour model), the whole edifice of neoclassical minimum wage analysis becomes a crock of ... Why are we even bothering?
[PEN-L:7205] pomo and opera
Maggie, Are you really saying that when you really found out what the pomos were saying that you gave up reading them entirely? Don't blame you, but the music is still beautiful! Paul
[PEN-L:7941] Cuba
I, like many others on the list, were someone taken aback by Louis' outrageous reaction to what to me seemed to be a very important and interesting question posed by Peter. Nor did I take Peter's question to be some sort of Hayekian theoretical response to Louis narrative of events in Cuba, but rather a practical question, what was the role of central planning and the market in Cuban economy and how is the central planning function made operational. Indeed, for economists interested in policy in socialist, or potential socialist, economies, these are important issues that have been under debate for most of this century. While obviously, they have become more important since the demise of the Stalinist command system and the renewed interest in market socialism, they have been present since the debate over the NEP in the 1920s. I, for one, would like to see some debate on this issue -- and some description of the planning mechanism in Cuba -- preferably after the next week (as many people will have signed off for the holidays, including myself). In some of the discussions I have read recently, planning in a market socialist system should (an can?) only be indicative planning. Others, hold to the view that only the capital market need be comprehensively planned (a la Lange). As I understand what is happening in the foodmarkets of Cuba today, basic subsistence levels are planned and distributed outside of the market, surplus to these needs distributed by the market. In any case, I hope to visit Cuba in the relatively near future and wonder if anyone has any contacts among economists in or around Havana who speak English and might be will to spend a few hours with a visiting economist interested exactly in this issue -- how much market and how much plan, and how is plan implemented. Someone who wants to know (really Louis!) Paul Phillips, Economics, University of Manitoba
[PEN-L:7811] Serbian Crisis
Just a quick response to Barkley and Sid. According to local news reports, the workers did not support some union leaders' calls to join the demonstrations, which doesn't surprise me very much. In the interviews with the workers, they were more concerned with work and wages (and a fear of losing their jobs) than they were with the political basis of the demonstrations. As to the dominant faction in the demonstrations, in all the pictures in the newspapers here, the dominate face on the signs the protesters are carrying is that of Vuk Draskovic, the Serbian ultranationalist leader. Some other were Serbian Orthodox Church posters. I did not mean to imply that the US was directly involved in the organization of the original demonstrations, though since they have occurred the US has obviously been backing the opposition with threats to the Milosevic government of economic sanctions etc. (Interestingly, when similar numbers of Canadian workers carried off demonstrations in Toronto and Hamilton protesting neo-liberal economic oppression on the poor and the public in Canada, the US pretended it didn't even notice. Shades of Milosevic). What I meant is that the US has been carrying on a campaign of destabilization agains Yugoslavia, past and present, for 6 or 7 years and will not giveup until it has a captive, rightwing government in place. Milosevic, whatever his faults, is not a US puppet. Paul Phillips, Economics, University of Manitoba
[PEN-L:7812] Stiglitz to WB
Doug writes: are the probems of the third world the result of information asymetry? Yea, Doug: They know more about the US than the US does about them. Paul Phillips, Economics, University of Manitoba
[PEN-L:8173] Long Waves -- and a better question
It seems to me that this whole discussion is taking place around a very limited understanding of long wave/swing theory, of which Schumpeter's model is only one (of many) theoretical variants. First, there is the implication in this stream that there is some form of cyclical nature to this phenomena (which by the way is developed statistically in some detail and with impressive econometric evidence in van Duijn's book, _The Long Wave in Economic Life_) but there are two views on that. One is that the long wave is sinisoidal (i.e. wave-like) implying that the upswing is a consequence of the downswing; the other that it is sigmoidal, implying that each wave has a unique initiating factor. The first, for instance, is implicit in the Social Structure of Accumulation model where institutional change is endogeous, the second in people like Mandel and the French Regulationists where change is exogenous, or at least not determinate in the model but determined by war, autonomous technological change, etc. Models have been developed for technological change -- e.g. the "septic tank" model that requires the buildup of a minimum quantum of investment inducing opportunities to promote a "fountain" of investment. Others that deal with investment in infrastructure that, using purely mathematical models, produces 'waves' of economic acitivity (e.g. Forrester). The SSA model utilizes the delays in the adjustment o institutions for the periodization of the long wave phenomena. In fact, the Schumpeterian explanation is one of the weaker models of long-waves, though it can be utilized quite well to explain long-wave development cycles/swings. There is a host of theoretical models, some of the best being developed by our late and greatly lamented colleague, David Gordon. Since I have taught a graduate seminar in Long Wave, Social Structure and Regulation Theory, I would be willing to share my reading list with anyone really interested. But, be forwarned, it is long and may take some time before I can send it. To Doug and Barkley, I think you should move beyond the very limited Schumpeter model and look at a lot of the other models and explanations of long waves in economic activity. If nothing else, it makes great heuristic tools/ Paul Paul Phillips, University College, University of Manitoba.
[PEN-L:8266]
([EMAIL PROTECTED] [132.241.3.10]) by for [EMAIL PROTECTED]; Thu, 16 Jan 1997 20:48:16 -0600 (CST) by pitbull.ecst.csuchico.edu (8.8.4/8.8.4) with internal id SAA03881; Thu, 16 Jan 1997 18:48:10 -0800 (PST) Date: Thu, 16 Jan 1997 18:48:10 -0800 (PST) From: Mail Delivery Subsystem [EMAIL PROTECTED] To: PHILLPS boundary="SAA03881.853469290/pitbull.ecst.csuchico.edu" Subject: Returned mail: User unknown Auto-Submitted: auto-generated (failure) This is a MIME-encapsulated message --SAA03881.853469290/pitbull.ecst.csuchico.edu The original message was received at Thu, 16 Jan 1997 18:48:09 -0800 (PST) from hircismus.net.CSUChico.EDU [204.119.194.10] - The following addresses had permanent fatal errors - [EMAIL PROTECTED] (expanded from: [EMAIL PROTECTED]) - Transcript of session follows - ... while talking to spam.ecst.csuchico.edu.: RCPT To:[EMAIL PROTECTED] 550 [EMAIL PROTECTED]... User unknown 550 [EMAIL PROTECTED]... User unknown --SAA03881.853469290/pitbull.ecst.csuchico.edu Reporting-MTA: dns; pitbull.ecst.csuchico.edu Received-From-MTA: DNS; hircismus.net.CSUChico.EDU Arrival-Date: Thu, 16 Jan 1997 18:48:09 -0800 (PST) Final-Recipient: RFC822; [EMAIL PROTECTED] Action: failed Remote-MTA: DNS; spam.ecst.csuchico.edu Last-Attempt-Date: Thu, 16 Jan 1997 18:48:10 -0800 (PST) --SAA03881.853469290/pitbull.ecst.csuchico.edu Return-Path: [EMAIL PROTECTED] id SAA03879 for [EMAIL PROTECTED]; Thu, 16 Jan 1997 18:48:09 - From: [EMAIL PROTECTED] ([EMAIL PROTECTED] [130.179.16.47]) by for [EMAIL PROTECTED]; Thu, 16 Jan 1997 20:48:00 -0600 ( Date:Thu, 16 Jan 97 20:01 CST To: [EMAIL PROTECTED] OMDear Pen-lers, As many of you know, there is in preparation the Encyclopaedia of Political Economy (EPE) under the general editorship of Phil Ohara at Curtin University in Perth Australia which involves quite a number on this list and also PKT. This major volume is to be published by Routledge. Unfortunately, (for various reasons) there are still a number of entries that do not have authors and as the publishing deadline is fast approaching, Phil is seeking writers and asked me to post the list of items wanting authors to this list. Now, from the discussion on this list, I know there are experts here that could write these entries in an evening, or who know who can. I appeal to them to e-mail Phil at [EMAIL PROTECTED] and offer your expertise. Paul Phillips 51. Entries in Need of Writers (as of 16 Jan 97) 53. 54. Business Cycles: Major Contemporary Themes [2000 words] 55. 56. Work, labor and Production: Major Contemporary Themes [2000 words] 57. Unions [1400 words] 58. 59. Increasing Returns to Scale [1500 words] 60. Verdoorn's Law [1200 words] 61. Okun's Law [1200 words] 62. Capital Reversing [1500 words] 63. Rate of Return Controversy [1000 words] 64. 65. Methodology: Major Contemporary Themes [2000 words] 66. Methodology: History of in PE [1700 words] PAUSE: 67. Foundationalism and Anti-Foundationalism in PE [1200] 68. International Network for Economic Methodology [400 words] 69. 70. Environmental Ecological PE: History Nature of [1700 words] 71. Environmental Accounting [1200 words] 72. Quality of Life [1 500 words] 73. 74. New Institutionalism [1400 words] 75. Social Control of Business [1200 words] 76. Centralised Private Sector Planning System [1400 words] 77. 78. Finance Capital [1000] 79. Financial Innovation [1500 words] 80. Crime [1500 words] 81. Justice [1400] 82. Rent Seeking and Vested Interests [1400 words] 83. Overhead Costs (J.M. Clark)[1200] 84. Conference of Socialist Economists [1000 words] 85. 86. Please do let me know if you are interested, or can suggest 87. possible writers. They would have to be written by mid-late 88. February at the latest. 89. PAUSE: 90. 91. 92. = 93. 94. Phillip O'Hara, Department of Economics 95. Curtin University of Technology 96. GPO Box U1987, Perth. 6001 Australia 97. email: [EMAIL PROTECTED] 98. Fax: +61-9-351-3026 99. Tel: +61-9-351-7761 (work - message machine) 100.: 451-2618 (home) --SAA03881.853469290/pitbull.ecst.csuchico.edu--
[PEN-L:8473] UnemploymentNAIRU etc.
I am having a little difficulty believing I am on a 'progressive' economics network and yet reading the stuff that is being posted. 1. during the war (2nd WW) the unemployment rate fell to around 1% without any structural and frictional constraints but within the framework of a strict f (that should be) fiscal and monetary policy framework. So it is not the economic constraints that determine the rate of unemployment, but the political (class power) constraints. 2. In the post-war studies, the Phillips curve analysis gave an approximate trade-off of 3-4% inflation for 3-5% unemployment. What has changed? What is the great structural change that caused this tradeoff to jump to this new, mythical, NAIRU (or NRU) of which there is nothing natural except the gullibility of the population and the culcability of the polititians. 3. The dual (segmented) labour market analysis is so much more sophisticated and complex than the version given here that I weep for our profession. It is frustrating to see such simplistic first-year neoclassical analysis passing off as so-called radical analysis. Get with it! Paul Phillips, Economics, University of Manitoba
[PEN-L:8481]
Dear Pen-lers: Phil O'Hara, who is in the final phase of editing the encyclopedia of political economy, needs some help. He is teaching a subject he has never taught before - International Economics 400 at Honors level - and in the light of the enormous burden of the epe needs some help with possible references and course outlines that may be of help. Anything you might be able to send him would be much appreciated. Any topics or references which you think might help students understand the world economy or the international economy at honours level would be useful. He was thinking of including some material on Kaldor's Laws (BOP constraint; economies of scale; cumulative causation); business cycles and waves at the international level; international political economy issues; economic policy within the world context; maybe exchange rates; Kaleckian models for the world capitalist economy? He is hoping to include quite a bit of heterodox material (maybe even some work on development and the environment from a world context). Anything you could suggest or offer would be very helpful to him and especially the epe project! His details are as follows: Email address: [EMAIL PROTECTED] Phil O'Hara, Department of Economics, Curtin University, GPO Box U1987, Perth, Australia 6001. Telephone: +61-9-351-7761 (work) +61-9-451-2618 (home) Fax: +61-9-351-3026 = === Phillip O'Hara, Department of Economics Curtin University of Technology GPO Box U1987, Perth. 6001 Australia email: [EMAIL PROTECTED] Fax: +61-9-351-3026 Tel: +61-9-351-7761 (work - message machine) : 451-2618 (home) === Encyclopedia of Political Economy === Entries in Need of Writers -- Business Cycles: Major Contemporary Themes [2000 words] Schumpeterian Political Economy: Major Cont. Themes [2000 words] International Political Economy: History [1700 words] Endogenous Growth and Cycles [1400 words] Rate of Return Controversy in Sraffian PE [1000 words] Methodology: History of in PE [1700 words] Foundationalism and Anti-Foundationalism in PE [1200] International Network for Economic Methodology [400 words] Environmental Accounting [1200 words] Social Control of Business [1200 words] Centralised Private Sector Planning System [1400 words] Financial Innovation [1500 words] Justice [1400] Conference of Socialist Economists [1000 words] Please do let me know if you are interested, or can suggest possible writers. They would have to be written by late February at the latest.
[PEN-L:9719] Globalization
Pen-lers, I have had some enquiries by a member of the general public about a number of issues relating to corporations, the environment and globalization. Specifically, he asked "if you knew of a single useful source of information on the negative effects of globalization (a scientific paper or even a thorough magazine article would be fine.)" I promised to post his request on the list and ask for a suggested reading list that would be accessible to the intelligent lay person. Suggestions? Paul Phillips, Economics, University of Manitoba. [EMAIL PROTECTED]
[PEN-L:9495] Geometric mean CPI
Can anyone tell me simply how the geometric mean CPI is calculated. I know how the Laspeyres is computed but have not come accross the geometric calculation. Paul Phillips, Economics, University of Manitoba.
[PEN-L:8939] Re: Cuba
Bill Burgess writes: they insist on the right to continue to profit wherever they like, including in Cuba where they have the advantage of no US competition. This is exactly what Jesse Helms has been saying and the justification for the Helms-Burton legislation that I, and the Canadian government, has been opposing. And I think Bill is wrong, very wrong and that the propagation of this view hurts Cuba and Canada. First, as I mentioned in my diary of the Cuba visit, I went down on an aircraft and returned on an aircraft that included at least two delegations of Canadians, funded by the Canadian government, one in medicine, the other in technical education. I took books down to add to a collection that had been started by our University. All of this was public aid and, in 2 of the 3 cases, funded by the Canadian government. As anybody who knows us knows, I am no great fan of Lloyd Axworthy (though we have appeared on the same program/ platform on occassion) but his support for technical and other aid to Cuba (his 14 points) is admirable and I don't think entirely motivated by imperialist greed as Burgess suggests. I think it is very destructive of Burgess to suggest that Canada's support of Cuba's right to self-determination is based on corporate self-interest. As indicated, this is Helms' position. But I think it is also quite incorrect. Canada may not support the revolution, but our position has always been the right for the Cubans to make their own decision. Paul Phillips, Economics, University of Manitoba
[PEN-L:8935] Cuba
Blair, Perhaps I was being a little extreme, but then trying to starve into submission 10 million people, depriving the sick of medicines etc., seems to me to be pretty extreme imperialism. Paul Phillips
[PEN-L:8919] Marilyn Waring
I have used the Waring video in my classes, in particular Women and the Canadian Economy, very effectively. It is very good on the issue of the degrading of women's contribution to the economy and *as a result*, the degredation of the environment. But it is shallow on the question of capitalism as the cause of the problem and her environmentalism is very "Tory" -- the old golden pastoral age of sheep and dung. In fact she was here promoting her most recent book a couple of weeks ago ( I missed her as I was in Cuba) but my students who attended on my recomendation were not impressed -- she had reduced all her analysis to shit (dung). Within limits, therefore, her video is useful. But it is no substitute for analysis. Paul Phillips
[PEN-L:8917] Cuba
I would like to thank Shawgi for posting Fidel's speech and the Granma article on the net. I would also like to point out, in furtherence of his previous posting about Walmart's decision to take Cuban made PJ's out of their Canadian stores, that the company under Canadian pressure decided to sell Cuban PJs again but that now the American government is again trying to enforce US law in Canada by pressuring (prosecuting?) Walmart's American head office. This is the most intolerable form of American imperialism that I can imagine. It disgusts me that Americans put up with such clearly anti-humane behaviour on the part of their government. I suspect that one of the major reasons why Canada has continued to support Cuba is that we would like to have the guts to stand up to the American bully, but that since we don't, we will cheer on the little guy who has the courage to do so. If this is so, "Three cheers!". Paul Phillips, Economics, University of Manitoba
[PEN-L:8882] Re: Cuba
Bill, According to my figures, GDP for Canada in 1933 was 70.2% of GDP in 1929, a ~ 30% drop compared to the approx 50% drop in Cuba. If these figures are correct then the drop in Cuba was over 50% greater in Canada. Paul
[PEN-L:8871]
([EMAIL PROTECTED] [130.179.16.26]) by for [EMAIL PROTECTED]; Mon, 10 Mar 1997 10:21:53 -0600 (CST) From: Helen Osman [EMAIL PROTECTED] for [EMAIL PROTECTED]; Mon, 10 Mar 1997 10:21:51 -0600 (CST) Subject: Cuba visit(long) To: phillps Date: Mon, 10 Mar 1997 10:21:51 -0600 (CST) This is a fairly long digest of our recent visit to Cuba. I hope the purists on the list will find it neither too "artsy feely" no to non-analytical to be of interest. To Jim D., I will return to the NAIRU battleground as soon as I can recover from the blissful contentment of sun and ocean breezes, et al. Reflections on a Cuba Visit by Paul Phillips The Helms-Burton law in the US which penalizes foreign corporations conducting business in Cuba was the final incentive for my wife and I to take a short "sun holiday" in that beleaguered Carribean country during the University of Manitoba's February mid-term break. Relief from a brutal winter and exhausting work schedules was, of course, the prime motivation for "snow birding" to warmer climes but our choice of Cuba was also a political statement in opposition to the extra-territoriality of America's vindictive and punitive approach to Cuba. We had always wanted to visit Cuba, to see for ourselves what was happening in this small country that the US is so paranoid about and which has suffered so much economically from the collapse of the Soviet Union and the continuing US economic embargo. So we also combined a little business with pleasure by spending one day at the University of Matanzas, about 35 kilometers west of the main tourist resort strip of Varadarowhich is booming with construction of huge, grand tourist hotels, joint ventures with Spanish, Italian and Canadian partners. While at the University, we met with the Deans of the Physical Education Faculty and presented them with a promotional Spanish language video of the 1999 Pan American Games in Winnipeg. (Donna, my wife, is Manager of Communications for the Pan American Games.) We visited the Canadian Studies library at the University, an initiative that began at the University of Manitoba, and donated some books that we had brought with us; and we had an extended discussion with the head of the economics department about the state of the Cuban economy and its prospects. As well, as I had just finished a (co-authored) draft of the entry on "market socialism" for the forthcoming Encyclopaedia of Political Economy, I was interested in Cuba's experience with market oriented reforms designed to combat the crisis that the end of Soviet aid and the American embargo had engendered, a subject we also talked about. Obviously, one week's observation of daily life in Cuba and one day of conversations with Cuban economists does not an expert make, but nevertheless, I would like to share some observations and reflections on what I saw and learned. The Tourist Experience We flew from Toronto to Varadaro and then on to Havana by Cubana Airlines, the Cuban national carrier, in a Russian built Ilusyian aircraft. (Interestingly enough, it was smoother and much quieter than the DC 9 we had flown in from Winnipeg to Toronto.) The trip took an hour more than necessary because, being a Cuban airline, it could not fly through US airspace and had to fly east to the Atlantic, down the Atlantic coast, and then west to Cuba. This was just the first example of how US policy has not only added to the cost of Cuban business, but also has contributed to global ecological degradation by unnecessarily increasing fossil fuel consumption. From Havana, we were transported by modern (Japanese) minibus to Santa Maria del Mar 22 kilometers east of Havanawhere our hotel was located on a very beautiful and extensive stretch of Gulf beach. The hotel, built some 20 years ago, had seen better days but was clean and comfortable, everything (satellite TV, radio alarm, air conditioning, elevators) worked and the service was friendly and efficient. The food was plentiful and of good quality just boring. Cuban music, art and dance may be spicy and unique, but poor Cuba must have inherited her food genes from England, except perhaps for the beer and bread which were quite excellent. We stayed at Santa Maria because it was relatively close to Havana and we are inveterate urban prowlers when on holidays. The problem is how to get from the hotel to Havana. Public transport in Cuba has totally broken down, again the result of the American embargo and the lack of domestic supplies of petroleum, a commodity that Cuba had (prior to 1989) imported from the Soviet Union at what were, in effect, subsidized prices. Cuba, I was told, now produces about 25% of the oil it consumes and, with help from Canadian and European oil companies, hopes to increase domestic production through exploration and development. This Canadian and European assistance is, of course, one of the main
[PEN-L:8830] MA
Doug, 1 liner. What does MA stand for. Paul Paul Phillips, U of Manitoba
[PEN-L:8559] Nairu,etc.
(The Devine) Jim responded to my comments about the illogicality of heterodox economists even accepting NRU OR Nairu as the basis of macroeconomic debate by talking about shifts in the institutions governing the labour market and the effect that this can have on the trade-off between inflational and unemployment. Now, of course, no one can deny that institution change can improve or reduce the efficiency of the trade-off i.e. can shift the Phillips curve (though I reject the sexist and classist explanations for the shift offered by orthodox economists as explained in my last post). But Jim seems to ignore the whole point I was trying to make. Whether one is talking Nairu or NRU, you have to accept a VERTICAL PHILLIPS CURVE by definition. There is no trade-off. Nairu stands for Non-accellerating inflation rate of unemployment. i.e. below that unemployment rate inflation must continue to accelerate so that attempting to reduce that level of unemployment will automatically accelerate into runaway inflation until that Nairu rate of unem. is reestablished at which the rate of inflation will stabilize. That means you can not reduce unemployment through macro policy without first changing the institutions (destroying unions, capping wages, reducing minimum wages, UI payments, deregulating labour markets, etc., all the elements of the neo-con agenda.) This is what is so dangerous in accepting this approach. Now with Bill M's, my own, and someone else on the list that posted on this the "class stuggle rate of unemployment", this problem is averted because it isn't the rate of unemployment that is the determinant, but rather the rate of inflation acceptable to the capos which is also compable with the minimum rate of profits acceptable to the capos. It forces the debate onto not why wages and employment must be contained, but why profits and rentier income have accelerated to the point where unemployment has had to rise to keep wages down so that productivity gains can be expropriated virtually entirely by property. Paul Phillips, economics, University of Manitoba
[PEN-L:9158] Re: Slovenia
I think Barkley is quite correct about the relative success of the Slovenian economy. The unemployment rate peaked at 9.1 % (ILO definition) in 1993 and had fallen to 7.4 % by 1995, well below the German rate. GDP had recoved to about 97 % of the pre-breakup maximum by 1995 and real wages stood about 5% higher than the were in 1990 before the war. Inflation in 1996 was estimated at 10 % and the real growth rate at 3 %. Much of this is detailed in my article with Bogomil Ferfila in *Slovenija*, "The Slovene Economy: the First Five Years", Summer 1996. I am in the process of updating this article but existing trends seem to be being followed. Re the property/ownership situation, the majority of the economy is now privatized but the privatization scheme has left control largely still in the hands of the workers/unions -- so much so that the managers have been complaining that nothing has changed. I hope to get to Slovenia next year to do a survey of managers to find out if that is still the case. Barkley is also correct about FDI. Of the more than 1500 privatization programs received by the Slovene Agency for Restructuring and Privatization by April 1995, only three involved foreign participation. Re the analysis of Yugoslavia outlined by Louis, it certainly doesn't appear much like what I saw in Yugoslavia over the last 10 or so years. Ferfila and I give a much different interpretation in our book *The Rise and Fall of the Third Way: Yugoslavia 1945-1991*. In fact, one of the causes we cite for the collapse of the country was the imposition of utopian schemes by the top theoreticians (e.g. Kardelj in particular) rather than working through praxis to modify the system. However, the whole argument is too long to present here. In short, I would agree with Barkley that both its success and its failure makes Slovenia a useful (though flawed) model for a feasible socialist alternative. Nasvidinje Paul Phillips, Economics, University of Manitoba
[PEN-L:9208] Slovenian/Yugoslavia
Dear friends, After Louis' last piece of venom that attacked, not only me, but my acquaitances that may (or may not) agree with me, but who have never heard of Louis Proyet, I must withdraw from further discussion on pen-l. I will not unsubscribe, for that would deprive me of the pearls of Doug and Jim and Michael et al., but it appears that in my area of interest, rational discussion is not possible without L P's irrational and incomprehensible attacks. It is unfortunate that a so called socialist hasn't the decency to engage argument and rather resort to ad hominum attack and personal ridicule, even when there is not the slightest material reason for doing so. I would like to continue the stream Slovenia/Yugoslavia with Barkley, Paul, Jim and all those actually interested, but it appears to be impossible on pen-l because of Louis. You are all (except Louis) invited to continue the stream personally off list if I can figure how to do it. Nasvidinje, Paul Phillips, economics, University of Manitoba
[PEN-L:9356] Re: requiem for social democracy
Ken Hanley, in discussing the introduction of medicare in Saskatchewan in the early 1960s, called it a social democratic move but he did not think that the CCF referred to themselves as social democrats at that time. As it happens, I was leader of the young CCF on the Campus of the University of Saskatchewan in the year leading up to the medicare election. (I was leader of the opposition in the mock legislature, the premier of the government of the mock legislature was Roy Romanow, now premier of Saskatchewan and leader of the NDP. At that time he was leader of NatCreCon, an actual registered party in Saskatchewan but for purposes of the university elections, a kind of Rhinoserous Party.) We did refer to ourselves as social democrats and used it more or less interchangeably with democratic socialist. Those more to the left were democratic socialist, those more to the right, social democrats though, to the best of my memory where one drew the line was self designated. Again, if I remember correctly, the Senior party thought we were too far left and often refused the designation socialist for the softer social democrat. I am what I call a "veteran of the Saskatchewan Civil War", the battle for medicare which was won in the streets and not directly in the legislature. When the doctors went out on strike to oppose single-payer, socialized insurance, we took to the streets handing out flyers, knocking on doors and demonstrating. Despite some consessions to the original proposals (e.g. opting out of the direct payment, restrictions on community clinics, etc.), we won the basic principle and, though not revolutionary, the political agenda in Canada in the area of medical and health services has never been the same since, though a concerted attack is underway led by multinational medical corporations and the neoliberals in Canada (Liberals, Conservtives and Reform), to reverse this substantial reform. Only the NDP (and the seperatist BQ) is mounting any campaign to save health care from a two-tier, semi- privatized system. In that regard, I think it is worth fighting for the NDP during election years, and becoming the left-wing non-parliamentary opposition in intra-election years. This has been the strategy of Cho!ces, the social justice coalition in Manitoba which has pioneered the development of alterntive budgets at the Municipal, Provincial and Federal levels where the broad coalition of social action groups, labour and us socialists/ social democrats/left liberals academics develop through democratic consultation and consensus an alterntive budget which is released a day or two before the official budget. (By the way this was done in Saskatchewan this year, before the NDP budget.) One problem we have is that this year, the Alterntive Federal Budget developed by CHo!ces and the CCPA (Cdn. Centre for Policy Alternatives) with hundreds of social action groups and unions accross the country, has been more or less completely adopted by the national NDP as its election budget. Kind of difficult getting respectable :-) Nasvidinje, Paul Phillips, Economics, University of Manitoba
[PEN-L:9235] co-ops and worker owned firms
Jim, I came across another article that deals with the theory of the worker owned firm, B. Horvat, "The Theory of the Worker- Managed Firm RevisiteJ of Comparative Economics, I, 1986. Paul
[PEN-L:9233] co-ops and unemployment
Jim, I know that Horvat has written many articles oposing the Ward-Vanek model and I have them somewhere, but where is the question. One reference I do have is "The Illyrian Firm: An Alternative View: a Rejoinder" *Economic Analysis and Workers" self Management*, 1986. I do think that anyone who has the slightest interest in market socialism, workers self-management, etc. should read Horvat's 1982 book *The Political Economy of Socialism*, ( M.E. Sharpe). I think this is one of the best visions of an alternative society -- a utopia many may denounce -- but a vision yet worth persuining. Paul Phillips, Economics, University of Manitoba. Nasvidinnje!
[PEN-L:9204] Slovenia/Yugoslavia
Yes Jim, there is too much on our plate. Unfortunately, marking essays and setting finals etc. does not give me time to respond to all the discussion but, a couple of points: a) no Louis, I was not talking about Bruno Hzladj, whom I don't know but Dimitar Mircev whom I have known for 10 years. b) in my original studies in Yugoslavia in 1987, the rate of income per capita Slovenia/Kosova was 5:1, at the end of the war, 15:1. i.e. there was considerable convergence until the interregional transfer of investment funds began to slow up. c) it is Horvat who rails against the Ward/Vanek model as empirically untrue -- in fact just the opposite. d) the problem with the guestworkers was not the cutoff of jobs, but the decline in remittances and the problem that added to the debt crisis already set off by American and German monetarism. e) Yugoslav trade before the collapse was approximately equally divided between the Communist countries and the west, but to pay the interest on the debt that was entirely in western currencies, it had to raise a surplus in the west. I deal with this in my February 1990 article in Monthly Review. So much more to respond to but I don't have time now. Paul Phillips, Economics, University of Manitoba
[PEN-L:9186] re:Slovenia
Unfortunately our e-mail has been down for the past couple of days so I have not been able to respond to the Slovenia thread until now at which point it has gone off in several directions. Let me begin by quoting Branko Horvat in a private correspondence he sent me after I had sent him a long paper on the rise and problems of the yugo economy-- "as usual in Yugoslavia", he wrote, "it is not quite so simple." That was the jist of my response to Louis. Neither is the debt problem so simple. I did write upon this in an article in Monthly Review. I am not trying to impress anyone with quotes, just that I can't reproduce a decade of articles and analysis in a few short lines here. But in order to understand the foreign debt problem that developed in Yugoslavia in the 1980s, one has to understand the internal political (regional- enthnic) problems at the time that Tito was dying around 1980, and the structure of the banking institutions that resulted from the constitutional changes i the mid-seventies that -- and this is for Louis -- were motivated by Kardelj's utopian conception of the ideal Marxist state. Now I have a great deal of respect and appreciation for this utopia (Djilas' claim that it was his is, as far as I have been able to authenticate, absolute nonsense), but it led to a breakdown in rational economic planning which we try to illustrate in our book. The reason that I said I couldn't deal with it on Pen-l is that our argument/evidence is 120 pages which (obviously) I can't reproduce here. However, let me say one thing in defense of my "utopia". A year ago I took part in a workshop with Slovenian union shop stewards on how to maintain control of the work place -- through ownership and through trade union and political action. My presentation was on the threat to workers participation and control of the North American model. They were miles ahead of North American workers. If I can quote one business commentator "... the main reason for the attractiveness of internal subscripition [worker buyouts] lies basically in the sense of commitment that employees have to 'their' companies. Oviously, the majority of employed Slovene citizens consent to a property struct which assures the continuation of the existing [self] management structure without introducing major change." Boy! does that rile the apologists for neo-liberal capitalism!! In short, I think there are very good lessons from the Yugo experience, particularly in Slovenia, for socialists and marxists. Also, as my good friend, the Ambassador or Macedonia to Slovenion, points out, don't write off Macedonia. It is doing better than the western press ignores. Nasvidinje, Paul Phillips, Economics, University of Manitoba
[PEN-L:8562] Nairu, etc.
I beg to differ with Tom Walker but not with the basic point he makes -- that there is a need to modify, change, update etc. our institutions to keep up with social and technological change. If he looks carefully at what I said,however, it was to emphasize that the verticle Phillips curve acceptance (and the causes for it) clears the way for the neo-lib agenda which, in the absenc e of alternative institutional change only serves to hurt labour for the benefit of capital. Unfortunately for Tom's position, the Nairu/NRU analysis is based on neo-lib assumptions which makes favourable institutional change outside the pall of acceptable policy solutions. Paul Phillips, Economics, University of Manitoba
[PEN-L:9802] May Day
May I wish you all an affirmative May Day (a happy May Day would be a bit much). There are still so many out there that are suffering from the ravages of capitalism that they deserve our sympathy, but more than that, our organized help. At the moment we are battling the ravages of nature, the flood of the century. But when that battle is over, let us battle the deprivations of inequality, poverty and homelessness! Paul Phillips, Economics, University of Manitoba
[PEN-L:10219] War and Primitive Accumulation
In his section on primitive accumulation in volume one of Capital, Marx writes: "The public debt becomes one of the most powerful levers of pof primitive accumulation The destructive influence that it exercises on the condition of the wage-labourer concerns us less however, here, than the forcible expropriation, resulting from it, of peasants, artisans, and in a word, all elements of the lower middle-class." Somewhere, I have the recollection, that Marx linked the growth of public debt with wars (there is a passing reference in the above quoted section to "maritime trade and commercial wars" but nothing very substantive.) Does anyone recall if, and where, Marx links war with debt, with taxes transfering wealth from the workers and the middle-class to capital - i.e. as part of the process of primitive accumulation? Paul Phillips, Economics, University of Manitoba
[PEN-L:10165] Progressive web sites
Pen-l-ers, At a benefit dinner for Canadian Dimension the other night, I was asked by a retired United Church minister who is now part of a collective of clergy who publish a progressive newsletter on social issues, if I could give him the addresses of progressive web sites (specifically with regard to NZ, but also US, Canada, etc.) which he could monitor for up to date info and opinion of a progressive or radical nature. I mentioned Doug Henwood's and EPI's site but I didn't have the URPs handy. In any case, he wants to put together a listing of the most useful progressive web sites so I am asking all on the list to send me their selection of the best progressive web pages. (Remember, this is for laypersons and retired clergy, not professional economists or related.) If you don't think the list would be interested, send your suggestions to me directly at [EMAIL PROTECTED] If I get any response to this request and there is any interest, I will post the top 10 or 20 suggestions to Pen-l. Paul Phillips, Economics, University of Manitoba.
[PEN-L:9990] Feudal economic relations
I have some difficulty with Wojteck's association of feudal labour relations with labour abundance. I have always associated feudal (and other forms of 'unfree' labour) with labour shortage. to be blunt, the ruling class imposes 'unfree' labour bondage because 'free' labour is too expensive. for references see Evsey Domar, "The Causes of Slavery or Serfdom: a Hypothesis," *J of Ec History*, march 1970: or my article on the subject, "Land Tenure and Economic Development: a comparison of Upper and Lower Canada", *J of Canadian Studies*, May 1974. Nasvidinje, Paul Phillips, Economics, University College University of Manitoba
[PEN-L:10317] Bill Burgess Misinformation
A quick check of th World Fact Book shows that, of all the major industrial (G7 and OECD) countries, Canada has the lowest percent of military expenditure as % of GDP with one exception, Japan. (Canada, 1.6%: Japan 1.0 %). Perhaps this is not insignificant as I suggested in my post, but it is surely minimal and I would argue virtually a minimal level necessary for air-sea rescue, coastal and fishery servailance, and contribution to peace keeping. I gather from Bill's comments that he thinks that Canada's peace keeping efforts are "imperialistic". Well, perhaps he might make his point in one specific case or another, but I would like to see him defend this position in Cyprus, Bosnia and/ or Haiti. I am not a militarist (though I spent 5 years in the military), but I think a lot of the criticism of the military is a crock, based on misinformation on what they can, and do, do. Paul Phillips, Economics, University of Manitoba
[PEN-L:10371] Umbrage
But Tom, what you quote Alexa as saying is good social democratic stuff -- make the capitalist system work properly through redistribution, sound fiscal and monetary policy, and the provision of a secure social wage. You are criticizing her for not being a socialist. But the CCF abandoned any pretence of socialism with the Winnipeg declaration in 1956. This has been my point all along, you can criticize social democracy if you want on grounds that it won't deal with the problems of capitalism, but don't criticize a social democrat for being a social democrat and dealing with the problems as she sees fit. She has addressed the problems in the campaign (including the MAI), but you don't like her solutions. Within the context of what I think is possible in the present climate, I think the alterntive budget etc. are feasible, credible and would ease a lot of social pain. But a lot more will be needed in the long run to move to a socialist society of course. What I asked of you was what would you campaign credibly on that you think wouldbring about a socialist society? Paul Phillips, Economics, Manitoba
[PEN-L:10351] Umbrage
I apologize if I offended Tom by my somewhat immoderate response to his posting. For Sid's benefit, I will quote the original comment that prompted my frustrated response. Here in Canada, the social-democratic NDP abstains from even its own social-democratic, electoral politics in a vain attempt to be seen as a voice of moderation. The NDP appeal in the current election coes down to nostalgia for the 1970s -- a presumably brighter, happier, more innocent time. If you liked the Partridge Family, you'll love the NDP. The PF was "wholesome" psychedelia without drugs. The NDP is wholesome Keynesianism without fiscal crises. And there's the social democratic dilemma in a nutshell: it's not simply that social-democratic policy prescriptions are objectionable, it's that in order to be palatable to the "mainstream" they always have to be repackaged as even more innocuous than they are. Social democratic policies can never be innocuous enough, at least until they are completely vapid -- at which point, they are readily dismissed by "the mainstream" as vapid. Now Ken and Bill have responded to much of this and I don't want to repeat what has been said. But let me summarize my objections. 1. The NDP has tried to campaign on good solid issues -- jobs, health care, day care and social programs. It is the media and the right wing politicians that have hijacked the election campaign to stress "national unity" as a way of deflecting attention from the NDP's critique of the right-wing, deficit obsessed neoliberal program they are all advancing. As Alexa pointed out in frustration when she had a press conference of health care policy, they kept (that is the media kept) asking her about Manning's extremist, anti-Quebec views and ignoring the issue of health care. 2. The NDP's decision to accept that the Liberal's are highly likely to be returned is based on good solid electoral strategy. In the last election, the NDP was sandbagged by voters combining behind the Liberals to get rid of the hated conservatives. The Liberals ran as the left -- but when in power, they governed from the right (as they usually did) but to a more extreme right because of the lack of a left opposition. In this election, if voters are worried that the two extreme right parties (Conservatives and/or Reform) are going to win, then voters will again desert the NDP for the Liberals, allowing again for a centre right Liberal government pressured only from the extreme right with no even social democratic left influence in protecting the welfare state -- the erosion of which under the Liberals is the cause of rising poverty, particularly of children, the rise of a 2-tier health system, the decline in the social wage, etc. etc. No the Canadian welfare state, such as it is, is no utopia, no partridge family psychedelia, and the 70s no golden age, but they were still headed in the right direction, which we can't say now. Paul Phillips, Economics, University of Manitoba
[PEN-L:10325] Tom Walker's pronouncements
I find Walker's denounceations from on high of the NDP's current election platform and position within the on going debate to be both uninformed and counterproductive. As one of many economists across the country that was involved, to a greater or lesser extent, in developing the alternative federal budget (which the NDP nationally has virtually adopted), I am offended by Walker's ignorant attack on the policy that so many of economists and other representatives of non-goverment- tal and women's and labour groups developed. In short, he should do some of the work, or shut up. Paul Phillips, Economics, Manitoba.
[PEN-L:10259] Re War and Primitive Accumulation
Max, in his response to my request for references in Marx to war --- public debt --- exploitation of workers --- primitive accumulation implies disagreement with Marx and the relationship of war to public debt and defends public debt contracted to finance social services. I should point out my interest is not in the current situation (which is hardly one of primitive accumulation in any case.) In Canada today the military budget is miniscule and, thanks to the invaluable help the Canadian forces were in fighting our recent floods, I would hardly want to cut them any further. Furthermore, as a strong supporter of keynesian demand management, I would hardly want to cut spending on social programs at a time when unemployment is running at almost 10 per cent. My question was in reference to a research project I have under way about the impact of the 1st World War, in particular on how it was financed and the effect it had in consolidating industrial capitalism and creating a rentier class and promoting class conflict which broke out at the end of the war (Winnipeg General Strike in particular but also the farmers' revolt through the Progressive Party.) The Royal Commission on Dominion-Provincial Relations (1939) explictly blames the financing of the war for the emergence of class and regional conflicts but without any theoretical understanding or interpretation. What I am attempting to do is a reinterpretation of the accepted 'conservative' view of the importance of the war. Paul Phillips, Economics, University of Manitoba ps. Max, thanks for the reference to epn.org -- a very useful site for progressive and liberal web pages. For the rest of pen-l-ers, note that I have receive only 3 responses on suggestions of progressive web sites. No one else have any recommendations?
[PEN-L:12697] Privatizing Pensions
Pen-l-ers, I will be debating current proposals to reform the Canadian Pension Plan on TV tomorrow evening. The argument for 'reform' I believe is similar to that for privatizing the US social security system based on (inaccurate) claims that the present system is bankrupt, non-sustainable, etc. I am not worried but these arguments because they are based on factually wrong claims. However, other parts of the proposal involve increased funding of the CPP through the stockmarket purchases and a much higher degree of funding generally rather than 'pay-as-you-go'. Further, some of the support for this comes from extravagent claims of the huge success of the privatization of the Chilean pension system. Can pen-l-ers give me answers to the following three questions which I know have been addressed in one form or another on this list over the last few months. I need the info by tomorrow morning. 1) What are the arguments against stock market funding of basic social security pensions? 2 What was Keynes' objection to funding pension plans as opposed to 'pay-as-you-go' funding? 3 What is the downside of the Chilean pension privatization? Much thanks in advance, Paul Phillips, economics, Manitoba [EMAIL PROTECTED]
[PEN-L:12671] ethnic identification
I would have thought that the term "first nation" referred more to the collective groups (i.e. the tribal councils are refered to as "first nations" as in the Manitoba "Assembly of First Nations". Here I would think that the term aboriginal (rather than indiginous) is in common use to refer to all groups, treaty and non-treaty indian, metis, dene and inuit -- that is to individuals of aboriginal descent whether or not they are members of first nations. Paul Phillips, Economics, University of Manitoba
David Card's response
Some time ago (a year?) someone posted (Doug?) a response by David Card to the critique that two other economists had given to _Myth and Measurement_. Unfortunately, I did not save the response and now I have need of it to counter claims by a neo-right critique of minimum wages who is claiming that Card and Krueger's work has been discredited. I have tried going back into the Pen-l archives but haven't been able to find it. a. does anyone have it who could e-mail it to me? or b. does anyone remember exactly when it was posted or how I can find it in the Pen-l archives? Please respond to [EMAIL PROTECTED] Paul Phillips, Economics, University of Manitoba
David Card's Response
Thanks to all the pen-l-ers who responded to my request, particularly to Bill Lear who posted me Card's response. Paul Paul Phillips, Economics, University of Manitoba
Red vs Green
Max talks about the conflict between the coal miners and ecologists in the US. Here in Canada, there has been a major conflict between loggers and ecologists, particularly in BC where the forest industry is the key to the provincial economy. This has led to major problems for the NDP both electorally and in policy making. The NDP relies on the unions for both financial and electoral support but also on ecologist for support and election workers. The forest industry keeps yelling, if you protect old growth forests and oppose clear cutting you (the loggers) will lose your jobs. So vote Liberal (the right-wing party currently so you can keep your jobs. (or federally, vote for the unltra right Reform (sic) Party). As a result, the NDP government which has done more for the ecology (increased parks, introduced more forest restrictions, etc.) than any other jurisdiction in Canada, is teetering on the electoral edge, while still being roundly condemned by the environmentalist who would prefera right-wing ecological collapse to gradual improvement in forest practice. It is all very discouraging for us Red-Greens. Paul Phillips Economics, University of Manitoba
Re: Santa Fe
Just thought you might like to know, Krugman was on CBC national this morning explaining the Asian Crisis. He said it was all due to nepotism and corruption of Asian society. The nephew of a dictator will set up a bank or a company and everybody will lend to him because the loan is, in effect, government guaranteed. This led to a preponderance of bad loans that eventually came tumbling down. So there it is. No complexity at all! Paul Phillips, Economics, University of Manitoba
Brassed Off
For those of you who appreciated "the Full Monty", let me highly recommend another British film in the same genre -- "Brassed Off" about the closure of a coal pit and the performance of the collery band. It isn't quite as funny but it is more explicitly political. Paul Phillips, Economics, University of Manitoba
Re: green permits and taxes
Barkely and Robin, Correct me if I am off track here, but if permits are distributed free (based on some past pattern), or if they are initially priced below social cost, and then a tradeable permit market created, does this not act as a barrier to the entry of new firms who must buy up permits at full market price in order to produce? Of course, if permits had to be bought up every 6 mos or year, that would tend to equalize the capital cost in subsequent periods but it would still be an extra entry cost for new firms. This would not be the case for taxes. Does this make sense? Paul Phillips, Economics, University of Manitoba
globaloney
Jim writes to the effect that US corporations only served the US market up to the 1930s. I suggest he look at Mira Wilkins work on the MNC. American corporations began to invade Canada in the last decade of the 19th C. (See also Southard et al., Canadian American Business which was, if I remember correctly, was published in the 1930s.) The move into Canada was, in my opinion, an offshoot of the trust and merger movement. Having reached the limit of the US market, the new corporattions could only achieve a larger market by expanding to other countries. Given the communication and transportation limitations of the day, the most availble market was Canada and this was the period when the first major wave of foreign direct investment occured in Canada. Paul Phillips, Economics, University of Manitoba
US vs Europe
It has struck me somewhat odd in this exchange that nobody has mentioned Canada which shares a more European political system with the American geographical-class structure. I would suggest that the continued existence of a viable social democratic party and its regional electoral success at the provincial level in forming governments in almost half of the country is evidence that it is the anti-democratic constitution and government system that has ruled out any class-based or social democratic party. On the other hand, the third party status of the NDP and its predecessor, the CCF, would support the contention that the power of capital and the existence of an agricultural frontier has also created sectional divisions that frequently produced electoral divisions based not on class but region (regional populism) which, with a petit bourgeois base has been right-wing (often close to fascist) populism (e.g. social credit and the current Reform party.) Paul Phillips, Economics, University of Manitoba
US vs Europe
I don't know where Nathan Newman gets his Canadian political information from, but his post exhibits a great ignorance of Canadian politics, history and immigration experience. Unfortunately, I don't have the time to try to educate him at this time but perhaps some time in the future Paul Phillips, Economics, University of Manitoba
Yugoslavia and Market Socialism
I think a couple of weeks ago Barkley posted something about Yugoslavia and market socialism which prompted a spirited response from somebody that Yugoslav socialism was an 'oxymoron' because Yugoslavia was not democratic and therefore could not be socialist. Unfortunately, (as I indicated previously) I lost all my previous e-mail so if I am grossly misrepresenting some views posted to pen-l then I apologize in advance. However, I would like to put my vote of confidence behind Barkley, rather than his critics, who seem not to know much about went on in Yugoslavia in the 1970s and 1980s. When Tito came to power at the end of WWII he and the leadership of the JCP established a 'Stalinist' type state which lasted justed a few years before Jugoslavia broke with Stalin and began (after 1950) introducing worker self-management and democratizing both the workplace and decentralizing state powers to the republics and the autonomous regions like Kosovo and Vojvodina. Though there was never 'two-party' elections (sic) like there are in the US, there were multi-interest group elections at all levels particularly after the implementation of the new constitution in 1976. There were in fact multi-'parties' and the Communist Party was disbanded (to be replaced by the 'non-party' League of Communists.) Indeed, after the breakup, these various groups reorganized as political parties alternative to the growth of neo-liberal nationalist parties favoured by the US (at the expense of so many lives.) Indeed, I would argue that Jugoslavia came closer to establishing a truly democratic regime at both the industrial and political level than any other regime in modern European history. It failed both because of internal contradictions and external interventions. We have argued this all in our book _The Rise and Fall of the Third Way: Yugoslavia 1945-1991_ One may agree or disagree with our analysis, but to argue that Jugoslavia was some sort of anti-democratic, authoritarian offshoot of Stalinism and was not (at least) attempting socialism is the kind of bourgeois or crude-marxist crap that brings disrepute to scholarship on the left. Nasvidinje, Paul Phillips, Economics, University of Manitoba
barriers
Doug raises an interesting question. He is being charged $45 dollars for each Canadian$ cheque he clears. Now, of course, the cost of clearing those cheques (thanks to modern technology) approaches zero. So someone is ripping him (and many others of us) off. Why? And why do we accept it. What stops an independent (as suggested, I think by Maggie), from setting up shop in Canada, accepting those canadian cheques, converting them to international bank draughts or money orders -- if I remember right at approx 5$ max -- and transmitting them to the US. Have the monopoly banks become so powerful that they can prevent absolutely the market, imperfect as it is, from working even in a most primitive matter. In short, is there really a market in international money or have 'tansaction cost' completely destroyed the market except for the multi-big players? Paul Phillips, Economics, University of Manitoba
Chase Manhattan Responds
I don't know when Boddhisatva was last in Canada, but at least here in Winnipeg, the percentate of aboriginal peoples in population is approximately equal to the percentage of blacks in the american population -- and this does not include the peoples of east asian origin -- Filipinos, Vietnamese, Chinese -- nor the admittedly much smaller percentages of East and West Indians, African and Latinos, none of which would be classified as he does as 'white'. Indeed, in recent years the majority of immigrants to Canada has been 'non-European' while the highest fertility rate in the country has been among the aboriginals. So don't give us any of this guff about 'white Canada'. Paul Phillips, Economics, University of Manitoba
Kosovo
I have a proposal for Barkley: We invite leaders from the Serbs and from Kosovo to join us in a restaurant in Montreal for an evening with appropriate amounts of wine (and in my case seafood) and we will both guarantee peace -- at least for as long as the wine and seafood lasts. Do you accept the challenge? On a more academic level, let me point out some of the interesting dificulties. I have been involved in a research study of the effect of the privatization of social capital (and the move from 'worker self management' to capital direct management) on both how workers respond (and how output responds) and on the effect of legislated 'co-determination' on industrial relations in Slovenia. We now have interviews with approx 120 enterprises and union officials on the 'new regime' representing most of the major entorprises in Slovenia. I have recently received an invitation to from the respected (and independent) 'Institute of Economic Science" (Institut Ekonomski Nauka) to do such a study in Yugoslavia (Serbia and Cerna Gora) in conjuction with the national trade unions. But this relates back to Barkeley's message -- to what extent is American policy kjwilling to accept accedemic research -- or to what extent is it willing to confine 'research' to ideologically acceptable constraints.?
Peter Dorman
Peter, Could you please resend your e-mail. It got lost with a lot of other stuff with my e-mail problems. Paul Paul Phillips
Kosovo
Barkley, I can't remember where I read it -- perhaps Covert Action -- about the US cutting all aid to Yugoslavia in the late 1980s in an attempt to destabilize the country. The references sounded genuine and refered to State Department declassified documents if my memory serves me correctly. If I have time after exams and marking I will try to dig up the reference for you. Re the Albanian population in Kosovo: here are the figures up to 1986. 1921 Albanian population as % of Kosovo population = 63.8 1948 = 69.5 1971 = 73.7 1981 = 77.4 1986 = na Growth rate of population by ethnicity SFRY: 1953-60 1961-701971-80 Total14.9 10.69.0 Albanians25.6 29.9 30.0 Macedonians 19.6 15.0 11.5 Servs13.6 9.56.6 Croats 11.5 6.85.9 The high population growth rate (through natural increase) was held as responsible for the continuing relative poverty in Kosovo *despite* a transfer of development capital to the regions greater than anywhere else in Yugoslavia -- estimated (circa 1988) at US$ 1,450,000 daily. Paul Phillips, Economics, University of Manitoba
No Subject
Date:Sun, 29 Mar 98 16:39 LCL From:PHILLPS To: [EMAIL PROTECTED] Subject: Kosovo (corrected) I had trouble with my e-mail and the previous post was cut off and the last part garbled. So let me please correct it. But this relates back to Barkley's message. From what I have been able to find out from anecdotal evidence so far there has been little change in Yugoslavia from self-management institutions (though I don't know aabout the state of property relations.) I suspect that part of the American antipathy to Serbia is due to the lack of reforms in the economic system. Yet, our evidence is that it is (at least in part) the retention of much of the self- management institutions in Slovenia which has eased its transition without the gutwrenching declines that some of the other transitionary economies have experienced. If that is the case, then to what extent is American policy willing to accept that maintenance of some form of self-management and workers' control or will it require an abandonment of worker participation as an ideologically acceptable constraint before the US will abandon sanctions. What worries me is that when I was in Slovenia in December I attended a seminar with the US ambassador who was leaving to take up the Yugoslav Desk in Washington. In his talk he basically said, if I interpreted him correctly, that even Slovenia which 'had made great strides' had not liberalized (i.e. privatized) sufficiently to satisfy American goals -- that is, worker participation in management had to go! If that is the case, then one can understand the basic 'cold-war' mentallity that is driving US-Serb relations and the US intervention in Kosovo. Paul Phillips, Economics, University of Manitoba
Kosovo
For the most part I agree with Barkley on his comments on Kosovo but I would add a few considerations. 1. The most recent crackdown on Albanian separatists was a result of the killing of 4 (?) Serbian Police in an ambush. The police responded by raiding the headquarters of a faction of the Kosovo Liberation Army. One may argue that the scale of the response was inappropriate to the provocation, but I have heard little about the American sanctions on Britain for its military response to IRA terrorism (or the genocide by Suharto in East Timor.) It is obvious that the American response (and the British) is propelled by something other than principle, though as Barkely points out, what it is the makes the US and Albright so war-mongering, I am not sure. 2. It is abundantly clear that, if Kosovo was granted independence, it would immediately begin ethnically cleansing the region of Serbs. In fact, ever since I have been going there for 10 years, there have been (documented) examples of 'cleansing' done by the Albanians. 3. The 'poverty' of Kosovo is probably not as bad as Barkley intimates. Many Kosovan 'families' have networks of businesses inother parts of Yugoslavia (past and present). Eg. in Slovenia many of the fruit and vegtable stands, pastry shops and even sum of the pubs are run by Albanians (and owned by Albanians) who are obligated by family connections to remit part of their revenues to Kosovo. (i.e. a colleague friend told me that when he was in the army, an Albanian in his unit had to remit part of his salary to his 'family' back in Kosovo. The families ahve the same sort of extended nature and coersive (though not necessarily criminal) as the Sicilian families.) 4. The problem is almost sure to break out in Macedonia because of the inequality in birth rates between the Macedonians (Slavs) and the Albanian minority. At the present rates it will not be too many years before the Albanian population excees the Macedonian as in Kosovo. The Macedonians also fear ethnic cleansing. I was told a couple of years ago (by a Slovene) that the Macedonian government was exploring asking the Serbs to provide soldiers to police its border with Albania to prevent Albanian migration into Macedonia. I have no way of knowing whether or not it is true, but it does sound plausible. 5. What is the answer? I don't know -- but the US response is only making matters worse. Already it has brought to prominance and leadership the ulti-rightist and nationalist Voyslav (?) Seslj who makes Milosevic look like a civil rights worker. God save us from US foreign policy. Paul Phillips, Economics, University of Manitoba
Chase Manhattan responds
The Chase Manhattan response boggles the mind as Wojtek has noted. On reflection I have some advice to Doug that, rather than annex Canada (which has been the US response for over a century to the upstart pretentions that some other people on this continent have that they might prefer some other, more humane and democratic system than that in our neighbour to the south), all he really needs to do is take out a membership in a Canadian credit union, have his cheques deposited there, and then withdraw his money through a Credit Union (bank) card. You get the current exchange rate with only a 1 or 2 dollar service charge. And you can actually use your credit union card at the local bank machine of the Chase Manhattan bank! Oh, and about the annexation of Canada. I should note that the US citizens of the NorthWest Angle of the US on lake of the Woods are petitioning congress to secede and join Canada because of the rotten treatment they are getting from the US. I just hope the US Government gives them the same support in their seccession movement as it gives to the Kosovo terrorists. Paul Phillips, Economics, University of Manitoba.
[PEN-L:2288] NZ Experiment
The NZ experience is, unfortunately, contagious. What is interesting is that in Canada the process seems to have been modelled on the NZ experiment. First, a (perceived) centre left government gets elected on a moderate, proactive economic program, then manufactures a phony credit crisis (deficit, debt, bankrupcy -- wail, wail), - a 'crisis' orchestrated by the multinationals, the monetarist central bank and the department of finance and right-wing think tanks (sic) -- which can only be solved by cutting social programs, lowering taxes to the rich, privatizing public enterprise, and firing civil servants. The economic results are disasterous (more deficit, debt, bankrupcy, unemployment -- wail, wail, wail) so obviously, the cure is more cutting, slashing, destroying of programs and lives, etc. What is most disgusting is that this is consciously planned and orchestrated by business and the sychophantic right-wing ideologues, usually misidentified as economists. For a detailed account of the neo-liberalization of the Canadian Liberal Party (comparable to the NZ Labor Party) see Maude Barlow and Bruce Campbell, _Straight Through the Heart: How the Liberals Abandoned the Abandoned the Just Society_ (Toronto: Harper-Collins, 1995). Just as a footnote, it is interesting that the book was "printed and bound" in the United States. (Not approved for reading by the IMF). Paul Phillips, University of Manitoba
[PEN-L:2588] High Tech J
In the previous postings from Doug et al about the MLR progection of job opportunities, what they stressed was the 'shit' jobs that were projected to be created. To me, however, what is even more frightening is the list of jobs they (it) expects to be destroyed. This list must be doubly frightening for women -- the list of jobs to be destroyed are almost all the "better jobs" that women have. I note "Occupations with the largest job decline" Farmers -21% Typists and word processors -33% Bookkeeping, accounting, and auditing clerks- 8 Bank tellers - 27% Sewing machine operators - 26% Cleaners and servants, private household-22% Computer operators-38% Billing, posting, and calculating machine operators--67% Duplicating, mail, and other office machine operators -25% Textile draw-out and winding machine operators and tenders -25% If I am not totally confused, that means that 8 of the 10 job destruction categories are predominately "women's" jobs, many of them "better" jobs. This is totally frightening for what it means, if true, to the social structure of our emerging society. Do others read the same message from these projections? Paul Phillips, University of Manitoba
[PEN-L:2590] Canada-Chile joint TU Statement
As many of you might know, Canada is going ahead without the US to try to negotiate a "free trade" agreement with Chile. Today, the Canadian LabourCongres and the Central Unitaria de Trabajadores of Chile issued a joint satement calling for inclusing in any agreement of clauses "which would improve labour and environmental standars in any bilateral trade agreement betweentheir two countries." Thestatement came from CLC Prsident Bob White and CUT Presidnet Manuel Bustos. The purpose is to prevent erosion of social and environmental standards unlike the provisions of NAFTA. "In order to prevent the further erosion of social standards, the CLC and the CUT Chile want a bilateral trade agreement to include labour standars such as feedom of association and collective bargaining, enforceable standars which prevent child labour and require a minimum age of employment, and clauses on equal pay and discrimination. These social clauses are included in conventions Of the International Labour Organization." Who will give me what odds that either government will pay the slightest regards to human rights or international conventions? Paul Phillips, Economics, University of Manitoba.
[PEN-L:2607] womens wages
Of course Doug is right, women's average wages have been rising relative to men's, primarily, as Michael pointed out, because of the improved 'mix' of women's jobs. But what I was pointing to was that the projection is for relatively good jobs -- the 'middle' if you want -- for women to disappear over the next decade. The disappearing middle is compatible with both rising, falling, or for that matter, stable average wages. What wehave also noticed, however, at least in Canada (and I think in the US though I don't have the figures handy) is that since the '90 recession, the participation rate of women has fallen. If the absolute number of "women's jobs" declines, can we really expect that women will continue to improve their incomes relative to men? Or will they just drop out of the labour force? Paul Phillips, University of Manitoba
[PEN-L:2757] Phil O'Hara's address
The last mail I had from Phil (January 30, 1996) was [EMAIL PROTECTED]. I think this is the same address that Steve posted. Paul Phillips
[PEN-L:2858] Rousseau on property
I am afraid that my rather crude attempt at levity on this matter was taken rather too seriously than I intended by Justin. At the same time, there was a point behind it. I object to the idea that property rights are "granted" by the state. Indeed, I would argue (and this is the point of the quote from justice Bazalon) that the causation is the reverse -- the state was created to protect the rights of private property. The courts have merely given the stamp of legal protection to property rights claimed by those who have already accumulated property. This was the point of the quote of Proudhon and was in keeping with the "quotes of the day" from St. Thomas More and (help me out Peter), St. 'A'. And, to finish it off, my slogan "expropriate wealth" was in keeping with the belief, so strongly advance by Trond, and supported by Judaic teaching, in the necessity of a 'jubilee'. But, perhaps I missed something? Paul Phillips, University of Manitoba
[PEN-L:2872] property and brogas
I have to agree totally wil Leo Casey "The notion that property can be enforced as antything less than a civil right, that is, within the state, (!!!)is, quite simply, dead wrong." My point exactly. And for those of you who don't know about Brolgas (from Barkeley's post), here is the verse from my favourite song: "The pelican and the crane they came in from the plain, to amuse the company with a Higland fling; The dear old bandicoot played a tune apon his flute, and the native bears sat round them in a ring. The BROGA and the crow san a son of long ago, The frill-necked lizard listened with a smile, and the Emu standing near with his claw up to his ear, Said, "Funniest thing I've heard for quite a while." Ask Bill what a Broga looks like! (Steeve might be able to help?) Mishiveously, Paul, Paul Phillips, University of Manitoba
[PEN-L:3674] Graduate Schools in Sustainable Development
Pen-lers, I have a student -- a very good student -- who is looking for a university to do a graduate degree in. She is interested in a non-neoclassical approach to environmental economics and sustainable development. She has a particular interest in institutional economics as a framework for further theoretical work in this context. She asked me for advice as to where I would recommend she might apply to -- not necessarily this year, but next year when she finishes her honours degree. She is not limited to North America, only to English speaking institutions. Can some on the list give me suggestions of where she might consider applying? Thanks, Paul Phillips, Economics, University of Manitoba. [EMAIL PROTECTED]
[PEN-L:3246] Classics
At Manitoba we require history of thought at the honours level as a requirement for an honours degree. Anyone entering the PhD program is required either to have honours level history or thought and at least one course in economic history, or if the student doesn't have them on entry, must take one full year of history of thought and one full year of economic history. We, therefore, offer history of thought at the 4th year honours level every year, and a graduate course every other year. But then we also teach graduate and honours level theory courses in alternative macro (post Keynesian and Marxian) and alternative micro (Marxian and Neo-Ricardian). In all these various courses, the classics are read in the original. Paul Phillips, University of Manitoba
[PEN-L:3329] Bercuson
Ken Hanley posted a negative review of David Bercuson's work yesterday on the net. I would like to qualify somewhat this view. Bercuson did some quite excellent work early in his career. He worked with Kenneth McNaught,a well respected social democratic historian, in his PhD thesis on the Winnipeg General Strike. His book on the One Big Union _Fools and Wisemen_, though not without problems, is still a very good book. I contributed to his collection on Canadian federalism, more years ago than I want to mention, though I still think the volume is worth reading. (Hey, naked promotionism!). However, I think his more recent work is rightwing, nativist (in the worst sence) and anti-intellectual. I consider it rather sad to see the degeneration of a rather accomplished scholar to a kind of narrow "reformer". But then, I have been told that the whole history department at Calgary (devastated by cutbacks) has been reduced to a department of regimental military historians celebrating death and gore in the past, and ignoring society, past and present. In sorrow, Paul Phillips
[PEN-L:5033] Payroll taxes
I have been invited to do an article for the local newspaper on the pros and cons of payroll taxes and their effects on employment. Does anyone on the list have suggestions for studies, articles, etc. that they could recommend? Paul Phillips, University of Manitoba. [EMAIL PROTECTED]
[PEN-L:11221] on CEO Pay
I must admit I am a little suprised that Pen-l-ers would be debating this issue in terms of neoclassical marginal productivity. This is the equivalent of arguing, what is the marginal productivity of a mugger? (i.e. someone who has market power because of some non-market force.) The moment one moves to a non-neoclassic frameworke (as Jim D suggests) then the problem is "solved". There is a surplus distribution problem. This is not a market problem, but a power problem. (Why is it that non-neoclassical economists avoid the issue of power?) One can utilize rent theory to justify the resulting justification. But, if we were honest, that is really crap. Let us put it a different way, what is the mp of a crime king (and are CEOs really different?) And on a different stream, a colleague of mine posted a document documenting horrendous war crimes against the Unites States Government, specifically with regard to the use of biological warfare against Cuba. Yet, despite the level of despisity (is that a word) of the offense, not one member of this list from the US has responded. Comment? Paul Phillips, Economics, University of Manitoba
[PEN-L:10952]
Date:Wed, 18 Jun 97 09:59 LCL From:PHILLPS To: [EMAIL PROTECTED] Subject: Political Economy Programs In response to the falling off of enrollment in economics programs across Canada and at our university, some of us are pushing for the establishment of an alternative political economy stream. We have a strong contingent of politcal economists in the department and already offer courses in alternative macro (post keynsian/marxian and micro (neo-ricardian/ marxian as well as courses in Marxian economics and a number of institutional based courses. However, we still require our students to take calculus, econometrics, orthodox neoclassical micro and new-keynesian macro. What we have found is that a number of students -- including a disturbing proportion of our best students, are rejecting our honours and graduate programs because they feel that orthodox economics (applied mathematics) is basically irrelevant and becoming less and less marketable in the job market. The spate of articles recently in journals and in the Globe and Mail about the irrelevance of contemporary economics is increasingly being reflected in student attitudes, not to mention employers, politicians and the general public. This is the reason for our renewed interest in starting an alternative stream. This is all a prelude to a request: Could all of you who have polical economy programs at your university send me a brief outline including required courses, program requirements, graduate programs, etc., either by e-mail ([EMAIL PROTECTED] or by snail-mail at Paul Phillips Department of Economics, University College, University of Manitoba, Winnipeg, Manitoba, Canada. R3T 2M8 Thanks, Paul Paul Phillips
[PEN-L:11007]
Date:Mon, 23 Jun 97 16:58 LCL From:PHILLPS To: [EMAIL PROTECTED] Subject: Progressive Web Sites The URL for the Cyber Picket Line is Http://www.cf.ac.uk/ccin/union/ I have only had time to take a cursury look at it and it seems that some of the pages are still under construction (I checked the Slovenian link and the page came up blank for example.) However, as a source for world union links, it appears impressive. Paul Paul Phillips, University of Manitoba
[PEN-L:11307] re CEO's Incomes
In my attempt to be both brief and trenchant, I seem to have confused Gil with respect to my use of power as the determinant of executive incomes and the uselessness of the neoclassical framework to try to justify CEO's pay and perks. I will try to be more clear in the following elaboration. The concept of marginal productivity involves the addition of a single unit of the variable factor (which must be homogenous with previous units of the factor or it is impossible to sort out the productivity of what). Now, if we add a CEO to an existing firm, is his mp the total value of the firms output (on the assumption that the firm can not operate without a CEO)? Or is it the change in TP when a second CEO is added? (an obvious contradiction, [D? Or is it the change inTP when one CEO is replaced by another? This then would indicate that all CEO renumeration (subtracting opportunity wages) is a form of rent. (i.e. the rent to a natural or developed talent e.g. the return to Wayne Gretsky's hockey skills.) However, as Ricardo pointed out, rent is a result of price, not a cause of price. Since CEO's are in a position to influence price through market power, they are also in a position to some extent to determine their rents. However, this is rather tortuous analysis and the concept of marginal productivity is so unreal (we have gone through all this before) that neoclassical theory in this regard "has no clothes". In any case, all rents in the long run are a return to power, either in the form of ownership rights that include the right to restrict output, monopoly market power, power of the office to allocate rent, etc. To quote Marc Lavoie's comment on the importance of power: "...power is the ultimate objective of the firm: power over its environment, whether it be economic, social or political. 'Power is the ability of an individual or a group to impose its purpose on others'. (Galbraith, 1975, p. 108) The firm wants power over its suppliers, over its customers, over the government, over the kind of technology to be put in use THE NOTION OF POWER, EXCEPT WHEN RELATED TO THE CASE OF THE PURE MONOPOLY, HAS BEEN SYSTEMETICALLY IGNORED IN ECONOMICS, WITH THE EXCEPTION OF INSTITUTIONALISTS AND MARXISTS." (Lavoie, Foundations of Post-Keynesian Economic Analysis, pp 99-100) In short to deal with the issue of power in income distribution we have to leave the certai, equilibrium world of neoclassical economics and utilize the models of surplus (post-classical or heterodox) economics. It is here that the fundamental issue of power is joined. It Becomes the question of who has the power to distribute surplus. Why do American CEO's receive much greater incomes than do Japanese or European CEO's? Why do CEO's of private utilities receive greater remuneration than _the same_ CEO's received prior to privatization despite no change in productivity? Why do CEO's of profit losing firms get commensurate remuneration with those of profit making firms? (etc. etc.) none of which can be explained by mp theory or even with any reasonable application of neoclassical rent theory. However, they can all be explained within surplus models by modelling the sources and distribution of power (although not necessarily in an econometrically operational sense.) Many Marxists, for instance, talk about working class bargaining power over distributive shares in terms of the size or proportion of the reserve army of unemployed. This was the context in which I used the example of the mugger (which has been used on this list in the past in more or less this context.) The mugger does not produce any marginal product, but his power over the use of force allows him to redirect, to himself, part of the surplus in the form of the above subsistence wages of the muggee. I trust this makes sence of my earlier elliptical post. Paul Phillips, Economics, University of Manitoba
[PEN-L:11018] Re:K/Y ratios
Doug, But that was my point. If capital is expropriating human capital productivity, the K/Y ratio would be low, but so would wages -- but the HumanK/Y would be high, relative to Europe and Japan, n'est pas? Paul Paul Phillips, Economics, University of Manitoba
[PEN-L:11014] Apologies for Duplication
Sorry about the duplication of my last two posts. The e-mail was down here at my university for a day and when it came back up it did not send my posts. As a result I resent them and then the computer sent the others as well. Ah well !!! Paul Paul Phillips, Economics, University of Manitoba
[PEN-L:11001] Progressive Web Sites
The URL for the Cyber Picket Line is Http://www.cf.ac.uk/ccin/union/ I have only had time to take a cursury look at it and it seems that some of the pages are still under construction (I checked the Slovenian link and the page came up blank for example.) However, as a source for world union links, it appears impressive. Paul Paul Phillips, University of Manitoba
[PEN-L:11000] K/Y ratio
Doug, Could not there be an additional explanation in the so-called Leontieff paradox -- that the US exports labour intensive goods because the labour embodies a great deal of 'human capital'. That is, is it not possible that when human capital is added to physical capital, the K/Y ratio would rise both absolutely and relatively. This would also imply that capital is exploiting the workers investment in human capital as well. Paul Paul Phillips, University of Manitoba.
