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Capitalism, Socialism And Energy Politics – Forbes

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Lately, the terms capitalism and socialism have been flying through the social ether, typically inappropriately or as misinterpretations, but mostly as perjoratives. To opponents, capitalism is considered greed-driven and heartless, socialism is seen as autocratic and ineffective. As many have pointed out, it is typical to use the term socialism mistakenly to attack social welfare projects (such as the New Deal), while capitalism wrongly stands in as a metaphor for human behavior (as if socialists aren’t greedy).

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Many of the people attacked as socialists are nothing like them: Barack Obama and Joe Biden have shown no particular tendency towards socialism, and many of the proposals coming from Progressive Democrats are merely about social welfare programs, such as pre-K schooling and child income credits. Unlike the 1970s, no one (nobody serious, I think) is suggesting nationalizing the oil industry or utilities, or that the government build electric cars. Which isn’t to say that much of the Biden plan and the Progressives’ Green New Deal is arguably inefficient if not horribly wasteful (money to the wealthy to buy electric sports cars?), but that doesn’t make it socialism.

Similarly, the taint of capitalism seems to stick to its products in the minds of many Americans. Yesterday’s New York Times Magazine

NYT
had an excellent article on the opposition to genetically modified organisms, which noted that the early products met opposition partly because they came from a large corporation, as if the molecules involved had a homeopathic signature of ‘corporate’ versus ‘non-profit’. And while it is true that corporations and businesses seek money and profits, those in the public sector have their own incentives that can lead them astray, as when some Veterans’ Administration doctors fiddled with records to improve their performance metrics.

Name-calling is popular in today’s angry tribal politics but not useful. If you think pre-K schooling is ineffective or too expensive, say so, don’t call it socialism. If you think that people use too much energy, don’t blame the private sector, blame the consumers.

The oil industry provides many examples of the difference between socialist and capitalist policies. There have been a wide number of national oil companies over the years, and their performance tends to be highly varied, partly reflecting a policy in some places of what the late John Treat called ‘commercialization’. That is, even if a company is owned by the government, it can still behave more like a private company than a bureaucracy.

The arguments for relying on state mineral enterprises, specifically national oil companies, are that they are more attuned to society’s conditions and needs, they allow the government to monitor resource exploitation, and they can have lower borrowing costs, being government entities. The arguments against include excessive autonomy (Petroleos de Venezuela—PDVSA—was often called a state within a state), inefficiency, and corruption. The middle approach, regulated capitalism, has generally worked the best.

A free market ideology can go too far. A colleague once told me the World Bank asked for a study of the petroleum market in Chad, which they thought should be privatized to improve competition. Given that the domestic oil market at that time was 10 tb/d, he could not foresee privatization leading to anything but monopoly. (As BP’s Peter Davies once said, “Monopolies are terrible, unless they’re yours.”)

On the other hand, socialist countries are littered with failing enterprises that government bureaucrats pushed as transformative for their economies. The poster child could be (again) Petroleos de Venezuela) which took over the expiring concessions of several foreign companies’ operations in the 1970s. Twenty years later, an executive commented to me that his subsidiary produced one-half of the amount of oil before nationalization, but had twice the employees. (He didn’t think that was a good thing.)

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Sadly, many have forgotten that it was Venezuelan President Rafael Caldera who, after initially implementing currency and price controls, liberalized the economy and especially the oil sector. A number of private operators bid on and revitalized aging oil fields, raising production over 1 mb/d, which was partly responsible for the 1998 oil price collapse. Subsequently, Hugo Chavez sought to restore the power of the state over not just private operators but PDVSA, resulting in a strike and the firing of half the company’s work force (including most executives and skilled workers). Production has since steadily declined until it is now minimal, as the state can’t pay workers, many of the managers are inexperienced (and hired for loyalty rather than expertise), and untold amounts of money are unaccounted for, justifying the argument that it’s not socialism, but kleptocracy, at fault. (Both, obviously.)

Sadly, the Chavez regime emulated a predecessor, Carlos Andres Perez, president during the 1970s oil boom, in both attitude and policies, despite their earlier abysmal failures. And Mexico’s President, Andres Manuel Lopez Obrador, is doubling down on the mistakes of Perez and Chavez, taking a strict ideological stance favoring state enterprise over private, and blaming all the failures of Petroleos de Mexicanos (Pemex) on his predecessors’ reforms, even though they had only been recently implemented. Even sadder, when a consortium of private companies found a large oil field, he has moved to assert state control over its operation, which will chill the investment climate for years to come.

The biggest crime is that this all harks back to Plato, who queried, “Who will watch the watchers?” That we haven’t solved that problem is visible in the need for police reform in many U.S. cities, but also the failure to recognize that neither the public nor the private sector can be completely trusted to act as we wish. No regulation is not a viable condition, but over-regulation can be costly as well, and both private and public sectors suffer from it. (Think of the postal worker disciplined for leaving their route—to save someone from a fire.) Both capitalists and socialists (or those presuming to be such) should recognize that ideology is a good teacher, but a bad master, and try harder to deal with real world problems in a cost-effective way.

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Review finds no case for formal probe of Beijing’s activities under elections law

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OTTAWA – The federal agency that investigates election infractions found insufficient evidence to support suggestions Beijing wielded undue influence against the Conservatives in the Vancouver area during the 2021 general election.

The Commissioner of Canada Elections’ recently completed review of the lingering issue was tabled Tuesday at a federal inquiry into foreign interference.

The review focused on the unsuccessful campaign of Conservative candidate Kenny Chiu in the riding of Steveston-Richmond East and the party’s larger efforts in the Vancouver area.

It says the evidence uncovered did not trigger the threshold to initiate a formal investigation under the Canada Elections Act.

Investigators therefore recommended that the review be concluded.

A summary of the review results was shared with the Canadian Security Intelligence Service and the RCMP. The review says both agencies indicated the election commissioner’s findings were consistent with their own understanding of the situation.

During the exercise, the commissioner’s investigators met with Chinese Canadian residents of Chiu’s riding and surrounding ones.

They were told of an extensive network of Chinese Canadian associations, businesses and media organizations that offers the diaspora a lifestyle that mirrors that of China in many ways.

“Further, this diaspora has continuing and extensive commercial, social and familial relations with China,” the review says.

Some interviewees reported that this “has created aspects of a parallel society involving many Chinese Canadians in the Lower Mainland area, which includes concerted support, direction and control by individuals from or involved with China’s Vancouver consulate and the United Front Work Department (UFWD) in China.”

Investigators were also made aware of members of three Chinese Canadian associations, as well as others, who were alleged to have used their positions to influence the choice of Chinese Canadian voters during the 2021 election in a direction favourable to the interests of Beijing, the review says.

These efforts were sparked by elements of the Conservative party’s election platform and by actions and statements by Chiu “that were leveraged to bolster claims that both the platform and Chiu were anti-China and were encouraging anti-Chinese discrimination and racism.”

These messages were amplified through repetition in social media, chat groups and posts, as well as in Chinese in online, print and radio media throughout the Vancouver area.

Upon examination, the messages “were found to not be in contravention” of the Canada Elections Act, says the review, citing the Supreme Court of Canada’s position that the concept of uninhibited speech permeates all truly democratic societies and institutions.

The review says the effectiveness of the anti-Conservative, anti-Chiu campaigns was enhanced by circumstances “unique to the Chinese diaspora and the assertive nature of Chinese government interests.”

It notes the election was prefaced by statements from China’s ambassador to Canada and the Vancouver consul general as well as articles published or broadcast in Beijing-controlled Chinese Canadian media entities.

“According to Chinese Canadian interview subjects, this invoked a widespread fear amongst electors, described as a fear of retributive measures from Chinese authorities should a (Conservative) government be elected.”

This included the possibility that Chinese authorities could interfere with travel to and from China, as well as measures being taken against family members or business interests in China, the review says.

“Several Chinese Canadian interview subjects were of the view that Chinese authorities could exercise such retributive measures, and that this fear was most acute with Chinese Canadian electors from mainland China. One said ‘everybody understands’ the need to only say nice things about China.”

However, no interview subject was willing to name electors who were directly affected by the anti-Tory campaign, nor community leaders who claimed to speak on a voter’s behalf.

Several weeks of public inquiry hearings will focus on the capacity of federal agencies to detect, deter and counter foreign meddling.

In other testimony Tuesday, Conservative MP Garnett Genuis told the inquiry that parliamentarians who were targeted by Chinese hackers could have taken immediate protective steps if they had been informed sooner.

It emerged earlier this year that in 2021 some MPs and senators faced cyberattacks from the hackers because of their involvement with the Inter-Parliamentary Alliance on China, which pushes for accountability from Beijing.

In 2022, U.S. authorities apparently informed the Canadian government of the attacks, and it in turn advised parliamentary IT officials — but not individual MPs.

Genuis, a Canadian co-chair of the inter-parliamentary alliance, told the inquiry Tuesday that it remains mysterious to him why he wasn’t informed about the attacks sooner.

Liberal MP John McKay, also a Canadian co-chair of the alliance, said there should be a clear protocol for advising parliamentarians of cyberthreats.

This report by The Canadian Press was first published Sept. 17, 2024.

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NDP beat Conservatives in federal byelection in Winnipeg

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WINNIPEG – The federal New Democrats have kept a longtime stronghold in the Elmwood-Transcona riding in Winnipeg.

The NDP’s Leila Dance won a close battle over Conservative candidate Colin Reynolds, and says the community has spoken in favour of priorities such as health care and the cost of living.

Elmwood-Transcona has elected a New Democrat in every election except one since the riding was formed in 1988.

The seat became open after three-term member of Parliament Daniel Blaikie resigned in March to take a job with the Manitoba government.

A political analyst the NDP is likely relieved to have kept the seat in what has been one of their strongest urban areas.

Christopher Adams, an adjunct professor of political studies at the University of Manitoba, says NDP Leader Jagmeet Singh worked hard to keep the seat in a tight race.

“He made a number of visits to Winnipeg, so if they had lost this riding it would have been disastrous for the NDP,” Adams said.

The strong Conservative showing should put wind in that party’s sails, Adams added, as their percentage of the popular vote in Elmwood-Transcona jumped sharply from the 2021 election.

“Even though the Conservatives lost this (byelection), they should walk away from it feeling pretty good.”

Dance told reporters Monday night she wants to focus on issues such as the cost of living while working in Ottawa.

“We used to be able to buy a cart of groceries for a hundred dollars and now it’s two small bags. That is something that will affect everyone in this riding,” Dance said.

Liberal candidate Ian MacIntyre placed a distant third,

This report by The Canadian Press was first published Sept. 16, 2024

The Canadian Press. All rights reserved.

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Trudeau says ‘all sorts of reflections’ for Liberals after loss of second stronghold

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OTTAWA – Prime Minister Justin Trudeau say the Liberals have “all sorts of reflections” to make after losing a second stronghold in a byelection in Montreal Monday night.

His comments come as the Liberal cabinet gathers for its first regularly scheduled meeting of the fall sitting of Parliament, which began Monday.

Trudeau’s Liberals were hopeful they could retain the Montreal riding of LaSalle—Émard—Verdun, but those hopes were dashed after the Bloc Québécois won it in an extremely tight three-way race with the NDP.

Louis-Philippe Sauvé, an administrator at the Institute for Research in Contemporary Economics, beat Liberal candidate Laura Palestini by less than 250 votes. The NDP finished about 600 votes back of the winner.

It is the second time in three months that Trudeau’s party lost a stronghold in a byelection. In June, the Conservatives defeated the Liberals narrowly in Toronto-St. Paul’s.

The Liberals won every seat in Toronto and almost every seat on the Island of Montreal in the last election, and losing a seat in both places has laid bare just how low the party has fallen in the polls.

“Obviously, it would have been nicer to be able to win and hold (the Montreal riding), but there’s more work to do and we’re going to stay focused on doing it,” Trudeau told reporters ahead of this morning’s cabinet meeting.

When asked what went wrong for his party, Trudeau responded “I think there’s all sorts of reflections to take on that.”

In French, he would not say if this result puts his leadership in question, instead saying his team has lots of work to do.

Bloc leader Yves-François Blanchet will hold a press conference this morning, but has already said the results are significant for his party.

“The victory is historic and all of Quebec will speak with a stronger voice in Ottawa,” Blanchet wrote on X, shortly after the winner was declared.

NDP Leader Jagmeet Singh and his party had hoped to ride to a win in Montreal on the popularity of their candidate, city councillor Craig Sauvé, and use it to further their goal of replacing the Liberals as the chief alternative to the Conservatives.

The NDP did hold on to a seat in Winnipeg in a tight race with the Conservatives, but the results in Elmwood-Transcona Monday were far tighter than in the last several elections. NDP candidate Leila Dance defeated Conservative Colin Reynolds by about 1,200 votes.

Singh called it a “big victory.”

“Our movement is growing — and we’re going to keep working for Canadians and building that movement to stop Conservative cuts before they start,” he said on social media.

“Big corporations have had their governments. It’s the people’s time.”

New Democrats recently pulled out of their political pact with the government in a bid to distance themselves from the Liberals, making the prospects of a snap election far more likely.

Trudeau attempted to calm his caucus at their fall retreat in Nanaimo, B.C, last week, and brought former Bank of Canada governor Mark Carney on as an economic adviser in a bid to shore up some credibility with voters.

The latest byelection loss will put more pressure on him as leader, with many polls suggesting voter anger is more directed at Trudeau himself than at Liberal policies.

This report by The Canadian Press was first published Sept. 17, 2024.

The Canadian Press. All rights reserved.

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