Duane Bratt: The health versus the economy debate will come, but it's a false choice - National Post | Canada News Media
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Duane Bratt: The health versus the economy debate will come, but it's a false choice – National Post

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It has not happened yet, but it is inevitable that we will have a public debate in Canada about whether, in the words of U.S. President Donald Trump, the restrictions that have been imposed in response to the COVID-19 crisis is a case of “the cure being worse than the disease.” Thankfully, no major Canadian political figure has made such a claim.

However, there are certain pro-business and right-wing voices that have started to make this very case. See, for example, a recent column by Conrad Black or the twitter feed of Brett Wilson. In contrast, despite the restrictions that are already in place, there are some public health professionals and scientists, who argue that existing restrictions might have to last 18 or 24 months and some are demanding even more restrictions. This debate is currently at the margins, but there will be a time — maybe in a couple of weeks; maybe in a couple of months — when the debate goes into the mainstream.

Of course, framing the debate as health care versus the economy is a false choice. Ending restrictions on businesses and public gatherings will not automatically restart the economy. Not if billions of dollars more need to be dedicated to health care to deal with the hundreds of thousands of cases and the tens of thousands of deaths (or more). Likewise, how will businesses function with a workforce and customers depleted due to COVID-19? Or people scared to go to work or shop because of the threat of COVID-19. Likewise, there is plenty of economic activity that needs to occur despite the presence of the COVID-19 pandemic. People still need to eat, so we cannot shut down the agriculture sector and grocery stores. People still need electricity and home heating, so we cannot shut down the energy sector.

Nevertheless, when the rate of increase in COVID-19 cases and deaths starts to slow down or even reverse, there will be calls for restrictions to be lifted. The danger is that we may have just survived the first wave, and the possibility of a second wave intensifies if we move too quickly to reopen society. Conversely, we cannot indefinitely place harsh restrictions on society. At a certain point, some, if not all, are going to need to be lifted.

Regardless of when this debate occurs in a serious way, there are a number of key political science concepts that are going to come into play: authority and legitimacy. Authority is a form of power in which people obey commands not because they have been rationally or emotionally persuaded, or because they fear the consequences of disobedience, but simply because they respect the source of the command. The one who issues the command is accepted as having a right to do so, and those who receive the command accept that they have an obligation to obey. Authority is focused in the one who commands, but legitimacy is the feeling of respect for authority that exists in those who obey — it is what makes authority possible. In other words, people have to trust the source of the command. This is especially critical in times of crisis such as the COVID-19 pandemic.

A major challenge in how the United States is responding to COVID-19 is that many Americans do not trust the leadership of President Trump. His flip-flopping on policies and his narcissism has prevented Trump from taking the leadership role that naturally occurs in crises. The situation is very different in Canada. Even people who strongly oppose Prime Minister Justin Trudeau or Premier Jason Kenney have accepted their decisions. However, this could start to shift if people cease respecting authority. This could be because they do not trust the information provided, do not accept the rationale for severe restrictions, or believe that the decisions issued by authorities are harming them.

Canada has enacted the most draconian restrictions in living memory. The Second World War may have led to the rationing of food, gasoline and other materials, but there were no social distancing requirements. Yet Canadians have largely obeyed these restrictions, because they believe that the orders are coming from a legitimate authority and accept their rationale of responding to the COVID-19 pandemic. The Canadian state simply lacks the coercive power to enforce these restrictions in the absence of voluntary compliance. If you want to see what happens when society does not voluntarily comply with laws, just look at underage smoking and drinking, and, until its recent legalization, cannabis use.

For those who argued that Canada should have acted quicker and closed our borders (stranding Canadians outside of the country) or shutting down schools and restaurants back in January or February, you need to consider whether society would have voluntarily complied at that time.

When the inevitable debate about reopening the economy occurs, a major factor will be whether the existing restrictions can be sustained in the absence of voluntary compliance.

Duane Bratt is a political science professor and chair of the department of economics, justice and policy studies at Mount Royal University.

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S&P/TSX composite gains almost 100 points, U.S. stock markets also higher

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TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.

The S&P/TSX composite index closed up 93.51 points at 23,568.65.

In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.

The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.

The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.

The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Statistics Canada reports wholesale sales higher in July

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OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.

The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.

The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.

The personal and household goods subsector fell 2.5 per cent to $12.1 billion.

In volume terms, overall wholesale sales rose 0.5 per cent in July.

Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.

This report by The Canadian Press was first published Sept. 13, 2024.

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S&P/TSX composite up more than 150 points, U.S. stock markets mixed

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TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 172.18 points at 23,383.35.

In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.

The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.

The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.

The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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