The Demise of the Loonie and Productivity

Nipawin - Wednesday, November 28, 2001 - by: Mario deSantis


In the course of our writing we have found that the mantra of productivity growth is nothing else but another manufactured jargon used by our neoclassical financial experts to confuse people at large and reaffirm the arithmetic and scientific tenets of economic growth through the Free Market.




The arithmetic explanation of productivity as the average GDP per employee doesn't mean one cent, first because it is a reality that our well being cannot be measured with the scientific notion of GDP, secondly because this productivity index excludes the unemployed and the disenfranchised, and thirdly because this productivity is a phony scientific index to cover up the hegemonic strategy of the few and privileged to become fewer and more privileged.




The editorial article "Call of the loonie" of the National Post takes the position that we have to concentrate in enhancing our productivity first and only later we have to follow up with the banking guru Sherry Cooper's recommendation to abandon our currency in favour of the U.S. greenback. The National Post editorial panel argues that


" the strongest argument in favour of dollarization is that powerful currencies, such as the U.S. dollar and the Euro, are expected to increasingly dominate international markets in the future. Switching to the U.S. dollar would also save transaction and accounting costs and give Canadian companies access to a deeper and cheaper capital pool. And research suggests trade gains arising from the switch could boost GDP substantially... Canadian professional athletes and many corporate executives already earn salaries in U.S. funds... How can we raise productivity? Ottawa could stimulate new investment by allowing accelerated write-downs and eliminating the capital tax. Individuals and corporations could be encouraged to work harder if they were allowed to keep more of their earnings. One way not to achieve higher productivity rates is to follow the federal Liberal prescription of subsidizing national champions, creating high-tech make-work projects and signing growth-killing environmental accords."




The National Post panel is forgetting again and again and purposely again that the source of productivity rests on the employment and creativity of people. These editorial writers of the National Post have learnt the economic global jargon to fool common people with their mantra that a recessionary economy is stimulated by lower corporate taxes, by tax cuts, by subsidizing national champions (such as Bombardier for example), by creating high-tech make-work projects at a time of a dotcom deflation, and by signing growth-killing environmental accords for whatever it means.




These neoclassical writers conclude their article saying that more and detailed scientific research is required before our agreeing on a common currency. And where are the people, and where is their overall well being? No, for these neoclassical white-washers people don't come into the play of the economy, what matters is a productivity number, tax cuts, and scientific research. Give me a break National Post!


  Pertinent articles published in Ensign
  Call of the loonie, Editorial of the National Post, November 27, 2001