Multinational Enterprises in Canada: .8% of enterprises, 67% ownership of ‘Canadian’ assets.

Although less than 1% of all enterprises were MNEs, they held 67% of all assets in the Canadian economy. MOFAs owned more assets than FMOCAs, with 49% of the total…Half of MNEs were Canadian majority-owned, with foreign affiliates (MOFAs) and half were foreign majority- owned, with Canadian affiliates (FMOCAs).  

From: https://www150.statcan.gc.ca/n1/pub/11-621-m/11-621-m2019001-eng.htm

This is a short post designed mostly to share this information from Statistics Canada. Sure, go ahead and read my piece, but check out the Stats Can material too. By the way, MNE means Multinational Enterprises, MOFA means Majority-owned Canadian Affiliate, and FMOCA means Foreign-Owned Canadian Affiliate.

So, did you get that? Multinational corporations by count are less than 1% of the number of enterprises in Canada yet control 67% of ‘Canadian’ assets. That is not the whole story either, by any stretch of the imagination. MNEs pay way less taxes than they should on average so they also draw inordinate amounts of wealth from all of us while returning very little back to us as a country.

So, have a look at this photo of a power inverter we own. It converts twelve volt DC into 120 volt AC current. It says it was designed in Canada and Assembled in China. I’m assuming it was designed by a Canadian company, but I don’t know. I’d have to do more research because there are many possibilities. It could be that it was designed by a Canadian company for another Canadian company, or it could have been designed by an American company with a Canadian affiliate. It is called the Motomaster Eliminator, which means that it was manufactured by some business to be sold in Canadian Tire stores. There’s no way that Canadian Tire manufactured it. Canadian Tire contracts with manufacturers to build things and put the Motomaster name on them. So, is our inverter a product of Canada or China? There is no manufacturer named on the product. It’s getting to be more and more difficult to identify the sources of the commodities we regularly consume. The inverter says it was assembled in China, but were all the parts that make up the inverter made in China? Not likely. They could have been made anywhere in the world and shipped to China for assembly.

It used to be that the Ford Motor Company manufactured all of their cars in Dearborn, Michigan. The plant, which was huge, took in raw materials from all over the world and converted those raw materials on site into parts that were then assembled on site. Not any more. Now Ford cars have parts that come from all over the world, components manufactured and assembled in various locations into transmissions, engines, etc., then assembled to completion in Michigan, or in other plants here and there in the world, including in Canada.

Very few value-added products are now manufactured from scratch in Canada or in any other country, for that matter. Much of ‘Canadian’ raw material gets shipped overseas or to the U.S. for use in a multitude of commodities. Nationalism is no longer a factor in economic decision-making unless there is money to be made in using attachment to country as a marketing tool. It’s common for ‘Canadian’ businesses to do this when and if they can. It’s possible that some business owners have a real affinity for their country, but even then, the underlying logic is still making money.

In another aspect of this situation it’s notable that in many circumstances, along with our power inverter, many commodities are designed in North America and manufactured elsewhere to take advantage of cheap raw materials and labour-power. Truth is we live in a very complex world while people want to see nothing but simplicity in it. You tell me if when I use the toothpaste we just bought that says on the package that it was made in Mexico that I’m brushing my teeth with Mexican toothpaste? No? Then what am I doing and why does it matter so much to some people?

Big business in the form of multinational corporations is pretty much operating within its own world of supply chains and profit and loss statements. It raises its head about the money well only long enough to sniff the air to see what is going to be the next vehicle for their drive for profit. That will not cease anytime soon but it will cease. The race is on to see whether corporate capitalism collapses from its own internal contradictions before the planet sheds us for our excessive consumption and disregard for other life forms. I have no idea what the outcome of this race will be but it may be that both processes happen simultaneously. In that case, Armageddon here we come. Glad I won’t be around for that.

“Indians” in the Fur Trade

In my last three posts I considered the fur trade in the northern half of North America. I suggested that indigenous peoples traded fur (beaver as well as otter, mink, fox, muskrat, lynx and many others) for manufactured European tools, the most important being axes, hatchets, kettles, knives and guns. The trade began we don’t know quite when but possibly as early as the early 15th Century incidentally to fishing on the Grand Banks and in the Gulf of St. Lawrence. I also wrote that the trade didn’t really get off the ground until the 17th Century when Samuel de Champlain made several trips to the St. Lawrence in search of furs or whatever else he could return to Europe for a profit.

Indigenous peoples as early as 1534 when Jacques Cartier entered the St. Lawrence on the first of his three trips to North America, were eager to obtain European trade goods. That’s not in dispute.¹ The superiority of European iron, brass, and copper tools was not lost on indigenous people although some might argue that this superiority is strictly one that is adapted to capital accumulation and commodity production rather than for the creation and use of tools designed for immediate use. Still, the Indigenes, by all accounts, were driven to adopt European tools and soon lost the capacity and the skill to use their old tools. 

To say that Indigenous people were driven to adopt European tools is not to say that Indigene and European were equal in the trade. Hunt (see footnote 1) goes so far as to say: 

The great desirability of the trade goods to the Indian who had once known them became shortly a necessity, a very urgent necessity that permitted no renunciation of the trade. As new desires wakened and old skills vanished, the Indian who had fur, or could get it, survived; he who could not get it died or moved away. But, whatever he did, life for him could never again be what it had been: old institutions and economies had profoundly altered or disappeared completely at the electrifying touch of the white man’s trade, which swept along the inland trails and rivers with bewildering speed and wrought social revolution a thousand miles beyond the white man’s habitations, and years before he himself appeared on the scene. 

It was the incursion of Europeans into North America that eventually wrought the decimation of Indigenes in North America through intertribal war, smallpox, measles, whooping cough and displacement in the face of settlement. If a real accounting of the European invasion of North America were done, one would find that the Europeans had ‘won’ the contest hands down. I’m not sure, however, that the ‘win’ is especially sweet given the current state of our land, sea and air, our societies, our ways of ‘making a living’, and our often strained interpersonal relations.  That said, I’m not sure all Indigenous people would want to return to pre-contact times. Life then was not as idyllic as we would like to think and the ‘noble savage’ was neither particularly noble, nor savage, at least no more or less than the rest of us. 

We must keep in mind that the commercial fur trade based on the beaver lasted almost three hundred year as a dominant industry with the period 1670 to 1870 standing out as the most active. A lot can happen in two hundred years. For generation after generation, the Indigenes were driven by the lure of European trade goods but in the process, they transformed themselves and were coerced, often with the help of the clergy, into becoming the workforce of European capitalists. Old rivalries turned into bloody conflicts with the arrival of European guns and other weapons. The Mohawk, who numbered at most 12,000 people and who had been dominated for a long time by the Algonquin and Huron, who numbered probably 100,000, crushed the Huron in a bloody war culminating in 1649-50. 

It can be argued that early on in the fur trade, Indigene and European were on a much more equal footing than there were to be later, say in the 19th Century. Early on, Europeans relied as much on Indigenous technology as the Indigenous peoples relied on European technology. The canoe made the early trade possible and Indigenous agriculture fed the drive of the trade inland. After 1830, and the decline of the demand for beaver fur in Europe along with the virtually complete destruction of the bison and the rise of forestry as a staple trade, the need for Indigenous workers in the fur trade declined. They were abandoned more and more to their own devices. Starvation was rampant and disease murderous. In all of this in what we now know as The West, Catholic clergy vied with the Protestants for the souls of the remaining individuals. The Oblate missionaries declared the Protestants as the ‘agents of Satan’ but to their chagrin, the Protestants were often aligned with the British trading out of Hudson’s Bay and their work was doubly challenging as a result. 

By 1870 when the Hudson’s Bay Company sold Rupert’s Land to the Canadian Government the tragic trajectory of the Indian Act was about to be played out. Indigenous people became wards of the Canadian state and are still technically so with some exceptions. Indigenous people were crowded onto reserves and their rights eroded with several amendments to the Act. Nevertheless, resistance was always a factor in Indigenous life and the flowering of Indigenous political activism and individual success, even at the white man’s game, business enterprise, is testament to the resilience of Indigeneity. Still, the structural disadvantages and personal racism Indigenous people face are staggering. 

To study the fur trade and the colonization of the northern half of North America is to study the trials and tribulations of Indigenous North Americans coming to grips with the inexorable, inevitable, spread of Western Civilization into their lands, into their families, their social relations and their ways of life.  Their struggles were human struggles, not unlike the ones we experience today. Their lives weren’t simpler than ours. In fact their lives were often more precarious and more complicated than ours. Their loves were no less so. Alliances were often sealed with marriages between Indigenous women and European men although sexual intimacy and desire don’t need the sanction of politics to flourish. Indigenous men and women were as capable as we are of subterfuge, of lying, of deceit, and of treachery. They were also as capable of love, joy, caring, mutual support, as well as profound grief from loss of family members from disease and death as we are. They had dreams and arguments. They ‘othered’ people as we do. They had an idea of who was ‘good’ and who was ‘bad’, just like we do. They were just as powerless in the face of historical, global political economic forces as we are. In the end, they lived and died, just as we do.  

 


¹ See esp. 

Hunt, George, 1940. The Wars of the Iroquois: A Study of Intertribal Trade Relations. Madison: The University of Wisconsin Press. The introduction is most relevant here, especially pages 4 and 5. Also see:

Innis, Harold, 1930. The Fur Trade in Canada. New Haven: Yale University Press. See especially page 392 but the whole book is about the spread of the fur trade west from the Atlantic to the Pacific.

 

Beaver Tales, Colonialism and Science Pub Nights. Part 3: How Beaver were the Reason Canada Exists.

Human beings kill. We kill plants and animals at an incredible rate and transform their basic life elements into ourselves when we eat them. We cannot do otherwise. We must ingest other organisms to survive. We are generally omnivorous. That means we will shove anything and everything down our throats even if now and again we choke on something. So, we kill for food. We also kill for fur, bones, scientific research and just for fun. We seem to enjoy driving lead into other animals and into each other. We have institutions that encourage it, thousands of them. The market is one of the most important ones but the military is close behind as is factory farming both on land and water.

For this blog post, however, I want to focus on one historical incidence of our obsession with killing other animals, and it’s on beaver that I focus my attention here. This post is about our obsession with killing beaver leading to the creation of Canada.

I’ve already written about how the fur trade was initially (in the 16th Century) incidental to the fishery on the Grand Banks and the Gulf of St. Lawrence. From there, and moving into the 17th Century, the fur trade moved inland. Samuel de Champlain first arrived in the St. Lawrence River in 1603 and in the next couple of decades travelled up the Ottawa River, along a trade route that had existed long before contact, to the Mattawa, Lake Nippising, the French River and on to Georgian Bay, Lake Huron, and Lake Superior. In 1968, Parks Canada published a book by Eric W. Morse called Fur Trade Canoe Routes of Canada/Then and Now. With an introduction by Pierre Elliot Trudeau, who canoed with Morse on occasion, the book presents a detailed first hand exploration of historical fur trade routes and their conditions as of the publication of Morse’s book in 1968. The current landscape barely resembles the one extant when Champlain first explored it in the first half of the 17th Century. It seems we just couldn’t leave well enough alone. We killed off most of the beaver whose dams mitigated flooding and erosion and replaced them with concrete dams and culverts. What could go wrong? Ask Sudbury. It just declared a climate emergency. It sits at the epicentre of the historic beaver kill off.

Morse’s book clearly shows how the fur trade routes originating in the St. Lawrence essentially followed the southern edge of the Canadian Shield all the way to Lake Athabasca via Lake Superior, Rainy Lake, Lake of the Woods, Lake Winnipeg, the North Saskatchewan River, and winding it’s way into the Mackenzie River drainage system through La Loche in what is now northern Saskatchewan. In a sense, a shorter route to the interior was via Hudson’s Bay and it’s drainage system which included Lake Winnipeg, but which followed a number of routes inland depending on the time of year and the conditions at the time. The fur trade necessarily followed the geography of the rivers, lakes, and portages that would lead to the quickest and most efficient route to the money embedded in beaver fur. The further away from salt water the beaver had to be hunted because of their depletion along the established routes the more the trade cost in terms of infrastructure and human power. For the first hundred years until at least the 1650s, Europeans had not set foot in the interior as traders. Indigenous middlemen such as the Algonquin, the Huron and later the Odawa and others west of the Great Lakes, including the Chippewa, Ojibwa, Potawatomi and further west, the Dakota Sioux, the Assiniboine and the Cree. In the north, the Chipewyan were dominant. To the west of them the Strange, the Sikani and the Carrier among others east of the Rockies. The Tlingit provided important trade routes to the West Coast as did the Tahltan who were connected to the coast along the Stikine River, and other groups.

Every Indigenous group in what is now Canada coveted European trade goods the moment they first encountered them and did whatever it needed to do to get them including waging war with their neighbours or competitors wherever they might live. For instance, the Iroquois (as we know the Haudenosaunee) terrorized the Montagnais and other groups who trapped beaver and wished to trade with the Europeans along the St. Lawrence and down the Richelieu River to Lac Champlain and beyond. By 1650, the Iroquois (mostly the Mohawk) had routed the Huron and broken up their Georgian Bay trading empire. The Wendat (Huron) had earlier displaced the Algonquin. Once they became dependent on European trade goods, Indigenous peoples no longer had fetters in their hunt for beaver. They participated wholeheartedly in the industrial pursuit of beaver fur. Indigenous peoples were the workforce for the fur trade and were thus not deliberately eliminated. The Americans, in contrast, worked to systematically eradicate indigenous populations south of the St. Lawrence and the Great Lakes all the way to the Gulf of Mexico because they were in the way of agricultural settlement moving west at an increasingly rapid rate. They did not succeed entirely but there is little left of pre-contact indigenous culture. Of course it’s true that there is very little left of European culture of the 15th Century either.

To follow the settlement of the west in the early 1870 with the creation of Manitoba and British Columbia, with Alberta and Saskatchewan in 1905 is to know that the area north of the 49th Parallel was to remain tied to the British Empire as a part of Canada. The Americans realized early that they could advantageously trade with the Northwest Company to bring furs through Michilimackinac. John Jacob Astor of the American Fur Company, the wealthiest American of the time arranged a deal where his company, the Michilimackinac Company, and the Northwest Company agreed to mutually respect ‘their’ territories. Astor was an astute businessman and negotiator. His strengths as a trader lay on the Pacific Coast and in the Lake Michigan area and he was more than willing to leave the north to the British (for a price). Ultimately the trade in beaver fur would be the base of his wealth, but it would not remain so. Astor made most of his wealth in New York real estate after the signs of the demise of the fur trade were too clear to ignore. Harold Innis writes:

“The northern half of North American remained British because of the importance of fur as as staple product. The continent of North America became divided into three areas: (1) to the north in what is now the Dominion of Canada producing for, (2) to the south in what were during the Civil War the secession states producing cotton, and (3) in the center the widely diversified economic territory including the Now England states and the coal and iron areas of the middle west demanding raw materials and a market. The staple-producing areas were closely dependent on industrial Europe, especially Great Britain. The fur-producing area was destined to remain British…

The Northwest Company and its successor the Hudson’s Bay Company established a centralized organization that covered the northern half of North America from the Atlantic to the Pacific…It is no mere accident that the present Dominion coincides roughly with the fur-trading areas of northern North America…The Northwest Company was the forerunner of the present confederation.” ( from The Fur Trade in Canada, Yale University Press, New Haven, 1930, page 396)

From this perspective, the true Fathers of Confederation are Alexander Mackenzie, David Thompson and Simon Fraser of the Northwest Company rather than John A. Macdonald and Etienne Cartier.

Beaver Tales, Colonialism and Science Pub Nights. Part 2: Beaver fur makes nice hats especially after indigenous people have worn it for 15 months.

In my last post I wrote about the various biomes in North America and how Indigenous groups were adapted to the local conditions. It’s safe to say that we know very little about the thousands of years pre-contact in North America especially from the perspective of Indigenous people themselves. There are tons of accounts of European colonialism and the history of Europe is accessible to us all although it may not be as objective as some people think. The question is: Who gets into the history books? Why, kings and Queens, Knights, Bishops, and Popes. You’d think it was a giant chess game!

That said, and getting back to beaver, the trade in beaver fur was largely concentrated north of the 49th Parallel and in most cases, north of the 55th up to the barren lands of the Canadian Shield. In the south, beaver fur was of lighter and poorer quality that in the north and beaver were nowhere near as abundant. On the eastern seaboard, beaver were soon wiped out in the Hudson-Mohawk River system. By the mid-17th Century, the beaver were virtually wiped out along the eastern shores of North America they were so heavily trapped.

The hunt for beaver makes for a fantastic story because it is nowhere near as straightforward as it might seem. The image of a beaver graces our nickel in honour of its role in the creation of the country. See the beaver on the nickel:

It has a rightful place there, I believe, but it would be just as right to have it grace a one-pound British note or a Euro because the trade in beaver fur had as much of an impact on European economic development as it had in North America. During the 17th Century in Britain the mercantile capitalist elite and the gentry were able to capture the British government (we sometimes call it the Cromwellian Revolution) but the newly-created industrial capitalist class was just getting a full head of steam, and employed over fifty percent of the working population. The situation was not the same in France where the Absolutist Monarchy maintained a much higher grip on economic activity. The need in North America for European trade goods like knives, kettles, awls, guns and steel traps created a huge impetus for European industrial development and innovation. That impetus was the result of the North American Indigenous peoples’ desire or craving for tools that made their lives so much easier than they had been previously.

So, the beaver fur most sought after by European hat makers was called castor gras d’hiver or fat winter beaver which is also called coat beaver. It was fur that had been worn by indigenous people for fifteen to eighteen months, fur on the inside which tended to loosen the long guard hair leaving the soft, velvety ‘wool’. As I noted before, the early fur trade was incidental to the fishery on the St. Lawrence. Even in 1534 as Jacques Cartier sailed into the Gulf of St. Lawrence, Indigenes, probably Abenaki and other coastal groups he encountered, offered him coat beaver that they waved over their heads stuck on long poles. He traded with them in 1535 and 1541 meaning that they already had knowledge of the European market for beaver pelts before Cartier even showed up. No doubt Basque and other European fishing boats had landed on the coast and sailors had recognized the value of the clothes that the Indigenes wore and traded some European tools for a few skins. However, the fishers had no organization to exploit the fur trade so it stayed incidental to the fishery until well into the next century after the arrival of Samuel de Champlain in 1602 when he brought organization to the trade and build Québec in 1608. The Montagnais who lived north of the St. Lawrence traded with the Europeans at Tadoussac, having come down the Saguenay River fully clothed and leaving naked after trading the very clothes off their backs for European trade goods.

Another grade of beaver fur was called castor sec or parchment beaver. It was beaver that had not been worn but prepared immediately after the animal was killed, dried and readied for sale. Hat makers in Europe used both types of fur when making beaver hats like the ones below:

This photo is in the public domain.

Beaver hats were, for the most part, felted hats. That means that the beaver ‘wool’ was shaved from the beaver skin and then felted by a process of applying heat and moisture which causes the hairs to mat together to create a smooth ‘cloth’. Beaver hats in these styles were popular from 1550 until 1850 or so when Chinese silk became the fabric of choice in the making of hats for the well-to-do.*Incidentally, there is a Eurasian beaver (castor fiber) but it had been virtually wiped out in Europe by the mid-sixteenth century. The Russians were manufacturers of beaver hats too and they turned to new sources when the Eurasian beaver disappeared from their territories due to indiscriminate hunting and trapping. The Russian invasion of Siberia was largely due to the fur trade. My focus here, though, is on North America.

In my next post I trace the growth of the North American Fur trade as it spread across what we now know as Canada and its transformation of Indigenous groups into hunters and trappers or middlemen for the European trade.

____________________________________________________________________
*The story of the European hat making industry and market is intriguing in itself. Many of the hat makers were in Spain and Portugal but the hats in many grades were sold all over Europe although at times they fell out of favour and the North American Fur trade faltered.

Beaver Tales, Colonialism and Science Pub Nights

So, the other day I made a thirty minute presentation to a science pub night on beavers and colonialism in the Masonic Hall in Cumberland, British Columbia. Yes, I did that. I was one of four presenters and I was the only one to talk about dead beavers. All the others talked about beavers in wetlands, their role in water retention, their dams, their family lives and their newer reputation as troublemakers, especially for municipal infrastructure, highways, farmers and others.

My job was to talk about the role of beaver in colonialism. My emphasis was on how the political structure we call Canada came about as a result of the spread of Western Civilization into and across North America. It’s a sordid tale of violence, intrigue, greed, adventure, religious proselytization, and general ineptitude wrapped around a cloak of rapidly spreading mercantile and industrial capitalist expansion and the attractiveness of new European tools and technology for the indigenous populations of North America. The globalization we experience today had its major early impetus in 16th Century European economics and politics. Everyone in Europe and North America experienced massive transformation during the period 1500 to 1900 AD but, I daresay, it’s possible to say that about virtually every period in human history (if it’s even reasonable to talk about ‘periods’ of human history, it being a process rather than a series of ‘periods’). What makes this four hundred year timeframe distinctive is how life and work in North America were transformed. It’s impossible to outline here how the various indigenous groups in North America experienced that transformation because there were (and still are) a number of distinctive biomes that demanded of the indigenous groups various and different forms of work and life. For instance, in the eastern part of North America at the time of contact, the Haudenosaunee (Iroquois) were agriculturalists, who along with their northern cousins, the Wendat (Huron) and other groups to the west of them, grew corn, squash, and beans along with, in some cases, tobacco and other crops. The indigenous people of the prairies had very different lifestyles based largely on the bison herds that roamed all over the prairie regions of the continent. The northern indigenous peoples such as the Assiniboine, the Cree and the Chipewyan (Dene) had lifestyles based on hunting and trapping beaver, fox, wolf, and especially moose (although it’s true that some Cree lived on the prairies, some in the parkland and some in the boreal forest). This kind of lifestyle extends from just north of the Great Lakes to the Rocky Mountains on a diagonal from south in Manitoba to northern British Columbia and the Yukon. The lifestyle is dependent on wetlands, rivers, lakes, forests of birch and maple. The diet of forest peoples is largely animal protein from a large variety of fur-bearing animals and fish.

The wetlands of ‘Canada’.

The West Coast indigenous groups were, like the Haudenosaunee, longhouse dwellers because of their relatively sedentary lives based on a relatively stable source of animal protein, berries and other types of edible plants, roots and mushrooms. The northerly indigenous groups were not agriculturalists, but the ones in what is now California, Nevada, Arizona and New Mexico were. The Hopi especially lived in Pueblo villages and practiced agriculture much like the Haudenosaunee. The Apache, Comanche and Sioux lived in teepees, portable and easily erected. That said, getting the poles for teepee construction required yearly displacements to more forested areas. Living in villages and settlements requires very different social institutions than are required in forest dwelling indigenous groups.

Beaver fur, the staple product par excellence that drove the colonial exploitation of the northern half of North America was preceded in its importance to Europeans only by cod fish and other marine species both mammalian and fish. Hundreds of European fishing vessels occupied the Grand Banks off Newfoundland and in the Gulf of St. Lawrence in the 16th Century. The beaver trade was incidental to the fishery for most of 16th Century and it wasn’t until Samuel de Champlain arrived in ‘Canada’ in 1602 that the beaver trade became a force in its own right.

Next post will deal with the importance of beaver for the indigenous populations around the St. Lawrence and on the eastern seaboard in the 17th Century. The hunt for beaver was to change forever the lives of the peoples of North America and those of Western Europe creating Canada along the way in its pre-war configuration.

Lose your job to automation: Mourn or celebrate?

The three links below of several hundreds that can be found on the internet news sources these days indicate clearly the rapidly accelerating advance of automated technology moving towards the elimination of jobs.

Walmart

Australia

Japan

So far, the action seems to be very widespread but is moving especially rapidly in retail as is clear from the evidence in Australia, Japan and the US. The rationale used to justify automation by Walmart management in the US is creative and ridiculous at the same time. Nobody in management wants to say that their companies are trying to reduce or eliminate their workforces altogether. But that’s exactly what’s happening.

Karl Marx predicted this very outcome in the mid-19th Century arguing that in their efforts to control or reduce their costs of production, businesses, after overproducing in the search for profits, turn to automation to control their labour force and return to profitability. The process has been going on for a long time.

It seems perfectly reasonable for businesses to try to become more ‘efficient’ by automating jobs that are tedious and repetitive, often dangerous. For individual businesses this seems like an effective strategy to control their costs and their processes. The problem is that there is anarchy in the business world, no coordination, and competition prevents cooperation between businesses in the same field of operations. The result is that there is a reduction in the aggregate number of workers in any given area and the reality is that bots don’t buy anything. Workers are also consumers so doing away with workers is doing away with your very own customers. Nobody I know in business is worried about taking customers away from their competitors, but if Walmart eliminates much of its labour force by automation that will inevitably also reduce its customer base.

So, the question is should you mourn or celebrate the loss of your job through automation? The answer is yes and no. The actual issue is not jobs, but income. You should definitely mourn loss of income. The loss of a job not so much. Jobs, i.e, employment, are not really in sync with the human capacity to work. Humans, as Veblen is quick to point out, are programmed to work, but if they are presented with meaningless, repetitive, boring work that is really to make someone else look good or get rich, they balk. So doing away with boring, stupid, meaningless jobs is a good thing in my mind. Several countries are now toying with a guaranteed basic income. It will take some time yet for the importance of this strategy to become more widespread.

We’re at a real crossroads at the moment. With the advent of advanced robotics, automation, and especially artificial intelligence, work will be required of fewer and fewer people for shorter and shorter lengths of time. There will be, in a very short period of time, a huge surplus of people as workers and a shortage of people as consumers. The elimination of tedious labour could result in an explosion of creative energy as people are freed to think for themselves and act according to their talents and abilities. However, they will need income to be able to do that.

One thing for sure, there will have to be a greater distribution of wealth because it does no one any good to hoard cash and take money out of circulation. It sure doesn’t help corporations involved in the sale of consumer goods. From this perspective, banks and financial institutions are at loggerheads with consumer driven businesses. There will have to evolve a very different ethic, one at odds with the current capitalist Neo-liberal one that I wrote about in my last blog post.

Are poor people moral degenerates?

They certainly are according to capitalist morality.

I’m sorry, but I’m going to fucking Jonathan Pie this post because I’m getting royally impatient and pissed off with you ignorant fuckers out there who, in your self-righteous, holier-than-though attitudes consider poor people to be less than human. Recently someone posted on Facebook that a group of volunteers had cleaned up after a homeless camp had been dismantled here in the Comox Valley. There was a nice photo of the volunteers attached to the item. The comments on this post were mostly supportive of the volunteers, but the odd comment slipped in there that was outrageously stupid as in calling the homeless camp residents ‘filthy pigs.’ Piss me off.

Would you call someone in the hospital dying of cancer a ‘filthy pig?’ Would you call someone who is physically disabled and unable to clean up after themselves ‘filthy pigs? Would you call someone who has been injured and unable to clean themselves or their rooms ‘filthy pigs?’

Some of you might answer yes to the above questions because you’re complete morons. Most of you, I assume, would answer no. The reason most of you would answer no is because you believe that the people who are the objects of the questions are not responsible for their conditions. Still, I think that a number of you who answer no to the above questions would answer yes if I had asked about responsibility. If I had asked: ‘Do you think people dying of cancer in the hospital are responsible for their situation?’ No, you would probably say. ‘Do you think that homeless people are responsible for their situations?’ Yes, you might say even though we know that ‘mental illness’, drug use, and other ‘ailments’ are not much different than cancer to the human body. It’s okay to be physically ill, but don’t be mentally ill because that’s a clear indication that you are morally weak. Cancer patients are not considered morally weak but if something goes wrong in your brain for any number of reasons you’re a loser and a moral degenerate and god forbid you get addicted to drugs or gambling.

So, what’s the basis for our beliefs about illness, homelessness, poverty, and disability? Well, it’s not that complicated although it’s shrouded in obfuscation and ideology. It’s all about morality. Capitalist, Neo-liberal morality. What the hell is that? Isn’t morality all about good and bad, and is it not a guide to how to live life properly? Is morality not just a set of ideas that are more of less universal and agreed upon for the most part? Basic things like those that can be found in the Christian Ten Commandments. Thou shalt not kill, covet thy neighbour’s wife and so on?

Well, those ideas are a part of capitalist morality but not even those ideas stand up to careful scrutiny as being universal behavioural precepts. It all depends on context and situation. Killing is perfectly moral if you’re killing an ‘other’. Morality is fundamentally grounded in material life. Veblen would say that ‘habits of thought’ are based in ‘habits of life.’ There is no such thing as a disembodied morality.

So, what is capitalist, Neo-liberal morality? I’m sure you won’t have any trouble identifying it when I point it out to you. It’s actually based on the ideas of people like the 17th Century writer and philosopher, Thomas Hobbes. He’s the guy who people sometimes quote as arguing that life is short and brutish. He and the ideology he helped spawn were (are) firmly attached to a growing labour situation in England whereby people were being systematically weaned from their relationships with their feudal lords and forced, more of less, into new wage based forms of employment. Capitalist morality is based on the ideas that one must be self-sufficient, that one is responsible for all of one’s actions, that one is in a constant power struggle with everyone else in a society, that one must work hard to ‘earn one’s keep’, that people are a bunch of lazy things that need to be prodded into action, that no individual is beholden to any society, that illness is weakness, that poverty is failure, and that all the good or bad that befalls us is our own doing.

Capitalist morality is based on the ideas that one must be self-sufficient, that one is responsible for all of one’s actions, that one is in a constant power struggle with everyone else in a society, that one must work hard to ‘earn one’s keep’, that people are a bunch of lazy things that need to be prodded into action, that no individual is beholden to any society, that illness is weakness, that poverty is failure, and that all the good or bad that befalls us is our own doing.

Of course all of this is a crock of shit and has been established over and over as a crock of shit by generation after generation of psychologists and social scientists. Problem is, the findings of psychologists and social scientists that don’t accord with the basic principles of capitalism with are summarize by C. B. Macpherson in the phrase ‘possessive individualism,’ are summarily dismissed by those people who have a vested interest in an unequal distribution of wealth which means rich people. Of course, that’s only partially true. Rich people are rich often not because of any stellar performance on their part. They often become rich because they have rich families to inherit money from. To get richer, it helps if you’re already rich, family-wise I mean.

So, in order to illustrate my thinking about morality I want you to think about a wall (why not, walls seem to be popular these days), a metaphorical wall that is. In the rough drawing I did below, you see a blue section in the middle, thin lines that surround that blue section and the thick line that surrounds it all and that’s what I call our moral wall. US and Others are located where they are to illustrate our relationship to ourselves and to others. Others, those people we just can’t relate to at all because they live in places very foreign to us, we consider outside our moral wall. They don’t even figure in our conceptions of morality, or of what’s good or bad. They are barely considered human. “US” on the other hand includes all people who share a world dominated by capitalist social relations. The closer one gets to the middle, the stronger the pull of Hobbesian ideas and real concentrations of wealth and power. The concentric rings represent groups of people who are related to the concentration of wealth but in various intensities and amounts. The closer one is to the vortex or black hole at the centre, the more one represents the ideals of capitalism and individualism and the closer to the wall one gets the weaker our relationship is to capitalist production. So, for example, people occupying the absolute (blue) centre are the 1% who control the greatest proportion of human wealth. The people who occupy the 2nd ‘arrondissement’ are still very wealthy but generally work as close advisors or specialists to the people in the dead centre.* The people in the 3rd ‘arrondissement’ are wealthy middle class investors, managers, CEOs, etc. The people in the 4th ‘arrondissement’ are the supporting class, the technicians, educated specialists who do the bidding of the 1% and of the people in the closer ‘arrondissements’. The people who occupy the 5th ‘arrondissement’ are generally technically trained but poorly educated cadre, often moderately well-paid but unhappy because of their distance from the centre. They so want to be rich. They buy lottery tickets. They so want to be like the people in the centre that they have tummy aches over it. They adore the people in the centre and know they can do no wrong otherwise how would they get to the centre of our moral universe in the first place? They must be blessed by God! Whatever the 1% do is fine by them even if it’s often considered illegal. If it is illegal, it’s legitimate to ignore the law of push to have it changed. The people in the 6th ‘arrondissement’ are the uneducated, the poorly trained, the unemployed, the poor, the marginal folks of all kinds. These people either see the 1% as gods to bow down to and revere (Trump followers) or as devils to resist in every way possible (progressives).

Now, the thing about people in the 6th arrondissement is that they often also look at the centre with melting hearts knowing always that their distance from the centre of our moral universe is all their fault. If only they had been better people, worked harder, made better decisions. dressed better, were better looking, went to school, everything would be hunky-dory. We absorb these feelings into the very fabric of our existence. They colour the way we see the world, and how we treat others.

That said, there’s people all the way through the multiple ‘arrondissements’, at least at the lower levels, that know the morality embodied in this fictitious moral world is bullshit. They know that there’s something wrong with a world based on defining personal worth by reference to how much wealth one has accumulated in one’s life and how well one did in the competition for scarce resources. Maybe they have gotten an education and have had to agree with social scientists that capitalism is not a natural human condition, but only a phase in history, one we would do well to escape as soon as possible before it destroys us all. Capitalist Neo-liberlism truly is a world without love (intimate connections with others), compassion and caring. Individuals who demonstrate love, caring and compassion are often ridiculed, marginalized, and called weak.

If we can get through this, I’m optimistic about the future. If we can’t beat the capitalist cancer that threatens to do us all in, we will succumb to the planet’s rejection of us because of our stupid overconsumption and lack of consideration of the world around us, the plants and animals that we need to survive and thrive. A pissed-off planet is not good for us humans. We are going to go extinct one way or another, but we don’t have to rush into it and drag most other species on the planet with us.

  • The dead centre of this moral world of ours is populated by individuals, certainly, but also by organizations like banks that concentrate wealth. So the situation is very complex on the ground but simple conceptually.

My next post: how is about how capitalist wealth is increasingly concentrated and why.