The “Canadian Economy?”

Following my last post where I look at Statistic Canada’s analysis of intergenerational income in Canada without coming to any conclusions, today, I intend to make one specific point. That point also relates to a Statistics Canada post today on labour productivity in Canada.

http://www.statcan.gc.ca/daily-quotidien/161202/dq161202b-eng.htm

The point I want to make has already been make frequently enough. Harold Innis, the pre-eminent political economist who worked at the University of Toronto and who died in 1952 and his mentor and predecessor, Thorstein Veblen, the even more pre-eminent economic historian who taught in various American universities and who died in 1929 both in their own ways decried the use of statistics on a purely national basis. The transnational nature of corporate power and control has been studied carefully by scores of scholars over the decades. See in particular the work of William Carroll at UVic and the network of scholars with whom he is associated worldwide. In my own dissertation (1981) I argued following Innis that the weather doesn’t stop at national borders, nor should statistical analysis.

In an age where corporations are spread all over the globe and where a head office may be in one country, research and development in a couple of others and commodity production in several others, how does it make sense to talk about the ‘Canadian’ economy? If StatsCan wants to get with the times it needs to begin to follow corporations in the various parts of their businesses wherever they happen to be. It’s telling that the former Canadian Manufacturers’ Association is now the Canadian Manufacturers’ and Exporters Association. With the massive reductions in value-added production in Canada over the past half century, the concept of ‘Canadian’ manufacturing is losing its relevance. This is even more true when we consider that the extractive industries in Canada, especially in the petroleum industries are 95% under foreign control.

There is no such thing as the Canadian economy. The sooner we accept that and change our patterns of gathering data the sooner we will get an accurate picture of the global reality of ‘the economy.’ Of course Statistics Canada is there to serve the Canadian government so it’s by it’s very nature political. Harold Innis warned decades ago that scholars should not let politicians lead them around by the nose. It seems like that’s exactly what has happened for a long time now and is still the driving force of data collection in StatsCan.

I deal with this topic in several posts. Check my archives for more.

Global Corporate Charters

Click to access GTI-Perspectives-Global_Corporate_Charters.pdf

So, I’ve been researching and teaching about the expansion of the global capitalist system for decades.  From all the research I’ve done, it strikes me as just about inevitable that business will soon break away from its national charter licence system to one that is supra-national.

International law as it now stands is virtually toothless, but it won’t be long before a global justice system with enforcement capabilities will be necessary.  When large business corporations no longer operate nationally, but have their headquarters in one country, research and development in another and production in several others with no one country able to legislate their activities, it’s time for a change.  The Canadian Manufacturers and Exporters Association, formerly the Canadian Manufacturers Association, has no problem representing businesses who produce nothing (or virtually nothing) in Canada.  Businesses that formerly produced (manufactured) refrigerators, stoves and other appliances in Canada but who now produce them in China in their own factories or under licence to Chinese companies or in other countries with low wages and virtually no health and safety standards for workers are still considered Canadian manufacturers.  To me that’s pretty odd.

As business corporations become more and more global they will need to be regulated more and more globally if we have any hope at all of avoiding becoming nothing but fodder for the creation of obscene corporate profits. Of course, it’s much more complicated than I’ve stated it here.  I’ll have more to say about this in subsequent blog posts.  In the meantime, have a look at the article for which I’ve included a link above.  Check out its provenance,  the Tellus Foundation.  What they propose in this article is a new global charter system for business corporations.

VIEW: Inequality hurts BC’s economy and democracy | The Hook

John Peters from Laurentian University is in Vancouver on Thursday, March 14 (today) at 7 p.m. for  a presentation at the Rhizome Cafe, 317 East Broadway of the book he edited called: Boom, Bust and Crisis: Labour, Corporate Power and Politics in Canada.  If you’re in Vancouver and interested you should check it out.  The article you can access by clicking on the link below outlines some interesting scenarios for our economic futures…

via VIEW: Inequality hurts BC’s economy and democracy | The Hook.

More from me soon on this topic.