Statistics Canada reports on economic performance during the second quarter of this year (April, May, June) contradict Justin Trudeau’s remark that the “economy is roaring back.” To benefit their own campaigns, opposing cartel party politicians vying for their own cartel party to form the government immediately pounced on Trudeau’s “roaring” statement as nonsense.
Yes, the statement was nonsense. It reveals how self-serving the Liberals and their leader are. The response of the cartel parties is similarly self-serving. All of them promote themselves by making claims which are not true. The entire machinery of state, from the media, to pollsters and pundits, use their positions to give these cartel parties legitimacy by promoting their claims, disputing their claims and otherwise making sure they cannot be held to account.
Real problems require real solutions, not detached and irrational sound bites from cartel party politicians or endless pro and con spin from media, pollsters and pundits. To deal with the problems in the economy and build a future, working people themselves are coming forward to speak in their own name. The conditions are even forcing unions out of their traditional negotiating and grieving role within the confines of labour law, to protest and contest the use of the state machinery to dictate wages and working conditions, eliminate pensions and compensation for injuries or loss of employment, homelessness and the violation of rights on every front without exception. The new normal treats workers as disposable and negates the rights of all. An authority which permits such things cannot be left to rule.
The oligarchs in power in the economy and those who command the cartel parties vying for elected positions and to form the government to serve themselves and those holding economic power are not going to solve the problems facing the people and economy or even investigate them in a serious manner. They are engaged in a vicious fight over control of the state apparatus to serve their own narrow private interests. They have integrated the economy of Canada as a whole and of each province and territory into the U.S. war machine and are engaged in a brutal fight with rival coalitions and cartels which includes passing backward legislation to justify nation-wrecking in every aspect of life.
Real Problems Require Real Solutions!
The Marxist-Leninist Party of Canada calls on Canadians to raise the level of politics by speaking in their own name about their conditions of life and work, about what they expect from the economy, how resources should be used and who should control them. These are all political problems because human beings cannot control their lives when their security is in the hands of cartel parties controlled by narrow private interests.
Join with fellow Canadians in discussing and charting a path forward to a modern Canada that stops paying the rich, makes Canada a zone for peace and humanizes the natural and social environment by protecting Mother Earth and defending the rights of all!
Renewal Update, September 2, 2021
For Your Information
Economy contracts in second quarter
Statistics Canada (StatCan) reports that the economy as measured in gross domestic product (GDP) shrank 0.3 per cent in the second quarter of this year (April, May, June) and continued the decline in July. StatCan found “substantial declines in home resale activities and exports pushed real gross domestic product (GDP) down 0.3 per cent in the second quarter of 2021.” Declines occurred in “exports (-4.0 per cent) and home ownership transfer costs (-17.7 per cent), which include all costs associated with the transfer of a residential asset from one owner to another.”
GDP measures market transactions in money. As such, GDP does not pinpoint problems in the economy or provide any specific information as to a way forward. For example, the fluctuation of business inventories of all manner of goods has a large impact on the GDP. When inventories accumulate, the GDP goes up; when the inventories deplete for whatever reason, the GDP goes down.
StatCan writes, “Businesses accumulated $9.7 billion in inventories, compared with a $6.2 billion withdrawal in the first quarter. The inventory accumulation, which was the major contributor to GDP during the quarter, was led by durable retail goods.” (Chart 1)
Another “predominant contributor” to the GDP is housing, including new construction, renovations and ownership transfer costs. The biggest contributor to GDP is not new construction or renovations, which create new value, but home ownership transfer costs. The “costs associated with the transfer of a residential asset from one owner to another” including the flipping of houses for quick profit, do not produce new housing or new value of any sort. As can be seen from Chart 3, these transfer costs, especially since 2020, have outpaced new value from construction as an element of GDP.
StatCan writes, “Since the third quarter of 2020, housing investment has emerged as the predominant contributor to economic activities and to capital stock — with residential capital stock surpassing non-residential capital stock. Moreover, the average housing investment for the previous four quarters was 17 per cent higher than the average over the last five years.” (Chart 2)
Reading these statements regarding the GDP, one would be surprised to then find out that a large number of Canadians are facing a housing crisis, including homelessness. Such is the detached nature of the GDP statistics. For cartel party politicians to use them to throw mud at their opponents vying for elected positions in Parliament shows how detached they are from the people and the real problems in the economy.
Renewal Update, September 2, 2021
Stop Paying the Rich; Increase Funding for Social Programs!
Big banks report sharply higher quarterly profits
The Marxist-Leninist Party program raises the need for a new direction for the economy. Nothing could illustrate this need more than the sharply higher quarterly profits of the big publicly chartered private banks during the pandemic. Profits for May, June and July doubled from the previous year at the Royal Bank of Canada, Bank of Montreal and the Bank of Nova Scotia. The other three big banks are expected to report similar fat profit increases for their fiscal quarters ending July 31.
Profits at RBC for its third quarter were $4.3 billion, up from $3.2 billion during the same quarter last year. Scotiabank says its latest quarterly profits were just over $2.5 billion compared with $1.3 billion last year. BMO reports third quarter profits of $2.2 billion, up 85 per cent from a year ago.
Some of these increased profits arise from higher bank fees that all banks have imposed during the pandemic. Higher fees have been put on most bank transactions. This includes changes to “preferred chequing” accounts that require certain monthly balances to avoid fees. TD recently raised the minimum balance to avoid fees from $2,000 to $5,000 and its fee for each transaction went from $1.25 to $1.95. Transaction fees usually include the use of Interac debit during a period when cash payments have been discouraged to curb infections from COVID-19.
This gouging of the public is because the essential public service of banking is controlled by powerful private interests expropriating huge profits — all of it sanctioned by governments at all levels who dare claim that this is the proof of a sound economy. They argue that consumer choice is a mark of democratic freedoms. If you don’t like how your bank is gouging you, find another. It is the method they use to keep the people ranting against them but powerless to do anything about it. It is very self-serving.
Renewal Update, August 26, 2021
Renewal Update is the newsletter of the Marxist-Leninist Party of Canada, the electoral name registered by Elections Canada of the Communist Party of Canada (Marxist-Leninist) or CPC(M-L).
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