My fellow lobsters, we are being cooked.
I know some of you don’t believe it and others have come to the conclusion there is nothing we can do, but the simple truth is the gas has been turned on, the fire lit and the temperature is slowly rising. There is no significant disagreement amongst our lobster pot scientists about these basic facts. In fact the latest study argues the water is much hotter than previously thought. Our only way of avoiding the rolling boil is to come up with a plan to turn the gas off and then take the steps necessary to implement that strategy. But, as individuals we cannot claw our way to a solution. Lobsters of the world we must join together.
Here are 10 things we can do to start:
10. Read Naomi Klein’s new book This Changes Everything — Capitalism vs. the Climate. This is a great way to become informed about the problem and what to do about it. Klein offers a comprehensive, thoughtful, witty and sometimes personal analysis of how we can still save the planet, if enough people put their minds and bodies into the project. The book is an absolute must-read for every environmentalist and everyone who has ever challenged the status quo.
9. Help create and strengthen local food systems. Build and participate in self-sustaining regional economies. Demand governments get rid of “free trade” agreement language that prevents this or limits measures that would reduce global warming.
8. Escape the clutches of the private automobile. Walk, take public transit, ride a bike, join a car share and demand cities that thrive on human energy in a sustainable relationship with nature. Understand there is a better, healthier life waiting if we evolve beyond homo automotovis. Read Stop Signs — Cars and Capitalism on the Road to Economic, Social and Environmental Decay by Yves Engler and Bianca Mugyenyi, an entertaining and enlightening road trip through a car-crazy world.
7. Spread the word that human beings are part of nature and do not have dominion over it. Learn from aboriginal peoples around the world about our place in the environment.
6. Support alternative energy sources. We must quickly replace all carbon-based energy with alternatives, a project that is doable. The barrier is not technological but rather economic and political. The only reason burning fossil fuels is currently cheaper than wind, solar or geothermal is because the carbon-based fuel sector does not pay for the real cost of its emissions.
5. Assert the principle that polluters must pay for all the negative consequences of what they put into the environment. We must calculate the price of repairing the damage caused and add this to their cost of production. Not paying the true cost of production is, in effect, a subsidy. Ending that subsidy will leave most of the fossil fuel industry uneconomic.
4. Get off the consumption treadmill. Every time you think about acquiring more stuff or buying more services ask yourself these questions: Do we really need this? Is this good or bad for the environment? To answer these questions objectively we must understand and combat the marketing/advertising system that twists our emotions and desires to mould us into the sort of consumers that make the most profit for multinational corporations.
3. Elect and support governments that take global warming seriously. Without that we have little hope of success. To ensure that the governments we elect really do what is best for people and our planet rather than what is good for the rich and powerful, we must end the power of money to control politicians.
2. Work to change our current economic system, which is the ultimate source of the problem. We must construct an economy based on human need rather than capitalist greed. The foundation of this new economy must be an understanding that our most basic human need is a safe and healthy environment. To ensure that our economy works for the benefit of all it must be democratic and inclusive, rather than run by and for a wealthy minority.
1. Become part of a mass movement to make all of the above happen. We must come together to say no to any further expansion of carbon extraction. We must blockade the carbon industry into extinction. To succeed we must build a grand coalition of all those who are fighting for a better world. This means environmentalists finding common cause with the union movement, First Nations, poor people, poor nations, liberation movements, anti-capitalists, and with all those who do battle against the many forms of inequality.
Lobsters of the world unite, you have nothing to lose but the chains that keep you on the stove.
Gary Engler
Workers suffer while rich profit from oil sands fever
27 DecA clear diagnosis of the Oil Sands fever variant of Dutch Disease may be just what the doctor ordered to rally Canadian workers in the fight against global warming.
A rapid increase in natural resource investment and revenue usually drives up a nation’s currency. This generally makes other industries less competitive and can greatly weaken a country’s manufacturing base.
Widely known as the “Dutch Disease” (named after a period of rapid expansion of the natural gas industry in the Netherlands), this well established economic paradox has become a taboo subject in this country. Canada’s highly class-conscious elite is worried that manufacturing workers might make common cause with environmental groups and even some business sectors to challenge the carbon/profit bomb known as the tar sands.
A recent Pembina Institute/Equiterre report titled Booms, Busts and Bitumen argues that Canada’s economy is facing “Oil Sands fever”. The study points out that the Bank of Canada believes one-third of the Canadian manufacturing sector’s decline has been caused by a more expensive dollar, which rose alongside the price of oil from $.61 US in 2002 to $1.10 US in 2007 (and has hovered near par since). The study concludes that 40% to 75% of the currency increase has been caused by rising commodity prices, principally oil.
The higher price has led to a boom in production and export. Between 2002 and 2012 energy grew from less than 13% of total Canadian exports to over 25%. And if plans to double tar sands production over the next decade are realized, this dependence will increase.
A February Canadian Centre for Policy Alternatives study gives a sense of the jobs impact of Oil Sands fever. The Bitumen Cliff notes: “The forestry sector lost close to 30,000 positions. And the manufacturing industry, of course, haemorrhaged nearly a half-million positions. For every new job created in the petroleum sector during the past decade, 30 have been lost in manufacturing. Across all of the export-oriented goods industries… net employment declined by almost 520,000 jobs in the past decade.”
While the precise job toll is debatable, the rapid growth in tar sands exports has undoubtedly hurt manufacturers.
Despite the obvious link between tar sands expansion, a higher dollar and a decline in manufacturing, corporate sycophants denounce any politician or established organization that draws attention to the relationship.
Federal Leader of the Opposition Tom Mulcair was aggressively attacked for raising the issue as was former Ontario Premier Dalton McGuinty. In response to the Pembina/Equiterre report Financial Post editor Terence Corcoran called the mainstream Pembina Institute “off-kilter … fomenter of oil sands phobia … keen on triggering a nation-splitting debate over the oil sands.” For his part, Sun Media’s Lorne Gunter wrote: “Left-wing environmentalists should just come clean: they hate the oil industry, they hate profits and love big government.”
Both Corcoran and Gunter cited a recent Canadian Manufacturers and Exporters (CME) study lauding the tar sands. It notes: “In recent years, much of the discussion linking the oil sands with manufacturing has included so-called ‘Dutch disease,’ with any supposed relationship being characterized as inherently negative. While the effect of the rising dollar has impacted the competitiveness of the Canadian manufacturing sector, especially exports, the underlying problem was poor labour productivity, lack of diversity among customers, and lower rates of overall capital investment. While increased investment in the oil sands may have strengthened the Canadian dollar, it is by no means the root cause of the challenges faced by Canadian manufacturing. Rather than having a negative impact on Canadian industry, the oil sands are providing a customer base for manufacturers.”
While most sane people would argue it makes little sense for the lobbying arm of Canada’s export-oriented manufacturers to dismiss oil-fuelled currency increases that have added 5, 10 or 30 percent to their costs, the CME is a highly ideological institution. When environmental or labour regulations add a few percentage points to their costs it goes berserk. For instance, before Parliament ratified the Kyoto Protocol in 2002 the CME claimed that reducing greenhouse gas emissions 6% from 1990 levels by 2012 would cost the country 450,000 manufacturing jobs. (Perhaps CME researchers should check to see if they didn’t mistake a minus sign for a plus symbol since the trashing of Canada’s Kyoto commitments through tar sands expansion has contributed to significant job losses in manufacturing.)
The CME tends to represent the voice of its biggest members, many of whom have plants in other countries. They can shift operations to lower-cost jurisdictions or use the threat of moving jobs to force wage and benefit cuts.
But that’s only part of the explanation for the CME’s pro tar sands position. That organization is in fact a mouthpiece for capitalists who are more widely invested than ever before and thus less wedded to particular firms. Without too much difficulty they can move their capital from lower margin to higher profit industries. It’s all about chasing profits and damn the negative consequences for workers.
In recent years the tar sands have been a major source of profit making. The Parkland Institute estimates that oil sands operators realized pre-tax profits of $260 billion between 1986 and 2011 (the public owners of these resources received less than 10 per cent of that sum). Over the past decade Canadian resource companies’ profit margins have nearly doubled the service, manufacturing and “nonfinancial” sectors of the economy. According to a late 2011 calculation, the market capitalization of fossil fuel companies on the Toronto Stock Exchange topped $379 billion.
The boom in tar sands profits and stock prices clearly benefits leading Canadian capitalists. A recent Canadian Business magazine profile of the “100 richest Canadians” explains: “Collectively, the individuals on the Rich 100 are worth $230 billion, more than the total gross domestic product of many countries in the world, including New Zealand, Ireland and Portugal. And this year has been one of their best ever. Their combined net worth surged by more than 15% … While the actual economies of Canada and the U.S. aren’t faring particularly well, so long as the U.S. Federal Reserve maintains its stimulus program, stock markets will tick higher.”
The “100 richest Canadians” – and the rest of the 0.01% of top shareholders who control most corporations – dominate corporate lobbying associations such as the CME and they also have significant influence with many think tanks, university departments and news outlets. Like their wealthy patrons, these institutions tend to back whatever generates the most profit (that’s the point of capitalism after all). As a result, there’s little interest in discussing the deleterious job impacts of Oil Sands fever.
But environmentalists and union activists should be making common cause by explaining how tar sands profits that go to the rich and powerful cost Canadian workers hundreds of thousands of jobs. Expansion of the tar sands and the resulting bouts of Oil Sands fever may be good for capitalists but it will further weaken the job market and do great harm to Canadian workers.
Yves Engler
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Tags: Dutch Disease, economics, environment, tar sands, unions