Bill Hulet Editor


Here's the thing. A lot of important Guelph issues are really complex. And to understand them we need more than "sound bites" and knee-jerk ideology. The Guelph Back-Grounder is a place where people can read the background information that explains why things are the way they are, and, the complex issues that people have to negotiate if they want to make Guelph a better city. No anger, just the facts.
Showing posts with label complexity. Show all posts
Showing posts with label complexity. Show all posts

Wednesday, July 3, 2019

Mike Schreiner Talks About Capitalism

The second part of my interview with our MPP deals with some of the complexities and "nitty gritty" of how he sees our society can make a transition towards a sustainable society. Leadership doesn't just entail telling us where we should be going, it also involves navigating the pitfalls and traps set out to derail our migration to the "promised land".

Mike Schreiner, Guelph's member at Queen's Park.
Image from the GPO website.

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Hulet:  I did some articles about solid waste a while back and was horrified by the upfront and brazen way some businesses were trying to confuse the public and sabotage the Ontario government's attempts to control solid waste. One example were public relation campaigns aimed at people who use coffee pods to tell them that they were recyclable and compostable---they're not. Another example involved businesses spending lots of money to install computerized cash registers that separated out disposal fees from the "cost" of the product---instead of just burying the "eco-fee" in the cost of the product. They also put out advertisements  that didn't include the eco-fees in the listed price---which punished competitors who didn't separate the fees. And---just to add a cherry on the top---got caught charging too much! Another example was where the Stewardship Councils set up by the province to reduce solid waste simply ignored the reason why they were created in the first place and instead produced a report that suggested recycling could be cheaper if garbage collection was privatized.  

In light of all this "jiggery-pokery", I have a question for you. How do you think the Ontario government would be able to "house train" business? The system I refer to above---eco-fees and Stewardship Ontario---were attempts by both Conservative and Liberal government to use "market mechanisms" to make solid waste reduction part of their design criteria. Instead, they just played political games and sabotaged the system. You're a business person, how would you deal with this Tom Foolery?
Schreiner:  Yeah, good question. 
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Indeed, this is a very big issue.

It isn't just about solid waste issues either. Capitalism just doesn't play nice with either science or the public good. And contrary to what many people might think, there is almost always no government agency who's job it is to make sure that businesses "do the right thing". Instead, more often there are rules that say that businesses should hire consultants to do the research and then send the results to a government agency to look at. And, as a recent article in the National Observer points out, there is a conflict of interest inherent in that relationship that can result in pressure being put on researchers to "fudge" the results in a way that benefits the company at the expense of public interest.

One of the very first articles I ever wrote---for the Ontarion, in 1978---was about an investigation that was then going on in the USA into a scientific business named "Industrial Bio-Test Laboratories". It turned out that this company had done the "safety tests" on a huge range of different chemicals for various corporations and had often "fudged" the results in order to make sure that things got on the market, whether they were really safe or not. This included some of the most widely used farm chemicals, ones that my family had routinely used when I was a child. I was enraged to find out that scientists would lie about how safe something was in order to protect their jobs---and that the government had set up a system that was based on this insane conflict of interest. But as the article in the National Observer points out, this problem continues to this day.

Schreiner is just talking about the use of market-based solutions to control large amounts of relatively benign waste. But exactly the same issues apply to the greater issue of how businesses interact with any government regulations. That is, they have a tendency to take them over. Indeed, the phenomenon is so common that it has it's own name in academic research: "regulatory capture". So when you read what follows, remember that some of the issues that Mike identifies don't just apply to cutting down on solid waste, but also things like protecting salmon spawning beds and keeping toxic chemicals out of the water supply.

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One of the things is to design "rules of the game" that enable businesses to profit from "doing a good thing" and have enough "sticks" in place to push them along to do the right thing.  
Part of the problem with the way a lot of market mechanisms are designed---cap-and-trade is an example, Stewardship Ontario is another---is we make the market mechanisms so complicated, and so dependent on industry running them that they don't actually become market mechanisms.  
I think that this happens because government is afraid of "laying it on the line" with people , or, being brutally honest with people who try to hide things. So Stewardship Ontario was a way to try to hide waste management fees and costs. Cap-and-trade is a way to try to hide carbon pricing
One of the reasons I've always promoted individual producer responsibility is to get away from this whole industry-led bureaucratic apparatus like you had with Stewardship Ontario. You just say "industry, you're responsible for the cost of the waste you produce" and those businesses that don't produce that waste will have a competitive advantage in the marketplace.  
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Schreiner is raising an important point here, one that readers should understand. The current system we have with regard to solid waste (amongst a great many other things) is "industry-wide". Businesses form groups---like the "Stewardship Councils"---and they make collective decisions about how they should deal with a generic problem, such as solid waste. That's where regulatory capture takes place. "Individual producer responsibility" is very different. Mike's suggesting that instead of assigning a cost for a generic thing, such as "litter", and asking for the entire packaging industry to come up with a solution (eg: the Stewardship Ontario model), each individual business should have their own individual price associated with their part of the litter problem.

Consider the following scenario. After a particularly "festive and vibrant" Friday night in the city of Guelph, the downtown early-morning cleanup crews decided to do an audit of what gets left on the sidewalks---what percentage of chicken bones, styrofoam clamshells, half-eaten poutine, etc. Using this information, the city then ascertains what percentage of the clean up budget has been spent cleaning up the mess left by customers of which particular business. Then each of those establishments gets a clean up bill, but the amount varies widely based on what percentage of the mess came from their particular business. If this were done, the business models that create the most mess might find out that when the price of cleaning up is subtracted, they actually lose money. At that point, solid waste becomes part of the "design criteria" when each owner is creating a business plan.

The two points he is emphasizing are that businesses need to be individually identified (through the garbage audit), and, there should also to be significant individualized penalties (ie: the variable clean up bill) assigned to individual companies that will cause enough harm that it forces them to change how they do things. 

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From my perspective, the way to sell this to tax payers---and the government hasn't done a very good job doing this---is to be really clear that you are paying for waste right now in your property taxes. A huge portion of property taxes are dealing with waste, and waste management. So essentially, you as a tax payer are footing the bill and giving businesses an incentive to reduce the waste they produce.  
People mention "tax payer revolts"---I think people should revolt against having to pay for industry's wasteful practices. If we actually had full individual producer responsibility laws that, they would produce the incentives to reduce waste.
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This raises a good question. Just how much does Guelph spend on solid waste?

It's not a simple thing to answer. If you've never looked at a city budget, you might be surprised how complex it is. That's because it is possible to organize information in a lot of different ways. For example, many things the city manages are not paid for through taxes, but instead through revenue. The fees we pay for water and sewer, for example, are not taxes but monthly business fees---just like electricity. That means that this doesn't get included in the "tax-paid" part of the budget. More revenue comes through federal and provincial grants. Also, the budget separates out capital expenditures (eg: new buildings) from day-to-day costs (eg: paying the janitor that cleans the floors). As well, much of the budget is designed to aggregate things like labour costs under one heading instead of separating them out into separate departments.

Topping all of this off is the fact that budgets are obviously written in a hurry by people who's primary skill set isn't being able to express themselves clearly and precisely to the general public. Municipal bureaucrats also speak their own bizarre language that can be tremendously hard to understand. To cite one example, I spent quite a few minutes trying to figure out exactly what a "growth vehicle" is in one section---I think it might be a new garbage truck, but I could be wrong.

Solid waste can be particularly thorny to develop a figure for. Consider the following complications:

  • a significant fraction of the waste produced is dealt with by commercial and industrial institutions that have their own private solid waste contractors that by-pass the municipal system
  • there are user fees for people who drop off their own materials---so it isn't all tax-funded
  • recycled materials are sold on an extremely volatile spot market that means that from week to week the city has a wildly varying revenue stream that they add to the operating budget
  • Stewardship Ontario is already paying a significant fraction of the operating budgets of municipal waste systems
  •  the cost of "dealing with waste" isn't just a result of dealing with garbage that's been placed in bins and waiting at the curb---it also involves people in other departments (and other parts of the budget) doing things like picking up litter 

I tried to come up with a number for Guelph, but gave up after fighting with the budget document for about an hour. It isn't that important to the issue at hand---especially as Schreiner is a Member of the Provincial Parliament (MPP) instead of a city councilor. Suffice it to say, the number is significant. But the problem with coming up with a real number is part of that "transparency" thing that our MPP is talking about.

I could be argued that trying to figure out what particular business creates what particular fraction of environmental destruction would be far too much work. That's generally the reaction when people propose things like that. From the point-of-view of management there is some truth to this. But with modern computer technology it really shouldn't be that hard to do the odd audit for things like garbage pick up to find out exactly where the garbage is coming from, and charge businesses accordingly.

Where the real problems would lie, I suspect, would be in the realm of governance. Businesses are parts of interconnected webs of commerce and regulation. Create a new regulation on one node in this structure, and results propagate across the entire system. For example---to continue with the example of downtown pickup after an night of "rich and vibrant" activity in the downtown core---some of the businesses that create the filth are franchises. That means you aren't just dealing with the individual business, but the head office. Even if you have a rare independently-owned and operated business, they often have contractual agreements that lock them into buying specific products in exchange for a better price. Margins can be very tight, and a slight disturbance in "the Force" can make the difference between success and failure.

The old law saying that all beer in Ontario had to be sold in exactly the same type of bottle was a wonderful example of how a sustainable society could be organized. Yet it fell apart after Canada liberalized trade laws with other countries. It was simply against the law for the province to legislate packaging that seemed to give an "unfair advantage" to locally-produced beer. It is still against the law, and I would suggest that similar problems would come into play if Ontario tried to bring in "independent producer responsibility" and tried to make it the foundation of government policy.

The reason why it could work in the past but was legislated out of existence was because of a profound change in technology that led to a profound change in commerce. I once met an old economics prof who told me that when he was young he had an exam question that asked "Why will there never be a national beer company?" The point was that beer was a heavy, low-price product. That mean that shipping it thousands of miles would inevitably add a significant fraction to the cost, which would stop people from buying their suds from anyone else but local brewers.

It was exactly the same with several commodities: beer, soda pop, milk. This mean that there were no national bottlers, which meant that consumers were close to the bottling plants. This made it easy to have returnable bottle laws. The trucks were already going to the stores and homes to drop off the milk, pop, and, beer---why not have them pick up the empties and bring them back at the same time? But once the interstate highways, giant transport trucks, and, cheap diesel fuel came along, you could ship heavy, low price commodities long distances and still stay in business. (Bottled water is simply the latest example of this general process.) All the local soda pop producers, dairies, and, breweries went under, and so did the refillable bottle laws with them. There was a fundamental change in the economic ecosystem, and the laws followed suit.

This isn't to say that individual producer responsibility is a bad idea. It isn't even to say that it shouldn't or can't be done. What I am pointing out, however, is that it is a radical thing to suggest and do. It's also important to remember that governments do radical things all the time. For example, the excellent road system that allows transport trucks to move beer across the continent didn't exist at the end of WW2 (that was a conflict run on railroads.) The government decided to spend a lot of money creating them and in the process dramatically changed various aspects of the existing economy. In the same way, creating a system of "independent producer responsibility" would also be a big, radical, disruptive thing for the government to do---but it could do it. And it would also make radical changes to the economy. 

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I recently went to a panel discussion where an academic and Adam Donaldson joined several people who'd worked at the old Guelph Mercury to discuss local news. One thing that I kinda gagged on was the nostalgic blather about the "halcyon days" of working for the old Merc. I was an outside observer of the paper since the late 1980s, and by the time it folded it was a wan shadow of itself. And most of that couldn't be blamed on the Internet or Google---it had been looted by various "media empires" long before they came along.

The event did get me thinking about what this blog is all about, though. I'm obviously not doing straight reporting. Indeed, even when I try to just do traditional reporting---like this interview with our local MPP---things quickly degenerate into something else. The thing is, however, I would feel like I was only doing part of the job if I just hammered out quotes from an interview. I want to explain context. And that involves looking up facts and expanding the argument as best I can so the implications become explicit for the reader. I can only assume that that's not something that is taught or encouraged at journalism school---because so few reporters ever do it.


That means that I'm trying to do something more than just recreate the sort of reportage that you used to get from the Mercury---even before the junk bond artists looted it. If you think that this is a good thing, then why not subscribe through Patreon or PayPal

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Hulet: So it's not just the fees, it's the transparency as well?
Schreiner: It's the transparency and the simplicity. Part of the problem with things like Stewardship Ontario was that it was a bureaucratic entity that we just pay some money to so we don't want to think about solid waste as a business---and you guys just minimize the amount of fees we're paying. 
And that "quote", is a "market mechanism"?????  That's not a market mechanism. [You can hear the disgust in Schreiner's voice.]
Take Tim Hortons as an example. I don't want to pick on Tim Hortons---I will because I do a lot of roadside clean-up and Tim Horton's cups are one of the things we pick up the most. If Tim Hortons actually had to pay the cost of picking-up all those cups, they'd figure out a way to reduce the number of cups that go into the waste stream. But right now they have no industry incentive to do that---they just give all that money to Stewardship Ontario and don't worry about it. 
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I wrote earlier that I couldn't find a number for how much the city spends on solid waste, but I did find one number on one particular website.

This advertisement comes from the "Adopt A Highway Inc.".
Image used under the "Fair Use" copyright provision.
We've all seen the "Adopt a Highway" signs, but I think it's somewhat useful to stop and think about what is going on. People volunteer to pick up trash that was created by businesses as part of their business model. Isn't picking up the resulting garbage the same thing as if the local restaurant asked for volunteers to wash dishes and wait on tables so they didn't have to pay hired staff?

I suspect that the difference is that somewhere in our minds most of us have bought into the idea that that it was an individual "choice" for a certain segment of the population to throw garbage out of their cars---and you can't blame the business for that, can you? But maybe you can. If all human decisions simply came down to a conscious personal choice (eg: I freely choose to throw this garbage out the window---fully aware of the implications of that choice for all and sundry), why do we have an advertising industry?

Here's a classic television advert that I believe makes my point. What exactly is it trying to tell the public---that their brand of car is the best for mowing down British soldiers? I'd posit instead that it's suggesting that there's something intrinsic to the American psyche that muscle cars appeals to. Driving fast without having to think about hitting wildlife or creating a climate disaster is what it means to be "free". So if you are a patriotic American, buy one of our autos and "stick it to" those elites who want the government to regulate all the "fun" out of your life. 



Here's another example. This Tim Horton's advert appeals to the emotions and myths that Canadians like to tell about themselves. The immigrant dad brought ideas about life over from the "old country" that he tried to impose on his son. But because of way he was welcomed into his adopted country (the white guy giving him a coffee when he first came into the rink to see his son play), he "came around" and adopted "Canadian" values.


The important thing to realize is that you are rarely going to see someone argue that saving the planet is a bad idea. What instead happens is that that ideal gets "drowned out" by some other message. For example, American "FREEDOM!!!!!", or, Canadian "Can't we all just be nice to each other?"

Several times I've been told by professional advertisers that all they do is "help consumers choose between brands", and that their pitches cannot be blamed for having a bigger influence on society. But that is patent nonsense. Businesses build themselves around a specific message such as "convenience" or "caring", and this results in mountains of unnecessary crap.  And it's also patent nonsense to think that a restaurant who's business model is based on maximizing convenience while totally ignoring the environmental consequences---and sending off people in their cars with bushels of trash---has no responsibility for those who take the next logical step and just throw said trash out the window of their speeding death wagon while they look for British soldiers to run over.

This is such a "thing" that Family Guy even did a hilarious fake ad that lampooned the way businesses create ridiculous products that only appeal to our emotions and make absolutely no sense at all. (When I worked at the University I used to have to throw out heaps of sad veggies and fruit that well-meaning event organizers would order---and which often never got eaten---because a) food means you care, and, b) we all know people don't eat enough fruit and veggies, and, c) ultimately most people don't want to eat fruit and veggies at meetings.)



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I think things like re-instituting bottle deposit return programs is an example of that. I think the Brewer's retail has something like a 98% recapture rate---because people have a nickle or dime incentive to take their bottle back. Unbelievable what a little incentive like that can do to reduce waste. 
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I fear that Schreiner is being a bit optimistic saying that the Brewer's Retail is hitting a 98% recapture rate. The figure I found was 80%, which is still pretty good. It does raise the question, however, about what is going to happen with this bottle return system if Doug Ford and his merry band of "enablers" break up the existing "Beer Store" near monopoly. Will every convenience store and grocery be willing to take on the job of paying out deposits and collecting beer bottles and cans, plus wine and liquor bottles too?

This is the nub of the issue. What we call "free market capitalism" is a very strange thing. Contrary to the propaganda that people get force-fed from a variety of sources, it is not "free". In a totally "free" situation, businesses quickly make arrangements to fix prices. As the patron saint of capitalism, Adam Smith, observed:
People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices. (Adam Smith, The Wealth of Nations, Book One, Chapter X, Part II, p. 152.)
A marketplace that's controlled by monopolies and cartels isn't really "free". The reason why we have something like a free market is through government intervention that creates a modicum of real competition.

One example of this is the way the Canadian Radio-television and Telecommunications Commission (CRTC) forces Bell Canada and the cable companies to provide bandwidth to independent Internet Service Providers (ISPs), so you can get decent service at a reasonable price. If they didn't, the only people you could buy access to the internet from would be Bell and Rogers---who would probably charge even more than they do now. (I'm a happy Teksavvy customer.)

So what Schreiner is saying is that society needs to expand the regulatory oversight of government to create a new "niche" where freedom can "invade" the marketplace---such as when the CRTC forced the "wire owners" to allow some new competition in the ISP market. As I pointed out in my hypothetical example of the downtown trash audit, there would have to be government mechanisms put into place before we could create a genuine system of "individual producer responsibility", that would force businesses to make environmental sustainability part of the "bottom line". Please note something interesting here. People often talk about "market mechanisms" versus "regulations" when it comes to developing public policy solutions, but as I've suggested above, you can't really have a market mechanism (or a "free" market at all) without introducing some pretty stringent regulations first. 

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This is probably a good place to stop and let the reader mull things over. I think this post---probably more than any other I've done---shows how complicated government policy can be. Because of the practicalities of the job, politicians have to be very brief in their pronouncements: the ten second sound bite on the news, a couple minutes at the doorstep, five minutes at an "all candidates debate". But still, they are dealing with profoundly complex issues. We voters should at least understand the difficulties people like Schreiner are labouring under as they attempt to do their job.

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Furthermore, I say to you---the climate emergency must be dealt with!

Tuesday, May 21, 2019

Karen Farbridge Interview: Part Three

After talking a bit about housing and development in the last part of the interview, I tried to start some "blue sky" thinking. One of the things that I rarely get a handle on with community leaders is some general sense of how they view the world and the big issues that we face as a culture. Instead, if you follow the news you only get to see how they deal with "one damn thing after another". But how they deal with the here-and-now is often based on how they see the big picture.

The same photo I've used in the other posts.
From a University website, used under the "Fair Use" provision.

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Hulet: Just to expand on the wealth stratification thing---.  Just to set this up. I worked with a lot of young people at the university and it's like they live in a totally different country than I do. The thought of just getting a full time, permanent job with benefits just by applying is just not possible.  At the university to even get hired as a housekeeper you have to go through a temporary contract. For other jobs, people stitch together a bunch of part time jobs and then they have to use their cell phone to keep track of their schedule from one job to another. We call that "precarious work" and the "gig economy". Where's that heading? Can any of these people ever buy a house? Start a family?

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I did some research and found out that my experience at the university is not the same as in the rest of the economy. While temporary work is expanding everywhere, it appears that it is worst in the educational sector---which is where I used to work. Here's a graph from a report by the Parliamentary Library that breaks down temporary versus permanent employment by sector. If you look the sixth bar graph from the top, you'll see "Educational services", which obviously have the highest percentage of temporary positions.

"Permanent and Temporary Employees by Industry in 2017"
From the Parliamentary report Precarious Employment in Canada: An Overview.
Used under the "fair use" provision of Canadian copyright law.

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Farbridge: That income inequality is only getting worse. It's not going the other way. The accelerant is going to be automation. 

Hulet: I'm just asking because I was approached by a politician---several elections ago---to write up some "wedge issues" to differentiate that party from others. I focused on trying to come up with a variety of things that would help these young people in the "precariat". Zero interest in any of them. But I did see that the Liberals under Kathleen Wynne took on one of them---the Canada Pension Plan expansion---and eventually it was expanded to the entire country. She also created the Guaranteed Annual Income experiment.

Farbridge: I think that's the solution. It's a structural solution. I'm sure that there will be some unintended consequences, but there are unintended consequences with our current system.  But I do think that's getting at the core of the issue. 

If you give people---I think it was Mike Schreiner who really hi-lighted this for me. If it is going to be the gig economy, it it is going to depend on people's entrepreneurialism. To be an entrepreneur is fine if you are in a fairly privileged position because you've got to be able to feed yourself while this business, right? If people have that sort of basic income taken care of it frees up their creative capacity to start a new business and that business doesn't have to feed an entire family. It can supplement a family, right? But still add significantly to the local economy and meet a need and deliver good service or whatever it is, right? 

To me the flip-side of the guaranteed income is that it will be more supportive of people being more creative and entrepreneurial. The musician will be able to "make it", right? 

Hulet: I was talking to a tree surgeon who mentioned the Canada Child Benefit---the one that Harper created and Trudeau changed so it was aimed at lower income people. He said that it was tremendously important to him when he was starting his business. It allowed him to keep in business when he was just starting up and he was wondering if he would make a go of it or not. And that is considered a "guaranteed income" too.

Farbridge:  Yeah. A bit of one. As is the Old Age Security, right? It's not as if we don't have some elements of it. 

The other side of it is just the administration that's behind so many of our social programs.

Hulet: The problem is that we will have to increase taxation.

Farbridge: Not necessarily. That's not what the research that Hugh Segal and some senators did on Guaranteed Annual Income. And a number of years ago the reform party was a big advocate of a Guranteed Annual Income because it got rid of the administrative costs. For them they thought it was going to be less costly. It would remove a lot of costs---so it's not necessarily more expensive. 

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It's important to understand a significant distinction between two things that often get lumped together: guaranteed minimum income, and, universal basic income. People routinely lump the two together, but from what I've seen the two things support very different public police objectives. 

The key difference between the two is that a universal basic income goes to every citizen in the nation, whereas a guaranteed minimum income is given out based on a means test. It might seem odd that anyone would suggest that Bill Gates, Elon Musk, and, Warren Buffet should be paid money from the government, but that proponents are trying to do two things by making the project universal. First, they are trying to build broad-range support among the entire community. Second, they tend to be people who focus on the issue of dismantling the entire edifice of the welfare state. That is, if everyone is getting a cheque from the government, why do we need employment insurance, welfare, disability pensions, etc?

In the past there have been other innovative policies that suggested that a lot of money could be saved by changing from one way of doing things to another. For example, in the 1960s there was a concerted effort to shut down mental hospitals and "deinstitutionalize" the mentally ill. On paper, this was a good idea as these complexes cost a lot of money and were dreadful places to live. The idea was that if the giant facilities were shut down the money saved could be used to set up more human-sized facilities like group homes and outreach programs that would be better at helping people with psychiatric issues. Unfortunately, what happened is that the politicians focused on "saving money" and ignored the bit about "redirecting resources to new facilities". The result is that guy "with issues" who begs on Wyndham Street and sleeps under the bushes along the river. It's tremendously important that the same thing doesn't happen again. 

In contrast, the guaranteed minimum income simply involves setting a financial "floor" below which no one is allowed to fall. If you make less than it, the government simply sends you the difference so you have money for rent, food, etc. 

We can understand these issues by looking at the history surrounding the "baby bonus". After World War Two the government decided that they didn't want a recreation of the Great Depression, so they designed social policies to help returning servicemen and to redistribute money through the economy. One of them was something like a universal basic income for children. This was the "baby bonus", which gave each parent a set amount of money for each child under a certain age. (When I was young, it was said to be enough to keep them in shoes.) 

It was done away with under Brian Mulroney, but something similar was brought in under Stephen Harper. In 2015 it gave parents $160/month for children under six years of age, and, $60/month for children between six and seventeen. The key point to remember is that this was a universal income program---if you were a billionaire, you still got the money.

After the Liberals assumed government in late 2015, they changed it into a guaranteed income program. That means that the amount you get is based on how much your family makes a year, and, how many children it has to support. For example, if your family income is less than $30,450/year you will get $541/month for a child under six, or, $457/month for a child between six and seventeen. (I won't get into the complexities of multi-child households.) 

As you can see, from the two different programs, if you stop giving money to middle-class and wealthy parents, it frees up a lot of money for people who are really struggling. This is why it's really important for people to understand the difference between these two types of programs!

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This whole post is dealing with complexities. The world is a really complex place and if we are going to have any hope of understanding what is going on around us, we need to get some grasp of what's going on. Businesses routinely subscribe to information digests---like the Back-Grounder---to cut through the fog that comes in when you get all your news from the daily press. But most people don't know about these things because subscriptions are generally really expensive and they hide behind solid pay walls. They aren't meant to be general interest publications, but they are a very successful part of a news media that is in free fall everywhere else. I'm trying to create an information digest for ordinary voters. 

The Back-Grounder isn't meant to be something that you consume like the nightly news or a daily newspaper. It's supposed to be like the old journals that were bound and saved for future reference. And as such, it can have a lot more influence than just a daily, ephemeral news source. But that sort of thing requires people who are willing to pony up money to support it. The Back-Grounder will never hide behind a pay wall, because what it is about is of importance to all voters. But we need to build a culture where people---and institutions, maybe your union, political party, or, other group would be willing to buy a subscription---financially support the sort of thing I'm doing here. So if you can afford it, please consider supporting the work I do through Patreon or toss something in the tip jar. Even small donations---if regularly supplied---can make a difference. 

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Hulet: I have a sneaking suspicion that what underlies a lot of the problems our society faces boils down to things just being too darn complicated.

What I'm doing with this blog would not be possible five years ago. There wasn't enough info that I could access on line to be able to do research that way, and I wouldn't be able to propagate it, and I wouldn't be able to advertise it before social media. I've got the this groovy second-hand phone that is better than the best tape recorder I could afford before---.

But every time you have something that magnifies your ability to do something the economy and society adapts to it. And it starts off as this wonderful force multiplier---to use a military term---then it quickly becomes a necessity and if it's not there you're screwed.

We have this gig economy now because we can and now the whole society has to have the gig economy or else everything would all fall apart.

Farbridge: As the technology is developed, so much more responsibility is off-loaded onto individuals, right? Just take banking. You used to go into your bank and you would go to your teller, and your teller would manage everything for you. Now you have to manage your on-line account, your passwords. It's become more complicated than what it used to be, right?

Hulet: As I turn into my grandparents---I ramble, I forget things, words---I miss the teller who would say "Oh don't worry Mr. Hulet, we'll take care of that".

Farbridge: I think there'll be a new service of people who help you manage your on-line activity. 

There's so many layers to all this. For example, I have to stay at hotels, I have this Starwood Rewards Card, right? So I get a notice---and I'm just one of a lot of people who use this in the Marriott chain---that there'd been a major hack and data breach. And they didn't just get phones and emails; they got credit cards and passport numbers---they got it all. For identity theft. So then the company gives you---I'm sure they're trying to be helpful---a half a dozen things that you can do to protect yourself. I thought "Hang-on, it was your data breach, right?"  I've got to do all these things now? I've got to sign up for a service that will track my info on the "dark web" and let me know if my data is being sold to anybody. 

And I've got to do this, and I have to do that---??? That's complicated---for a stupid little rewards card that maybe gave me some points---so maybe I got bumped to a bigger room?

[Karen laughs in exasperation.]

And that become normalized. Maybe that's what you're saying. And we don't even recognize the increase in complexity. 

Hulet: You're a very smart person---you've got a Phd, you've "turned the wheels of governance" for a city. I have a master's degree. What about people who aren't intellectuals, who just do some mindless job and want to watch the Leafs on tv after a tiring day's work? I can hear them thinking when they see something like this "What? What am I supposed to do?" "Dark web---what the Hell is that?"

Farbridge: Well, I'm not going to do it. I just deleted the email and I'm just going to have to take my chances on this one because I'm not going to add that extra layer onto my life. It'll probably lead to something else, right? 

Have you read Sapiens? [Sapiens: A Brief History of Human Kind, by Yuval Noah Harari] It's the first part of a trilogy, a history of intelligence in humans, "sapiens", from it's dawn to today. The other two books are Homo Deus: A Brief History of Tomorrow and 21 Lessons for the 21st Century.

Yuval Noah Harari. Photo by  ×¢×¥×‘עיר.
Public domain image c/o Wiki Commons. 

In Sapiens he has a very compelling line where he says---ge
tting to your point about complexity---that we keep layering on these things thinking that they are going to make life easier but they just end up making life more complicated. 

He starts with agriculture. Moving from being a hunter-gatherer was supposed to be so positive, but it had all sorts of negative consequences. That's one of several examples. 

He says we're not very good---once we are in "It"---at being able to step out and say "Is this really working for us?"

[Karen chuckles.]

We're just on a path---a trajectory, right? 

Hulet:  I don't know if you heard the interview between Michael Enright and Gwynne Dyer on populism. [It's here, at 1:02:03.] He said we're going through a transitional stage. Part of that is this populism that's popped up like leprosy all over the body politiic. The more I look at the world the less I see any conscious activity. As you say, no one's asking "What's going on here?" Everyone is just running in their own little hamster wheel---. It's a headless monster being created by all our own individual drives. 

The hamster wheels go faster all the time and I wonder that even if we lived in a socialist utopia we'd still all be living wretched lives just because of the complexity. 

I'm just wondering if this manifests itself in a city's inability to deal with housing, transit, and, all these other problems that manifest themselves. Environmental issues too. Dyer thinks we're just going through a phase. 

Farbridge: Definitely we're in a transition. Jeremy Rifkin  talks a lot about us being in a third industrial age, and that there are three parts to it: transportation, energy, and, communications

Jeremy Rifken, photo by Stephan Röhl.
Public Domain image c/o the Wiki Commons. 

The first industrial revolution was steam power---the locomotive and the printing press. The next one was centralized electricity, cheap oil and gas, the television, the telephone. That sort of thing. Now we're into renewable, localized energy, autonomous vehicles, and, the Internet. 

The industrial age was very disruptive for people at the time. The next one was disruptive to certain people. And this one is too. 

So I agree that there is this sort of thing going on---it's just that the speed and the size of the population accelerate the potential risks:  climate change. 

I do think that we're in the energy transition regardless of climate change. The main thing is that this energy transition will lead to a lower carbon future. The question is "Can it be accelerated fast enough to make a difference?"

&&&&

Hulet: I was encourage to hear one of the speakers on today's CBC Current talking about mobilizing to a "war economy" to deal with climate change. I though "Hallelujah---that actually made it onto the CBC!" I can remember giving that talk to Guelph Council 20 or 30 years ago.

Farbridge: My first talk to Council on climate change was in 1994. You might have been one of the other delegations. I know I wasn't the only one. I know Maggie Laidlaw was there too. 

Anyway. I still have the text of that talk and I could give it today and it wouldn't be dated or embarrassing. That's a sad thing.

&&&&

Hulet: What are you doing now? 

Farbridge: I chair the Meridian Credit Union Board, and I chair a subsidiary of the Meridian. So that's a big chunk of my time.

Hulet: So the Meridian is a big deal---it's not just a local credit union?

Farbridge: Yes, it's across the province. It's the 3rd largest credit union in Canada, with $20 billion in assets. We have a leasing company and a national digital bank. I'm doing stuff for Meridian every week. It's not just me dropping in every once in a while for a board meeting.

Another thing that I do is consulting work. I'm in five communities right now. I develop and deliver the engagement program in Oakville and Brampton for them to develop a community energy plan. And then in New market---do you remember GEERS
[Guelph Energy Efficiency Retrofit Strategy]---they're still talking about it here. But New Market's doing their version of it. I do the engagement for that process.

The engagement part is just translating the data and analytical work into something people can actually adapt to it.


Hulet: You mean staff? Or the general public?

Farbridge: Staff, public, various stakeholder groups, yup.

And that sort of work will go into Windsor as well. And then I work in Vaughn doing a project. I work with a number of collaborators in the community energy planning space. At universities---York university in particular, Guelph, and then some organizations as well---some not-for-profit organizations too. So I identify barriers to the energy transition and community energy planning and where we need to address those barriers.

The project in Vaughn is looking at financing tools and doing a risk assessment for municipalities. Municipalities are concerned about risk---that's been a barrier moving forward. So we go in and engage in a workshop around identifying what the real risks are and how do we mitigate them.


Hulet: So it sounds like the community energy initiative has become a real movement.

Farbridge: Oh, totally. There's 300 of them across the country. We were one of the first in 2007---now there's 300 community energy plans. I would say right now we're getting into the second wave of sophistication---both on the engagment side and on the analytical side.

Hulet: Another thing that was started in Guelph---

Farbridge: And is dead here.

[Farbridge laughs.]

Hulet: Dead here, but taken up everywhere else.

Farbridge: We're still widely recognized for leading it. Those are examples of projects I'm working on.

I'm part of a group that's developing a three day professional development course for land use planners around community energy planning. That will be offered through York University as a class, but part of it will also be offered on-line.

It's interesting where we got our funding for that, it was the IESO (the Independent Electricity Supply Operators) gave us most of the money to develop that course. Then the electricity distributors associations and, then the Federation of Canadian Municipalities has given us extra money to put more of it on line and make it more accessible across Canada. 

As you said, it's a movement, it's a wave. A lot of stuff going on and then I'm the vice chair of QUEST (Quality Urban Energy Systems of Tomorrow.) That's a national organization promoting community energy planning across the country. 

Hulet: That's encouraging. I was kinda depressed when I did my story about the district energy hubs

Farbridge: I get to do a lot more about community energy now than I did when I was mayor. I was just a champion for it here---I wasn't working on it. Eventually all this stuff will come back here---but we will have missed a lot of opportunities. 

Hulet: The district energy systems. Is anyone building those?

Farbridge: Yes.

Hulet: So there is a chance that they will come back in Guelph?

Farbridge: The assets are still there. There were people who wanted to buy them. But the city wouldn't even take their calls. Because this didn't fit the narrative, right? If they were such a terrible idea, why is the private sector wanting to buy them, right?

Windmill [the company that the city is partnering with to develop the Baker Street lot for the new library]---the density is high enough to connect the district energy hub to what they're proposing. So maybe there's an opportunity for them to buy the assets that are downtown and broaden the system for their project. 

At some point someone will come in with a plan. It's just harder to retrofit---we've missed all the Metal Works condos. Once the heating and cooling is in place it's at least 20-30 years before it's time to replace existing plants. 

Will it include a hook-up to the downtown district energy system?
An artists's impression of what the Baker Street project might look like.
Photo from the Windmill site, used under the Fair Use provision of the copyright Act.

&&&&

Furthermore, I say to you---climate change must be dealt with!