The Parallel Parliament

by Glen Pearson

Tag: consumers

The Real Creator of Jobs

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IN RESPONDING TO NICK HANAUEER’S observation that “the pitchforks are coming,” one of the .01% noted that the democracy has successfully “tamed” the masses, to the point where violent responses to growing economic inequality are no longer likely.

One wonders what that person must think of the millions marching in the streets of Paris in response to a brutal attack on Charlie Hebdo, or the hundreds of thousands marching in streets across the world seeking change in the world’s financial system. These demonstrators might not carry rudimentary weapons like pitchforks, it’s true, but on the other hand, armed with smartphones, websites, petitions, cameras, and powerful texting abilities has meant that they can actually enter into the consciousness of the world in ways never seen before.

Hanauer understands the distinction, saying forcefully that modern revolutions come gradually, then suddenly. He believes his financial peers just don’t get it, despite all their supposed acquired intelligence.

But his greatest frustration is reserved for just how unnecessary it all will be.

“If we, the elites, do something about it, if we adjust our policies in the way, say, Franklin D. Roosevelt did during the Great Depression – so that we help the 99% and preempt the revolutionaries and cries – that will be the best thing possible for us rich folks, too. It’s not that we’ll escape with our lives; it’s that we’ll most certainly get even richer … My suggestion to you is: Let’s do it all over again. We’ve got to try something. These idiotic trickle-down policies are destroying my customer base. And yours too.”

It was when he realized this that Hanauer decided he wanted to try changing the conversation. He calls it “middle-out economics,” and it’s compelling stuff. It simply asserts that if workers have better jobs and more money, businesses have more customers.

In this he hits on a great truth that has been overlooked. The financial elite is fond of saying that governments don’t create jobs. Well, if recent years are any indication, neither do corporations. It is, in fact, middle-class consumers, not rich businesspeople, that are the true job creators. When businesses have more customers, they require more workers to fill the demand. It is a thriving middle-class that created the rich, not the other way around. Endanger that middle-class and it’s inevitable that fabulous wealth will prove fleeting.

Hanauer is compellingly effective when exposing the underlying fallacies of elite assumptions. For those calling for smaller government, it will never happen, he claims, if so many people keep falling through the cracks. “You have to reduce the demand for government and that hasn’t happened under conservative Republican leadership – in each case, the size of government and debt has mushroomed under their watch.” He isn’t trying to be partisan, he maintains, but it should be obvious to all sides of the political spectrum that the more people out of work or facing financial insecurity, the greater will be the call and need for government intervention and support. It’s inevitable.

Governments are in the crosshairs of the 1% not because they are big or small, but because they can legislate regulatory control and nothing scares the wealthy class more. And so the assault on government continues. Yet despite this reality, Hanauer believes that both the right and left sides of the great political divide are slowly finding common ground on the need for a common approach to save capitalism from itself. “Perhaps that’s one reason the right is beginning, inexorably, to wake up to this reality as well,” he says. If he’s right, then unbridled capitalism doesn’t have much time left. In the next post we’ll examine if politics can actually begin to formulate a plan to pull it all back from the brink.

The Seven Billion Kilogram Dilemma

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WHEN THE LONDON FOOD BANK HAD ITS FIRST city-wide food drive back in 1986, we were told to expect between 40-50,000 pounds. We weren’t fully prepared for the over 200,000 pounds that came in. Those fire stations charged with receiving the donations were swamped and an extra warehouse had to be located to store all those supplies collected over 10 days.

As a city, we were new to this kind of initiative and much of the food was past its due date. We heard from many folks that they just wanted to help and that they just cleaned out their cupboards and refrigerators of items that had been in their stocks for months. It was a lesson for all of us. For those of us leading the effort, we needed to do a better job of communicating what kind of supplies were required. And for citizens themselves, there was the need to be more selective in what they would donate. We learned those lessons and the generosity of the London community has never waned.

Yet I never forgot that experience and how abundant food is in Canada. Maybe that’s part of the problem. In those early years of food banking we learned that Canadians threw out one-sixth of their food without it ever leaving the package. Landfills were full of otherwise edible foodstuffs. Sadly, it’s a practice that has changed little in three decades.

A report released last summer, with support from London’s Ivey Business School, determined that Canadians toss out 7 billion kilograms worth of edible food each year – roughly 15 billion pounds of food in 12 months. In dollar terms, that $27 billion.

The waste happens everywhere – farms, stores, markets, and processors. Yet, over half of the waste occurs in Canadian households. There’s no point in trying to lay blame – we all share it – but the real culprit lies in our eating and shopping habits. We have grown used to have numerous choices of various products and we often overstock just because it’s so attractively placed and sometimes on sale. We desire it to look good and most often select only that perfect-looking item – anything with a blemish can get tossed. We’re just so used to it and there always seems to be enough unblemished stuff. Farmers and others along the food chain often adopt similar patterns because it’s what consumers demand and that’s what drives the economy.

Except it shouldn’t, and we all know it. It’s one thing to grow and process good and healthy products and to eat well, but it’s another to accept a system that is predicated on waste. Habits die hard, and when it comes to food, Canadians have become habitual creatures.

We are also pretty good with numbers, so here’s a telling one. That 7 billion kilogram figure means that we toss out one kilogram of food for every person on this planet. For a nation and a people founded on the principles of social justice, it means it is time once again to live up to those ideals.

Next post: What Can Be Done About It?

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