For Canadians: A Heads Up on Elections in the USA

Here are a few things to keep in mind while watching the news from south of the border on this year's federal elections. That's right, I was once a U.S. citizen, at university I had a major in political science/political economy, and while living in Washington D.C. I was close to the John F. Kennedy camp. Long ago.  

(1) Voter turnout in the USA is quite low by the norms of modern liberal democracies. In non-Presidential federal elections, it tends to be near 35%. In Presidential elections it is around 50%.

(2) In recent elections, the trend has been for a drop in voter support for the Democrats and an increase in support for the Republicans. In the 2014 off year (non- Presidential) federal election, the Republicans won 51% of the vote for members of the House of Representatives and the Democrats won 45%.

(3) The Republicans have a firm control on the House of Representatives, 247 to 188 seats. They also control the Senate, 54 seats to 46. They now appear to be the majority party.

(4) In the four state primary elections prior to Super Tuesday (March 1), there has been a significant increase in voter participation in the Republican primaries and a decline in participation in the Democratic primaries.There are nineteen states which have "open primaries" where a person can vote for a party without being a member. In 2015 26% of American voters registered Republican, 30% Democrat and 43% declared that they were Independent. Bernie Sanders is the most popular candidate among Independents, who won't vote in the major primaries, like California and New York.

(5) Hillary Clinton is expected to do well in the primaries in the Southern states, which the Democrats do not normally win in the general elections. A good example is South Carolina, where blacks are in the Democratic party as the Republican Party, which completely dominates the state, is seen as the White Man's Party.

(6) As of this date, it looks like Donald Trump will most likely be the Republican candidate for President. There is no moderate alternative. Ideologically, Ted Cruz and Marco Rubio are not that different. Trump's stand against undocumented immigrants from Latin America is popular as is his stand against Muslim immigrants. He has also taken a strong stand against the free trade agreements and the loss of good jobs to Asian countries, and this is also a very popular position.

(7) The powers that be in the United States are united in their opposition to Bernie Sanders, even though several polls show he would be the best bet to defeat Trump in the federal election. Polls indicate that many people do not like or trust Hillary Clinton. Check out the results posted on Huffington Post. http://elections.huffingtonpost.com/pollster#favorability-ratings

(8) There is a movement among the younger Bernie Sanders supporters to pledge that they will not vote for Clinton. For good reason, they are angry at the way the Democratic Party structure is backing Clinton.

(9) In a contest between Trump and Clinton, I would not be at all surprised to see Trump the winner.

Leamington, Ontario: Growing Tomatoes in the Era of Free Trade

H. J. Heinz plant in Leamington

Southwestern Ontario is the historic home of Canadian tomato growers. The bulk of the crop goes to processing, and since 1909 the dominant corporation had been H. J. Heinz, a food giant based in Pittsburgh. But in 2013 the Heinz Corporation was bought by Warren Buffett’s Berkshire Hathaway (26%) and 3G Capital (51%), based in Brazil. It was soon announced that they were planning to close their plant in Leamington. The story has been a snapshot of what has happened to the manufacturing industry in Ontario following the free trade agreements with the United States.

The free trade economy
In 1988 Canadians were informed that their government, headed by Brian Mulroney, had been negotiating a free trade agreement with the U.S. government. The push for this had come from organizations representing big business and finance on both sides of the border. The Action Canada Network was formed, representing many democratic organizations who opposed the free trade agreement with the United States. Along with many Canadian political economists, they warned that given the reality of Canada’s branch-plant economy, any free trade agreement would likely lead to many plants closing and their operations moved back to the United States. But Canada’s political leadership pushed through the “New Economic Constitution of North America,” as U.S. President Ronald Reagan termed it.  Over the next 25 years Ontario communities saw factory after factory shut down. The food industry was not immune to this development.

The “free trade agenda” is part of the new political economy commonly known as neoliberalism, a return to the open free market system that existed before the Great Depression and the social democratic governments that dominated the political agenda for thirty years following World War II. The liberal package included the repeal of `populist`national policies which were aimed at promoting domestic manufacturing, the privatization of state owned enterprises, deregulation of the economy, reversing legislation which protected workers`rights and trade unions, cuts to social programs and the repeal of progressive tax systems designed to promote greater equality. 

The goal of the organizations representing the corporate sector was to increase their rate of profit. They wanted the right to produce anywhere in the world, sell their products anywhere, and not be subject to any government controls on the movement of their products or capital. In more recent years, with the world economy characterized by overproduction, excess capacity and limited profitable investment opportunities, the corporate sector has sought to open investment opportunities in all areas of the public sector, including health, education, social services, social housing and government services.

Free trade comes to Leamington

Tomato harvest near Leamington

  In 2013 the new owners of Heinz announced that they were going to shut down the plant in Leamington. 3G Capital had a reputation for taking over companies, laying off many workers, and putting top priority on raising the profit ratio. Warren Buffett, the other major partner in the new ownership, said that the Canadian plant was `not efficient`: it relied on fresh tomatoes grown in Canada, bypassing cheaper tomato paste that could be imported from producers in Mexico and elsewhere.

Was there an alternative? Sam Diab, the plant manager at the Leamington operation, found several investors in the Toronto area and put forth a plan to keep the plant open and operating.  Changes had to be made to continue production under the free trade model.

(1) There would be a major downsizing in the plant`s operation. The regular work force would be initially reduced from 740 to 250. The workers, primarily women, were represented by a trade union, United Food and Commercial Workers. Production workers who kept their jobs would see their hourly wages reduced from $25 to $16. The union accepted the changes as there was no alternative.

(2) The business in its new form survived because of a regulation under the Canadian Agricultural Products Act. This specified that tomato juice sold in Canada must be made from fresh tomatoes and not paste. Heinz had 50% of the Canadian tomato juice market and did not want to give this up. They negotiated a five year contract with the new owners, now known as Highbury Canco. Business interests complained that this type of “trade distorting regulation” was supposed to be eliminated under the terms of the existing free trade agreements. Such regulations will likely be eliminated if the Trans-Pacific Partnership (TPP) free trade agreement is ratified.

(3) The number of tomato growers has declined since the plant changed ownership. In 2013 Heinz had contracts with 119 tomato growers; that was down to only 10 in 2015. The tonnage of tomatoes grown in this area of Ontario declined from 555,092 in 2012 to 432,175 in 2015. There remain two other tomato and vegetable processor in the region, ConAgra Foods, a U.S. food giant  in Dresden, and Canadian-owned Sun-Brite Foods which is located near Leamington. Vegetables are also processed in Quebec by Bonduelle North America, a French corporation.

(4) Highbury Canco wants to expand the company`s production by introducing a new class of tomatoes, to be called “industrial paste.” They argue that this could add an additional 250,000 tons of tomatoes and 25 - 30 more growers. Farmers who lost their contracts have had to switch to corn-soybean production, with lower returns. Of course, tomatoes in this new fourth class would bring farmers less money, as the industrial paste would be sold bulk to other processors at a discount. Regular tomato paste in 2014 brought farmers $110 per ton. The company argues that the new class would bring farmers at least $95 per ton, the paste price in 2013.

(5) Standing in the way of total free trade in this case would be the Ontario marketing boards. The Ontario Farm Products Marketing Commission has not approved the introduction of a new fourth class of industrial paste tomatoes. Neither has the Ontario Processing Vegetable Growers. They do not have the economic power of the supply management marketing boards (like milk, poultry and eggs), but as marketing agents they do have considerable influence. They are there to provide some power for farmers when negotiating with agribusiness. Corporate interests, and their liberal academic supporters, expect that the Trans-Pacific Partnership agreement will eventually put an end to the influence of farmer-controlled marketing boards.

(6) In order to try to keep businesses in Canada, governments have increasingly offered them subsidies. Leamington granted Highbury Canco subsidized municipal water and re-assessed the value of the plant, cutting their property taxes in half. The city council abolished all development charges for building construction. The provincial government “invested” $2.5 million in Highbury Canco to help it expand production lines. Such practices have become a normal part of business under free trade. Most people are aware of the huge subsidies that are given to automobile corporations.

What is it like to work in a manufacturing corporation operating under the new free trade, free market regime? Of course workers were not happy when their wages were cut as at Leamington. But they lined up to work at the new plant as there were very limited alternatives.

We can get an idea by looking at the comments posted by workers at the Kraft Heinz plant, as reported at .www.glassdoor.ca. “Previous company was good to work for but not 3G.” “Deep cost cutting.” “New 3G culture . . . very focused on the bottom line.” “Was great place to work . . . until 3G/Heinz merger.” “Daily grind, week after week.” “Great people and horrible Senior Management.” “Go back to Brazil, please.”

Conclusion
The experience of the tomato industry in Southwest Ontario is a case study of manufacturing in Canada under the new free trade regime. As the democratic opposition warned, the free trade regime has resulted in a major loss of manufacturing plants and good jobs in Canada. It is widely expected that the new Trans-Pacific Partnership will only make matters worse.

There is also a new factor on the horizon: climate change. As weather systems become more unstable and destructive, a crisis is expected to develop in the production and distribution of food. There will be greater pressure on Canada to expand our own production of food, especially fruits and vegetables. It is likely that we will need to move to a production system similar to that used during World War II, with significant government intervention. This would be the opposite of the free trade model. A growing crisis will provoke a new political struggle.

Keynes is Back!

On Monday I tuned in to the CBC to listen to the first public speech by Bill Morneau, the new Minister of Finance in Justin Trudeau’s Liberal government. The speech was given to the Toronto Region Board of Trade for the benefit of the Bay Street crowd. I have to admit, that I was favourably impressed.

Bill Morneau and Justin Trudeau

Morneau is a very successful Toronto businessman with a very good academic background in economics. Of all Trudeau’s cabinet appointments, this was the one which concerned me the most. Morneau had also been chairman of the C. D. Howe Institute, a right wing pro-business “think tank” that is firmly committed to the agenda of free trade and the free market economy.

Morneau remarked that at his first meeting with a group of government economists he sat alone across a long table facing a dozen of them. When he stated that the new Liberal government would not put a high priority on balancing the budget, he reported that smiles broke out among those across the table. They knew full well that the Canadian economy is going through a very rough period, and with the collapse of the markets for oil and minerals, the immediate future was not all that great. As a result, the weakened economy was providing all governments with less revenues.

The Bay Street crowd heard Morneau report that there will be a string of budget deficits, and they were starting with a $3 billion deficit left by the Conservative government of Stephen Harper. But the goals of the new government started with restoring economic growth. The Liberals would proceed with their promise of major government spending on infrastructure, a pledge of $125 billion over a decade. The tax cut for the middle class would also boost spending and help create jobs.

Despite their campaign promise, an annual federal government deficit could possibly exceed $10 billion. The plan was to revive the economy so that the debt-to-gross-domestic-product ratio would be reduced. The hope was to be able to balance the federal government’s budget by 2019, the year of the next election.

There would be no structural adjustment policies. Instead, the economic policies identified with John Maynard Keynes would drive the agenda. The Liberals could see the complete failure of the alternative, the structural adjustment programs pursued by European governments.

To top it off, Morneau’s presentation was outstanding. He was very clear in both English and French. He gave a well organized speech without consulting notes or reading a text. He looked straight at the audience and spoke with conviction.

What happened to the New Democrats?

Thomas Mulcair and the NDP

In contrast, there is the disaster of Thomas Mulcair and the New Democratic Party. What happened? At the beginning of the 2015 election campaign, the polls showed support for the NDP was slightly ahead of the other two parties. An NDP-led government seemed possible.

In his first speech to the Bay Street crowd, given at the Economic Club of Canada on June 16, 2015, Mulcair made it very clear that his social democratic party stands strongly for balanced budgets. This was the tradition of NDP provincial governments in Canada, he argued. Special praise was given to the Saskatchewan NDP  government of Roy Romanow, who came to office in 1991, balanced the budget and paid down the provincial debt. No mention was made of the fact that this was done by slashing health and social programs and raising consumption taxes which fell heaviest on those with low incomes.

Mulcair noted that there was one exception to this tradition: the Ontario NDP government headed by Bob Rae, who, he noted, had turned out to be a Liberal. Bob Rae’s NDP government confronted an economic recession in 1990-1 by cutting taxes on low income earners, raising taxes on those with higher incomes, and expanding a range of social programs designed to assist the weaker members of society. His government and its policies were praised by a long list of Keynesian economists.

Then came the shock from Quebec. In June 2015, in the middle of the election campaign, journalists in Quebec posted a video clip from the Quebec legislature, a speech Thomas Mulcair made in 2001, when he was a member of the provincial Liberal government. Mulcair praised the free market policies of Margaret Thatcher, criticized the Labour governments in Great Britain for “putting their nose in everything” while declaring that “government interventionism is a failure.” He declared: “let the free market thrive and get off the backs of businessmen and women.”  He was also very critical of the trade union federations in Quebec for their politics of the left, backing the Parti Quebecois. Mulcair brushed this off. He refused to say he had been wrong. 

Looking to the Saskatchewan NDP
Mulcair’s NDP was determined on this issue. In August 2015 he chose Andrew Thomson, former NDP finance minister in Saskatchewan, to be a star candidate in the Ontario riding of Eglington-Lawrence. Thomson had been elected to the Saskatchewan legislature in 1995 while Roy Romanow was premier. When Lorne Calvert became NDP premier Thomson joined the cabinet, serving as finance minister in 2006 and 2007.

Thomson is best known for his determination to reduce the province’s royalties on the oil and gas industry. He also cut corporate taxes and corporate capital gains. He took substantial amounts from the Financial Stabilization Fund – a pool of revenues held in the bank by the government, termed “a rainy day fund” – in order to balance the provincial budget. Thomson was used by Mulcair to stress the NDP’s commitment to their primary election promise, to run four straight balanced budgets. They would do what Stephen Harper’s government could not.

Recent public opinion polls show that Canadian support for the Trudeau Liberals stands at 52%. Support for the NDP stands at just 14%. It appears that Mulcair is in full control of the party, as he has announced that he expects to lead the NDP in the next federal election. So far there is no indication that there is any opposition to Mulcair within the federal NDP caucus or party.

It seems to me that the Canadian electorate made the right choice in the recent federal election. The Harper gang is gone, and the large majority of Canadians are happy with that. But it also appears that they made the right decision when they shifted their support from Thomas Mulcair to Justin Trudeau. With the world experiencing economic stagnation, Keynes is the correct road to take, not structural adjustment.

I Am Not Dead Yet

Our farm at Bulyea.

What happened? I have not posted on my blog since last June. That would seem to suggest that I am no longer around. But I am still here. However, I have been negligent in letting my readers know what is happening. I do have some excuses, but they may seem a bit lame.

The Farm
At the farm this summer, I once again had to face the problem of flooding and my inability to win the war with the beavers. We would take the major dam down, and they would just build it up overnight. There were too many beavers around, and the eradication process was unsuccessful. We made some tries.

The beavers have built a huge lodge in the lake which has formed in our back yard. Beaver experts (trappers) who have seen it say it is the largest they have ever seen. You cannot use dynamite any more since the events of September 2001. Then there once was the old tried and true farmer explosives made from ammonia nitrate and diesel fuel. Again, it is not a good idea to use this method for it will likely bring down the forces of law and order on your head.

So we went to the local gun shop and bought the latest explosives for destroying beaver dams and lodges. It is a chemical mix which comes in a relatively small plastic jar. The ingredients are carefully mixed simply by rotating the jar which is then placed on the dam or lodge. At a distance of more than 100 yards you shoot the jar with a 22 rifle. I checked it out on the Internet, and videos show that it is supposed to work. The experts do get impressive results.

Not having a good 22 rifle, I asked a farmer I know who does a lot of hunting to help me out. He obliged. We launched his fishing boat in our back yard and paddled out to the beaver lodge. The new lake at this point is about six feet deep. We set the plastic jar with the explosives, paddled back to shore, and my friend got out his 22 rifle with long rifle shells and a scope. A few shots that he took hit the jar, it jumped up, but did not explode.

So we went back in the boat to see what happened. One shell went right through the jar and out the back, but no explosion. We agreed that it probably did not go off because there was not enough force behind the shell. My friend went home and got his deer rifle and we tried that with a new jar of supposedly explosive materials. However, his scope was off and at that distance he failed to hit the jar after about 10 rounds. So we put off further action until next spring.

In addition
In any case, day to day coping with the flooding, and work finishing off the bathroom in the renovated residence,  took a great deal of my time over the summer and fall. I have also been doing research on my new project, the impact of climate change on agriculture and food. I have done quite a lot research and written drafts, but to date I have not published any of it.

I returned at the end of October to Peterborough, Ontario where I will be spending the winter; I will return to Saskatchewan and the farm in early April 2016. Right now I am reconstructing my web page, and the new program I am using is much more complicated that the one I originally used, and it is taking me a lot longer to learn how to do the work. But I will be done soon, and in early January I will once again be posting on my blog. If you are on Facebook, you will see that I am still commenting on the world of war and political economy.

The big change                                                                                             

Saskatchewan Wheat Pool No. 1, Bulyea

Stephen Harper and his gang of mean spirited conservatives are gone. He told an American right wing group one time that “you will not recognize Canada when I am finished.”  He tried his best to move Canada into the right wing conservative camp. But Canadians are basically middle of the road liberals who are not really interested in making the rich richer and getting tough with the poor. While the large majority of Canadians come from a Christian background, most want to have a generally secular society. The mainstream is not interested in fundamentalist religions and their politics. It seems to me that the majority of Canadians are satisfied to just follow along with the Americans as long as the Democrats are in office.

I am one of the solid majority of Canadians who are quite happy that Stephen Harper and his gang are gone and has been replaced with a modern liberal. Right now I am enjoying the Justin Trudeau honeymoon. I am actually quite pleased with the people he has put in the cabinet, especially the women. They are such a contrast and improvement over what we just experienced. .It is going to be a pleasant Christmas this year. The new Trudeau seems to be ready to lead and has indicated that his government is going to do what it pledged in the election campaign. His government will find the money to provide adequate support for the 25,000 political refugees from Syria. As he has said, “Canada is back!”

This is all bad news for the New Democratic Party which is stuck with Thomas Mulcair as leader. He is too much of a neoliberal. They are now down to 14% in the polls. The only way they are going to recover is to get rid of Mulcair and move back to being a traditional democratic socialist party. It wouldn’t hurt if they shifted to being an anti-war party.

In Saskatchewan there will be a provincial election in April 2016. The NDP has a very weak,  neoliberal leader, who follows the precedent set by Roy Romanow, Lorne Calvert and Dwaine Lingenfelter. All across the advanced capitalist world, electors are turning against the social democrats for moving to the right to embrace the neoliberal agenda, including structural adjustment policies. Until the Saskatchewan NDP faces up to this reality, they will be a weak opposition. They are down to 30% in the polls and are currently looking at another major defeat in April.   

Why We Need Good Libraries

For the past two years I have been researching the impact of climate change on food and agriculture. The other day I searched the University of Regina Library for five serious books that I wanted to read. They had none of them. I checked out Amazon, and of course they had them, but the cost of the books ranged between $100 and $200. It is not at all unusual to find that the science books cost even more – up to $400 to $500. That’s why we need good libraries.

However, the trend across Canada is for libraries to buy fewer and fewer books. Some seem to have virtually stopped five or ten years ago. Libraries are also getting rid of books, or putting them in warehouses where access if very difficult. I noticed last year in Peterborough that I was almost the only person in the stacks at Trent University looking for books. Everyone else was on the Internet, which apparently has all the info that anyone needs to have.

Then of course there is the Stephen Harper government which is shutting down and destroying science libraries and research programs. Book burners.

The Library of Congress

Main Reading Room, Jefferson Building.

Here is a real library, from Margaret Truman:

“The Library of Congress ... houses more than 115 million ‘items’ on 532 miles of bookshelves in three large buildings: more than 17 million books. ... There are 2 million recordings, 12 million photographs, 4 million maps and 47 million manuscripts. ..The LC has holdings in 460 languages. It has four thousand employees, some of whom serve overseas in offices in Rio de Janeiro, Cairo, New Delhi, Islamabad, Jakarta and Nairobi, in acquisition offices in Moscow and Tokyo.” (Yes, I am re-reading her Murder at the Library of Congress.)

The LC has a huge staff of professionals and scholars whose job it is to search anywhere in the world for good collections and try to acquire them. Even purchase them. But then, the USA is the centre of the unipolar world.

I am pleased to report that when I was a graduate student in Washington, D.C. I worked full time in the LC, 1957-61. I started working in the stacks, then moved up to the Reference Department in the Main Reading Room of the Jefferson Building, the only one at the time. From there I advanced to the Manuscripts Division, where I worked in the Presidential Papers section. It was charged with cataloging all the Presidents’ papers which were part of the LC collection. I worked as an Archivist-Historian on the papers of Grover Cleveland, Calvin Coolidge and Abraham Lincoln. Not a bad job, eh? Left it to join the U.S. Foreign Service and work at the Department of State.

What is Really Going on in Ukraine?

On June 10, 2015 the Pew Research Center, based in Washington, D.C., released the results of a major public opinion poll it had undertaken on the conflict between the US/NATO west and Russia over the conflict in Ukraine. The poll results, ignored by the mass media in the NATO countries, presents a picture that is quite different from that of our mass media and our political leaders.

Ukraine right demonstrates

Canadians might not be surprised to learn that public support by Russians for President Vladimir Putin has soared to 88% and the view of Russians toward NATO and the west has plummeted. Support for Putin’s policies towards Ukraine stands at 83%.

In contrast, support for the US/NATO policy on Ukraine has been falling among the general public in the six European NATO countries surveyed. The strongest opposition to the US/NATO policy is in Germany. For example, in the NATO countries surveyed only 41% supported sending military aid to Ukraine, with only 19% support in Germany.

Even more surprising, only in Canada and the USA did a majority of those surveyed support sending military forces to defend a NATO member if engaged in a military conflict with Russia. The lowest support for such action was in Germany at 38%.

The survey taken in Ukraine excluded Crimea, now once again a part of Russia, as well as the Eastern Oblasts of Luhans’k amd Donets’k, the centre of military conflict. Overall, the survey revealed increased hostility to Russia and a greater belief that the future of Ukraine is with the European Union and NATO.

However, the survey revealed growing majority opposition to the government in Kiev, which has had strong support from the governments of the United States, Canada and NATO. The economy is in collapse. Only 3% of those surveyed said the economy was “good” while 66% said that it was “very bad.” Over the past year support for the NATO-backed government has declined substantially. The Pew poll found support for the Kiev regime at only 32% with 59% having a negative opinion.

Only 33% of those surveyed approved of the performance of President Petro Poroshenko while 43% disapproved. The poll found that 60% disapproved of the performance of the Prime Minister, Arseney Yatsenyuk. 

On  President Poroshenko’s major government policies

* 57% disapproved of the military conflict in the east,
* 57% disapproved of the policies towards Russia,
* 61% disapproved of the policies towards corruption in government, and
* 62% disapproved of the general economic policies.

For Canadians the most important question was how to solve the situation with the rebels in the Eastern Oblasts. The Petroshenko government has refused to negotiate with the rebel governments. They have insisted on a military solution. NATO claims that it supports the Minsk agreement for a negotiated solution, but member states are beefing up military support to the Kiev regime. Both the President and the Prime Minister have made very disparaging comments about the people living in the Eastern oblasts who speak Russian as their everyday language. At the same time,  Putin has made it very clear that Russia will not allow the Kiev regime to crush the rebels, and this position has very strong popular support among the Russian public. If the Kiev regime were able to more successfully pursue the civil war, Russian military intervention would be expected.

It is here that the Canadian government and the opposition political parties are out of step with public opinion in Ukraine. The Pew poll found that 47% in Ukraine support a negotiated settlement and only 23% support the Kiev government’s military solution. A much better policy would be for the Canadian government to support a negotiated solution to the conflict and the proposals by the Eastern rebel governments for modifications in the existing Ukraine constitution.

NOTE: This first appeared as a guest comment in the Leader Post.

Is Democracy Possible?

     It seems to me that the rich and powerful have managed to convince a large majority of the people around the world that there is nothing they can do to change or even influence their governments. We face the prospects of a dire future with climate change, and everywhere majorities want their governments to take action. But they refuse. People want cuts to military spending and a halt to endless wars. But it goes on. In Europe, majorities want policies that promote employment, but everywhere governments demand more austerity programs. The growth of inequality of income and wealth continues unabated; people want much more egalitarian societies, but governments refuse to change the status quo.
    The other day the new Syriza government in Greece proposed a few very moderate social policies designed to help the poor and the unemployed, but the European Union vetoed the legislation. In office, it is hard to see any difference between the parties which formally represent big business and the social democratic parties which used to represent the common people. Do countries and their governments have any sovereignty today?
    The political elite everywhere seems to be firmly on the side of the big international banks and the other financial institutions. In the USA, the Federal Reserve created $4.5 trillion through quantitative easing (printing money) and it all went to the big banks, not to the people losing their homes. The newly created capital also served to push up the stock markets.

The official view of democracy
    Our political scientists declare that democracy is giving citizens the right to vote in elections every four years. Governments increasingly declare that democracy exists when there is a free market economy. The Anglo-American version of this liberal version of “representative democracy” normally produces governments which have a majority of seats in the legislature even when they receive less than 40% of the votes. Elections are deemed to be legitimate where voter turnout is less that 50% of the citizens.
    What do kids learn in school? How many know that the British parliamentary system, like we have in Canada, was designed for a time in history when the government was run by a very small group of rich white men? How many understand that the US system of government was founded on the liberal model  where the goal was to prevent the development of democracy?

Election day in Greece January 2015

Democracy requires mass, direct participation
    Modern democracy first developed in Athens and other Greek city states. If you go back and read some history, you will quickly discover that Greece at this time (500 - 300 B.C.) was characterized by continuous class war between the oligarchs, the large land owners who used slave labour to produce the products and profits, and the democrats, almost all of the rest of the people, the small farmers, serfs, artisans, and the few free labourers. This was a pre-industrial era, with a very small proletariat.
    Of course, in a fundamental way these societies were not really democratic. Slaves did not have the status of citizens, but they could buy their freedom, and some were able to do so. The people who were not born in Greece, the metics, were denied citizenship status.  Then at the very bottom were women who had no citizenship rights; they were the property of men, and those married to the oligarchs were confined to the house. It appears to be the case that the only prominent women were courtesans.
    Nevertheless, Athenian democracy grew as the growing popular classes challenged the oligarchs. Final legal authority rested in the Assembly; its decisions could not be overturned by some non-elected court or high official. It consisted of all the citizens, met 40 times a year, and had a quorum set at 6,000. Decisions were made by a majority vote of all citizens present. When the oligarchs were in power, they tried to change the balance of power by setting property qualifications for citizenship.
    There were also the law courts. The judges in the courts were chosen by lot from all the citizens, and they were changed each year. The top ten generals in Athens were elected. The armed forces were a citizens’ militia. The oligarchs were able to fill most of the state’s administrative positions because most of the popular classes could not take these positions because they had to work for a living. The democrats forming government responded by introducing pay for government work.
    As we know, Greek democracy was repressed by the local oligarchs, often with the support of armed forces from other cities or foreign states. Then democracy was suppressed by the Macedonian empire followed by the occupying Roman empire. The first attempt to create a democratic society and state was replaced by various versions of rule by the propertied classes.

What can we do?
    This is the big political question. In the January 2015 election Greece became the first major state where the population stood up and said “we have had enough.” The turning point, I believe, was when the unionized working class, which had historically supported the social democrats (PASOK), decided to break with tradition and shifted their support to the progressive, democratic left.
    Across Europe all of the governments and mainstream political parties, including the social democratic formations, have stood firmly with the capital class. They insist that there is no alternative to the neoliberal model. If this first attempt to move towards a democratic state and society is to survive, it needs strong support from its political and ideological allies, beginning in Europe.