Subtitle: Why didn't the CCCE "chide" Harper on Income Trusts?
Why is the CCCE so concerned about the ”policy chaos” over rules governing the environment? Why are they “chiding” the Premiers?
Speaking of chiding, where was the CCCE on the flip flop on income trusts and the chaos that policy enured? Isn’t the CCCE concerned about the resultant banana republic nature of Canada’s capital markets in the eyes of foreign investors, not to speak of Canadians saving for their own retirement? How can a capital market operate efficiently or fairly when a Prime Minister promises one tax regime and then delivers another? Retroactively no less, causing a permanent loss of $35 billion in hard earned investment capital? And offers no proof whatsoever to support the policy reversal? That is the act of a rogue government in the hands of a rogue Finance Minister. Or perhaps the rogue Finance Minister is actually in someone else's hands?
Meanwhile the CCCE remains deaf silent. Silence is complicity for a group that considers itself so powerful and so well populated by Canada’s great capitalists who routinely comment on virtually every development in this country.
I think Tom D’Aquino and his cohorts at the CCCE need to read the book entitled: “Saving Capitalism from the Capitalists”. How will Canada ever hope to become competitive on the world stage by destroying the investment vehicle that affords Canadian businesses of all sizes with a low cost form of capital and Canadians with an investment vehicle that suits their investment goals? The CCCE are proponents of a buggy whip economy and bespoke tax policies that coddle the status quo.
Saving Capitalism from the Capitalists is a non-fiction book by Raghuram Rajan and Luigi Zingales of the University of Chicago GSB. The full title of the book is: Saving Capitalism from the Capitalists: Unleashing the Power of Financial Markets to Create Wealth and Spread Opportunity.
The book is neither a defense of pure laissez-faire capitalism, nor is it an anti-capitalist polemic. Instead, the authors develop the following arguments in the book:
* The free market is the form of economic organization most beneficial to human society and for improving the human condition.
* Free markets can flourish over the long run only when government plays a visible role in determining the rules that govern the market and supporting it with the proper infrastructure.
* Government, however, is subject to influence by organized private interests
* Incumbent private interests, therefore, may be able to leverage the power of governmental regulation to protect their own economic position at the expense of the public interest by repressing the same free market through which they originally achieved success.
* Thus, society must act to "save capitalism from the capitalists" -- i.e. take appropriate steps to protect the free market from powerful private interests who would seek to impede the efficient function of free markets, entrench themselves, and thereby reduce the overall level of economic opportunity in society.
Question: Why does the outline of the book “Saving Capitalism from the Capitalists" so remind of this Globe article?
Income-trust crackdown: The inside story
November 2, 2006
“High-profile directors and CEOs, meanwhile, had approached Mr. Flaherty personally to express their concerns: Many felt they were being pressed into trusts because of their duty to maximize shareholder value, despite their misgivings about the structure. Paul Desmarais Jr., the well-connected chairman of Power Corp. of Canada, even railed against trusts in a conversation with Prime Minister Stephen Harper during a trip to Mexico, and told him he should act quickly to stop the raft of conversions, according to sources.”
Answer: Maybe its because Paul Desmarais Jr. is a Vice Chairman of the CCCE along with his industry colleague Dominic D'Alessandro of Manulife who had the most to gain by eliminating the competitive financial product known as income trusts.
Just think of them along with the CCCE as the "incumbent private interests who were able to leverage the power of governmental regulation [under the easily coerced Harper] government to protect their own economic position at the expense of the public interest by repressing the same free market through which they originally achieved success."
Sunday, January 27, 2008
Posted by Fillibluster at 10:41 PM