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Western societies must stop the spread of Marxism

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7 minute read

From the Fraser Institute

By Ross McKitrick

The point is not to improve, it’s to destroy. Think of any tradition or institution that has thus far escaped attention from woke radicals and make a note. Within a year you will learn it too is under siege.

Recently in this paper, Jordan Peterson diagnosed the psychological grip woke activists have on ordinary people, urging conservatives to move beyond the slogan “It’s the economy, stupid” and start fighting the philosophical battles at hand. I would argue the economic and philosophical problems originated in the same place—the seminal text of political economy, which became the handbook for bad economics and the woke movement alike. Put simply, it’s the political economy, stupid.

I speak of The Communist Manifesto by Karl Marx and Friedrich Engels. Published in 1888 it opens with the simplistic declaration: “The history of all hitherto existing society is the history of class struggles. Freeman and slave, patrician and plebeian, lord and serf, guild-master and journeyman, in a word, oppressor and oppressed.” In the rigid oppressor/oppressed scheme, which is the heart of woke ideology, everyone is either tyrant or victim, not based on one’s choices but by the accident of historical circumstances. If you are an oppressor, you can never be anything else.

And, most ominously, everything that’s contributed to historical oppression, including all customary civil rights and social institutions, must be destroyed and replaced with a new centrally-planned society. According to Marx and Engels, “the theory of the Communists may be summed up in the single sentence: Abolition of private property.” To abolish private ownership is to abolish all individuality, replacing it with uniform group identity under the control of a totalitarian state.

And they didn’t stop there. They called for abolition of all forms of free buying and selling, all rights of inheritance, family structures, religion, private industry, parental control over education, etc. They called for the centralization of banking, industry, agriculture, all means of communication and all forms of transportation into the hands of “the State,” by which they meant themselves and their allies. “In short, the Communists everywhere support every revolutionary movement against the existing social and political order of things,” they declared. “They openly declare that their ends can be attained only by the forcible overthrow of all existing social conditions.” (emphasis added)

It was through this tortured logic that Marx and Engels convinced their followers to gain power through force, strip people of their rights and impose brutal totalitarianism. After all, what we call “civil rights” and “personal freedoms” were merely the means by which oppressors have historically exercised power. Neither Marx nor Engels nor their allies asked whether their cure might be worse than the disease. Having declared that society is nothing but oppressors exploiting the oppressed, and having declared themselves the true Advocates for the oppressed, they were duty-bound to destroy society and impose what they called “communism,” an empty word that turned out to mean nothing more than them and their fellow lunatics taking charge.

Once you understand that every institution on which society has hitherto rested, down to motherhood and milk, is a target for overthrow, today’s woke revolution makes sense. The point is not to improve, it’s to destroy. Think of any tradition or institution that has thus far escaped attention from woke radicals and make a note. Within a year you will learn it too is under siege.

The 20th century taught us that Marxist theory is false and toxic, but once it takes root it spreads quickly, including in places where people believed “it couldn’t happen here.” From 1945 until the collapse of the Soviet Union in 1990 at least half the world lived under Marxist dictatorships. Why would such an odious doctrine become popular in so many societies? How can it be stopped once it begins to spread? After the fall of communism, we in the West stopped asking those questions, and forgot how to answer them.

Marxist doctrine spreads because the “oppressed” gain instant status and power without the need for personal virtues or accomplishments. The idea holds appeal, but only to our most selfish and cruel instincts. The oppressed become exempt from criticism, and come to believe they’re entitled to take everything the so-called oppressors have, by force if necessary, or to burn the whole system down for revenge.

The only remedy for this cult-like mindset, what Elon Musk called the “woke mind virus,” is to teach people a healthy and proper loathing of victim status. The young must be taught old-fashioned values of self-reliance and individual accountability. Coddled adults who embrace cultural Marxism and its seductive promise of victim status might eventually tire of its grim nihilism, but until they do they must not be allowed to exploit or misappropriate the compassion decent people feel towards genuine victims of oppression.

Peterson is right that the underlying battles are philosophical and psychological. Many people will only become engaged when cultural Marxism begins to destroy the economy, as eventually it must. Anyone who wants to prevent another outbreak of the political and psychological horrors of the Maoist and Soviet empires must recognize the lateness of the hour and equip themselves accordingly.

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Honda deal latest episode of corporate welfare in Ontario

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From the Fraser Institute

By Jake Fuss and Tegan Hill

If Honda, Volkswagen and Stellantis are unwilling to build their EV battery plants in Ontario without corporate welfare, that sends a strong signal that those projects make little economic sense.

On Thursday, the Trudeau and Ford governments announced they will dole out an estimated $5 billion in corporate welfare to Honda so the auto giant can build an electric vehicle (EV) battery plant and manufacture EVs in Ontario. This is the third such deal in Ontario, following similar corporate welfare handouts to Volkswagen ($13.2 billion) and Stellantis ($15.0 billion). Like the previous two deals, the Honda deal comes at a significant cost to taxpayers and will almost certainly fail to create widespread economic benefits for Ontarians.

The Trudeau and Ford governments finalized the Honda deal after more than a year of negotiations, with both governments promising direct incentives and tax credits. Of course, this isn’t free money. Taxpayers in Ontario and the rest of Canada will pay for this corporate welfare through their taxes.

Unfortunately, corporate welfare is nothing new. Governments in Canada have a long history of picking their favoured firms or industries and using a wide range of subsidies and other incentives to benefit those firms or industries selected for preferential treatment.

According to a recent study, the federal government spent $84.6 billion (adjusted for inflation) on business subsidies from 2007 to 2019 (the last pre-COVID year). Over the same period, provincial and local governments spent another $302.9 billion on business subsidies for their favoured firms and industries. (Notably, the study excludes other forms of government support such as loan guarantees, direct investments and regulatory privileges, so the total cost of corporate welfare during this period is actually much higher.)

Of course, when announcing the Honda deal, the Trudeau and Ford governments attempted to sell this latest example of corporate welfare as a way to create jobs. In reality, however, there’s little to no empirical evidence that corporate welfare creates jobs (on net) or produces widespread economic benefits.

Instead, these governments are simply picking winners and losers, shifting jobs and investment away from other firms and industries and circumventing the preferences of consumers and investors. If Honda, Volkswagen and Stellantis are unwilling to build their EV battery plants in Ontario without corporate welfare, that sends a strong signal that those projects make little economic sense.

Unfortunately, the Trudeau and Ford governments believe they know better than investors and entrepreneurs, so they’re using taxpayer money to allocate scarce resources—including labour—to their favoured projects and industries. Again, corporate welfare actually hinders economic growth, which Ontario and Canada desperately need, and often fails to produce jobs that would not otherwise have been created, while also requiring financial support from taxpayers.

It’s only a matter of time before other automakers ask for similar handouts from Ontario and the federal government. Indeed, after Volkswagen secured billions in federal subsidies, Stellantis stopped construction of an EV battery plant in Windsor until it received similar subsidies from the Trudeau government. Call it copycat corporate welfare.

Government handouts to corporations do not pave the path to economic success in Canada. To help foster widespread prosperity, governments should help create an environment where all businesses can succeed, rather than picking winners and losers on the backs of taxpayers.

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Taxpayers criticize Trudeau and Ford for Honda deal

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From the Canadian Taxpayers Federation

Author: Jay Goldberg

The Canadian Taxpayers Federation is criticizing the Trudeau and Ford governments to for giving $5 billion to the Honda Motor Company.

“The Trudeau and Ford governments are giving billions to yet another multinational corporation and leaving middle-class Canadians to pay for it,” said Jay Goldberg, CTF Ontario Director. “Prime Minister Justin Trudeau is sending small businesses bigger a bill with his capital gains tax hike and now he’s handing out billions more in corporate welfare to a huge multinational.

“This announcement is fundamentally unfair to taxpayers.”

The Trudeau government is giving Honda $2.5 billion. The Ford government announced an additional $2.5 billion  subsidies for Honda.

The federal and provincial governments claim this new deal will create 1,000 new jobs, according to media reports. Even if that’s true, the handout will cost taxpayers $5 million per job. And according to Globe and Mail investigation, the government doesn’t even have a proper process in place to track whether promised jobs are actually created.

The Parliamentary Budget Officer has also called into question the government’s claims when it made similar multi-billion-dollar handouts to other multinational corporations.

“The break-even timeline for the $28.2 billion in production subsidies announced for Stellantis-LGES and Volkswagen is estimated to be 20 years, significantly longer than the government’s estimate of a payback within five years for Volkswagen,” wrote the Parliamentary Budget Officer said.

“If politicians want to grow the economy, they should cut taxes and red tape and cancel the corporate welfare,” said Franco Terrazzano, CTF Federal Director. “Just days ago, Trudeau said he wants the rich to pay more, so he should make rich multinational corporations pay for their own factories.”

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