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Western societies must stop the spread of Marxism

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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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New Analysis Shows Just How Bad Electric Trucks Are For Business

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From the Daily Caller News Foundation

By WILL KESSLER

 

Converting America’s medium- and heavy-duty trucks to electric vehicles (EV) in accordance with goals from the Biden administration would add massive costs to commercial truckingaccording to a new analysis released Wednesday.

The cost to switch over to light-duty EVs like a transit van would equate to a 5% increase in costs per year while switching over medium- and heavy-duty trucks would add up to 114% in costs per year to already struggling businesses, according to a report from transportation and logistics company Ryder Systems. The Biden administration, in an effort to facilitate a transition to EVs, finalized new emission standards in March that would require a huge number of heavy-duty vehicles to be electric or zero-emission by 2032 and has created a plan to roll out charging infrastructure across the country.

“There are specific applications where EV adoption makes sense today, but the use cases are still limited,” Karen Jones, executive vice president at Ryder, said in an accompanying press release. “Yet we’re facing regulations aimed at accelerating broader EV adoption when the technology and infrastructure are still developing. Until the gap in TCT for heavier-duty vehicles is narrowed or closed, we cannot expect many companies to make the transition, and, if required to convert in today’s market, we face more supply chain disruptions, transportation cost increases, and additional inflationary pressure.”

Due to the increase in costs for businesses, the potential inflationary impact on the entire economy per year is between 0.5% and 1%, according to the report. Inflation is already elevated, measuring 3.5% year-over-year in March, far from the Federal Reserve’s 2% target.

Increased expense projections differ by state, with class 8 heavy-duty trucks costing 94% more per year in California compared to traditional trucks, due largely to a 501% increase in equipment costs, while cost savings on fuel only amounted to 52%. In Georgia, costs would be 114% higher due to higher equipment costs, labor costs, a smaller payload capacity and more.

The EPA also recently finalized rules mandating that 67% of all light-duty vehicles sold after 2032 be electric or hybrid. Around $1 billion from the Inflation Reduction Act has already been designated to be used by subnational governments in the U.S. to replace some heavy-duty vehicles with EVs, like delivery trucks or school buses.

The Biden administration has also had trouble expanding EV charging infrastructure across the country, despite allotting $7.5 billion for chargers in 2021. Current charging infrastructure frequently has issues operating properly, adding to fears of “range anxiety,” where EV owners worry they will become stranded without a charger.

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Business

Economic progress stalling for Canada and other G7 countries

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From the Fraser Institute

By Jake Fuss

For decades, Canada and other countries in the G7 have been known as the economic powerhouses of the world. They generally have had the biggest economies and the most prosperous countries. But in recent years, poor government policy across the G7 has contributed to slowing economic growth and near-stagnant living standards.

Simply put, the Group of Seven countries—Canada, France, Germany, Italy, Japan, the United Kingdom and the United States—have become complacent. Rather than build off past economic success by employing small governments that are limited and efficient, these countries have largely pursued policies that increase or maintain high taxes on families and businesses, increase regulation and grow government spending.

Canada is a prime example. As multiple levels of government have turned on the spending taps to expand programs or implement new ones, the size of total government has surged ever higher. Unsurprisingly, Canada’s general government spending as a share of GDP has risen from 39.3 per cent in 2007 to 42.2 per cent in 2022.

At the same time, federal and provincial governments have increased taxes on professionals, businessowners and entrepreneurs to the point where the country’s top combined marginal tax rate is now the fifth-highest among OECD countries. New regulations such as Bill C-69, which instituted a complex and burdensome assessment process for major infrastructure projects and Bill C-48, which prohibits producers from shipping oil or natural gas from British Columbia’s northern coast, have also made it difficult to conduct business.

The results of poor government policy in Canada and other G7 countries have not been pretty.

Productivity, which is typically defined as economic output per hour of work, is a crucial determinant of overall economic growth and living standards in a country. Over the most recent 10-year period of available data (2013 to 2022), productivity growth has been meagre at best. Annual productivity growth equaled 0.9 per cent for the G7 on average over this period, which means the average rate of growth during the two previous decades (1.6 per cent) has essentially been chopped in half. For some countries such as Canada, productivity has grown even slower than the paltry G7 average.

Since productivity has grown at a snail’s pace, citizens are now experiencing stalled improvement in living standards. Gross domestic product (GDP) per person, a common indicator of living standards, grew annually (inflation-adjusted) by an anemic 0.7 per cent in Canada from 2013 to 2022 and only slightly better across the G7 at 1.3 per cent. This should raise alarm bells for policymakers.

A skeptic might suggest this is merely a global phenomenon. But other countries have fared much better. Two European countries, Ireland and Estonia, have seen a far more significant improvement than G7 countries in both productivity and per-person GDP.

From 2013 to 2022, Estonia’s annual productivity has grown more than twice as fast (1.9 per cent) as the G7 countries (0.9 per cent). Productivity in Ireland has grown at a rapid annual pace of 5.9 per cent, more than six times faster than the G7.

A similar story occurs when examining improvements in living standards. Estonians enjoyed average per-person GDP growth of 2.8 per cent from 2013 to 2022—more than double the G7. Meanwhile, Ireland’s per-person GDP has surged by 7.9 per cent annually over the 10-year period. To put this in perspective, living standards for the Irish grew 10 times faster than for Canadians.

But this should come as no surprise. Governments in Ireland and Estonia are smaller than the G7 average and impose lower taxes on individuals and businesses. In 2019, general government spending as a percentage of GDP averaged 44.0 per cent for G7 countries. Spending for governments in both Estonia and Ireland were well below this benchmark.

Moreover, the business tax rate averaged 27.2 per cent for G7 countries in 2023 compared to lower rates in Ireland (12.5 per cent) and Estonia (20.0 per cent). For personal income taxes, Estonia’s top marginal tax rate (20.0 per cent) is significantly below the G7 average of 49.7 per cent. Ireland’s top marginal tax rate is below the G7 average as well.

Economic progress has largely stalled for Canada and other G7 countries. The status quo of government policy is simply untenable.

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