October 21st, 2020

Principle of insufficient demand


By Letter to the Editor on June 10, 2020.

Mr. Kenney and the “conservatives” claim they have the answer to our economy; but they cannot see or understand the market principle of insufficient demand. The globe has a glut of oil and gas. Pipelines to provide more only increase the unneeded supply. Thus, reducing price further. Subsidies like tax cuts and incentives to business are sideline issues to transfer public funds into private hands.

Violence and war rooms do nothing to reduce stress. Jobs are produced by meeting the legitimate needs of people. Unnecessary consumption creates debt. Greater debt feeds bank profits. Satisfaction of legitimate needs of education, health care and elimination of market monopoly is the job of government.

Free trade deals are myths that use “red tape” to distract the public from market manipulation by financial speculators (gamblers). Some myths are fantasy creations, meant to satisfy the legitimate questions people pose about why economic “development and growth” are not shared equally across society. Myth repetition cements them into the consciousness of the people. Have economic myths explained reality, or simply justified lack of change?

When people feel their legitimate questions are not heard, or answered, eventually frustration boils to the surface. The Neoliberal answer is always through “law,” which their system gives them control over.

The Neoliberal (or Neoconservative) promotes police and military solutions. These rigid responses do not provide answers to stress. They are establishment methods to recapture control. Control of the established order is vital to the right-wing agenda. They claim control of the conversation through corporate monopoly of media and entertainment.

The right uses the rhetoric of nationalism and race supremacy to justify expansion for capitalism. Privatization, opening the market for the one per cent, has less effect for the 99 per cent. My question is who gave Canada to the British – or the French?

Don Ryane

Lethbridge

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GHG

From oil and gas, to the police and military to giving Canada away. What the hell is your point?

IMO

Brilliant rhetorical question by the letter writer to conclude a brief list of how the folly of a neoliberal /neoconservative free market ideology impacts and controls ordinary folks.

biff

excellent letter – in starkly few words, particularly relative to the complexity of the topic, it moves from: the local folly of stupid hopefulness that oil will once again power alberta’s economy, and/or the sleaze that still is redirecting what is left of alberta’s wealth to line the usual private pockets with public money (while the political and bureaucratic parties involved are feathering their nests); to the issues subverting the freedoms and quality of life of the masses; to the greater query still: how is it we are content to remain imperialist servants, owned by the uppermost of the top 1% ( for indigenous peoples the final question is perhaps more pronounced, still)?
it leaves me to consider that at least slaves are wise enough to know they are slaves.

zulu1

Pipelines are not built with short term supply and demand considerations in mind . They are built to provide transportation for oil and gas over decades . The present situation is somewhat unique, where demand destruction and over supply struck at the same time for reasons that had little to do with the industry. Supply and demand will converge over time in competitive markets.
Fossil fuels will still be the dominant energy source for decades to come, according to the International Energy Agency.