consequences

The Economic Consequences of the Rio Grande do Sul Floods

By Diego Viana


The southernmost state in Brazil, Rio Grande do Sul, was under heavy rain and flooding for several weeks in May. The Guaíba, the most important river in the region, which flows through the capital city of Porto Alegre is usually about two meters deep. It went over five meters. More than 400 cities (out of about 480) were hit by this climate catastrophe, with over 2.1 million people affected and over 170 casualties so far. Material losses are hard to calculate at this point, but insurance companies already consider this the "worst event in our history" and the government estimates that reconstructing the Rio Grande do Sul will take several years.

The connection between the climate catastrophe and the rise of a suicidal far Right immediately becomes evident as social media in Brazil is overrun with swarms of outright lies, political accusations, and fraud. Meanwhile, intellectuals get stuck in a somewhat sterile discussion about whether one may refer to the people who have lost their homes and belongings as “climate refugees” — because it is shocking to realize that this term may refer to people other than the poorest among the poor.

Horrifying events like this have been occurring at increasingly shorter intervals, as we all know. Simultaneously with Porto Alegre, parts of Afghanistan, Kenya, Texas, the United Arab Emirates, Italy, Germany and California have also been under water. Not to mention droughts, wildfires and hurricanes. But in the midst of this chaos, two lessons about our shared future stand out, which may be helpful beyond the regions directly struck, giving us a preview of how to build a future that would be different from what is being prepared right now.


Postponing an exam

The first lesson regards the possibility and requirements of large-scale planning. It so happens that the Brazilian federal government was planning a massive recruitment exam for the public service, which has been anemic after almost a decade of neoliberal rule. The tests were to take place on Sunday, May 5th, in more than 200 cities across the nation with 2.14 million candidates competing for 6,640 jobs. But then the rain came, and it turned everything upside down: how can you administer such an enormous test when many contesting for those public jobs are isolated, stranded, and homeless?

After a week of hesitation, and just two days before the tests, the government finally convened a press conference to announce what was obvious to all: the "National Unified Recruitment" was postponed and later rescheduled to August. Maybe it is just a predisposition on my part, but while I watched the conference I felt that the officials, ministers Esther Dweck (Public Management) and Paulo Pimenta (Communication), seemed somewhat astonished, maybe dismayed. Even among the journalists, there was, or so I felt, an atmosphere of disbelief.

This discomfort is not entirely surprising, though. For someone who had been planning an ambitious, country-wide operation, involving logistics, security forces, and millions of people, I can imagine that the idea of ​​having to postpone the tests didn't even cross the organizers' minds. In fact, a reporter did ask about provisions for an eventual postponement of the exam. There were none.

The federal government placed this initiative at the top of its priorities. It is boasted as an innovation in public sector recruitment, which it is indeed. But it is also an expensive and risky undertaking that had to be stopped in a hurry because nobody considered the intervention of natural forces. Even the decision-making process hints at the impasse the authorities were put in due to the floods. When the press was summoned, dozens of lives had already been lost, and entire municipalities were almost unreachable. It was clear that the "gaucho" (residents of Rio Grande do Sul) candidates were excluded from the test. If communication to the general public only occurred on Friday afternoon, it is because demobilizing this colossal apparatus is almost as hard as assembling it. I suppose that even the budget law will need to be amended.

The postponement made painfully and pathetically clear that in times of global connectivity and interdependence, an episode such as a natural disaster is never “only itself.” It is not limited to its immediate causes and direct effects, where it happens, nor is it limited to its own regime of existence. In a world of complexity, every system and every event spreads and contaminates other aspects of reality, other systems. The eruption of the concrete, palpable, real, into the universe of planning, abstraction and bureaucracy perfectly illustrates the reality we are entering.

I want to draw attention to the meaningful difference between this catastrophe's domino effect and two other consequences of the flooding. First: Rio Grande do Sul is an important producer of rice, wheat and cattle. It is clear by now that the output of these commodities will be compromised, putting pressure on prices. This has led the federal government to announce that it will resort to the international market. Shock waves can also reach interest rate decisions and, with a spike in inflation, unpleasant political consequences are not out of sight, with the far right constantly on stakeout.

Second: the fact that, per the insurance companies, the destruction of cities and plantations in Rio Grande do Sul is the “worst event in the history of Brazil.” The costs incurred could sap some of these institutions and is likely to lead to a significant reallocation of resources, which would weaken other public policies. As for insurance, as has been predicted for some time, we can expect a progressive and heavy increase in premiums, making investments of all types more expensive, especially the most ambitious and expensive ones, such as infrastructure.

In both cases, we are dealing with long-term issues, but mostly already advanced and priced. It is common to hear from economists and managers, but also from some scientists dedicated to complex systems, that the global interconnection of logistical, financial and economic systems makes it possible to overcome ruptures and failures that eventually appear in some part, guaranteeing the stability of the whole. The reference usually evoked is the initial 1966 Arpanet project, the embryo of the internet: decentralized and increasingly numerous connections are almost impossible to take down.

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Nonetheless, other scientists linked to complexity also warn that these ultra-complex systems, although resilient, are vulnerable. This means that they can resist deformation and remain stable, but if a particular disturbance, small as it may be, turns out to be capable of compromising the system, it will collapse completely and suddenly. In a dangerous but not absurd analogy: this is what happens in the death of an organism, for example, or the collapse of an ecosystem. To return to the Arpanet reference: the problem is not always in preventing transmissions from being interrupted. It may lie in the transmission itself. This is what Edgar Morin had in mind back in the 1990s, when he coined the term “polycrisis,” now taken up by historian Adam Tooze and theorized by the Canadian think tank Cascade Institute.

The postponed exam is suggestive of the increasing difficulty we will have in planning and articulating large-scale projects and programs. Without taking into account the climate factor, which is less and less “imponderable,” the government wanted to carry out a broad and solid initiative — and discovered that it was fragile. It won't be the last time something like this happens. This is at the core of what we have come to call "the new normal": from now on, the norm will be that all planning will be subject to failure for reasons that will fall from the sky or emerge from the depths, not without warning, far from it, but with warnings we may not be able or willing to hear.


Solidarity, distribution and economy

What then? — I thought, as I completed the previous section. Do we simply sit and cry, waiting for the moment when a calamity reaches us too? What does all this, the coming crisis of planning, imply for workers, proletarians, the wretched of the earth, and international solidarity in general?

This brings me to my second point. There has been a remarkable outpouring of solidarity in Brazil since the magnitude of the catastrophe became clear. Of course solidarity always emerges when one of these disasters occurs, and there have been many in various regions of the country: landslides in the Southwest, droughts in the North, fires in the Amazon and the Pantanal region, floods all over. But this time there is something different due to the sheer magnitude of the event.

No previous environmental disaster affected the infrastructure of modern life so deeply in Brazil. Airports closed, with runways sometimes inaccessible even for the planes carrying vital aid. There are broken dams, isolated cities and neighborhoods, roads cut, and power, telephone and internet networks down. The distribution of food, medicines and clothing in this scenario can be a daunting challenge. And it has indeed mobilized organizations from all around the country, in the form of donations, logistic networks and information centers.

While this parallel economy was taking shape, representatives of the private sector and the State governor Eduardo Leite himself were more preoccupied with the possibility that donations would have a deleterious impact on local commerce. I mention this not because I want to smear Mr. Leite as someone insensitive to his people's suffering — though one must admit he is indeed responsible for withholding funds marked for preventing floods — but because it presents us with a pulsating contrast between different kinds of economic logic. And this contrast is likely to intensify in the near future, suggesting what may amount to a paradigm shift.

I am thinking about a distinction that Karl Polanyi, the Austrian-Hungarian socialist political economist, makes in his masterpiece The Great Transformation, published in 1944. According to Polanyi, in the history of human societies, there have been three major principles of economic practice, in the sense of the production and distribution of the means of livelihood. These are: householding, which accounts for a mostly autarkic existence; redistribution, in which a central instance, such as the Mesopotamian empires, amasses the goods produced by the collective as a whole and redistributes them according to its own criteria; and reciprocity, of which trade is a particular case, and designates a system where different parties exchange their productions either through a price mechanism or a gift system.

Polanyi argues that a central element in the emergence of capitalism is the dominance of market exchanges over all the other systems. He says the market economy is disembedded from society in general. There is still some room for householding, as the nuclear family is responsible for many activities that are crucial for economic life, particularly the reproductive and unpaid labor ascribed to women. From the institutionalist perspective, the capitalist firm also absorbs a chunk of what would fall into the category of householding. Redistribution still exists too, especially under the form of grants, by both the state and the corporate sector. And non-market forms of reciprocity can be found all over, including gifts, favors, and the occasional barter. But they are all subjected to the general logic of monetary trade, their worth is calculated according to their link to markets, their position in economic life is below secondary.

Very well, what does this have to do with the disaster in Brazil and the solidarity that has been manifested since it began? The answer is, I believe, that the initiative to organize donations, which will become progressively more common as the climate crisis unfolds, contains the seed of a future recomposition of the three economic logics. When a breach in the regular market distribution of goods and services leads to a surge of solidarity, alternative economic circuits emerge spontaneously, simply because they must. This has been the case in emergency situations that had nothing to do with the climate, such as the Argentinian collapse in 2001, wartime scenarios, and the fall of the Soviet Union. Forms of householding, with families tending to their own needs; redistribution, with central committees organizing rations; and forms of non-monetary reciprocity, or alternatively monetary reciprocity, such as the “trueque,” came to life.

In all of these cases, the relative stabilization that succeeded the trauma reestablished the market mechanisms, and these other forms died down. The same happens with every environmental calamity in Brazil and elsewhere: circuits of donations and redistribution arise and dissolve just as quickly. But this time the scale is much higher, the needs more urgent, and the response is proportionally more ostensible. Makeshift centers for collection, transportation and distribution of aid packages are set up overnight, with a remarkable capacity of coordination. Online platforms dedicated to identifying particular needs and connecting them to donors have been created. Volunteers flock to the affected areas, but given the magnitude of the destruction, can only actually act when coordinated with other groups with better knowledge of the region.

Of course these initiatives also tend to wane as the situation improves. But we must take some things into account. To begin with, we are so used, at least since the Communist Manifesto, to think of capitalism as infinitely resourceful, ruthless, and awe-inspiring, that we can forget it has its own internal fragilities. While it may be easier to imagine an end to the world than to capitalism, as Fredric Jameson once said, capitalism still needs the world to be in place, and relatively stable. Disaster capitalism, in Naomi Klein's words, may bloom with the occasional landslide or earthquake, but if people lose the capacity to sell their workforce and purchase their livelihood, the market becomes groundless.

Also, the experience of those who engage in these distributive acts of solidarity represents a valuable acquisition of knowhow and habit. In time, the practice of non-market economic logics may very well solidify, at least from the side of distribution, if not production. As the environmental calamities unfold, as they are expected to do, on the one hand the capacity for large scale planning, corporate or governmental, will be shaken. But on the other hand, it is predictable that the recourse to alternative arrangements will lose its alternative character and constitute a permanent response. Of course, this will require further learning and the development of intellectual tools and strategies.

It is obviously sad to realize that the perspective of non-capitalist arrangements becomes realistic due to the accelerated degradation of the conditions of life on Earth as we know it. The mere fact that we have reached such a stage is a testimony to our incapacity to build large-scale and long-lasting alternatives to the radical capitalism of the last half-century. We should be clear about the fact that the environmental crisis is not an opportunity for change; instead, change is the only way out of the calamities that come with the degraded environment. But it requires careful work of construction, from the ground up. And this is why we can look for inspiration in the spontaneous emergence of solidary economic arrangements in Southern Brazil.


Diego Viana is a Brazilian economic journalist. He earned his PhD in political philosophy from the University of São Paulo and covers Brazilian politics, economy, and social conflict.

Thomas Piketty and Karl Marx: Two Totally Different Visions of Capital

By Eric Toussaint

Republished from CADTM (Committee for the Abolition of Illegitimate Debt).

In his book Capital in the Twenty-First Century,(1) Thomas Piketty has gathered his data meticulously and provided a useful analysis of the unequal distribution of wealth and income, yet some of his definitions are somewhat confusing and even questionable. Consider, for instance, his definition of capital: “In all civilisations, capital has served two great economic functions: on the one hand to provide dwellings (that is to say, to produce “housing services,” the value of which is measured in terms of the rental value of the dwellings: this is the value of well-being of having a roof over one’s head as opposed to being outside); and, on the other hand, as a factor of production for producing other goods and services.” He continues: “Historically, the early forms of capitalistic accumulation seem to concern tools (from flint, etc.), agricultural infrastructure (fences, irrigation, draining, etc.), and rudimentary dwellings, before evolving into more sophisticated forms, such as industrial and professional capital and increasingly elaborate dwellings.(2) Piketty proposes a scenario that suggests capital has been present from the origins of humanity and that revenue from a savings account held by a limited-income retired person is the same as revenue derived from capital.

Capital according to Thomas Piketty

This major confusion is present in the heart of his analysis he develops in Capital in the Twenty-First Century. For Piketty, an apartment worth €80,000 or €2,000 on a savings account(3) may be defined as capital, in the same way as a factory or commercial premises worth €125 million. The ordinary citizen who owns an apartment, has some reserves in a savings account and a life insurance policy worth, say, €10,000 will readily agree with Piketty’s definition, which corresponds with those found in standard economic textbooks and repeated by their bank manager. However, they are wrong, because capital in our capitalist society is much more complex than these simple definitions. Capital is a social relationship that enables a minority (the richest 1%), to get richer by exploiting the labour of others (see below).

Yet when Piketty talks of a progressive tax on capital, he makes no distinction between the kind of “wealth” represented by a €1,000 savings account and the fortune of a Jeff Bezos, a Bill Gates or an Elon Musk.

The same confusion is to be found in his analysis of income: Piketty considers that the income from renting out an €80,000 apartment is a capital gain of the same kind as the income Mark Zuckerberg, the boss of Facebook, derives from his empire.

As far as wages are concerned, Piketty considers that all income declared as wages is wages, whether this means the €3 million salary package of the CEO of a banking group (an amount that is in fact revenue from capital and not a wage or salary(4)) or the €30,000 salary of a bank employee.

Capital according to Karl Marx

We should question the meaning Piketty gives to words like “capital” and define revenue from capital and revenue from labour differently. Piketty presents capital as something that exists in all civilisations and that has necessarily always existed. In this he is in tune with the political economy of the 18th and early 19th century, as found in the writings of Adam Smith in particular, before Karl Marx threw light on what Capital (and wages) really are and developed his critique of the political economy of his time.

Karl Marx has ironical comments on contemporary writers who, like Piketty does, considered the first silex tools to be the original form of capital or just capital: “By a wonderful feat of logical acumen, Colonel Torrens has discovered, in this stone of the savage the origin of capital. “In the first stone which he [the savage] flings at the wild animal he pursues, in the first stick that he seizes to strike down the fruit which hangs above his reach, we see the appropriation of one article for the purpose of aiding in the acquisition of another, and thus discover the origin of capital.” (R. Torrens: “An Essay on the Production of Wealth” &c., pp. 70-71.)»(5)

In his Capital, he states: “We know that the means of production and subsistence, while they remain the property of the immediate producer, are not capital. They become capital only under circumstances in which they serve at the same time as means of exploitation and subjection of the labourer.”(6) Marx explains that an artisan who owns his/her own tools and works for her/himself does not own capital and does not receive a wage. During the centuries that preceded the victory of the capitalist class over the old order, the overwhelming majority of producers worked for themselves, both in towns and in the country. Artisans organised into corporations and peasant families made up the majority of producers, who owned their tools of production, and in the countryside the majority of peasant families owned land, and in addition could make use of communal lands to feed their livestock or glean firewood. Between the end of the 15th century and the end of the 18th century in Western Europe, the developing capitalist class needed the support of the State to dispossess this mass of producers of their tools and/or their land(7) and force them to submit to becoming wage-workers in order to survive. The capitalist class needed to take organised action in order to impoverish and dispossess the working classes and thus force them to accept being wage-workers. That process did not take place all by itself. Karl Marx analyzes the methods that enabled the primitive accumulation of capital in a detailed and rigorous way. In Volume One of Capital, he reviews all the methods used to dispossess producers of the means of production, and thus of their means of subsistence.(8)

Marx draws an anecdote from a book by Edward Gibbon Wakefield (20 March 1796–16 May 1862) to illustrate the idea: “Mr. Peel, he moans, took with him from England to Swan River, West Australia, means of subsistence and of production to the amount of £50,000. Mr. Peel had the foresight to bring with him, besides, 300 persons of the working class, men, women, and children. Once arrived at his destination, ’Mr. Peel was left without a servant to make his bed or fetch him water from the river.’”(9) Marx comments ironically: “Unhappy Mr. Peel who provided for everything except the export of English modes of production to Swan River!” This is because in Australia at the time there was a profusion of land available and the workers were able to find a patch of land on which to set themselves up. Marx, through his comment regarding this fiasco experienced by the capitalist Peel, wants to show that as long as producers have access to the means of subsistence–in this case land—, they are not forced to submit to serving a capitalist.(10)

Marx concludes

So long, therefore, as the labourer can accumulate for himself–and this he can do so long as he remains possessor of his means of production–capitalist accumulation and the capitalistic mode of production are impossible. The class of wage labourers, essential to these, is wanting.“(…)”the expropriation of the mass of the people from the soil forms the basis of the capitalist mode of production.

He adds:

the capitalist mode of production and accumulation, and therefore capitalist private property, have for their fundamental condition the annihilation of self-earned private property; in other words, the expropriation of the labourer.

Karl Marx writes:

property in money, means of subsistence, machines, and other means of production, does not as yet stamp a man as a capitalist if there be wanting the correlative–the wage-worker, the other man who is compelled to sell himself of his own free will.

We should also point out that Marx, in the same section of Capital dedicated to primitive accumulation, vehemently denounced the extermination or forcible subjugation of the indigenous peoples of North America and the other regions that fell victim to colonial domination and the primitive accumulation of capital:

The discovery of gold and silver in America, the extirpation, enslavement and entombment in mines of the aboriginal population, the beginning of the conquest and looting of the East Indies, the turning of Africa into a warren for the commercial hunting of black-skins, signalized the rosy dawn of the era of capitalist production.

Consequences of Thomas Piketty’s definition of capital

To return to Piketty, the definition of capital he gives introduces complete confusion. Let’s look at his definition again:“In all civilisations, capital has served two great economic functions: on the one hand to provide dwellings (…) and, on the other hand, as a factor of production for producing other goods and services.”So, for Piketty, Capital has existed in all civilisations; he goes all the way back to prehistory when he writes:“Historically, the early forms of capitalistic accumulation(11)seem to concern tools (from flint, etc.) (…) and rudimentary dwellings, before evolving into more sophisticated forms, such as industrial and professional capital and increasingly elaborate dwellings.“For Piketty, a prehistoric flint tool, a cave, and a computer assembly plant are all capital. If we believe him, “capitalistic” [sic] accumulation goes back as far as the first assembly of a few pieces of flint that had been chipped and shaped. That definition throws no light on the historic specificity of capital, its genesis, how it is reproduced and accumulated, to which class it belongs, or the social and property relations to which it corresponds. The list of examples of capital Thomas Piketty gives resembles a supermarket catalogue; in a way it’s an inventory like the one in Jacques Prévert’s poem”Inventory“… with only the raccoons missing.(12)

Speaking of capitalist accumulation today, Piketty limits the discussion almost exclusively to the role of inheritance and fiscal policies that are favourable to capitalists; but in reality these factors, though they play a tangible role in transmitting and strengthening capital, are not what create it. Historically, for the capital held by the capitalist to begin a process of enormous accumulation, it was necessary to forcibly dispossess producers of their tools and their means of subsistence and exploit their labour power. The accumulation of capital as it continues today requires the continuing exploitation of working people and of Nature. Capital plays no useful role for society; on the contrary, continuing the accumulation of capital and the activities that generate it is literally deadly. Piketty’s failure to acknowledge that leads him to make a statement such as this:

If capital plays a useful role in the production process it is natural that it earns a return.(13)

Piketty’s confusion is undoubtedly the result of his fundamental convictions:

I am not interested in denouncing inequalities or capitalism as such (…) social inequalities are not a problem in themselves if they may be justified, that is to say for the common good. (…)(14)

My critique of Piketty’s definitions in no way minimises the interest of the monumental portrait his research has drawn of the wealth and income inequalities that have developed over the last two centuries. And, putting aside undeniable fundamental disagreements regarding the notion of capital, it is important, if anti-neoliberal fiscal reform is to be achieved, that we endeavour to bring together a broad spectrum of movements and individuals ranging from Thomas Piketty to movements of the anticapitalist Left. And if it is also possible to come together to demand cancellation of the public debts held by the European Central Bank (for a total amount of over 2,500 billion euros), it must be done. I do not regret having co-signed the call for the cancellation of sovereign debts held by the ECB(15) in February 2021 along with Thomas Piketty. But like the other members of the CADTM who signed that text, I consider that more must be done–beginning, for example, with levying a large Covid tax on wealthy individuals and major corporations. The CADTM feels that cancellation of public debts must be accompanied by a series of anticapitalist measures, and it is not certain that Thomas Piketty would support all of them.

Thanks to Anne-Sophie Bouvy, Christine Pagnoulle, Brigitte Ponet, Claude Quémar and Patrick Saurin for their readings.

Translated by Snake Arbusto

Footnotes

  1. Thomas Piketty, Capital in the Twenty-first Century, trans. Arthur Goldhammer, Cambridge (MA): Harvard University Press, 2013

  2. Thomas Piketty, Capital in the Twenty-first Century, p. 337.

  3. Note that according to Piketty, the amounts held in France in savings accounts, check-book accounts, etc. account for only 5% of (private) assets! p. .

  4. It’s very convenient for capitalists to include the very high revenues of a corporation’s executives, which also include dividends and stock options, in calculating total payroll.

  5. Source: Note 9 to Capital, Book One: The process of production of capital. Part VII, Part III: The Production of absolute surplus-value, Chapter 7: The Labour-Process and the Process of Producing Surplus-Value, available on the Internet: www.marxists.org. Also available in audiobook form, see next note. In the German original and the French translation, Marx jokingly adds a note of wild etymology, suggesting that stock as a reference to capital derives from the German word for stick.

  6. Karl Marx, Capital–Book One: The process of production of capital. Part VIII: Primitive accumulation. Chapter Thirty-Three: The Modern Theory of Colonisation. The text from which the excerpts quoted in this article is available on the Internet: www.marxists.org ; it is available in audiobook form at www.marxists.org

  7. Confiscation of land by capitalists began in England in the 15th century with what is known as the “Enclosure Movement,” which consisted in ending the traditional right of use of the land and the commons via the Enclosure Acts and turning them over as private property to wealthy aristocrats and bourgeois. Read Chapter 27 of Volume 1 of Marx’s Capital: Expropriation of the Agricultural Population From the Land: www.marxists.org, available as audio – www.archive.org

  8. The section of Capital in which Marx details the various sources of primitive accumulation of capital is Book One: The Process of Production of Capital –Part VIII: Primitive Accumulation (First English edition of 1887, translated: Samuel Moore and Edward Aveling, edited by Frederick Engels). There is an audiobook version of Part Eight (see link in earlier note).

  9. E. G. Wakefield: England and America, vol. Il, p. 33. Cited by Karl Marx.

  10. Writing of the specific situation of North American and Australia in the early 19th century, Marx explains that the possibility for colonists from Europe to become owners of land or begin working for themselves enables “The wage-worker of to-day [to become] to-morrow an independent peasant, or artisan, working for himself.” In North America, Australia and other regions colonised by Europe, the situation gradually changed over the course of the 19th century and the early 20th century, and the great mass of independent producers whose ancestors had emigrated from Europe were also dispossessed of their means of production.

  11. Author’s bold.

  12. Excerpt from the poem ”Inventaire“ (”Inventory”) by Jacques Prévert (published 1946):
    “A stone
    two houses
    three ruins
    four gravediggers
    a garden
    flowers
    a raccoon (…)”
    coonytanuki.tumblr.com

  13. Thomas Piketty, Capital in the Twenty-first Century, p. 674

  14. Idem, p. 62

  15. See the French version : www.cadtm.org The French version has been published by Le Monde, La Libre Belgique and RTBF

On the Ideal Canada and its Consequences

By Miranda Schreiber

 

So many things have been proposed as constitutive of the Canadian identity, “the north” being one, or public healthcare. What these propositions omit is the role the United States plays in Canada’s self-definition. In part we feel we are in the north because we are north of the United States; our healthcare system seems unique because the U.S. doesn’t have it. Always refracted through the lens of American hegemony, Canada seems to be what America is not. We even voted the “father of socialized healthcare,” Tommy Douglas, the greatest Canadian in 2004. The former premier of Saskatchewan is often described as a Canadian hero.

What accounts of Douglas’ legacy often fail to include is that, for much of his life, Douglas was also a eugenicist. His masters thesis, The Problems of the Subnormal Family, recommended the sterilization of the disabled, sex workers, and “delinquents” with police records. And Douglas, the architect of socialized healthcare, used healthcare to make his point. On page ten of his masters thesis he wrote: “In addition to the cost of keeping these families, is the cost of their medical attention….The cost of bringing most of their children into the world is borne by the city. The cost of dental work, eye correction, and operations is borne by the citizens’ relief organization.” These violent eugenic ideals endorsed by Douglas, and other “Canadian heroes,” are not relegated to history. They continue to have material consequences. The sterilization of Indigenous people in Canada is still occurring.

Americans and Canadians alike refer to an ideal Canada, one which is defined as it diverges from the United States. This idealized country is habitually alluded to on both sides of the border. Senator Ted Kennedy, arguing in favor of single-payer healthcare in 1979, said, “the best evidence is in Canada…the last country that implemented national health insurance and one with which we have shared values and a shared standard of living.” Forty years later in 2019 Bernie Sanders crossed the Canadian border to purchase insulin at one tenth of the cost. During the debates for Democratic leadership in 2019, Sanders said, “…my neighbor fifty miles to the north Canada somehow has figured out how to provide healthcare to every man, woman, and child.” Sanders continued, “in our country, it is a much different story”. On December 4, Alexandria Ocasio-Cortez tweeted about COVID relief: “Canada did $2000/monthly. The US is the richest nation earth and a 2nd stimulus check is getting blocked.”

Justin Trudeau engages in the same style of comparative rhetoric. On January 27, 2017 Trump instituted the Muslim ban. The next day Trudeau tweeted: “To those fleeing persecution, terror & war, Canadians will welcome you, regardless of your faith. Diversity is our strength.” Trudeau used the hashtag #WelcomeToCanada. But when over 11,000 people crossed into Canada on foot from the United States, Trudeau suddenly retracted his message. “For someone to successfully seek asylum it’s not about economic migration,” he told the press. He said, “You must follow the rules.”

The ideal Canada exists abstracted from everything else; it plays no role in the displacement of people. But in reality transnational Canadian mining companies are currently involved in the extraction of resources from Haiti, the country 85% of the migrants Trudeau criticized were from. In 2019, a report accused six Canadian peacekeepers of sexually assaulting Haitians. Afterwards, nothing happened.

The ideal Canada, which no one has visited, which exists nowhere, seems to serve everyone but the oppressed. For in reality the glare of this Canada obscures a settler-colonial state on stolen land. The $2000/month checks Ocasio-Cortez praised were withheld from disabled Canadians who weren’t working. Medical racism, homophobia, and transphobia flourish in our healthcare system. The mayor of Toronto tweets about Toronto’s diversity while overseeing mass evictions during a pandemic and presiding over an anti-Black police force. Trudeau speaks about reconciliation while appealing court rulings to give Indigenous children compensation. At a point “better than America” begins to mean very little.

And the idealized Canada doesn’t just serve Canadian politicians. American politicians gesture towards “Canada” as a model for healthcare and argue the United States is wealthy enough to have a similar system. This of course is true. But why is the United States so wealthy in the first place? The economic structure which creates American hegemony is never discussed; Americans are just encouraged to integrate public healthcare into an existing capitalist order. In 1979 Ted Kennedy described Canada as a country with shared values and standards of living. Implicitly, places like Cuba, which also had single-payer healthcare, were not aligned with capitalist American values. The ideal Canada is perfect for these sorts of arguments because it in no way contradicts a neocolonial agenda. It presents an aspirational image for leftist American politicians which can be imitated without compromising the United States’ accumulation of capital. Therefore this ideal Canada, which isn’t a country because it doesn’t exist, becomes a perfect national myth. The fantasy serves a mutually beneficial function for politicians occupying Turtle Island, allowing them espouse progressive politics while maintaining white supremacist oppressive structures.

In 2010, Weyburn Saskatchewan unveiled a statue of their former premier, Tommy Douglas, father of Canadian medicare and author of the thesis The Problems of the Subnormal Family. There is an ongoing campaign to put his face on the $5 bill. The statue of Douglas outstretches its hand, gesturing almost towards the sky. The inscription reads simply, the Greatest Canadian.