Jobs and Taxes – How going Local will get you more Jobs and Less Taxes

So now we have elections on both sides of the border. All parties in both countries will be making promises about jobs, gas prices, taxes, security, families, health care and education.

In short the deal will be I will get you more for less.

I think you can get more for less but not in the conventional way. Let’s see how a more energy and food independent PEI or your place can deliver on the idea of “More for less”.

Taxes – One of the biggest taxes we all pay are our energy bills – our oil bills. More than $300 million leaves PEI in our payments to non Island providers. What stays here are the wages of a few tanker drivers and gas station workers. This “tax” affects the poor more than the rich and buys us NOTHING. It is just a drain.

As the price of oil rises, so will this tax. Look at the heating bill of the Eastern School Board – up a million dollars in the 2008 season. I wonder what the heating bill for the Hospitals and Manors are? The money we pay as individuals and as a province on oil takes away from every thing we do. It will reduce our ability to have an education and health system, it will reduce our ability to feed our families and it will reduce our ability to go to work.

So reducing every litre of oil we use as individuals or as a province, puts more money back into our pockets.

Jobs – We are in the last stages of a work design model of centralization and bigger and bigger. With the Maple Leaf crisis we have found that ONE plant in Canada that makes most of the processed meat. With the pet food crisis, we found that one plant makes all the pet food in North America! We have said good bye to our bottler – soon there will be only one bottling plant for Canada! Will there be a Canadian car making plant left soon? How long will we have 5 banks

PEI and other places that are on the edge lose out in two ways. First of all, we are not at the centre. None of these jobs will be coming here. They can’t. Secondly, these jobs are going to disappear anyway. So long as we operate in a global market, wages will have to settle to meet the reality of a 6 billion person world. All factory wages will move to a global price.

The traditional jobs that working people had are going away and being replaced with minimum wage jobs. The few entry jobs that used to take the well educated up the ladder now take you to a dead end in a call centre.

There are no traditional good jobs coming here. They can’t so long as we stay inside the old model.

So where will be the new GOOD JOBS? The new good jobs will be local and they will be in doing things that are valuable locally not Globally. What might these be?

  • Growing local food. We grow almost none of our food locally. Like for Oil, we pay companies like National grocers and Sobey’s to supply our food. Like for oil, most of our food dollar is a “tax” that leaves the Island – only the minimum wages of the local staff remain here. Most of the income of our traditional farmers goes to their suppliers in oil and chemicals. They get left with the scraps. The interest and fees that they pay go to a financial system that sucks the money from our region. What might growing our food locally look like? It would be lots of small high intensive mini farms with large regional local farmers market where nearly all the money we spend would stay on PEI
  • Building and operating a local energy system – pellets, wind, hydro, hydrogen – and conservation will all supply jobs that have to stay here and will be paid in connection with local realities

I am sure that out of these will come another host of good local jobs. For as we ourselves become more local on PEI, work of all sorts will return to our local communities. The village store, the village school, workshops …

Health care – With a more local world, there will be less alienation and hence better health anyway. It is not access to drugs and doctors that keep us well. The more control you have in your life is the most important factor in health. With better food, the healthier we will be.

Education – With a more local world there will be less stress in family life. The single most important determinant of a child’s potential is the stability of its family life. The village that we will need to raise our kids can come back in a more local world.

Of course none of this is on any official agenda yet. I am sure that we will be offered to take it on trust that governments will lower our taxes and yet put more money into jobs etc.

What’s your take?

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4 responses to “Jobs and Taxes – How going Local will get you more Jobs and Less Taxes

  1. Rob, I agree with everything you said. But one thing I wonder is whether, when you throw all of these ideas into the blender, can most people afford to keep doing everything they’re doing today with the money that you make, or do they have to accept less to pay more and rebuild their local economy?

    It seems implicit in your post that the standard of living would not change, or that it might even get better. I can see how that could happen, by replacing material things that don’t matter with a greater sense of self-sufficiency or well-being, but that wasn’t spelled out in the post. Shouldn’t it also include the idea that you will have to settle for a less material life? I don’t think this should be a surprise to be found out later in a proposition like this.

    The monopolization of services, for example, is the cheapest way to do things in our current system, with energy still being relatively cheap. If you look at the price of real smoked meat vs. deli meat that has smoke flavour added and nitrites to preserve it, you will find a huge discrepancy because the latter is done in smaller quantities, takes longer to do, and is labour-intensive. So, if you want to dismantle this then you have to accept an increase in price in order to rebuild your local economy. With places like Walmart having reduced wage pressures by forcing the cost of popular goods to their rock bottom, many families may not be able to pay more.

    One thing that struck me about Dion. He came across to me as very reasonable and capable based on what I saw him say about environmental issues in a 1-hour interview. Despite any hard evidence of what he intended to do, I would trust him based on an obvious intelligence. He was one of those guys that genuinely recognized that there were no easy answers. But it occurred to me afterwards that, to people who aren’t reading about environmental issues day-in, day-out, this guy sounds like he is trying to pull a fast one and has no plan. The relationship to your post is that I wonder whether enough people really think there is a problem with our economy, or whether it’s just a matter of having politicans fix the high energy prices so that we can go back to previously-scheduled programming.

    I have no idea what it’s like on PEI, but I am just looking at the similarities between environmental issues — most people see no real environmental problems, especially when food is still extremely cheap, and after a mild summer and cold, snowy winter. Fishery problems, yet tuna is still frequently well under a dollar a can? But, they’re being told by politicians that these issues are so important. It’s easy to get tunnel vision with these things when you focus on an issue for too long.

  2. Katrina, four dollar gas, a trillion dollar war, rising unemployment, deregulated housing market, global warming…no more

  3. here this winter for many the choice will be eat – heat – or work

    Pretty tough ones

    I think we know that we are in trouble here

    PS I agree re Dion – I can trust him to do his best to do the right thing

  4. I think what we’re going to see evolve, IDEALLY, is what I think of as a “cellular hierarchy” of the world. Lots of more local things – food, energy, etc., which reduces shocks. On top of these “cells” are other cells of wider-spread industries (transportation, education, internet), and so on. Global connectivity and involvement isn’t going away – but a lot of things just don’t NEED to be global for maximized benefits.

    The one thing I can see is people may have lifestyle differences even more radically different than now. I, a Technical Project Manager am involved in development of technologies for local webcasting and connectivity. I work several “levels” above the smaller “cells.” I can see a world where some people are local most of their lives, and several levels ‘above’ are people who never settle down.

    However I strongly wish for better localization. Its just efficient and stable.

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