FROLITICKS

Satirical commentary on Canadian and American current political issues

Jan 26

Post-Secondary Education Institutes Depend Increasingly On Foreign Students in Canada

by bcurry

Prior to the COVID-19 pandemic, Canada was already seeing a significant increase in the number of foreign students being admitted to post-secondary institutions.  In 2016, Statistics Canada reported that the international student population at Canadian universities almost doubled in the decade from 2004/2005 to 2013/2014, rising from 66,000 students to 124,000. In 2013/2014, international students represented 11% of all students on Canadian campuses, up from 7% in 2004/2005.  According to Project Atlas, Canada now gets five percent of all international students worldwide, making Canada the seventh most popular destination after the US, UK, China, France, Germany and Australia.  International students are fairly concentrated in two fields of study, with almost half of them studying business, management and public administration (27%) and architecture, engineering and related technologies (19%).  Foreign students pay substantially higher post-secondary tuition fees, as often as three times higher than domestic students. 

Back in 2007, Statistics Canada predicted that after 2012/2013, a major decline in the size of the youth cohorts would begin to affect enrollments, especially with current declines in domestic birth rates.  Full-time post-secondary enrolment is expected to reach a trough in 2025/2026, with a student population 9% below the peak 13 years earlier.  For this reason, one needs the influx of foreign students to financially support our higher institutions of learning, many of whom may also become permanent immigrants upon completion of their studies.  The federal government reportedly estimated that in 2018, international students spent $21.6 billion on tuition, accommodation and other expenses—an economic infusion supporting 170,000 domestic jobs and exceeding the impact of major exports like lumber, auto parts and aircraft.  Foreign students also contributed nearly 40 percent of tuition revenues at Canadian universities.  As noted, those numbers may well be higher now.  As of 2022, international student enrollments in Canada surpassed 600,000, far exceeding the government’s 2012 targets.

Since foreign students contribute billions to the Canadian economy and post-secondary coffers, it critical that international students are treated well and fairly in order to maintain our reputation in the field of higher education.  However, this reputation has recently been seriously damaged by the emergence of dozens of private, fly-by-night colleges catering specifically to foreign students.  For example, in Quebec alone there were 48 non-subsidized private colleges in 2022, up from 28 in 2015.  Overseas, there are countless local education agents whose job it is to advise prospective students on international schools, steer them to the appropriate programs and help them with the application process.  Unfortunately, for substantial commissions, many students have been directed to fly-by-night colleges in Canada.  Yet this industry remains essentially unregulated, as do recruiters’ relationships with the fast-growing private college sector.  According to Montreal immigration lawyer Ho Sung Kim, this is why so many business people are interested in the industry: “Money drives these schools, not education.”

Post-secondary education is under provincial jurisdiction, with each province responsible to oversee accredited bodies.  Since such private colleges are basically unregulated, the authorities primarily rely on the receipt of complaints before investigating allegations by foreign students.  Governments have received dozens of complaints from students about misleading promotions that guaranteed jobs after graduation, plus promises of high-quality facilities the school didn’t have and tuition refunds the college allegedly refused.  In addition, many teachers are technically not qualified to teach in their fields, and turnover is extremely high. 

Recruiting firms continue to travel to China, the Philippines, India and Mexico and have signed deals with private and public colleges in Quebec, Ontario, B.C. and New Brunswick.  Manitoba is currently the only province to regulate such recruiters.  In 2016, the province introduced legislation requiring schools to properly train recruiters and review the information they provide to students.  Much more needs to be done by the federal government who is responsible for issuing student visas, perhaps by performing background checks on such private colleges.  Such measures would go a long way to maintaining Canada’s otherwise excellent image that we’re doing a decent job welcoming and protecting international students compared to other countries.

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Jan 18

How Immigration Must Play More Significant Role When It Comes To Future Labour Force

by bcurry

Recently, reports are coming out of China that since the Communist Party took power, China’s population has started to level off.  Soon, India will surpass China in terms of population and population growth.  Much of the Chinese population decline was of course due to deliberate policies by governments, including the previous one-child policy, aimed at lowering its overall population growth.  However, such policies, while effective, have led to major concerns over future labour shortages due to low birth rates and an aging population.  It is reported that by 2035, 400 million people in China are expected to be over 60, accounting for nearly a third of its population.  Whether or not the government can provide widespread access to elder care, medical services and a stable stream of income later in life will also affect a long-held assumption that the Communist Party can provide a better life for its people.  In the case of China, few believe that its restrictive immigration policies will help out in the short-term.

What do these predictions have to do with the North American scene?  The fact of the matter is that both Canada and the U.S. are also facing issues surrounding aging populations, lower fertility rates and their subsequent impact on the labour market and social safety nets.  Simply put, in order to maintain a population via the annual birth rate, one needs to have at least two children born to each couple.  This is referred to as the replacement rate.  In 2020, Canada’s total fertility rate hit a record low.  In addition, in Canada more than nine million baby boomers are set to retire over the next decade, creating a potential labour shortage that, if unchecked, could raise health-care costs, upend pension payments and halt the country’s economic growth.  The current population of Canada is estimated at less than 40 million.  As the population ages, the median age had climbed steadily from 26.2 in 1971 to 41.1 in 2021, a trend observed in many advanced economies including the U.S.

This is why both Canada and the U.S. will continue to rely on immigrants to augment future labour forces.  Restricting immigration for political reasons, such as occurred under President Trump’s administration, will backfire when it comes to the rate of population growth.  Until recently, natural change — births minus deaths — had always been the primary driver of growth in Canada and the U.S.  However, even before the pandemic hit, these aging nations were already experiencing a decline in fertility and increase in deaths.  This is partly why Canada welcomed over 405,000 newcomers in 2021 – the most ever welcomed in a single year. The Federal Government is continuing its ambitious immigration policy by setting targets in the new levels plan of 465,000 permanent residents in 2023, 485,000 in 2024 and 500,000 in 2025. 

However, there is one exception in Canada when it comes to increasing immigration.  According to recent data, the province of Quebec is taking a dwindling share of immigrants to Canada.  Under an agreement between the federal government and Quebec, Quebec controls the number of economic immigrants it takes each year.  In 2022, Quebec brought in roughly 15.7 percent of permanent immigrants to Canada, despite the province representing nearly 23 percent of Canada’s population.  Quebec’s current immigration policy is primarily based on its desire to have immigrants who are capable of living and working in French, Quebec’s official language.  The province’s Immigration Minister, Christine Fréchette, has stated that Quebec has to limit immigration to French speakers to protect the French language.  The minister further made it clear that the province won’t be boosting levels anytime soon.  However, strong opposition to this policy has surfaced within certain key sectors within Quebec, notably within business sectors which already are dealing with labour shortages.  For example, the Quebec Manufacturers and Exporters association said the province desperately needs these newcomers because there are labour shortages everywhere.  The association estimates that some $7 billion (Canadian) in manufacturing output that could have taken place last year was sidelined due to current labour shortages.

As in the case of China, the Quebec provincial government has implemented several schemes to encourage Quebecers to have more children, however with little notable success.  In both cases, government handouts like cash for babies and tax cuts, have failed to change the underlying fact that many young people simply do not want children.  Fertility rates continue to fall as incomes rise and education levels increase, and more women are participating in the labour force.  Other factors have contributed to the reluctance to have more children; including the burden that many younger adults face in taking care of aging parents and grandparents, the high costs of raising and educating children, and the increase in the number of working couples in order to make ends meet.  For these reasons, countries have fewer options other than increasing immigration to offset their aging populations and maintain their standards of living.

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Jan 6

Flexible Working Aimed At Improving Work-Life Balance Is Making A Comeback

by bcurry

For the last two decades I have been following workplace trends toward flexible working arrangements offered by employers and the resulting pros and cons.  Now, the issue has once again raised its head as a result of discussions around post-pandemic alternative working conditions, including remote work or various hybrid arrangements.  The Great Recession of 2008 caused a lot of employers to consider alternate and more flexible working arrangements for their employees so as to better retain the most critical members of their workforce.  Struggling to survive the economic downturn, the need for increased productivity became greater than ever, which made it the perfect time for companies to introduce smarter working practices.  In a 2009 survey of 400 employers by the Families and Work Institute in New York found that 81 percent had maintained flexible work arrangements such as telecommuting, compressed workweeks, phased retirement and voluntary reduced hours.  Among companies with 1,000 or more workers, 37 percent used flexible work arrangements to minimize layoffs. 

As one can see, the idea of flexible working arrangements is not a new concept.  If anything, interest in promoting work-life balance has increased as a result of the pandemic’s impact on work and the labour force.  A recent report by the International Labour Organization (ILO) concludes that giving workers flexibility in terms of where and when they work can be win-win for both employees and businesses.  The ILO report further concludes that flexible work schedules can improve workers’ job satisfaction, performance and commitment to an organization — thereby reducing recruitment costs and increasing productivity.

“Flexibility” is now the new magic word for recruiters, and for good rationale as flexibility (or lack thereof) is consistently one of the biggest reasons employees cite for staying or leaving a job.  While pay continues to be paramount for most people, in the current environment companies need to find new ways to distinguish themselves as an employer of choice.  Unfortunately, there are still some employers who fail to see the benefits of offering flexible work arrangements in an era when new technologies better facilitate such opportunities, including remote or hybrid forms of work.  For example, the Canadian federal government recently mandated a policy requiring workers this coming spring to work at least two to three days a week in person, or between 40 to 60 percent of their regular schedule.  This employer is saying that in-person work better supports collaboration, team spirit, innovation and a culture of belonging.  While the federal Treasury Board is arguing that the employer has the right to determine where employees work, several federal unions are going to the courts to argue against the policy.  This has angered thousands of employees who currently have flexible working arrangements, especially as they are currently in contract negotiations.  However, I believe that the primary drive behind this employer’s decision has more to do with management’s continuing distrust in not having in-person accountability and supervision, believing other arrangements negatively affect productivity.

However, most experts agree that, in what continues to be a tough economic climate, empowering employees with the right tools and working environment will have numerous flow-on benefits; including improved customer service, retaining talent, ultimately giving the business a significant competitive advantage.  Most experts would agree that giving workers flexibility in terms of where and when they work can be win-win for both employees and businesses.  The above noted ILO report echoes the findings of many other recent studies and surveys.  While salary, benefits and work security have historically topped the list of sought-after incentives, multiple post-pandemic polls have found workers, especially women, increasingly prioritizing work-life balance.  The main question now is whether or not employers can really afford to not seriously consider promoting work-life balance through greater flexible working conditions?

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Jan 1

How Is Climate Change Affecting Our Younger Generation?

by bcurry

You may have heard of the terms “eco-anxiety” or “eco-distress” being used when one talks about the psychological impact of climate change on people, especially youth.  Unless one is living on another planet, one cannot help but recognize the extremes we are witnessing with respect to our climate in recent years, even by former deniers.  Across the world, we are seeing more severe weather resulting in flooding, droughts, wildfires, heat waves, tornadoes, etc., etc.  This phenomenon has led to many of us to question the future of humankind in light of one major disaster after another.

The grim forecasts have even led to something referred to as “reproductive anxiety”, whereby the young generation in particular is seriously questioning whether or not to have children?  On the one hand, people look at the carbon print attributed to having another child born.  On the other hand, some question whether it is the responsible thing to do in having a child born into an era of climate and environmental crises.  This tends to be an issue primarily among North American and European highly educated classes, who have the luxury of considering all the alternatives.  After all, it is the industrialized countries that produce the vast majority of fossil fuel emissions and greenhouse gases. 

One can certainly appreciate such arguments among today’s younger generation as we begin a new year.  We appear no closer to resolving the issue than we were five decades ago.  This has left us with an air of extreme pessimism, especially given recent world events.  Governments pay a lot of lip service to reducing carbon and other detrimental emissions, without actually achieving much of anything.  However, where I disagree is over the issue of where our future environmentalists, scientists, engineers and other professionals will come from.  We have come to believe that we have to better adapt our dwellings, infrastructure and technologies to meet the existing climate change challenges.  We will rely heavily on the creativity and productivity of our youngest to commit to developing and implementing new forms of adaptation and effective policies to deal with the multitude of climate change impacts.

Numerous technological experiments are already underway and it is up to the next generation to continue these initiatives.  Many of us are fortunately in a position to encourage and support the educational endeavours of our children, especially in the industrialized countries.  However, we must realize that the bulk of the impacts of global warning will occur in emerging or lesser developed countries, such as threats of mass starvation, conflict, rising sea levels, deaths and species extinctions.  For this reason, we must also support the work of persons in those affected countries, of which there are many.  If we do not do more, one can expect that migration from these countries to North America and Europe will continue at even greater rates.

As for the older generation, we must do our fair share of sacrifices.  This could mean adapting new forms of green technologies to reduce our carbon footprint.  There may be some ways in which to reduce our reliance on fossil fuels, including through less air and motor vehicle travel.  How we heat and cool our homes is another area where changes can be made.  Promoting more urban intensification is also something we should consider, thereby reducing single home dwellings and commuting to work.  We have already seen the impact of working from home on travel.  We need to better inform ourselves of climate- and energy-related challenges so as to better educate our children and grandchildren.  As they say, ignorance is no excuse!

As in the case of Sweden’s Greta Thunberg, we have to encourage and support young environmental activists.  At age 15, she started spending time outside the Swedish Parliament to call for stronger action on climate change and later sailed in a yacht to North America, where she attended the 2019 UN Climate Action Summit.  It took some time for her parents to eventually support her activism.  We need more young people like Ms. Thunberg to come forward and demand that more needs to be done to address climate change issues.  Happily, she has been joined by other activists around the world.

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Dec 21

Differences in Governance Systems in Canada and the U.S. Do Matter

by bcurry

Back in high school and in university we were introduced to the two systems of governance in Canada, Great Britain and the U.S.  Canada like the U.K is a parliamentary system, with the normal three levels of governance: the legislature, executive and judiciary components.  As a republic, the U.S. has a similar constitutional makeup, although how each of the members is selected varies greatly.  In Canada, the Prime Minister is selected by which party gets the most seats in the House of Commons.  The PM also sits in Parliament.  Sometimes, if a party doesn’t win the majority of seats to form a government, the party with the most seats can negotiate with another party to form what is referred to as a “minority government”.  Minority governments are tricky because they can be toppled by a “confidence vote” on critical motions such as a budget.  Canada currently has a minority government as a result of the last federal election in September 2021. The PM currently selects the members to Cabinet who are normally members of Parliament, unlike in the U.S. where the President selects Cabinet members who do not sit in Congress.

In the U.S., citizens vote separately for the President and for candidates to the House of Representatives and the Senate, often in what are referred to as “mid-term elections”.  Unlike in Canada where there are mainly five official parties, the U.S. only has two parties: the Democrats and the Republicans.  As a result, Congress can often see a split in control between the House of Representatives and the Senate, as is the case now with the Republicans controlling the House and the Democrats the Senate.  In addition, there are those members who are independents.  The Canadian Senate on the other hand is made up of appointed members (by the Governor General on the PM’s recommendation) who now do not have any party affiliation.  Compared to the American Senate, the Canadian Senate does not have much power, especially when it comes to financial matters such as the budget.  It examines bills referred from the House and can recommend amendments which the governing party can accept or ignore in the final reading before parliament.  While committee hearings before the U.S. Senate can make or break policies or federal appointments, the Canadian Senate’s committees can simply provide reports on selected subjects which the Government most often ignores and get shelved.

Appointments to the Supreme Court are a whole other matter.  In the U.S., such appointments are highly politicized and depend on which party the President and Senate members come from.  In recent years, the majority of Supreme Court justices have been appointed under Republican regimes, resulting in a prevalent conservative court.  In Canada, on the other hand, Supreme Court appointments are more or less apolitical and made to reflect regional, ethnic and affirmative action considerations.  Frankly, given recent decisions by the American Supreme Court (e.g. Roe vs. Wade), I must say that I prefer the more independent Canadian version when it comes to appointing jurists.

There will always be debates over which system is better.  The fact of the matter is that both have their benefits and flaws.  One major concern with the American system is how the President is elected and the role of the “electoral college”.  For example, in the case of Donald Trump, he had smaller percentage of the popular vote than Hillary Clinton and yet won the election.  In both countries, it is especially important to win certain urban and rural areas in order to be politically successful.  For this reason, parties target certain key states in the U.S. and certain key provinces in Canada.  One major difference is how candidates in the election process are funded.  In the U.S. there is no end to the hundreds of millions of dollars that candidates can gather from such sources as Super PACs (political action committees).  For example, this year’s midterm election was expected to set a new spending record, with over $9 billion being raised. This is significantly higher than the previous record of $7 billion, which was set in 2018.  In Canada, contributions to candidates are far less and are regulated by controls enforced by an independent agency, namely Elections Canada.

To change the current governance systems in both countries would require significant constitutional amendments which don’t appear to be on the horizon anytime soon.  I would suggest, maybe just maybe, the time is right for governments to re-examine the governance processes in light of our histories and the continuing changes in both societies.

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Dec 11

Issues Raised Over Military’s Junior R.O.C.T. Programs in American High Schools

by bcurry

Recently, I read an article in the New York Times (Times) which highlighted the apparent mandatory participation of high school students in the military’s Junior Reserve Officers’ Training Corps (J.R.O.C.T.) program.  The article points out that J.R.O.T.C. programs, taught by military veterans at some 3,500 high schools across the country, are supposed to be elective, and the Pentagon has said that requiring students to take them goes against its guidelines.

In Canada, over 57 000 youth, aged 12-18 participate in the after school and summer Cadet program: supervised and led by over 9000 military and civilian members; supported by their communities, sponsors, the Canadian Armed Forces, and the Navy, Army Cadet and Air Cadet Leagues of Canada.  Cadets generally run activities one night per week, and one weekend per month, with additional opportunities for unique experiences during the summer and throughout the year.  As in the case of the J.R.O.C.T. program, the cadet program markets once in a lifetime opportunities that develop leadership, citizenship, and self-confidence.  However, unlike the J.R.O.C.T. program, it is completely voluntary.

The Times found the vast majority of the schools with those high enrollment numbers were attended by a large proportion of non-white students and those from low-income households.  The role of J.R.O.T.C. in U.S. high schools has been a point of debate since the program was founded more than a century ago.   What is disconcerting is that in many schools a student is automatically enrolled, and must put in a request in order to leave the program.  Some have described such a military program as a means to indoctrinate young people and a form of “brainwashing”.  Others, including civilian teachers, are uncomfortable with military posters and recruiters on campus and the curriculum taught in J.R.O.T.C. classes, especially as it pertains to U.S. history regarding foreign policy and military initiatives oversees (e.g. Vietnam).  Some high school freshmen are also in J.R.O.T.C. at the start of the school year in part because of a shortage of physical education teachers.

These types of military sponsored programs advertise their worth in terms of better attendance and graduation rates, and fewer discipline problems at school.  However, critics have long contended that the program’s militaristic discipline emphasizes obedience over independence and critical thinking. The Times found the program’s textbooks falsified or downplayed the failings of the U.S. government, suggesting the promotion of “fake history”.  It is asserted by some opponents that the program’s heavy concentration in schools with low-income and non-white students helps propel such students into the military instead of encouraging other routes to college or jobs in the civilian economy.  I am a firm believer that what is needed by young people is more in the line of developing “self-discipline” and “commitment” to their studies and communities.  After all, schools are expected to provide guidance and programs aimed at self-discipline and other behavioural issues.  Not all young people respond well to the forced adherence to disciplinary measures and regimentation. 

Yes, in both Canada and the U.S. without compulsory military service, there is a shortage of personnel in the professional military.  However, a mandatory J.R.O.C.T.-like program in high schools is not going to resolve the problem.  The requirements of the modern military today are totally different from years ago.  Recruiters today are looking more for better educated and more technically savvy candidates.  Indeed, they may be better off promoting military service at the post-secondary level, especially were STEP programs are available.  If eventual serving in the military subsidizes post-secondary tuitions and other expenses, then perhaps more young people would voluntarily consider such a program.  Simply having a high school diploma no longer cuts the mustard.  Governments will have to consider improving wages, working conditions and benefits just like employers in the private sector.  The concept of “patriotism” can go only so far in today’s competitive society.

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Nov 30

Where Do Provincial Powers Begin and End in Canada?

by bcurry

To better understand the split between provincial and federal powers, given by Canada’s written constitution, one has to understand a little bit of the history.  When Canada became an independent country from Great Britain, the federal government was given a good deal of governance responsibilities.  Canada was formed as a confederation comprised of ten provinces and several territories.  However, the provinces eventually garnered a fair amount of responsibility for certain matters which were not national in scope.  Federally, the government deals primarily with inter-provincial areas such as transportation, banking, and inter-provincial commerce, as well as such international areas dealing with foreign policy, trade, defence and immigration.  So far so good.  However, during World War II, the federal government took control of areas of taxation in order to make war related payments.  These revenue areas were not returned to the provinces after the war. For this reason, the provinces have complained about their heavy reliance on access to federal funding for areas of primary provincial responsibility such as health, education and housing.  In addition, as the years passed, new areas surfaced of great importance such as telecommunications and nuclear energy, something that the federal government determined was in their jurisdiction as part of its constitutional responsibility for the peace, order and good government of Canada.  Over the course of the 20th century, legal interpretations of peace, order and good government more clearly defined the limits of federal authority over the provinces.  Often disputes over who’s responsible for what and to what extent end up in litigation by provinces and the federal government.  Like the old constitution of 1867, the new one of 1982 will remain vague in many areas until time and circumstance permit its interpretation by the courts.

All in all, the provinces continue to have substantial jurisdiction for areas such as education, health and urban affairs.  One area of contention has been the federal introduction of “equalization payments” to the provinces to help ensure that provincial governments across Canada can provide adequate services.  It was expected that the richer provinces would help to subsidize certain areas in the so-called poorer provinces.  For example, Alberta has its oil and gas industry which brings in large revenues to its coffers.  The federal government gets its share of taxes from Alberta’s energy sector and passes most along to the Maritime and other provinces to help provide some of the services that Canadians have come to rely on.  Quebec has also benefited greatly from the equalization arrangement, while Ontario has not.

Now, the current Alberta government is complaining about federal policies and laws that they feel intrude upon their provincial responsibilities or which Albertans are not in agreement with, such as gun control measures and environmental taxes on oil and gas sectors to name a few.  Recently proposed legislation introduced in Alberta would allow its cabinet to direct “provincial entities” — Crown-controlled organizations, municipalities, school boards, post-secondary schools, municipal police forces, regional health authorities and any social agency receiving provincial money — to not use provincial resources to enforce federal rules deemed harmful to Alberta’s interests.  This is a very disturbing development, suggesting even greater polarization between a province and the federal government.  Fortunately, the Alberta government has not gone as far as — like Quebec in the past — to suggest a potential separation from Canada’s confederation.

However, Alberta’s stance appears to be somewhat similar to Quebec’s political moves in the sixties, seventies and eighties where provincial parties promoting Quebec’s independence from Canada had emerged.  Failing to obtain a majority in two referendums on independence, the Quebec movement slowly disappeared over the last decade.  Instead, Quebec has attempted to secure more provincial control over former federal jurisdiction, such in such areas as immigration and public pensions plans.  Indeed, Quebec recently passed several contentious laws dealing with French language rights and secularism in its public sector.  The courts have already begun to examine appeals to such legislation based on possible violations under human and rights laws.

What all this amounts to is the power to govern.  The federal government has to play a fine line between what powers can be shared and what policies best serve all Canadians equally.  There is little doubt that provincial premiers will continue to gang up on the Prime Minister, particularly when to do so is in their interests.  The PM on the other hand has the difficult and delicate task of maintaining a strong national presence in governance in support of the peace, order and good government of Canada.

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Nov 22

Online Gambling Just One More Factor Leading to Gambling Addiction

by bcurry

In 2011, a study of problem gambling by David Hodgins, the head of the University of Calgary’s Addictive Behaviours Laboratory, was published in the medical journal The Lancet.  According to the study, online gambling is giving easy access to future addicts without having to set foot in a casino or betting parlour.  Hodgins noted that gambling disorders are often found in conjunction with other mental health and substance-abuse disorders.  In addition, experts believe that online gambling provides exactly what most addicts are looking for — anonymity.  New Canadian research shows that gamblers have “blind spots” in recognizing addictive behaviour in themselves, traits that could make online gambling even more dangerous.  In 2010, there were an estimated 2,500 illegal and unregulated gambling websites already in existence.  Governments both in Canada and the U.S. realized that they had no choice but to introduce legislation regulating online gambling and getting a monetary share of the market for the government coffers.  The latter rationale became a real driver for public support for government-regulated and safer online gambling.  However, the always-on nature of the Internet is forcing many countries, states and provinces to re-evaluate their gambling laws in order to address new trends such as betting on the outcome of a video game, playing poker online or online betting on sports of all sorts.

In both countries, the recent arrival of sports online betting pressured federal, state and provincial governments to remove previous bans on single-game sports betting.  In Canada, the federal ban on single-game sports betting was officially lifted in August 2021. Since then, all provinces have gotten into the hypercompetitive iGaming market.  In the U.S., the Supreme Court in 2018 opened the door to widespread sports betting.  However, a recent New York Times investigation found that government oversight of sports betting offers scant consumer protections and mainly looks to the industry to police itself.  In addition, there are dedicated minimal funds by the gambling industry to combat addiction.  Furthermore, several sports betting sites in the U.S. allow gamblers to put money in their accounts via credit cards.  Furthermore, gambling companies have carpeted social media, stadiums, billboards and airwaves with advertisements plugging risk-free bets and other promotions to entice new patrons.  In contrast, several countries like Spain, Italy and Australia restricted such ads, promotions or endorsements.  In Ontario, which this year became Canada’s first province to allow sports betting, the government outlawed advertisements of free bets and other promotions.  Within months companies, including DraftKings and BetMGM, were penalized by Ontario for breaking this law, although the fines were a joke when compared to their revenues.

The issue of online gambling while at work has even surfaced in some jurisdictions and among employers.  For example, in 2010 a new threat to Quebec’s productivity was raised across the province: online gambling.  Survey findings released by Montreal polling firm CROP Inc. found that one in 10 Quebecers confessed they’d been tempted to place bets over the Internet instead of doing work.  The findings also showed that 37% of respondents said their employers had no policy on using the Internet for personal interest, including online gambling, during work hours.

Like other addictions, gambling can become highly addictive.  It is estimated that as many as one in five persons who frequently gamble, online or otherwise, could become addictive to gambling.  An Ipsos-Reid survey in 2010 in Ontario found that 92 percent of adults could recognize risky gambling behaviour in others.  However, when reflecting on their own tendencies, one in five gamblers said they had engaged in the same risky behaviours over the past year, creating “blind spots” in their perception of themselves.  Despite the oversight by government agencies and commissions, the fact is that the amount of funds dedicated to help prevent gambling addiction and help those already addicted are miniscule compared to the billions the industry brings in.  According to the recent New York Times article, last year the U.S. government didn’t allocate any money to prevent or treat gambling addiction.  As per a group that represents state employees who oversee such funds, states had only set aside a total of $94 million (U.S.).  That was 0.3 percent of what state and federal governments allocated for substance abuse.

Why not just prevent people with known gambling addiction to access such sites?   Some jurisdictions in the U.S. and Canada do maintain databases of people who have asked to be blocked from gambling.  However, jurisdictions often leave it up to betting companies to download and abide by updated versions of the lists.  Several now require sports-betting companies to maintain their own self-exclusion lists, despite the evidence that companies have resisted sharing them with competitors or regulators.

While we have dealt with unregulated sports-betting and other gambling Internet sites, the fact is that we have simply replaced them with legally licensed sites.  While government regulation may appear to reassure people about the oversight of such online gambling, the fact is that the more people bet, the more governments collect taxes on gambling.  One result is that jurisdictions have, in many ways, given gambling companies free rein.  Meanwhile, the issue of gambling addictions continues and many people’s lives continue to be destroyed.

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Nov 18

For Some Reason, We Don’t Talk Enough About ‘Methane’ as a Greenhouse Gas

by bcurry

In 2021, a headline about global atmospheric carbon dioxide (CO₂) read: “CO₂ reaches its highest level in more than 4 million years.”  However, the more potent greenhouse gas ‘methane’ is not given as much media attention as CO₂.

If it escapes into the atmosphere before being burned, as the main component of natural gas, methane can warm the planet more than 80 times as much as the same amount of CO₂ over a 20-year period.  Recent data from the European Union show Canada is the only G7 country where methane emissions have increased since 1990, although the rate of increase is slowing.  Studies suggest the amount of methane released is probably underestimated.

2021 was a big year for energy markets as indicated by increases in natural gas prices. Natural gas production has more than doubled this year in many parts of the world.  In addition, in Canada there are substantial or potential deposits of shale gas in all provinces and territories except Manitoba, Prince Edward Island and Nunavut.  To get at shale gas, one has to use a process known as “fracking”.  Fracking involves injecting chemicals under high pressure into drilled wells to fracture geological formations below and allow for the release of larger quantities of both crude oil and natural gas.  In the last 20 years, large-scale commercial production of much deeper shale-gas reservoirs has become possible with new drilling techniques that combine two different technologies — horizontal drilling and multi-stage hydraulic fracturing. This process involves drilling the gas well vertically from the surface before bending it at a certain depth to penetrate the shale-gas layer horizontally or diagonally.  However, like standard natural gas drilling, the fracking process also releases methane as a byproduct.  It has been found that flares, used to dispose of unwanted methane from wells, burn off far less than the 98 percent of the gas they are assumed to.  Fracking in Canada and the U.S. now involves hundreds of new sites every year.

A recent survey of oil and gas facilities in Canada found widespread methane releases. Satellite imagery saw giant plumes of the gas escaping landfills, and a cloud of methane was detected over a natural gas field in Canada.  It identified a hidden source of pollution from one of North America’s most prolific production basins along the Alberta-Saskatchewan boundary.  However, on a broader scale, satellites can have difficulty tracking offshore emissions and releases in higher latitudes.  In the U.S., Environmental Protection Agency (EPA) data from 2019 includes emissions from drilling and fracking sites, but excludes emissions from offshore drilling, as well as some parts of the oil and gas supply chain like pipelines or processing plants.  As noted by recent research, the official data is likely to greatly underestimate actual emissions from oil and gas production, in part because it does not properly account for leaks from equipment, which can be a significant source of emissions.  As well, poorly maintained sites often mean more leaks that go undetected for longer, making them highly polluting.

Today, questions over just how much methane Canada pumps into the atmosphere come as the federal government expands regulation of the gas.  Canada is now developing regulations that would apply to all natural gas facilities, minimize use of flares, ensures those that exist work properly, increase inspection and require equipment upgrades.  The new rules are to include comprehensive, consistent emission monitoring and reporting.  The Biden administration is in the process of reinstating methane regulations relaxed by President Donald Trump.

Overall, it would appear that the oil and gas industry does not do as much monitoring of methane gas releases as it appears to do for CO₂.  There is little doubt that to deal with related environmental concerns, both industry and governments have to do a much better job of controlling widespread methane releases.  For whatever reason, this critical greenhouse gas fell off the radar.  With the evident continuing reliance on natural gas for heating and electricity production in North America, there is an immediate need to get a better handle on monitoring and release controls.  Moreover, methane emissions from leaking wells could far outweigh the benefit from replacing other fuels when it comes to our fragile environment.

Canada Cimate Change Climate Change Oil and Gas Oil and Gas US

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Nov 14

Recent Layoffs Among White-Collar Workers and CEOs Can’t Stop Saying Sorry

by bcurry

Last August a survey was released by consultant PwC which polled more than 700 U.S. executives and board members across a range of industries.  It found that half of respondents said they’re reducing headcount or plan to, and 52 percent had implemented hiring freezes.  The projected layoffs were seen to especially hit the high tech and financial sectors, primarily among middle- and lower-management.  Since rising interest rates in March resulted in home sales slowing to a crawl, there have also been widespread cuts for realtors, mortgage brokers and appraisers.  Unlike blue-collar workers where there is a current shortage of labour, most analysts would agree that this particular round of layoffs will have its greatest impact among white-collar workers.

As of today, forecasted layoffs in significant numbers are happening across the U.S. and Canada.  Many are occurring among some of our largest employers, including for example: Meta Platform Inc., Netflix Inc., Shopify, Wayfair Inc., Oracle Corp, and Apple Inc.  Walmart Inc., Ford Motor Co., Gap Inc., Zillow Group Inc. and Stanley Black & Decker Inc. also announced they plan to cut jobs at their head offices.  Of course, Elon Musk, following his purchase of the company, leads the way with his recent announcement that half of Twitter’s workforce is being dismissed.  These are all companies that did well during the pandemic, notably because of the growth in on-line sales and business.  However, now that the pandemic is coming to an end and interest rates are rising and stock price valuations are in decline, the boom appears to be over.  Thousands upon thousands are being laid off, largely because of massive hiring during the pandemic itself and management’s misreading of the markets.

The layoffs couldn’t have come at a worst time for white-collar workers given that the labour market today is extremely tight, with about 1.9 available jobs for every unemployed person.  What is interesting, many CEOs are openly expressing regret by stating that the situation is largely their fault.  They obviously recognize that they’ll probably need to hire back some of the talented and skilled people they laid off, and could be positioning themselves to recruit again when the recovery comes.  This is being done out of self-interest and to maintain a good product name.  At the same time, about two-thirds of firms surveyed are boosting pay or expanding mental-health benefits, largely to retain the remaining workers.  The most common move is making remote work permanent for more people.  For this reason, many CEOs are trying to appear to initiate the layoffs in as humane way as possible.

Otherwise, just saying you’re sorry is not enough!  There will obviously be a need to keep doors open once the economy recovers.  One question will be the nature of employment and the workplace down the road.  While replacing blue-collar workers with robotics for example is increasingly a concern, the advent of the greater use of artificial intelligence will be an issue for white-collar workers.  For example, Deutsche Bank’s CEO John Cryan hinted in 2017 that half its workers could be replaced by machines.  According to a survey in the same year by Greenwich Associates, around 75% of financial firms were intending to either explore or implement artificial intelligence technologies.  Among Canada’s five big banks, there are artificial intelligence-powered chatbots that now interact with customers through a bank’s digital channels — online, mobile and social media, and programmable software bots perform administrative tasks such as processing mortgage applications.  These virtual machines are already being tasked with some heavy lifting.

Otherwise, no one’s job is guaranteed to be safe now or in the future, including many of today’s white-collar jobs.  There is little doubt that, as more permanent cost cutting measures occur, companies will be looking to enhance their productivity and lower labour costs through the use of new technologies.  There is no profession or field of employment that is safe anymore.  The fact that CEOs are currently letting go so many white-collar workers, may also offer them an opportune time to look at new replacement strategies.  I wonder if CEOS like Elon Musk will continue to say ‘sorry’?

Labor Force Labour Force Reopening the Economy

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