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Western societies must stop the spread of Marxism

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From the Fraser Institute

By Ross McKitrick

The point is not to improve, it’s to destroy. Think of any tradition or institution that has thus far escaped attention from woke radicals and make a note. Within a year you will learn it too is under siege.

Recently in this paper, Jordan Peterson diagnosed the psychological grip woke activists have on ordinary people, urging conservatives to move beyond the slogan “It’s the economy, stupid” and start fighting the philosophical battles at hand. I would argue the economic and philosophical problems originated in the same place—the seminal text of political economy, which became the handbook for bad economics and the woke movement alike. Put simply, it’s the political economy, stupid.

I speak of The Communist Manifesto by Karl Marx and Friedrich Engels. Published in 1888 it opens with the simplistic declaration: “The history of all hitherto existing society is the history of class struggles. Freeman and slave, patrician and plebeian, lord and serf, guild-master and journeyman, in a word, oppressor and oppressed.” In the rigid oppressor/oppressed scheme, which is the heart of woke ideology, everyone is either tyrant or victim, not based on one’s choices but by the accident of historical circumstances. If you are an oppressor, you can never be anything else.

And, most ominously, everything that’s contributed to historical oppression, including all customary civil rights and social institutions, must be destroyed and replaced with a new centrally-planned society. According to Marx and Engels, “the theory of the Communists may be summed up in the single sentence: Abolition of private property.” To abolish private ownership is to abolish all individuality, replacing it with uniform group identity under the control of a totalitarian state.

And they didn’t stop there. They called for abolition of all forms of free buying and selling, all rights of inheritance, family structures, religion, private industry, parental control over education, etc. They called for the centralization of banking, industry, agriculture, all means of communication and all forms of transportation into the hands of “the State,” by which they meant themselves and their allies. “In short, the Communists everywhere support every revolutionary movement against the existing social and political order of things,” they declared. “They openly declare that their ends can be attained only by the forcible overthrow of all existing social conditions.” (emphasis added)

It was through this tortured logic that Marx and Engels convinced their followers to gain power through force, strip people of their rights and impose brutal totalitarianism. After all, what we call “civil rights” and “personal freedoms” were merely the means by which oppressors have historically exercised power. Neither Marx nor Engels nor their allies asked whether their cure might be worse than the disease. Having declared that society is nothing but oppressors exploiting the oppressed, and having declared themselves the true Advocates for the oppressed, they were duty-bound to destroy society and impose what they called “communism,” an empty word that turned out to mean nothing more than them and their fellow lunatics taking charge.

Once you understand that every institution on which society has hitherto rested, down to motherhood and milk, is a target for overthrow, today’s woke revolution makes sense. The point is not to improve, it’s to destroy. Think of any tradition or institution that has thus far escaped attention from woke radicals and make a note. Within a year you will learn it too is under siege.

The 20th century taught us that Marxist theory is false and toxic, but once it takes root it spreads quickly, including in places where people believed “it couldn’t happen here.” From 1945 until the collapse of the Soviet Union in 1990 at least half the world lived under Marxist dictatorships. Why would such an odious doctrine become popular in so many societies? How can it be stopped once it begins to spread? After the fall of communism, we in the West stopped asking those questions, and forgot how to answer them.

Marxist doctrine spreads because the “oppressed” gain instant status and power without the need for personal virtues or accomplishments. The idea holds appeal, but only to our most selfish and cruel instincts. The oppressed become exempt from criticism, and come to believe they’re entitled to take everything the so-called oppressors have, by force if necessary, or to burn the whole system down for revenge.

The only remedy for this cult-like mindset, what Elon Musk called the “woke mind virus,” is to teach people a healthy and proper loathing of victim status. The young must be taught old-fashioned values of self-reliance and individual accountability. Coddled adults who embrace cultural Marxism and its seductive promise of victim status might eventually tire of its grim nihilism, but until they do they must not be allowed to exploit or misappropriate the compassion decent people feel towards genuine victims of oppression.

Peterson is right that the underlying battles are philosophical and psychological. Many people will only become engaged when cultural Marxism begins to destroy the economy, as eventually it must. Anyone who wants to prevent another outbreak of the political and psychological horrors of the Maoist and Soviet empires must recognize the lateness of the hour and equip themselves accordingly.

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Alberta

Alberta’s fiscal update projects budget surplus, but fiscal fortunes could quickly turn

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From the Fraser Institute

By Tegan Hill

According to the recent mid-year update tabled Thursday, the Smith government projects a $4.6 billion surplus in 2024/25, up from the $2.9 billion surplus projected just a few months ago. Despite the good news, Premier Smith must reduce spending to avoid budget deficits.

The fiscal update projects resource revenue of $20.3 billion in 2024/25. Today’s relatively high—but very volatile—resource revenue (including oil and gas royalties) is helping finance today’s spending and maintain a balanced budget. But it will not last forever.

For perspective, in just the last decade the Alberta government’s annual resource revenue has been as low as $2.8 billion (2015/16) and as high as $25.2 billion (2022/23).

And while the resource revenue rollercoaster is currently in Alberta’s favor, Finance Minister Nate Horner acknowledges that “risks are on the rise” as oil prices have dropped considerably and forecasters are projecting downward pressure on prices—all of which impacts resource revenue.

In fact, the government’s own estimates show a $1 change in oil prices results in an estimated $630 million revenue swing. So while the Smith government plans to maintain a surplus in 2024/25, a small change in oil prices could quickly plunge Alberta back into deficit. Premier Smith has warned that her government may fall into a budget deficit this fiscal year.

This should come as no surprise. Alberta’s been on the resource revenue rollercoaster for decades. Successive governments have increased spending during the good times of high resource revenue, but failed to rein in spending when resource revenues fell.

Previous research has shown that, in Alberta, a $1 increase in resource revenue is associated with an estimated 56-cent increase in program spending the following fiscal year (on a per-person, inflation-adjusted basis). However, a decline in resource revenue is not similarly associated with a reduction in program spending. This pattern has led to historically high levels of government spending—and budget deficits—even in more recent years.

Consider this: If this fiscal year the Smith government received an average level of resource revenue (based on levels over the last 10 years), it would receive approximately $13,000 per Albertan. Yet the government plans to spend nearly $15,000 per Albertan this fiscal year (after adjusting for inflation). That’s a huge gap of roughly $2,000—and it means the government is continuing to take big risks with the provincial budget.

Of course, if the government falls back into deficit there are implications for everyday Albertans.

When the government runs a deficit, it accumulates debt, which Albertans must pay to service. In 2024/25, the government’s debt interest payments will cost each Albertan nearly $650. That’s largely because, despite running surpluses over the last few years, Albertans are still paying for debt accumulated during the most recent string of deficits from 2008/09 to 2020/21 (excluding 2014/15), which only ended when the government enjoyed an unexpected windfall in resource revenue in 2021/22.

According to Thursday’s mid-year fiscal update, Alberta’s finances continue to be at risk. To avoid deficits, the Smith government should meaningfully reduce spending so that it’s aligned with more reliable, stable levels of revenue.

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Alberta

Alberta fiscal update: second quarter is outstanding, challenges ahead

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Alberta maintains a balanced budget while ensuring pressures from population growth are being addressed.

Alberta faces rising risks, including ongoing resource volatility, geopolitical instability and rising pressures at home. With more than 450,000 people moving to Alberta in the last three years, the province has allocated hundreds of millions of dollars to address these pressures and ensure Albertans continue to be supported. Alberta’s government is determined to make every dollar go further with targeted and responsible spending on the priorities of Albertans.

The province is forecasting a $4.6 billion surplus at the end of 2024-25, up from the $2.9 billion first quarter forecast and $355 million from budget, due mainly to higher revenue from personal income taxes and non-renewable resources.

Given the current significant uncertainty in global geopolitics and energy markets, Alberta’s government must continue to make prudent choices to meet its responsibilities, including ongoing bargaining for thousands of public sector workers, fast-tracking school construction, cutting personal income taxes and ensuring Alberta’s surging population has access to high-quality health care, education and other public services.

“These are challenging times, but I believe Alberta is up to the challenge. By being intentional with every dollar, we can boost our prosperity and quality of life now and in the future.”

Nate Horner, President of Treasury Board and Minister of Finance

Midway through 2024-25, the province has stepped up to boost support to Albertans this fiscal year through key investments, including:

  • $716 million to Health for physician compensation incentives and to help Alberta Health Services provide services to a growing and aging population.
  • $125 million to address enrollment growth pressures in Alberta schools.
  • $847 million for disaster and emergency assistance, including:
    • $647 million to fight the Jasper wildfires
    • $163 million for the Wildfire Disaster Recovery Program
    • $5 million to support the municipality of Jasper (half to help with tourism recovery)
    • $12 million to match donations to the Canadian Red Cross
    • $20 million for emergency evacuation payments to evacuees in communities impacted by wildfires
  • $240 million more for Seniors, Community and Social Services to support social support programs.

Looking forward, the province has adjusted its forecast for the price of oil to US$74 per barrel of West Texas Intermediate. It expects to earn more for its crude oil, with a narrowing of the light-heavy differential around US$14 per barrel, higher demand for heavier crude grades and a growing export capacity through the Trans Mountain pipeline. Despite these changes, Alberta still risks running a deficit in the coming fiscal year should oil prices continue to drop below $70 per barrel.

After a 4.4 per cent surge in the 2024 census year, Alberta’s population growth is expected to slow to 2.5 per cent in 2025, lower than the first quarter forecast of 3.2 per cent growth because of reduced immigration and non-permanent residents targets by the federal government.

Revenue

Revenue for 2024-25 is forecast at $77.9 billion, an increase of $4.4 billion from Budget 2024, including:

  • $16.6 billion forecast from personal income taxes, up from $15.6 billion at budget.
  • $20.3 billion forecast from non-renewable resource revenue, up from $17.3 billion at budget.

Expense

Expense for 2024-25 is forecast at $73.3 billion, an increase of $143 million from Budget 2024.

Surplus cash

After calculations and adjustments, $2.9 billion in surplus cash is forecast.

  • $1.4 billion or half will pay debt coming due.
  • The other half, or $1.4 billion, will be put into the Alberta Fund, which can be spent on further debt repayment, deposited into the Alberta Heritage Savings Trust Fund and/or spent on one-time initiatives.

Contingency

Of the $2 billion contingency included in Budget 2024, a preliminary allocation of $1.7 billion is forecast.

Alberta Heritage Savings Trust Fund

The Alberta Heritage Savings Trust Fund grew in the second quarter to a market value of $24.3 billion as of Sept. 30, 2024, up from $23.4 billion at the end of the first quarter.

  • The fund earned a 3.7 per cent return from July to September with a net investment income of $616 million, up from the 2.1 per cent return during the first quarter.

Debt

Taxpayer-supported debt is forecast at $84 billion as of March 31, 2025, $3.8 billion less than estimated in the budget because the higher surplus has lowered borrowing requirements.

  • Debt servicing costs are forecast at $3.2 billion, down $216 million from budget.

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