Co-operative Commonwealth Federation, the forerunner to the NDP, had no doubts about its economics. Born in Calgary in 1932, it laid out its thought for all to see a year later in the Regina Manifesto.
Unlike the Bennett Conservative government, the CCF wanted to do something about the economic collapse known as the great depression: replace capitalism with a planned economy. The ambitious CCF agenda featured public ownership, income security for all and price supports for agriculture.
The initial CCF supporters were farmers, academics, trade unionists and the "ginger group" MPs. In 1935, its first general election, the CCF got less than 10 per cent of the popular vote but elected seven MPs. The party leader was J.S. Woodsworth, the consummate Christian socialist.
The party never enjoyed electoral success, but it had an important triumph: CCF economics were adopted in Canada during the Second World War. A planned economy, full employment, access for women to the labour market and massive public borrowing by the Bank of Canada were adopted to "win the war." Seeing socialism feed the war machine did not please all party members. The CCF included pacifists who opposed all militarism, notably Woodsworth, who resigned as leader, just before his party voted its support for the war in the House of Commons.
The planned economy was quickly dismantled after the war. While Regina Manifesto style income support measures were maintained (unemployment insurance and the family allowance, plus the Old Age Pension) the Canadian economy returned to its capitalist ways.
In the postwar Cold War period, the CCF were a main target of the campaign against communism, ironically, since the CCF spent much of its energy fighting with Canadian communists, inside the party, and out.
In 1956, the CCF replaced the Regina Manifesto with the more moderate Winnipeg Declaration. It did not help party fortunes. In 1958, the Western base abandoned the party for Diefenbaker who swept the country. With the Canadian Labour Congress, the CCF decided to become the NDP in 1961.
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Unlike its predecessor, the NDP planned to humanize capitalism not eradicate it. NDP economics were a blend of Swedish social democracy, Keynes and Western populism. Socialism was represented by support for publicly owned crown corporations.
Today, nearly 50 years after its founding, New Democratic economics are somewhat like Russia as seen by Churchill, a riddle wrapped in a mystery, inside an enigma. Ever since the Broadbent era (1975-89), the party has campaigned in defence of the welfare state, highlighting the fight to preserve public healthcare. With internal polling data and focus group information saying the NDP had little credibility on the economy, the subject has been off limits at election time, which is when people pay attention to what the party says.
On fiscal policy, the party has taken over the provincial NDP policy position: balanced budgets. While party insiders presumably know that the federal government has a central bank, and a currency, while the provinces have neither, the party has been unwilling to take on the challenge of presenting a progressive alternative to monetary policy. This is a serious shortcoming. Though it is not well recognized, since the world moved to generalized floating exchange rates in the early 1970s, the Bank of Canada, not the Finance Department, has been leading on economic policy.
You would think a party co-founded with labour would have a coherent industrial strategy, worked out on a sector-by-sector basis, using the knowledge base of industrial trade unions, but it does not. An agricultural strategy should be an obvious strength for a party with farmer-labour roots, but New Democrats are no longer the voice of farmers.
Where the party does speak out with confidence is on tax policy, assailing corporate tax cuts. With Jack Layton as leader the party has talked about the importance of tying economic policy to conserving energy, though retrofitting infrastructure. Layton also understands municipal finance, and why many cities cannot access the Conservative stimulus package money which requires municipalities match the federal funds.
New Democrats have shelves piled high with convention resolutions on economic policy, but no plan or program for replacing speculative financial capitalism with an economy that serves people. Since merely mentioning such subjects, and using such language, brings whoops of laughter to the mainstream media, and joy to New Democrat opponents, this is understandable, but not good enough.
Canada needs to hear more about New Democratic economics. Releasing discussion papers on the main issues facing the country would be a modest contribution to broadening economic dialogue inside the party and out. In the midst of a colossal economic collapse, why avoid debate with the manufactured consent passed off as mainstream thought on economics?
New Democratic economics has several advantages over what we are currently being offered. For a start, it can speak to justice for all, and the main principles can be written in common language.
Working people create wealth and sustainable prosperity, and need to be able to control their own lives. Education, health, income security, transportation, recreation, cultural activities, and yes, housing, all need to be available to everyone.
Too few people have too much, the rest not enough. A society based on inequality is not healthy, it makes people sick. Freeing up profit maximization to act as the sole significant economic incentive has led to the "whatever you can get away with" ethic. Treating others as you would expect to be treated yourself works better. Public investment should be favoured since it can be carried out with more certainty of producing a positive return as improved quality of life for more people than private investment.
The current economic calamity is worldwide. New Democrats can be inspired by others. Canadians need to hear about the best economic ideas available anywhere in the world.
Duncan Cameron writes from Quebec City.
Duncan, you have outlined some reasons New Democrats should enter seriously into creation of economic policy that will not be laughed at, but you've missed a major considerattion. While Jack pokes at the easy mark of corporate taxes, a historical role for social democrats going back to "corporate welfare bums" in the 70s and before, what sustains everyone's pension in their old age if it is not investment in that corporate world? Even the person on the street understands that. What's the alternative to growing healthy corporations (and, of course, keeping them in the country).
And just as importantly, does anyone believe, truly believe, that talk about greening the economy? It means diddly squat if the leadership does not itself have a vision of what we will need to produce in our endangered future just to stay warm in winter?
This subject area dies in babble, perhaps for the same reason it is never developed in the real world. I suspect it's the fear factor now, although unions did their level best to reject and subvert the environmental questions over the years, beginning in the early 70s. And the Greens lie their libertarian way to prominence in the vacuum provided them.
Great article, Duncan. I agree that the party has no clear plan to transform our economy. Looking to other democratic socialist countries, as well as tapping progressive Canadians for the best home-grown ideas makes perfect sense.
However, my experience at the federal convention in Halifax has convinced me that the NDP establishment isn't interested in new ideas. They prefer to shut down any debate that threatens to become the least bit innovative or controversial.
The democratic deficit within the NDP is the greatest obstacle to our success. It's up to party members and riding associations to take back the NDP from party/union bureaucrats who treat the party as their private club.
If we can't democratize the party, then voters and activists will look to Greener political pastures, and we'll become the Social Credit Party of the left.
Good article Duncan, but the NDP is not the only entity that is missing some real discussion about fundamental change in the economic system. Capitalism just barely escaped an implosion that would have ruined all those pension schemes and triggered a deep and long depression. Only massive public intervention saved it. We are facing a new reality requiring new concepts.
I do disagree with your comments regarding the federal NDP position on balanced budgets. To quote from the Regina Manifesto "All public debts have enormously increased and the fixed interest charges paid there on now amount to the largest single item of so-called uncontrolled public expenditures. The CCF proposes that in the future no public financing shall be permitted which facilitates the perpetuation of the parasitic interest receiving class"
The political Right have used public debt as an exuse to strangle public programs.
This article states:
"New Democrats have shelves piled high with convention resolutions on economic policy, but no plan or program for replacing speculative financial capitalism with an economy that serves people."
In response, I invite readers to consider the following as a plan for 'Co-operative Socialism' - one that is explored more at sustainabilitynotcapitalism.blogspot.com and interestfreemoney.org, and which, I hope, helps map a new, decentralized co-operative socialist alternative as a successor, in light of experience, to the (excellent for its time!) Regina Manifesto.
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The Campaign for Co-operative Socialism
A Seven Point Action Plan for Co-operative Socialism
1) Co-operatives and peace, not corporations and coercion
Convert competitive, market-based activities into workplace co-operatives and remodel monopoly activities as community co-operatives: each co-op demonstrably operating according to the Co-operative Values and Principles of the International Co-operative Alliance, and with each co-op having respectful time-limited stewardship, from the commonweal, of appropriate land and knowledge resources, (See points two and five for the funding mechanism to achieve this);
2) Not-for-profit banking and financial structures as co-ops - Predistribution, not Redistribution
Distribute the added-value created wealth from these workplace co-ops through nationally collected, co-operative corporate taxation, distributed into local, democratically-controlled, Community Banks, and, so, make money and credit available for eco- and socially-responsible wealth creation, community development and global care - and the conversions referred to above;
3) Step-wise abolition of money as access to needs - global stewardship for needs and care, not private resources for profit
Maximise necessary service provision (health, education, libraries, transport, and so on) on a co-operative, free-at-the-point-of-use basis: retaining money only as a mechanism for access to discretionary purchases;
4) Fair, Guaranteed Incomes - Equality of income for all
Introduce guaranteed fair income for all, within upper and lower brackets: based upon a liveable, fair Citizen's Income, and, so, do away with the need for direct and indirect personal taxation - income tax, sales taxes, and so on;
5) Abolition of for-profit money - An end to usury/riba, and of banking as global warfare
Abolish money-lending and credit-creation for profit, and, so, operate banking as a community-controlled co-operative public service (See point two above);
6) Regulated inter-national relations - An end to global exploitation through financial speculation
Reintroduce international exchange controls, a Tobin Tax, etc, as necessary
7) All our sisters our brothers, and all our brothers our sisters - One in all, one for all, all as one, all in one
Make capital grants (not loans!) to developing countries.