Thoughts from China: Socialism, a Work in Progress

by Brad Janzen

Editor’s note: The author is teaching English in China.

BEIJING – I arrived in Beijing on June 25.  My first time in Asia. My first time outside of the Western hemisphere. Though I had studied some Chinese, I was a bit overwhelmed at the communication barrier as I walked into a restaurant to order my first meal here.  The menu was all in Chinese, with no pictures, and no pinyin. (Pinyin is the transcription of Chinese to the Latin alphabet, with accent marks denoting the tones).  Nevertheless, after being here for two and a half months, my Chinese is slowly improving.

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My initial impressions of Beijing and China were, and still are, complex. China has surpassed Japan and Germany to become the second largest economy in the world, and China’s GDP will likely pass that of the U.S. in a few years. China’s economy is a mixed economy, with the state controlling much of what Lenin called the “commanding heights” of the economy, but with a large capitalist sector, and with an enormous number of small businesses. While the state permits capitalist enterprises, including foreign companies, to operate here, the state retains the ownership of the land, and essentially is granting the company the privilege of using the land in the interest of development. Continue reading

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What are Wages? How are they Determined?: Wage Labour and Capital

If several workmen were to be asked: “How much wages do you get?”, one would reply, “I get two shillings a day”, and so on. According to the different branches of industry in which they are employed, they would mention different sums of money that they receive from their respective employers for the completion of a certain task; for example, for weaving a yard of linen, or for setting a page of type. Despite the variety of their statements, they would all agree upon one point: that wages are the amount of money which the capitalist pays for a certain period of work or for a certain amount of work.

Consequently, it appears that the capitalist buys their labour with money, and that for money they sell him their labour. But this is merely an illusion. Continue reading

Corporate Taxes: Now Is Not the Time for Ontario to Cut Them

Toronto Star editorial

Low corporate tax rates didn't stop Caterpillar from fleeing London, Ont.

Low corporate tax rates didn’t stop Caterpillar from fleeing London, Ont. ERIC LALMAND/AFP/GETTY IMAGES

Ontario has a $16-billion deficit and since economic growth is projected to be slower than we’re used to, there is no easy way back to balance. No wonder public concern is mounting over how the Liberal government intends to raise revenues and reduce costs in its upcoming budget.

It’s a lot of ammunition for any opposition party to work with. And, this week, Progressive Conservative Leader Tim Hudak firmly picked his battleground: more tax cuts for big business. Continue reading