May 2008: Money & Debt

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Illustration by TJ Vogan With Canadians’ debt levels at record highs and the U.S. economy in the midst of a massive housing/credit deflation, Briarpatch takes a sorely needed critical, radical look at the politics of money and debt in this issue. From exposing the spectre of diabolical materialism to offering “concrete” investment strategies and tools for getting out of debt, from profiling alternative currencies to outlining the options for conscientious objection to military taxation, Briarpatch puts its money where its mouth is.

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By Jan Slakov
Briarpatch Magazine
May 2008

“Let them demonstrate, just as long as
they continue to pay their taxes.”

-Alexander Haig

If you feel strongly that it is wrong to pay for war and militarism, then you are a conscientious objector to military taxation. If you act on those beliefs by redirecting the military portion of your taxes towards a peace tax trust fund that invests in non-violent programs, then you are an active conscientious objector to military taxation.

In times of conscription, many governments recognize the rights of conscientious objectors-people whose ethics or religious beliefs forbid them from killing people during a war-to refuse military service. During the Second World War, for instance, Canada had about 10,000 conscientious objectors to military service. Instead of participating in killing, they were given alternate duties in agriculture, industry or other work.

In Canada’s current war in Afghanistan, however, most Canadians’ participation in the war is limited to the tax dollars they pay towards it. This makes it much more difficult for conscientious objectors to remain true to their convictions. A small but growing movement is seeking to change that.

Today, fewer than 300 Canadians are actively involved in conscientious objection to military taxation. One reason for the low numbers of objectors is the lack of any formal, government-sanctioned “alternate service” option for military taxes. Indeed, Canada does not yet have a law to enable conscientious objectors to military taxation to redirect a portion of their tax dollars towards non-violent programs.

Conscience Canada, a group that advocates for the rights of conscientious objectors, has been working for almost 30 years to obtain such a law. Over the years, many Canadians have withheld the military portion of their taxes and some have even gone to court to try to prove that the government is obliged-by virtue of our Charter of Rights and Freedoms and by historic precedent-to respect the rights of conscientious objectors to military taxation.

Many people have their taxes deducted by their employer, however, so it is logistically cumbersome for them to withhold the military portion of their taxes. But even if a conscientious objector to military taxation can’t withhold the military portion of their taxes, they can still let the government know that they want their taxes spent on non-violent security-building measures rather than the military by completing the Peace Tax Return that Conscience Canada publishes each year at tax time.

As Justice Thomas Berger once stated, we live in “an era in which citizens’ taxes, rather than their bodies, are conscripted.” Indeed, conscientious objectors to military taxation argue that taxpayers have a key role to play in building a culture of non-violence. Edith Adamson, one of the founders of Conscience Canada, once remarked that, “War now depends more on money than on personnel; it only took 12 men to drop the bomb over Hiroshima, but it took millions, perhaps billions, of taxpayers’ dollars in Canada, Britain and the United States to develop that bomb.”

Why object to military taxation?

It is surely even more objectionable for those whose scruples forbid participating in war to pay others to participate rather than to enlist themselves. And refusing to pay war taxes can be a very powerful act. This simple act of refusal raises awareness about the role our taxes and our government’s foreign policy play in fostering militarism, and constitutes an important counterbalance to such policies. Former U.S. Secretary of State Alexander Haig made the significance of war taxes explicit when he said, while watching a large anti-war demonstration, “Let them demonstrate, just as long as they continue to pay their taxes.”

Dedicating our financial resources towards a peace fund enables us to begin thinking strategically about all the things that could be achieved if the resources currently being devoted to war were redirected towards meeting fundamental needs. The impact of this shift would be monumental: the World Game Institute has tallied up the cost of funding 17 programs for “what the world wants,” including removing land mines, eliminating starvation, providing clean, safe energy through efficiency and renewables, providing health care and addressing the AIDS epidemic, stopping deforestation and soil erosion, and more. The total comes to less than one-third of the $1 trillion the world currently squanders on militarism.

Conscientious objection and the war economy

Our economic system is set up like a Monopoly game, with wealth inevitably concentrating into fewer and fewer hands as the game progresses. Like a cancer, this concentration of wealth and power requires endless growth, fuelled by the exploitation of economic peripheries and marginalized populations. As we progress into the “Monopoly End Game,” however, it becomes increasingly difficult to find new ways to feed the cancerous economy. War is essential at this stage, as Mike Nickerson explains in his book Life, Money & Illusion: “The ‘War on Terror’ has helped keep money circulating. It is an ultimate make-work program that provides huge growth opportunities in the manufacture of massively destructive weapons and then doubles those opportunities through contracts to reconstruct the things those weapons destroy.”

By refusing to pay for war, we are objecting to the economic system we have created and increasing the political pressure to implement a new system. In the francophone world this connection has been made clear through the creation of a new movement for “objectors to growth” (objecteurs de croissance) which is a pun on the French term for conscientious objector, objecteur de conscience. Indeed, in Quebec many of the same people who have been involved in the peace tax movement are currently involved in the movement for voluntary simplicity. And throughout the world, groups and individuals advocating conscientious objection have traditionally also advocated reduced consumption and support for local economies.

Two common objections to the peace tax movement

1. “But we’re a peacekeeping nation”

Some people who object to the peace tax movement cite Canada’s traditional role on the world stage as a peacekeeping nation. And indeed, Canada was once among the top 10 contributors to UN peacekeeping missions. Now, however, of the 60,000 UN peacekeepers currently deployed, only 60 are Canadians. By way of contrast, Canada currently has 2,800 military personnel deployed to Afghanistan as part of NATO’s International Security Assistance Force.

And indeed, while some conscientious objectors object to any use of weapons, many would willingly contribute to peacekeeping missions, even if weapons were involved, as long as those missions were acting to uphold the law and protect human rights. It would be necessary to thoroughly rethink the way peacekeeping forces are trained and deployed in order to meet these criteria.

2. Isn’t this just a way to avoid paying taxes?

When some people first learn of the peace tax movement, they may suspect that conscientious objectors to military taxation are motivated by greed-keeping more of their tax dollars for themselves rather than paying their fair share to the government.

But this is no tax scam. Through Conscience Canada and the Quebec-based group Nos impôts pour la paix (Our Taxes For Peace), Canadians can withhold the military portion of their taxes and invest it instead in “peace tax” funds maintained by these groups. Those deposits will be returned to the depositor on request. For instance, if Revenue Canada were to seize money from a conscientious objector’s bank account in order to obtain the full amount of taxes owed, the objector would probably want their deposit returned.

Knowing that some of the most horrible crimes ever committed were “legal” reminds us that it is our duty to follow the dictates of our conscience, even when these principles conflict with what is legally permissible. Current and former parliamentarians from all of Canada’s major political parties support the passage of peace tax legislation. Indeed, the most recent parliamentary introduction of the Conscientious Objection Act was on June 13, 2007, when NDP Member of Parliament Bill Siksay introduced Bill C-460, the most up-to-date version of the bill. Many people who are not themselves conscientious objectors may still want to support this bill, because its passage would, as Siksay has pointed out, help bring our policies more closely into line with our purported values. Canada’s constitution, for instance, is based on the principles of “peace, order and good government,” yet militarism systematically undermines those values.

One of Canada’s most influential conscientious objectors to military taxation is Conservative Senator Nancy Ruth: “I am one of these Canadians who for some years has withheld from my income tax payment the percentage of the military budget. I have put that money on deposit with the peace tax fund held by Conscience Canada. I encourage you to do so too.”

The promise of “alternative service” for tax dollars

The Stern Review Report on the Economics of Climate Change argues that it would cost citizens of the world’s richest countries $430 per person per year to prevent the most disastrous effects of climate change by cutting greenhouse gas emissions. In 2007, Canadians spent more than that-about $546 per person-on the military. And many would argue that cutting greenhouse gas emissions would promote true security, whereas joining in the so-called “war on terror” actually undermines our security.

Since there is a real need for humanitarian intervention to protect vulnerable populations in many places in the world, many conscientious objectors to military taxation already support or participate in non-violent peace force missions such as those organized by Peace Brigades International, the Christian Peacemaker Teams and the International Solidarity Movement. Imagine how much more effective these efforts could be if these groups had access to infrastructure and resources on par with those currently allocated to our armed forces.

Jan Slakov has been a member of Conscience Canada and its predecessor for over 25 years. She lives on Salt Spring Island.

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Buy this car to drive to work
drive to work to pay for this car.”

Metric

When the world is combusting all around us, it seems a little petty to devote an entire issue of Briarpatch to questions of debt and personal finance. But in many ways, the subject couldn’t be more pressing or more in need of radical intervention. Canadians’ debt levels have never been higher, and widespread indebtedness, in addition to serving as an effective vehicle for transferring more wealth to the wealthy, also acts as a powerful means of social control. Debt restricts people’s choices, compelling them to work longer hours at jobs they hate, and limits their ability to unplug from the engine of growth and to seek out alternate ways of sustaining themselves and their communities.

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By Don Sawyer
Briarpatch Magazine
May 2008

In fighting plans for a mammoth big box store that would devour the small city I call home, I have made a startling discovery: a dangerous cult has spread from the heart of darkest Arkansas, jumped the border and brainwashed millions of innocent Canadians into its doctrine of diabolical materialism.

The cult I speak of is called Wal-Marxism, and it is so pervasive and insidious that it is quickly supplanting all other contemporary belief systems. Wal-Marxism can be summed up in a single statement promulgated by leading Wal-Marxist theorists: “From each according to his/her ability to mortgage, borrow, leverage and squander, to each according to his/her constantly expanding, insatiable, advertising-fuelled need for stuff.”

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By Calvin Neufeld
Briarpatch Magazine
May 2008

The plan: save money, buy land, build a house, grow food, heat with wood, quit jobs, and self-sustain­ — all without going into debt.

Although I was raised in the suburbs of Montreal, my life today resembles that of my Mennonite ancestors. In the winter I bathe in a tub of snow (melted and heated first, of course). I live in a one-room house without electricity or plumbing. I do my business in an outhouse, or sometimes, to my wife’s displeasure, in the great outdoors. I cut and chop all of my own firewood, and gather twigs almost daily for kindling. It’s hard work, but it pays off. The earth isn’t the only beneficiary of this lifestyle, either; this is my ticket to financial independence.

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Illustration by TJ Vogan

By Geordie Gwalgen Dent
Briarpatch Magazine
May 2008

Ah, springtime, 1930. U.S. stock markets had slightly recovered from the “Black Tuesday” crash of the year before. Credit was cheap and the Western world was spending freely. Though people had been spooked, optimism reigned again. Few people knew that the entire global economy was on the edge of a precipice and about to begin a slow, brutal, downward spiral that would usher in almost a decade of misery for countless Canadians and others around the world.

If you’ve been following the recent financial news about the “subprime crisis” closely, some of this might sound eerily familiar. This financial fiasco involving thousands of mortgage defaults in the U.S. was considered by many to be a minor bump in the road when it made headlines last August. And now? The U.S. is in recession and there is speculation it will spread to other countries.

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By Dave Oswald Mitchell
Briarpatch Magazine
May 2008

“The rich ruleth over the poor,
and the borrower is slave to the lender.”

Proverbs 22:7

Reasons to get out:

1. We are a nation of debt slaves

“Debt throughout most of history has been little more than a slight variation on slavery,” wrote Michael Hudson in his prescient May 2006 article in Harper’s (”The New Road to Serfdom: An illustrated guide to the coming real estate collapse”). Today, however, perceptions have changed to such a degree that a mortgage is now seen as an “investment,” and levels of personal indebtedness for both Canadians and Americans have never been higher.

The Vanier Institute of the Family recently reported that Canadians’ household debt rose seven times faster than income between 1990 and 2007. This debt now represents a record 131 per cent of average household income, meaning that for every $100 of net income earned in Canada last year, $131 was owed.

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Photo by Nichole Huck

By Kubate Baba Edward
Briarpatch Magazine
May 2008

My thoughts on money and investing have been shaped by my upbringing. I was raised in a 20-person household in northern Ghana. Six of us shared a small hut, beautifully roofed with thatch. The rest of my relatives lived in adjacent huts. We sustained ourselves on earnings from a small rice and millet farm. Whatever little money or food came into the home was shared equally among us.

Life with six people in a small hut was not easy. We would clamour for space like an elephant trying to enter a pigeonhole. I was often embarrassed when friends came from the city to visit me. Accommodating these friends often meant having to sacrifice my sleeping space and pass the night outside in the cold. This experience lingered in my mind and compelled me to own my own house, even if it meant the last drops of my blood.

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