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Lethbridge Herald, The (Newspaper) - December 9, 1974, Lethbridge, Alberta 4 THE LETHBRIDQE HERALD Monday, Dtctmbtr 9, 1974 I) ITO It IAI Suffering from special status There can't be many jobs in Canada as likely to have as many seemingly in- soluble problems as that of the minister of Indian affairs. If Mr. Judd Buchanan harbored any notions that he had entered a safe sinecure in being named to that of- fice he must now be disabused of them as a result of the Calgary confrontation and subsequent calls for his dismissal. A lot of Canadians are as unhappy about the conditions under which Indians live as are the Indians themselves. They are especially concerned about the difficulties likely to be experienced by Indians as they are caught up in the national and inter- national trend toward urbanization. Other rural' people moving into the cities do not face quite the same kind of demoralizing effect of change as the In- dians. They do not have to bridge as large a cultural gap; they are not usually as lacking in education or training; they do not come out of a kind of paternalistic cocoon; they do not encounter racial pre- judice. In consequence, they tend to adapt more quickly and merge into the urban community. A good part of the difficulty of Indians overcoming obstacles and adjusting to city life is precisely the resistance to ad- justment inherent in claiming special status. The rejection of the government's White Paper proposal that Indians become full citizens of the country may make some kind of sense from a reservation perspective; it doesn't make much sense when the reservation is left. It may seem somewhat ludicrous for Indian chiefs still wedded to reservation life to be negotiating with Mr. Buchanan on behalf of people who are now in an en- tirely different milieu. They can only talk in terms of special status when something different is obviously re- quired. Maybe a certain time period away from the reserve is required before special status lapses. The shock effects of transition may be softened by knowledge that a retreat back to the reserve is possible. That consideration would give the chiefs a legitimate place in the consultations. They also have another reason for sharing in the consultation. More needs to be done on the reserve to prepare peo- ple for leaving it the inculcation of pride and the equipping with a better education are essential. The chiefs can press for programs to make this possible. Down the road somewhere the special status of Indians will have to be abolished. It will have to come at the re- quest of the Indians themselves and it will have to apply to those at present on reserves as well as those in the cities. As the chiefs wrestle with such matters the root problem of special status may become apparent. Letters Understanding truth "You don't have to be rude just because the government is seeking to do something about unemployment." Employment for whom By Richard Gwyn, Toronto Star commentator What price democracy? Recent government action in India may remind Canadians of events that took place in this country four years ago. It may also prompt them at least it should to think about the nature of a democratic society. A presidential order has deprived alleged smugglers and racketeers of all their constitutional rights. The Indian government may now arrest persons suspected of smuggling or of illegal foreign-exchange deals and similar crimes and it may imprison them indefinitely without further ado, without any legal action whatsoever. All it takes is suspicion. The order was promulgated under emergency powers which have been in effect since the Bangladesh War of December, 1971. The decree, which has been termed "naked and by all opposition par- ties from the right wing to the Com- munists, was evidently considered necessary by Mrs. Gandhi because organized crime is said to be making off with billion a year from India's economy. Her government has tried to assure opponents of the measure that it will be used only against smugglers and other racketeers. However, since it can be invoked not just by the central government but also by state and district governments, there are fears that it may become a convenient tool for repressing political opposition. Criticism of the measure has come not just from political opponents but from newspapers and even civil servants. In the face of this opposition, Mrs. Gandhi has decided to convert the order into a legal bill. The action is the culmination of a crack down on illegal activities that was undertaken two months ago and met with general public approval until the institution of this draconian measure. In those two months, some 500 smugglers and racketeers were arrested. Twenty of them were released because of grossly insufficient evidence and it is reported that the prime minister's frustration over these releases led to her bypass the court system. Some approval of the measure will come from those who recognize that widespread corruption has been a serious factor in India's worsening economy. But they should remember that political corruption exists side by side with economic corruption and the new decree is a political weapon of ex- treme temptation. If the institutions of democracy, including the legal rights of all citizens, are not sufficient to meet a crisis, then democracy as a form of government is in trouble. Trudeau's approach praised From the Wall Street Journal "Persistent unemployment is acceptable neither to the people involved, nor to the community generally, nor to the Government of Canada Governments should consider the establishment of a Com- munity Employment Program. Its purpose would be to provide socially useful employment to people who have been unemployed for an extended period of time." Orange Paper on Social Se- curity in Canada, published by Welfare Minister Marc Lalonde, April 16, 1973. "No new programs iden- tified as 'community employment' are proposed the primary objective of the (three-year) development phase is to create a sound learning process The extent to which any additional jobs should be created would be a matter we could determine jointly." "Community Employment a confidential paper prepared by Manpower Minister Robert Andras for federal provincial conference on social security, November 19 to 20, 1974. Brave ideas in politics never are kiljed by a single, bold blow; instead they are bled to death by timid politicians and bureaucrats, who do the job with a thousand cuts. Except as a paperwork fan- of the 13 pages of Andras' document describe the new bureaucratic struc- tures to be com- munity employment program has been gutted of purpose and of meaning. Its collapse represents the first failure of Lalonde's two-year attempt to overhaul Canada's billion a year social security system. "The first strategy in providing income security to declared the 1973 Orange Paper, "must be to provide people with income through While Washington is immersed in doom and gloom over the shape of our economy, Ot- tawa's only problem is how to minimize the impact of U.S. stagflation on the Canadian scene. It's not doing badly. Unemployment actual- ly declined last month, to 5.4 per cent. There have been layoffs in the auto plants, but only those that manufacture cars for sale in the United States. Those that make cars for Canadians are going full throttle. Consumer confidence is high, real personal incomes are rising, and although the inflation rate is almost as high as ours, there is real economic growth on top of it. If Canada stopped worry- ing about having its dollar get out of line with ours, and simply let its dollar advance, it would no doubt do better on inflation too. What is the key to Canada's success? The one possibility we would like American liberals to contemplate is Mr. Trudeau's bold gamble two years ago, inspired by Finance Minister John Turner, to slash the corporate tax rate to 40 per cent from 49 per cent. The leftwing New Democratic Party screamed and the Conservative Party grumbl- ed about an inflationary effect. But once it was pushed through, Canada became a magnet for outside capital even as it generated it internally. Successive surveys of capital spending plans showed jumps from nine per cent to 13 per cent to 20 per cent. Canada would be in even better shape now if Mr. Trudeau had not been forced to appease nationalistic passions by throwing up screens against foreign capital. There has also been a debilitating struggle between Ot- tawa and the provincial governments over who gets to tax the oil and mineral com- panies. The contest has immobilized ex- ploration, with the overtaxed oil and mineral firms taking their rigs and capita! south. The other Canadian innovation, introduced last year, was a Tory idea, one happily adopted by Mr. Trudeau. The progressive tax brackets and major deductions and exemp- tions are adjusted each year so the government's revenues don't increase because of inflation. Here, if inflation amounts to 10 per cent in a year and you get a 10 per cent wage increase, your purchasing employment rather than in- come through social assistance." As an alterna- tive to welfare, the govern- ment would create jobs for the physically and mentally handicapped, for the "socially" handicapped, that is those with little education or skills, and for the chronically unemployed. Government, though this specific commitment was not made in the Orange Paper, thus would become the employer of last resort for all those whose special dis- abilities (for example, ex- convicts and ex-mental hospital inmates) made jobs almost impossible to find or for whom, even if healthy and fully qualified, there were no jobs available in the region in which they as in the depressed areas of the Maritimes and Quebec, or in the north, among native peoples. This original version of community employment represented the essential third element in the three- point program of social security that Lalonde, and Andras discussed with pro- vincial welfare ministers at a closed conference in Ottawa recently. The other two points of La- londe's program, approved by the meeting as one of three broad options for social security reform, are "income supplementation" for the working poor, that is for those employed at or close to the minimum wage and who un- der the present system can often make more money on welfare, and "income sup- or a guaranteed minimum income for those unable to find work under any circumstances. Lalonde himself is more a conservative than a liberal, and, much more important than either of these labels, is a political realist. Jobs for the unemployed, even if manufac- tured by government, are far more acceptable to the public than is welfare. To win political support for increased social security spending, Lalonde counted on a parallel community employment program that would cut welfare rolls and so cut also the costs of new social assist- ance programs. Lalonde now has to design, and much more difficult, to sell, his income support and income supplementation proposals on their own. Andras' version of com- munity employment is, and even these descriptions are too polite, a caricature and a charade. It amounts to a three-year research exercise that will create more jobs for civil servants than for the un- employed. At the Ottawa meeting An- dras offered provincial welfare ministers a three- year "developmental phase" that would "assist in the elaboration of an overall com- munity employment strategy" bureaucratese that does not commit the government even to im- plementing an actual com- munity employment program once the three years are up. Research will be conducted into 20 projects, none yet selected, planned to be but a mix of Manpower training, employment counselling and direct job creation. Funds available this year wijl be million, of which in fact less than million will be expend- ed and the balance shifted back into existing Manpower programs. Andras by no means is with- out skill, or courage. He has shown both qualities in his handling of the difficult issue of reform of the unemploy- ment insurance act and of the incomparably more difficult and sensitive issue of im- migration. He has lost his nerve over community employment. Somewhere down the line newspapers took it upon themselves to render judg- ment upon public perfor- mances. Having had the op- portunity to attend a perfor- mance of Zorba the Greek I find The Herald review, in retrospect, quite inadequate. While comments were made on the quality of presentation, little was said concerning the nature of the play. Perhaps it is not the role of the critic to comment on such. Although Zorba was fairly entertaining, it was much more, it was a play of im- mense spiritual importance. How many, I wonder, were able to perceive the host of simple, profound spiritual messages beamed towards them? I am confident in asserting that Zorba was created primarily for the sole purpose of disseminating cer- tain spiritual truths, with musical entertainment used as the vehicle. More than ever, Zorba demonstrated vividly the vast difference that lies between those who claim to know and understand truth and those who have it already within as a working part of their con- sciousness. For example, when confronted by a somber priest as to why he did not at- tend church, a buoyant Zorba was quick to reply that God was everywhere, so why seek Him in a dusty old church? A simple answer, yet a very profound one: one that almost all the world's religions seem to have forgotten. It should be the goal of every man, woman and child, to be like Zorba, exuberant and free. When one can dance, when it would be easier to be sad, when one can laugh when it would be easier to cry; that individual has risen high above the human state of con- sciousness. When one fears nothing and can be content with just a little; when one can live for life, for the joy and ecstasy of living, and not for profit; that individual is well on the way towards the mastery of life. .When one can love unselfishly without emotion, without possessing; when one can extend his hand in friendship towards his greatest enemy; that in- dividual has transcended all the lower planes, all of man's sciences, all of his religions, his philosophies. Material possessions, regardless of what we have been taught, can never bring security. The most secure person is the one who has nothing for he has nothing to lose. When one can live in the here and now, for the present moment; when one can at a moment's notice point his feet in any direction whatsoever, and follow, regardless of where it may lead, having no concern for self nor for tomorrow; that in- dividual, though a beggar, has a freedom and security far beyond our wildest dreams. Such a person, rogue though he may be, has gone beyond all good and bad and stands forth a man amongst men a spiritual giant for truly he has touched the hem of God. AL DENECKY Lethbridge Inaccurate headline power is reduced simply because you've ad- vanced into a higher tax bracket. In Canada, you don't suffer this loss. On Jan. 1 this year, because inflation averaged 6.6 per cent in 1973. the tax brackets were adjusted upward by 6.6 per cent, in effect denying the government a million inflation reward. On Jan. the brackets will move up by 10.1 per cent, saving the tax- payers million. In addition, Ottawa is reducing the real tax bite, by million in the current fiscal year and billion in 1975-76. These are big numbers, considering Canada's outlays in the 1975 fiscal year will be billion. Although the Canadians are making this move to spur demand, it will also increase aggregate supply. The tax on income, after all, is a disincentive to work, just as a tax on cigarettes is a disincentive to smoking. The only baffling part of the budget package Mr. Turner displayed last week is a 10 per cent surtax on corporate profits, exempting mining, manufacturing and processing, thus increasing revenues by million. The move cuts against the supply inducing effects of the personal tax cuts, perhaps washing away most of its beneficial effects. One of the most remarkable aspects of this Canadian approach is that the federal budget has not suffered. Mr. Turner a year ago pro- jected a deficit of million in the current year, but there's been so much real growth that revenue increases plus inflation are adding up to a million surplus. A billion deficit is projected for next year, but even that might be wiped out if the govern- ment cancelled its corporate surtax idea. And removed its impediments to trade and capital flows. We are frankly fascinated at what Mr. Trudeau and Mr. Turner have pulled off. Their record on inflation is nothing to brag about, but we suspect it has derived from the Canadian obsession with remaining in lockstep with the U.S. dollar, which means remaining in lockstep with Arthur Burns' monetary policies. At a time when President Ford is said to be looking for a fresh economic approach, the Canadian scene is worth examining. One sensible suggestion By Bruce Whitestone, syndicated commentator It is evident that a business contraction, of undetermined dimensions, is now underway. Despite the contrary proclamations of various government wordsmiths up until now, the economic scene is becoming more chilling with each passing day. Business activity has been considerably sustained for many months by massive inventory accumulation while consumer spending and capital outlays for plant and equipment in real terms have been declining. A fall in economic activity appears inevitable and imminent. Inasmuch as just about two- thirds of our exports to the U.S-. are raw materials, any inventory correction would have a serious impact on the Canadian economy. Massive business inventory accumulation on any such scale as the past year would have had to come to an end before long, even if consumer spending in real terms had been rising strongly. Now, with consumer spending contracting because of the decline in personal dis- posable income, and because inflation is eroding consumer demand, many businessmen and especially manufacturers are concerned over their large inventories. They have begun to realize rather suddenly that, in their wild rush to avert further price increases and to acquire "scarce" supplies, they actually helped to create the to run up prices and costs on themselves, and to price an increasing number of con- sumers out of their markets. The inventory problem became apparent last summer when the U.S. inven- tory figures were adjusted. The revisions were announced during the week of President Nixon's resignation, so insuf- ficient attention was paid to this change. The original figures in the U.S. for real (that is, constant dollar) inventory accumula- tion were revised up by 50 per cent for 1972, 90 per cent for 1973, and 200 per cent for the first quarter of 1974! This revision confirmed suspicions that stockpiling of goods in the U.S. economy had been proceeding at a much faster rate than the original figures suggested. Too, this new data drastically alters the business outlook for the worse as an inventory correction of some magnitude would add to the weakening of business con- ditions. What is likely to take place is a liquidation of a portion of excessive inventories at less than cost. Businessmen will be compelled to liquidate some of the excess inventory too, because they will be squeezed for real capital. In an inflationary environment a shortage of real capital becomes intense, so cor- porations become desperate for cash. Hence it is logical to expect that business will be stocking less inventory over the next few months; the critical questions concern the size of the pending inventory decline. Virtually all recessions are accompanied by some kind of drop in the rate of inventory accumulation and often by ac- tual inventory liquidation. It is possible, but unlikely, that much of the inventory li- quidation has already oc- curred. Much will depend on the actions of governments here. If they follow historical precedent and begin a period of massive reflation and increase the money supply, corporations will begin again to convert the resultant flood of paper money into anything tangible, including, of course, inventories. We will then have inventory accumulation proceeding on top of already top-heavy inventories. Obviously, this outline of events would lead to even more virulent inflation and a business "recovery" of sorts that could not be sustained for long. What would be more sensi- ble would be if governments did not attempt to reflate the economy now; then, a soundly based economy could emerge. I would like to call attention to a very infuriating inac- curacy in a newspaper headline "U.S. Indians stage protest in It is precisely this title which is unnecessarily alarmist and grossly inaccurate. The inference to be had is that members of the American In- dian Movement are U.S. In- dians, and this is the implica- tion to which I object. I frequently hear on the radio and see in the newspapers references to members of the American In- dian movement (AIM) as be- ing U.S. Indians, which is not necessarily so. The term "American Indian" is an old ethnologists' term for North American Indians as opposed to "Asian Indians" (natives of The North American Indians do not recognLe the national boundary of Canada and the United States, and many tribes in fact stretch across the border with reser- vations on both sides. To In- dians, the terms "American" and "Canadian" do not exist, as they are Indians first and foremost, native North Americans. The American In- dian Movement thus refers to North American Indians, and not to U.S. Indians only. If, on occasion, an Indian who is an American citizen comes to Canada to speak, he is doing so to help his own brothers and, perhaps, his own fellow tribesmen who have been ar- bitrarily and artificially divid- ed by the international border which is, after all, a mere fig- ment of the white man's im- agination. The Indians did not and do not have this phenomenon of a U.S. Canada border; the American Indian Movement is a move- ment of and for all native North American Indians. It is the word "American" here which seems to be confusing the Canadian public. Non native Canadians (white, black and other recent being overly sen- sitive and defensive these days about anything American (that is, U.S.) as opposed to Canadian, it is to be expected that they would be fast to take offense at the term American Indian Move- ment and leap to the conclu- sion (without bothering to un- derstand first) that this nomenclature must by its very name refer to U.S. In- dians. By running a totally inaccurate headline such as "U.S. Indians stage protest in Calgary" a newspaper contributes to hysteria. Readers may conclude that the Americans are up here trying to take the place over. It should be incumbent upon the media, to inform the public, thereby correcting inaccuracies and providing a better understanding of our world, instead of aiding and promoting mass hysteria and emotionalism GEORGE F. SANBORN JR. Toronto, Ontario Rare Earth concert 1 can honestly say that myself, as well as others, were less than enthused with the Rare Earth concert review (The Herald, Nov. and for that matter, the concert itself. The Rare Earth segment of the concert was good but com- paring it to the Tower of Power concert is a farce. The Tower of Power concert was far from being one of the best rock performances put on in Lethbridge. Speedway, out of Vancouver (Alias R.E.O. Speedwagon from some god-given city in the United States) was a very big disappointment. R.E.O. Speedwagon is considered by many just as good musically, if not better than Rare Earth. It strikes me rather funny that when our local promoter advertises a back-up band with a good deal of prestige in the music business it usually shows one out of three times. Nevertheless, someone else filled in for R.E.O. Speedway, who was not nearly as good. Were the ticket prices cheaper? Of course not. And another rip-off rock concert goes down in Lethbridge history. RON FLOOD Leth'jridge 504 7th St. S. Lethbridge, Alberta LETHBRIDGE HERALD CO LTD Proprietors and Publishers Second Class Mail Registiation No 0012 CLEO MOWERS, Editor and Publisher DON H. PILLING DONALD R DORAM Managing Editor General Manager ROY F MILES Advertising Manager DOUGLAS K WALKER Editorial Page Editor ROBERT M. FENTON Circulation Manager KENNETH E 8ARNETT Business Manager "THE HERALD SERVES THE SOUTH" ;