Lethbridge Herald, The (Newspaper) - January 9, 1973, Lethbridge, Alberta
Tueiday, ,'onuory 9, 1973 THE LETHBRIDGE HERALD Fed era subsidies up housing costs Bv Bruce CaoadiEa syndicated commeniator Tne house price inflation of the past few years may just have served one useful purpose. It may have made those most closely concerned with the h o u s ing market more willing than before to examine the ways in which they advance the cause of better housing for all the population. Many have outlined the short- comings in our housing polices which have come in for fram; but not very constructive crit- icism. The defecis died include the government's failure to deal with the sbonage of building mm mm land and the rehabilitation oi urban core areas. The most important criticism that c o u 1 ti to meet parliament anc had no assur- ance that it would even survive the month of January. If it fails a; an early rate. tho new parliamentary secre- taries. whose work-willingnes? can be taken for granted will have liitle chance to earn tholr per annum salaries. Whst will then happen" II Mr. Sianiield is gtiided by Mr. Tru- deau's precedent and exercises crmriarable rt-straint. we c.in forward to a new Conserva- tive flock of parliamentary sec- rciaries: all equally willing to take Questions as notices or to read prenared answers cntrust- ect to them by apprehensive ministers expecting to be un- absent. ihcse possibiliiics. S'.lrvly a case for more restraint involving n siel.-.y pf 3 mcnth or 5.1 in ilso TinbVc.ition of the se> r-.-.-ri.-l Honors List. Tt cannot !w forgotten that there was r.-.uch criticism a ve.ir or so ;ico Ihe numlvr of of- fices of emohnv.e-n; Iving cre- eled Government luMrganiraiion Bill. The wis- dom uf half-fillinc tliem seems .it :i lime when Ihe c-.l .inlncss of tlie voters who pay iis bills. artificially increased Ihe price of houses as well as Policies have unduly and artificially enhanced Ihe at- tractions of a house as an in- vestment. The latier fact has become particularly valid in our inflationary era when the ability to buy owner-occupied houses no'.v free of ranital gains liability, on depreciating borrowed money, plays right into the hands of the more af- fluent. They can afford to buy the larger houses, borrow mort- gage money and. thereby, ex- perience ihe largest dollar gams. An economist can make a strong case against the present incentives: if demand is con- tinually subsidized, theoretical- ly the total stock of housing will rise, but if more and more of those able io afford it. duly en- couraged by the various incen- tives, consume more and more housing resources, house prices will rise sharply and the p.or sections of the nation will be worse off. In other words, the present system of incentives help those best able io afford a house cf their own and worsens the re- lative oosition of the poor sec- dor, of society. Tnere is no need io over- throw home ownershiD as a so- cial objective. However, sodery should examine with an open mind the price it is paying to achieve this objective. Our sub- sidies must be called in ques- tion: the artificially stimulated suDply of mortgage financutg. the federal loans ar.d grams to ;Se housing industry, direct Iv.n? to builders, the ether rn y r i s d assistance programs and, now, the ability of tease owners to make tax free profits on borrowed money for pur- chases of their houses. It is be- coming increasingly obvious that some of these financial subsidies could be better de- ployed in other ways. The goal of the federal gov- ernment, "at least hous- ing starts every year until appears to be crass po- litical expediency as it im- posss. a quantitative goal in place of a qualitative one. What are the reeds that the govern- ment is attempting to satisfy? Do we need 200.000 housing starts even" year when the population of Canada is grow- ing 400.000 per year, or one new house for every increase of two persons. Do we want 200.000 units costing more than each when the greatest need is for housing for those earning less than S3.000 annually? In Calgary and in other cities loo. there is a residential hous- ing vacancy rate in excess of i'2 per cent. It seems that fed- eral aid here is just as wasted as was the case with the un- employment insurance pro- A !_ Der cent rate caused in part by a mis- application of federal funds is a disgraceful waste of taxpay- ers' resources. Politicians who are by no means noicd for being conser- vative (such as the laie Rob- ert Kennedy have been pro- that the horrible mess of urban housing be handed over to private business. Only in this way could there be created er.lrepreneurshio to satisfy th? reeds and. war's of 'h? 'urban pl-or. The only par! of t'.e Job> Corps in the United Stales that is not hopelessly mired in con- World butcher By Car] T. Rowaa. V.5. syadicaied commentator BUENOS AIRES President NLson "as Brazil goes, Eii goes ihe res: o: La: in America.1' Thai makes seise to some, cousidenng the faci that Brazil has million peo- ple and vast untapped re- Bu; 1 raiher itiik tr.e mos: in-Latin cour.in' 01' them all, Arrentins. Mil" give the uia- maie srioia] as to wheuier oe- nocracy and personal Uberiy can ever carry Lhe day in Latin America. An Argentine will you quickly tiia; hi5 country is "not held bad; by a large popula- tion of impoverished Indians'1 in fact, Argenitna is a "middle class" country whose S3.000 a year per capita income is exceeded in Latia America only by Venezuela. Yet Argentina is a mess, viewed from any one of a dozen viewpoints. Since 1955 ii has had nine different ail b-jt three of them gun paciring police- men at the entrance oi our staid old Plaza Hotel here are a pirn reminder that terrorism and violent demonstrations have wracked .Argentine cities for almost four years. This country which used ;o be butcher to the world, exporting more meat any other na- tion, now faces such a serious trace deficit that her intema- r.orisl reserves have d-Aisd-led to relatively nothing. With bicierLis men owning 15 per ana operai- L-; per reni oi incus- rrics isuch as sieei and the air- lir.es long ago Jos; faith in the economy and began to send their capital to E'jrope and ei-e'.vnere. Vo-j hear a hundred cxphna- tiors here a? to why an Argen- tina that 4-0 years ago was bracketed with Canada a r. d Australia as econcmic ciana- lo-be has never its p-omiso. But the eralanstion you near mos; is that "Peron arc Peron- ism has been our curse, o'ur crippling disease." They ran J'jan Peron. the- fabled" old dictator and dema- gogue, out of Argentina 17 years ago. Bu; found that Ar- gentina was h deep troupe with Peron and in a hrpeless pclitic.-.l moras? without hirr. Tne generals finally conclud- ed that even they could not run .Argentina with the Peromsis. the largest single political force. banner! from a ro'e in gD-iem- ing. S-o they have scheduled elections for next March 15. and Peron has been permit- ted to return here to diiva the participation oi his party i though he has been ?h-ewdly barred as the presidential can- didate and has since left the. Th? Argentines seem acutely aware thai if they fail to put it together politically. Argentina could go on for another genera- tion as Laur. .America's most pathetic example oi der.iocra- cv. fusion is largely run by Litton ImemationaJ, I.T. and T., and Wfcslinghouse Electric. Now General Electric has developed plan for developing cities within reasonable commuLiLg distance of the metropolitan areas. Another large company, U S. Gypsum, has been evolv- ing approaches to bousing for the poor which, by using nevr materials a.id meth- convert slum ir.io dec-em housing at fairly lo'.v and v-itnom ir-s ihe poor in the name of s.urri clearance. Many of ihe changes pro- posed to help the housing in cmtry appear to be just measures that grant fur- ther io the "iih r.0 clearly defined purpose v.hic'i lead to higher and high- er ho'dse prices. Basic changes in prionues and attitudes ID >o E subjeci as hou5e5 carmot occur overnight First, our rr.us; be re-determined. Tr.e overall effects cf the m-.a- siireo should be analysed to see if they accomplish what is in- or if they are procuctive. or if they merely push up ho'jse prices. Sorr.e have assem- bling undeveloped 1 E n c 2 "'ar.c According to ibis a reserve is cre- e.trc v-'hich controls private ponic-ns o: this a plan and the land developed in coriforniiri- viih ir.? overai: zoraiig plan. Tr.ere are :r. :cea The ;aT'd in hsve :o b5 u.-- c er no: have to be obtained frorr. This is not the cise aro-rxi most Canaciisi crJef Therefore. Lhe laud r.ave to be acquired at price and this would in- volve huge1 or i: vrouid have :o be esproprlaied with i'r.erefore. i: is payir.g special t'leriiicG io some re- medial proposals. High oa the list should neas'jres to en- courage lenders to d e v o i e rr. ore of their re- sources TO home b'jilcirg a> pp- pased o buying io en- courage more intense e use of the The arjd o: ibctfe soskinE acccrr.- modariori shr-uld more than ;ie goal cf borne b-jvisg as such. In effect, be- ca'use houses cosily, hous- ing ni'us: be used more esterj- sively. As a. corollary, the puS lir have io higher of n'oriirirp than ir, the pas: In order :o courice the corruzercis.1 pros- Thi? be a price "n'ortr: if r.eeced arid suitable bulling starts ard if price inf.s- checked. More should be done by tr-e auihcrities to iron out ihe pesss anc trouciis Ln the of mortcnge In '.he years has ro- a so ei. ery recession rr.ort1 r.i o ri e y rvjred that's You mean, vc hwc trcn on age cf onx.'cfv to an cgc of fear, end dun t n no: ir. r.iair.- i.ibinj: h-ts been iV-e tv.KX-.l s I; o d c y NYirkmsns.'-p. of [he loruior ;o ;he prowl Iv n one fo Ihe b'.r.lrVr .1 dVjlr.uiirij: i.i the r-rooony. There arc .-.li f'jvrls of so- oonrhvtod fore- Alvvo all. mis; oo sor.ic ro'.lv.nk'.r.i: o: llv .-olimons offered by of the bo'.isini: industry M> led to pros- oomrmili1 Ihc "r.l- 1 pn.v .M .1 lYI'.er government involvement and more priv.ite i Pearson a personal reminiscence By Clint Buehler No ere is a'rre to estimate he'd L-. reserve should be. Tr.e cnsts of house ovoersr-iz- vrould be rerljcvc orJy Lf soverrj- oz-izcori rrjeri c- the land beV.r value. If trns v allies n Eer.eraJ iro-jld and r'n.i? prorrsm TO eiA. Ir. ar.r mi5; rer- ths: i: is prlirjsrily the cos: br.z ECO c-s; an e: S4.5C'? to ?er- 70 fro: lo: in the To EDMONTON Tie news oi the pass- ing of as great a Canadian as Pear- son is ms with sadness and regret by ell. To those o: us with special memories it is also a lime of reflection cm our brief mo- ment of privilege our humble path crossed the stellar trail he blazed in more than the routine reporter-politician en- cosimer. If it seems presiimp-ruous I should consider my special recoDection of liis gres: man norihy o: publicciion. me that n is only because my cherished me- mory of him so aptly reflects his h> manity that I ofrer IL here. In 1K4. I WES a reporter and e-dr.onal "Titer aijd colonuiisl for bridge Herald. Mr. Pearson was prime miri- of CanEda. I was strugsling to re- cover my confidence and seh'-regarrj a; a v.Titer and journalist, after a major set- back. Mr. Pesrson iacizig a much more difficuli Already saddied mifc the buraens of transformirig from statesman w political leader and attempt- ing to govern -.vithout z majority of seals in "Lbe House of C-Qinzao.is. he was in the midst of trying to se'J his dream o: a dis- tinr-tri'e Canadian flag to a people rallying It -as iz the midst of bis trials and over tre loriEi-rjrimiE de- bate tha: Mr. Pearson cane to Leibridge. I fei: a.- immediate r-mpatrr. for trr? man. It seemed in me he ny. sufficiently armored for the of ior the soar? of his sJdmtislie? were evident in his lines, his rapidly grey- hair, his evident farigje. Here tras ilie man done more than other Canadian to give Canada a highly respect- ed position IL ir.terr.atiDQal affairs, his COD- tribijrjons in the fierce opposi- rion most o: it ill-fLTjnoeo and perceived to his dreams for a reborn natlr-ral ideairy and resolve. Sn i-pressed I -si-j ;he nan. and the injusrice c: public rrj. that I a col- umn sucgesting tba: not let our opposi- tion to some of his legislaiion azid policies rotaLy Debate the many outstarj-dins CDZJ- rrib'jtiois he had nace to Canada, and as a Canadian to the cause of vorld peace. I nc-ted some of these ccr.tributioris: His in the development of NATO and '.he U B i i e d Nations; his development of Canada's image as s peace seeking and peace keeping nation ar Suez, in Cypnii and elsewhere: aijd the recognidoi] of his efforts by the mismanonEL! community with ins selection ior t_ne Nobel Peacs Prize, Regardless of bow his effort! as a politician, I ie: us not forget the oustanding positive cosLribudons baa made as a statesman and diplomst, end the positive effec: has had OD Can- ada's imase. h lei? Lnan that thi Seller came from tne prune of- hce. It ivas a persons! n'tt from Mr, Pearson fnr ecicouragft- ment my coiunia had gi'.'en him. for tha it gave him to tnow that someone tinderriOK burdens and trations of his v If my coltiETi md that 'or hue. you caa imagiBe what ms letter ad for me. Had someone told me that Prime Minister Pear- son had read and appreciated- my column., it -.roiilG have been a greai ihriU to me. To receive a persona] le-usr from t-his great man vbo I admLrej so rr.jch atan to receiving my Vobel pr.ze. Lrokiag back. nn >'r. PesrsoD'i years as prime I see that even I imderratec his I aia increasiLgiy posiuve hisiory rnl] sbcrsp that, despite his failure :o ubiain 5 ms- >3riiy for >L5 parry nom-jiziriaaing his personal a? s political lead- P-. Lssier ppsrsm T, 55 one re" Canada's most too reaciJy forge; trie r-ni-aure o! fed- erai governnent. the erjr-snched control oi the elite in both parties, the stulti- fying self -col the srcial blindness of the pre-Pearfon era. Mr. Pearson lee Canada out of that rt- pressive of into B new era of progressive bright and and leader- ship and a strojg and national idm- tity. He laid Lie io'jnda'jQi] for Canada'i new cirer'Jons based on his concern for the well-bebE and prtorrurJry o: ths in- tiiviauai citizen. To me. thai is orJy to be of a busy, burdened mar. irho -.ro'jJd tcke time to his to s small tirsTL Le: us never forget his contributions to his country and his v.-c-rid. The name of the gamp Eva Brewster COOTS Eery, meery. rainy, mo. catch the parent by ihe ;oe At this time of year, more than a; any other, this seems to be the game advertisers. been ulayir_g with us. We may have man- aged to resist the remptations flashed on our television screens at our gullible chil- dren. We may have been able to shoot do-vn and disprove some of those far-fetch- ed claims on the power of arythirig from chewing ram to expensive cars enhancing our youngsters' sex appeal. We may even have fell that common sense and the val- ues our parent? taught us had finally won the day. But no luck. Advertisers have found a way to ge: di- rectly at young people, bypassing tiieir ejc- ers. What is ohiectionable to me their sophisticated kind of adverusing forces me to prove wrong theories I have taught my children anc believed in my- For instance that the friendly bark, as solid as the rock ir Gibraliar. has al- ways beer, there to help. and pro- tect our interests or that the money-lend- ar. despised for centuries, is actually a re- sponsible businessman giw-rg oul loans only ior worthwhile projects and solid ventures. If these approved TV cur so- ciety earnestly entreat our young to bor- row and jmgle thai "they believe in peo- rjle." what do I say ;o my children? "Dc-r.'t fail ior such sweet :alk: they are gobs to nan; a millstone round your Or. "banks and loan are not inter- ested in you except the profit you bring them? Pney won'; lose but you Vet. the RC.vertise-s are s.i CMr.vincmg. the> can persuade ever, th? p.vres: of kms that I .t.m merely trying to curtail their chances in .lie "Wliicli bar.k '.U'l.lJ. me co to m a loan to buy s one young nan asked me "My vvli'ar? lias noi come yv-i as soor. .is I pet I can pay off the first instalment. Ttiis car is the bargain o! K lifetime. 1 just can't let it pass me Another shewed nie a newspaper cutting. "Pid you I can supp.> you money for Christ-lias! Consti'iif-me all your to one instr-.lmen; PLUS supply yoj with a late mixiel or good second car for .1? li'lle a? 540 ivr month ".hist im- .iji-lne." this boy s..i.i. "I can buy that c.-.r snj h.-.ie enoiich u buy tho lent, caiv.p- ir.i: and iislung t.ick'c I'll need summer." of these yinmj r.ier, ii.iv'f boon .I'.-'.e to n rtvenlly lv.i! that ivl Ihrin iVoin .v.c ili.il s.iy quite clearly on their television Issl night TV, inddailally, was bouglit on 5 finance the first paymezt not being due 'til! March ro our bzak for a We car. ztake your dreazos come true, you vant tint house, a new car, a boa: or long de- sired vacctio- ?re can make it happen." The othsr had listened to the loan com- pany tha; "understands your.g sad can "reijce a 1; To all this, some of o'jr respect- ed o: iearrzr.g have jump- ec onto ihe bErjovi-ason o; adverrising. "Ea- rol for this or that ourse. and set us. We can arrange for easy fiaancing o: long-term Eovemzoer.; loans to pay your college fees and ive a-rarjgc :or jnb plare- or. completion of trairunc early in could be a iaugii ii U sn >ad for i a io: of stu-dsnts tiat lir.e s year or more ago. ivere told. through Lheir course, ihfy rr-igh; i: hard to ge: em- ur.lesf happered to be In- dians whose kziO'A ledge or s'-r.l! sorely reeded o" a Ti-ork- ed their way Lhrougr. ;o grafua'Jon with in tne-r erjoseii field, r.cner by nothL-g but Vo-ur.g peop'e v.bo fell "easy Ircr." for p-urr-ofe are berzinzr.g paia a i-i-riceanoe. u n.r c.T.ip.vjna Tn.isc ;o fi-d er- :v: help or. the afford thej- w; theT.- tiU-e lob or ir. 5 --.iv-or.. c.X- ;hs; o: the p.-vvtv't ..-.1 rlir: cratrful for stti.ifn For mat- ;or. i.hcrc art- your.f peo- ple wlki r.cw .'.n.i a por.-.i-jia Kxin in ar. vshr.t I ohw: 10 i5 ini.isro of roal COT- eorr. for an ;he of v i" p.vd help- v io "'o r.rd oursolvos hoislod uri'.oss Kinks lo.-.-i L'otntv.r. i> o 1 oh.inov 1'iflf.iil o: rtvks.