encourages competition and they assume that people generally act in their own self-interest. These ideas were first promoted by 18th- century Scottish philosopher and economist Adam Smith, who saw PAUSE AND RE individual self-interest as an "invisible hand" that guides individuals to contribute for the common good of everyone. You will read more What examples in da about Smith's views on economics in Chapter 3. have you seen that s In this view, the forces of supply and demand in the marketplace theory-that market benefit everybody? work to the benefit of the majority. When there is too much supply of examples contradict a product, the price drops and, eventually, so does the supply. When theory? In October demand is greater than supply, the price of the product rises, and more many as 9000 peop entrepreneurs enter the marketplace to profit, eventually causing up at a job fair in S supply to meet demand once again. Considered another way, each Newfoundland, loo individual buyer's desire to find the best quality product at the lowest work in Alberta. A envisioned worker price ensures that sellers compete among themselves to provide a between markets variety of products at the lowest prices. to markets of dem Furthermore, individual entrepreneurs who serve the common might the impact good through honesty and reliability may also serve their own self- oversupply on inc interest by winning more customers. Essentially, both the buyer's and What might the in society? seller's self-interest works to the benefit of the other. In such an economy, labour is like any other commodity. If there is an oversupply of labour in a particular area, wages will fall and the workers will look for employment in a sector of the economy where there is a labour shortage. In theory, acquiring a position in politics or economics is based purely on one's ability; the hardest working and brightest people achieve the most economic and political success. Employers will compete to hire these desirable people, and workers will compete to fill the jobs available. It is this drive of individuals working to secure their self-interest that creates economic growth and, in the long term, benefits everyone. In contrast to this perspective, Canadian-born economist John Kenneth Galbraith argued in the late 1950s that increases in wealth in the United States were concentrated more and more among people with high incomes, and people with low incomes were not earning more. As advisor to several US presidents, he encouraged efforts to reduce this gap-a "war on poverty" and large-scale publicly funded education programs. He also noted that very few industries fit the vision of perfect competition. In Britain, in 2007 a similar gap was seen: the "gap between the rich and poor in Britain has reached its highest level in more than 40 years. Over the past 15 years, more households have become poor, but fewer are very poor-'breadline poor'." (Source: David R. Francis, "Yawning Rich-Poor Gap Could Hobble Economy." The Christian Science Monitor, http://www.csmonitor.com/2007/0730/ p15s02-wmgn.html? page=2, July 30, 2007. rt 1 Issue: To what extent should ideology be the foundEconomic Freedom On a personal level, economic freedom is the freedom to buy what you want and to sell your labour, idea, or product to whomever you wish. Markets in which consumers and businesses have free choice to buy, sell, or trade, without government interference in those transactions, are called free markets. Economic freedom for free-market entrepreneurs would mean that there were no barriers to trade for products they might want to export, and that their customers would not have to pay taxes on their purchases. The Economic Freedom Index, compiled by the Wall Street Journal and the Heritage Foundation, a Washington, DC-based think tank, rates the economic freedom of 157 countries according to the following 10 factors: business freedom trade freedom . fiscal (tax) freedom . degree of government regulation monetary freedom investment freedom financial freedom property rights freedom from corruption labour freedom In 2008, Canada was ranked 10th on this list, below Hong Kong, Singapore, Australia, the United States, New Zealand, and the United Kingdom. The reason for its ranking is that Canada intervenes in its markets rather than leaving them free from government regulation. eynes After the Great Depression of the 1930s, Canada implemented policies designed to create a "social safety net" for Canadians; the * Unemployment Insurance Act (1940), the Canada Pension Plan (1966), the Medical Care Act (1966), and other acts transformed Canada into more of a welfare state. A welfare state is one in which the economy is capitalist, but the government uses policies that directly or indirectly modify the market forces in order to ensure economic stability and a basic standard of living for its citizens. Self-Interest and Competition Two concepts of individualism closely related to the principle of economic freedom are self-interest and competition. Supporters of individualism see economic freedom as leading to the most efficient and beneficial economy for the greatest number of people, because itPrinciples of Collectivism The principles of collectivism are the foundation of ideologies such as is "1 communism and socialism. While the principles of individualism sing formed the basis of the classical liberal ideology that originally guided will modern democracies, over time most liberal democracies have have evolved and incorporated aspects of collectivism into their political, eco and social systems. More information about these changes will be presented in Part 2 of this text. The principles of collectivism you will explore are Co economic equality co-operation All public property pro collective interest ind collective responsibility ha adherence to collective norms the dsiler bas chouod degoudi booz cor Economic Equality pro While the principle of economic equality is common to all collectivist ideologies, its specific meaning varies from one ideology to another. ex Economic equality can mean any of the following, depending on the op person or the ideology: vo People with larger incomes should pay more taxes. ec . All people should earn equal wages for work of similar value. There should be a guaranteed annual income (GAI). so All people should share in the wealth of the country or the world. People should own the means of production (factories or companies that produce goods) collectively. Everything should be free. There should be no private property. Many countries have tried to reform their economic systems to introduce more economic equality. In Canada, for example, the policy of progressive taxation could be seen as an attempt to redistribute wealth. Progressive taxation means that people who earn more money are taxed at a higher rate. Nonetheless, some thinkers have proposed that amounts of money are not at the heart of economic equality. Mahatma Gandhi was the leader of India's independence movement from Britain in the early 20th century. He thought that economic equality depended on individual need and circumstances: Economic equality of my conception does not mean that everyone will literally have the same amount. It simply means that everybody should have enough for his or her needs... The real meaning of economic equality logies of Individualism and Collectivismis "To each according to his need." That is the definition of Marx. If a single man demands as much as a man with wife and four children, that will be a violation of economic equality... PAUSE AND -Mahatma Gandhi, March 31, 1946, Do you think w quoted in "Economic Equality." Mkghandi.org. economic equa Would we have http://www.mkgandhi.org/momgandhi/chap55.htm society, or wou upon individu Co-operation All collectivist ideologies emphasize co-operation, a principle you are probably already very familiar with. Co-operation can be beneficial to individuals and groups precisely because individuals are unique and have different ideas about how to do things. Co-operation is the means through which members of a group or a collective achieve their common goals. It may involve designating roles, following certain protocols for speaking, or following guidelines for decision making. One example of collective co-operation is a co-operative. Daycare centres, health-care centres, stores, and credit unions are a few examples of enterprises that can be owned and managed co- operatively. Some of the guiding principles of co-operatives include voluntary and open membership, democratic control by members, and economic participation by members. The principle of co-operation can also influence how members of a society govern themselves. In a recent interview, the Reverend Kathryn Gorman-Lovelady, a moderator at Wolfe Island Aboriginal Interfaith Church, a National Elder on the Canadian Metis Council, a Native Inmate Liaison Officer at the Central North Correctional Centre (Penetanguishene-Lafontaine, Ontario) and an Anishinabek shaman, had this to say about decision making and the traditions surrounding speaking in Aboriginal cultures: Aboriginal peoples in North America have traditionally approached decisions from a collective base. Prior to contact with Europeans, we evolved an egalitarian "circle" ideology for processing both community and individual decisions. The harshness of daily living, especially in northern climates, necessitated a group of people to hunt and gather, as individuals could not adequately feed a family by themselves. It was too dangerous to hunt by oneself. Everything acquired was collectively rendered into food for present and future use. While heavy emphasis is placed on a person being responsible for their actions (or lack thereof) it was understood that one had easy access to Elders for counsel and life wisdom. The erosion of the collective process (post-contact) has driven many Elders and Aboriginal community leaders to fight for self-government. This is heralded as a return to decision-making as a democratic collective. In this way, every member of the community, young or old, male or female has a t should ideology be the fourintings, h of es ngs, bos elsubivahini alson nommos aga To1 elopodong right to speak on issues. This may seem to be unwieldy and slow, but ensures that everyone's voice and perspective is included in any decision. Our spiritual practices reflect the beauty of egalitarian collective process- we view all life as equal and sacred in the web of life. It is a practice we continue today. -Reverend Kathryn Gorman-Lovelady, interview with author, January 7, 2008 Innod off Je asoff O nosicil stemin Public Property Public property is anything-land, buildings, vehicles-not privately owned by individuals. Generally speaking, public property is owned by the state or the community, and managed according to the best interests of the community. Different ideologies support the idea of public property to varying degrees. In a Communist state, all industries could be public property- controlled by the state for the common good of the collective. According to Karl Marx's The Communist Manifesto (1848), "the theory of the Communists may be summed up in the single sentence: Abolition of private property." Marx and thinkers like him argued that only workers should profit from their own labour, not employers or the owners of the companies. It has been argued that not only is this arrangement fairer for the workers, but it also provides a source of motivation in the absence of financial rewards: because every worker has a stake in the enterprise, they will all have a greater interest in its success. The concept of public property is also present to a lesser extent in liberal democracies such as Canada. Parks, schools, roads, libraries, dividualism and CollectivismCrown land, and Crown corporations (such as Via Rail or the CBC) are all examples of property that the government manages in the interest of all of society. These properties are maintained with public money raised through taxation. What other forms of public property exist in Canada? How do they represent the values of collectivism? How would Canadian society be different if all private property were abolished? How would your life be different? Collective Interest Collective interest refers to the set of interests that members of a group have in common. More specifically, the principle of collective interest states that while individual members may have individual interests, these interests are often better addressed by making them a common set of interests that the group can address together. Collective interest is the basis for the organized labour movement, which began during the Industrial Revolution. As members of organized trade unions, workers were able to fight successfully for better working conditions and higher rates of pay-successes that individuals could not have realized alone. Collective interest is also the foundation for social movements and lobby groups, such as human rights groups, professional groups, or international organizations such as the Organisation internationale de la Francophonie (OIF) or the Assembly of First Nations (AFN). The mission statement of the OIF is The OIF, conscious of the connection created among its members by sharing the French language and universal values, works toward the achievement of peace, cooperation, solidarity and sustainable development. The institutions of the OIF work towards the realization of these objectives. -Source: Organisation internationale de la Francophonie. http://www.francophonie.org/oif/index.cfm Article 1 of the AFN's Charter states, in part, By virtue of their rich heritage, historical experience, and contemporary circumstances, First Nations possess common interests and aspirations to exercise their political will in common and to develop a collective struggle or cause based upon the Indian values of trust, confidence, and toleration. -Source: Charter of the Assembly of First Nations. http://www.afn.ca/article.asp?id=57 All of these groups represent people with common interests and goals who come together to press for change and reform. y be the foundCollective Responsibility Collective responsibility means holding the whole group responsible for the actions of individuals (or individual groups) within the group. Collective responsibility asserts that there is no individual action for which the group cannot in some way be held accountable. In her book Ideologies of Caring: Rethinking Community and Collectivism, Gillian Dalley describes collective responsibility as the cornerstone of a caring society: At its broadest level, collectivism is about societal responsibility for all members of that society, a moral responsibility that is translated into a practical responsibility. The government is the steward of that responsibility. At a narrower level, responsibility may be held by the local community-the municipality, the neighbourhood, the commune, or by an interest or a functional group such as trade unions, women's groups, or professional associations. Provision of care and support for those who are in any way dependent is clearly part of that responsibility. -Source: Adapted from Gillian Dalley, Ideologies of Caring: Rethinking Community and Collectivism, 2nd edition. (London: Macmillan, 1996), pp. 52-53. Acknowledgment of collective responsibility is often made in response to deep-rooted social problems that cannot be addressed by targeting AND NO THANKS BOOZING DON'T FOR LIFE WMADD MIX FOR LIFE MADD TM MOTHERS AGAINS MADDM RS AGAINST DRUNK DRIV am aindividuals or a single group. For example, campaigns against underage drinking often state that the cure for this problem must be a collective responsibility. This is how one US government committee examining underage drinking in the United States framed its report, Reducing Underage Drinking: A Collective Responsibility: PAUSE A The committee reached the fundamental conclusion that underage drinking cannot be successfully addressed by focusing on youth alone. Consider how Youth drink within the context of a society in which alcohol use is developed: a drinking, vol normative behavior and images about alcohol are pervasive. They usually How are the obtain alcohol-either directly or indirectly-from adults. Efforts to reduce sacrificed b underage drinking, therefore, need to focus on adults and must engage the certain age society at large. -Source: Committee on Developing a Strategy to Reduce and Prevent Underage Drinking, Reducing Underage Drinking: A Collective Responsibility, Richard J. Bonnie and Mary Ellen O'Connell (eds.). The National Academies Press, www.nap.edu, 2004. On the other hand, the idea of collective responsibility does not always guarantee a caring society. Sometimes the idea of collective responsibility is used in totalitarian states such as North Korea, where a strong central government has complete control over most aspects of citizens' lives and does not allow political opposition. In such a society, if one member of a family criticizes the government or its leaders, the whole family might be punished to send a message that the behaviour is not tolerated. Authoritarian governments in particular (see Chapter 11) often claim to be acting on behalf of the "good of all" even when their actions are punitive. Adherence to Collective Norms Groups usually impose norms, or standards, on their members as a condition of membership in the group. These norms can relate to conduct, values, or appearance. While they are voluntary, the group members generally see these standards as binding, which makes adherence to collective norms important. Sororities and fraternities, political parties, faith groups, trade unions, and professional groups all impose certain standards of conduct on their members. Living up to these standards may be considered a daily responsibility. Censorship- deliberately restricting information the public will see-is another example of the imposition of a collective norm. Many media censor themselves informally; however, some governments impose censorship on media.A negative view of collective norms can be found in George Orwell's Nineteen Eighty-Four. The novel describes how rigidly enforced collective norms can extend so far as to tell people how to think: heltered A Party member is expected to have no private emotions and no respites from enthusiasm. He is supposed to live in a continuous frenzy of hatred of foreign enemies and internal traitors, triumph over victories, and self- abasement before the power and wisdom of the Party... The first and simplest stage in the discipline, which can be taught even to young children, is called, in Newspeak, crimestop. Crimestop means the faculty of stopping short, as though by instinct, at the threshold of any dangerous thought. It includes the power of not grasping analogies, of failing to perceive logical errors, of misunderstanding the simplest arguments if they are inimical to Ingsoc, and of being bored or repelled by any train of thought which is capable of leading in a heretical direction. Crimestop, in short, means protective stupidity. -Source: Nineteen Eighty-Four by George Orwell (Copyright @ George Orwell, 1949). Reprinted by permission of Bill Hamilton as the Literary Executor of the Estate of the Late Sonia Brownell Orwell and Secker & Warburg Lid. While Orwell believed in democratic socialism, he saw an extreme version of collectivism being created in the Soviet Union by its leader at the time, Joseph Stalin. You will read more about this period of history in Part 2. lividualism, Ido