attorney general guardian of the public interest predetermined not responsible for his actions under...

7/30/2019 Attorney General Guardian of the Public Interest Predetermined Not Responsible for His Actions Under Section 8

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Attorney General Guardian of the Public Interest predetermined not responsible for his actions underSection 8

www.Docket13.comDocket 13 ERR TAGS 11 22 12

Explanation Roles Responsibilities the Attorney General Subpoena

http://www.attorneygeneral.jus.gov.on.ca/english/about/ag/agrole.asp

The Attorney General has a unique role to play as a Minister.

One part of the Attorney General's role is that of a Cabinet Minister. In this capacity the Minister isresponsible for representing the interests and perspectives of the Ministry at Cabinet, whilesimultaneously representing the interests and perspectives of Cabinet and consequently theGovernment to the Ministry and the Ministry's communities of interest.

The Attorney General is the chief law officer of the Executive Council. The responsibilities stemmingfrom this role are unlike those of any other Cabinet member.

The role has been referred to as "judicial-like" and as the "guardian of the public interest".

Much has been written on the subject of ministerial responsibilities and the unique role of the AttorneyGeneral.

There are various components of the Attorney General's role. The Attorney General has uniqueresponsibilities to the Crown, the courts, the Legislature and the executive branch of government.While there are different emphases and nuances attached to these there is a general theme throughoutall the various aspects of the Attorney General's responsibilities that the office has a constitutional and

traditional responsibility beyond that of a political minister.

The statutory responsibilities of the office are found in section 5 of theMinistry of the AttorneyGeneral Act. Section 5 states:The Attorney General,(a) is the Law Officer of the Executive Council;(b) shall see that the administration of public affairs is in accordance with the law;(c) shall superintend all matters connected with the administration of justice in Ontario;(d) shall perform the duties and have the powers that belong to the Attorney General and SolicitorGeneral of England by law and usage, so far as those powers and duties are applicable to Ontario, andalso shall perform the duties and powers that, until the Constitution Act, 1867came into effect,belonged to the offices of the Attorney General and Solicitor General in the provinces of Canada andUpper Canada and which, under the provisions of that Act, are within the scope of the powers of theLegislature;

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(e) shall advise the Government upon all matters of law connected with legislative enactments andupon all matters of law referred to him or her by the Government;(f) shall advise the Government upon all matters of a legislative nature and superintend all Governmentmeasures of a legislative nature;(g) shall advise the heads of ministries and agencies of Government upon all matters of law connectedwith such ministries and agencies;

(h) shall conduct and regulate all litigation for and against the Crown or any ministry or agency ofgovernment in respect of any subject within the authority or jurisdiction of the Legislature;(i) shall superintend all matters connected with judicial offices;(j) shall perform such other functions as are assigned to him or her by the Legislature or by theLieutenant Governor in Council. "

What follows is an overview of the various components of the Attorney General's roles andresponsibilities, primarily as outlined in the Act.

Chief Law Officer of the Executive Council (s. 5(a))

The role of chief law officer might be referred to as the Attorney General's overall responsibility as theindependent legal advisor to the Cabinet - and some have even suggested that the role possibly extends

to the Legislature as well.

The importance of the independence of the role is fundamental

to the positionand well established in common law, statutes and tradition.

As chief law officer, the Attorney General has a

special responsibility

to be the guardian ofthat most elusive concept- the rule of law.

The rule of law is a well established legal principle,but

hard to easily define.It is the rule of law

that protects individuals, and society as a whole,from arbitrary measures and safeguards personal liberties.

The Attorney General hasa special role to play

in advising Cabinet

to ensurethe rule of law is maintained

and

that Cabinet actions are legally and constitutionally valid.

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In providing such advice it is important to keep in mind the distinction between the Attorney General'spolicy advice and preference and the legal advice being presented to Cabinet. The Attorney General'slegal advice or constitutional advice should not be lightly disregarded. The Attorney General's policyadvice has the same weight as that of other ministers.

Criminal prosecutions (s.5 (d))

One of the most publicly scrutinized aspects of the Attorney General's role is the responsibility forcriminal prosecutions encompassed in section 5 (d) and s. 92 of the Constitution Act, 1867. Section 92gives the provinces authority to legislate in matters related to the administration of criminal justice andthereby gives the provincial Attorney General authority to prosecute offences under the Criminal Code.

The Attorney General does not, however, direct or cause charges to be laid. While the AttorneyGeneral and the Attorney General's agents may provide legal advice to the police,

the ultimate decisionwhether or not to lay charges is for the police.

Once the charge is laidthe decision

as to whether the prosecution should proceed,and in what manner,

is

for the Attorney General and the Crown Attorney.

It is now an accepted and important constitutional principle that the Attorney General must carry outthe Minister's criminal prosecution responsibilities

independent of Cabinet and of any partisan political pressures.

The Attorney General's responsibility for individual criminal prosecutions must be undertaken - andseen to be undertaken - on strictly objective and legal criteria, free of any political considerations.Whether to initiate or stay a criminal proceeding is not an issue of government policy. This

responsibility has been characterized as a matter of the Attorney General acting as the Queen's

Attorney - not as a Minister of the government of the day.

This is not to suggest that decisions regarding criminal prosecutions are made in a complete vacuum. Awide range of policy considerations may be weighed in executing this responsibility, and the AttorneyGeneral may choose to consult the Cabinet on some of these considerations. However any decisionsrelating to the conduct of individual prosecutions must be the Attorney General's alone andindependent of the traditional Cabinet decision making process. In practice, in the vast majority of

cases, these decisions are made by the Attorney General's agents, the Crown Attorneys.

An important part of the Crown's - and thus the Attorney General's -responsibility

in conducting criminal prosecutionsis

associated with the responsibility to represent the public interest- which includes not only

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the community as a wholeand

the victim,but

also the accused.The Crown has a distinct responsibility to the court to present all the credible evidence available.

The responsibility is to present the case fairly- not necessarily to convict. This is a fundamental precept of criminal law, even if it is not a

particularly well-understood concept among the general public.One of the Attorney General's responsibilities in fostering public respect for the rule of law,

is

to assist the public in understanding

the nature and limits of the prosecutorial function.

Ultimatelythe Attorney General

is accountable to the people of the province,

through the Legislature,for decisions relating to criminal prosecutions. Such accountability can only occur, of course, once the

prosecution is completed or when a final decision has been made not to prosecute.The sub judicae rule bars any comment on a matter before the courts that is likely to influence the

matter.The sub judicae rule strictly prohibits the Attorney General from commenting on prosecutions that are

before the courts.Given the stature of the Attorney General's position, any public comment coming from the office

would be seen as an attempt to influence the case.

Although the Attorney general can become involved in decision-making in relation to individualcriminal cases, such a practice would leave the Minister vulnerable to accusations of political

interference. Accordingly, it is traditional to leave the day-to-day decision-making in the hands of theAttorney General's agents, the Crown Attorneys,

except in cases of exceptional importance where the public would expect the Attorney General to bebriefed.

Legislative Responsibilities (s. 5(e) and (f))

The Attorney General has broad responsibilities associated with Government legislation. Theseresponsibilities have been described as twofold. One is to oversee that all legislative enactments are inaccordance with principles of natural justice and civil rights (see also s. 5(b) above). This is obviouslyan important and broad area of responsibility. The second aspect of this responsibility is to advise onthe constitutionality and legality of legislation.

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The Attorney General's legislative responsibilities are played out in a variety roles. The Office ofLegislative Counsel reports to the Attorney General. Legislative Counsel plays a key role in ensuringthe legal integrity of Government legislation. Although the Legislative Counsel's reporting relationshipto the Attorney General does allow the Attorney General to provide guidance and set standards,individual pieces of legislation are drafted on instructions from client ministries and are not within thesole control of Legislative Counsel or the Attorney General. It should also be noted that Legislative

Counsel also has a direct responsibility to the Legislature as the Office also drafts all private member'sbills.

The Attorney General has a further role to play as part of whatever Cabinet Committee is formed toreview legislation and regulations. Here the Minister has an opportunity to comment on the technicalissues related to legislation and regulations prior to Cabinet consideration.

The Attorney General's role on legislative matters is as an adviser to the Cabinet. Although unlikely,Cabinet could, in theory, receive the Attorney General's legal opinion on legislation and choose todisregard it. The Attorney General's role is not independent of Cabinet decision making as in the areaof criminal prosecutions. As was noted earlier, the Attorney General must make careful distinctions

about the legal opinions and policy or political preferences being offered about legislation.

Civil Litigation (s.5(h) and (d))

In addition to the specific responsibilities to conduct civil litigation on behalf of the Government andits agencies (s. 5(h)), the Attorney General has broader litigation responsibilities flowing from thehistorical powers of the Attorney General referred to in s. 5(d) of the Act. These powers are based onthe Crown's parens patriae (parental) authority. The Attorney General's authority, therefore, is not onlyto conduct litigation in cases directly affecting the government or its agencies but also to litigate caseswhere there is a clear matter of public interest or public rights at stake.

This has been characterized as a constitutional responsibility to ensure that the public interest is welland independently represented. It may involve interventions in private litigation or Charter challengesto legislation, even if the arguments conclude that the legislation does contravene constitutionallyprotected rights.

Responsibility for Court Administration (s. 5(c))

A key component of the Attorney General's responsibilitiesto ensure the administration of justice in the province

is

the administration of the courtsand

as a result the responsibility for maintaining liaison with the judiciary.

Given the fundamental importance of the independence of the judiciary, the responsibility for courtsadministration is often a very sensitive and delicate issue.

Great care and respect for the principles of judicial independence must be exercised in this area.

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Ultimately

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the Attorney Generalis accountable to the people of the province,

through the Legislature,

However the legislature legislated

RUNSResponsibly Unaccountable Nuances Subversives

Attorney General, guardian of the public interest13. (1) The Attorney General for Ontario shall serve as the guardian of the public interest in all matters

within the scope of this Act or having to do in any way with the practice of law in Ontario or theprovision of legal services in Ontario, and for this purpose he or she may at any time require the

production of any document or thing pertaining to the affairs of the Society. R.S.O. 1990, c. L.8, s. 13(1); 1998, c. 21, s. 7 (1); 2006, c. 21, Sched. C, s. 13.

Admissions

(2) No admission of any person in any document or thing produced under subsection (1) is admissiblein evidence against that person in any proceedings other than proceedings under this Act. R.S.O. 1990,c. L.8, s. 13 (2); 1998, c. 21, s. 7 (2).

Protection of Minister

(3) No person who is or has been the Attorney General for Ontario is subject to any proceedings of theSociety or to any penalty imposed under this Act for anything done by him or her while exercising the

functions of such office. R.S.O. 1990, c. L.8, s. 13 (3); 1998, c. 21, s. 7 (3).

31.Nothingin this Charter extends the legislative powers of any body or authority

32. (1) This Charter applies(a) to the Parliament and government of Canada in respect of all matters within the authority ofParliament including all matters relating to the Yukon Territory and Northwest Territories; and

(b) to the legislature and government of each province in respect of all matters within the authority ofthe legislature of each province.

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52. (1) The Constitution of Canada is the supreme law of Canada,and

any law that is inconsistent with the provisions of the Constitutionis,

to the extent of the inconsistency,

of no force or effect.

With or Without Counsel?8


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An important part of the Crown's - and thus the Attorney General's -responsibility

in conducting criminal prosecutionsis

associated with the responsibility to represent the public interest- which includes not only

the community as a wholeand

the victim,but

also the accused.The Crown has a distinct responsibility to the court to present all the credible evidence available.

Constitution Act, 1982

Canadian Charter of Rights and Freedoms

Whereas Canada is founded on principles that recognize the

Supremacy of God and the Rule of Law

(Human Equals) Spirit Force Law (Rule of Law)www.Pots2013.com

Power of the SpiritThe following was extracted from the Law Society of Upper Canada - Lawyers Rules of Conduct

103) Interpretation

(f) rules of professional conduct cannot address every situation, and a lawyer should observe the

rules in the spirit as well as in the letter.

Guarantee of Rights and Freedoms

1. The Canadian Charter of Rights and Freedomsguarantees the rights and freedoms set out in it

subject only

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to such reasonable limits prescribed by law as can be demonstrably justified in a free and democraticsociety.

7. Everyone has the right to life, liberty and security of the person and the right

not to be deprived thereofexcept in accordance with the principles of fundamental justice.

15. (1) Every individual is equal before and under the law

and

has the right

to the equal protection and equal benefit of the law

without discriminationand, in particular,

without discriminationbased on race, national or ethnic origin, colour, religion, sex, age or mental or physical disability.

Law Society Act

http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_90l08_e.htm

IT

In the

BAG

Bencher Attorney General

Being why we bag IT

Law Society voices support for sustainable legal aid

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Tuesday, February 13Organization: Release: Law Society of Upper Canada

TORONTO, Feb. 12 /CNW/ - The Treasurer of the Law Society of UpperCanada, Gavin MacKenzie, today expressed the Law Society's continuing concern over the need

for a well-funded and sustainable system of legal

aidin Ontario.

"We believe that the right of vulnerable citizens to legal assistance is an importantcomponent of the administration of justice in a free and democratic society," the Treasurer said.

"Since the Ontario Legal Aid Plan was founded in 1967, the Law Society has recognized that legal aidshould be considered a right, not a charitable gift, and that individuals

are equal before the law

onlyif they are assured the option of legal

representation."

Since 1982 it was guaranteed to every individual and the taxpayers pay enough not to

consider it a charity or anything else but a possession, personal property attached as

an arm or a leg to the certainty every individual is protected from the criminal

element that obviously the governments are the ultimate criminal element.

"More than a million Ontarians benefit from Legal Aid Ontario every year, many of them through ourexcellent clinic system", he added. "Legal aid also helps many vulnerable Ontarians with family law,criminal law, workers' compensation, immigration, landlord-tenant and other legal issues." But thereare still many thousands of individuals in Ontario who cannot afford legal services and do not qualify

for support from the system. The income threshold is far too low - if you earn just over$13,000 a year you are too rich to qualify for legal aid. We are alarmed by the dramaticincrease in the number of people who try to represent themselves in court without the

benefit of legal representation or advice about their rights.

Others simply give up their right to a fairhearing.

For all of these people, access to justice is

denied."

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What Ontario lawyers perceived in the 1920s, what the Joint Committee expressed in the1960s, and what many people experience first-hand in Ontario courts every day, is that

individuals are equal before the law only if they are assuredthe option of representation by counsel.

In a democratic society,everyone should be able to participate fully in

society andhave their rights protected.

Canada has an adversarial justice system that anticipates two roughly equal partiespresenting their cases before a judge in a court of law.

What happens if there is an imbalance of power between the two parties?When an Ontarian cannot afford to hire a lawyer, an

imbalance of power exists,

especiallywhen the state is one of the parties,as in criminal law and child protection cases. Legal aid attempts to correct

this imbalance by providing low-income individuals with legal representation.

The legal aid system contributes

to ensuringthe potential

for equal protection and benefit of

the law for the poor and disadvantaged in our society.

24. (1) Anyone whose rights or freedoms, as guaranteed by this Charter,have been infringed or denied

may apply to a court of competent jurisdictionto obtain such remedy as the court considers appropriate and just in the circumstances.

Law Socity Act

Section 8Not guilty on declaration of insanity, the Attorney General elected representative of the Legislature asa bencher of the Law Society

not legally practicing Law

Constitution Section 52(1)

of no Force or Effect

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Not practising law or providing legal services

(8) For the purposes of this Act, the following persons shall be deemed not to bepractising law or providing legal services:

1. A person who is acting in the normal course of carrying on a profession or occupationgoverned by another Act of the Legislature, or an Act of Parliament, that regulatesspecifically the activities of persons engaged in that profession or occupation.

2. An employee or officer of a corporation who selects, drafts, completes or revises adocument for the use of the corporation or to which the corporation is a party.

3. An individual who is acting on his or her own behalf, whether in relation to adocument, a proceeding or otherwise.

4. An employee or a volunteer representative of a trade union who is acting on behalf ofthe union or a member of the union in connection with a grievance, a labour

negotiation, an arbitration proceeding or a proceeding before an administrativetribunal.

5. A person or a member of a class of persons prescribed by the by-laws, in thecircumstances prescribed by the by-laws. 2006, c. 21, Sched. C, s. 2 (10).

That would explain their belief

"A corporation is considered by the law to exist as a legal person.

http://en.wikipedia.org/wiki/Economic_democracy

Economic democracyFrom Wikipedia, the free encyclopediaJump to: navigation, search

Economic democracy is a socioeconomicphilosophy that suggests a shift in decision-making power

from a small minority ofcorporate shareholders to a larger majority ofpublic stakeholders. There is nosingle definition or approach for economic democracy, but most theories and real-world exampleschallenge the demonstrated tendencies of modern property relations to externalize costs, subordinate

the general well-being to private profit, and deny the populace majority a

democratic voice in economic policy decisions.[1]

Classical liberals argue that the power to dispose of the means of production belongs to

entrepreneurs and capitalists, and can only be acquired by means of the consumers' ballot, held

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daily in the marketplace.[2]

"The capitalistic social order", they claim, therefore, "is an economic democracy in the strictest senseof the word."[3] Critics of this claim point out that consumers only vote on the value of the productwhen they make a purchase; they are not voting on who should own the means of production, who cankeep its profits or the resulting income redistribution. Proponents of economic democracy generally

agree, therefore, that modern capitalism tends to hinder or prevent society from earning enough incometo purchase its output production. Centralizedcorporate monopoly ofcommon resources typicallyforces conditions ofartificial scarcity upon the greater majority, resulting in socio-economicimbalances that restrict workers from access to economic opportunity and diminish consumerpurchasing power.[4][5]As either a component of larger socioeconomic ideologies or as a stand-alone theory, some theories ofeconomic democracy promote universal access to "common resources" that are typically privatized bycorporate capitalism orcentralized by state socialism.

Assuming fullpolitical rights cannot be won without full economic rights,[1] economic democracysuggests alternative models and reform agendas for solving problems of economic instability and

deficiency ofeffective demand. As an alternative model, both market and non-market theories ofeconomic democracy have been proposed. As a reform agenda, supporting theories and real-worldexamples range from decentralization and economic liberalization to democratic cooperatives, fairtrade, and the regionalization offood production and currency. [edit] Deficiency of effective demand

"Workers spending their wages is one source of effective demand", claims geographer, David Harvey."But the total wage bill is always less than the total capital in circulation (otherwise there would be noprofit), so the purchase of wage goods that sustain daily life (even with a suburban lifestyle) is neversufficient for the profitable sale of the total output." [6] According to many proponents of economic

democracy, the most fundamental economic problem is that modern society does not earnenough income to purchase its output production.

While balanced mixed economies have existed briefly throughout history, some analysts agree thatcommand economies tend to dominate, listing contemporary expressions ofstate capitalism as anextreme example, not an exception to the rule.

As common resources are monopolized by imperial centers of wealth and power, conditions of

scarcity are imposed artificially upon the greater majority, resulting in large-scale socio-economic imbalance.[5]

In any economic system, "wealth" includes all material things produced by labor for the satisfaction ofhuman desires and having exchange value. Land and laborare generally considered the two mostessential factors in producing wealth. Land includes all natural opportunities and forces. Laborincludes all human exertion.

Capital includes the portion of wealth devoted to producing more wealth.

While the income of any individual might include proceeds from any combination of these threesourcesland, labor, and capital are generally considered mutually exclusive factors in economicmodels of the production and distribution of wealth.

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According to Henry George,

"People seek to satisfy their desires with the least exertion".[4]

Human beings interact with nature to produce goods and services (products) that other human beingsneed or desire. The laws and customs that govern the relationships among these entities constitute the

economic structure of a given society.In his book, After Capitalism, David Schweickart suggests, "The structure of a capitalist societyconsists of three basic components:The bulk of the means of production are privately owned, either directly or by corporations that arethemselves owned by private individuals.

Products are exchanged in a "market"; that is to say, goods and services are bought and sold at pricesdetermined for the most part by competition and not by some governmental pricing authority.Individual enterprises compete with one another in providing goods and services to consumers, eachenterprise trying to make a profit. This competition is the primary determinant of prices.

Most of the people who work for pay in this society work for other people, who own the means ofproduction. Most working people are "wage labourers."[7]While supply and demand are generally accepted as market functions for establishingprice, the presentfinancial price system is not self-liquidating.[8] Corporate firms typically endeavor to 1) minimize the

cost of production and 2) increase sales, in order to 3) maximize shareholder value.

But when consumers cannot buy all the goods being produced, "investor confidence" tends to decline,triggering declines in both production and employment. According to many analysts, such economicinstability stems from a central contradiction: Wages are both a cost of production and an essentialsource ofeffective demand (needs or desires backed with purchasing power).

Moreover, "those who produce the goods and services of society are paid less than theirproductive contribution".[7]

[edit] Savings, investment, and unemployment

In his 1879 bookProgress and Poverty, Henry George argued that a majority of wealth created in a"free market" economy is appropriated by land owners and monopolists through economic rents, andthat concentration of such unearned wealth is the root cause ofpoverty.[4] "Behind the abstractionknown as 'the market' lurks a set of institutions designed to maximize the wealth and power of the mostprivileged group of people in the world -- the creditor-rentier class of the first world and their junior

partners in the third".[9]

According to some modern analysts, private savings are not only unnecessary for economic growth,but they are often harmful to the overall economy.[7] In an advanced industrial society, business creditis necessary for a healthy economy. A business that wants to expand production needs to command thelabor of others, and money is an effective mechanism for exercising this authority.[7] It is oftencheaper for a business to borrow capital from a bank than to stockpile cash itself. This was the purposeof the state banking system in the U.S. prior to the Civil War. For an industrial firm in an age ofcontinued technological innovation, a considerable amount of earnings must be retained in order to

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invest in future improvements.[10] If private savings are loaned out to entrepreneurs who use them tobuy raw materials and hire workers, then aggregate demand is not reduced.[7]

However, when private savings are not reinvested, the whole economy suffers recession,unemployment, and the eventual disappearance of excess savings.[7] By assuming that producersimmediately spend the money they receive as the price for goods and services, Say's Law overlooks

the key fact ofretained earnings. Even if the retained earnings are deposited in a bank they will notnecessarily result in new spending. For a variety of reasons, most notably the necessity of retainedearnings and the inclusion in prices of the costs of borrowing, sufficient income is never returned to theproducing economy in order for people to purchase what can be manufactured.[10]

In this view, unemployment is not an aberration of capitalism, indicating any sort of systemicmalfunction. Rather, unemployment is a necessary structural feature of capitalism, intended to

discipline the workforce. If unemployment is too low, workers make wage demands that either cutsinto profits to an extent that jeopardize future investment, or are passed on to consumers, thusgenerating inflationary instability. David Schweickart suggests, "Capitalism cannot be a full-

employment economy, except in the very short term.

For unemployment is the"invisible hand"

-- carrying a stick --that keeps the workforce in line."[7] In this view, Adam Smith's

"invisible hand"does not seem reliable to guide economic forces on a large scale.[1]

Assuming business credit could come from public sources rather than from the accumulations ofprivate savers, some analysts consider interest payments to private savers both undeserved andunnecessary for economic growth. Moreover, the personal decision to save rather than consumedecreases aggregate demand, increases the likelihood of unemployment, and exacerbates the tendencytoward economic stagnation. Since wealthy people tend to save more than poor people, the propensityof an economy to slump because of excess saving becomes ever more acute as a society becomes moreaffluent.[7] The research of Richard Wilkinson and Kate Pickett suggests that health and socialproblems are significantly worse in more unequal wealthy nations.[11] They argue that there are

"pernicious effects that inequality has on societies: eroding trust, increasing anxiety andillness, (and) encouraging excessive consumption" [12][edit] Monopoly power versus purchasing power

The discipline ofeconomics is largely a study ofscarcity management. "Absent scarcity andalternative uses of available resources, there is no economic problem".[13] In this regard, manytheories of Economic Democracy hold that conditions of scarcity are artificially maintained bycorporate structures that confine abundance to an exclusively entitled minority. In this view, socio-economic imbalance stems not from a failure to manage limited resources in a world of scarcity, butfrom mismanagement of virtually unlimited abundance and prosperity.[5] In his book Labor and OtherCapital (1849), American businessman, Edward Kellogg (17901858), said that:

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"Money power is not only the most governing and influential, but it is also the most

unjust and deceitful of all earthly powers. It entails upon millions excessivetoil, poverty and want, while it keeps them ignorant of the cause of their sufferings; for, with their tacit

consent, it silently transfers a large share of their earnings into the hands of others, who have never

lifted a finger to perform any productive labor."[14]

While he considers these functions a public wrong, Kellogg also asserts it is the responsibility of thepublic to find and implement a remedy. Generally considered monopoly power, this "public wrong" isviewed by many as the most influential factor in artificial scarcity. In this regard, Henry George furthersuggests:"There is in reality no conflict between labor and capital; the true conflict is between labor andmonopoly... Abolish the monopoly that forbids men to employ themselves and capital could notpossibly oppress labor... [R]emove the cause of that injustice which deprives the laborer of the capitalhis toil creates and the sharp distinction between capitalist and laborer would, in fact, cease to exist".[15]

While some consider land to be the primary source of wealth, others propose the labor theory of value(first introduced by John Locke, developed by Adam Smith and laterKarl Marx), arguing that labor isthe fundamental source of value. In these terms, "money is first, and foremost, a contract againstanother persons labor. Except for wealth produced by nature, value is properly a measure of the timeand quality of all productive labor spent producing a product or service. If the difference between thepayment received for productive labor and the price paid by the consumer for a product or service isgreater than fair value for expediting that trade, either the producer was underpaid, the final consumerwas overcharged, or both.

When intermediaries underpay producers or overcharge consumers, they are siphoning away the

production of the labors of one or the other, or both."[1][16]

For example, many analysts considerinvention a "more or less costless store of knowledge, capturedby monopoly capital and protected in order to make it secret and a 'rare and scarce commodity', for saleat monopoly prices. So far as invention is concerned, a price is put on them not because they are scarcebut in order to make them scarce to those who want to use them."[17][18][19] Patent monopoliescapitalize stock values far above tangible labor value. The difference between labor-value and

monopoly-value is transferred to consumers in the form of higher prices, and collected as

"profit" by intermediaries who have contributed nothing to earn it.[19]Under such conditions, analysts generally agree that society does not currently earn enough to buy

what the economy produces.

The difference between earnings and prices is typically appropriated by

industrial and banking centers of capital through monopoly control of finance andother market resources. Such exclusive entitlement tends to artificially impose conditions of economicscarcity upon the majority of the population.[5] While the accelerating advance oftechnology,developed and maintained by labor, tends to generate a virtually unlimited abundance, this process alsodrives wages down as workers are replaced by machines, ironically minimizing the purchasing power

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of workers in the market.[20] In June 2006, investment bank, Goldman Sachs, reported:

"The most important contribution to the higher profit margins over the past five years has been a

decline in Labor's share of national income."

[edit] Enclosure of the commonsThe term "land" typically denotes the "universe of natural opportunities" or "public utilities", generallyknown as the commons. Artificially restricted access of labor to common resources is generallyconsidered monopoly orenclosure of the commons. Due to the economic imbalance inherentlyimposed, such monopoly structures tend to be centrally dictated by imperial law, and must bemaintained by military force, unequal trade agreements, or both.[4]

In 1911, American journalist Ambrose Bierce defined "land" as:"A part of the earth's surface, considered as property. The theory that land is property subject to privateownership and control is the foundation of modern society.... Carried to its logical conclusion, it meansthat some have the right to prevent others from living; for the right to own implies the right exclusively

to occupy; and in fact laws of trespass are enacted wherever property in land is recognized. It followsthat if the whole area of terra firma is owned by A, B and C, there will be no place for D, E, F and G tobe born, or, born as trespassers, to exist".[21]

In The Servile State (1912), Hilaire Belloc referred to the Enclosures Movement when he said,

"England was already captured by a wealthy oligarchy before

the series of great industrial discoveries began". If you sought theaccumulated wealth preliminary to launching new industry, "you had to turn to the class which hadalready monopolized the bulk of the means of production in England. The rich men alone could furnishyou with those supplies".

When Adam Smith wrote The Wealth of Nations in 1776, the dominant form ofbusiness waspartnership, in which regional groups of co-workers ran co-owned businesses.

From this perspective, many considered the corporate model stock sold to strangersinherently

prone to fraud.

While numerous scandals historically support this dim view of corporate policy, small

partnerships could not possibly compete with the aggregate capital generated bycorporate economies of scale. According to Peter Barnes, author of Capitalism 3.0, the greatestadvantage ofcorporations over any other business model is their ability to raise capital from strangers.In this regard, corporations are aided by laws that limit stockholders liability to the amounts they haveinvested.[22]In A Preface To Economic Democracy, Robert A. Dahl suggests that agrarian economy and society inthe early United States "underwent a revolutionary transformation into a new system ofcommercialand industrial capitalism that automatically generated vast inequalities of wealth, income, status, andpower." Dahl claims that such inequalities result from the "liberty to accumulate unlimited economicresources and to organize economic activity into hierarchically governed enterprises." [23][edit] The rise of corporations

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The concept of the corporation reaches back to Roman times. However, according to author GregMacLeod, "the modern business corporation evolved radically from its ancient roots into a form withlittle relation to the purpose as understood by historians of law." John Davis, a legal historian, notesthat the precursor of the business corporation was the first monastery established in the sixth century,the purpose of which was to serve society. Most business corporations before 1900 developed inBritain, where they were established by royal charter, with the expectation of a contribution to society.

Incorporation was a privilege granted in return for service to the crown or the nation. MacLeod goes onto say:

"A corporation is considered by the law to exist as a legal person. In the MiddleAges it was called a persona ficta. This is a very useful way of looking at a business corporation,because it suggests correctly that the corporate person has a certain personality. It has duties andresponsibilities vested unto it by the legitimate government or society that fostered it.

The corporate person receives great benefits from society and, inreturn, it must exercise great responsibilities. One of the most basic responsibilities is job creation, afundamental need in any society." [24]By the mid-nineteenth century, however, corporations could live forever, engage in any legal activity,and merge with or acquire other corporations.

In 1886, the U.S. Supreme Court legally recognized corporations as persons, entitled under theFourteenth Amendment to the same protections as living citizens. Unlike average citizens, corporationsalso have large flows of money at their disposal. With this money they hire lobbyists, donate copiouslytopoliticians, and swaypublic opinion.

But, despite Supreme Court ruling, the modern corporation is not a real person.

Rather, the publicly traded stock corporation is what Barnes terms an "automaton", explicitly

designed to maximize return to an elite minority of stock owners. A corporation neversleeps or slows down.

It externalizes as many costs as possible, and never reaches an upper limit of profitability, because nosuch limit has yet been established. As a result, corporations keep getting larger and more powerful.

www.m4d.ca

Mulroney 4 Destiny Coherency Acceleration

In 1955, sales of the Fortune 500 accounted for one-third of U.S. gross domestic product. By 2004they commanded two-thirds. In other words, these few hundred corporations enveloped not only thecommons but also millions of smaller firms organized as partnerships orproprietorships.

Overall, corporations have established a homogeneous global playing field around which they can

freely move raw materials, labor, capital, finished products, tax-paying obligations, and

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profits. Thus, corporate franchise has become a perpetual grant ofsovereignty, includingimmortality,self-government, and limited liability. By the end of the twentieth century, corporatepowerboth economic and political stretched worldwide.

International agreements, promoted by the United States, not only lowered tariffs but extendedcorporateproperty rights and reduced the ability of sovereign nations to regulate corporations

differently.[22] David Schweickart submits that such "hypermobility of capital" generates economicand political insecurity around the globe.[7]

"If the search for lower wages comes to dominate the movement of capital, the result will be not only alowering of worldwide wage disparities, but also a lowering of total global income." [7]

At the domestic level, inequities maintained by corporate imperialism tend to result in the large-scaledebt, unemployment, and poverty characteristics of economic recession and depression. According toJack Rasmus, author of The War At Home and The Trillion Dollar Income Shift, income inequality incontemporary America is an increasing relative share of income for corporations and the wealthiest 1-

percent of households while shares of that income stagnate and

decline for 80-percent ofthe United States workforce. After rising steadily for three decades afterWorld WarII, the standard of living for most American workers has sharply declined between the mid-1970s tothe present. Rasmus likens the widening income gap in contemporary American society to the decadeleading up to the Great Depression, estimating "well over $1-trillion in income is transferred annuallyfrom the roughly 90-million working class families in America to corporations and the wealthiest non-working class households.

While a hundred new billionaires were created since 2001, real weekly earnings for 100 millionworkers are less in 2007 than in 1980 when Ronald Reagan took office".

According to Rasmus and other analysts, this "quarter century pay freeze", imposed by rapidlyincreasing control of wealth by the very rich, has resulted in innumerable negativeexternalities:[25]"For the first time since the U.S. government began to collect the data in 1947, wages and salaries nolonger constitute more than half of total national income. In contrast, corporate profits are at theirhighest levels since World War II, having risen double digits every quarter in the last three and a halfyears alone and 21.3% in the most recent year, 2005, according to Dow-Jones 'Market Watch'.Corporate profit margins are higher than they have been in more than half a century, according toMerrill Lynch economist, David Rosenberg. After tax profits are now equal to 8.5% of the U.S. GrossDomestic Product -- that's more than a trillion dollars -- and the highest since the end of World War IIin 1945."[25]

[edit] ImperialismGenerally considered the forceful extension of a nation's authority by territorial gain or by theestablishment ofeconomic and/orpolitical dominance over other nations, some view imperialism as anadvanced stage of capitalism. The merging of banks and industrial cartels give rise to finance capital,which is then exported (rather than goods) in pursuit of greater profits than the home market can offer.Political and financial power is divided amongst international monopolist firms and European states,colonizing large parts of the world in support of their businesses.[26] According to analyst, Michael

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Parenti, imperialism is "the process whereby the dominant politico-economic

interests of one nation expropriate for their own enrichment the land,

labor, raw materials, and markets of another people." [27] Parenti saysimperialism is older than capitalism. But, given its expansionist nature, capitalism has little inclinationto stay home. While he concedes imperialism is not typically recognized as a legitimate concept with

regard to the United States, Parenti goes on to argue:

"Emperors and conquistadors were interested mostly in plunder and tribute, gold and

glory. Capitalist imperialism differs from these earlier forms in the way it systematicallyaccumulates capital through the organized exploitation of labor and the penetration ofoverseas markets. Capitalist imperialism invests in other countries, transforming and dominating theireconomies, cultures, and political life, integrating their financial and productive structures into aninternational system of capital accumulation." [27]

On a global scale, wealthy developed nations tend to impede or prohibit the economic

and technological advancement of weaker developing countries throughthe military force, martial law, and inequitable practices of trade thattypically characterize colonialism. Rhetorically termed by some as a "tragedy of the commons","survival of the fittest", or "might makes right", proponents of Economic Democracy generallyattribute such economic crises to the imbalances imposed by corporate imperialism.[1] In his book,Economic Democracy: The Political Struggle for the 21st Century, J.W. Smith examines the economicbasis for the history of imperial civilization. Just as cities in the Middle Ages monopolized the meansof production by conquering and controlling the sources ofraw materials and countryside markets,Smith claims that contemporary centers of capital now control our present world through privatemonopoly of public resources sometimes known as "the commons". Through inequalities of trade,developing countries are overcharged for import of manufactured goods and underpaid for raw

material exports, as wealth is siphoned from the periphery of empire and hoarded at the imperial-centers-of-capital:

"Over eight-hundred years ago the powerful of the city-states of Europe learned to control the

resources and markets of the countryside by raiding and destroying others primitive

industrial capital, thus openly monopolizing that capital and establishing and maintaining

extreme inequality of pay. This low pay siphoned the wealth of the countryside

to the imperial-centers-of-capital.The powerful had learned toplunder-by-trade and have been refining those skills ever since".

Like other financial empires in history, Smith claims the contemporary model forms alliancesnecessary to develop and control wealth, as peripheral nations remain impoverished providers of cheapresources for the imperial-centers-of-capital.[1] Belloc estimated that, during the British Enclosures,"perhaps half of the whole population was proletarian", while roughly the other "half" owned and

controlled the means of production. Now, under modern Capitalism, J.W. Smith claims fewer than

500 people possess more wealth than half of the earths population, as the

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modern states and market economies tend to grow under capitalism, both are mutually interdependentfor functional development. In order for market economies to be truly prosperous, he claims socialconstructs must play an essential role. With the term "fictitious commodities", Polanyi claimed thatland, labor, and money are all commodified under capitalism, though the inherent purpose of theseitems was never intended "for sale".

He says natural resources are "God-given", money is a bookkeeping entry validated by law, and laboris a human prerogative, not a personal obligation to market economies.

Dr. Martin Luther King Jr. claims "Communism forgets that life is individual. Capitalism forgets thatlife is social, and the Kingdom of Brotherhood is found neither in the thesis of Communism nor theantithesis of Capitalism but in a higher synthesis. It is found in a higher synthesis that combines thetruths of both".[29] Trade unionist and social activist, Allan Engler, argues further that economicdemocracy is the working-class alternative to capitalism. In his book, "Economic Democracy", Englerstates:

"When economic democracy -- a world of human equality, democracy and cooperation -- is the

alternative, capitalism will no longer be seen as a lesser evil. When the working class, not arevolutionary party, is the agency of social transformation, change will be based on workplaceorganization, community mobilizations and democratic political action. The goal will be to transformcapitalism into economic democracy through gains and reforms that improve living conditions whilemethodically replacing wealth-holders' entitlement with human entitlement, capitalist ownership withcommunity ownership and master-servant relations with workplace democracy." [30]

Assuming that "democracy is not just a political value, but one with profound economic implications",David Schweickart suggests "the problem is not to choose between plan and market, but to integratethese institutions into a democratic framework".[31] According to Schweickart, economic democracy,like capitalism, can be defined in terms of three basic features:Worker Self-Management: Each productive enterprise is controlled democratically by its workers.

Social Control of Investment: Funds for new investment are generated by a capital assets tax and arereturned to the economy through a network of public investment banks."[7]The Market: These enterprises interact with one another and with consumers in an environment largelyfree of governmental price controls. Raw materials, instruments of production and consumer goods areall bought and sold at prices largely determined by the forces of supply and demand.In real-world practice, Schweickart concedes economic democracy will be more complicated and less"pure" than his abstract model. However, to grasp the nature of the system and to understand itsessential dynamic, it is important to have a clear picture of the basic structure. Capitalism ischaracterized by private ownership of productive resources, the market, and wage labor. The Sovieteconomic model abolished private ownership of productive resources (by collectivizing all farms andfactories) and the market (by instituting central planning), but retained wage labor.Proposed models for economic democracy generally begin with abolishing wage labor. Schweickart'smodel goes further to abolish private ownership of productive resources.

[7] Other proposals recommend abolishing the market, as well.[edit] Worker self-managementIn his book, "The Democratic Firm", veteran Economic Advisor for the World Bank, David P.Ellerman, states:

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"In the world today, the main form ofenterprise is based on renting human beings (privately orpublicly). Our task is to construct the alternative. In the alternative type of firm, employmentby thefirm is replaced with membership in the firm. Economic democracy requires the abolition of theemployment relation, not the abolition ofprivate property. Democracy can be married with privateproperty in the workplace; the result of the union is the democratic worker-owned firm." [32]Ellerman maintains that the contract to buy and sell labor services is inherently invalid because labor,

in the sense of responsible human action, is de facto non-transferable. The rights to the positive andnegative fruits of ones labor are thus inalienable rights. In questions ofgovernance (as opposed toproduction), the emphasis is on decision-making (as opposed to responsibility). But the basic facts arethe same. Decision-making capacity is de facto inalienable. A person cannot in fact alienate his or herdecision-making capacity just as he or she cannot alienate de facto responsibility. 'Deciding to do asone is told' is only another way of deciding what to do.

Thus, Ellerman concludes, it is not private property that needs to be abolished, but the employmentcontract. In other words, "a firm can be socialized and yet remain 'private' in the sense of not beinggovernment-owned." [32]In the proposals of both Ellerman and Schweickart, each productive enterprise is controlled by those

who work there. Workers are responsible for the operation of the facility, including organization,discipline, production techniques, and the nature, price, and distribution of products. Decisionsconcerning proceeds distribution are made democratically. Problems of authority delegation are solvedby democratic representation. Management is not appointed by the State nor elected by the communityat large, nor selected by a board of directors elected by stockholders. Whatever internal structures areput in place, ultimate authority rests with the enterprise's workers, one-person, one-vote.

In David Schweickarts model, however, workers control the workplace, but they do not "own" themeans of production. Productive resources are regarded as the collective property of the society.Workers have the right to run the enterprise, to use its capital assets as they see fit, and to distributeamong themselves the whole of the net profit from production. In Schweickart's model, societal"ownership" of the enterprise

attorney general guardian of the public interest predetermined not responsible for his actions under...

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