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The Citizen, 1990-12-18, Page 5Arthur Black THE CITIZEN, TUESDAY, DECEMBER 18, 1990. PAGE 5. Laughing to the end A laugh is the opposite of a breakdown. It’s a breakup. Bernard Slade 1 see from my newspaper that Sweden is set to put its civil servants through an improvement course. They are going to be taught how to laugh. “A bureaucrat works a lot with laws and contracts” says Ulla-Christin Svensson, the woman in charge of the humour course. ‘‘That leaves him very much controlled and stops him from really opening up.” I think it’s a wonderful idea which can only improve the average Swede’s lot. Think of the merry peals of laughter ringing out across the blue-grey snowscape of that gloomy, introspective land. ‘‘We confront problems better by being happy” Ms. Svensson says, and I know she’s absolutely right. Just imagine for a moment the merry peals of laughter ringing out across the blue-grey snowscape of oar gloomy, intro­ spective land. Meech Lake, the GST, the The International Scene________ A bird’s eye view of inflation BY RAYMOND CANON If it is one thing that people complain to me about, it is inflation. I constantly hear about prices that have gone up more rapidly than incomes and I have the suspicion that in the back of the complain- er’s mind, he or she hopes that I will come up with some solution that will make everybody live happily ever after. If only it were that easy! Perhaps the lamentations have increased because there is no doubt that inflation is on the rise just about everywhere in the industrialized nations. The lowest is in Japan (2.3 per cent) and the highest is Sweden (10.8 per cent) and all the others are rather evenly spread between the two. Canada with a current 4.1 per cent is at about the half-way mark, and surprise of surprises, Switzerland is a full two per cent higher than that of Canada. I find that hard to believe, given the discipline that the Swiss show to economic matters but, as I was there,a couple of times this summer, 1 can vouch for the fact that prices are rising. Given that there is virtually a free market in the flow of money, not to mention the amount of foreign trade which takes place, it is not surprising that the major countries tend to move in unison much of the time when it comes to inflation. However, I don’t think that people are too interested in that; what they want to know is what causes price increases and what can be done (painless of course) to correct it. In the next few lessons you are therefore, going to get a crash course in the economics of inflation. For centuries the main cause of inflation has been the classic one of “too much money chasing too few goods” or “de­ mand runs ahead of supply.” In other words the economy, be it Canadian, German or British, cannot produce goods quickly enough to meet the current demand. Thus we have a situation where people bid up the price of goods; one has only to look at what happens periodically to the housing market in Toronto to see the truth of that statement. If we had to pay cash for our goods, the situation might not be so bad. However, Quebec Sulk, the Leaf slump, - this country could use a laugh. There’s a reason a deep hearty belly laugh feels so good and it’s not just because it breaks the tension or relieves the monotony. Laughter is therapeutic. It really is good for a body (or a country). There’s an old saw that goes: ‘‘he who laughs last laughs best.” A wise physician once amended that to: “he who laughs, lasts.” It’s true. Laugh, and you’ll live longer, not to mention better. Well ... not always, I suppose. Allen Ginsberg, the American poet, claims he nearly died from an overdose of nitrous oxide (laughing gas) -- but given the benign nature of laughing gas, and the poet’s penchant for high melodrama, Ginsberg may have been pinching a little poetic licence. Then there’s the case of Zeuxis, a Greek painter who lived back around 500 B.C. Zeuxis was commissioned by a wealthy and somewhat eccentric patron to paint a portrait of a well-known local bag lady. Zeuxis kept his part of the bargain. He rendered a portrait so wickedly hilarious that it made him -- the artist - smile. Then snicker. As a matter of fact it made him laugh out loud. Then he guffawed and whooped and roared and gasped for breath and looked at his portrait and roared some more and ... Died. Zeuxis laughed so hard he burst a since credit (cards or otherwise) is so accessible, we can add to our supply of cash by borrowing and this makes a bad situation worse. People, it seems, have to have things right away and they don’t stop to think what all this is doing to the price level. Another prime cause of inflation is what we call “cost-push”. Let’s look at an industry whose workers manage to negoti­ ate a wage increase. Unless the same industry is able to increase its efficiency or productivity by about the same percentage as the wage increase, this means that the products will carry a new and higher price tag. Try telling a union, for example, that they are one of the causes of inflation. To be honest, just about everybody contri­ butes to it in some way. Take a very topical product such as petroleum. Because of the instability in the Middle East, the price of crude oil starts to climb. This increase fits into the cost-pushy category outlined above and as a result contributes to the general increase in prices. Now that you have a brief outline of the causes, what can one do to bring those increases back to more acceptable levels. For openers we might try cutting back on our purchases (demand). Either pay cash for them or delay buying them until you have a bigger percentage of the price in cash. The government tries to help this along by increasing interest rates and you all know the screaming that results from a move such as this. However, unless we Mabel’s Grill Continued from page 4 good after all.” WEDNESDAY: Billie says he’s not sur­ prised about the girls in the private school in Toronto rebelling because they’ve been told they have to wear skirts with their uniforms when some of them want to wear pants to keep warm in winter. “If I was a woman about the first freedom I’d have wanted was to wear something that would keep my kneecaps from freezing,” he said. “It wouldn’t be bad if it was only that,” Julia said. “It’s amazing what we women will do in the name of being fashionable. I remember when we used to wear those mini-skirts in Toronto winters and there’d be this permanent strip of reddish-purple skin from mid-calf to mid-thigh. It’s a wonder we didn’t end up with long-term frost bite.” Tim says the girls at the school better hope for a mild winter since the head master has agreed they can change their blood vessel in his head. He literally died laughing. I guess the bag lady had the last laugh after all. Which is one more reason to laugh every chance you get - because you never know which one’s going to be your last. General John Sedgwick didn’t, when he stuck his head over the parapet during the Civil War, snorted at the rebel snipers and scoffed: “Why, they couldn’t hit an elephant at this dist__” A few weeks later, in Washington, another “last laugh” occurred during the production of a play called “Our American Cousin”. At one point in the play, the heroine calls for a shawl to protect her from the draft. The actor who was supposed to fetch the shawl replied instead “You are mistaken, Miss Mary, the draft has already been stopped by order of the President.” All very impromptu, all very clever, because President Lincoln had, in fact cancelled the draft of American soldiers that week. Theatre patrons craned to look at the Presidential box. Yes, President Lincoln was laughing appreciatively. Unbeknownst to all, another actor was at that moment, creeping towards the Presi­ dent’s box, muzzle-loaded derringer in hand. John Wilkes Booth was about to insure that President Lincoln had had his last laugh. curb our demand, raising interest rates is a common mechanism. We could also try being more productive but again we run into the situation where people want to earn more and do less. It is really important that we address this situation at the earliest possible moment. One thing that Canadians like to complain about are the high interest rates which have been imposed on us in the fight against inflation. We should not feel that we are somehow alone in this respect. At the present time the same high rates are to be found in Britain, Australia, Spain and Sweden, even Germany’s are for them relatively high at the present time. What we have to realize that, as long as we are lukewarm in our support of the reduction in the federal deficit, we don’t leave Ottawa too much choice in the way they go about fighting inflation. When we borrow money (and lots of it) to pay for the deficit, this increases the demand for money and thus the price we have to pay for such money. While we are making up our mind about that little matter, there are several things we can do. .Use our utilities more efficiently, drive the car less, cut down on impulse and credit buying, in short, give new meaning to the expression “living within your means.” If you believe in the old saying that misery loves company, you can rest assured that you have plenty of that in most industrialized countries. There is no, repeat no painless way to fight inflation regardless of your nationality. uniform to wear pants but not until the new school term next September. “I agree with him,” Ward says. “Wo­ men learn soon enough to wear the pants in the family so let them wait as long as possible.” FRIDAY: Hank was surprised to see that when Ivana Trump finally got her divorce from Donald it only made page 2 of the Toronto Star. “I thought it would be a banner across front page,” he said. “Ah yes,” said Julia, “but wait till they get through hashing out whether poor Ivana gets stuck with only $25 million or half of all he’s got.” Tim said she’d better hurry if she’s going to get half. They figure Donald’s lost a billion since they first broke up and at the rate he’s going her $25 million might look good soon. “You think Ivana can sue him for mismanging her money?” Hank wonder­ ed. Letter from the editor Sometimes we get to fight back BY KEITH ROULSTON It’s not a time when it’s easy to feel good about yourself if you happen to live in a rural area. All the signs from government and big business are telling you you don’t really matter, that you’re an insignificant remainder from another age and if they can’t get rid of you, at least they can ignore you. Take your choice of who gives the biggest insult, government or business. Last week another local post office, in Bluevale, was given its death sentence. Those who still somehow think that post offices in Blyth and Brussels and Wingham and Clinton won’t find the same fate probably also have their lists made out for Santa and believed somehow the GST wouldn’t go through. It’s going to happen folks. CN is trying to get rid of the rail line through Brussels again. This time with the economy in recession it’s going to be hard for local firms to argue they can make the rail line profitable at a time when they’re worried about making themselves profi­ table. Petro Canada has declared it doesn’t want to service dealers who pump less than one million litres of gas in a year. That means they will pretty well disappear from small town Canada (and this is “your” gas company). The media has been full of opinion pieces about how farmers are shafting the consumer either through being so ineffi­ cient they need subsidies or being so clever they got supply management and because they are selling milk and chickens and eggs at a profit are costing consumers (who are used to buying farm products that farmers lose money producing) more than they should rightfully pay. It often seems that we in rural Canada are just laying around to give the big and powerful something to kick when they need a little exercise. But it’s nice to think that now and then we can kick back. In a recent issue of “The Idler” magazine, John Phillips suggests rural Ontario did just that when it booted the Liberal government of David Peterson out of office last September. Phillips, Editor- in-Chief of “Farm and Country” one of Ontario’s largest farm publications, sug­ gests that Mr. Peterson and his advisors made a fatal mistake when they got caught up in the importance of the trendy urban vote and forgot their rural roots. Mr. Phillips credits the Liberal victory in the first place with the long, hard spade work done in rural ridings by former Huron-Bruce M.P.P. Murray Gaunt and then by Jack Riddell, Huron M.P.P. That victory wouldn’t have taken place, he said, if the Progressive Conservatives hadn’t forgotten their rural roots. In the days of when John Roberts was premier and the late Bill Stewart was agriculture minister, the Tories had a strangle-hold on rural Ontario and since rural voters are less apt to switch allegiances at the drop of an election promise, they had a solid base of 43 rural seats to protect themselves against the fickleness of big-city voters. But, Mr. Phillips says, Bill Davis when he took over as leader of the Conservatives in 1971, surrounded himself with city technocrats who “saw the quasi-city-state as the wave of the future”. Mr. Stewart had to quit because of a heart attack and without him nagging and smacking his fist on the table to remind the government about the people outside the big cities, the Tory grip on the rural ridings lessened. Mr. Gaunt and Bob Nixon, then Liberal leader, took advantage of this weakness, the author says. Mr. Gaunt helped Mr. Riddell get elected in a 1971 by-election. The two of them helped feret out top-notch candidates in other rural ridings. By the 1975 election the once solid-Tory-blue quilt across rural Ontario looked like a red and b'ue patchwork. By the 1985 election there Continued on page 6