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The Strategic Vision for Trudeau Government of Canada
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The Strategic Vision for Trudeau Government of Canada
Frank Dec. 5, 2015 in Waterloo, Ontario, Canada
In the Era of agricultural economy, the geographic space is the living space. In the Era of market economy, the market space is the living space.
“High housing and land prices will destroy competitiveness of manufacturers, without competitive products; a country will lose living space.”
It is burying own nationals, if the government allows speculators free speculation.
--- Frank The speculators are destroying the foundation of Canadians survival
Manufacturer is the basic cell and main driving force of the real economy by integrating the intelligence, Capital, Knowledge, Technology, and Market together to play the role as protagonists of scientific and technological innovation.
Manufacturer is the organizer of large-scale socialized production, it organizing and training social members to create material wealth with providing jobs for making living and tax revenue for social governing, thus to create a stable community, by which that people can work and live to enjoy a prosperous life.
Manufacturer is the cornerstone of social stability and sustained prosperity.
With rapid development of low-cost manufacturing in underdeveloped countries, Canada's traditional manufacturing has been permanently losing.
--- Frank Canada's economy is faced at vital crossroads
Contents
1…Financial economy will lead world economy recession further
1.1…Financial economy is 10 times larger than that of real
economy
1.2…Financial instruments is destroying world economy
1.3…The cause of 1928 and 2008 financial crisis is still in active
1.4…Real estate is a kind of financial
instrument in harming real economy
1.5…The biggest social inequality is that rich individual with poor
government
2…The Supply-side economics will lead world economy recession further
2.1…Demand side economics is acting as economic heroin
2.2…It is not faulty of demand side economics but dogmatic
politician
2.3…Germans become savior for those victims of demand side
economics
3…New Govt. Canada will be going on demand side economics
4…The fatal weaknesses of Canadian economy – low productivity
4.1…German
immigrant was shocked by lax office culture of Canada
4.2…Wrongful social governance causes low productivity
4.3…It is that poor management causes businesses decline
4.4…The bad corporate culture forced good manufacturer moved to
Mexico
4.5…A NCR’s supervisor dared not supervise in work and had to dodge 2 weeks every year
5…The success of Germany reflects the weakness of Canada
6…The strategy for Canada with world economy continues towards recession
6.1…Legislation by copying ISO standards
and Amoeba Management
Since 2008 financial crisis, people have been looking forward to economic recovery; however it seems to have no signs to comfort the eager hope.
For a while, the issue of US Federal Reserve hiking interest rates has become a hot spot. Various projections are one after another; especially the improvement of the US employment gave people an illusion of economic recovery.
As my view, the world economy will continue towards recession, due to that condition in harming real economy has not been improved yet, especially, the greedy activity of wild developed financial economy plundering on real economy has not been governed effectively, it will make profit margin of manufacturers too narrow to survive, and the manufacturers are the main basis of real economy.
On other hand, the two big economies – the United States and China is both reviewing its economic development policies, which may leads economy from current Demand side economics turning to Supply-side economics. Such relaying needs a longer time for operable adjustment economically and structurally, it would inevitably slow down current economy. Especially, that China may put it into practice soon.
Now, let Google some economic data to look at real economic situation.
The United States:
Nov. 18, 2015, US International Trade Data - Census.gov: October exports of foods, feeds, and beverages were the lowest since March 2012, inudstrial supplies and materials were the lowest since September 2010.
The Eurozone:
Nov. 13, 2015, Eurozone Economy Slows as Exports Weaken - WSJ
China:
Dec. 08, 2015, China exports 5 months consecutive fall, imports 13 months consecutive fall.
Japan:
Nov. 18, 2015, Japan exports fall in October for first time in 14 months.
The facts show that economy of world main economies is not only no recovering but in deteriorating.
Faced with the global spread of the adverse economic situation, we are really incompetent and helpless. However, to manage Canadian economy better is possible.
1…Financial economy will lead world economy
recession further
People hope a sustainable economic development without the trouble of economic recession; however, it seems unrealistic dream that can only stay in fantasy. Any way we must manage to reduce the harm of the recession. For this concern, that well understanding financial economy is important due to it is the main cause of the economic recession.
1.1…Financial economy is 10 times larger
than that of real economy
Aug. 19, 2015, in the article The speculators are destroying the foundation of Canadians survival, I indicate that:
“For the volume of overdeveloped financial economy, the professor of History of Harvard University Niall Ferguson made an introduction.”
“In the start of the documentary The Ascent of Money: A Financial History of The World that written and presented by the professor introduces with that: ‘In our time, we've witnessed the zenith of global finance. 2006，the world total economic output was worth around $47 trillion, that's 47 followed by 12 zeroes, the total value of stock and bond markets was roughly $110 trillion, more than twice the size. And the amount outstanding of the strange new financial life form known as derivatives was $473 trillion, 10 times larger.’"
“We can intuitively understand that, in 2006 world, each people created material wealth to be plundered by more than 10 people.”
Now is 9 years later, the volume of overdeveloped financial economy will be much larger.
1.2…Financial instruments are used to destroy
world economy
Aug. 24, 2014, in the article, Over-heated real estate market is ruining Canadian economy from Japan mirroring Canada, I indicate that:
“People will never forget the 1997 Asian financial crisis that gripped much of East Asia and raised fears of a worldwide economic meltdown due to financial contagion.”
“August 1997, in the article Currency "sabotage" should be an international crime, the writer Martin Khor said that:”
“’Dr. Mahathir said he was disappointed that while certain people championed human rights, the same people allowed those like Soros to undermine the economies of not just countries but regions.’”
"'We have worked 30 to 40 years to develop our countries to this level, but along comes a man with a few billion dollars and who in a period of just two weeks, has undone most of the work we have done. And as a result, the people of our countries suffer.’"
"’The Prime Minister said there was much talk about human rights and the protection of people, but the public ‘must be protected from people like Soros who has so much money and so much power and is totally thoughtless because he is not only hurting the people of Myanmar but the poor people in Indonesia, Malaysia, the Philippines and Thailand. These people suffer because the cost of everything has gone up.’"
“Many lessons lesson us that the financial instruments developed to today, have been powerful enough to achieve an effect as that of a strong military power cannot achieved. Especially, the rapid global mobility of financial capital that is just easily by playing fingers has been boosting such speculative activities.”
Until today, the currency speculation that has caused Asian financial crisis is still not under control. It is still in harming economy.
1.3…The cause of 1928 and 2008 financial
crisis is still in active
In the wake of the 2008 financial crisis and the rise of the Occupy movement, the issue of income inequality has gained public awareness.
2013, American economist, Professor Robert Reich distills the story through the lens of widening income inequality to have presented documentary film Inequality for All. It indicates that income inequality currently at historic highs.
Over the last thirty years, before the latest recession, the U.S. economy doubled. But, these gains went to a very few: the top 1% of earners now take in more than 20% of all income—three times what they did in 1970. Inequality is even more extreme at the very top. The 400 richest Americans now own more wealth than the bottom 150 million combined. While this level of inequality poses a serious risk to all Americans.
Following is the video screenshots from Inequality for All.
The two times economic crashes well match
the peak point of income inequality at in 1928 and 2007. However, this trend
cannot used to predict future trends due to in that period, world suffered World
War II that interrupted normal development of economy.
From the peaks of relative financial wages, we can easily speculate the huge volume of financial economy or paper economy that is buying and selling on the financial markets to make money by money, in nature, the activities of financial economy are plundering real economy - that is actually producing goods and services, which is really relating the needs for human survival.
Due to that the activities of financial economy are speculating with currencies, stocks, and the materials for manufacturing, which will play a role of plundering real economy and also the money that gained in such activities has to be exchanged as material wealth for life survival finally, so that, in essence, those activities in financial markets is grabbing material wealth and is plundering the industrious people who are hard-working on creation of material wealth.
From above three photos, we can also easily speculate that, the two times economic crashes are caused by that wild developed financial economy.
In 1997 – 2007, in the United States, the finance was fastest development part of the American economy.
Follow is the video screenshot from Inequality for All.
In 2009, in the time of absolutely
recession, the 7 highest paid Hedge funds managers were still taking more than
Billions Dollar each.
Until to today, the over-developed financial economy is still not under proper control. It is still in harming economy.
1.4…Real estate is a kind of financial instrument in
harming real economy
In the article, Over-heated real estate market is ruining Canadian economy from Japan mirroring Canada, I also indicate that:
“The real estate is a part of the real economy. However, it is a wand with opposite magic that either can benefit or harm to the economy. In the financial economy over developed today, in most cases, it harm to the economy.”
“On one hand, due to the common sense of the real estate has a hedge against inflation with a better appreciation expectation, so people prefer real estate as a measure against currency devaluation. Therefore, it possesses the potential of attracting investment to drive the development of related industries to play a positive role in promoting economic development, even being taken as the indicator of the economic development.”
“On other hand, the overheated investment on the real estate easily pushes up the housing and land prices, and thus to raise the operating cost of the industrial and commercial businesses, as well as the cost of people's daily life. Therefore, it possesses the potential of deteriorating economic environment to play a negative role of hindering economic development.”
“As the result, in some extent, real estate has been used as a kind of predatory means to plunder on the real economy.”
“If, we allow speculative real estate developing freely, in particular, the involvement of a large number of foreign hot money, is bound to damage the real economy as that of the hurricane to destroy living environment for the industrial and commercial enterprises and the life of the most of the locals.”
“We should not forget the painful lessons that Japan's bubble economy in 1980s and the financial crisis 2008 are both speculative real estate related.”
“Due to the suitable living climate, political and economical stability of the Canadian-based, Vancouver City is favored by the real estate players. The negative impact of overheated real estate on the local economy is more and more prominent.”
“In the morning, Apr. 14, 2014, I read the article <Foreign property buyers restrictions needed> and was moved by the rational views of Mr. Peter Ladner on the overheated Real Estate in Vancouver.”
“In Apr. 2011, he once told CBC News: ‘If our prices are being driven up by people who are simply investing in our community and not living here, there are a whole lot of problems that result.’"
“He worries that prices are forcing people raised in Metro Vancouver to move elsewhere and preventing others from moving to the area.”
“In the interview with David Berner on Shaw cable television, 25 May 2011,Peter Ladner said that:”
"I heard a story, a company wants to expand, they need workers, they cannot find them here, because all the young people here in somewhere else, because they cannot afford for living here. They hire people, recruit people from Toronto and other area, the people take one look at house price and they say that I cannot move here, so now the company in thinking about moving to Waterloo."
"We are declining the number of the companies in head offices in Vancouver. A survey on 60 CEOs about what keeps you from expanding and building the business here, the number one thing is the price of property, which is related. Number two is the shortage of skilled labors, which is also because of the housing cost."
"We also got the widening the Rich and Poor things, to disablize the society. And got cases were who move here, new immigrants, they want to move here work hard, make the way to get whole economic security, cannot happen."
Video: Peter Ladner - Restrictions on Foreign Ownership
https://www.youtube.com/watch?v=Z5SAgli5Yww
“Canada should be built as a place where the decent people can live a decent life through social wealth creation by their talent and hard work, rather than the fairyland for the speculative predators.”
1.5…The biggest social inequality is that rich
individual with poor government
In the article Canada Pension Plan must develop in kind base and as key body of state-owned economy I indicate that:
People hate social inequality and unfair with arguing that the Rich is too rich and the Poor is too poor. But, the tragedy that Greek Pensioner shoots himself to refuse to search for food in garbage revealed that:
“The biggest social inequality is that rich individual with poor government.”
“The biggest social unfair is that a society is in favor of individual rich while government poor.”
“The saddest tragedy is that government of a nation is too poor to provide basic life-support for their national.”
In viewing that in dealing with economic recession, the governments world widely have been continuing in the play the game of monetary quantitative easing and interest rates adjusting, with no actual action for restricting the wild development of the financial economy. We can speculate that the world economy will continue towards recession.
2…The Supply-side economics will lead world
economy recession further
The model of economy divides Demand side economics and Supply-side economics.
Demand side economics is an outgrowth from Keynesian economics, which is contrary to accepted economic theories, a government ought to cut taxes and increase infrastructure spending with fiscal deficit during an economic downturn, and focus on increasing tax revenue during an economic upturn, which may result in an increase in the nominal wages of those who tend to spend the greatest portion of their income on consumables, which results in improved business income and grows the economy.
Supply-side economics argues that economic growth can be most effectively created by investing in capital, and by lowering barriers on the production of goods and services, consumers will then benefit from a greater supply of goods and services at lower prices; furthermore, the investment and expansion of businesses will increase the demand for employees and therefore create jobs. Typical policy recommendations of supply-side economists are lower marginal tax rates and less government regulation.
As my view, that Demand side economics is mainly investment in infrastructure and that Supply-side economics is mainly to create a good living environment for businesses’ operation.
In comparison, though that investment in infrastructure may harmful for the long term economic development, but it really may play a quick role in stimulating economy. And that creates a good living environment for businesses’ operation will be conducive to long term economic development, however, it is a hard systematic process that needs a longer time and comprehensive social reform to achieve its positive role.
In view of that the two big economies – the United States and China is both reviewing its economic development policies, which may lead economy from current Demand side economics turning to Supply-side economics. Especially, that China may put it into practice soon. We can speculate that the world economy will continue towards recession for a while.
2.1…Demand side economics is acting as economic heroin
The main part of demand side economics is the Fiscal Deficit.
Feb. 16, 2014, in the article that Why German Economy Can Fly Against Economic Recession, I indicated that, the outstanding of German economy is from the outstanding of the national governance and corporate management.
“In last century, after the U.S.
President Roosevelt successfully saved the Great
Depression by the means of the
government intervene in the economy, the
most of countries take Keynesian theory, such as, Fiscal
Deficit, as the magic
to stimulate their economy. Now, most of them are
debt-ridden, and some of them become losers with bared
buttocks and broken spine.”
“However,
at that time, rational Germans did not silly go with the flow. May be
that they have foreseen that Keynesian Fiscal Deficit is the economic
heroin with instant excitement, but long-term fatal. So,
they adopts own Freiburg School neoliberal theory that
can sustain for long-term stable development.”
“Now,
nearly 80 years practices have shown that the choice of Germans was smart
prescient.”
“Feb.
9, 2014, in the article The Fed's waning magic in the age of
Yellen,
the writer Edward
Luce
said that: ‘Every chairman of the US Federal Reserve seems to get hit by a
crisis in their first year. Whatever might blindside Janet Yellen, she starts
off with a problem that affected none of her predecessors: the Fed has run out
of ammunition. Moreover the one remaining weapon the Fed thinks it has – the
hocus-pocus of 'forward guidance' – is a gun that fires blanks.’"
“Many
facts show that Fiscal Deficit is not only has lost
its positive effect, but also has become economic heroin, and
the addiction is quick growing in most of countries. Great many countries
have become such drug addicts, if, stop using drugs, they certainly cannot
stand. However, if, continue in drug use, destined to premature death. Now, Fiscal Deficit has become unbearable
economic nuisance.”
“However, those are not the fault
of the great Keynes, but the
fault of the dogmatists of the policy makers due to they are too ignorance to
make a rational judgment independently with a instinct that can only draw a
tiger by copying home-cat, without ability for making a solution according to
the actual objective situation in changing constantly.”
“As
my view, one kind of medicine corresponds to one kind of disease, the disease
has changed, and the good medicine may become deadly poison.”
“Nowadays,
compared with that of formation period of Keynesian theory in before and
after 1930s, the big changes in the economic structure, the large increase in
the economic capacity, the over triple times increase in the
population, and the bestial mad plunder of over-developed Financial Economy to the Real Economy, especially, the rapid
free flow of the large amount of international hot money that large enough to
destroy the economy of a nation, and the access is as easy as that of just a
finger click.”
“International
situation has undergone earth-shaking changes; however, the governments
worldwide are still dogmatically continuing Keynesian economic theory that
developed under old situation and certainly is not suitable for new
problems.”
2.2…It is not faulty of demand side
economics but dogmatic politician
Dec. 28, 2013, I once wrote article The Precious Legacy that Keynes Left to Us with a purpose to reverse confused ideology in economy. I excerpt some as follow.
Talking about Keynes, most people respect his The General Theory of Employment, Interest and Money 1936. For instance, in 1999, Time magazine included Keynes in their list of the 100 most important and influential people of the 20th century with commenting that; "His radical idea that governments should spend money they don't have may have saved capitalism.”
But, I prefer The end of laissez-faire 1926, by which Keynes tries to reverse the ideological confusion.
"These many elements have contributed to the current intellectual bias, the mental make-up, the orthodoxy of the day. The compelling force of many of the original reasons has disappeared but, as usual, the vitality of the conclusions outlasts them.”
"To suggest social action for the public good to the City of London is like discussing the Origin of Species with a bishop sixty years ago. The first reaction is not intellectual, but moral. An orthodoxy is in question, and the more persuasive the arguments the graver the offence. Nevertheless, venturing into the den of the lethargic monster, at any rate I have traced his claims and pedigree so as to show that he has ruled over us rather by hereditary right than by personal merit.”
He knew that people accustomed to conservative in ideological is the major resistance for impacting on the progress of human society, so he continued:
"The next step forward must come, not from political agitation or premature experiments, but from thought. We need by an effort of the mind to elucidate our own feelings. At present our sympathy and our judgement are liable to be on different sides, which is a painful and paralysing state of mind. In the field of action reformers will not be successful until they can steadily pursue a clear and definite object with their intellects and their feelings in tune."
The way of his bold but sensible questioning about orthodoxy with advancing ideological could help us to advance the way of our thinking, and avoid to fall into the trap of dogmatism, it is the prerequisite to do anything correctly.
The world is in constantly developing, the objective conditions are constantly to be changed, and the nature of the problems will be changed, too. Only boldly breaking the restraints of old ideological frame, the horizons of vision is able to be expanded, the new innovative ideas can be find, the innovation is able coming true, so that, when facing new problems, we can quickly identify specific new solutions.
This the Precious Legacy that John Maynard Keynes Left to Us.
2.3…Germans become savior for those victims
of demand
side economics
In the article
that Why German Economy Can Fly Against Economic Recession, I also
indicate that:
“We
are aware that, the Fiscal Deficit has caused the European Sovereign Debt Crisis, and the Freiburg School neoliberal theory helps industrious
Germans playing a role as that of the savior for those European losers under Sovereign Debt Crisis.”
“Facing
new social and economic issues, in 2003, Germans timely develop new solution Agenda 2010 with aimed at reforming
the German social system and labour market to improve economic growth and thus
reduce unemployment.”
“Of course, Germans is success
again with new economic miracle.”
“Mar. 19, 2012, Thomas Schulz
published article 'We
Need To Learn from Germany': How the German Economy Became a Model?”
“’It wasn't so long ago that many
viewed Germany's economic model as outdated and the country as the "sick
man of Europe." These days, however, even the Americans have come to
praise parts of it, though they still doubt whether they would be able -- or
willing -- to adopt it wholesale.’”
“Googling, you will find a
lot such reports of recognition.”
Now turns back the topic of this article.
3…New Govt. Canada will be going on demand
side economics
The Throne Speech 2015 Delivered By Gov. gen. David Johnston indicates that “recognizing that public investment is needed to create and support economic growth, job creation and economic prosperity, the government will make significant new investments in public transit, green infrastructure, and social infrastructure.”
It is clear that new government of Canada will carry out the Demand side economics, a economic policy that the U.S. and China are considering to abandon.
As my view, the new government seems to have not realized the fatal weaknesses of Canadian economy – extreme low productivity.
4…The fatal weaknesses of Canadian
economy – low productivity
Nov. 16, 2014, in the article Gregor Robertson a rational Mayor of Vancouver City, I have discussed the low productivity in Canada. I excerpt some as follow.
June 5, 2013, the article that A Canadian magic trick: wages that rise even if productivity doesn’t say with that:
“If you spend any time reading about the Canadian economy, you have inevitably come across the Great Canadian Productivity Puzzle. Canada’s productivity is much lower than that of other countries, and we don’t really know why. Neither do we seem to be able to fix the problem. Policymakers have used every trick in the book to try to boost productivity, but the results have disappointed.”
“Canadian productivity growth has stagnated since at least 2002. You’d think Canadian incomes would also have stagnated, but they haven’t. There’s another piece that has to be added to the productivity-income puzzle.’
“Canadian labor productivity growth has been lagging that in the U.S.”
“Oct. 1, 2012, the article that Canada’s productivity lags U.S. in ‘virtually every instance': Deloitte said with that:”
“Canada’s economy and ability to compete internationally is being hampered by its businesses’ inability to sustain growth over the long-term, says a report released Monday by consulting firm Deloitte.”
"The study shows Canada’s productivity lags behind that of the United States in “virtually every instance,” including those industries that have been the cornerstone of Canada’s economy for decades — mining, oil and gas, financial services and manufacturing. The manufacturing sector was called out as a particularly poor performer, noting that U.S. productivity in the manufacturing has grown at a rate six times faster than that of Canada since 2000.”
4.1…German immigrant was shocked by lax
office culture of Canada
Followed the Oct. 1, 2012 article that Canada’s productivity lags U.S. in ‘virtually every instance': Deloitte, there is a comment that seems touched the true nature of low productivity in Canada.
Bernard comment in 2 years ago: “being an immigrant from Germany I can tell you my perspective of lacking productivity in Canada: looking around in the office I see people dropping in sometimes between 9 and 10 am. Not much later they are off for a coffee break. Then there is lunch break and another coffee break. Leaving around 4pm, because there is some important fishing or hunting or other outdoor stuff on the agenda.”
“Any more questions about productivity?”
“I mean, I really appreciate work-life balance. But what I experience is overdone.”
My disappointing experience on lax work in government agency.
After read above comment, I think of a few years ago in Toronto, a government agency; there a lot of people were waiting in line. From the perspective of the number of idle chairs in office, there should be a lot of people who were work here, but only there two staff were servicing for the customers. There are other two staff finally came, the people who were waiting in line were pleased for that was able to speed up. However, the two came-in staff has not sat down yet; the original two staff in working immediately got up and left away.
Long time waits in the government agencies seems a common matter in Canada, which is not due to short in manpower, but only due to the poor work ethic.
The government agencies are the part of the State Apparatus, we have enough reason to question that such a State Apparatus is in properly running?
4.2. Wrongful social governance
causes low productivity
In Jun. 25, 2013, article that My view on Entrepreneur and Enterprise inspired by Peter Shoore, I discussed this issue. I excerpt some as follow.
The Entrepreneurs run Enterprises to create job position for citizen livehood-making and revenue for social governing, from this point of view, the Entrepreneurs are the best civil servants, and the communists in reality.
However, historically, in worldwide, it has been lacking of concerning and supporting for Entrepreneurs, even, until now, there great many people are with hostile attitude toward them. The law seems to have ignored this group also, but tended to protect employees without updating of the outdated concept from the times of Industrial Revolution with ignoring that modern society has provided thoughtful social welfare and comprehensive legal protection.
The outdated ideology and practice has badly affected the work ethic of employees and to have made Enterprises difficult for managing, even, encouraging some mindless employees' pranks boldly in the workplace without the fear of being punished. It not only badly affecting the production efficiency, but more terrible, it even caused the closure of some Enterprises.
4.3…It is that poor management causes
businesses decline
For the economic downturn in Canada, many social elite, even most of officials are over-emphasizing the macroeconomic environment, while ignoring the main economic microscopic cells - business survival.
In fact, there many businesses with good products and stable customers were closed only due to poor management without direct relation with macroeconomic environment at all.
I have been concerning about the economic issues of Canada. In the past 13 years I intended work in different type of enterprises of Canada with a terrible experiences that most of them were poor managed, and even shrouding with absurd ideological with poor corporate culture, some employees, even some management personnel are lack of the sense of responsibility, and even makes vandalism in workplace, they boldly make nonsense without worry about being punished. It is not only resulting in production inefficiency, but also caused many enterprises' closure.
4.4…The bad corporate
culture forced good manufacturer NCR moved to Mexico
Feb. 09, 2014, in the article Management is the Art of Playing Human Nature, I once cite an example that an Mindless Employee made a Company Closed. I excerpt as follow.
I once worked in the final section of a production line in a machine assemble Company NCR that located in Waterloo Ontario with 1300 employee, which was a branch of a transnational company headquartered in the U.S. in manufacturing machines of banking and cashing with a good work environment.
When I newly work there was with 6 people to assemble machines. My job is installation of electrical wires and switches on the empty case-frame, and then other people install the parts insides and make final testing for sending to customers.
In my team, there was a gentleman Jim who was in a very good appearance with good personal civilized, but he was supervising others to slow down their work with smile.
After first hour of my first day’s
work, Jim friendly told me that: “my friend, please do not work too hard like
this; you may go to washroom to have a rest, or go to other work station to
talk with friends. Any way, you should slow down the work.” Then, I noticed
that other people were talking and joking with parts holding on hands, but did
not put on machine. Due to that my team was in the final section, thus, the
production capacity of whole production line has lowered 50% around.
Compared with other Companies, that DEF has occupied the top
of the supply chain with welcomed end products, it certainly has greater profit
margins supported by an enviable team of skilled technicians and operators. So
that it should be running better and sustainable. However, it moved to Mexico
before outbreak of Financial Crisis 2008. Jim and other 1300 people lost high
quality jobs – good paid with good work environment, which is that Prime
Minister Stephen Harper has been striving for hardly.
The jobs of our team were assembling Cashier Machine with the parts that finished by the teams in the top of the production line. This kind of jobs was similar as that of assembling a big computer, it was not heavy physically and could not work fast also. I am still wondering that why Jim did that? His behavior was no any interest for himself or any others? If it was not what I had seen, I would never believe that was true.
About half a year later, after the DEF Company was shut down, in a supermarket, I met Jim, at that time, he was looking for a new job after worked a couple of months in a job agency. I felt sadness when talking with him; he was enjoying the bitter fruit that himself planted. Viewing from social perspective, he made a big trouble for other 1300 colleagues and their families.
The mindless employees as that of Jim are common in Canadian businesses, their boldly pranks greatly reduce the productivity; it also can cause business failures indirectly. such as the supervisor John that introduced in my article Family Business and Management Board.
People might ask that, why no management person stops their ridiculous behavior? Why do not fire them? The answer is not as simple as that of people's common sense.
4.4.1…A NCR’s supervisor dared not supervise in
work and had to dodge 2 weeks every year
Before NCR moved to Mexico, every year before Christmas, it has to recruit a lot of temporary workers to complete the backlog of the orders
One day, the Supervisor who took charge of my team told me that he will leave for vacation about two weeks. At first, I was very surprised and even doubted whether I misheard what he said, or he was joking.
Since that the production was so busy with so much new temporary workers, as a Supervisor who takes the main management responsibility, why, at this juncture to leave for vacation?
A few days later, I went to work, my team colleagues asked me that: did you watch the TV this morning, in other department, the night shift temporary workers collectively made trouble, even to have smashed some equipments after learnt that they was laid off.
Some people might doubt that how did this happen?
A few years later after the NCR moved out, I talked with an acquaintance who once worked in NCR Waterloo, to have known that, in the NCR, the payment will be more than $14 per hour after hired as full-time employee, which is much higher than that of any other companies at around $10 per hour.
Now, we would realize the reason that Supervisor left for vacation in the busy juncture. He was to dodge for avoiding trouble. Also, we may easily imagine that the Supervisor leaving for vacation might become routine manner at the busy juncture in before Christmas every year.
It is really an incredible matter. A Supervisor as middle management in a legitimate multinational company, his work should be aboveboard and dignified; however, he had to act as that of criminal to dodge some time every year, but conversely, the criminal manners of those workplace troublemakers were acting as aboveboard and dignified, there no one dared inhibit them. This might be the most absurd thing in the world.
It is simply as that of the sky and the earth has been swapped the position.
Indeed, the supervisor never says anything for that Jim slow down the work. He seemed have never taken his supervising responsibility besides hard work as a general operator.
Now, we can see the reason of the difficult of the corporate management.
If you ask common citizen of Waterloo city, maybe there is no one remembers the news on local TV about the mob event that happened in NCR Waterloo years ago. As common citizen, they would not concern the important to keep a local enterprise health running. But if you ask the officials of Waterloo city, they will clearly remember that, because that they had made every effort for the stay of NCR, but failed.
We need a powerful measures to prevent such sadness playing continuously.
For this point, the ISO standards will play a perfect role.
5…The success of Germany reflects
the weakness of Canada
I know that I blame the decline of Canadian businesses to the wrongful governance would hurt or even enrage some people, please look at my Oct. 26, 2014 article How to revive Canada's non-energy manufacturing? In which I take Germany as example, I excerpt some as follow.
The inspiration from the success of Germany
Nov. 4, 2014, after read Sep 30, 2014 article Germany’s Trade Surplus and Exports Reach All-Time Highs, I wrote an article Smart German created a economic model for Canadian to follow, in which I indicate with that “2008 financial crisis and the European sovereign debt crisis caused economic recession and great many officials complain that downturn of world economy drags down their national economy, but, the economy of Germany has been in better developing with creation of a new record in both employment and economy to outshine others.
Canada and Germany are both the countries of relatively affluence. However, the ways for getting the affluence are fundamentally different.
Canada: vast incredible wealth of natural resources of contributes significantly to national economy. Resource industries play a critical role in delivering jobs, growth and prosperity for Canadians.
Germany: relatively few domestic natural resources, imports most of its raw materials, the most crude oil and petroleum products are imported.
It is clear that affluence of Canada is mainly depended on the vast incredible wealth of natural resources; the Canadian dollar is even viewed as a petrocurrency. But the Germany has to mainly depend on the hard work to continuously manufacture popular products – the outstanding Made in Germany.
In Feb. 16, 2014 article that Why German Economy Can Fly Against Economic Recession, I indicated that, the outstanding of German economy is from the outstanding of the national governance and corporate management.
There many wise practices in Germany are incredible for any people from other countries. Such as, that salary of the boards member is lower two grade than that of general workers, while many countries increased the minimum wages, but Germany lifted the restriction on wages to have boosted employment historical high with the increase of the businesses and jobs in lower payment.
The Agenda 2010 was painful and unpopular reforms on German social system and labor market to have paved foundation for Germany's economy regaining the vitality from the Sick Man of Europe.
In the same nation with the same national, only by improved governing policy, Germany achieved brand new look. The achievement lessons us that objective economic environment are not the main cause of the economic downturn. The key is that the government how to wisely play own governing role to well play of the internal potential.
According to my observation and study, that what Germans can achieved, Canadians can surely be able to achieve. Also Canada has unique advantage of Natural Resources that Germany never has.
This is what I have confidence for reviving Canada's manufacturing.
6. The strategy for Canada with world economy
continues towards recession
6.1…Legislation by copying ISO standards
and Amoeba Management
For improving poor management, government must legislate defined regulations by combining use of advantages of ISO standards – defined accountability in daily operation and Ameoba Management – defined accountability in cost and profit. Such regulations will play a role as putting responsible tags on forehead of each member, so that we can exactly execute punishment or award, and to kick out mental defectives.
In Canada, we can improve efficiency 10 to 50 percent without extra spending by optimal organizational re-structure, the defined regulations and payment linked with work performance.
6.1.1…The inspiration
of 3M Canada Saves Energy 30% by ISO50001
In the article Management is the Art of Playing Human Nature I once discussed the significance of 3M Canada saves Energy 30% by ISO50001. I excerpt some as follow.
March 13, 2013, the Canadian Manufacturing Online published the report of <Power play>, said that 3M Canada saves Energy 30% by ISO50001.
The achievement was great, but the process was unexpected simple: “We try to treat the plant as we would our homes. If we leave a room, we turn off the lights and shut down equipment when it’s not being used.”
There were reports taking the energy save 30% in 3M Canada as a proud achievement. However, I would like to question that, by the same group of people with the same equipments in the same place, why they could not effectively save the energy similarly before the implementation of ISO50001 standards?
Why they could not treat the plant as that of in own homes to turn off the lights and shut down the equipment when it’s not being used before the implementation of ISO50001 standards?
The achievement of energy saving is also reflecting the CHAOS in the management of 3M Canada. It is common in many Canadian enterprises, which is one of the reasons of the mid-sized firms is declining. It is not my surmising boast at all. It is the terrible facts of my personal observation and experience in the enterprises of Canada.
I think that the corporate management may be the most intricate and most grueling tasks, since it has to deal with the labors – human beings who are with the brain that can act of their own accord.
If there was no mandatory of the ISO50001 standard to strictly enforce the staff as that of the law enforcing social members, only relying on their management team and their own developed management rules, 3M Canada would never get such an achievement.
The experience of 3M Canada in energy saving has a significant role of providing us a direction for reversing the state of CHAOS, which is to copy the model of ISO50001 standard to optimize our firms’ management.
We are clear that, in the business running, there are many management aspects besides energy saving with the plenty of room for cost-saving improvement. We can imagine that, if 3M Canada improves efficiency by 30% in all of their management aspects, then, see, what will happen? If we all firms in Canada are able to improve the efficiency by 30%, and then, see, what it will happen?
The CHAOS in the management of 3M Canada before the implementation of ISO50001 standards was also caused by the bad effect of the Crowd Psychology.
The report said that, according to the requirements of ISO50001 standard, 3M Canada has developed a roles and responsibilities matrix to identify workforce needs to support the system, in which making plant manager accountable for the entire system and all operators and supervisors have defined roles to support the system and make sure it works.
I think that, in essence, that made a roles and responsibilities matrix is to put the responsible label on the forehead of each individual. It is the key for the success.
Because, only in this way, 3M Canada can enforce those irrational staff who have no rational sense doing a rational job to have to do a rational job, and to provide a reason for those rational staff to do rational job happily without worry about.
The worry about is induced by the Crowd Psychology.
According to the common sense from our daily life, we may easily imagine that, in 3M Canada, before the implementation of ISO50001, it was not that the employees and management staff did not see the facts of energy wasting, also it was not that nobody wanted to change the status quo, but it was that no one dared to do so. It caused by the harmful effect of Crowd Psychology.
As general employees, they were afraid to draw fire against themselves, and as management staff they were afraid to draw fire against themselves with legal proceedings, or even personal revenge.
This social phenomenon is a common behavior of mankind or may call it as common sick due to it harm to community, and as long as people grouping, it will inevitably take it bad effect.
It also is the reason that Jim in NCR Company could play a severe bad role without any people dared to inhibit.
These ordinary human crowd relations, we clearly knew not correct, but it is taking for granted, to be involuntarily and carefully observed. It seemingly is normal since that every one has to act as that. In fact, it is very absurd with a very bad effect to make daily operation of enterprise into a bad trap, in which many people are aware that lot things urgently need to do, but no one dare do. It causes production inefficiencies, or even causing enterprise bankruptcy, thus causing the loss of job, the loss of tax revenue. It is hazardous to the economy and our normal life of ordinary people.
Now, we can see the essence of the management: it is the art of playing human nature pestered with Crowd Psychology.
Besides above absurd interpersonal relations caused by Crowd Psychology, for some enterprise of Canada, there is an even worse phenomenon that is without proper regulations to regulate the daily operation.
We must find a proper approach to save enterprises from being closed by those mindless behaviors of those mindless people, thus, to save Canadian Firms from declining and save the job for those mindless people.
The achievement of 3M Canada saves Energy 30% by ISO50001 has provided us a useful inspiration for improving our corporate management.
美国和中国允许民间资本投资新创企业。
How to revive Canada's non-energy manufacturing?a
Z Management is the Art of Playing Human Naturez
NCR moved to Mexico
Free Trade is damaging Agriculture:
