Why capitalists should support the European Union

Like most Canadians, I favour the European Union and have a negative opinion of Brexit. According to a poll by Carleton University, 75 per cent of Canadians have positive or somewhat positive opinion of the E.U. and 64 per cent are unsympathetic or somewhat unsympathetic of Brexit.

European Union flag. Image: Vector illustration.

Curiously, Canadian views are partisan. More Conservatives are sympathetic of Brexit than Liberals and New Democrats (46, 13, and 8 per cent, respectively). What’s odd about Conservative sympathy is that Brexit will hurt the flow of British capital.

Equally odd is support for Brexit by Britain’s Tory Party, the traditional party of capital.  Neil Davidson, author and professor at the University of Glasgow, explains:

“The Tory Party is not acting in the interests of British capital in pushing through Brexit. This dereliction of its duty is the result of how ruling-class parties have evolved in the neoliberal era (Harper’s, October, 2019).”

This is further evidence of the shift in conservative values towards populism. The Republican Party in the U.S. no longer has capitalism as a core value, rather it owes fealty to a reckless madcap leader who supporters see as maverick. Britain’s Boris Johnson has the same eccentric appeal.

Here’s why rational conservatives should support the European Union:

“Given the illusions many on the left have about the E.U., it’s ironic that its structure corresponds quite closely to the model of ‘interstate federalism’ devised by the economist Friedrich A. Hayek in 1939,” says Davidson. “Hayek, in many ways the intellectual forerunner of neoliberalism, proposed that economic activity in a federal Europe should be governed by a set of nonnegotiable rules presided over by a group of unelected bureaucrats, without any elected members of government and irrational voters getting in the way,”

British capitalists have always been in favour of the E.U. as a replacement for their colonies. As the British Empire imploded and colonies became self-governing and resistant to exploitation, British capital sought new opportunities for investment and found them right next door.

Not only Britain, but capitalists in Germany and France looked within Europe itself for opportunities. Global capital needed outlets for investment beyond the boundaries of individual states. At a time when decolonization across the Global South reduced slavery as a source of cheap labour, the E.U. provided a means for capitalism within Western Europe.

Contrary to my impression of the E.U. as being a foil to the rising U.S. military industrial complex, the E.U. benefited the U.S. as well. The E.U. was a political and economic complement to the NATO military alliance in Europe, part of Washington’s Cold War imperial project.

The global economic crisis in 2008 exposed the structural inequalities of the E.U. as not a union of equals. Germany imposed austerity measures on weaker states, throwing countries such as Greece into depressions.

The E.U. is a model of globalization in which “free trade” is the advertised objective but the imposition of non-trade clauses, such as copyright and protection of Big Pharma patents, is a primary goal.

The E.U. is more undemocratic than any of the nation-states that compose it, including Britain. Its least democratic institutions such as the European Commission and the European Global Central Bank have the most power while the nominally democratic European Parliament has the least. It’s a undemocratic institution designed to prevent social democrats from infringing on the logic of capital in Europe.

Brexit will diminish the power of capitalism as we move into an era of populism and protectionism characterized by the Trump administration.

My hope is that organic movements, such as climate activism, will rise to restore sanity in resolving the greatest threat to humanity.

Satellites make good neighbours

A lot of fuss is being made of the Apollo 11 landing of a man on the moon one-half century ago but not so much about Canada’s launch of the Alouette 1 at the same time. Canada was a leader in space -the third in the world to launch a satellite.

Alouette 1. Image: National Post

And Canada was the first to launch a satellite in 1972 that would allow television broadcasts to be broadcast from coast-to-coast-to coast: the Anik A1.

Anik A1 personally affected me. As a microwave technician, I worked on microwave stations that used to be to only way to get signals across Canada. Now the microwave system had been made redundant by the Anik A1.

As more countries launched satellites, their use expanded beyond communication to rescue. This capability is especially important for countries in the Arctic Circle like Canada where populations are sparse and the environment harsh.

Canada, France, the U.S. and Soviet Union cooperated to pool the resources of dozens of satellites. The first rescue took place in 1982 in northern B.C. just weeks after the Soviet Union launched COSPAS-1.

With the belligerence of the current U.S. administration, it’s hard to imagine that they could cooperate on anything.  But the original agreement, forged when tensions with the USSR were high, is still in force. Michael Byers, Canada Research Chair in Global Politics and International Law at UBC, says:

“Yet, satellites-based search and rescue exists only because of a remarkable exercise in Cold-War co-operation (Globe and Mail, July 27, 2019).”

After the Cold War ended, co-operation continued with joint military exercises between Arctic countries. One, called Vigilant Eagle, had U.S., Russian, and Canadian jets responding to a mock hijacking of a commercial aircraft.

After a South Korean fishing trawler sank on the Russian side of the Bering Sea in 2014, Russia requested help from the U.S. Coast guard which sent help immediately.

Russia has been a major contributor to the International Space Station and last month, Canadian astronaut David Saint-Jacques returned from the station in a Russian Soyuz capsule.

Despite tensions with China, the Chinese tech giant Huawei is working in partnership with Canadian internet providers to launch satellites to improve connectivity in Canada’s north. Without the new satellites, two million Canadians in Arctic communities don’t have reliable high-speed internet.

Unlike the old technology, the new satellites will be placed in a much lower orbit. Traditional satellites have two problems. One is the low bandwidth because of the curvature of the Earth. The other is “latency,” that’s the delay in getting signals to and from the satellite. You may have noticed it in TV broadcasts where the foreign correspondent stands in silence after being asked a question –they are waiting for signals to bounce around the globe.

The Trudeau government recently announced that it is investing $85 million to build a Low Earth Orbit constellation of 120 satellites in Canada’s north. At only 1,000 kilometres above the ground, latency is not a problem and since the satellites can be networked, bandwidth is as good as optical fibre.

It’s a good investment, not only because it connects Canada’s rapidly warming North with the rest of the country but because the sale of high-speed internet service a lucrative business.