If you weren’t convinced by part one … well, here’s part two. It should do the trick.
Team Advantage discusses the last half of Ralph Klein’s reign, which includes deregulating electricity, foot-dragging on LGBTQ rights, drunkenly yelling at unhoused people, dinosaur farts, I HEART ALBERTA BEEF, pie-throwing, “paid in full,” misogynistic jokes, Ralph Bucks, the flat tax, and more!
Ralph Klein: I would side with Rob.
[unknown]: So
how many Ralph Bucks does he get?
Ralph: 300.
[unknown]: 300?
[laughter]
[cash register noise]
Ralph: And Lisa gets 200, and Rick gets 200.
[cash register noise]
Ralph: But, from my point of view, the environmentalists are winning.
[intro music begins]
Kate: The Alberta Advantage is a bi-monthly political commentary podcast that offers analysis on Calgarian and Albertan politics from a left-wing perspective.
[intro music ends]
Stephen: Hi everyone, and welcome to the Alberta Advantage podcast. Today we’ll talk about the latter half of Ralph Klein’s government. An episode had come out of where the first years of his reign were covered, so we’ll be talking about the late period era of Ralph Klein. My name is Stephen Magusiak, and around the table today with Team Advantage we have:
Karen: Karen.
Bodie: Bodie.
Patrick: Patrick.
Kate: And I’m Kate. Welcome, folks.
Alright, let’s just jump right in. I’m so ready to be mad about Ralph Klein
again. The first Ralph Klein episode raised my blood pressure a lot, I had a
lot of very serious medical issues because of how mad I was, and I’m excited to
do it again.
Stephen: I’m looking forward to it because I grew up in late-period Ralph, kind of politically came of age. I don’t know if anyone else —
Patrick: I grew
up during these exact years, the latter half of the Ralph Klein era. So my
whole political identity was just being forged as this crazy stuff was going
on. And I kind of had a sense that, “This is not normal, this is not how the
rest of the country carries on, there is something a little bit weird about our
government here.”
Stephen: And you also know the
despair, just feeling like this is never going to change, this is just how
Alberta will be run forever. You can literally run a campaign based on nothing,
win a majority government with zero mandate to do anything, and people just eat
it up, even if it gets like 12% of eligible voters; this is just an unbreakable
cycle, the PC government.
Patrick: Yeah, it was absolutely
stunning. You’d read about how politics carried out all around the world —
people fighting for things they really cared about — and then there was
politics in Alberta, where every three or four years we’d have an election,
people showed up and voted for the same party. For 43, 44 years. And there
didn’t seem to be anything to vote for, and no one seemed to be interested in
voting against, and it just kept happening, and I could not explain it. It was
just this incredible, weird wrinkle in the whole continent, really.
Kate: So, for this second half of
Ralph Klein — the later days of Klein, no longer young Klein — we’re going to
be looking at a historical period that is roughly from the year 2000, so the
turn of the millenium, to about 2006. And there is a lot to go over, so, I
mean, let’s dive right in with the Taxpayer Protection Act.
Patrick: [sighs] This is the dumbest
shit. All I’ve got to say about this. So the Taxpayer Protection Act, Act that
the Klein PCs introduced in 2000, and basically the idea is that you must hold
a referendum if the province wants to implement a sales tax. Alberta being the
one province in the whole country that does not have a sales tax; all part of
the Alberta Advantage, as it were. And yes, I mean, technically this is binding
of the government, but it’s not ever going to be binding on a majority
government, right? If a government really wanted to raise the sales tax—
Kate: They could repeal the Act first.
Patrick: —yeah,
you could probably do that in the same Act, right? You know, pass an Act that
repeals the requirement to have a referendum and then implements a sales tax
all in the same shot. And there’s other stuff like this on the books in Alberta
as well, it’s just nonsense. But very, very popular. “Ralph Klein gonna raise
your taxes! All right, then!”
Kate: My favourite part of it in
contemporary terms is that Jason Kenney recently tried to claim credit for this
Act even though he was an MP at the time and would have been in Ottawa and
would have had nothing to do with it. So that’s just some classic Jason Kenney
for ya, I think, with a little bit of that Ralph Klein era in it.
Stephen: Kenney is relying very
heavily on capitalizing off this legacy that we’re going to be going over
today.
Kate: The thing with this, though,
that I want to go into a little bit, is I actually don’t think Alberta should
have a sales tax; I’m not particularly keen on one, because they’re a very
regressive form of taxes. It’s a very kind of centrist, middle-of-the-way,
wonkish sort of policy solution. I mean, on one hand, it is a very stable
source of revenue for the government, but on the other hand, it’s a very
regressive tax, and it hits low-income and working-class people the hardest.
Patrick: I agree completely. And I
mean, at the federal level in Canada, we have mechanisms that are supposed to
adjust for this — there’s a bunch of things that the federal sales tax doesn’t
apply to, and you can get your GST rebate if you don’t make a lot of money —
but it adds bureaucracy, it costs money, there’s a layer of bureaucracy in
between people getting this tax rebate, if you’re extremely disadvantaged and
you’re not filing a tax return regularly, you might not even know that there
are these dollars available for you. So there’s a layer of bureaucracy that you
can just eliminate by just not having this thing, as well.
Kate: Yeah, and just tax rich
people.
Patrick: Yes,
exactly!
Kate: You know, rich people should
just pay more money in corporate and income tax, and I shouldn’t have to pay, I
don’t know, an extra sales tax when I buy candy bars at the grocery store.
Kate: Yeah,
it’s pretty much the only area of tax where it is more affordable to live in
Alberta versus the rest of the country, because the income tax is, of course,
higher. And we’ll get into that. But it’s nice to just go to the grocery store,
buy something, and it’s not an extra expense that you’re not accounting for.
Patrick: I know that Public Interest
Alberta has been pushing for one, pushing for Alberta just to have a penny
provincial sales tax, but honestly, I think a more graduated income tax — so,
higher income taxes for very wealthy people and possibly also other forms of
land tax or other taxing wealth, ways of ensuring that the most well-off are
doing the most to support our society — that’s the way to go.
Kate: Yeah, I think that’s a really key distinction that I like a lot, is this idea of taxing wealth, because not all taxes are created equal, and you should be taxing, basically, capital, right? Not just taxing everyone with the same brush. And that’s, of course, that Klein-style political theatre relies on people not drawing distinctions between those different types of tax. Like, all tax is bad. It’s bad when your kid has to pay PST on the slurpee at 7-11, but it’s also bad when millionaires have to pay land tax on the land they’re plundering for its natural resources.
Patrick: So we started off with something that Ralph Klein did that we’re actually basically positive about. Are your heads spinning yet?
[laughter]
Kate: So,
electricity deregulation. Klein begins deregulating electricity in 1998 and, as
deregulation approached in late the year 2000, power prices literally soar. So
at first you get these $20/month rebates to consumers until about 2020, but
power prices actually doubled in the first year prior to deregulation coming
into effect. So if your power bill is doubling, getting that $20/month rebate
is basically a drop in the pond of increased profits for these massive, massive
electricity companies. And it’s also worth pointing out that that $20/month
rebate comes out of public money that could be better used to spend on other
things like hospitals and schools and roads, and then maybe the government
could use its legislative power to, I don’t fucking know, regulate the market.
It’s just this weird circular logic of how public money is used.
Stephen: People are so comfortable
with being ripped off by the private sector through service fees and through
collusion scandals and that sort of thing, but if it’s a tax, like a $13 carbon
tax, it’s outrageous. But if it’s an extra $92 on the bill, then…
Bodie: Well, my question is — like you said, when these electricity prices were soaring, what was the right wing demagoguery — how were they justifying this?
Patrick: They would be justifying it something to the effect of, “The private sector can do this more efficiently than the public sector can.” And that’s always been the public rationale that will be floated around for this sort of thing, but the real, actual rationale is that these things are valuable, this is some valuable real estate that you possess in a regulated system that can be privatized, can be sold off, can be operated on terms that are more friendly to people making lots of money. Because there’s an incentive to run it that way, they have an incentive to get their claws into legislatures and make it so.
Kate: I
think one of the interesting things about this for me is, because of that
neoliberal turn of the 70s and 80s, a lot of people feel more comfortable with
things being in the hands of the private sector, is because they feel like they
have more access to companies than to the government. Right? Like, you can call
up a customer service representative who is technically responsible for your
power bill and yell at them, and it’s probably some poor young woman working in
a call center, but people don’t feel like they have that same access to their
government, nor do they really feel that they have the same license to treat
their government in that way, or to demand those things of them. So I think
there’s almost this sort of weird cultural access piece with things being
handled at the private sector, not just efficiency. Even right-wing groups like
the Canadian Federation of Independent Businesses are against electricity
deregulation at the time because it’s seen as being this unfair burden on small
businesses, who are dealing with these soaring energy costs. And by 2003 — so
we’re a couple years into energy deregulation — community halls, ice areas,
curling rinks, a lot of them were facing shutdown because they had power bills
that had tripled or quadrupled. So, clearly, the market hadn’t, you know,
settled out into this magical equilibrium point over years of electricity
deregulation. Companies had just taken advantage of deregulation to gouge
consumers, like they always do.
Patrick: One of the other
consequences that comes with deregulation is that the public loses control over
decisions that are made in terms of building up the power grid, too. And this
was kind of brought to a head when the current government decided that they
were going to start phasing out coal. Well, because there was no government
influence over what kinds of power plants were being built, we kept building
coal power plants right into this millenium, much later than we should have.
The most recent coal power plant that opened in Alberta was in 2011. And these
are facilities that have a 40 to 50 year lifespan; you build these things,
you’re locked into this infrastructure. And basically, what’s happening now is
the government is paying these people to shut their plants down early,
effectively.
Kate: It ends up being this huge
waste of public money, because then the government has to basically deal with
private companies rather than, if we just owned it all and regulated it all in
the first place, you wouldn’t have to spend all this money doing business with
people who shouldn’t even be in the picture to begin with.
Patrick: Yeah, and you lose the
power to make decisions about it too, right? If you want to run a greener power
grid, then, well, that’s kind of a political decision; you make that on a level
that is above the market, right?
Kate: Yeah, and these electricity
companies are accountable to no one but their shareholders, right? They’re not
accountable to us. They don’t care what my power bill is like. They don’t care
what kind of planet we live on. They want to make money for their shareholders.
One of the things I’d also like to discuss a little bit about energy
de-regulation is actually the shutting off of power plants and manipulating
power prices, because recently-ish — so about three years ago, in 2015 —
TransAlta actually paid a $56,000,000 settlement to the province for
manipulating power prices and insider trading in 2010. So, basically, what they
were doing is they were shutting down power plants at peak periods, and that’s
something that was only possible because of this deregulation of the Klein era.
Karen: Mhm. I
guess they would refer to them as “brownouts;” so it’s, like, the hottest day
of summer and everyone’s using their AC unit, and then everybody loses their
power, and it’s not the weather, there’s no reason people can understand, but
it’s the market mysteriously working.
Stephen: One of them had apparently
happened during the Calgary Stampede on a 30 degree day when people were on the
Sky Ride, so people were stuck on the Sky Ride, just dangling there for two
hours.
Kate: You know what I always say: I
love how efficiently the private sector allocates goods and resources.
Stephen: Yeah. I love how the
conspiracies just happen in plain sight.
Kate: Ralph Klein did a lot of this.
We went over it in our first episode. He fucked with public utilities a lot;
like, things that, by all rights, should be ours, should be publicly owned by
the people of Alberta, because those are services that are essential for life
in this province. And, oftentimes, they are created through our labour and our
natural resources. And it’s just so disgusting to me that Ralph Klein basically
chopped them up and sold them off to the highest bidder, and then turned around
and made us pay for it. It’s just absolutely sickening.
Stephen: Basically, it’s like
Uber-style surge pricing, but with electricity. That’s what happened, right?
Patrick: Except it’s even worse than
that, because it’s like if you’re Uber, but you can decide how many cars are on
the road, you can decide to cut the number of cars on the road in half, so that
the prices go right through the roof. TransAlta, electricity company, paid 56
million dollars in a settlement to the province, but Edmonton Journal, at the
time, reported that the market impact was somewhere between 40 million and 160
million dollars, and this doesn’t — whatever math they were using to compute
this didn’t include the full impact that it would’ve had on the power market.
So they may have still made a hundred million bucks in profit off of messing
with power plants, off of turning them off at inopportune times. And this was
done through deregulation. That is a serious chunk of coin that —
Kate: — that
they stole from us, and then they used that money to keep getting their buddies
elected into government. Like, people wonder why we had a PC government for 44
years; it’s because they kept selling off our public utilities, and then the people
they sold them to then, all of a sudden, have this money, and they owe a favour
to their friends in government.
Patrick: And there is evidence, here
and there, of an executive here meeting with an MLA or a minister there and
getting terms, getting bits and pieces in place that really help them to do
what they’ve done. So, we’re not all sitting in a room wearing tinfoil hats,
there is actually a paper trail.
Karen: We
have facts!
Patrick: So the last two things I’ll
say about electricity deregulation — it’s actually a very rare thing, Alberta
is one of the very few jurisdictions in North America, or anywhere in the
world, that has a completely deregulated market, one of the others being
California. And TransAlta, the same power company, paid 149 million dollars to
California Public Utilities for its role in manipulating electricity prices
down in the States — 2000, 2001. And this was in the middle of an electricity
crisis that was going on at the time. And one last little bit of good news as
far as electricity goes — the Notley government is finally taking some steps to
start reversing, partly reregulating parts of our electricity market. So there
is a chance we will no longer have to deal with this kind of nonsense and will
be able to make more rational decisions about how power is going to be
administered in this province.
Kate: Let’s go on to something
equally as enraging. So, the specific incident that we are referring to here is
the Supreme Court of Canada decision in Vriend vs Alberta in 1998. So it found
that the exclusion of sexual orientation in Alberta’s human rights legislation
violated the Charter. So Klein’s first response to this was by suggesting that
he would use the Charter’s notwithstanding clause — and the Charter’s
notwithstanding clause is basically, I don’t know a ton about Canadian
constitutional law, but as far as I understand it, it’s kind of a legal,
roundabout trick that provinces can use to stop SCC, or Supreme Court of
Canada, decisions from applying to them.
Patrick: Yeah. Basically, the
notwithstanding clause was a compromise that landed in our Constitution in
order to get the thing repatriated at all, and the basic idea is that a
provincial government can temporarily decide to ignore a provision of the
Constitution if they want to, is my understanding of it. There’s a little bit
more to it than that, but that’s the heart of it. It’s been very very rarely
used, always draws lots and lots of fire and attention when it does, and so the
fact that Ralph Klein would consider using the notwithstanding clause on
something as hateful as stopping LGBT people from getting married is pretty
awful.
Stephen: This might have been part
of — I personally think that his stance on this might have been internal party
pressure. I think that Klein’s attitude towards government was very much “mind
the store,” and his advice to his would-be successors when he finally was
stepping down was, “Don’t go into these social issues, just stick to jobs and
the economy, bla bla bla.” But he is balancing a caucus of very regressive
people; he’s got Ted Morton hanging around his wings, he has to give him
something.
Kate:
Stockwell Day, Ken Kowalski; all these really, truly wretched men who are very
— it’s hard to overemphasize how socially conservative these people are. Think,
like, the worst stereotype of socially conservative people you have in your
mind; it’s like that. It’s like, Bible College, all that kind of stuff.
Stephen: Yeah. Klein’s opinions on
LGBTQ rights probably were not chill, but I guess maybe we can agree his agenda
wasn’t necessarily reckless, right?
Kate: You don’t think Ralph Klein
would have spent the political capital on this if he wasn’t being internally
pressured by people much more socially conservative than him in his caucus.
Stephen: Yeah, ‘cause they had quite
a bit of power, and he has to keep — like, these factions were warring the
entire time he was there, and didn’t even necessarily like him, they tried to
submarine him in that leadership review, right, in towards the end of his days.
So, I mean, he did have to play the politician that way sometimes. Yeah, he
called for a national referandum on the issue of same-sex marriage, and Paul
Martin and Steven Harper both shot the idea down of putting the issue to a
referandum.
Bodie: I think it’s a matter of just
rallying the base, just screaming into the void but hoping that other people
will hear you and appreciate what you’re saying, because I’m from Saskatchewan,
and you don’t know how much Brad Wall goes on about about the carbon tax and
how he’s going to take on the federal government and challenge it and all this.
And, of course, we all know that he would never win, and secondly, it’s a huge
waste of money, but these conservatives, who know that they have social conservatives
in their base, just use these sort of issues to get everybody riled up.
Kate: Right, and get people
volunteering and donating the money. Because they need these people to turn
around and vote for them, even if they’re never really going to get what they
want from a conservative government. That was basically the amazing balancing
act of the Progressive Conservatives for, like, 44 years, is keeping all these
deeply socially conservative people voting for them, but trying to throw them,
just, the smallest, smallest scraps possible.
Stephen: Yeah, my read on that is
that none of these factions particularly loved Klein himself, but they
recognized his popular power and his ability to bring in consecutive majority
governments every single time, and so…
Kate: This,
to me, shows how well conservatives understand politics on a pretty base level.
Like, they understand that politics is inherently the place of conflict between
warring ideas, and you have to do these things to keep people happy. Otherwise,
they will not show up and vote for you. And I think they understand it in a way
that, often, a lot of center and center-left parties really don’t get.
Stephen: I think I have to disagree.
I think politics is about people coming together and working together to create
a better future for all of us.
Kate: I’m gonna throw a beer can at
your head.
Stephen: Your position on this is, frankly, quite cynical, and I’m disappointed.
[laughter]
Bodie: What is the centrist mantra; fiscally conservative, socially liberal? You know that’s bullshit.
Stephen: Yeah,
we’ll let absolutely any fucking crazy bastard into our party. left wing, right
wing, we’re a home for everyone. We stand for nothing!
Kate: Alright, well, we’ll avoid
just bashing centrists for now.
Stephen: I just
can’t help it.
Karen: Another two-part episode.
Bodie: Low-hanging fruit.
Kate: Just
the lowest-hanging fruit.
Patrick: One other little side note
on LGBT rights in Alberta. Alberta was the absolutely dead last province to add
sexual orientation to its Bill of Rights, basically putting it as protected
grounds. You can’t discriminate against someone on those grounds. And it was
added only in 2009. Seven years later than the next most recent province.
Everyone else got on top of it decades ahead of us. And that kind of reflects
Ralph Klein’s whole approach to this. Like we’ve discussed, he wasn’t really,
really wedded to the idea that gay and lesbian people should be wedded, he was
just draggin his feet on something that he knew was popular with his base, and
he knew that, if he said the right thing here and there, he could cash some
support, and that’s what mattered most.
Karen: Yeah, when he was literally
gone, that’s when they added the Bill of Rights.
Kate: And
man, if the PCs were good at anything, it was dragging their feet. They
governed for 44 years by dragging their feet.
Stephen: It’s like their whole
thing, yeah. When he talked about invoking the Notwithstanding Clause, he’s
talking about trying to attack a Supreme Court decision. That’s, like — it’s
empty, there’s nothing he can do. This is just him talking, and like, banging
his sword on his shield.
Kate: Yeah, which is his whole mode
of politics.
Stephen: Yeah, and it works here. I
mean, Kenney trying to do the same thing; it’s always us vs Ottawa. Brad Wall’s
capitalizing on this; like, that’s part of his legacy, is stoking western
alienation.
Karen: Well,
even the LGBT stuff is definitely one of something that Kenney’s done to virtue
signal to his base, but they can’t do anything about it at this point.
Patrick: Worth noting two things
about that, thought. First of all, it’s not a completely empty threat; the
notwithstanding Clause is a thing, and even if — I mean, Klein never ended up
doing this, but even if he had, just as a raised middle finger to Ottawa, it
would have had the actual effect of allowing the Alberta government to ignore
this Supreme Court decision if he wanted to. And —
Kate: But I
think the thing there is that Klein — this is just my belief — I don’t think
Kleing actually ever intended to use it. I literally just think he was waving
it around to show people he was a bigot ‘cause he thought it would play well.
Like, I really don’t think that he ever intended to go as far as using the
notwithstanding clause. And that doesn’t mean that’s not still a very harmful
and reactionary and bigoted thing to do, but it’s sort of, I think, important
to realize that he wasn’t gonna do it, that he wasn’t actually willing to spend
the political capital on that. He was just trying to pacify his base,
basically.
Stephen: Yeah, he probably wanted
nothing more than for the issue to just go away, one way or the other.
Kate: Exactly.
Karen: Mhm.
Patrick: And, yeah; the other thing worth noting is that
the whole idea of doing a referendum, of having a referendum on something that
the Supreme court has decided is a decision, is a right, is really kind of
bizarre when you think about it on its own, right? We’ve decided that this is a
right that’s not going to be infringed anymore, and oh, well I guess we’ll just
vote on that and decide whether we really want it. Kind of a strange notion.
Kate: Alright, so — moving on to
probably one of the most disgusting and the most infamous Ralph Klein
incidents. So, at about 1:00 am on Dec. 12th, 2001, a visibly intoxicated Ralph
Klein has his chauffeur drive him to the Herb Jamieson Centre, which is a
government-supported shelter for homeless men. Witnesses say that, soon after
entering the Centre, Klein begins shouting and swearing at a number of these
unhoused people. He’s slurring his words, he’s yelling repeatedly at them to
get jobs, he’s throwing money on the floor, and he eventually storms out.
Stephen: This is probably — when
someone talks about Ralph Klein’s legacy, or even just mentions Ralph Klein,
this comes to mind so quickly because it just so perfectly sums up Ralph Klein.
Kate: Yeah. A woman who was in the
shelter at the time with her boyfriend said that Klein was, like, putting them
down like they’re worthless. And what she said that I think is very key is,
“They do everything they can to help themselves, and maybe if he’d helped them
a little instead of cutting back on everything, they wouldn’t be here.” So
basically directly tying the austerity of Ralph Klein’s politics to these
peoples’ situation, which Ralph Klein then had the gall to go in there and
drunkenly yell at these people and throw money at them. It’s fucking
despicable.
Karen: Mhm.
Stephen: Yeah. He’s just a vile, contemptuous man.
Karen: Yeah.
Patrick: And the absolutely
mindblowing thing about this — and the also completely quintessential Ralph
Klein thing about this — is that he managed to turn it into a positive for him.
After this was all over, he came out and said, “Yes, I have a problem with
drinking, and this is what led me to do these terrible things.” And he got an
incredible amount of public sympathy for this. It was just unreal. And, you
know what? Good on you for recognizing that you had an issue, but that doesn’t
excuse any of the stuff that you did.
Kate: Yeah, but I mean, the fact of
the matter is that, when I get drunk, I do not go into homeless shelters and
yell at people, because I’m not a fucking piece of shit. Being drunk does not
give you politics you don’t have when you’re not drunk, it just kind of lowers
your inhibitions. Ralph Klein believed all those things, and you know he
believed all those things because his politics was full of nothing but material
contempt for these people that made their lives worse.
Bodie: Stephen mentioned that he
rallied a lot of public sympathy after
because he mentioned that he had an issue with drinking. So these are
his actual opinions. I’ve actually never heard this story before, so it’s all a
lot to take in at once, but I’ll say that —
Stephen: It was quite shocking.
Karen: Yeah.
Bodie: — the public sympathy doesn’t
surprise me because having contempt for homeless people and the disadvantaged
and the non-propertied in capitalism is not an aberration, that’s how it’s
supposed to work. You’re supposed to hate poor people because the ruling class
wants us to believe that people who don’t participate or don’t succeed in this
society are broken or wrong.
Kate: Absolutely. And they want you
to fear being like that so you toe the line. One of the most disgusting things
to this for me, besides the actual incident, is how media responded to it. So
there’s a Globe and Mail piece on this from the time, and it says, “It’s hard not
to have at least a sneaking admiration for Alberta premier Ralph Klein.” It’s
like, no it’s fucking not!
Karen: Why??
Kate: It’s
very easy not to have a sneaking admiration for Ralph Klein!
Stephen: Centrism is just so cool,
hey? Like, the Globe and Mail’s going to take that position, that’s —
Kate: Yeah. Or, what else did they
say? “When the dust settles, the now-infamous trip seems destined to become the
stuff of political legend in the province rather than scorn.” I mean, that just
shows you how disposable the Globe and Mail thinks unhoused people are. One of
the other things, too, is Klein gets all this support from it, he manages to
spin it in a good PR story, he’s getting people in the G&M writing that
they have admiration for him. But what would have happened if these roles had
been reversed? Like, if a drunk, homeless person had invaded the premier’s home
late at night and verbally abused Ralph Klein. First of all, if that person was
Black or Indigenous or a person of colour, they for sure would have been killed
by the police, and, at the very least, would face home invasion charges, would
be jailed. The ability of Ralph Klein to do that is political capital that just
does not exist for anyone else in society besides, like, extremely powerful,
rich white men.
Bodie: So in 2002, Ralph Klein made
the following statement on climate change. He says, “You know, my science is
limited to the fact that I know that, eons ago, there was an Ice Age. I know
that for sure. I know that, at one time, the Arctic was the tropics. And I
guess I wonder what caused that. Was it dinosaur farts? I don’t know.” Ralph
Klein, 2002.
Stephen: “Oh, I’m just asking
questions.”
Kate: Ralph Klein is the dumbest
person alive.
Stephen: And
that’s, like, he made the dinosaur farts joke several times in the media. He
finds this so funny.
Kate: [laughs]
Karen: [laughs]
Wow.
Patrick: Ralph Klein — he doesn’t
know.
[laughter]
Stephen: Climate
change was, politically, very easy to deny until around 2006, when all these
horrifying studies were coming off the news wires and it was getting impossible
to ignore.
Kate: Well, I mean, the thing here,
basically, is sort of that it was politically easy for Ralph Klein to deny
climate change, so he did.
Patrick: Yeah. He gets a tiny bit of
credit for doing it with a little bit more style than everyone else was doing
at the time, but, I mean, honestly not that remarkable.
Kate: This, to me, is one of the
least egregious and also least surprising
things about Ralph Klein. I mean, it’s sort of horrendously egregious in that
climate change is going to change us all if we don’t take a serious look at how
we allocate resources and energy, but it’s not particularly egregious in its
delivery compared to other things we’ve mentioned, and it’s so deeply
unsurprising. Someone could say this now and I’d be unsurprised.
Patrick: One crisis that Ralph did
preside over was the 2003 mad cow disease problem. In that year, an animal was
confirmed to have mad cow disease. It was on its way through a slaughterhouse;
it was screened, detected that it had this disease, was removed, deemed not fit
for human consumption. As a consequence of this animal being detected, the US
and Japan and South Korea and Australia, and others, implemented temporary bans
on Canadian beef. And Ralph Klein went to the media and said, “I guess any
self-respecting rancher would have shot, shovelled, and shut up, but he didn’t
do that.”
Stephen: Lesson here is that the
farmer should have just broken the law just to make Ralph Klein’s life easier.
Kate: It’s also, like — mad cow
disease is fucking dangerous. You know? It is basically like rabies for people,
you know? That could have easily killed someone, and easily killed a lot of
people, if it had caused an epidemic.
Patrick: It is an incurable disease,
it is very difficult to destroy by cooking — if not completely impossible to
destroy — very dangerous for it to
actually get out there, and that’s why we have systems in place to detect these
things and prevent it from entering our food supply.
Kate: It’s just, like, that
conserative disdain for regulation being taken to its logical conclusion,
because Ralph Klein’s not smart enough to realize that you should stop at a
certain point ‘cause it’s kind of publically untenable. And you see what the
logical consequence of complete deregulation is. And it’s a world that’s very
unsafe.
Stephen: Yeah, so he offers to pay
$10,000,000,000 to any Japanese citizen who comes to Canada and gets ill due to
beef traced back to mad cow. He starts with five billion, then he says, “No,
make it ten billion Canadian.”
Patrick: Yeah, that’ll do it, Ralph.
Kate: He’s
also speaking in Japan. He’s like, “Yeah, someone can come here, and if they
get mad cow disease —”
Stephen: Is he in Japan when he says
this?
Kate: — yeah, “—and I’ll give them
ten billion dollars.”
Stephen: Now-international buffoon
Ralph Klein.
Karen: Yeah,
pretty much.
Kate: Alright, so here’s the good
shit. The best part of this episode. In July 2003, a hero of the people hurls a
banana cream pie into Ralph Klein’s face at a stampede breakfast in Calgary.
Three people were initially charged; charges against two were dropped, with
only the single pie-thrower receiving a thirty-day jail term, which he ended up
serving on weekends. I love this guy.
Patrick: Can we invent a medal that we bestow on — can we have an award that we create as part of the —
Kate: Yeah,
and we have a medal, and we give it to people who throw pies at politicians we
don’t like.
Patrick: Who do anything! Who do
anything that really scratches an itch for us, right? We can play some trumpety
classical music and have a little ceremony where we bestow it in flowery
language. This is a thing we should do, I think.
Stephen: Christopher, we all think
you’re cool, none of us can pronounce your last name.
Kate: Yeah, please come on our
podcast. Genuinely a people’s hero. Just an iconic moment of the Ralph Klein
era. So satisfying.
Stephen: Yeah, ok, so this is one of
the most — I hate the word “iconic”, but when you think of Ralph Klein, you’re
gonna think of the image of him looking like kind of a, he has a goofy
expression on his face, he’s wearing his little cowboy hat, and he’s holding up
a big sign that says “Paid In Full” announcing that we had paid off,
supposedly, our debt. So, I mean, the image — it’s impossible not to think of
George Bush and his fighter pilots on that aircraft carrier with the “Mission
Accomplished.”
Kate: And, like George Bush and his
fucking “Mission Accomplished” banner, a total lie, right?
Stephen: Total lie, yeah.
Absolutely.
Kate: So
Ralph Klein announces — it’s July 2004, he says, “Alberta’s debt has been paid
in full.” Infrastructure debt, though — so that’s deferred maintenance on
buildings we need, that’s why it’s infrastructure — was at 6.5 billion dollars.
So rural facilities were being underused — this is a system so manipulated by
politics — hospitals are crumbling, the general hospital’s literally blown up,
and, in 2015, that problem grew to about a potential 16 billion, depending on
the calculations.
Stephen: Right. And let’s also keep
in mind that what accomplishment there is in this — this was at a time when
Alberta was hauling in massive windfalls every year of, like, 7 billion dollar
surpluses from oil prices rising. So times were good when he paid it “in full”,
quote quote.
Kate: And, more to the point, who
cares about paying off the debt?
Stephen: And who the fuck cares
about the debt? Yeah, like, honestly, I don’t give a shit.
Kate: Yeah, it’s just an entirely
manufactured conservative talking point, it’s not real money. But what is real
is the infrastructure, like schools, and roads, and bridges, and the boilers
that heat buildings, and the hospitals that take care of people. We need that
stuff. We don’t need to pay off the public debt.
Karen: Yeah.
Patrick: It is completely enraging.
I mean, there’s a reason why no other province — why no other country,
practically — pays off their debt in one shot. And it’s because it makes sense,
it makes sense to take on a little bit of debt to have stuff now rather than
waiting ‘til you can afford it later, because your people have needs that need
to be met now, and Ralph Klein made a decision to not do that.
Kate: Yeah, I like to think of it as
— yeah, Ralph Klein literally took infrastructure away from us that we could
have used and that we desperately needed. And he used it literally for a cheap
political stunt. That’s, like, the only political utility of paying off the
debt like that.
Stephen: Yeah, so it’s his only
accomplishment and it’s bullshit, basically.
Kate: Yeah, ‘cause what really
matters with debt, if you want to go down this road, is basically the debt to
GDP ratio.And Alberta has never been in a situation where our debt to GDP ratio
has ever been even approaching anything close to a problem. So, you know — I
know the numbers get really big and they sound super impressive, but at the end
of the day, it’s just not an issue in this country.
Patrick: Yeah, and serving no useful
purpose. I mean, it served exactly two purposes. One, it gave him a great photo
opportunity. And the other is it scratched this ideological urge that some
right-wing folks have to just never let the government get into any sort of
debt whatsoever.
Kate: In
2004, there was a government report on healthcare, and it recommended higher
healthcare premiums and a new healthcare deductible. So, basically, attacks on
healthcare use. So if you — correct me if I’m wrong — if you use the healthcare
system less, you got a deductible on your taxes. Which is absolutely wild,
because that deductible is only going to be used by people who are a) filing
their taxes and have software or, like, people who help them file their taxes,
and b) it’s part of this very conservative idea wherein you individualize
health, so it’s this idea that your health completely relies on the individual
choices that you have made as a person. So you know, if you work out a bunch,
you’ll never get into a car accident or anything like that. But, in actuality,
there’s social determinants of health, you know? People’s access to clean
water, to housing, to food; that impacts how healthy they are. What hours they work,
where they work, what kind of labour they do. So none of this really holds up
to any kind of scrutiny, and it’s all — it’s so deeply ideological, it’s
painful.
Karen: Yeah. I mean, you hope that
your friends, your family who randomly get cancer because it just happens,
there’s no indication that could happen, but that you would want them to be
looked after fully because that’s what we’re all paying into, to have everyone
healthy and have the best outcome, so.
Kate: Yeah, that’s the idea of the
social safety net, is the social safety net is there for everyone, regardless
of their individual choices.
Karen: Exactly, yeah.
Kate: But basically — so, in
addition to this healthcare deductible, there was also what they call the
“third way”, so it was to allow for these parallel private services to run
alongside the public system. So if you could pay, you could skip the queue and
the wait and the public system and purchase these surgeries or these procedures
in this parallel private system. And by allowing rich people to opt out of this
system, you basically just rob the public system of patients who are generally
healthier — rich people are generally healthier than poor people — and also you
rob the public system of people with political capital who will fight for
things like less wait times, things like that, because people feel like they
can opt out. And they can. They can very literally go take all their money that
they have and go buy it somewhere else.
Patrick: And there’s lots to be said
about failures in the public health system, ways that it could be improved, but
this is one of those “Nixon goes to China” moments where you want someone who
cares about the system, you want someone who knows about the system, to be
taking any steps to adjusting the system, as opposed to someone who’s committed
to destroying the system. It’s much better in progressive hands, to evolve how
the healthcare system works, than conservaative hands.
Kate: Exactly. And that goes down to the deep political question at the heart of it, is, “Do you think everyone should have access to publicly-owned healthcare?” And if your answer to that is “no,” then your solutions to the real problems we face in our public medicare system are going to be to dismantle it piece by piece, to privatize it piece by piece, to create this third way. But if your answer is, “Yes, I think healthcare should be publicly provided for free at point of access,” then there’s absolutely solutions to the problems we face that don’t involve this third way. And it’s our responsibility as people who are left-wing to show up to bat for those solutions, I think.
Stephen: Ralph
Bucks. Prosperity Bonus, also known as the Ralph Bucks; we all got $400, every
man, woman, and child in the province, just because we had a 6.8 billion dollar
surplus from incredibly high oil prices one year.
Patrick: And they literally could
not come up with a better thing to do
with the money.
Stephen: This is at a point late in
the Klein regime, exactly, where he was just so void of ideas. There’s
absolutely no vision, nothing he wanted to accomplish; just kinda chugging
along, minding the store. “We get massive windfalls every year from high global
oil prices, let’s just give everyone $400! That’s the best use of public funds
we can think of.” And so, basically, Best Buy had a really good year in
Alberta, and that was about it.
[laughter]
Patrick: Think
about these numbers for a little bit. This 6.8 billion dollar surplus was
mainly due to really high natural gas prices. And at this time in 2006, we
didn’t really have the hydraulic fracturing technology that we have today, and
as a result, natural gas was actually much scarcer than it is today, and that’s
why we had these really high prices. And just think about these numbers for a moment;
the provincial government ran a 6.8 billion dollar surplus. The cost of Ralph
Bucks clocked in at about 1.4 billion dollars. That money should’ve landed in a
heritage fund, should’ve landed in rainy day funds. Because now we’ve hit the
“bust” part of the “boom/bust” cycle, and our government has to run these 10
billion dollar deficits every year just to keep the lights on the way they were
before. We should have been saving all this wealth. And it’s not like this was
a surprise, it’s not like no one knew this was coming. This was obviously the
right thing to do at the time. And Ralph Klein did not have the vision to do it
or the nerve to do it
Karen: Alright, so back to memorable
Ralph Klein moments. So he was quoted as saying, on Belinda Stronach, who was a
conservative MP who crossed the floor to the Liberals in 2006, “Now, Belinda
has roasted me as a conservative, but of course, now she’s a Liberal,” which —
something that he said during the Calgary Homeless Foundation roast, so great
context. “And I wasn’t surprised she crossed the floor, because I don’t think
she’s ever had a Conservative bone in her body — well, except for one.” This
joke didn’t go over super well, and he immediately over-explained it by saying
that it’s speaking of Peter McKay, who was Foreign Affairs Minister at the
time, and kind of another notorious Conservative figure.
Kate: So I hadn’t heard of this
anecdote until we started recording this podcast, and every — it’s like an
onion of fucked up-ness. Every part of it is so perfect —
Patrick: — It’s
just fucking gross!
Karen: It’s a roast!
Kate: He’s at a Calgary Homeless
Foundation roast? What the hell is that? The joke itself — like, dude, what the
hell? The fact that he then over-explains it, he’s like, “By the way, you know,
the bone in her body, the part of the joke that you all groaned at, that’s
Peter McKay. Do you all understand? Do you all understand the joke?”
Karen: [groans]
Kate: It’s just — it’s so perfect.
It’s so perfectly horrible.
Stephen: I apologize for going down a side road here, but remember the Belinda Stronach-Peter McKay thing, and then they broke up and it was a huge falling out, and the media really sympathetically followed Peter McKay around while he was making himself seem like a spurned, sad ex-boyfriend. So he invites the media down to come talk to him at his house while he’s out walking his dog and reflecting on life post-breakup, and then it turned out that the dog, which was a golden retriever or some shit, actually belonged to his neighbour. So he pretended to own a dog —
Karen: Oh no.
Stephen: — for the sake of this
media —
Karen: Oh man. Well, apparently, now, he’s —
Stephen: —stroke piece where they make him out to seem —
Karen: — yeah,
he’s married to a former Miss World Canada model now, so I don’t know.
Kate: Bodie, you look like you have
a sudden headache that has become onset.
Bodie: Yeah. Like you said, the
onion — like, where is the fucking center in this thing?
Stephen: It’s incredible. So anyway,
back to —
Kate: We’re
coming to, basically, the creaky end of Klein. But one of his most enduring
legacies, and one of the big things I think we have to talk about, is the flat
tax. So after he balanced the budget through brutal, brutal austerity that we
go over in “Ralph Klein: Part 1”, Klein’s government introduced a 10% flat
income tax in 2001.
Patrick: A flat income tax is one of
the most — again , I use this phrase often with Ralph Klein — enraging things
that he did for people who were earning money in what would be the lowest tax
bracket in any other province, you are actually paying much more in income
taxes in Alberta. That was the Alberta Advantage. And, meanwhile, the amount of
money that you were paying if you were in one of the very, very top tax
brackets, either federally or in any other province, is much, much less. This
was a massive boon to people who were making lots and lots of money.
Stephen: Yeah. It’s the transfer of
wealth —
Kate: The
Alberta Advantage is stealing from the poor to give to the rich. It’s like a
reverse Robin Hood. On the surface, a flat tax sounds fine because you say,
“Ok, everyone pays 10%. But if you’re wealthier, 10% of a higher number is more
money. So rich people are paying, technically, with the 10% flat tax rate, more
in tax.”
Patrick: But consider what that 10%
means to a person on, say, a $20,000 salary versus a person who’s on a $100,000
salary.
Karen: Exactly. Mhm.
Patrick: If you’re on a $20,000;
2000 bucks, that is a serious chunk of coin in terms of your daily living. That
has a very large effect on your ability to afford a decent place to live and
afford decent food to eat and afford to move yourself around with transport. If
you are on a $100,000 salary and your 10% tax is $10,000, well, it’s a larger
number, yes, but in absolute terms, you’ve got so much money that it’s not
going to make so big of a difference. And that is why —
Kate: Exactly.
Patrick: And that is why this sort
of flat tax is actually incredibly unequal. And, just as a point of reference,
Ontario, currently, today, their lowest tax bracket is 5.05%. Half of our 10%
tax bracket. Their tax bracket goes up to $42,000. So if you’re earning
anything like an ordinary, middle-class wage, your income tax— your
proportionate provincial income tax — basically doubles if you move to Alberta.
Kate: The UCP, of course, wants your
life to be worse, so they’ve actually floated bringing back the flat tax in
their policy draft. So this would take 850 million dollars a year from
government coffers, and it would overwhelmingly benefit the top 1% of earners.
Like, we’re not even talking about your standard rich person; we’re talking
about very, very rich people.
Stephen: They threw it out there,
and then they kinda cowered away from it, which I thought was odd. They didn’t
stand by their horrible policy.
Karen: Well, it was a trial balloon,
I guess.
Stephen: I guess they were just
testing, just floating the balloon, yep.
Kate: Let’s do the math of this UCP
policy draft. They’re going to eliminate the carbon tax, they’re going to
eliminate progressive income taxes, they’re going to roll corporate taxes back
from 12% to 10%, but they’re also going to eliminate the deficit. That means
they’re going to gut our public services. We would see austerity like we did in
the Klein days. Food bank use skyrocketing. Public sector employees being laid
off, being forced to swallow these huge salary reductions. Just — austery for
us and handouts for their rich friends.
Patrick: There’s a reason why Kenney
and company do not publish a shadow budget, and it’s because it would force
them to detail just how they’re going to balance this, you know, 12 billion
dollar hole in the budget.
Stephen: Fucking plainly, yeah. They
know that they cannot put this on paper and have it make any fucking sense.
Karen: Well, they had the Wild Rose
shadow budgets that didn’t make sense because it was just, like, magic money,
it didn’t come from anywhere.
Stephen: Where
do they come up with this shadow budget?
Kate: Yeah, oil will be, uh, $200 a
barrel.
Karen: Yeah,
that’ll fix it. So I can see why they don’t want to repeat it, but it’s not
like most of these people have not put it together, these numbers or these
kinds of documents. They have a record of it.
Stephen: Well, Kenney says that
they’re just — what did he call shadow budgets? He called them gimmicks.
Karen: Oh. And he doesn’t like
gimmicks at all.
Stephen: Yeah, he doesn’t like
gimmicks. He’s okay with filling up a jerry can on New Year’s Eve to show that
he’s saving 35 cents, but putting together a shadow budget that shows how he
intends to govern, that’s just a gimmick.
Patrick: Yeah,
yeah, it’s a gimmick. You’re the government in waiting. It’s your job to take
over if anything does wrong or if you need to, and it’s just too much work,
it’s too much of a gimmick to do your job and figure out what it would be like
if you actually had this responsibility and you want the job.
Stephen: Because they know they
can’t actually show us the hell world they intend to create for us.
Kate: Yeah, cause people would say,
“I don’t want that. I don’t want to live in this hell world.” Speaking of the
NDP; so, they have materially rejected aspects of Klein’s legacy. So they’ve
opted for deficit spending and infrastructure investments. Do we think they’ve
done enough to politically attack Klein’s legacy? Have they done enough to
erode this common-sense idea that Ralph Klein is popular?
Karen: No. [laughs]
Kate: Yeah, I’m also gonna say no.
It’s a very leading question, for sure.
Karen: Yeah. I mean, they still have
definitely a deference to Klein and, kind of, a political attitude that he
represents, and I don’t think there’s been enough discussion, dismantling, of
the ideas we’ve been talking about in this episode, that it’s just common sense
assumptions and how we can have those conversations on the doorstep, and it’s
not sacred, and it’s not forbidden to just talk about public-laid policies and
history, and —
Patrick: Political
parties will say what they’re gonna say, they’ll have the messaging they’re
gonna have, but, to a certain degree, the project of reevaluating Ralph Klein
and assessing what his legacy is in the public — to a certain degree, that’s
not a political party’s job. That’s a discussion that mainly happens in the media
and is, itself, mediated between individuals, or is mediated by big media
outlets. And they are not the friends of progressives in this province.
Kate: Yeah, well, that’s why you
need an extra-parliamentary left. You need organizations that aren’t in the
legislature, who share your ideas to an extent that they can create an
atmosphere and an environment that is going to be more hospitable for your
legislative paths. That’s what the NDP really needs in this province, in my
opinion.
Patrick: Yeah.
Kate: Alright! So, to end our
two-episode tour of the one and only Ralph Klein, the man we all hate: if you
could design Ralph Klein’s tombstone, what would you put on it? Let’s start
with Karen.
Karen: “Here lies a bum and creep.”
Kate: Patrick.
Patrick: “Maintenance on this
tombstone has been deferred forever, so I hope they built it well the first
time, because it’s never getting patched up.”
Kate: Bodie.
Bodie: Here lies Ralph Klein. Get a
job.
Kate: Ok, so — clearly, it would be
just incredibly, incredibly impolite to encourage people disrespect this man’s
great legacy. So, instead, we would like to recommend this delightful place
where you can remember all of the things Ralph Klein did and pay your respects
in the manner that you see fit. So it’s at Eton Brook Memorial Gardens And
Funeral Home, Township Road 242, Rocky View County, Division Number 6, Alberta.
And it’s open 24 hours, so feel free to pop by there, you know, late at night,
when the cops won’t be around; it’ll be just you and the legacy of the great
Ralph Klein. On behalf of everyone at Team Advantage, thank you so much for
listening to this second of two episodes on the late, not so great, Ralph
Klein. Perhaps we will see you when we’re paying our respects to Ralph Klein.
Bye, everyone!
All: Bye!