page 2, August 24, 1977 - North Shore News By SIM SMITH ‘A long-time ago, when» ‘ governments faced high un- employment, + hey recorted 2 ee ~~ to inake-work programs. Dams were built, roads laid 3 streets cleaned, and ditches dug. It seemed to work, too; . North America make-worked itself right out of the. Great | Depression. ; Today, when faced with. | high unemployment, govern- ments take- a different appreach: they give ‘subsi- dies to companies which ‘imerease their capital invest- ments. The technique enjoys considerable support from economists. {which, . away, . suspicious) and the ‘major business interests. Unfortun- ately, it- has a drawback. . Quite simply, ithas shown.no signs of working. -. gets worse. Because higher | wages are paid to the smaller - group of workers who tend - the machines, all workers in. ‘the economy try to get equally high. wages. So the wats as ‘In fact, capital investment incentives appear to have a very negative effect on employment. For instance, a multi-million dollar oil refin- - ery was recently completed, in part because of govern-. ment tax incentives. The new that it requires. only. two workers per shift instead of. dozens. And ‘that’s one up. Gaaly enough, eur z govern. ment economists have yet to. realize that capital invest-_ mont incentives are xeanon- sible for aggravating unem- ployment and inflation, two_ ‘Fight. should make. ‘as ~ reason why unemploymient is | areas which government. might be expected to find The unemployment aspect is obvious. When machines _ are made artificially cheaper ‘machines. than manpower, will be used instead’¢ f workers. And, oe since there are no governmet subsidies for additional workers that correspond to subsidies for _added capital; machinery is cheaper -- after subsidies -- than manpower for industry. But the economic impact workers who remain empley- ed force their wages up to - artificial levels. plant is so highly automated | -Not all of. our modern inflation is caused by govern-. . ment. incentives for capital. investment. But some infla- tions arises that way. ‘The Canadian Federation of Independent Business has been studying capital subsi- dies and. finds the subject. alarming. Ideally, it conclud- es, all capital subsidies _ would be wiped out, elimina- ting the unrealistic differ- ence in. prices between -Isbour and capital. But the _ world fs far from ideal and, as long as the United States . provides subsidies, Canada must. follow suit. And that’s why job tax credits are being - proposed by: the Federation as one. solution - prebl tems. A job tax. éredit would give a subsidy to employers for . every new job created. The cost of the program would be offset by ‘savings in unem- ployment i insurance and wel- . fare payments. . Ottawa has has not recoonized 4 oat — mune “the potential merit of job tax. credits: . would evidently rather pro-— vide i machities. ° -The bureaucrats GES - 7 A key. recommendation i in ' the task force report was to stop further large-scale dev- _€lopment until ‘storm water ‘controls have been establis- hed. In an interview following the council meeting Mayor ' Stephens, . Jories confirmed | to the North . Shore News that. the muni- cipality will only allow. developments-.of 10 to 15 houses at most to go ahead. until the specific: guidelines have been set up. Council received the report. at Monday’s meeting in order to have it publicized — and generate a reaction from. citizens: Members of the taskforce are: lawyer Harry | Hunter, engineer Alan planner Rob Buchan, and land developer -Gil Hardman. | “VERIFIED CIRCULATION 46,000 1139 Lonsdale Avenue, North Vancouver, B. C. v™M 204 | OFFICE/NEWS: (604) 980-0511 CLASSIFIED: 980-3464 CIRCULATION: 986-1337 Poblisher Peter. Speck’ * Associate Publisher Bob Graham /Editor-in-Chief. . : development. Noel Wright/News Guillermo Lam/Photos Ells-- worth Dickson/Production Marna Leiren/Advertls- img Kristi Vidler/Clasaified Berni Hilliard/Circula- tion Yvonne Chapman/Administration | ‘Barbara Haywood/Accounts Sylvia Sorensen. North Shore News, founded in 1969 as an’ _ independent community © “mewspaper and qualified under Schedule 111! rt 10%, Paragraph 111 of the Excise Tax Act, is published. cach Wednesday by ‘the North. . Shore Free Press Ltd. and distributed to every door on the North Shore. Second Class Mall Reglatration | Number 3085... eee " ENTIRE CONTENTS COPYRIGHT © 1977 NORTH _SHORE FREE PRESS LTD. Ail rights reserved.| a and . replace . qd “bridget " crossings which | i allow the watercourse to flow - 1. through unimpeded. “There are ae culverts, “The ptésent | standards : ‘adopted by the district-do not - lequate basis for . a master drainage plan, and. _ practically no work has been [ done during the past four — years to correct the te oy ' the. §& provide an system deficiences,”’ report states. ‘Nevertheless council, is 7 . proceeding with the proces- sing of some “major land development. —__* proposals, which apparently have no. | fa. specific provision ‘for pre- od venting a sharp increase in: the rate of runoff passing fy: from the developing areas to & furthér .. urbanized areas. downstream aad Among the. recommen: | dations: ‘ | eRequire ; developers to | idléntion storage jf facilities to keep the runoff at provide d the’ same rate as) before eEstablish a arid land. development com- ‘mittee’’ to ensure the pro- the creek amenities. © a | eRemove existing culverts “them with eCreate ae required | for ach t develop: oment. ” rs three .. major © . problems. according’ to the.. ‘report: restrictions at road | erosion of . creek: — ‘banks, and increased runoff . due to new development. to our — ‘employment - and inflation “planning tection ard enhancement of * _ computer : : “model” to predict ‘runoff ¥ and whet storage would be @ > GRID GD ED GI Gin, Lo Ort is Men’s Hair Cuts... 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