Toronto, Canada

Some candies I picked up at the dollar store--I like the Smarties, which are Canada's version of M&Ms

8am in Canada -- beautiful

I just arrived in Toronto, Canada.  My airport experience was smooth and pleasant in Canada, but not so in my own hometown of San Jose, California.  Funny how that works--the people to whom we pay taxes don't seem to care as much about us as the ones who treat us as guests.

Toronto is so diverse, I cannot tell where people are from, unless I see obvious clues, like being light-skinned, African, and wearing a headscarf (i.e., of Somali descent). In my own family, my male cousins are married to women from Guyana; Trinidad and Tobago; and Pakistan by way of Bahrain.  My female cousin, the youngest one, is dating a Filipino.  I once said, "If you want to be happy, marry a Filipino/Filipina."  I should probably expand my folk wisdom to anyone raised in Malay culture who has a strong work ethic.  In any case, my uncle and aunt--both born in Iran--love Canada.

They particularly like Canada's healthcare system.  With a federal income tax of about 40% and a 13% sales tax (5% is GST/HST and 8% provincial), they can go to the hospital and never receive a bill to pay.  In California, the upper income tax rates after combining federal and state are around 35%, and the sales taxes are around 9%; however, after numerous deductions, such as mortgage interest, very few people in the upper income brackets actually pay listed tax rates.  A single person making around 100,000 USD in California would probably pay around 28% to 32% federal and state income tax--not including property or sales taxes.  If the difference in income taxes is about 10%, one has to wonder why American healthcare is so inefficient.  In Canada, employees do not have any deductions from their paycheck for non-dental healthcare expenses.

Certainly, Canada's much smaller population and oil and timber wealth play major roles in being able to provide better social welfare benefits, but the key takeaway is that Canadians don't mind paying high taxes because they receive clear and tangible benefits. Meanwhile, I just spent weeks attempting to resolve a hospital bill around 1,000 USD (reduced from around 2,000 USD because I had insurance). Most of my bill was related to blood tests, and I received a separate bill from the doctor who saw me for about 10 minutes. I also received another bill from the same doctor later--apparently, the original bill didn't include all the fees. I managed to get it all resolved, but I'm a single person in between jobs who had the time to go in person to my health provider's customer care office multiple times.  (Oh, the "Pay Now" button on Covered California's website?  It's only a one-time use to get into the system--you can't use it to pay the premium once you've signed up, which must be paid through the third party health care provider's own website. And yes, it still says "Pay Now" even after you've signed up and can't use it anymore. Your credit card is charged 1 dollar and then deducted 1 dollar, and unless you're vigilant, you may think you've paid the monthly premium only to realize you haven't.  Good thing I visited the health care provider's office again to be sure, because what else would I be doing with my time that's more fun than resolving issues with a non-intuitive website?)

Before coming to Canada, I went through my own government's transportation check.  I always opt out of the futuristic-looking body scanner experience, which elicits apathy at best and scorn at worst.  While the American TSA located an agent to pat me down, my luggage was abandoned at the end of the conveyor belt for five minutes, and I was then groped in my groin area. (They point out it's the back part of their hands they're using before the inspection, though I'm not sure why the obvious-shaped bulge isn't a go-around area.)  As an American citizen, I get to pay taxes for inefficient healthcare, totally unnecessary risk of luggage theft, AND an R-rated pat-down?  Why in God's name would anyone want to move north? 

Freedom without Tolerance Leads to Cultural Fossilization

No society can call itself truly free unless it listens to unpopular viewpoints and allows such viewpoints without fear of retaliation. In other words, for freedom to mean something other than anarchy or majority control, tolerance is a necessary component. If unpopular speech is chilled through inaction or action, tolerance is impossible.

Worst of all, people with unpopular but correct views will be unable--in practical terms--to contribute them into the mainstream for examination, denying society the benefit of intellectual diversity and progress.

Bonus I: "After all, a minority exists to convince the majority to its way of thinking and often identifies flaws in a proposal that a majority doesn't see in its rush to adopt.  This is the fruit of deliberation and the essence of deliberative assemblies." - - U.S. Representative Tom McClintock, on why debate is essential to the legislative process.

Bonus II: Spoke to a law professor today who said that "sucking up" to people is required everywhere in the world to succeed. I don't know if she understands if people in power--whether in politics, academics, or corporations--use such a value in determining relationships and hiring practices, not only will the main result be an army of "yes men and women" rather than merit-based culture, but genuine interactions will be stifled in the name of alleged societal hierarchy.

She genuinely believes that all countries require "sucking up" to succeed, even when I told her I've been to about 30 countries, and that's just not true. I wanted to say she believes her statement because she's a professor in a law school charging 55,000 USD a year, so her experience with human interaction on a level playing field is limited, but I don't think I would have convinced her. Unfortunately, people in bubbles cannot typically be convinced by logic or experience not within the realm of their own personal knowledge. Perhaps one way to help Americans broaden their horizons is simple: increase travel outside North America early and often.

The "Warrant Canary"

After September 11, 2001, Congress passed the Patriot Act with only a single dissenting vote in the Senate and only 66 Representatives out of 432 voting nay.  (The House is a strange creation--there can be up to 435 voting Representatives, but some entities have a seat but no voting power, such as Puerto Rico, so technically there are 441 Representatives.)  Senator Russ Feingold of Wisconsin was the only Senator voting against the Patriot Act on October 24, 2001.  When the Act was up for renewal in 2006, at a time when more level heads should have prevailed, 86 out of 100 Senators voted in favor.

Because of such sweeping consent by America's politicians, America in 2017 lacks privacy and is under more surveillance than East Germany at its peak.  The surveillance is so broad and so invasive, the law itself prevents companies from even disclosing cooperation with it. If an electronic communications company--and what technology company isn't involved in electronic communications these days?--receives a National Security Letter ("NSL") demanding records, the company cannot even disclose the governmental request under 18 U.S.C. 2709(c).

That whole "checks and balances" idea allowing America to claim it had more freedom and stability than repressive regimes?  It has not existed from 2001 to 2017, because law enforcement agencies like the FBI are able to send a form letter and demand reams of consumer and citizen data without needing to get judicial approval.

 In 2017, a few companies are trying to fight back through end-to-end encryption and now a "warrant canary."  Basically, companies that haven't yet received a National Security Letter publish something in their annual report indicating they've never received one, and if the statement is missing from future annual reports, the consumer can make an educated guess about what has changed.

While this type of protest is encouraging, it is still facile and futile in actually stopping governmental and law enforcement overreach. As such, someone caring about privacy is now better off moving to another country where taxes are spent more meticulously, preventing governments from expanding law enforcement resources at will.  A country that can issue whatever money it needs on the backs of future generations may not go bankrupt due to currently low interest rates, but the kind of society it can create is not necessarily a healthy or sustainable one.  Indeed, a government relying on debt to maintain the status quo has an interest in normalizing its use amongst its own citizens as it diverts taxpayer funds into increasingly questionable endeavors.  In today's topsy-turvy world, countries with less financial flexibility are more nimble psychologically and perhaps more financially sturdy because choices must be made.  When choices must be made with finite funds, at least a few people tend to think of the long term.  Not so in America, but at least it looks like a few are rebelling--11 and 16 years too late.

Trivia Fun: as of 2017, the six non-voting members are Washington, D.C., Puerto Rico, American Samoa, Guam, the Northern Mariana Islands, and the U.S. Virgin Islands. 

Looking for a Valentine's Day Gift?

My chat with Fitbit on Feb 7, 2017, where I pretend to have a gf to get info :-) 

Forget roses--most women would rather have a Fitbit. Not the watch--just the slim band. Try the Alta, and remember: you can change colors and sizes. Don't get small if your gf isn't small :-)

The website is HERE.  As of February 7 2017, Fitbit is offering 25% off and free 2-day shipping for Valentine's Day.

Disclosure: I own stock in Fitbit, but my positions may change at any time. There's a lot of competition in the fitness band and watch space--I just ordered myself a Garmin Forerunner 35, but that's because I had a retailer coupon, and the retailer didn't carry Fitbit.  The watch I ordered--not to be confused with the "cuter" band--is more expensive, but it has GPS.  I haven't worn a watch in many years, but I couldn't resist trying one with a GPS and heart and sleep monitor.  I'm not looking forward to adjusting to what must be a tight wrist fit to get all that data, but the unexpected coupon persuaded me to take a leap.

Fitbit seems to be more popular because it has an active online community and allows more customization--I couldn't choose any colors or sizes for the Forerunner watch, and this particular product doesn't sync with an app (Connect IQ) allowing customization.  If you're looking for a similar Fitbit product, check out the Blaze.

Update: in a genius marketing trick, most women will in fact be wearing the "small" size.

5.5" - 6.7" for small
6.7" - 8.1" for large
8.1" - 9.3" for XL
These are all wrist circumferences as well. 

Update: I just found the sizing link.  The link to the information is HERE in PDF format.

Kareem Abdul-Jabbar on NY vs. CA

From Seth Davis's Wooden: A Coach's Life (2015, paperback) 

Back when Kareem Abdul-Jabbar was named Lewis Alcindor, he traveled to UCLA from his hometown of New York.  In Abdul-Jabbar's case, it looks like you can take the man out of New York and change his name, but he'll always be a New Yorker.  

Non-Selective Legalization of "Sin"

Below is an interesting discussion from Facebook re: legalizing sex work.

Legalization involves two primary questions: 1) do you want the government to generate taxes from in-demand activities and use those taxes to battle unregulated activities; or 2) do you want the middle class to fund an ever-expanding war against mafias who have no competition outside of themselves, a matter easily resolved by cartels and territory carveouts?

CK: [Posts link to National Human Trafficking Day]

MM: One solution is to legalize solicitation, use police resources to protect sex workers, and tax the activity. Am I the only person who thinks it's counterintuitive to make x illegal when x has always had high demand, then raise taxes to fight x while criminal elements profit from x, requiring taxes to be raised continuously to combat illegal demand? What is more preferable? A continuously expanding police state that's almost always at a disadvantage against more profitable criminal forces, or legalized solicitation as a taxable activity and lower profits and influence for criminal groups (who now have competition)?

CK: What about the girls who didn't have a choice in the matter? It's why it's called human trafficking. [And] Making it legal is going to somehow make the pimps less greedy and take less girls because more women will voluntarily be sex workers because it's legal? I don't think so.

MM: If legalized and taxed, wouldn't such women have more choices and places to get help in the "formal" economy rather than being completely trapped in the informal/underground economy? Remember: by taxing the activity, more funds would be available for social services as well as police. Right now, taxpayers are revolting against government programs that do not directly benefit themselves because they see higher taxes but not better quality of life.

Playing cops and robbers in the modern era by raising taxes on law-abiding residents is backfiring by creating more debt and/or unchecked police expansion. The police simply cannot keep up against better funded, better equipped criminal groups, requiring them to demand higher taxes to expand capabilities; and to partner with federal agencies, losing some independence. By taxing an activity that already occurs due to high demand--and assuming political corruption is kept to a minimum--an independent revenue source would make it easier to fund social programs that help the very people you intend to help, but without the spectre of a continually expanding police state.

The police and federal LE agencies would still combat human trafficking, but they wouldn't be at such a disadvantage in doing so, and they wouldn't be in a position where their interests diverged from local taxpayers.

MM: You wrote, "Making it legal is going to somehow make the pimps less greedy..."?

In a way, yes. When the government competes wth criminals, they can put the criminals out of business. No pimps means better recourse for women who are in this industry. Whom would you rather regulate sex workers? Someone like you, subject to specific legal procedures, or an unregulated pimp who can use violence?

Remember: women who are trapped are still going to be helped, but with greater tax revenue, more middle-class taxpayer support, and less shame, because their activity will be somewhat "normalized" via gov fiat and will be under a more sustainable tax funding system.

You're also missing a key benefit--under legalization, police resources cannot be used against sex workers under any scenario. In fact, the reverse occurs--sex workers would be able to trust police, knowing that no court could possibly fine or jail them.

GL: According to countless studies, the vast majority of women who "volunteered" to be sex workers were sexually abused in the past. Healthy people don't do things like that for money. It's degrading, disgusting, and harmful to everyone who participates in it, whether they are willing to admit it or not.

MM: So what's your plan on eliminating sexual abuse? It's as if you're saying that the vast number of car accidents are caused by drunk drivers, so obviously we need to ban alcohol. It didn't work in Prohibition because the demand was still there. As long as demand for something [nonviolent] exists, we can either cede its business (and profits) to underground forces, or we can try to eliminate or weaken them through direct competition.

GL: Thank you for your question, and especially for writing respectfully about an issue on which we disagree. Here are my thoughts: "Ua Mau ke Ea o ka ʻĀina i ka Pono."

This is the state motto of Hawaii. It can be translated as "The life (or sovereignty) of the land is perpetuated in righteousness." Only by doing what is right can our communities, our nations, and our civilizations be preserved.

Demand for something evil is not a legitimate argument for its legalization. For example, there is a demand for hit men (murder for hire), and has been since time immemorial. While enacting and enforcing laws against this evil may not eliminate it completely, this course of action is infinitely favorable to the alternative of making our government by the people implicit in murder.

I respectfully refuse to concede that the best way to eliminate evil is to compete with it on its own terms. As Dr. King so eloquently stated, "Darkness cannot drive out darkness; only light can do that."

To your question on how to stop sexual abuse, I would highly encourage you to read the fightthenewdrug.org website. The movement is modeled after the anti-smoking movement, which reduced demand for tobacco from roughly 42% of the U.S. population to just 15% today, all by promoting awareness. Fight the New Drug has tons of great examples, success stories, and research-based ideas for combatting the abuse that is the foundation of sex for money.

MM: Thank you for your response. I've amended my comment above to specify that I meant demand for nonviolent products or services.

Once upon a time, Americans believed alcohol was evil. Who gets to decide what is evil? IMHO, the issue is whether the service or product is unduly coercive, which eliminates any violent products or services from the legalization discussion.

Your argument is more nuanced. You are essentially arguing that sexual services are the result of violence and are therefore a product of coercion. Such an argument fails because it is too broad and gives unchecked discretion to gov officials. For example, a paternalistic gov could ban violent video games because they are inspired by violence. Yet, something is not evil merely because it is connected to violence or evil--otherwise, all militaries would be banned.

To truly achieve a viable solution against coercive services and products, we must focus on services that directly compete with them and that seek to remedy the direct violence or evil that creates the services and products you dislike.

Legalization of drugs and sex is one path that creates direct competition and in doing so, weakens the underground entities' ability to use violence (pimps, etc.) to support their businesses. Using the new tax revenue from such legalization would also allow the greater social services you support, and in a much more consistent manner. Over time, if the social services are done properly, and if your premise is correct about the reasons some people participate in sex work or use drugs, then the evil you seek to destroy would be destroyed.

If such an endgame is achieved, however, it won't be done through ever-expanding cops-and-robbers battles between gov and mafias, where cutting the head of the current mafia or cartel boss merely results in another leader entering the void. It will be done through better economic opportunities for all persons and through more sustainable and politically viable ways of funding social services, such as increased tax revenue from legalization.

Bonus: more here on the specifics of legalizing prostitution.

Bonus: I just watched a documentary on human trafficking. The problem is that once taken away from their parents, teenagers or younger women are isolated and under threat of constant violence because the pimps don't leave their side and confiscate their phones. They are too ashamed to call their parents, and do not trust the police.

One solution would be to designate all hospitals as "safe spots" for trafficked persons. If a person shows up and says she's a trafficked person, the hospital staff must immediately assign a guard to her and alert a social worker. The social worker would open a case file, work with the police, and provide shelter until the woman could be reunited with family.  If the person has no family or doesn't want to return to her family, then she would be given access to the same social services as others and/or a woman's shelter. It is surprising that as of now, there are no universally accepted places where trafficked victims may seek safe shelter without threat of prosecution or forced interaction with police.

Bonus: watch Bigger, Stronger, Faster (2008) for an eye-opening view on steroid regulation. 5/5 stars.

Does Mill Valley's Mayor Jessica Jackson Understand Economics?

Today, I spoke with Jessica Jackson Sloan, mayor of Mill Valley, California. After listening to an hour of her speech at Santa Clara University--basically lifted from the Netflix documentary, 13th, with some personal anecdotes about Van Jones thrown in--I approached her afterwards to get more information.

She is against mass incarceration but supports police unions: "Police unions are not the problem."

She is pro-legalization of drugs but admitted she focused on the effects of criminalization rather than the cause: a failure to legalize some drugs, which would take power away from overzealous judges, D.A.s, and police officers.

When pushed further on the topic, she said her constituents don’t support legalization. In her one hour speech against mass incarceration, she failed to mention "legalization" once. Claiming to be anti-mass incarceration but not focusing on anything that will remove excessive government discretion in making arrests creates a cycle of well-intentioned failure. Drug criminalization, after all, has been increasing incarceration rates since the 1970s as part of a deliberate government strategy. Now it appears even if some drugs are legalized, anti-immigration government actions might replace the "lost bodies"--and reasons to continue diverting tax revenue to public safety jobs rather than lower tax rates or other services, such as parks and recreation or social welfare.

It's time for politicians to understand drugs are a business and partly a response to certain groups being excluded from the "traditional" job market due to factions and vested interests, especially within the government. As long as public safety unions take 50 to 70% of most cities' tax revenue, it's almost impossible to be against their growth and also benefit from the tax largess they control. Now that some taxpayer money is going to outside contractors and non-governmental employees in an attempt to reduce incarceration costs, some politicians suddenly feel more comfortable being anti-incarceration. Interesting coincidence, that. What's the motto in California government? That we, the government, can make all the money we want and give ourselves pensions at 7 to 8% guaranteed rates on the backs of taxpayers, but God forbid the private sector try to do our jobs more efficiently?

I found out later that Jessica "Government is not the Problem" Sloan, a former government lawyer, is married to a unionized firefighter.  

Bonus: I thought it would be useful to add a quick finance lesson. The 7 to 8% guaranteed return necessitates an unholy alliance between government unions, banks, and Wall Street. Why? Any guaranteed return requires stocks and dividends to rise perpetually to provide the gains necessary to keep pensions afloat, or both government employee contributions and taxes must rise to levels that will create discontent. (Notice how your sales taxes keep going up?)

Government unions can't openly admit to such an alliance, so they spend money on PR to trick voters into channeling their anger towards Wall Street when government unions--as well as the rest of us--rely on bankers because the modern American economy is heavily debt-dependent post 9/11.  The difference is that private sector employees--unlike government union employees--don't get to raise taxes or demand their employer issue debt on everyone else in their community to resolve any gap in the expected rate of return and the actual rate of return.

In a world where government unions can lobby to impose investment benchmarks enshrined in law and unrelated to any real investment return, the individual isn't effective in the democratic process--even when lobbyists' demands are unsustainable in the absence of the government's ability to issue more debt or increase taxes.

© Matthew Mehdi Rafat (2017) 

Update in April 2017: "Approximately 150 million people workin the United States; 130 million work in private enterprise. We hold in high regard the 20 million people who work in government--teachers, policemen, firemen and others. But we could not pay for those jobs if the other 130 million were not actively producing the GDP of America." -- James Dimon, J.P. Morgan Chase 2016 Annual Report