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How to save Canada's manufacturing from disappearing

已有 6294 次阅读2016-5-18 07:19 |个人分类:Frank's Writings

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   Philosophers have hitherto only interpreted the world in various ways; the point is to change it.         --- <Theses On Feuerbach>  Karl Marx in the spring of 1845 

How to save Canada's manufacturing from disappearing

    Frank May 18, 2016, in Waterloo, Ontario, Canada
       Updated in July 19, Sep. 5, 2017, Mar. 19, Dec. 29, 31, 2018. Jan. 8, 17, 19, Oct. 29, Dec. 6, 2019, Jan. 3, 2020

   Observing reality is most painful things. Recalling and writing such an article is a spiritual torture. Because of I can be only in worrying, but am powerless in changing.   
   Firstly, please look at the shocking reality of Canada's manufacturing declining:
   The ideologies, such as, values, freedom, rights, unions; social polarization, their starting points are good, but, the social outcomes are bad. So, I called them as confused ideologies.   
  The cause of Canada's manufacturing decline is nothing else, but the mess in corporate management, since it has been in confused ideologies kidnapping by the reckless brain defectives.
   In the Era of market economy, living space has changed into market space from geographic space of agricultural economy; the decline of Canada’s manufacturing is in destructing the living space of Canadians.   
   According to 17 years intended work-experienced cases of the closed and out-relocated manufacturers in Canada, this article analyzed the cause of the decline of Canada’s manufacturing industry and discussed the potential measures for reviving it.
  In writing...

               Contents

      Introduction














    People confidently attribute the decline of Canada’s manufacturing industry to global recession, especially, that low oil price heavy dragged oil production related industries; however, the sad facts that low productivity and high cost in goods making among developed countries was actually no business with recession and oil price, according to my observation, which was just the main cause in declining manufacturing industry.

   The low productivity and high cost in goods making was simply caused by improperly dealing with brain defects induced reckless behavior under the misleading of confused ideology and wrongful legal protection on the rights, the freedom, and more, but never consider the protection of productivity that is involving the survival of Canadians.

   MRI brain scan reveals that any specific behavior of human beings is controlled by specific population of brain cells; any abnormality in human behavior was caused by abnormality in brain structure, it is the quality of brain structure in determining the quality of human behavior. MRI brain scan also reveals that some people have brain defects; which means that is not all people in human feature are with proper human nature. Therefore, social governance must take into account of the quality of the brain of social member to deal with social problems by seriously viewing at human or inhuman, violence and antisocial, rather than wrongfully emphasizing at moral or immoral, freedom and rights.
   
   It was that defected brain in mal-signaling people boldly troublemaking with poor work ethic in workplace caused low productivity and high cost in goods making.

   People hate social polarization with arguing that the Rich is too rich, the Poor is too poor, with ignoring the actuality of that the wealth of the Rich has mostly invested into the means of production for organizing social productions, by which create jobs for people’s living making and revenue for government’s social governing in playing the role as public wealth to be shared by the Poor.
   
   Viewing in this pure way without the selfish purpose for pleasing voters or for personal benefit by cheating public; I am sure that rational people would understand the fact that Rich was not rich as condemned, the Poor was not poor as complained.

   The convincing facts suggest that so called social polarization was a typical false proposition. At least we need to distinguish that whether the wealth comes from the organization of manufacturing of material wealth in the real economy, or from the speculation of plundering on the real economy by financial instruments of making money by money.

   In comparison with the time of industrial revolution in centuries ago, in nowadays, society has legally enforced comprehensive social welfare and protection for labors with comprehensive regulations on manufacturers. In such a updated situation, the ideology of social polarization has outdated and lost its positive significance. But, even so, the argument of social polarization has been increasingly intensive, why?

   The answer was with somewhat non-upright, even filthy; it has been used as justice coat by various people for various purpose, in which, the most of them is for private interest concern there few of them are good for public concern for developing economy and thus there few of them are good for improving the life of the majority of people.

   The most bad was to be used to arouse public hatred mentality towards entrepreneurs and their invested manufacturers; especially, the politicians even mal-legislated to fight against social polarization, which has been legally encouraging brain defectives striking for more by doing less, and boldly trouble-making in workplace, due to the fear to be prosecuted, management staff dared not intervene the reckless behavior of brain defectives.

   It was that mal-ideologies and mal-legislations in encouraging brain defectives recklessly destruct the manufacturing industry of Canada.

   Perhaps you would be offended by my categorical conclusion, but, I am sure, later, you will be convinced by the fact that the good manufacturer NCR Waterloo has to be Mexico relocated, simply due to the boldly trouble-making of the brain defectives.

   Canadians have to establish a mind with that, only, the competitive manufacturing is able to create living space for own survival; in which, entrepreneurs are the basic organizer of manufacturing; they are in hardly striving for make living support of public; without entrepreneurs, without manufacturing. All Canadians, especially the Gov-officials have to respect and protect entrepreneurs in all possible; by digging out the brain cells that were in memorizing the harmful concept of social polarization.

   In consideration of the vital importance of manufacturing, any argument, any action, especially, any legislation that may negatively affect the development of manufacturer is the most serious criminal offense in badly ruining the life of Canadians.

   In fact, due to the inertia of people have used to habits, that eliminate the long harm of the social polarization is not easy, but, we can mandatorily mend it according to the convincing inspiration of 3M Canada saves energy 30% by ISO50001, in which process, the ISO management standard shows the magic of the accountability by tagging responsible tag on the forehead of each individual to enforce everyone work properly without people dared to protest.

   The slave style management of accountability is not perfect in the promotion of outstanding manufacturing.

   Feb. 9, 2014, in viewing the poor corporate management of Canada, I once wrote article management is the art of playing human nature to have indicated that: human behaviors are determined by dual natures: the natural (animal) nature of those inborn selfish instincts and the cultural nature of those acquired altruistic qualities; the Management is the Art of playing human natures, which is to finish purposeful tasks with human culture nature by meeting human greedy of animal nature with payment under the enforcement of regulations.

   The outstanding world class manufacturers and well governed countries were all good at playing human nature by attaching importance in motivating the maximal exertion of intelligence of people by contribution linked bonus, especially, that ensures the bonus into the hands of the contributors in 100%, so that their people full heartedly make creative work with greater contribution to promote manufacturing to be outstanding; which provides perfect inspiration for Canada.

   For reviving manufacturing, Canada has to legislate those optimal management methods, thereby enforce manufacturers proper implemented for motivating people productive work, thereby water down the negative effect of wrongful ideologies and improper legislations.

   The legislation in corporate management is essential for reviving manufacturing industry; especially, in Canada, only legal pressure can drive those management staff to step with the step of government desired and break their harmful habits of thinking and behaving according to own preferred arrogant accord without sober conscious for reasoning whether conducive to productivity.

   For reviving Canada’s manufacturing; based on existing successful experiences, there were some measures would be feasible with enough potential to get rid of the constraints of populist kidnapped democratic play.

1.. Accountability for behaving control

That 3M Canada saves energy 30% by ISO50001 shows the magic of accountability for reversing Canada’s incredible low productivity by tagging responsible tag on the forehead of each individual to be punished or rewarded accordingly, which also, more significantly, has inspired us an easy-simple way to cash out huge potential profit that low productivity has reserved socially.

2.. Incentives for motivating intellectual

2.1.. IBM patent invention tops for 24th consecutive year was stemmed from patent reward system that provides bonus to inventor in $1500 for first patent, in $500 for each subsequent patent, with Plateau Award in $3600 for the accumulation of four patents, even in $10,000 to $100,000 on some circumstances.

2.2.. German export surplus hits record high again and again was derived from legislated management in rationalization proposal, which was to provide bonus to contributor with the extracts in 10% – 25% of first years cost saving. For those proposals of the cost savings uncountable are also with certain bonus.

3.. Some of good management methods

3.1.. BPR - Business Process Reengineering: that was focusing on the analysis and design of workflows and business processes within an organization to dramatically improve customer service, cut operational costs to make operators work according to processes, standards and regulations of the system in detailed instructions, to replace that of taking orders from management staffs.

3.2.. Amoeba: it was a Management System that is in general groups of 5 to 50 people with a clearly defined purpose of making profit. Profit is measured using this simple formula: profit per hour = (sales - cost) ÷ working hours. It is calculated in each Amoeba with the goal being to identify and maximize profitability per hour on a monthly or annual basis.

3.3.. Evaluates employees' work performance by Computer: the operators take the semi-products to work individually without tasking in advance; the first step of operators was to take the Work Log to go to a scan-machine that looks like a telephone hangs on the wall, to scan own palm print, enter own work ID numbers and scan Work Log barcode, and then start to work. After finished whole container of products, to repeat the first step again as an important procedure to entirely finish one container products. After palm print scan and input the data, in the bottom of the screen of scan-machine will appear the words of Rank, and followed by a number. I guess that it was the work-efficient rankings. Which is easy for identify job efficiency of operators.

3.4.. Profit shared with employee: the idea of profit-sharing with employee was initiated by Mr. Don Kilimnik and Mr. Rob Curik, the founder of DC Foods Waterloo. At the start, they took 5% of profit as dividend equally to all employees quarterly with the simple purpose of employee can share the fruit that they hard made. Later, due to staff’s absenteeism seriously affected normal production, then the distribution of profit-sharing linked to the attendance of employees.

3.5.. Work performance linked payment: suppose in the cashier machine manufacturer NCR Waterloo to take 3 machines as basic task of a team in per shift, after finished first 3 machines, to pay each operator bonus as the fourth one pays $6, the fifth pays $9, the sixth pays $12. Thus would incent the operators to work with full-load. In this way, every day will make extra profits from three extra machines by only extra payment of $189 for total 7 operators, which may only a little bit compared with gained extra profits. If it did as so, the NCR would be still running in Waterloo, Canada, rather than in Mexico.

3.6.. Video demonstrates the practice of Industrial engineering: according to my article The cost saving by industrial engineering in Quick Frozen Foods processor to make teaching video in step by step to show that how to find the problems on equipment and how to improve them by easy simple way, thereby reduce the waste and increase productivity.

4.. The enterprise internal patent management system: So called Enterprise internal patent management system is to copy the model of the national patent system to protect the intellectual creation of the employees, with setting a management system for those initiative ideas that do not reach the qualification for normal patent application yet, to be registered in archive as a record to show that who is the original contributor for the new ideas to ensure the inventors can get their share from extracted bonus after the commercialization of the ideas. The related management staff has to get their award from management spending of Company rather than sharing the bonus from the innovation. That allows management staff taking away the bonus of the innovation will totally destroy the enthusiasm of the staff for invention and innovation, which is one of reason that failed RIM.

5.. The federal government organizes teams to conduct investigations on NCR, RIM, and those existing enterprises, based on the results of the investigation to make targeted legislation.

6.. Gov-funded R & D center: Taiwan’s Industrial Technology Research Institute (ITRI) is a non-profit R&D institution that Gov-found in 1973 and later self sustained. Its practice is new tech R & D and business incubator by spinning off the matured research achievements with related researchers together as independent enterprises, and to have created more than 228 start-ups and spin-offs with over 140 CEOs, among them many are world-renowned high-tech companies, such as TSMC and  UMC. The Gov-found non-profit model can ensure the R&Ds future oriented by avoiding the pursuit of short-term profits, and the earnings can be used for new R & D investments rather than to be distributed to the shareholder hands. The ITRI also acted as think-tank with open Laboratories to provide full serve for small and medium sized enterprises to form industry clusters and drive Taiwan developing as one of The Four Little Dragons. Now, China and the United States have been both eagerly replicating the model in a large number of.

7.. Set Economic Zone to facilitate quick flexible policymaking for conducive business operation, and avoid the harm of the speculation on real estate by restricting the activates that take land and housing as gambling chips to push up the cost in business operation, which has badly affected the economy of Vancouver and has been also ongoing throughout Canada.

8.. Canada Pension Plan must develop as in kind base and key body of state-owned economy by investing for income-generating and value-hedging towards risk-controllable and return-predictable real economy from gambling luck in the market of stock, bond and the projects of other countries, which is in funding the economy of others by own valuable funds that are urgent needed also in Canada. 

Sometimes, the over smart may lure people into non-smart, the investment way of Canada Pension Plan CPP has been in such a play. By a simple improvement in the investment of CPP, Canada will get huge amount of financial resource for developing real economy rather than just considering budget deficit. Thus perfect the economic development of Canada in multi-coordinated and mutual-supported.

9.. The planting and processing of botanicals OTC medicine: Recent years, the Traditional Chinese Medicine based natural medicine has been popular globally, so the farming and processing of natural botanicals OTC medicine will be promising emerging economy; such as, Feb. 2011, the article Global Prices of Traditional Chinese Herbs Rising reports that: in 2010, the price of the herbs used in TCM increased much higher than usual. TCM products sold in 2010 in China—especially in Northern and Eastern Chinese cities, such as Anguo and Shanghai—most of which were medicinal herbs, doubled in price (on average). 

The prices of certain ingredients and particularly popular herbs have raised considerably higher, some raw herbal materials and finished herbal medicine products have supposedly seen price spikes as steep as 700% over the past year. 

In Canada was as same as other countries have issued policies for promoting the OTC use of traditional medicine, and FDA has accepted the idea of traditional Chinese medicine idea.

10.. Reopen Electro-Motive plant in London: In current economic situation, it is difficult to create new jobs, for the 450 job positions of Electro-Motive plant in London, we should cherish. From the fact that Caterpillar to close Ontario locomotive office until Dec. 31, 2015 in 3 years later since it closed the plant in 2012, which was announced in Oct. 15, 2015, it was in advance of two months to deadline, I firmly believed that Caterpillar was still with the hope of reopen the plant in London, so that they gave enough time for Canadian government to deal with this issue. 

There was other proof, in final closed office, they kept 50 people since 2012, which includes locomotive testers, design engineers and production planners, and they are the essential staff for reopening the plant. Long-time laid business foundation - sound production systems – well equipped equipments and well skilled personnel, matured products under a matured market. For any business, it is hard to be broken away. I firmly believed that, for keeping Caterpillar’s London plant to stay in Canada, we still have room for making final effort.

……

And more,

The social governance or corporate management is an art rather than a rigid dogma; there is plenty of room for artistic creation in perfecting practice. 

With rationalizing in ideology and utilization restructuring social resource, especially, honest-modestly study and practice of those successful governing methods of other countries, Canadians can also achieve those Germans achieved outstanding in manufacturing to create a broader living space with a prosperous future.

Important Note: In the Era of market economy, living space has changed into market space from geographic space during the Era of agricultural economy; the decline of Canada’s manufacturing is in destructing the living space of Canadians. For reviving manufacturing, we have made many efforts, but, few got actual effects, the reason was at that only focused on technology, such as, funds support, labor training, tax cut, and the like; but, ignored the decisive cause – brain quality and misused ideologies.

In this article, I am boring talkative, only for correcting confused ideologies; I knew that it is difficult, but, I have to do my best to overcome it; since that the correction of ideologies is vital essential for reviving manufacturing industry; under this purpose, in this article, whatever efforts, I cannot satisfy the interests of all social aspects and thus may inevitably infuriate-offend some people; and which will inevitably cause trouble for me; but, as a Canadian, in anyway, I cannot stand in selfish concern, but, have to speak out.

On other hand, if, we are only because of personal concern to avoid touching some taboo topic and some sensitive social issues to let them continuously destructing the development of competitive manufacturing, let them continuously destructing living space of all Canadians, actually, we are in acting as accomplices of criminals. If every Canadians insist as nice man without touching and solving harmful social problem, it is in foolish self-destruction, which should not do by a qualified human member.

Now, I only can do for myself is to make a declaration: What I talk in this article, some uncontrollable impolite tone under worried mind for unsatisfied reality, argue about taboo sensitive social issue, there was no any intention for praise or belittle of any one or any organization, the only hope was by viewing the actuality and lessons to explore a feasible way to make a better life for all of Canadians.

All Canadians, especially policymakers, have to wake up with a sober conscious of that a poor social environment as that of happening in Greece will be no good for any one, especially for our beloved next generation, we have to think that what kind of Canada leave to them from our hands, which is common issue faced by every Canadians; no matter how Rich and how Noble of the person is, no one can be exceptional.

It is totally wrong with a mentality of those things are not my business.

    Introduction

     People hate social inequality and unfair with arguing that the Rich is too rich and the Poor is too poor. But, that is not biggest social inequality, the tragedy that Greek Pensioner shoots himself to refuse to search for food in garbage has redefined social inequality: 

    The biggest social inequality is that rich individual with poor government.

    The biggest social unfair is that a society is in favor of individual rich while government poor.

    The saddest tragedy is that government of a nation is too poor to provide basic life-support for their national.

    Greece, the one of cradles for human civilization, once produced pioneering ideas and valuable practices in social governance in earliest.

    In ancient time, around the fifth century BC, Greek develops Athenian democracy and is often described as the first known democracy in the world.

    In modern time, from 1950 to 1973, Greek made a economic miracle with sustained economic growth by an average of 7.7%, second in the world only to Japan.

    However, in recent years, as industriously created modern rich country, Greece actually declined as a beggar of the Europe.

    May 01, 2010, EU, IMF agree $147 billion bailout for Greece.

   Jun. 17, 2011, Greece’s 2010 bailout falls flat, puts nation back on brink of default a year later.

    Mar. 10, 2012, Shock in Athens: People Find Food in Garbage Bins.

    Apr. 04, 2012,  Greek retiree refuses to eat from the garbage, publicly commits suicide.

   The sadder was that, when the indebted government of Greece hardly begging foreign money in; there was large number of flowing private money out; the facts show that in Greece was not no-money at all, but, being put into wrong place.

    Jul. 4, 2015, article Greek debt crisis: Photograph of elderly man collapsed outside bank reveals pensioner's despair reports that a heartbreaking photograph of an elderly man collapsed on the ground openly crying in despair outside a Greek bank, his savings book and identity card strewn next to him, has captivated people around the world.

                            

   77-year-old Giorgos Chatzifotiadis  had queued up at three banks in Greece's second city of Thessaloniki in the hope of withdrawing a pension on behalf of his wife — but all in vain. When he went to a fourth bank and was told he could not withdraw his 120 euros ($180), it was all too much and he fell down in tears.

     Mr Chatzifotiadis said he broke down because he cannot stand to see own country in this distress; he feels so beaten, more than for own personal problems; due to both he and his wife, like many Greeks in the north of the country, had spent several years in Germany where he "worked very hard" in a coal mine and later a foundry.

     And it is from Berlin, which has been blamed by many in Greece for its hardline stance in demanding the government of Greece impose more austerity measures for fresh international aid.

     "I see my fellow citizens begging for a few cents to buy bread," he said; "I see more and more suicides.”

     "I am a sensitive person. I cannot stand to see my country in this situation.”

     Mar. 10, 2012, there was a report that Shock in Athens: People Find Food in Garbage Bins. April 4, 2012, a report that Greek retiree refuses to eat from the garbage, publicly commits suicide.

     Follow were the photos that I searched online when writing this article.


     

     Greek citizens look for used clothes in 2015.                 Greek citizens dumpster dive for food in 2015

     The photos made me tearful. Industrious Greeks have to suffer the result of the ignorance in social governance.

     The sadder was that, when the indebted government of Greece hardly begging foreign money in; there was large number of flowing private money out; the facts show that in Greece was not no-money at all.

     Shocked by the decision that Saskatchewan of Canada stops pension funds from buying farmland, in June 3 – Aug 16, 2015,  I once wrote article Canada Pension Plan must develop in kind base and as key body of state-owned economy, in which I indicate that “it said that Greece is a developed country with high standards of living and high Human Development Index, the diligent and wise Greeks once created economic miracle in the period of 1950 to 1973, the economy grew by an average of 7.7%, second in the world only to Japan.” 

    “No one would be expected that such a wealthy country, Greece actually took place the sovereign debt crisis.”  

     The tragedy of Greece shows us that, without a proper social governance will be no stable social environment, no matter how Rich an individual is, he or she would never be able to enjoy a life as the Rich should be, besides the fear of life threats.

     Feb. 11, 2010, BBC article Europe's PIGS: Country by country said that PIGS is a horrible acronym that financial markets refer to the troubled and heavily-indebted countries of Europe - Portugal, Ireland, Greece and Spain.

     Besides the PIGS, some analysts use PIIGS to include Italy and PIIGGS to include Great Britain.

     Although the title of the PIGS was from the economic point of view, however, the poor reality is inevitable to induce people to associate it with animal pigs that are fond of eating but averse to work.

     Obviously, such a title is unreasonable for the industrious ordinary people of those countries, such as, above 77-year-old Giorgos Chatzifotiadis, both he and his wife, like many Greeks in the north of the country, had spent several years in Germany where he "worked very hard" in a coal mine and later a foundry.

     The governments world widely are efforts hardly to improve people’s life by developing economy; however, the tragedy of Greece shows that the process of developing economy was difficult as that of climbing the mountain of Himalayas, but, declines economy was as easy as that of jumps down from the Himalayas.

     Later I will further discuss why that Greece developed as the worse one in the PIGS by the comparison with Germany that now is acting as savior of those indebted countries, at the time, many countries complain that global economic recession dragged own economy, Germans has been creating exports surplus in record high again and again.

     The meaningful point was that Germany was once called as the sick man of Europe with negative economic growth of - 0.4% in 2003, which was just better than that of other negative growth country – Portugal, but, revived by deep social reform under Agenda 2010 that started in 2003, which was former German Chancellor Gerhard Schröder exchanged by own political career.

     The noble unselfish behavior of Chancellor Gerhard Schröder proves that it is the personal quality of politician in deciding the development of the national economy and thus affecting the fate of his people.

     The decline of Canada’s manufacturing has caused the loss of jobs and revenue, which was in replaying the play of the Greece; in swallowing Greek failed road dust, in ruining the life of Canadians. Dec. 7, 2015, CBC reports Suicide rate in Alberta climbs 30% in wake of mass oilpatch layoffs was a convincing proof.

     Faced with such reality helpless, years ago, the Prime Minister Justin Trudeau and Vancouver Mayor Gregor Robertson were both expressed their deep disappointment for the incompetence of democratic governance and showed strong appreciation for the economic achievement and the high efficiency of the governance of China. However, they have been violently attacked by public opinion, and finally, had to explain as apologize.

     Shocked by the ignorance of some Canadians, Dec. 15, 2014, I wrote article Justin Trudeau appreciates executive power of the China's Government to indicate that:

     “I write this topic today without any political purpose, instead, I eagerly hope that people can rationally give up no sense and ignorant ideological bickering on the political forms – multi-party democracy or one-party in power, but, to look at the actual social governance. To put valuable energy on true worthwhile matter, to consider that how to develop economy of Canada, and how to strive for avoiding to be starved to die, while the depreciation of the Canadian dollar with the oil wealth lost value.”

     “Irrational people are mostly ignoring the nature of the problem, they never ask that: why do we want a government, why do we want the democracy? What is the ultimate aim of the government or democracy?”

     “The only ultimate aim of the government or democracy is to proper govern society, is to proper develop economy, and is to improve people’s lives.”

     The sadness of a country is that its people having frantic passion to make meaningless arguments while lacking basic consciousness for improving own life.

     It is the sadness of a country to be filled with the people who make livings by demagogic rhetoric, but paid by hindering rational social governance and economic development.

     This is the reason that I am so talkative in writing this article.

     For avoiding such kind of useless argument in reviving Canada’s manufacturing, we have to explore a way that will be acceptable in both officially and socially.

     In which concern, that 3M Canada saves energy 30% by ISO 50001 provides a good inspiration.

     In China, as a senior engineer in metal material, I once participated in the drafting of the application documents of the ISO90001 for Oil wells drilling pipe with deep impression that ISO management is in strict accountability as that of put responsible tag on the forehead of individual for exact punishing or rewarding, it similar with that of the enforcement of national laws on social members.

     Everything has two sides, the low productivity is also with positive side, the success of 3M Canada revealed huge profit potential that low productivity has reserved in Canada socially and provided us easy way to cash them out.

     Here, I have to emphasize that, as mentioned in above section of Summary, the key for a perfect corporate management is not mainly in the strict accountability, but rather, the more powerful means that can largely improve productivity is to motivate fully exertion of intelligence of all staff by contribution-linked incentives to meet human universal inborn nature – selfness and greed, thereby overcomes various unfavorable factors naturally.

     If in Canada, we also practice the measures of contribution-linked incentives in corporate management, the manufacturing industry will be also successful as that of Germany in never decline.

     In section 11.. The solution for helping manufacturers running in Canada, I summarized some good management approaches, Canada must legislate them for enhancing the corporate management.

     Legislation is for overcoming the inborn weakness of human being – tend to be doing on own preferred accord with less sense to study others, thereby ensuring the perfect practice of those successful measures.

     The power of State Apparatus must be applied in the ever important sector that has been wrongful ignored.

     For this point, there is necessary to say a few words.  

     Today, there have been many books and reports on various management methods that can be said in overwhelming, for such good management approaches, entrepreneurs should be actively implemented voluntarily, why Germans have to be legislated; why that ISO set management standards and entrepreneurs are willingly to practice by paid good money?

     For such a simple management methods, why entrepreneur themselves cannot be practiced without the help of legislation or ISO?

     To answer this question, we cannot simply consider the issue of personal ideology, personal ability, personal morality, or personal sense of responsibility, but the common weaknesses in the inborn nature of mankind, which is not easy to be consciously overcome. Such weaknesses have to be made up by some measures with somewhat enforcement in corporate management and social governance.

     If there was no the mandatory of legislation in Germany, there was the mandatory of ISO50001 in 3M Canada, no matter how good management methods are, they cannot be effectively implemented. Harsh mandatory or strict enforcement is essential for the success of any businesses, in any countries.

     Therefore, I propose that government of Canada has to enforce the application of the optimal management methods by legislation.

     Even so, the problem is far from settling down; there were still thorny problems in understanding brain quality dominated human quality and the argument of social polarization induced confused ideology.

     For reviving manufacturing, the improvement of the low productivity and lower down the cost in goods making were the key; for achieving this goal, the ideological rationalizing is the essential; we must establish the right ideology as guidance.

     For this concern; over the years, I have written many articles to talk about, in folder Frank's Writings of my Blog, there were some of my writings.

     Today, in writing this article, again, I am talkative, for the rationalization of ideology.                                                                                                                                                                                                    Back to Top

1.. It is confused ideology encouraging brain defectives destruction of Canada’s manufacturing

Recent years, for reviving declining manufacturing industry of Canada, the Gov-officials and social-elites have been striving hardly with a lot effort, but few practical effects; some people blame this on the global economic recession; but the facts were not fully supporting such self-deceptive excuse.

Follow are the Illustration diagram in Balance of Trade of Canada (Left) and Germany (Right), which is the best example in reflecting the state of manufacturing industry.


       

        Left:  Canada Balance of Trade 1971 – 2017  https://tradingeconomics.com/canada/balance-of-trade

        Right: Germany Balance of Trade 1950 – 2017  https://tradingeconomics.com/germany/balance-of-trade


The manufacturing industry of Canada was in sharply declined after the impact of 2008 financial crisis, and then was worsening with record low in the most of time, but, at the same period, the manufacturing industry of Germany has been growing with record high again and again.

The achievement of natural resources scarce Germany has clearly reflected that the decline of the manufacturing industry of natural resource rich Canada should not be fully due to the uncontrollable objective factor of global economic downturn; there must be some controllable subjective factors.

For well understanding corporate management of Canada, in past 17 years, as general labor, I have worked in many different manufacturers, among those manufacturers; there many were closed or out-relocated, as my personal experience, the main cause for the failure of those manufacturers was not in the poor economic environment; not in the uncompetitive of products, not in the shrink of market, not in the shortage of funds…; but, simply, in the poor corporate management, which was not mainly because of the ignorance of the management staff, but the poor social environment – outdated legally encouraged trouble-making of the brain defectives, and the misleading of confused ideologies.

As my observation and analyses, the cause for the contrasting difference in the development of manufacturing industry between Canada and Germany, was not in the difference of the intelligence of the nationals, but simply, in the difference of the intelligence of the social governance, which was exactly the controllable subjective factor.

There were two factors that were in decisively influencing social governance and in badly impacting corporate management, one is the quality of social members, and other one is the ideology.

The concept of the quality of social members stemmed from the new findings on the relation of human brain and human behavior.

MRI brain scan shows that any of human behavior is dominated by the specific population of cells in the brain. Because that structure of human brain is varies with great difference from person to person, so, people's character and behavior is also in great difference; some are sober and rational in happy mood with full of compassion; some are impulse and radical in depressed mood and lack of compassion. It will certainly affect people's behaviors and daily social activities; especially the work ethic, such as, in the workplace, in whatever they engaged, some people work full-heartedly and some people work mindlessly.

It was the quality of brain in determining the quality of people.

The MRI brain scan revealed that antisocial behavior of criminals were caused by the abnormal in brain - the regions that contribute to emotion perception, empathy and recognizing were strikingly smaller and caused them cannot produce the feeling of guilt, so that they brutally hurt others without hesitate; and Workplace Bullying has been badly affecting in both of the health of people and the efficiency of production, MRI brain scan shows that the brain of the bully was abnormal, in wrongfully perceiving pleasure from intentionally inflicting pain on others.

The brutal reality indicates that it is not all people in human feature are with proper human nature. If, we take the law-abiding and social-ethics-complying as the only measure standard to distinguish social members, then those people who are work mindlessly and always deliberately striking for private interest without concerning about the harm for the interest of the public should not belong to humanity, not to mention those antisocial criminals.

For social governing, the most harmful is not those antisocial criminals, but those low quality people whose brain quality is in between the normal and antisocial; especially those of brain are close to normal. Such as, in section 4.2.1, I introduce that in former cashing machine manufacturer NCR Waterloo, a well cultured gentleman advises others to slow down work with smile in nice tune, and to have lowered down the production efficiency to about 50% of the whole line; more terrible, in this NCR, that temp-workers actually collectively smashed equipments when learnt they were laid off after company finished work tasks, and a supervisor dared not perform supervising in work but has to leave for two weeks for dodging trouble at the time that lays off temp-workers, and thus made NCR has to relocate to Mexico before the outbreak of 2008 financial crisis, which made 1300 people lost high quality jobs – well paid with well work environment.

It is really an incredible matter. A Supervisor as middle management in a legitimate multinational company, his work should be aboveboard and dignified; however, he had to act as that of criminal to dodge some time every year, but conversely, the criminal manners of those workplace troublemakers were acting as aboveboard and dignified, there no one dared inhibit them.

Canada, as a developed country with proud of perfect legal system, in the territory under its rule, in the area of manufacturing center of whole country, in the multinational manufacturer NCR, the normal position of the sky and earth was actually swapped – in holy production site, the supervisor dared not perform supervising duty, but, workers dared do whatever they like, even smash equipments.

About half a year later after the NCR Company was shut down; in a supermarket, I met the gentleman who once advised me to work slowly. At that time, he was looking for a new job after worked for a job agency a couple of months. From all aspects of assessment, the gentleman is well self-cultivated showing very nice and friendly without flaws in personality, and from whatever point of view, in NCR Company, he asks others to lower down the work speed are not associated with any of his own interests; his payment was over $ 20/h in NCR, but for Job Agency or any other job may less than $12/h as start.

If it was not my personal experience, I never believe such uncivilized violent event in NCR actually happened in Canada, as developed country with sound legal system. It was actually incredible, since it was violating the laws of nature, as usual; such uncivilized manner in NCR should be a natural product of the country that was still uncivilized with no government in performing social governance.

People hate antisocial crimes and terror attacks, because those behaviors were obvious in cruel and bloody; but, few people would rationally worry the bad result of forcing NCR Mexico relocated, in which process, it was not only 1300 people lost high quality jobs, but more badly, with massive negative social impacts as that of Domino Effect: the loss of a good creator for tax revenue, the loss of a good employer for sponsoring Canada Pension Plan, the loss of NCR’s parts supporting enterprises, the loss of transport company that services for NCR, and much more…; especially, the loss of jobs will certainly make people loss of income and thereby lower down the social purchasing power, thus will cause other Domino Effect in economy, by worsening retail industry as well as related businesses, especially, goods manufacturers, thus will result in more employer failure and more people jobless …

The bad social impact of the antisocial crimes and terror attacks was limited in area and time, but, the negative impact of the out-relocation of NCR and other manufacturers was massive socially in long term.

Now, you would be convinced that, for social governing, the most harmful was not those antisocial or terrorist, but those low quality people whose brain quality was in between the normal and antisocial, especially those people of the brain are close to normal, but not normal, they have a strong deceptive with a well cultured appearances to easily harm human society with no sense and ability for making good, but full sense and full tricks in making bad.

The former employer and employees of NCR Waterloo and it located country Canada were the typical victims of such ignorance of brain defectives.

Here was other example.

The section 1.9.1.. A supervisor makes trouble for business owner was excerpted from my Sep. 11, 2014 article The death of a Canadian business owner, which introduced Mr. Jerry who was the owner of an auto parts company in Toronto and died in years ago from the pressure of business operation.

In the Auto Parts Company, there was a supervisor John who was taking charge of shipping, receiving and a group of people of packaging. He said that he worked with Jerry from the business' starting on his 15 years old in 30 years ago. 

He came to work at around 10:30 - 11:00 am every day, sometimes did not show up.

The reason for John dared do so, I thought, it was that he thought himself to have contributed too much for the found of the Company, so he should enjoy the treatment as that of the father of the owners.

Maybe, as the same reason, for the preposterous behavior of John, the owner dared say nothing besides had to hire another supervisor - Albert to take part of his job, when John did not show up. 

Finally, John was fired due to that he sold auto parts privately under name for delivering.

Though, the mindless behavior of John was not the main cause of the death of Jerry, but, at least it was the part of the inducement.

Above are simple examples of mindless employees’ making trouble in the workplace. As my personal experiences, such acts of sabotaging production are common in Canadian Enterprises; the difference is just the sabotaging forms.

Those mindless employees have no ability and no mind for doing good job, but with ability and full-hearted for trouble-making endlessly. It is important cause of production inefficiency with unpredictable consequences due to no one know what kind of bad idea would be put into production, which is not only harms business owner, but also harms society badly. The basis for Canadian economy is being damaged in such a simple way.

In viewing from this point, the process of social governance is also the process of the battle between rational and irrational, human and inhuman, the process of reducing the harm of those people who are with brain defectives; but, such rational governing requirement was precisely just the Achilles-heel of populist kidnapped democracy.

The findings on human brain showed the complexity and difficulty in social governance; and also it warns us that, in social governing must take into account of the brain quality of social members to govern according to normal or abnormal in intelligence, rational and irrational in behavior, human or inhuman in nature; rather than continuously according to moral or immoral, justice or injustice and ignorantly protecting so called human rights, to encourage the brain defectives to be more boldly reckless without the fear to be punished.

If the government can rationally exercise the governing means by timely legislation, the harmful behavior of the brain defectives will easily get control, and thus the high efficiency of production and the normal life of people will be guaranteed; however, the reality is always contrary to people's good wishes.

For various purposes, people develop various rhetoric to have initiated many different ideologies, and some of which have been playing the role as protecting harmful behaviors of brain defectives, such as:

Nov. 12, 2008, the reader R. made a comment following the article <the brain of the bully>:  My brain made me do it will be the new legal defense,” which means under such rhetoric of an ideology in developing, the bullies may freely bully innocents without legal restriction available. The comment exactly points out the sorrow and frustration of the legal system of the Western countries; it has been developed into too ignorance to accomplish the role for social governing, and it was just such ignorance to have distorted social governance.

This was a typical evidence, to some extent, the ideology has been using as tools by some people; by which they invent some absurd concepts, and then use these concepts to attack society for personal gains by the name for other’s good, but, made bad socially. 

The confusion in ideology leads to confusion in social governance, which was also the one of significant reasons that caused decline of Canada’s manufacturing.

Socialism should be the state owned in planned economy, and the capitalism should be the private owned in market economy, they are both the organizational model for large scale social production without business of the politics; but people wrongfully view that Socialism meant one-party dictatorship, and the Capitalism meant multi-party democracy and such confused ideology has been used as tools for political fighting between social activists, political parties and countries.

For uprooting social polarization, Karl Marx spent lifelong to promote his Communism idea “From each according to his ability, to each according to his need”, which was a perfect social model for humanity in well meeting the desire of fair and justice socially, so that Karl Marx and his friend Engels was able to have launched over 100 years of communist movement, and over 70 years of socialist practice, but failed; which proved that good idea cannot work in the society of so called higher animal with a nature of lower animal.

As contrast, the Capitalism idea of Adam Smith unexpectedly works well, which was under the drive of greedy instinct as that of the one of lower animal, people freely pursuing personal interest in the marketplace by developing competitive products, at this process, the selfish activities of the people were also promoted public interest effectually and benefited human society at whole.

For survival, human beings need a model for social production, due to that public ownership - socialism based model did not work well; whether prefer or not, currently, the private ownership - capitalism based model is the feasible choice, therefore, human beings have to bear the inevitable byproducts - the Social Polarization, which also induced confusion in ideology.

People hate social polarization and argue that the Rich was too rich and the Poor was too poor, but, at the same time, they disregard the significance of the wealth of the Rich was not in handy for self-enjoying, but has been mostly used in social production as manufacturers in creating jobs for people living-making and revenue for social governing, thus to be shared by the Poor in playing the role as public wealth, but in risk taking personally; and the profit they gained was reinvested in the production; when viewing in this way, the Rich was not rich as condemned and the Poor was not poor as complained.

It was clear that so called social polarization was a false proposition; but, some people, especially policymakers are still clamoring to fight against the social polarization and legally encourage people to confidently destruct the manufacturers with poor work ethic and striking for more by doing less.

The former employer and employees of NCR Waterloo and it located country Canada were the typical victims of such ignorance of confused ideology.

People attach importance to the manufacturing industry and with full heartedly efforts promoting it; but, at the same time, they disregard the significance of the organizer of the manufacturing – entrepreneurs, with mistreating them as the evil maker of the social polarization and with hatred mentality towards their invested manufacturers as same as that of treating the NCR Waterloo.

Such behavior was as similar as that of people eagerly look forward more fruit trees for bearing more fruits, as more as better; but, at the same time, the people who were also encouraging others to deliberately uproot the fruit trees driven by the mentality of making social fair and justice, which reckless manner has been far beyond the confusion in ideology, but the result of shortage in brain cells or wrongful wired in brain neurons.

The NCR Waterloo was such a fruit tree to be uprooted in Canada and to be replanted in Mexico.

Rare people can realize that “enterprises are the important organization of social production to create material wealth for human survival, and the entrepreneurs invest their money to run the enterprises with a frugal living and risk taking, to provide employment for public living and revenue for social governing. Thus, their enterprises are to be shared publicly in playing the role as social wealth.”

The entrepreneurs invested manufacturer is the basic cell and main driving force of the real economy by integrating the Intelligence, Capital, Knowledge, Technology, and Market together to play the role as protagonists in scientific and technological innovation, thereby, create a stable prosperous community, in which, people are able to enjoy a peaceful life by hard work.

Apr. 29, 2015, in article Canada’s economy is faced at vital crossroads, I indicate that the most of social elite are calling for economic development, calling for an increase of domestic demand to revive economy, and calling for the development of service sector to revive economy, however, they seem have neglected the important issue that without entrepreneur will be no manufacturer, without material wealth manufacturing to forge a ground foundation, without job position and wage income, how to increase the domestic demand, how to develop service sector?

Few people sympathize of the hardship of the Entrepreneurs who are hardly operating enterprises in lack of support from society besides the pressure of unpredictable risk in marketplace and public hatred mentality; which badly impacts the health of the entrepreneurs.

In Canada, only among the several Entrepreneurs that I have associated, there one was suffered two times heart attacks, one suffered stroke, and one even died earlier at his prime age. It was the shock of the earlier death of my former boss inspired me to think of the social role of the entrepreneur and manufacturer and to have realized that so called social polarization was a false proposition.

It was obvious that if we continuously mistreat entrepreneur and force them shut off manufacturer or simply press them to die, it will be no entrepreneur in Canada; without entrepreneur will be no manufacturer, without manufacturer where the manufacturing come from?

This was the root cause of that, over the years, in natural resources rich Canada, the government officials and social elites have been hardly striving for boosting manufacturing industry with hard efforts, but, few real effects.

Enterprises are the pillar of the national economy; we should not let them in self fending - live or die. Entrepreneurs are the precious social asset; we should not be in passively seeing them bearing all kinds of pressure alone, especially, with no capacity to constrain the reckless behaviors of some brain defectives or some organization in badly affecting businesses operation.

A rational government should full heartedly support entrepreneurs by providing help in all possible, especially, strictly suppressing the mindless behaviors of those brain defectives that are badly impacting the development of businesses. In this concern, that former British Prime Minister Margaret Thatcher who set Britain on new course has provided a good example for Canada.

In current world, majority of politicians are care about manufacturing sector very much, due to it is the foundation for developing economy, but, they hate manufacturers very much with actions fighting against them, due to that they view manufacturers are the evil-means of entrepreneurs invested for exploiting surplus value of labors and thus is in creating injustice of social polarization.

May 21, 2017, I was shocked by that policymakers of Ontario are preparing to broadly promote the activities of the labor unions, which reported by article Big changes considered for Ontario workplaces - Toronto - CBC News, in viewed that such practice once destructed economy and people’s daily life of Britain in the 70's of last century, I wrote article Ontario will ruin economy by the way that once ruined Britain.

Besides the questionable attempts of above, the sharp increase of minimum wage from current & 11.40 per hour to $15 in 2019 has been put into practice. Please look at follow reports; some rational social elites are arguing the dead harm of the increase of minimum wage in Ontario, in worrying about it will kill the manufacturing sector of Canada.

May 30, 2017, Ontario's $15 Minimum Wage 'Devastating' To Businesses, Groups Say.

Jul. 25, 2017,  High minimum wages have minimum benefit - The Globe and Mail.

July 12, 2017, Ontario will regret its minimum wage experiment.

Over the years, as same as that of globally, in Canada, the manufacturing and wage level were both in decline, for which, the decline of profitability was main reason; in such a situation, if we still force businesses to increase the cost in payment, it may cause businesses failure or to seek out relocated, which will heavy beat economy and make more people jobless.

Now, please look at the rational practice of admirable Germany on this issue.

Jan. 10, 2017, article Germany raises the minimum wage by four percent in 2017 reports that: “an independent wage commission in Germany has raised the minimum wage in the country. After careful deliberations on the wage index, the commission has recommended a four percent increase in the minimum wage. The revised wage has increased by 34 cents to 8.84 Euros from the earlier 8.5 Euros per hour.

Follow were the economic results of the different way in social governance.

May 30, 2017, Canada's current account deficit widens more than expected in first-quarter of 2017.

Jan. 30, 2017, German current account surplus to hit record, as world's largest in the year of 2016.

Obviously, the economic achievement shows the practice of Germans was more rational.

Obviously, the improper practice of Ontario was derived from the wrongful ideology – misled by false proposition - so called social polarization. Their abnormal behavior is derived from the ideological confusion in lack of understanding for the nature of the enterprises.

Ontario is the heartland of Canada’s manufacturing, for reviving Canada’s manufacturing, the first priority is to rationalize the understanding for the significant social role of manufacturer and entrepreneur.

In the era of agricultural economy, geographical space is living space; in the era of market economy, the market space is living space; the decline of the manufacturing is in ruining the life of Canadians.

Every rational Canadians should act positively to change the destiny of being ignorantly forced.

In following, I would like to spend some length for decoding the confused ideological - social polarization, it has been playing a key role in hindering the development of Canada’s manufacturing industry.

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1.1.. Communism was good idea for uprooting social polarization but failed in reality

Since ancient times, the wise of human being have never stopped the attempts in exploring and practicing effective model for social governance.

Among those attempts, the one of Karl Marx and Engels was profound in affecting today’s social governance; which was specially designed for uprooting social polarization to create a fair society that everyone is equal without exploitation.

In viewed that Capitalism comes into this world “dripping from head to toe, from every pore, with blood and dirt” in the early stage of the industrial revolution, Karl Marx raised Communism idea: “From each according to his ability, to each according to his need”, which was perfect social model for human beings that was self proud of higher animal, however, the failure of over 100 years of the communist movement, and over 70 years of socialist practice in almost half of the world have proved that good idea cannot work in the reality.

As contrast, the successful practice was the capitalism idea of Adam Smith; it was driven by the greed of human inborn instincts, people pursue own interest by free competing in the marketplace by developing competitive products, such self-interested activities have also promoted the public interest effectually, thereby achieve the goal of benefiting society, and which has been proved was the most effective way that can help human survival by effectively production of materials wealth.

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1.2.. The failure of socialist practice was due to over relied on human culture nature

Feb. 09, 2014, in article management is the art of playing human nature, I indicate that, people have dual nature – animal nature of those inborn instincts and culture nature of those acquired qualities.

In this point, there no one was exceptional, and there no one was qualified to be self overestimated as noble than any others.

 “The best example for understanding human natures is the process of taming animal actors, in which, the beast-master tempts animals to learn cultural nature for serving human by meeting their greedy of animal nature with foods under the enforcement of whipping. For the success of taming animal actors, the foods and the whips are equally important, both are indispensable. In the same way, for well practice the Art of playing human natures, the incentives and regulations are both indispensable.” 

Viewing in such reality, we may say that management is the art of playing human nature, which is to finish purposeful tasks with the culture nature driven by meeting the animal nature with payment under the enforcement of regulations.

“The failure of the socialist practice was not fully due to the Autocracy Governance and the Planned Economy, but essentially was due to that it over relied on human culture nature by madly suppressing private economy - the exertion of greedy of human animal nature under the enforcement of State Apparatus.”

“There were a lot of researches on the economic success of China, and most of them attributed the success to the magic of the Invisible Hand. But, that was not fully true with ignored the essence - it was that China has broken the egalitarian wage system, which implemented for decades in the socialist period, to have largely increased the share of work performance-linked payment.”

The collapse of the former Soviet Union was a good example for understanding why that over relied on human culture nature could not work.

Generally says, that Daniel Yergin and Joseph Stanislaw wrote The Commanding Heights: The Battle for the World Economy can be called as the Chronicles of the World Economy in last century; later, it was filmed as documentary

Generally say, according to the documentary, that the Battle for the world economy in last century was the battle of socialism and capitalism with the nature of the battle between planning economy or state-owned economy and marketing economy or private-owned economy. 

The significant part of the documentary, as my view, was the introduction of the collapse of the core leader of the socialist camp – the former Soviet Union from interviews of some Russian experts.

Mr. Grigory Yavlinsky who wrote a report that why workers in state mines were so unproductive and Mr. Narrator who was an independent-minded young economist.  

Mr. Grigory Yavlinsky: The people don't want to work. The people have no incentives, which the people have no incentives, have no future. So you can do two things: Take a gun and put this gun to his head like it was at the Stalin's time, or you have to give him incentives, because he wants to improve the life of his family, and he can't.

Mr. Narrator: Factory managers at Norilsk could see the economy was not working, because the workers were not working.

Mr. Grigory Yavlinsky, former Norilsk Factory Manager said that you can't work properly under socialism. There is no incentive. And sadly, that's the only thing that gets us going. People come to work and just go through the motions. They doze off, read papers, do the crosswords. The state goes on paying them, the state gets poorer, the people get corrupted, then bankruptcy. And that's what happened -- the collapse of a great empire.

Now viewing back, according to above introduction, some people may say that the corruption of one-party authoritarian political system was the main reason to have collapsed the Soviet Union - great socialist empire.

The argument was not wrong, but, it cannot get full mark, due to it ignored the key point of human nature.

The governance of one-party authoritarian failed in state-owned economy, then, how about the governance of multiparty democracy.

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1.3.. The democratic Britain also cannot play the Ferris-wheel of Socialism

As the means of social governing, multi-party democracy is good, but facts have proved that was not any country or any Race could play it well. By comparison, I dare say that, on this world, there was no one would doubt that, only Great Britain was the best player of democratic game.

Britain is a veteran capitalist country with an enviable multi-party democratic political system; the good democratic governance of the kinship countries of Canada, Australia were indirectly proved that Britons are the best player of the democracy, and good at social governing. 

In this Great Britain, in the social governance, besides political advantage, there was still economic advantage, the two well-known economists that have been dominating the world economy for centuries by their economic theories - Adam Smith and John M. Keynes were both its descendants. Besides the two, there still David Ricardo, Thomas Malthus and James Mill were all famous economists from Great Britain; they were also decisively influenced world economy by their economic theories.

Now, I would like to say that, until to today, mainly, it was the theories of the British economists in dominating world economy.

In this Great Britain, that was proud of good at social governing, was actually tossed by state-owned economy, the little lucky than that of former Soviet Union, was that Great Britain still maintained in her Great in the state of unity of the country, at least until to today. (Democracy is also Great for dismemberment of a country by proud of referendum that was low IQ populist dominated).

In order to understand this issue, I have to review above history, I am being touched again.

According to the History of the Labour Party (UK) from Wikipedia that modified on 30 June 2013, from 1945 to 1951, the Labor Party of Britain that grew out of the trade union movement, nationalized major industries and utilities including the Bank of England, coal mining, the steel industry, electricity, gas, telephones and inland transport including railways, road haulage and canals. It developed and implemented the "cradle to grave" welfare state.

That nationalization should be the part of socialism and the welfare from cradle to grave should be the part of communism. The purpose was to make people's lives better. Also, in some sense, it could be seen as that of the victory of trade union movement against Social Polarization.

However, the unions endless recklessly organized strikes badly affected people’s daily life and almost destroyed economy.

At the critical moment of Britain, the one of few qualified politicians Ms. Margaret Thatcher had to have defeated unions and privatized again. The communist-style social welfare from cradle to grave has developed into too heavy to burden; and then, the another sober politician, a faithful believer of Margaret Thatcher, Mr. David Cameron has hardly to cut it down. 

The process from original private owned to be state owned, and then privatized again was really meaningless Toss About, but, it was real meaningful experiment for seeking better social governance. The Great Britain, with the proud of multi-party democracy, and to be recognized as the most adept in social governance world widely, it also cannot well play the Ferris-wheel of state owned economy.

In fact, the countries that also suffered the Meaningless Toss About as that of Britain were great many; the United States was one of them.

The facts clearly showed that the failure of the practice of state owned economy was not from the politics, neither the dictatorship of one-party, nor the democracy of multi-party, later I will convince you that the one of the main reasons was due to the uncontrollable human animal nature.

Socialism should be that state owned planned economy, and the capitalism should be that private owned market economy, they are both no business with the politics; but people wrongfully view that Socialism means one party dictatorship, and the Capitalism means multiparty democracy.

After nationalized in 1940s, the state owned model once was the major economy in Britain; however, until to today, there was no one once questioned the period socialistic nature of British, since that the capitalistic callus of Britain was too thick to touch its true skin.

At the end of this section, I would like to say that the economic success in post-war West Germany shows that Ordoliberalism or Social Market Economy was much better under the Ordoliberal model.

The actuality has clearly proven that over advocating Free in democracy and economy is in ruining human survival.

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1.4.. The economy of the Capitalism is in controlling by planned economy of the Socialism

Western developed countries have been proud of FREE - the complete free market economy – Capitalism, however, they are lack of basic sanity for cognition of that regulation of the interest rate and the inflation rate in 2% were the heavy-massive destructive or constructive weapon for the Capitalism in controlling the development of the economy, and this is precisely worthy of the planned economy - Socialism, which was not only in name, but also in the nature.

In fact, whether the capitalism or the socialism, they are both the social model of the organization for social production; we should not ignorantly make political prejudice mix with economic models for meaningless debates

For survival, human beings need a social model for the production of material wealth, whether prefer or not, currently, the capitalism based model is the only feasible approach, due to that the reality has proven that socialism based model did not work; therefore, human beings have to bear the inevitable byproducts - the Social Polarization. 

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1.5.. The social polarization is false proposition due to the wealth of the Rich is shared publicly

July 04, 2013, I once wrote article My View on the Argument of Social Polarization, I excerpt some as follow.

There are many arguments on Social Polarization.

Generally say that Social Polarization is the unequal distribution of social wealth with ignoring the contribution for the society when money making legally. Some people got more to be called as the Rich, and some people got less to be called as the Poor.  

The revolt on the unequal distribution of social wealth has a long history. The earliest instance may be the struggle of slaves against slave owners in Ancient primitive slave society. The most significant one against the social unequal should be the idea of Communism and its practice in recent centuries. 

According to the History of communism of Wikipedia, the earlier communism ideas were from various philosophers in Ancient Greece. In Europe, during the Early Modern period, various groups supporting communist ideas appeared. Tommaso Campanella in his The City of the Sun propagated the concept of a society where the products of society should be shared equally (1601). But, until 1840s, after sociologist Karl Marx developed Marxism, the international communist movement has launched and resulted in more than 70 years' practice of socialist society that involved countries nearly half of the world in last century. But generally say it has failed in 20 years ago.

Since the outbreak of 2008 Financial Crisis, the protest on the unequal distribution of social wealth has developed much severe. Such as, the international protest movement that began from Wall Street in New York City's Zuccotti Park on Sep.17, 2011. 

People complain that the Rich is too rich, the Poor is too poor with a proud of political slogan of we are the 99% without the sense of self-reflecting for that whether self-effort enough in a society that everyone has been given equal chance for striving as the Rich.

As my view, the Social Polarization is a confused concept, because of, it only concerns with appearance, but obscures with potential nature.

The potential nature is that the money of most of the Rich, especially, those of entrepreneurs, is not in handy for self enjoying but were invested into organizing social production in creating job position for livelihood-making and tax revenue for social-governing in risk-taking personally.

In consideration of the public attribute of social production, that private-owned wealth being invested in the means of production is to be public-occupied and in fact, it is being shared by the Poor in playing the role as public wealth.  

Viewing in this practical way, the Rich is not rich as some people condemned, the Poor is not poor as some people complained.

In one sense, the Poor are sharing the result of the Rich’s hard created. Because of those Rich need full heart on business management with undertaking the psychological pressure of variety of unknown risks. 

Therefore, I have enough reason to question the reasonableness of the existence of Social Polarization.

The so-called social polarization is a false proposition.

In consideration of social fair, the idea of communism is much reasonable. However, the failure of the practice of socialist society – so called as primary stage of communism has clearly showed that good idea of communism could not work in human society.

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1.6.. The so-called social polarization has been badly affecting productivity

The argument of Social Polarization has greatly lured the hostile attitude of Employees toward Employers, to have psychologically blown the work enthusiasm of the labor, and to have largely reduced the efficiency of production; thus, it is in playing the role of destruction of human survival.

Human society urgently needs to establish a clear ideology that most of the Rich are the basic organizer of the social production with their money. They are playing the role as civil servants; they are the communists in reality.

The Forbes Billionaires List was ignorant in playing the bad role of arousing hatred mentality against the organizers of social production with massive destruction of social productivity.

The Capitalism is not a perfect social system, but it does work well in effective social production, for survival, we have to full heartedly maintain it to run well; so Social Polarization is not good, but we have to allow it exists.

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1.7.. Manufacturer is the cornerstone of social stability

Manufacturer is the basic foundation in supporting all of other businesses to has been playing key role for driving economy.

April 29, 2015, in the article Canada’s economy is faced at vital crossroads, I once indicate that:

“Manufacturer is the basic cell and main driving force of the real economy by integrating the intelligence, Capital, Knowledge, Technology, and Market together to play the role as protagonists in the invention and innovation of scientific and technological.

“Manufacturer is the organizer of large-scale socialized production, it organizing and training social members to create material wealth with providing jobs for living making and tax revenue for social governing, thus to create a stable community, at which that people can work and live to enjoy a prosperous life.”

“Manufacturer is the cornerstone of social stability and sustained progress.”

“However, with rapid development of low-cost manufacturing in underdeveloped countries, Canada’s traditional manufacturing has been permanently losing.”

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1.8.. Entrepreneurs are the most valuable asset of a society

Governments are highly valued significance of the businesses, and highly emphasized the importance of the manufacturer, but, wrongfully ignored entrepreneurs.

The entrepreneurs are the organizers of manufacturer, if there is no entrepreneur, there would be no manufacturer, without entrepreneurs without manufacturing, and they are the General in organizing people to struggle for living space.

If we liken the manufacturer as a tree, then the entrepreneur is the gardener who plants the tree and promotes it healthy growth.

Viewing in this way, the entrepreneur is the fundamental engine for the development of manufacturing.

Entrepreneurs are the most valuable asset of a society.

Canadians must respect them and protect them by helping in corporate management to improve productivity, which is not for any others, but, for our self and our families.

When talking about business closures and relocation, people only consider the negative impacts on economy and employment with some critical tunes, few people consider that, in this process, the psychological harm that entrepreneurs and their families suffered. They did not want to see their companies to be closed or relocated, but helpless.

In this concern, Sep. 13, 2014, I once wrote article A Belated Thanks for RIM’s Founders and Their Families.

We must concern about the health of all of Canadian entrepreneurs, due to that they are facing the problem that definitely cannot be fixed by any efforts personally.

The operation of the manufacturer is a stressful job. The valuable Canadian entrepreneurs have been living under unimaginable high psychological pressure.

Please look at the entrepreneurs in Canada from my Jun. 25, 2013 article My view on Entrepreneur and Enterprise inspired by Peter Shoore.

A two times heart attack sufferer by the pressure from business running, after sold his 20 years running business, wrote on company's news letter with that: "Now that we have been delegated to the back pages, the pressure is off to be profound, witty, and entertaining at the same time. But that still doesn't stop us from wanting to have something to say, that will inspire and be interesting to read. We can reminisce, about the old days, like your grandfather carrying a bucket of water up hill, in a snowstorm without shoes."

After reading above, I am tearful. I think, even himself would not understand the meaning his 20 years hard working, two times heart attack, have exchanged as the jobs for many families survival and the revenue for social governing.

After working 17 years in Canada, I deeply felt the hardship of the Entrepreneurs who are hardly operating enterprises in lack of support from society but being mistreating by misunderstanding and have to independently bear the pressure from multi-aspect, which badly affects their health.

In Canada, only among the several Entrepreneurs that I have associated, as a result of too much psychological pressure from business operation, among them, besides above two times heart attack sufferer, one suffered stroke, and one even died earlier at his prime age.

It was the shocking of my experience when working in Canadian manufacturers; I start to think the social role of manufacturer and entrepreneur and realized that so called social polarization was a false proposition.

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1.9.. The earlier death of a Canadian business owner

For years, when thinking about corporate management issue, the busy figures of Mr. Jerry was always lingering in my mind, Sep. 11, 2014, I wrote article The death of a Canadian business owner, by which shows my memory and sympathy for his incredible hardship as Canadian business owner; if it was not my experience personally, I would never believe that was true.

Jerry was my first boss of my first job after I newly landed in Canada as an independent technical immigrant with a senior engineer background.

Jerry was the big boss and was too busy to see him in the workplace; we were rare chance for chatting, so that I cannot tell more about him directly. However, from some of my experiences we can imagine the hardship of his life as a Canadian business owner. 

Apr. 11, 2013, in my article Why am I concerning the corporate management?, there a section relates with Jerry, I excerpt some as follow.

Jerry and Adam were the owners of Auto Parts Company in Toronto, after landed in Canada, my first job was in their company, and Albert was my supervisor.

Jerry was the big boss, and Adam was the second boss. Jerry was too busy to see him in workplace. Adam was aged with full head of white hair and all day busy in the warehouse. 

One day, I heard Adam scream loudly, I looked toward the place of he was working; found that he sat down on an Auto Parts box. I ran to see him.

His right arm was lifted, and his left palm was under the right elbow, which seemed to want to touch but dared not touch. The pain made his face grimacing with sweating profusely. I did not know what should I do, and froze there with scare. 

After a while, Adam recovered from the pain. He asked me that, have you scared, right? I nodded my head as answer with tears in my eyes.

He said that, 30 years ago, he and Jerry escaped from Armenia, former Soviet Union to Turkey and Iraq in the period of the reign of Stalin. Then they moved to Canada. In order to make livings, he and Jerry started to make auto parts. At that time, the most of the jobs were heavy physical one. He and Jerry was both suffered arthritis on the elbow of the right arm. After said that, he rolled up the sleeve of his clothe and untied wrapped gauze on the right arm, to expose the elbow.

Previously, I had read the article about arthritis causing deformation and effusion of femoral head. However, when I saw it in true one, I was shocked; the bone ends grew up in heavy deformed to form a large gap between the two sides of the bones. The water of joint effusion caused the skin falling; it looked like a yellow light bulb in bout 30 cm length.

He said that he was old enough for retirement. However, he could not stand without the smells of lubricants oil and the noise of CNC Lathe. He had to work in the warehouse every day, otherwise, he would sick.

He continued, when his working, he often forgot the arthritis on the elbow to use right hand, and repeatedly made painful as that of today.

At that time, I came to understand that why there was no anyone came to see him when heard his load scream of pain besides me. The people in the workplace have used to his scream and understood that could not be helped.

I said: “in the future, if you have something to do, please call me, I am your right arm and hand.”

Since then, we became good friend. Also, since I worked with full heart, and became good friend of my supervisor Albert. Until now, I left the company for more than 8 years already, but, we are still in contacting each other, and concerning each other. 

As same as most of aged people, Adam was also talkative. Every time, when he came in workplace, he would loudly shout my name.

At that time, I understood that why Jerry was always wrapped right elbow with bandage, and his right arm was never pendulous straight.

Maybe, he also often made himself painful as that of Adam when working or in daily life.

Also, Jerry has to taking the pressure for financing, production organizing, marketing……, he would worry when was short of order, he would worry for production when were too much orders….., while suffering elbow pain from time to time……

The common people never understood the hardship as business owner.

I am tearful…….

It was the experience in this company, especially the hard experience of Jerry, Adam and Albert in business running; I began to focus on the business management in Canada.

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1.9.1.. A supervisor makes trouble for business owner

Apr 11, 2013, in my article Family Business and Management Board, also there some relates with Jerry, I excerpt some as follow. 

Some employee, though, are not the family member, but, because of there is merit or great contribution for the business, will be produced in the same trouble as that of the family members.

In the Auto Parts Company, there was a supervisor John who was taking charge of shipping, receiving and a group of people of packaging. He said that he worked with Jerry from the business' starting on his 15 years old in 30 years ago. 

He came to work at around 10:30 - 11:00 am every day, sometimes did not show up.

The reason for John dared do so, I thought, it was that he thought himself to have contributed too much for the foundation of the Company, so he should enjoy the treatment as that of the father of the owners.

Maybe, as the same reason, for the preposterous behavior of John, the owner dared say nothing besides had to hire another supervisor - Albert to take part of his job, especially for some important jobs, such as, the shipping and receiving when John did not show up. 

At that time, I worked with Albert. John told me that he was big supervisor, and all people there should follow that what he said. He always made trouble for Albert. Such as:

He often put received auto parts on the walkways of the area that was my supervisor taking the responsibility. Of course, that had badly affected the normal work of many others, they miss-complained that it was the fault of my supervisor. Sometimes, my supervisor was even tearful.

Finally, John was fired due to that he sold auto parts privately on the way for delivering.

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1.9.2.. No one thanks for the job that Jerry hard created

In about 2010, when I visiting my supervisor Albert, I learnt that the big boss Jerry died. With the business decline helplessly, his health condition was also declined helplessly and finally he never stand up on an operation bed in a hospital.

I will never forget the scene that day my Supervisor told me that Jerry died: he was pointing a big photo of Jerry and the president of Armenia that hangs on the wall at entrance where was as the office and a retail store also. His red eyes with moist, we kept silent for many minutes.  

On the photo, the two gentlemen were smiling with closely holding the hands of each other.

The President of Armenia might only know that his compatriot successfully running a business in Canada, but he might never know that what hardships of his countrymen has experienced in Canada......

I knew that the death of Jerry was a huge psychological blow for Albert - years of friendship, peer’s farewell, forever......                                                                               

Here, it is worth to mention that, when I worked in the Auto parts Company, the most people who worked there were Jerry's fellow man from same country - Armenia, former Soviet Union. Thus, the Auto Parts Company played a role as a refuge for those displaced compatriots to survive in Canada. As a normal human sense of morality, those who had to replaced people from the same country should thank for the merit of Jerry.

However, I felt that, for the great help of Jerry, his compatriots had no sense of gratitude for him at all. Especially supervisor John, at the time as a 15-year-old child, if there was no the help of Jerry, how could he live a decent life. I thought, it was due to that those Armenian believed that Jerry was making money by exploiting of their labor. 

For this point, that deliberately made nonsense of supervisor John was a good example.

It is the common sense for majority of the people world widely, that operation of company is for making money, with failed to recognize the social significance that company in playing - to provide jobs for people making livings and revenue for social governing.

It was such a absurd ideology that resulted in supervisor John's absurd behavior.

This is probably the reason of my greater concern in business management in Canada with many articles to discuss about such issues.

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1.10.. Dr. Peter Shoore – a Billionaire Entrepreneur in Canada

Now, I would like to take Peter Shoore as example to show the reason that the Social Polarization was a false proposition.

Mr. Peter Shoore, the owner of Sunrise Farms based in Vancouver B.C. Canada, who has studied classical music in the Netherlands for seven years to have earned his doctorate degree in music, but he becomes an entrepreneur in chicken industry Canada in 3 decades ago. As a doctorate of Music, obviously, the music was his favorite. I could not imagine his feelings when he has to play immetrical music with chicken by giving up his favorite under the pressure of survival. 

After 30 years hard working, now Peter Shoore has qualified as so-called -Billionaire, but, as Entrepreneur, his money is used in the means of production and the daily running with nearly 20 foods processing branches, rather than in handy for self enjoyment.

On other hand, he has studied classical music in the Netherlands for seven years to have earned his doctorate in music, but he becomes an entrepreneur in chicken industry Canada. As a doctorate of Music, obviously, the music is his favorite. I could not imagine his feelings when he has to play immetrical music with chicken by giving up his favorite?

One point is clear, when our ideal conflicts with the reality, we tend to, to have to give up the ideal, to surrender to the reality, because of, and first of all, we need to survive. However, when we obtained the economic capacity to engage in our favorite, the prime time of our life has been past. Maybe, this is the sad and helpless of life.

However, as smart people, whatever engaged, they will be doing well. In particular, for Peter Shoore, who is rich in musical talent, and he has written an alternative life movement with successful running Sunrise Farms, with rapid expansion, and innovations.

In Top 100 private companies in B.C. in 2011, Sunrise Farms is ranked as 41, in Top 100 private companies in BC in 2012, Sunrise Farms is ranked as 40, which is according to the annual revenue of the fiscal year.

Above I have mentioned that the majority of Entrepreneurs are more concerning the macro-social issue and the life of their Employees also was inspired by Peter Shoore.

I am working in a branch of his business, recently the payment of all staff here was increased and the walls of workshop were newly decorated when other companies are tightening spending.

Peter Shoore said that, I would like to see my employees work in a comfortable environment.

Please remember: Peter Shoore – a Billionaire Entrouprenour, his first concerning is his Employees rather than that of money.

As a smart entrepreneur, whether consideration from the interests of own family, or the interests of whole society, that ensuring the business long-term stable running is much meaningful than that of putting money in own pocket. The money will poison their children and grandchildren, while, the enterprise will act as an evergreen tree to provide shade for the generations descendants. 

Above were excerpted from my article My view on enterpreneurs and enterprises inspired bu Peter Shoor.

I hope that from a rational way look at enterprises will reduce people's hostility to the entrepreneurs, and thereby improve people's work ethic, thus, by improving production efficiency to improve the economy of Canada.

In consideration of the decisive role of policymaking, I hope what I talked above can reverse the view of policymakers on the entrepreneurs, so that they can willingly provide help by legislation, at least, can stop the irrational practice as that of the legislators in Ontario.

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1.11.. Social governance must take account of  the quality of human brain

This is a copy of my July 15, 2016 article The quality of brain decides human quality and social governance.

When talking about social governance, the quality of human beings is unavoidable topic. It was that the quality of human brain decides human quality and social governance.

Human quality covers a wide range of aspect; here only considers social governance related.

Such as, that people can comply with social ethics, to comply with social order and legal regulations, to make livings by industriously engaged in material wealth creation, rather than by other illegal way and so on. All in all, the most preferred part of human quality is at that can consciously safeguard in social order and engage in creation of social prosperity.

However, it was not all human members can act as well as expected, there always have some individuals been acting as that of wild animal in brutally harming others, even killing others. It is not simply the problem of immoral or negative in psychological, but, the problem of inhuman nature with brain defectives.

Modern MRI scans on human brain have proven that it is human brain structure in determining personal quality.

July, 30, 2012, in the article Recover Mental Disorders by Chinese Medicine, I indicate that: Recent years, scientists have learnt more clearly about human brain structure and the work mechanism. Our brain is an extraordinarily complex organ that is made up of many different structures. Any of human behaviors is dominated by the specific population of cells in the brain. Because that structure of human brain is varies greatly with big difference from person to person, so, people's character and behavior is also a great difference.

More evidences have showed that various mental disorders are connected with abnormality or atrophy in the brain. The antisocial behaviors may be the most heavy mental disorders, which caused by brain defective, Such as that in the brain of the teenagers with antisocial behavior, the regions that contribute to emotion perception, empathy and recognizing were strikingly smaller, and the greater the severity of the behavior problems, the greater the reduction in the volume of the regions.

The facts showed that the quality of brain determines the quality of people. Due to that development of brain between people is in great difference, so that the quality between people is in great difference, too. Even if, people have no significant antisocial behavior, but, the character of each individual is also in big different, some are sober and rational in happy mood with full of compassion; some are impulse and radical in depressed mood and lack of compassion.

 Those are also caused by the differences in brain structure, by more or less in corresponding population of the brain cells. it will certainly affect people's behaviors in daily life, especially work ethic, such as, in the workplace, in whatever they engaged, some people work mindlessly, and some people work full-heartedly.

The brain defective people are lack of function in proper thinking, so that they boldly do what they like recklessly without consideration for the bad consequence, they often play the leading role or so called Opinion Leader in the society, and those brain developing perfect people who are thoughtful with over cautious in action and to be in the passive state to be eye-closed following with a sober mind but dared not speak out. I think it belongs to a kind of Crowd Psychology or Herd Mentality and hard to be improved.

In viewing from this point, the process of social governance is the process of the battle between rational and irrational, a process of reducing the harm of those people who are with brain defectives.

If, we take the law-abiding and social-ethics-complying as the only measure standard to distinguish human beings, then those who are always deliberately striking for private interest without concerning about the harm of the interest of the public should not belong to the human race, not to mention those antisocial criminals.

The findings on human brain showed the complexity in social governance.

Low quality people are harmful than that of wild animal

Generally, in daily life, the quality of people performed by dual natures: The culture nature of those acquired qualities, and the animal nature of those inborn instincts. Those brain well developed people would tend to gain more acquired qualities from study and to be more in culture nature with more ability to contribute to society; those brain poor developed people would be difficult in study and to be more in animal nature with more tendency to harm to society.

The brain study and harsh reality both proved that, though all people were featured as higher animal, but, the nature of some people were in low quality as that of lower animal in reckless behaving or antisocial attacking, the cause is that they cannot make proper judgment due to their brain cannot make rational reasoning.

Besides the problem in the brain, that lacks knowledge as reference for reasoning is also the reason.

Modern studies show that Brain Cells can regenerate, it is the foundation that we can remember those what we have experienced in the past and can remember those what we will be experienced in the future.

The wide range of studies and social experiences will perfect brain in the structure with increasing new populations of brain cells, and the more brain cells in memorizing the experiences for the successes or failures will provide more references for perfect reasoning with more perfect decision making and less extreme and mistake.

If a person is lack of social experiences and extensive reading, the person will fall into as that of watching sky by sitting in the bottom of a deep well, which will largely narrow the field of the vision, and thereby limit the scope and the depth of the thinking. Thus, when faced with intractable social problems, the person cannot flexibility come up with feasible solutions. It will be more harmful for those who are on the key position of the government.

On other hand, that even with same innate quality of the brain, if the content of education applied repeatedly on something specifically, such as some doctrine, that person may become fanatics of the doctrine, because the content of doctrine is the only available reference in brain for reasoning and judgment.

Due to unable rational judgment, those low quality people would easily accept extreme preaching, or to be lured as a member of some kind of people grouping, become an ignorant fanatics for some deceptive doctrine, even under some extreme appealing to perform terror attacks. They are even brutal than that of most ferocious beasts in harming others without slightest empathy.

The understanding for the structure and mechanism of human brain has provided useful evidence and reference to force human beings updating the way in social governance, which is to perform social ruling by distinguishing the brain quality of social member to proper control of those low quality people to reduce their harms.

Talking from social governing, the most harmful is not those antisocial, but those low quality people whose brain quality is in between the normal and antisocial, especially those people are close to normal, they have a strong deceptive.

Since that they may make livings by grouping more people together with more power to perform their bad ideas. Some of such grouping is playing as a group beggar that plays as political artillery shells under the driving of charity giver. Some are dressed with beautiful outerwears of the kind benefactor, but, in helping those low quality people harm society.

The most terrible was that some of those low quality people have been in government in dominating policy making, which was the main cause that human beings was stay in the civilization as that of lower animal.

That human society could not properly prevent the terror attacks and could not avoid many disasters economically and politically were mainly derived from the misleading of those low quality people.

Human beings have to get rid of such ignorance urgently, the MRI scan is an easy way for distinguishing those low quality people, but, it is definitely impossible, even if asking some sensitive question is impossible in current social ideological and legal protection under the control of those low quality people.

The feasible approach, I can envision out right now, is through the process of social organizing to filter out those low quality people.

The one of the important roles of the government is to control people to ensure a peaceful society. However, democracy entwined the Universal Values have disabled government to play their governing role. The greatest sadness of modern society is at that it cannot effectively control of the ridiculous behavior of those irrational people who are under the protection and encouragement of the Universal Values.

It is the absurd of the partisan politics, especially, in democratic governance that is not the government in governing electorate, but, it is that some irrational electorate kidnapping government.

Populism based democracy has provided a good play yard for those mental defectives.

And the tragedy is at that, in modern society, some people are specially making livelihood through advocating treating those who are in brain non-normal as that of brain normal, and helping them easily to harm good people. Such as, the people who make livings by working in the organizations that are appealing protection of human right.

The majority people who are carefully law-abiding and social-ethics-complying will less against social order and law, they will less need to be protected in their rights, and those who are need of protection are mostly antisocial offender.

Such as, some terrorist attackers were even the refugees who were protected by the organizations of human right or the countries under the law of protecting human right, and were being feed by hard working local people and then they killed the people who were feeding them.

In most of case, human right acted as an evil tool that has been used by some metal defectives to make livings in helping minority brain defective people who are less concern material wealth creation to harm majority people who have been hard working for material wealth creation.

That protects human right is good in nature, but, it has been playing bad role in the practice.

Above words are with somewhat off-topic, however, in view of this article is talking about the issue of social governing; the matter of defective-brain should be taken as important factor into consideration.

The current electorate dominated democratic governance seems in encouraging and helping those mental defectives to exert their wrongful brain signals.

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1.12.. Re-evaluate the social significance of the Unions

I clearly understand that the issue on Unions is a sensitive taboo topic; due to that it will touch personal interest of unions’ activists and even great many politicians – the democratic players, since the unions were and are the essential means that they have been using on making livings in great many ways.

Now, at first, I have to declare that I am very much appreciation of the positive role of the Unions historically, due to that I support Marx's communist ideology, and believed that communist society was the ideal society of mankind.

I raise this issue here is not for hatred of the practice of the unions, but for the concern of creating a livable community by keeping job position and tax revenue.

I am clear the bad result of touching this topic for myself.

But, I have to touch this issue, because that it is essential in deciding the decline or boom of Canada’s manufacturing and thereby in deciding the living apace of Canadians.

I never deny the historical contribution of the trade unions, human society develops to today, the unions has played a progressive role with great contribution.

However, the long river of history flows into this day, the objective social situation has been entirely changed.

Thanks the great contribution of the unions for the interest of labors by organizing them to strike for more by doing less; under the continuously efforts of unions; nowadays, society has structurally and legally provided comprehensive welfare and security for labor in communist style. At the mean time, the society has developed into market economy in major; the market-pace has developed as living-space; therefore, the failure or success in competitive market-space has involved the life or death of a country.

Such reality has watered down the positive role the unions.

Affected by unions culture, in Canada, over the years, the productivity lags U.S. in ‘virtually every instance' with a trick that wages rise but productivity doesn’t, which made Canada losing steam in its push for an export boom due to that now is cheaper in making goods in once-high-cost countries such as Japan or Britain than in Canada.

Statistics Canada data show that only 1.7 million Canadians were employed in the manufacturing sector in 2014 compared to more than 2.3 million a decade ago. Auto makers, in particular, have been pouring billions of new investment dollars into the United States or Mexico while giving Canada the cold shoulder.

People may say that was due to economic downturn globally, but, in the same international environment, Germany has been creating export surplus continuously for many years. Jan. 30, 2017, German current account surplus to hit record, as world's largest in the year of 2016. At the same time, Canada made export deficit continuously for many years. May 30, 2017, Canada's current account deficit widens more than expected in first-quarter of 2017.

According to my experiences, the closure and out-relocation of the manufacturers in Canada was not fully due to economic downturn, but, simply caused by difficult in the management for an efficient production; under wrongful legal protection for labor, employers dare not strictly manage for a profitable production.

If Canada continued as current state – sustained in low productivity, high cost in goods making, and decline in manufacturing, Canadians would lose living space for survival, which also includes the members of the unions and their families, as well those politicians who are win in campaign by the slogan of supporting union.

Now, we have understood the significant social role of manufacturer and entrepreneur; and have been convinced that they are playing the role as cornerstone of social stability and sustained progress.

Under this ideological, we have to be self-convinced that the biggest social injustice and unfair is not that so called social polarization, but that people have no enough job available for livelihood making, and the government has no enough employer to pay tax revenue for effective social governing.

It was current realty of where that once manufacturing-boomed Ontario and where that once oil production-boomed Alberta, with the decline in manufacturing and the decline of oil production, the job position and employer have been both disappearing.

Dec. 7, 2015, CBC reports that Suicide rate in Alberta climbs 30% in wake of mass oilpatch layoffs.

Now, it is the time that we have to re-evaluate the social significance of the Unions that have been playing the legal-supported role in specially fighting against manufacturer and entrepreneur.

In viewing that communist way cannot work, we have to smooth the capitalist way for human survival.

Nov. 1, 2016, inspired by the report that Britain will soon be developed as fourth large economy, I wrote article Margaret Thatcher Changed The UK Forever By Defeating Unions, in which I indicate that “there were reports that Britain will soon be developed as fourth large economy in world, for such a achievement, the first contributor should be Me. Margaret Thatcher, it was she defeated Unions under a rational sense that Unions were attempting to substitute the rule of the mob for the rule of law; they are using violence and intimidation to impose their will on others who do not want it; so that British government rationally beats Unions and thereby revived productivity in Britain.”

Dec. 5, 2015, in article The Strategic Vision for Trudeau Government of Canada, I indicate that: “In the Era of agricultural economy, the geographic space is the living space. In the Era of market economy, the market space is the living space, without competitive products; a country will lose living space.”

Obviously, rational Ms. Margaret Thatcher hardly created foundation for Britons to strive for a broader living space. 

I am clear that the appreciation of the rational practice of Ms. Margaret Thatcher will cause the hate of a lot of people, but please recall the facts that union organization once caused economic and social chaos in Britain in last century 70’s.

If it was not that Ms. Margaret Thatcher decisively reversed, it was most possibly that Britons might be as same as that of today's Greeks; their retirees might be also have to search foods in garbage bins or have suicide to refuse the disgrace life.

Though, the effort of Mr. Margret Thatcher was rational, but, the practice was somewhat radical. It was the reason that I write this article to summarize some methods that can achieve same purpose, but, without radical in more humane by well playing human nature.

In this concern, I would like to re-recognize the social role of the Unions.

In an environment of market economy, as labor, each of us has become a commodity to be freely chosen. As consumer, in malls, we have right to free choice of high quality and inexpensive goods, why that entrepreneurs cannot freely choose their staff with lower cost in payment?

That reduces the production costs to create profit is the priority of the business operators, for this concern, the free trade and economic globalization has provided a broad range of options for relocating their production base under the concern of lowering down the operational cost, especially in payment.

When talking about profit, the majority of people will come to mind in greedy, and the fat cat firstly. Few people can take into account of the difficult of the business operation, which is that it is profitable in today, maybe unprofitable tomorrow; business operator must make long-term considerations in operating. It is just as that of the daily life of our family; we must manage enough money for unexpected needs in future.

With the deterioration of the business environment world widely, the operation of the business is increasingly difficult. For example, in Foods processor DC Foods Waterloo, the profit margin has been increasingly shrinking, and business operators have suffered psychological pressure related diseases.

Though the legal protection for the existence and activity of the Unions is reasonable, however, it cannot stop manufacturers to free chosen the place for setting production base and bring their job position to new place elsewhere.

In 2012, I once read a post, in which, a workers appealed that they would like to accept the pay-cut to keep the jobs in Electro-Motive Diesel plant London.

However, Jan. 3, 2012, there was a report that CAW vows no retreat after Electro-Motive lockout. Jan. 21, 2012, thousands of union activities, labour lraders, and local politicians gathered in London Ontario for a massive rally against U.S.-based Caterpillar's lockout of 465 workers at the city’s Electro-Motive Diesel plant.

The demonstration was organized by the Canadian Auto Workers Union and the Ontario Federation of Labor.

Obviously, the demonstration has played a role to have further stiffened determination of Caterpillar’s management to escape from the kidnap of the Unions.

Actually, with a kind purpose of helping workers to get more, the more effort of the Union made the more manufacturers out relocated; as a consequence, more workers will completely lose their jobs with great hurt to their interests.

In consideration socially, as long as possible to ensure the manufacturers to stay in Canada, government has to play its governing role.

The negative reality in legal and ideological is difficult to be changed; but for survival, we have to look for feasible alternative way.

This is the main purpose of writing this article.

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2…The decline of manufacturing in Canada

2.1.. Mexico has overtaken Canada in auto industry 

Feb 10, 2015, the article Canada falls to Mexico in share of North American auto output reported that: Canada’s share of North American production of cars and light trucks has fallen to 14.1 per cent in 2014 from more than 17 per cent in 2009. Mexico, with 18.9 per cent of production, has overtaken Canada, formerly a powerhouse in the industry. The falling investment by the automakers in Canada means it is losing its share of production to both the U.S. and Mexico.

The big winner is Mexico, which saw its light vehicle production climb to 3.2 million vehicles in 2014. 

Auto production in Mexico grew 6.8 per cent on the year in January 2015, according to the Mexican Auto Industry Association, with 266,424 cars and light trucks manufactured. Exports hit a record level of 204,907 vehicles, spurred by strong demand from Canada and the U.S..

Canadian auto investment almost stagnant but, automakers have made big investments in Mexico, where wages are in the $8 an hour range, compared with close to $40 in Canada.

Global automakers poured $7 billion of new investment into Mexico last year, according to the Center for Automotive Research, compared to just $750 million for Canada.

Mexico is an attractive place for production and has been since NAFTA began.

Mexico is close to markets in the U.S. Southwest and has easy shipping from its ports without the bother of snow. And it has 44 free trade agreements which open doors to its products in other countries.

The outlook for Canadian auto production is “clouded,” despite a falling dollar which will make production cheaper. And uncertainty over costs makes the outlook for Canada dim.

Apr. 14, 2015, there was a report Canada's auto industry could disappear within 15 years:

“Global automakers invested $7 billion in Mexico last year, compared to $750 million for Canada. Labour costs in Mexico average about $7 an hour, including benefits.”

“Canada’s auto industry may be headed down the same road as Australia’s and cease to exist between 2030 and 2040.”

“Once home to six carmakers, Australia is expected to lose its remaining manufacturers – Toyota, Ford and Holden – a General Motors subsidiary – within three years. After the government turned down a request for a $275 million subsidy, Holden announced last year it would shutter its operations by 2017. Soon afterward, Toyota Motor Corp. said it too would shut down its plants by 2017. The automakers cited the high value of the Australian currency as the key reason for their decision.”

“Canada could meet a similar fate as long as it continues to lose out on new capacity investments to such jurisdictions as Mexico and the U.S. south. ‘In the longer term we’re heading toward Australia,’ he said. ’Every vehicle produced in Canada, every plant is vulnerable.’”

Mar. 16, 2012, the article Fight Union Busting Through United International Class Struggle revealed: “Unemployment in cities like London and Windsor is around 10 percent. Many workers who still have jobs have been forced to take huge cuts in pay and benefits. This race to the bottom was kicked off by the CAW leadership’s surrender of $19 to $22 an hour in givebacks to General Motors and Chrysler three years ago as part of the auto company bailouts engineered by the U.S. and Canadian governments.”

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2.2.. The problem is not limited in the auto industry

The article Fight Union Busting Through United International Class Struggle also said: “Some 450,000 manufacturing jobs have been destroyed in Canada since 2006. Southwestern Ontario, long the country’s industrial heartland, increasingly resembles the adjacent U.S. Rust Belt with its abandoned, hollowed-out factories.”

Oct. 15, 2015, the article Caterpillar to close Ontario locomotive office, sets layoffs reports that:

“Ontario’s industrial heartland is losing more skilled jobs as Illinois-based Caterpillar Inc. cuts costs and closes its Electro-Motive Diesel rail locomotive office in London, Ont.  About 50 people have been given layoff notices and the office will close by Dec. 31. The staff includes locomotive testers, design engineers and production planners who were spared the axe when Caterpillar closed the nearby locomotive factory in 2012 and fired hundreds.”

“Canada’s manufacturing sector, centered in Southern Ontario, has been hit by shutdowns of several factories and shed thousands of jobs in the past few years.”

“Companies have cited the strong dollar, high operating costs and expensive labour as they shut their doors and moved production lines to the United States or elsewhere.”

“In 2012, the company locked out 450 people who built locomotives at the factory in London and told them to take a 50-per-cent pay cut before announcing the plant would close for good and the work would move to Indiana.”

“The company said the most recent London layoffs were part of “continued cost reduction actions.” The company said in September that job cuts among its 111,000-strong work force could reach 10,000 by 2018 as it reduces operating costs by $1.5-billion.”

“In 2014, Caterpillar closed its Toronto tunnel-borer factory and put 330 people out of work.”

“Recent plant closings in Southwestern Ontario include H.J. Heinz Co.’s Leamington ketchup factory in 2014, eliminating 740 jobs and gutting local tomato growers who supplied the factory for generations.”

“Cereal maker Kellogg Co. in 2014 shut its London plant and put 550 people out of work.”

“In 2011, Ford Motor Co. of Canada shut its plant in nearby St. Thomas, wiping out more than 1,200 jobs.”  

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2.3.. Canada's Mid-Sized Firms in Decline

Feb. 13, 2013, Business Development Bank of Canada published study report Canada's Mid-Sized Firms in Decline:

Canada’s mid-sized companies, a key motor of the economy, the number plummeted by 17% from 2006 to 2010. The worst-hit sector was manufacturing, which saw over half its mid-sized companies disappear from 2001 to 2010. 

Mid-sized firms represent 1% of the total number of companies, but contribute disproportionately to the Canadian economy, accounting for 16% of Canadian jobs, 12% of GDP and 17% of exports. It is worth noting that a greater portion of mid-sized firms have their head office in Canada, compared to large firms (90% versus 77%).

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2.4.. Canada's traditional manufacturing is permanently losing

This trend can only be more and more intense, because the undeveloped countries will continue to improve their policies and related facilities for more conducive to the development of foreign manufacturers. And also, after working from foreign manufacturers, their nationals will be trained as skilled industrial army from unskilled peasants. and their local manufacturers will quickly grow up to form a new competitive forces.

The report that More Mexicans Leaving Than Coming to the U.S. is a good proof: "From 2009 to 2014, 1 million Mexicans and their families (including U.S.-born children) left the U.S. for Mexico, according to data from the 2014 Mexican National Survey of Demographic Dynamics (ENADID). U.S. census data for the same period show an estimated 870,000 Mexican nationals left Mexico to come to the U.S., a smaller number than the flow of families from the U.S. to Mexico." 

Feb 16, 2015, CBC News Economics Reporter Peter Armstrong who revealed disappointing reality of the manufacturing of Canada by article Why southwestern Ontario's manufacturing rebound is missing.

Southwestern Ontario's past is well known. The region was the industrial heartland of Canada. It was here they made everything from cars to ketchup. For a long time, this manufacturing model worked. It served people in the region remarkably well.

With the price of oil dramatically reduced and the Canadian dollar heading lower, the manufacturing should grow up as usual, but, this time, for the most part, that growth hasn't emerged. Even as the dollar hit 78 cents, Canada's manufacturing industry continued to struggle. The usual manufacturing model has been showing cracks for years now. 

Peter Armstrong reveals a fact, though, that is what we do not want to see, but, the true fact is there, that Canada has lost the competitive advantage for the business operation in manufacturing. There are more and more underdeveloped countries also have adopted more preferential policies to attract investment, mostly focusing on the development of manufacturing, such as, Mexico now is quickly growing in manufacturing. 

Manufacturing is the pillar industry in the economy with most large-scale employment in Canada, if it disappeared, it is not only to affect the people who are working in the industry, but also, it will badly affect many other industries, due to the decline of social purchasing power.

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3.. The shocking reality of extreme low productivity in Canada

3.1.. Canada’s productivity lags U.S. in ‘virtually every instance

Oct. 1, 2012, the article that Canada’s productivity lags U.S. in ‘virtually every instance': Deloitte said with that:

“Canada’s economy and ability to compete internationally is being hampered by its businesses’ inability to sustain growth over the long-term, says a report released Monday by consulting firm Deloitte.”

"The study shows Canada’s productivity lags behind that of the United States in “virtually every instance,” including those industries that have been the cornerstone of Canada’s economy for decades — mining, oil and gas, financial services and manufacturing. The manufacturing sector was called out as a particularly poor performer, noting that U.S. productivity in the manufacturing has grown at a rate six times faster than that of Canada since 2000.”  

June 5, 2013, the article that A Canadian magic trick: wages that rise even if productivity doesn’t says that:

“If you spend any time reading about the Canadian economy, you have inevitably come across the Great Canadian Productivity Puzzle. Canada’s productivity is much lower than that of other countries, and we don’t really know why. Neither do we seem to be able to fix the problem. Policymakers have used every trick in the book to try to boost productivity, but the results have disappointed.”

“Canadian productivity growth has stagnated since at least 2002. You’d think Canadian incomes would also have stagnated, but they haven’t. There’s another piece that has to be added to the productivity-income puzzle.’

Canadian labor productivity growth has been lagging that in the U.S. 

  

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3.2.. The cost of Canadian manufacturing is higher than that of Japan or Britain

Aug. 20, 2014, the article that Canada losing steam in its push for an export boom said that “It is now cheaper to make goods in once-high-cost countries such as Japan or Britain than in Canada, according to a new map of global manufacturing competitiveness.”

"The consultants' report benchmarks the relative cost of making goods in the top export economies by comparing the cost in each country to levels in the U.S. On an index where U.S. costs are equal to 100, Canadian factories tick in at 115 - a rise of 11 points since 2004.”

"Statistics Canada data show that only 1.7 million Canadians were employed in the manufacturing sector this year compared to more than 2.3 million a decade ago. Auto makers, in particular, have been pouring billions of new investment dollars into the United States or Mexico while giving this country the cold shoulder.” 

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3.3.. The poor management is main cause of low productivity

For the economic downturn in Canada, many social elite, even most of officials are over-emphasizing the drag of uncontrollable macroeconomic environment, while ignoring the controllable micro-economic cells - the business of the main body of the economy.

I have been concerning about the economic issues of Canada. In the past 16 years I intended work in different type of enterprises of Canada with a terrible experiences that most of them were poor managed, and even shrouding with absurd ideological with poor corporate culture.

In Canadian businesses, some employees, even some management personnel lack of the sense of responsibility, and even make vandalism in workplace. It is not only resulting in production inefficiency, but also caused many enterprises' closure.

They boldly make nonsense without worry about being punished, since that has no proper law to regulate such behaviors.

The law is over protection of employees with lesser concern about businesses owners, in irrationally encouraging mindless people perfunctory work and striking for gaining more with doing less. 

Instead, the managers or owners dare not strictly constraint employees with the fear to be prosecuted. The loopholes in the law encourage some mindless mind into mad action in workplaces. 

Even, there some people take enterprises as the object of lawsuits to extort money.  

The closure of some companies was simply caused by some mindless individuals.

Such as, NCR Waterloo, a cash-machine maker, years ago, I once worked there through a job agency. After first hour of my first day’s work, a gentleman Jimmy (anonymous) closed to me and friendly told me: “my friend, please do not work too hard like this; you may go to washroom to have a rest, or go to other work station to talk with friends. Any way, you should slow down the work.” Then, I noticed that other people were talking and joking with parts holding on hands, but did not put on machine. Due to that my team was in the final section, thus, the production capacity of whole production line has lowered 50% around. 

NCR moved to Mexico before outbreak of Financial Crisis 2008. Jimmy (anonymous)  made a big trouble for other 1300 colleagues and their families with the loss of high quality jobs – good paid with good work environment.

The mindless employees as that of Jimmy (anonymous)  are common in Canadian businesses, although most of them are not severe in harming production as that of Jimmy (anonymous) , but their boldly pranks greatly reduce the productivity, it also can cause business failures indirectly; such as the supervisor John that introduced in my article Family Business and Management Board.  

People might ask that, why no management person stops their ridiculous behavior? Why do not fire them? The answer is not as simple as that of people's common sense.

Later, I would like to use the fruits of modern medical researchers, from the perspective of human brain, human physiology, human nature, crowd psychology, and social governance to discuss this issue.

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4…My observation on the decline of manufacturing in Southwestern Ontario

Southwestern Ontario where has been a powerhouse in manufacturing of Canada, and due to geographic reason of Waterloo city located, the Waterloo region seems a synonym for Southwestern Ontario. It has been playing a leading role in Scientific and Technological personnel training of Universities, R&Ds researching, manufacturing basis, especially in software development. There many world-class software companies opened branches in there, for example, Google, China's Huawei, and so on. May 25, 2016, Forbes reported that China's Huawei 'Growing Up' To Become The World's No. 1 Smartphone Brand.

I knew several manufacturers in Waterloo and Kitchener closed or relocated in recent years, such as, RIM – 20 thousand employees, now declined as Blackberry, NCR – 1300 employees relocated to Mexico and now only left a design team, Triton Company – more than 100 employees closed, and Taming Foods – about 100 employees moved to Guelph.

Nowadays, in a similar business environment, many companies have gained big development against economic recession, in comparison; the decline of many Canadian businesses was just simply due to the poor management based on the poor social ideology and corporate culture of Canada, which could have been avoided.

Follow is examples according to my experiences.

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4.1…The decline of former RIM

Jan 27, 2014, I wrote article The Fatal DNA of RIM & Canadian Enterprises to have discussed the reason for the decline of former RIM.

For RIM’s decline, people can find many sound reasons, however, I think that, the most fundamental one is the stifling intellectual work environment, which is that suppresses the free exertion of intelligence of the employees without a proper channel for employees expressing their views freely to have damaged the driving force for continuously self-revolution to fit the market that increasingly rapid changes.

Such a corporate culture is common in Canadian enterprises, which is just opposite that of smart doing in IBM & America’s best-run companies and German Companies.

This is one of important lethal gene fragment in ruining Canadian enterprises.

An RIM senior exec has to express opinion by Open Letter

Two years ago, I read an article Open letter to BlackBerry bosses: Senior RIM exec tells all as company crumbles around him in Jun 30, 2011. The writer is Jonathan S. Geller who is the founder of BGR – the biggest mobile news destination in the world. He currently acts as President and General Manager of the newly formed BGR Media, Inc., and Editor-in-chief of the BGR website.

In the article he said that:  “We have received an open letter to Mike and Jim from a high-level RIM employee (whose identity we have verified), and in an amazingly honest and passionate plea, this letter gives fascinating insights into what RIM must fix, and fast. RIM did not immediately respond to a request for comment.”

The start of the open letter and the 8 suggestions as follow:

“To the RIM Senior Management Team:”

“I have lost confidence.”

“While I hide it at work, my passion has been sapped. I know I am not alone — the sentiment is widespread and it includes people within your own teams.”

“Mike and Jim, please take the time to really absorb and digest the content of this letter because it reflects the feeling across a huge percentage of your employee base. You have many smart employees, many that have great ideas for the future, but unfortunately the culture at RIM does not allow us to speak openly without having to worry about the career-limiting effects.”

The 8 suggestions:

1) Focus on the End User experience.

2) Recruit Senior SW Leaders & enable decision-making.

3) Cut projects to the bone.

4) Developers, not Carriers can now make or break us.

5) Need for serious marketing punch to create end user desire.

6) No Accountability – Canadians are too nice.

7) The press and analysts are pissing you off. Don’t snap. Now is the time for humility with a dash of paranoia.

8) Democratise. Engage and interact with your employees — please!

The proposals are not only pointed out the problems, but also offered workarounds, especially reconstruction of management, interaction with employees and to be managed in accountability. It shows the writer’s honesty in deep concern for RIM’s future, and well thought out.

From above 8 suggestions, we could feel that chaotic in the management.

Above 8 suggestions were all to hit on the root cause of the failure of RIM and perfect suitable for any businesses.

However, RIM’s responds to open letter was not only with no thanks, instead, was somewhat hatred condemnation, the first paragraph is as follow:

“An “Open Letter” to RIM’s senior management was published anonymously on the webtoday and it was attributed to an unnamed person described as a ‘high level employee”. It is obviously difficult to address anonymous commentary and it is particularly difficult to believe that a “high level employee” in good standing with the company would choose to anonymously publish a letter on the web rather than engage their fellow executives in a constructive manner, but regardless of whether the letter is real, fake, exaggerated or written with ulterior motivations, it is fair to say that the senior management team at RIM is nonetheless fully aware of and aggressively addressing both the company’s challenges and its opportunities.”

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4.2…The high quality job multinational NCR relocated to Mexico

Dec. 21 2010, in article Canada’s Corporate Management & Reducing Psychological Pressure in Workplace, I discussed the poor management in NCR Company.

NCR was a branch of listed multinational manufacturer of banking and cashing machine located in Waterloo, Ontario, was moved to Mexico before outbreak of Financial Crisis 2008 and made 1300 people lost high quality jobs – good paid with good work environment.

The cause was simply the reckless behavior of some mindless individual.

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4.2.1.. A man friendly advises others to slow down the work with smile

When I newly work there was with 6 people to assemble a machine. My job is installation of electrical wires and switches on the empty case-frame of the machine, and then other people install the parts insides and make final testing for sending to customers.

The people are very friendly in the work team. After one hour of my first day’s work, a gentleman called Jimmy (anonymous) friendly told me that: “please do not work too hard like this; you may go to washroom to have a rest, or go to other work station to talk with friends. Any way, you should slow down the work.” Then, I noticed that other people were talking and joking with a slow working.

Compared with other Companies, that NCR Company has occupied the top of the food chain with welcomed end products, it certainly has greater profit margins supported by an enviable team of skilled technicians and operators. So that it should be running better and sustainable. However, it was moved to Mexico earliest before the Financial Crisis 2008.

Now, looking back the overall production efficiency at that time, in my work team, only reached about 50% of total production capacity.

About half a year later after the NCR Company was shut down; in a supermarket, I met Jimmy (anonymous)  who once advised me to work slowly. We were talks a while. At that time, he was looking for a new job after worked for a job agency a couple of months.

Now, from whatever point of view, in NCR Company, he asks others to lower down the work speed are not associated with any reasons for his own interests. His payment was over $ 20/h in NCR, but for Job Agency or any other job may less than $12/h.  I wonder that maybe was him to have made the Job Agency closed again, because that was his hobby.

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4.2.2.. A supervisor was never supervision in work but has to leave for dodging trouble

People may ask that why supervisor did not play its supervising role? Indeed, the supervisor was just nearby every day and was clearly seeing and hearing what was playing in the workplace, but, besides hard works as general operator, he seemed have never taken his supervising role.

 Because of low productivity, every year before Christmas, the company must recruit a lot of temporary workers to complete the backlog of the orders, it was just in such a busy time, one day, the Supervisor told me that he will leave for vacation about two weeks. 

At first, I was very surprised and even doubted whether I misheard what he said, or he was in joking.

Since that the production was so busy with so much new temporary workers, as a Supervisor who takes the main management responsibility, why, at this juncture to leave for vacation?

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4.2.3.. Temporary workers collectively smashed equipment after learnt being laid off

A few days later, I went to work, my team colleagues asked me that: did you watch the TV this morning, in other department, the night shift temporary workers collectively made trouble, even to have smashed some equipments after learnt that they was laid off.

Some people might doubt that how did this happen?

A few years later after the NCR closed; I talked with an acquaintance who once worked in NCR Waterloo, to have known that, in the NCR, the payment will be more than $14 per hour after hired as full-time employee, which is much higher than that of any other companies.

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4.2.4.. The sky of management and the earth of labors have been swapped the position

Now, we would realize the reason that Supervisor left for vacation in the busy juncture. He was to dodge for avoiding trouble. Also, we may easily imagine that the Supervisor leaving for vacation might become routine manner at the busy juncture in before Christmas every year.

It is really an incredible matter. A Supervisor as middle management in a legitimate multinational company, his work should be aboveboard and dignified; however, he had to act as that of criminal to dodge some time every year, but conversely, the criminal manners of those workplace troublemakers were acting as aboveboard and dignified, there no one dared inhibit them.

This might be the most absurd thing in the world. It is simply as that of the sky and the earth has been swapped the position.

Indeed, the supervisor never says anything for that Jimmy (anonymous)  slowed down the work. He seemed have never taken his supervising responsibility besides hard work as a general operator.

Now, we can see the difficulty of the corporate management.

We need a powerful means to prevent such sadness playing continuously. For this point, the ISO standards and work performance linked payment will play a perfect role.

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4.3…The closure of Triton Company

Dec. 21, 2010, in article Canada’s Corporate Management & Reducing Psychological Pressure in Workplace, I discussed the poor management in Triton Company.

A Canadian PCBs manufacturer once located in Kitchener Ontario, Job assigned by team leader, supervisor supervised there every day. Operators could talk each other whispered, sometimes some young operators speak loudly, and supervisor would condemn them loudly, too.

As human culture nature, usually, most people have the self-esteem and eagerly to do perfect job to avoid being suspected by the eyes of contempt. In Triton Company no one can keep their self-esteem because they finished products were being put together in two or three operators’ group, which cannot distinguish who is defects maker. They have bonus too, but the amount is not linked with the work performance and the profit. There were different in paid amount of bonus between the employees, but the determination was according to the personal impressions of team leader and supervisor without a convincible objective data supported. So, the result was negative. It acted as paying money to lower down the production efficiency with causing argument and psychological pressure.

In most of the time, the old employees worked as a teacher with the new comers because employees quit frequently. I think, the partial reason of those people quitting was due to the confused management cannot preserve their self-esteem. In this kind of work mode, the products’ quality is certainly uncontrollable. The Company was being run as a training school paid training fee for their competitors. Finally, a large number of products’ returns happened, then the orders reduced, and then Company’ door was being shut down.

There an operator named John is worth to special mention in this company.

He was a drunkard and heavy smoker. Due to the bad habit damaged his brain; he was unresponsive with hands palsy. He obviously cannot do a perfect job, especially the production of PCBs, which needs more mental concentration and deft hands. But, because of that supervisor also was a heavy smoker and at break time they belched out smoke and swallowed fog together.

John could not do any job properly, supervisor changed his job position many time, finally sent him to make final functional testing for PCBs by a test-machine. Obviously, this was a critical position that controls the quality before sending PCBs to customers.

Obviously, that John has played a key role in the closure of the Triton Company. We may say that is a mindless employee to have ruined a good business – good products with stable customers. But the key cause was the chaos in the management; it could not exclude such an incompetent staff timely.

Since some individuals’ work harder, so they was hired as permanent employee much earlier than that of others and the bonus was higher than that of others, also those outstanding individuals was troubled by others, not only defamation, even being made defects on their finished products. This is the reasons that people are often willing to flow others and do not want to outstanding.

This manner is no problem in daily life interpersonal activities. However, in the large-scale production, it is hazardous because it would reduce overall production efficiency, even force good employees to leave. Sooner or later the enterprise would be destroyed.

In the most of time, the most of people are self-esteemed. They more concerned about is not the money, but eagerly hope to be fairly and dignifiedly treated. A work performance evaluation system is the best way to meet the need perfectly.

Grote Electronics is a vivid example, now is still healthy running.

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4.4…The relocation of Taming Foods

Taming Foods was a cookie manufacturer located in Waterloo city. I worked there for two weeks from a job agency before financial crisis 2008.

Every day, there a lot of cookies were put into garbage from exterior damages; due to the cookies cannot be reused as raw materials besides as the feed of livestock farms.

Such loss was easily avoided.

I worked in packing position in a cookie production line followed with a baking machine that was like a Ferris wheel under the charge of other team inside of a door. The newly molded biscuits were soft, sticky, and easily adhered together to stack on the conveyor belt in the entrance area of the baking machine. Each time the stacked alarm sounded, the operator inside rushed out to fix the problem, the stacked cookies were already in a large number of, the operator has to stop the production line for processing. Not only cause a big loss of biscuits, also badly affected normal production.

My job was put boxed cookies on the skid from a conveyor belt that can keep more than 10 boxes in a line at same time, after put the boxed cookies on the skid; I have a lot of free time. I often quickly put the boxes on the skid and then quickly run to the position that can both watch the cookies stack in the entrance area of the baking machine and the boxes of boxed cookies on the conveyor belt.

When found the cookies started to stack, I quickly fix it easily without the stop of the production line anymore. Thus I worked at a position that totally avoided the stop of the production line at the time that I could well finish my normal duty.

But, my team members were angered for that what I did, they many times warned me to stop to help the work of other team, so that they have the chance to happily watch the operator inside rushed out to fix the problem and to stop the production line to create a time for rest. 

About one week later, the site supervisor told me that, hi, Frank, I appreciate your work very much, I would like to give you another job. I said, no, thanks; I will quit this job here in next week.

Obviously, my team members have complained about me to the supervisor.

The talks of the supervisor made me dismay, he had no sense to improve the unreasonable operation process, but mindless followed the opinion of the mindless employees. My practice had proved that let packaging group responsible for baking machines is the most reasonable way.

A little improvement without any extra spending will totally improve the production efficiency, but, cannot practice in Canadian business.

Later, I learnt the Taming Foods in Waterloo will be merged into the plant in Cambridge, Ontario, but, finally, with the plant in Cambridge together to be merged into the one in Guelph, Ontario.

Before, worked in the plant in Waterloo, the people could walk home, but, now they have to drive more than half an hour to Guelph, many of them have to quit the jobs.

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5…The decline of manufacturing caused ripple effect negatively

May 27, 2016, the article Liberals, Tories spar over fiscal figures reported that: “For March, the government posted a $9.4-billion deficit compared with a deficit of $3 billion in the same month last year. The shortfall came as revenue fell $5 billion to $24.1 billion. Personal income-tax revenue fell by $1.1 billion or 9.4 per cent and corporate income-tax revenue fell by $2.1 billion or 37.3 per cent.”

The reason for the decline of the revenue in personal income-tax and corporate income-tax maybe has the reason of government tax adjustment policy, but, main part, I think, was from the decline in businesses operation.

Such as, Dc Foods Waterloo, a meat foods processing company, the profit of per unit sales has been sharply shrunk in recent years. Some of the products are even profitless; the production is only for keeping the jobs of the employees. Above two Entrepreneurs of the stroke sufferer and the heart attack sufferer were both from in this plant.

For the profit of per unit sales sharply shrunk, the direct cause was that prices of the raw materials are rising, but the prices of the products sales did not sync up under increasingly fierce market competition. The meat foods processors have to keep or even lower down the selling price for keeping their market share, while bearing high raised production costs.

That is the fact and an intuitive view in the obvious way. Perhaps, few people would see the problem in a little deeper scope.

The root cause is the increasingly deterioration of the economy, which caused decline in the purchasing power of society due to that there more and more business closed or outsourced, and more and more Canadians jobless or work on the position with lower paid.

Such as mentioned in above article Fight Union Busting Through United International Class Struggle revealed: “Unemployment in cities like London and Windsor is around 10 percent. Many workers who still have jobs have been forced to take huge cuts in pay and benefits. This race to the bottom was kicked off by the CAW leadership’s surrender of $19 to $22 an hour in givebacks to General Motors and Chrysler three years ago as part of the auto company bailouts engineered by the U.S. and Canadian governments.”

“Some 450,000 manufacturing jobs have been destroyed in Canada since 2006. Southwestern Ontario, long the country’s industrial heartland, increasingly resembles the adjacent U.S. Rust Belt with its abandoned, hollowed-out factories.”

Auto industry decline hits young families hardest, study finds.

Suffered with such tough economic environment, for years, Canadians have to carefully manage their increasingly deflating wallet, to limit the spending on the basic necessities of life. For them, the delicious high-protein meat foods have become a luxury; it is too expensive to touch.

Enjoying delicious meat foods is next to the basic necessities for survival.

In viewing above, no matter how difficult it is? We have to manage a way out to save manufacturing in Canada.

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6.. Canadians must fight to avoid the tragedy of Greek government-debt crisis

At the start, I once mentioned my article Canada Pension Plan must develop in kind base and as key body of state-owned economy, under sovereign debt crisis the Greek retiree refuses to eat from the garbage, publicly commits suicide, and also I indicate that the obvious reason was that Greek government was too poor to support their citizen, since that the populist-kidnap has disabled government, which caused low social productivity and thereby destroyed creation of revenue.

For avoiding the tragedy of Greek happen in own home place Canada, we have to further dig the reason.

Oct 18, 2011, article Greeks Work Hard, So Why Is There a Debt Crisis reports that, Greece’s minister of development and competitiveness Michalis Chrysochoidis said: “There is a myth that the Greeks don’t work many hours. This is a big lie; the reality is that the Greek people work more than any other country in the European Union.”

With industrious people, why the Greek economy is so uncompetitive?

The article mentioned that the McKinsey consulting firm provided answer on this concern by the report of Greece 10 Years Ahead.

First, Greece has the lowest labor participation rate in all of Europe — just 66 percent of the employable population has jobs, compared with 73 percent in the European Union and 70 percent in Southern Europe.

Second, not only are fewer Greeks working, those who do are far less productive: A Greek worker’s productivity comes in at $35 an hour, compared with $49 an hour in the EU, $55 an hour in Central Europe, and $58 an hour in the U.S..

It was that "a relatively smaller percentage of Greeks work longer and harder hours than their European peer to support a generally unproductive system”, and thereby caused that Greece was unable to grow at a sufficient rate to generate enough tax revenues to pay its bills.

Therefore, for avoiding the tragedy of the Greek to happen in Canada, we must improve productivity by encouraging more Canadians to be engaged in harder work.

For this concern, at first of all and the absolutely necessary is the ideological updating in social governance.

In this regard, Germany provided good example, though the problems may have different between two countries; but, the vital important key is same - well play the governing role of the State Apparatus.

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7.. Why that Germany has no crisis but acted as the savior of the Europeans

Over the years, world widely, people view that owned expensive German-made goods as a symbol of noble status. In recent years, the economy of the most countries were miring in economic recession, especially its neighboring European countries; but, the economy of Germany has been thriving in creating record high export surplus year after year.

Most people would agree that was due to the smart and industrious of Germans, I agree that the quality of Germans is high, but, it is far from the decisive reason for creating economic miracle.

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7.1.. Agenda 2010 forced people to seek work rather than rely on social benefits

Above, I mentioned that Greece has the lowest labor participation rate in all of Europe — just 66 percent of the employable population has jobs, compared with 73 percent in the European Union and 70 percent in Southern Europe. Now, as comparison, let see the rational practice of Germany.

May 1, 2016, I once wrote article Germans are always able to make decisive decisions in the toughest critical time to try to dig the reason, in which I indicate that:

“The admirable performance of German economy was not mainly due to the high quality of German people, but, due to the rational governance.”

“Since that, only in 13 years ago, the German economy was still considered as a sick man of Europe, when the economy of many European countries was in steady growth, while the German economy is in the anemic state; such as, in 2003, the economy of Germany grew by - 0.4%, just better than that of other negative growth country - Portugal.”

“It was that former German Chancellor Gerhard Schröder who saved Germany by full effort to pass the most controversial legislation of Agenda 2010. But, he had to be paid with the price of 60 thousands party members quitted and in oncoming general election failed.”

In his government statement, at that time, Mr. Schroeder said that: the goal of the reform is to make Germany return to the leader position of the European economic and social development with more economic growth and more employment.

The harshest measure was to have largely reduced unbearable social benefits in encouraging people lazy, due to that unemployment benefits need not to pay taxes; the amount was higher than that of made by a new job. Under such policy, people would rather be unemployed at home, did not want to work; some even made extra income from underground career, thus caused serious social ills.

Agenda 2010 reduced the time of receiving unemployment benefits from 32 months to 18 months; as well the proportion of pension contributions from 19.5% increased to 22% and raised the retirement age to 67 years old. Before unemployed over 55 years old can continuously enjoy unemployment benefits after 18 months, but, Agenda 2010 regulated those people have to accept Gov-recommended any kind of work, otherwise, the unemployment benefits will be cut by 30% for two consecutive months; besides that have to pay insurance premiums, employees also have to pay an additional charge on seeing doctor, receiving medication and hospitalization.

The reform was to force people to bear more social responsibility, to force the unemployed to actively seek work, rather than negatively waiting or striking for the relief of government.

As a supporting measure, Agenda 2010 reformed labor market, in particular, to have eliminated a lot of unreasonable employment restrictions, to provide service for re-employment, so that people, who were looking for work, can quickly find a job; in which, the most of the people who find the job were going into a low-wage area, such as, hourly workers, temporary leasing workers, short-term contract workers, and freelancers, the number of such employment increased significantly.

The facts show that, even if in manufacturing giant Germany, the high paid jobs are not available as expected. The increase in low paid employment meant the increase in the businesses of low profit margin.

Germany's unemployment rate was reduced from 12.88% in 2003 to 3.9% in 2017.

The low unemployment rate and record high export surplus year after year were the best proof for the correctness of Mr. Gerhard Schröder and his Agenda 2010.

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7.2.. A correct practice of Mr. Gerhard Schroeder derived from the noble realm of thought

Jan. 15, 2012, the former German Chancellor Gerhard Schroeder was invited in the talk show of China Central Television – CCTV - The Choice of germany in the economic reform. Follow is the video screenshots and the translation from the dialogue in Mandarin.

 

At the start, the Host introduced that there German media once praised Mr. Gerhard Schroeder as that, if he was the Titanic, then the sink one would be the iceberg. Mr. Schroeder laughed: I might choose to bypass the iceberg, rather than to run into it.

Mr. Schroeder said with that:

“Firstly, it is that people who are working must pay some relevant insurance for those who are too small, too old, sick and unemployed; we need to reform our nation's welfare, so that those who are working can afford related costs.”

“Secondly, it is because of globalization, we have to deal with global competition.”

“Thirdly, we must spare some funds for education and R&Ds in science and technology.”

“Now, Europe was in crisis, all countries must be reformed, and the conditions are more difficult. Fortunately, Germany has reformed in ahead.”

“There was no any rational alternative. Now, we all knew that the reform was necessary, we must make the reform. Even it will adversely impact our election, and also we certainly did not want to defeat in the general election, which was a risk for us at that time, we had to weigh between that whether for the future of own country to face the risk, or for the win in the re-election to avoid the risks. However, if we avoided the risk, future generations would say that we did wrong thing at the right time. I think, in comparison with avoiding the risky, my choice was correct.”

“If politicians were convinced that was favorable for own country and people, then, even if to be defeated in the general election, they must do the same, the 2010 Agenda was the case. Now, this model has been successful in Germany. People have been recognized that, it is necessary to reform the EU by the same way.”

Mr. Schroeder emphasized that there were two major problems that faced in the reform.

1. In our society, if you ask people whether the reforms are necessary, the answer must be the yes, but if the reforms touched their vital interests, the situation will be different.

2. In our societies, there is a time difference, that is, today made the decision that bring immediate negative impact to people, the possibly positive effect will be only able to emerge after two or three years later.

Mr. Schroeder said that: “rational politicians who must be able to make a rational choice between own political life and the interests of those people who are taking care of their families by hard working.”

Now, looking back, the great contribution of Agenda 2010 were that saved Germany from being a sick man of Europe and thereby avoid the tragedy as that of Greek debt crisis.

Agenda 2010 has moved economic interests from personal back to national, from private back to public, thereby enhanced the economic strength of the government, as return, all people were able to enjoy a stable social environment that created by a sustainably developed economy.

The process of any social reform is the process of redistribution of social interests; it is inevitable that will hurt the interests of some people; these people would be strongly opposed naturally.

Until to today, the practice of Agenda 2010 has been opposed by many Germans.

Mar. 16, 2017, a Mandarin article Germany’s Social Democrats make big welfare promises reports that, in 2017, the German campaigners are campaigning by the campaign-slogan that will raise welfare by breaking the Strict Regulations of Agenda 2010.

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7.3.. Legislated contribution-linked bonus drives Germans into innovative activities

Viewing the successful practices of best run businesses world widely, the common ground of those optimized management approaches were in well motivating employees to fully dedicate their intelligence into business development by contribution linked payment or bonus based on strict regulations - accountability.

In fact, people admired German-made products were not mainly due to the smart and industrious of Germans, but, the rational governance.

May 28, 2012, in article The DNA of the Success of German Manufacturing, I indicate that, the driving force for German outstanding manufacturing mainly comes from their legislated management for Rationalization Proposals - PR, which is to extract bonus from the cost saving of the application of the proposals to encourage employees full heartedly into innovative activities, which was initiated firstly in 1872 by Mr. Alfred Krupp who was one of a period-owner in a 400 years European family business. Now it is popular in German society.

Germany has established a sound management system of RP with corresponding incentive policies and accumulated a lot of valuable experiences. Such as, that set up specialized department and specialized personnel to manage RP, the employees can easily input the contents and query the implement results of RP through network system.

The bonus criteria for RP are basically same in different German companies. It is according to the net cost savings after implementation of RP in the first year. It divided into several grades, specifically, the annual net cost savings within the 2,500, according to the following standard bonuses:

      Annual net cost savings          Bonus

                    250 Euros                       20 Euros

             251-750 Euros                       75 Euros

           751-1750 Euros                150 Euros

         1751-2500 Euros                250 Euros

 Annual cost savings are more than 2500 Euros, then, the bonus is 25% of the actual amount of net cost savings. For example, net cost savings is 5000 Euros, and then the prize money amounted to 1,250 Euros.

Some RP cannot estimate the direct economic benefits, but can play an important role in improving safety, preventing accidents, protecting environment, improving product quality and enhancing corporate-image, and thus can make indirect economic benefits, then, according to the grade of lowest, low, medium and high respectively give 20, 75, 150 and 250 Euros or material reward.

In accordance with “Personal Income Tax Law” of Germany, material reward is tax-free. The taxes of bonuses are paid by enterprises.

By this way, employee can easily and freely exert their talent into business development,

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7.4.. The economic miracle of China and Germany derived from well playing human nature

There were many studies in exploring the secrets of the economic miracle of China and Germany, but few touched the fundamental essence.

Feb. 09, 2014, in article Management is the Art of Playing Human Nature, I indicate that generally view the results of many studies, human behaviors are determined by dual natures: The natural (animal) nature of those inborn selfish instincts and the cultural nature of those acquired altruistic qualities. In consideration of human natures, we may say that, the Management is the Art of playing human natures, which is to finish purposeful tasks with human culture nature by meeting human greedy of animal nature with payment under the enforcement of regulations. Therefore, the Management is the Art of playing human natures.

The success of the capitalist practice is not fully due to the Democracy Governance, but due to the Market Economy that benefits society by meeting the greedy of human animal nature through gaining profit according to the needs of the society in the marketplace.

The failure of the socialist practice was not fully due to the Autocracy Governance and the Planned Economy, but essentially was due to that it over relied on the human culture nature by madly suppressing the exertion of human animal nature under the enforcement of State Apparatus.

There were a lot of researches on the economic success of China, and most of them attributed the success to the magic of the Invisible Hand. But, that was not fully true with ignored the essence - it was that China has broken the egalitarian wage system, that implemented for decades in the socialist period, to have largely increased the share of work performance-related payment.

The legislated management of Rationalization Proposal shows that Germans well understood the harm of the weakness of human nature and specially set a strong measure to suppress it. By this way, employee not only can easily and freely exert their talent into business development, but also the management staff dare not play their ignorance – to hinder employee innovative activity or dispossess their fruits of innovation.

On this world, I never heard any country as that of Germany legislated for the management of Rationalization Proposal, I never heard any politician as that of former German Chancellor Gerhard Schröder who exchanged for the country's future by own political future.

I appreciate the rational of Germans in social governance, Feb. 16, 2014, I once wrote article Why Can German Economy Fly Against Economic Recession, in which I cited many cases to show Germans rational and outstanding. They always go on own believed rational way and never follow crowd.

In China, the practice of Rationalization Proposal has been for decades.

As same as that of in Germany, in China, the labor unions are not working for organizing people striking, but, for well helping the profitable operation. They often organize employees to raise Rationalization Proposal with some material awards or bonus.

In China’s enterprises, once some operator found the problem that needs to be improved, the company would set up three-pronged team by operators, technicians and managements to work together. The operators are able to find the problems, but may be without the ability to solve the problems, so they need the help of the technicians for doing some design, and the managements may help to coordinate the whole practice with some services.

Now, we may understand that, whether is in Germany or China, the practice of the Rationalization Proposal was conducted in the organizational base, Germany even legislated, thus may easily overcome the negative effect of the weakness of human instinct.

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8…The potential for helping manufacturers stay in Canada

Obviously, for saving manufacturers, only relies on the blood transfusion from government subsidies is far enough, nor a long-term solution.

Such problem must be solved in the root level, which is to essentially reduce the operational cost of manufacturers in Canada. All in all, we must help manufacturers to reach a basic balance in operational cost between in Canada and in underdeveloped countries, even in the United States. So that stop them outsourcing, even attract investment into Canada.

According to my long observation and consideration that helps manufacturers to reach such balance is easier than that of people’s common imagination at the acceptable way in both of employees and employers, due to the hidden costs for business operation in the underdeveloped countries.

I remember a story that once happened in Kitchener Ontario years ago.

A company outsourced to an underdeveloped country, but, soon it moved back; because of the production there cannot properly control quality. The company had to call back their former skilled employees with higher payment than that of before. The company was with a beautiful dream to gain, but, got a return in bigger loss.

There was a similar case from China.

It was a company of China outsourced to a underdeveloped countries in Southeast Asia under the pressure from a main customer of Japan, but, after the products produced out, there was no expected room for lower down the price at all, due to that, though the payment was really largely lowered down, but, many other unexpected costs emerged, such as the cost in materials transportation due to have no essential supply chain in this country, with unreasonable high customs fees, and such kind of unreasonable fees under poor social governance, especially the local workers were difficult to be well organized to make a production for delivery on time with a confident product quality.

Poor social governance with low quality citizen is a main reason that a country stays in poor, and also it is the big obstacle for business operation.

Above unfavorable factors in other countries are just the favorable factors for us to help manufacturers stay in Canada.

Then, let’s take auto makers as example, to see that how much payment that they can afford in current Canada? 

I have a friend from Laos, recently, he job-applied and was interviewed in Toyota. He said that if he get job there, the payment will be over $20 hourly, I remembered about $22 something.

We can roughly consider that $20 hourly payment is the balance point for auto makers stay in Canada, and $20 - $8 = $12 is the hidden operational cost in Mexico due to no proper production supply chain.

Suppose that we take $20 hourly as reference to conduct auto makers reduce their operational cost by lower down payment for general operators, local employees may be most possibly accepted in comparison of losing current job to hardly look other one with more lower payment.

Above, only is an example for demo, indeed, such process has been done already in 7 years ago, according to Mar. 16, 2012 Fight Union Busting Through United International Class Struggle reported, in Canada, General Motors and Chrysler has lowered payment to $19 to $22 an hour in three years ago as condition of getting governments bailouts. The three years was counted back from the publish date of the report in Mar. 16, 2012, now is 7 years in 2016.

The significance of such process at that, it is not only to have saved auto manufacturers, but, it has provided a feasible method for saving other manufacturers.

Now, let takes U.S. Illinois-based Caterpillar Inc. closes its Electro-Motive Diesel (EMD) plant in London as reference to discus.

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9…The U.S. business environment is better than that of Canada

Mar. 16, 2012, the article Fight Union Busting Through United International Class Struggle provided some useful data for understanding that why Caterpillar Inc. largely cut the payment and benefit of the employees in the factory in London Canada. It provided a balance point in payment between Canada and the United States for similar manufacturers.

“Caterpillar’s move to lock out the 465 members of Canadian Auto Workers (CAW) Local 27 at its London, Ontario, Electro-Motive plant on New Year’s Day marked a further escalation in the capitalists’ war on labor. The company, notorious for union-busting in the U.S. Midwest in the 1990s, demanded that the CAW swallow a pay cut of nearly 55 percent—from $35 to $16.50 an hour—along with the elimination of the pension plan.”

“Rejecting these outrageous demands, the CAW set up round-the-clock pickets and called on the labour movement to hot cargo (boycott) any locomotives sent out of the plant.”

“But Caterpillar dealt its final blow two weeks later by announcing the permanent closure of the factory. Production is to be shifted to a retooled, non-union plant in Muncie, Indiana, where workers will be paid $12.50 to $14.50 an hour. The announcement came two days after the Indiana state legislature adopted an anti-union law that bans the Closed shop.”

The report provided evidence that Caterpillar made pay cut from $35 to $16.50 an hour in London plant was according to the availability in the United States, where the payment was $12.50 to $14.50 an hour and without the interference of the Unions.

The significant was that Indiana has legislated anti-union law to limit the activities of the Unions, which has created the favorable business environment for manufacturers. Such as:

Feb. 1, 2012, reports Indiana becomes 23rd right-to-work state.

Nov. 6, 2014, reports In defeat for unions, Indiana's top court upholds right-to-work law.

The right-to-work law was enacted by many states in the U.S. in the 1940s. It prohibits the requirement that non-union employees at unionized workplaces pay a monthly fee comparable to union membership dues.

From above information, on the standpoint of employers, in the respect of lower wages and limited the activities of the Unions, the employment environment in Indiana U.S. was better than that of in London Canada.

One tree can reflect whole forest.

In general, the business environment in the United States has been better than that of in Canada.

Besides objective policy factors, that optimal enterprise management creates high production efficiency has been playing key role. Such as:

Canada’s productivity lags U.S. in ‘virtually every instance’.

Canada losing steam in its push for an export boom due to the high cost in making goods than that of in Japan or Britain.

Since Jan. 20, 2009, Barack Obama took office; the United States has gradually introduced a number of policies conducive to enterprise development in the United States. Such as:

Dec 16, 2009, United States Manufacturing Enhancement Act of 2010.

Aug.11, 2010, Another Step for American Manufacturing.

According to the Acts, the United States made tariff reductions on imported raw materials for the local manufacturing sector, and implemented tax incentives for US companies that invest in the local community, and so on.

Such policies attracted manufacturers returning to the United States, also attracted a lot of China’s investment.

We cannot ignore the impact of illegal immigrates on the lower down the payment.

And also, the wages reduction has been a trend globally.

Sep. 06, 2014, Throughout the rich world, wages are stuck.

Jul. 13, 2015, Since the financial crisis, almost all Americans have seen their wages fall.

In addition, there was important part that people rarely pay attention, it is not about employment and wages, but, for long strategy in economic development, though there is some digressing, but, it is worth to mention, which was Gov-funded non-profit R&D Institutions.

Jan. 23, 2013, in article Gov-funded R&D Center Boosts Taiwan as One of Four Little Dragons, I have discussed its significance.

Taiwan’s Industrial Technology Research Institute (ITRI) is a Taiwan Gov-found and later self sustained non-profit R&D institution in 1973, and headquartered in Taiwan, with the branches in Tokyo,  Berlin,  Moscow,  Eindhoven and California Silicon Valley. Currently there are 5,777 members with background of 1,392 PhDs and 3,126 Masters.

Its practice is new tech R&D and business incubator by spinning off the matured research achievements with related researchers together as independent enterprises.

By this way, Taiwan have created more than 228 start-ups and spin-offs with over 140 CEOs in the local high-tech industry, among them many are world-renowned high-tech companies, such as TSMC and  UMC. Now, it holds more than 19,890 patents.

The Gov-found non-profit model in enterprise management with no shareholders can ensure the R&Ds future oriented by avoiding the pursuit of short-term profits, and the earnings can be used for new R&D investments rather than to be distributed to the individual hands.

The ITRI has been the essential innovative force and think-tank with open Laboratory to provide full serve for small and medium sized enterprises and drive Taiwan developing as one of The Four Little Dragons.

Now, China and the United States are eagerly replicating the model in a large number of.

Jan. 1, 2012, a Mandarin article indicates that, in China, the model of ITRI is being reproduced in many provinces and cities, in continuously heating up throughout China.

May 15, 2013, the article Obama Administration Announces 3 Advanced-Manufacturing Innovation Institutes said:

“The administration of US President Barack Obama announced this week that it is committing US$200 million to create three advanced-manufacturing innovation institutes, focusing on digital manufacturing, lightweight composites and next-generation power sources.”

“The new institutes are another step in Obama’s plan to reboot America’s manufacturing sector with a National Network for Manufacturing Innovation. Obama’s fiscal 2014 budget requested a one-time $1-billion investment to fund the network, which would consist of 15 more institutes around the country.”

“’Several of our main global competitors in advanced manufacturing have established innovation centers to bridge this “missing middle.’ In Germany, there is an extensive network of announced this week that are funded by industry, universities, and government. In Taiwan, there is the Industrial Technology Research Institute, jointly funded by industry and government. But in the United States, no such national network of innovation centers exists.”

When writing this article today, when reviewing my article Gov-funded R&D Center Boosts Taiwan as One of Four Little Dragons, it made me more sadness.

Needless to say low wages in Mexico, only the rational initiatives to promote manufacturing of the United States, Canada is far behind.

Besides those, in Canada, employees have an incorrect mindset on the boss in badly affecting work ethic and productivity.

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10…We still have hope to reopen Electro-Motive plant in London

In current economic situation, it is difficult to create new jobs, for the 450 job positions of Electro-Motive plant in London, we should cherish.

From the fact that Caterpillar to close Ontario locomotive office until Dec. 31, 2015 in 3 years later since it closed the plant in 2012, which was announced in Oct. 15, 2015, it was in advance of two months to deadline, I firmly believed that Caterpillar was still with the hope of reopen the plant in London, so that they gave enough time for Canadian government to deal with this issue.

There was other proof, in final closed office, they kept 50 people since 2012, which includes locomotive testers, design engineers and production planners, and they are the essential staff for reopening the plant.

Long-time laid business foundation - sound production systems – well equipped equipments and well skilled personnel, matured products under a matured market. For any business, it is hard to be broken away.

I firmly believed that, for keeping Caterpillar’s London plant to stay in Canada, we still have room for making final effort.

Jan. 26, 2012, the report What will it take to win the lockout at Electro-Motive Diesel revealed the truth of workers did not accept the conditions of the Caterpillar.

It was that the workers have fantasy.

"If they wanted to move the plant already it would be gone. They don't have the skilled [work] force, I don't think," said Chris Whitty, a locked-out maintenance electrician.

"You can't learn it overnight, it's not like an assembly line where you put the part in and push the palm buttons down. It’s old-school manufacturing; you're assembling massive pieces of equipment with a highly skilled workforce."

Now, the fantasy of the workers was totally broken, they have to accept the reality of pay-cut.

The conditions for reopening of the Electro-Motive Diesel plant are ready; the key is how to trigger. I think that start unofficially will be better.

The Mayor office of London (mayor@london.ca) may contact local newspaper, let some reporters to investigate the life status of the workers, and write investigation report about the life of the workers after lost the jobs.

At the same time, to learn the opinion of the workers for reopening the plant. If the majority of them are support, the things will be easier; we can have the workers self-organized to contact with Caterpillar Inc. to discuss to reopen the plant.

In the process of investigation, the reporters may seek the advice of employees, to identify candidates for the formation of workers' self-management committee.

Telephone contacts by workers themselves may simplify and speed the process of the investigation.

The workers' self-management committee may act as a bridge to connect workers and management to join hands promoting the development of the plant.

The hostile era of workers against employers has become obsolete, we need to start a new era of workers and employers cooperate together, to struggle together, to enjoy the fruits together.

Under our hands create a new era of business management.

TV interviews workers' life after losing job may help people cherish enterprises where they are working in.

Note: in Jan. 19, 2020, 8:52, when revising this article, I think of that before Caterpillar announced to close Ontario locomotive office in Oct. 15, 2015, I once read a post that seemed to be written by an employee, said that:  we are willing to accept the terms of the company's pay reduction. In fact, the level of wage reduction is not as low as reported, that is for those who do not have the technical skills. For those positions require technical skills, the salary is still quite high and is higher than that of the similar position in other companies.

Recalling back in today  I can't help but tearful, how weak and desperate of the voice was. 

In human society exists an inhuman behavior, it is that the rational people are always abducted by the irrational people towards bad helplessly.                                                                                                 Back to Top

11…The solution for helping manufacturers running in Canada

In view that old way cannot went through, we must smartly explore a new way out, no matter is in social governance or business operation.

According to my experiences, the poor management based on poor social ideology and corporate culture is the main cause that Canadian manufacturing declines. So that firstly is to reverse poor management.

Follow is some successful management methods that will be able to improve the corporate management in Canada.

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11.1…ISO, BPR and Amoeba can well realize Accountability

11.1.1…ISO

There were reports taking saves Energy 30% by ISO50001 in 3M Canada as a proud achievement. However, I would like to question that, by the same group of people with the same equipments in the same place, why they could not effectively save the energy similarly before the implementation of ISO50001 standards?

The achievement in energy saving is also reflecting the CHAOS in the management of 3M Canada. It is common in many Canadian enterprises, which is one of the reasons of the Canada's Mid-Sized Firms in Decline.

If there was no mandatory of the ISO50001 standard to strictly enforce the staff as that of the law enforcing social members, only relying on their management team and their own developed management rules, 3M Canada would never get such an achievement.

In China, as a senior engineer in metal material, I once participated in the drafting of the application documents of the ISO90001 for Oil wells drilling pipe. The deep impression on the ISO documents is that every aspect of the production to be refined and provided concrete steps with formulates specific instructions and regulations. More importantly, each specific operation puts specific person in charge - the responsibilities are clearly assigned to the specific individuals.

The ISO standards are acting as that of powerful business-law regulates the behaviors of the business’ members by exactly identifying that who are responsible to be punished or to be awarded.

In fact, the role of ISO is to prevent mistake in the production by tracing responsibility with tagging responsible mark on the forehead of individual who is on responsible - accurate accountability. At this process, ISO plays a role as enforcing people work carefully.

The experience of 3M Canada in energy saving has provided us a direction for reversing the state of CHAOS in business management, which is to copy the model of ISO standard to develop regulations, with the regulations to optimize the management in our firms, thereby, to dig out potential for gaining profit with an easy way.

We are clear that, in the business running, besides energy saving, there are many management aspects with the plenty of room for improvement in cost-saving. We can imagine that, if 3M Canada improves efficiency by 30% in all of their management aspects, then, see, what will happen? If we all firms in Canada are able to improve the efficiency by 30%, and then, see, what it will happen?

Accurate accountability will dramatically motivate employee’s self-esteem, and the self-esteem driven them consciously full-hearted work in higher speed with avoiding mistake.

In the practice of ISO, the management is being conducted by the written instructions and to be enforced by written regulations, rather than by the management staff orally according to person accord.

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11.1.2…BPR

Indeed, the practice of ISO is similar to the practice of Business Process Reengineering - BPR that is focusing on the analysis and design of workflows and business processes within an organization to dramatically improve customer service, cut operational costs.

In this process, the significant one, maybe that the operators are working according to processes, standards and regulations of the system in detailed instructions, to replace that of taking orders from management staffs.

After a thorough business process reengineering, employees developed a conscious production habits in "thinking according to the production process, speaking according to the production process, and acting according to the production process", thus, the work load for business management is greatly reduced.

In such practice, the achievement of China’s Haier Group in admirable, after business process reengineering, it cut off 26000 middle managers accounting for 30.2% of total staff in a two year period. It achieved great reduction in management cost and largely improved productivity with huge profit gains.

In view of above achievements, ISO management system may make some improvement to be associated with the popular practice in business management - Business Process Reengineering, thereby, to make the development of ISO in more applicability and suitability with easily riding on the development trend.

According to Business process reengineering - Wikipedia that is updated in 5 February 2016, in the mid-1990s, as many as 60% of the Fortune 500 companies claimed to either have initiated reengineering efforts, or to have plans to do so. Now, in 20 years later, that number will be much more.

If associated with Business Process Reengineering, the practice of ISO will be able to dramatically improve productivity in manufacturing, and will be able to play more significant role in the process of promoting the progress of human civilization.

Now, we can see the magic of the ISO in improving efficiency. In turn, the efficiency will produce profit that companies have been hard pursuing.

Even so, the ISO has its shortcomings; it is that it does not touch the management in business expense. For this concern, we need Amoeba Management that takes into account of cost and profit.

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11.1.3…Amoeba

Amoeba is a Management System designed by the creator and the current Kyocera honorary chairman, Kazuo Inamori, Japan.

“Amoebas are in general groups of 5 to 50 people, composed of personnel in a company, with a clearly defined purpose of making profit for itself. Profit is measured using this simple formula: ("Profit per hour = (sales - cost) ÷ working hours"). It is calculated in each Amoeba with the goal being to identify and maximize profitability per hour.”

“Amoeba profit is usually calculated on a monthly or annual basis. The aim is to target plans into action, and create a system of metrics which can lead to increased efficiency working hours.” “Amoebas keep changing from time to time, and the roles inside an amoeba are changed as well.”

The advantage of Amoebas is exactly distinguishing responsibility on cost and profit, but, it seems not directly touch the responsibility on individual.

If we combine use of advantages of ISO and Amoebas to make up the shortages of each other, the result will be perfect.

The combined use of ISO and Amoebas still has some shortage, which is not linked with incentives. Therefore, we still need more measures in incentive and enforcement.

My articles may provide references for this regard.

May  28, 2012, The DNA of the Success of German Manufacturing.

Dec. 22, 2011, The DNA of the Success of  IBM & America’s best run companies.                                                             

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11.2…Evaluates employees' work performance by Computer

Dec. 21, 2010, in article Canada's Corporate Management &amp; Reducing Psychological pressure in Workplace, I introduced Grote Electronics.

Grote Electronics located in Waterloo, Ontario, Canada, it is a branch of the U.S. based Grote Industries, a manufacturers and marketers of vehicle lighting and safety systems. Before Financial Crisis 2008, I worked there for over a year, the commendable point of this plant is that it records and distinguishes employees’ work performance accurately by computers, which can promote the production in highest efficiency with lesser psychological pressure producing, especially timely identify and kick out those people who are lack of responsibility to avoid bigger lost.

In their production site, those needs to be processed semi-products are being put in the containers with a Work Log that provides the products’ information: name, quantity, batch number, barcode, a brief instruction of operations and the place for operator’s signature and stamp with a ID number stamp.

Usually, the operators take the semi-products to work individually without any people’s tasking in advance. This will save some work time.

The first step of operators was to take the Work Log to go to a scan-machine that looks like a telephone hangs on the wall, to scan own palm print, enter own work ID numbers and scan Work Log barcode, and then start to work.

After finished whole container of products, sign own name and stamp with a stamp of ID number on the Work Log and to repeat the first step again as an important procedure to entirely finish one container products. And then put them on a shelf for finished products before working on other products.

Team leader only acts as a nice teacher and consultant. Due to the employees’ team is stable; everyone knew how to do the best job. So, in most of time, in the workplace, you cannot distinguish who is team leader and who is general operator. The team leader is doing the same job with general operator together rather than as doing in the most of other Companies – just walking and looking around. Here, no one was doing this kind job that is directing with an old management method inherited from slavery. The method should be rest in their grave after the slavery was abolished long time ago.

In the working time, everyone is focusing on own job without free talking unless the operation needed because that of work efficiency of the individual is being calculated and recorded between the two time’s scan before and after finishing one container products, which is acting as an invisible eyes to supervise people to force them working harder without the negative feeling that produced under the slavery-like supervision.

Because of the work performance evaluated by computer based on the daily records, no one would doubt its impartiality. Thereby reduce the displeasure or even argument between the staffs or staff with management personnel, which is the main generator of psychological pressure.

The records may be used to peacefully solve the thorniest issue – layoff people when Company downsizing without hatred causing. Because the layoff process is based on the work performance backed by daily records. People would be self-convinced that they were being laid off by own work performance rather than by improper judgments of any individuals.

Here needs special to mention that, when completely finished one batch products, after palm print scan and input the data, in the bottom of the screen of scan-machine will appear the words of Rank, and followed by a number. I guess that it was the work-efficient rankings.

I worked in night shift with about 30 people. In more than a year's time, there were about 20 people from the Job Agency to have left. The shortest working period was only one day, the longest was two weeks. Those people, some individual capacity were not suitable for the job, some are capable, but do not try to do their best. Some got smart. A Indian girl, in first day, was testing whether light-emitting of the diode on circuit board with test-instrument. Typically, a batch of products needed about 3.5 hours to complete. She only took half an hour to complete. Obviously, she was not 100% tested. In next day, I did not see her again.

In fact, the products of Triton Company are similar with the products of Grote Electronics. Only the purposes and the target markets are different. They could copy the management model of Grote Electronics in 100%. In production site of Grote, there are two team leaders, both works hardly with ordinary operators together. In Triton Company, there are two team leaders and one supervisor, in most of the time, they chat with operators after finished their production report on computer and answered some possible questions.

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11.3…Work performance linked payment can save NCR

Management is a kind of art rather than a rigid technology, it provides a special stage for performing intelligent dramas.

For the shutdown of the NCR Company, one of important reason might be unsatisfactory productivity that caused by that of payment was not associated with the working-performance, which was no different for operators who finished 3 machines or 6 machines in a shift. Obviously, this kind of payment method was acting as a cooler to cool down employees’ working-enthusiasm. It also was one of the reasons that had triggered the collapse of former socialist countries. So I once said that in other article, capitalist countries are following the dust of the road that socialist countries have been past.

Suppose that, in the NCR Company, takes 3 machines as basic task of a team per shift, after finished first 3 machines, the fourth one pays $6 to each operator as bonus, the fifth pays $9, the sixth pays $12. Thus would incent the operators to work with full-load. In this way, every day will make extra profits from three extra machines by only extra payment of $189 that may only a little bit compared with gained extra profits. If so, the Company would be still running, that gentleman Jimmy (anonymous)  might still work there with a better payment rather than that of anxious for job-looking.

Here, there a more detailed account can be calculated. When production without bonus, finished 3 machines per shift, suppose the profit margin is 20% after deduction of raw materials, wages, utilities and other basic costs. On this basis, for finishing extra 3 more machines, only need to increase the cost of raw materials and bonuses, then, the profit margins from extra 3 machines may be much higher than that of 20% of from first 3 machines. The bonus possesses magical effect that can satisfy both employees and employers at the same time.

An important step of the success of China’s economic reform was have broken the old wage system that was continuation from that of the Soviet Union, and largely increased the share of payment that associated with individual’s work performance.

Some simple management measures could reduce the severity of the antagonism between employees and employers, and that will be good for all with reducing psychological stress in workplace, also can increase social wealth by improving the efficiency of production. That is the origin of that article.

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11.4.. Promote innovative activities by legislated contribution-linked bonus

 

     See 6.3.. Legislated contribution-linked bonus drives Germans into innovative activities.

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11.5.. Patent linked-reward system and work dispute adjudication system

Jan. 9, 2017, article IBM Inventors Receive Record-Breaking 8,000+ U.S. Patents in 2016 reports that IBM today announced that it broke the U.S. patent record with 8,088 patents granted to its inventors in 2016, marking the 24th consecutive year of innovation leadership. IBM’s 2016 patent output covers a diverse range of inventions in artificial intelligence and cognitive computing, cognitive health, cloud, cybersecurity and other strategic growth areas for the company.

What is it in ensuring a 100-year-old IBM still in full of vitality?

The book <26-years’ IBM career> provided answer. 

The writer was Mr. Kenneth Chang, who emigrated from Hong Kong to United States in 1958 when 40 years old, after 4 years’ work on the production of semiconductor chip from a beginner in GI Company, he transferred into IBM in 1963, and in the following nine years period, he was promoted 4 times and reached the highest technical position of IBM due to his creative works with many innovations and inventions, which shocked all people in IBM.

Oct. 7, 1995, I fortunately discovered <26-years’ IBM career > (Mandarin) in a heap of the used books at a book stall in a Saturday Flea Market in North East China. Since then I take it as valuable treasure. In the past 16 years, I have it with me. In this period, I once several times moved home, even when immigrating to Canada, the entire family property have to be compressed into a few suitcases and weighed accurate to grams, in this process, I have to throw away a lot of favorite books, however, I never consider to discard this book. Because of I deeply believed that the successful experiences of well organized manufacturer are significant for helping other manufacturers’ stable running. It is not only important for whole society, but also for any individual, since it is the preconditions that can provide a stable and peaceful community, in which that people can work and live to enjoy a prosperous life.

In IBM, there are two system in playing key role for promote innovative activity.

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11.5.1.. A patent and reward system with a Plateau Award.

Accumulates one point on each published being approved article regarding science and technology on the Science and Technology Bulletin.

For each patented patent, the inventor will accumulate 3 points. The bonus for first patent is $1,500, plus souvenirs and gold-plated pins, etc.. For each subsequent patented patent will award cash $ 500.

For each accumulation of 12 points, issue a Plateau Award $ 3600 with publishing the names and photos of the winner in company publications. Another accumulation of 12 points with another Plateau Award, and so on. Company may also give quota of awards depending on the circumstances from $10,000 to $100,000. It is very few of people who could achieve third Plateau Award.

Kenneth Chang entered the IBM in 1963, but until 1968, by the reminding of others, he began to pay attention on the reward system of IBM. And since then he achieved seven patented patents, published 9 papers, gained 30 points, and one patent was on pending.

The incentive policy of IBM largely promoted the inventive activities of employees.

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11.5.2.. A work dispute adjudication system

Any business is made up of people; it is inevitable conflict between each other; especially in scientific activities.

R & D management is a dark field; it is difficult to control balance. Because, in the process of research and implementation of R & D project, will involve cooperation of many sectors, in particular, the need for leadership in coordinating role.

So, the distribution of the bonus created by R & D need to take care of all aspects, especially, the main management may take big share. Finally, the prize money into the hands of the actual developers will be rarely.

For dealing this thorny but important issue, IBM set up a complaints system. If someone feels unfairly, he or she can manage up a complaint to higher management, if it is not satisfied with the results, it allowed continuing to appeal to a higher level of, until reaches to top management.

As my view, besides complaint, for solving this problem, company should regulate the prize money as two parts, one for administrative staff, other one directly put on the hands of researchers.

Perhaps the inventor of the inventive concept has no ability to conduct implement, however, because the breeding process of the concept of invention is a special intellectual work, it is not that any person can do, therefore, the inventor of the concept should get of 50 % above in total bonus.

The purpose for doing in this way is to encourage people to innovate, rather than that of only sit back waiting to share the fruits of others.

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11.6.. Profit shared with employee

 

This section was excerpt of my Dec. 21, 2010 article Profit shared with employee in Sunrise Farms DC Foods.

DC Foods, located in 35 Northland Rd, Waterloo, Ontario, is a federally inspected food processor specializing in the custom processing of Par-Fried Batter Breaded quick-freezing products. It was found by Mr. Don Kilimnik and Mr. Rob Curik in 1991, and was acquired by Vancouver based Sunrise Farms on November 27, 2010.

The idea of profit-sharing with employee was initiated by the founder of DC Foods.

At the start, they took 5% of profit as dividend equally to all employees quarterly with the simple purpose of employee can share the fruit that they hard made. 

Later, due to staff’s absenteeism seriously affected normal production, then the distribution of profit-sharing linked to the attendance of employees.

As a foods processing Company, in DC Foods, the most jobs are standing with both hands and eyes busy in a minus temperature environment. Working condition is not very good, but humanized management is good.

In their employee’s team, there are lame, dumb, and even deaf. Every one works happy. Employer’s seeing is, is employee doing the best rather than how much could be contributed. Of course they would assign the job according to the ability of individual employees.

There is about 10% to 35% of total payment being paid as profit sharing based on the basic payment, which is floating with the profit quarterly. This kind of payment makes the employee produce the feeling as a partner to share the profit with the owner together to cheer them working harder with full heart.

They have an automatic packaging machine that is same model with the one that was using in another company. In that Company, the success rate of packaging was 80% – 85%, there was 15% – 20% of packaging defect boxes being shredded into the trash by the operators. However, in DC foods, the packaging machine has been carefully improved. Their method is extremely simple, only with some Plexiglas cemented on the specific area of the machine to make it functions properly. Thus, the success rate of packaging increased substantially. Even if occasionally produces some packing defect boxes, the operators would fix them manually, so that there is no any box is wasted. This is the positive effect of their smart profit-shared bonus policy. If the production cost is reduced, the profit will be increased, and the bonus will certainly be increased, too. Humanized management make the employees feel in working for their own. Although, the foods processing is not a high profit industry, the payment could not be very high. However, DC      Foods is making up the shortfall with making the employees comfortable psychologically.

Traditional management is mostly to maximize the profit with minimizing the cost in payment, not to mention to let the employees sharing the profit. Now it is outdated. Running a business is like sailing a boat against the water current, it is easily to be forced going backward, which can be only avoided by more people paddling with concerted efforts. Profit-shared payment could make every employee doing their best in paddling to ensure a business boat to keep going forward, especially in nowadays hot market competing environment. The higher payment could be compensated from improved productivity by attracting and preserving smart and skilled employees and the long term steady development of the business.

The profit-sharing payment does not mean that eat all profit without preserving the fund for long term development of the enterprises. It only reforms the rigid payment style that paid annually or hourly regardless the company’s profit to make employees and employers shared their fate together. The operation may be as that takes a portion from the basic payment to be paid as bonus in floating with profit. The whole payment should be up or down with enterprise’s operating performance that determined by every employee’s work performance.

The profit-sharing payment is facing all the members of the enterprise rather than only facing top managers usually. It may play a leverage effect in promoting employees to exert their potential, which is different with the financial leverage because of only good no hazardous.

Employer should encourage the employee to joint working in development of products and markets with the profit–associated award, such as 20% to 50% of the first year’s profit from a new product or a new market. In information exploded today, the development of new products and new markets is not a matter limited in Company’s technicians and salesperson, every employee has the potential. There would some smart people be attracted in with their new products or potential ideas from outside the enterprise. There would be more products to be developed and more market to be opened from more people willingly to share the headache that is certainly belong to the employer. Doing business is to put up a performance stage for dancing and appreciating with smart people.

Tragic reality has presented us with a serious question: What is the purpose to run enterprises? Yes, it is for making profit, but the ultimate goal is to make people live better. If an enterprise cannot make employees comfortable, then what is the significance of the enterprise’s existence? The most of human social activities are aimed at a better life with a beautiful hope. Why do we use unbeautiful manner to manage the beautiful activities? We need to call for humanized management.

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11.7…The timely policy adjustment of the government

The strong contenders are there in competing, Canada has been forced into corner with no redeeming retreat.

The option is limited.

Government of Canada should conduct comparative investigation for the business environment in the country of potential manufacturing competitor, and timely adjustment of Canada's policy to ensure a competitive business environment.

Even if that we totally cut off the tax that business has to pay for government, the government will still have incomes from those Canadians who keep the job. Those working Canadians will have ability to pay consumption tax, unemployment insurance, pension insurance and so on.

If we continue at current way to drive manufacturers out of Canada or closed, it is not only that government has nowhere for taxing, the worse is that Canadians lost the foundation for making livings.

In the difficult time, those entrepreneurs are suffering the most psychological pressure; the difficulties in business operation have made them mentally exhausted.

The government should full heartedly take care of entrepreneurs and go to together with them to discuss how to solve the difficulties that enterprises encountered. At least, government should give them psychological comfort by giving them confidence of the full support of government.

Government does not have the ability to provide financial support, but the intimate word of comforts is more effective. A strong psychological support from government will be able to enhance their courage to overcome difficulties.

This little support may be able to help entrepreneurs who make every effort with final physical energy to make businesses success from the edge of failure.

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1.1.8.. For attracting manufacturing, Canada has to balance in taxes and wages

In an environment of market economy, as labor, each of us has become a commodity to be freely chosen. As consumer, we have right to free choice of high quality and inexpensive goods; similarly, the entrepreneurs should also have right to freely choose their quality staff with lower cost in payment.

That chases profit by reducing costs in production is the sacred duty of the business operators, for this concern, the free trade and economic globalization has provided a broad range of options for relocating their production base under the concern of lowering down the operation cost, especially in tax and wage.

Faced with such reality, Canada has no choice besides creates a competitive environment for business operation with a proper level in tax and wage, especially, eliminate any legal and manmade barriers that negatively affect business operation. Any effort for attracting manufacturers into Canada is worthwhile, otherwise, fails in market competing would cause no place for living.

From the perspective of attracting manufacturers, due to geographical reasons, Canada's competitors are mainly the United States and Mexico. In order to attract investment, Canada must create advantages in the business environment, such as, the level in the taxes and wages, to be well balanced with that of the United States.

Besides tax and wage, there is concern in business environment, such as, good or poor in supply chain; Mexico is not well in this regard.

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11.9.. Canada need a non-political Super Leadership as assistant

On this global, any social problem is the problem of politics. Since that human society is as that of a train in running on the track. Unexpected social problem is as that of the train derailment, the root cause is the poor track. The track for human society is the policies that legislated by government, and the government is the major means of politics to influence on human society.

All in all, ultimately, the most fundamental cause for the problems that threaten human survival is in absurd social governance, especially the wrongful organizational model for policy formulation. The problem is not in the democracy itself, but, at that any people can free campaign as a policy-maker with no essential prerequisites for the quality of the candidates.

Therefore, the non-partisan politics will be compose of a group of social elite who are with outstanding personal quality based on the outstanding studies and works, the key is that they are recommended, rather than campaigned or self-grouped.

In comparison with those democratic policy-makers who are working in the Stately Parliament, those knowledgeable high quality social elites who are working in the non-profit Societies, Institutes and related organizations actually are being politically marginalized.

This is downright ridiculous and irrational in a huge waste of intelligence in social governance.

The feasible approach for saving the world from the road of being destructed is at those politically marginalized real social elites can proactively manage a way to involve in the national policy making, and to develop current partisan politics as non-partisan politics gradually.

As truly social elites, truly talents, who must be proactively to change dissatisfied reality, rather than passively seeing the absurd partisan politics destroying the world.

In the Era of agricultural economy, the geographic space is the living space. In the Era of market economy, the market space is the living space. The low productivity and high cost in goods manufacturing would make Canadians lose living space due to doomed fail in the market competing.

The success of China’s economy relies on the top leader Mr. Deng Xiaoping who played a role as a political bulldozer to push away social resistance, in order to limit or avoid heavy social impact, government authorized economic zone in limited area without the support in financing, but independent policy making, and then with the convincing achievement to update the policies nationally.

Canada needs to gov-authorize a Super Leadership of a group of non-political social elites as a political bulldozer with the power of independent policy making to deal with on limited urgent social issue in a limited area, in a environment of least social impact to explore a effective governance way out, then, by the convincing achievements to update the policies federally.

Without populist-kidnapping, with the power of independent policy making, the Super Leadership of a group of non-political social elites can successful manage a way out, hardly, but finally can help those manufacturers stay in Canada.

May 11, 2016, I found article France labour reforms: Protests as government pushes through bill in May 11, 2016.  

In France, the labor laws reform is right and necessary, however, for months; the protests against it never stop. This time, after government forced through the labor reform bill, the protests have broken out across France with some protesters injured in clashes with police.

The labor law that every citizen must commonly abide by is basically fair, not to mention it has been implemented a long time in other countries. Any society inevitably has irrational people, as long as there is an excuse, they will be ganged to make mischievous. The one of the important roles of the government is to control these people to endure a peaceful society.

The greatest sadness of modern government is at that it cannot effectively control of the ridiculous behavior of those irrational people who are under the protection and encouragement of the Universal Values. It is same in both of one party ruling or multiparty ruling.

If the French government also practices as that of China's economic reform, to set up a zone with special policies to break the limitation of 35 work hours with more work hours getting more paid, after the success with convincing achievement to promote it across France, it will reduce or even avoid the social unrest.

In viewing that what is happening in France, the government authorizes a group of non-political social elites – Super Leadership as assistant will be an only feasible way.

The disadvantage of current difficult economic situation also has its advantage, which is that, under the pressure, the government would easily accept new idea and help to promote it.

The Majority government of Liberal Party under the leadership of rational Prime Minister Justin Trudeau has forged legislative condition to pave the way for this concern.

Recently, the Finance Department of Canada revealed that in March, the government posted a $9.4-billion deficit compared with a deficit of $3 billion in the same month last year. The shortfall came as revenue fell $5 billion to $24.1 billion. Personal income-tax revenue fell by $1.1 billion or 9.4 per cent and corporate income-tax revenue fell by $2.1 billion or 37.3 per cent.

For the Government of Canada, the greatest difficulty is at reducing the cost in government operation, rather than overdraft in debt or over taxing from hard running businesses that are running at the edges of Bankruptcy.

In the section of Downsizing governments in all level by e-Government in my article Authorize non-partisan Super leadership to assist social governance, I have discussed the potential of government largely downsizing with the nature retirement of baby boomer generation to gradually develop as e-Government.

Partisan politics has been evolved as the harm for human survival, human being should not continue on the way that is clearly in self-destruction.

Canada and this world urgently need a revolution in social governance - toward non-partisan politics. 

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11.10.. Set Economic Zone to avoid the harm of speculative real estate

The purpose for set economic zone, besides flexible policy making in conducive business operation, the more significant role is at restrict the activates that take land and housing as gambling chips to push up the cost in business operation. 

Shenzhen city, the earliest test zone in economic reform that was authorized by the central government of China with independent policy making without financing, where was born and attracted many businesses, some were world class one, Now, they are relocating in large scale to other area in China or other countries.

The relocation of the businesses are certainly going to destroy local economy, the reason was the high operation cost in labor and land, which caused by speculation.

The salary pushed up by high prices in both rental and housing.

The same experience has been also ongoing in Vancouver, Canada.

World widely, in the hot area of the economic development, the real estate has been taking as speculating target by financing economy to destroy real economy.

In Feb. 28, 2016 article Partisan politics is the main cause of economy downturn, I indicate that:

Many countries regard real estate market as a means for develop economy. Though, the real estate market is a part of the real economy, however, it is a wand with opposite magic that either can benefit or harm to the economy. Since that real estate has effect as a hedge against inflation, it has been taking as a kind of tool for speculation to loot real economy.

In Dec. 2010 article Set economic zones to avoid the harm of speculative real estate, I indicate that:

Though, that overheated real estate has made big trouble in Japan as a speculation means to have heavily damaged the development of the real economy, but we should also look at the positive side of it may play a positive role to attract investment for stimulating economic growth. For this end, we may set special zones separately for the development of speculative real estate and real economy. 

We must strictly limit the Area for the Speculative Real Estate (ASRE), such as, for the house prices soaring area in Vancouver may allow it as is in free indulging continuously, while, to reserve enough space as Technology Parks (TP) for the development of the industries and residential for low income working class.

Within the ASRE, we must properly legislate to control its healthy development, such as, we may consider that, in Canada, strictly prohibits the loans for speculation of real estate in the ASRE to avoid financial crisis. It reported that in some area of the United States have similar policy and the deal on the real estate by cash mostly.

Within the TP, we must also properly control the healthy development with legislation of admission requirements for residing into as a measure for preventing the housing speculation. By strictly forbidding the intrusion of the Capital Predators, to create a fairyland for those who are willing to run a business to provide employment and tax revenue and those who are willing to make livings with hard working, thereby, to ensure business owners and their employees can both be affordable for their survival.

Thus, by setting ASRE and TP to ensure the speculative real estate and real economy can health develop side by side, and moreover, by the tax income from the free play of real estate to subsidize related industries to create more job position and more tax revenue.

As return, the working class, with the proceeds of their hard working, able to enjoy the prosperity created by the speculative real estate – the bustling shopping and the entertainments. Also, such consumer spending is the essential support for the sustainable development of speculative real estate.

In the TP, we should consider that Government-led housing construction at cost price renting, thereby lower the cost of businesses operating.

In Japan and Germany, there more people are renters. In Japan, it is personal pay plus subsidies of worked company. In Germany, the rental is comparatively low than other countries.

In my Aug. 24, 2014 article Overheated real estate market is ruining Canadian economy from Japan mirroring Canada, I have discussed those Japanese people who had speculated on real estates, owed a huge debt unable to stand.

A Taiwan TV video - 8 million empty ghost houses and decreased by 1 million population in five years, Japan toward extinction prophecy introduced that, in current Japan, due to the fear of the housing prices going down, people have stopped to buy house.

July 29, 2015, I once wrote article Germany timely regulation of Real Estate Market sets a model for Canada, in which, we can learn that the reason of the rental is comparatively low in Germany.

Only in this way, we can avoid the greatest tragedy of human society that decent people who are hard working for creating material wealth, but cannot live decently.

Technology Park needs the design of the overall plan, such as that sets related regulations, even to be legislated. In this concern, the Super Leadership may play a unique role in regulation making and daily management.

1. To establish the basic development plan.

2. To provide proposals of development policies for legislation.

3. To provide a full range of services for the businesses in TP.

4. To invite companies with promising development potential world widely.  

The Technology Parks can be used as a hotbed for attracting foreign enterprises.

Also, there is necessary to make some further explanation.

1.… Speculators will chase strangling the real economy

The thorniest problem is that, in financial economy overheated today, as usual, when the information of some areas will be developed as industry, the speculators will deluge in as that of the Vultures in the wild African grasslands towards animal carcasses. The construction does not begin yet; the land prices have been pushed in soaring, which is easily to strangle the industry in the invisible entity.

Such as, in 2001, after China agreed to participate in the development of the Gwadar Port in Pakistan, the project did not start yet, the price of the land there has soared up. My son’s university classmate who was from Pakistan said about that. 

2… Vancouver lost foundation for the development of real economy

Since livable climate, Vancouver has become a paradise for real estate speculators; soaring housing prices have pushed up the cost of businesses’ operation and driven the labors out. Vancouver has lost foundation for the development of real economy.

3… The methods of Japan-Gov killed bubble economy 1980

Follow is excerpt of my article Overheated real estate market is ruining Canadian economy from Japan mirroring Canada.

In viewed that real economy was in decline under overheated real estate market, the foundation for survival was in damaging, in March 27, 1990, the Bank of Japan issued Notice of Controlling the Total Financing Amount of Real Estate. The Notice was known as the ignition point of the collapse of Japan’s bubble economy. Then, the house prices and stock prices were both fell down.

Furthermore, in the August 1990; the Bank of Japan increased short-term lending rate to 6%. But, those were not enough; in 1992, Japan has introduced a land value tax to further push down the overheated real estate market.

For the High-end retailing businesses, because, the shop was located in the city’s most prosperous area, every year, the 0.3% land tax even valued 20% of sale-profits. The land tax resulted in a strong inhibition on the prices of the real estate.

The restraining force of the land value tax on the real estate market was significant. Thus, the bubble of Real Estate was quickly deflating down in Japan. The golden age of Japanese was disappearing.

Many studies and reports deemed, it was that, after 1990, a series of improper restricting policies on the real estate market have pushed the Japanese economy into the quagmire. Indeed, that was not true, the true reason was that unearned easy money-making in speculative real estate market undermined the quality of the Japanese, from industrious become lazy.

It has been reported that, in current Japan, the most crowded commuter traffic time is not in the evening of the time of end of work, but at midnight. It was not work needed, but simply for overtime pay, Japanese people works overtime until midnight has become a culture socially.

For this regard, I have also discussed in my Aug. 24, 2014 article, Overheated real estate market is ruining Canadian economy from Japan mirroring Canada.

From such ridiculous new born culture, we can learn the true reason of Japanese economy sustained in decline.

Follow is the translation of the writings of Japan scholar Mr. Kondo Daisuke about the decline of Sony and Sharp Corporation, which was cited in my Aug. 24, 2014 article Overheated real estate market is ruining Canadian economy from Japan mirroring Canada. In which we can see that how low quality of Japanese people to have damaged good businesses.

Feb. 22, 2016, The ridiculous management ruins Sony Corporation.

Feb. 22, 2016, Japanese Disease – Evading Responsibility ruins Sharp Corporation.

A nation with lazy nationals will be doomed to fail.

This is why that series frenzied financial economic-stimulate policies; even negative interest rates cannot save Japanese economy.

The failure of Japan lessons us that the important task for government is that how to ensure national’s quality, especially in immigrant-oriented Canada.

Talking about housing issue, I once seen a report that, now in Japan, it seems to have been developed back to the housing model in previous bubble economy, it is that government-led housing construction and people rent live.

I think that the real estate business running model in Japan and Germany is preferred, especially in the Economic Zone.

In Vancouver, high housing prices and high rents have become the biggest obstacle for business recruitment.

By set Economic Zone or Technology Park and timely policy adjustment to create a favorable environment for business’ operation, thereby, to make Canada as the best investment destination world widely.

Vancouver should be created as global development center in R&D, software and related high tech businesses.

And Southern Ontario should be created as global center for manufacturing in Autos and machineries based on current favorite condition.

I would like to once again emphasize that:

Under our generation, Canada must build into a fairyland of material wealth creators, rather than a paradise of greedy unearned speculators. So that the Canadians who are willingly to make a living by hard working to be able to live a decent life.

A loveable society is from material wealth creation rather than from unearned speculation.

On this aspect, for years, the government of Canada has not played a rational role.

Maybe, only the oncoming Super Leadership can be able to stop those speculators to destroy the life of Canadians.

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11.11.. Gov-funded R & D center, as an incubator of the enterprise

Jan. 23, 2013, in article Gov-funded R&D Center Boosts Taiwan as One of Four Little Dragons, I indicate that:

Taiwan’s Industrial Technology Research Institute (ITRI) is a non-profit R&D institution that Gov-found in 1973 and later self sustained with the branches in Tokyo, Berlin, Moscow, Eindhoven and California Silicon Valley. Currently there are 5,777 members with background of 1,392 PhDs and 3,126 Masters. Now, it holds more than 19,890 patents.

Its practice is new tech R & D and business incubator by spinning off the matured research achievements with related researchers together as independent enterprises, and to have created more than 228 start-ups and spin-offs with over 140 CEOs in the local high-tech industry, among them many are world-renowned high-tech companies, such as TSMC and  UMC.

The Gov-found non-profit model can ensure the R&Ds future oriented by avoiding the pursuit of short-term profits as that of listed companies, and the earnings can be used for new R & D investments rather than to be distributed to the shareholder hands.

The ITRI has been the essential innovative force and think-tank with open Laboratories to provide full serve for small and medium sized enterprises to form industry clusters and drive Taiwan developing as one of The Four Little Dragons.

Now, China and the United States have been both eagerly replicating the model in a large number of.

Super Leadership should also establish similar R & D institutes to provide full service in management and technology with full cover of all businesses and to conduct R & D on cutting-edge projects to continuously spin off more and more competitive enterprises.

Especially, in Vancouver and Ontario.

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11.12.. The enterprise internal patent management system

This is method should be practiced in the economic zone, due to it is important, so that I discuss it with a special section.

Nowadays, that registers new technology as patent to be protected as quickly as possible is an important means of market competition.

So called Enterprise internal patent management system is to copy the model of the national patent system to protect the intellectual creation of the employees, with setting a management system for those initiative ideas that do not reach the qualification for normal patent application yet, to be registered in archive as a record to show that who is the original contributor for the new ideas in the enterprises.

 The enterprise internal patent management should include the detailed provisions of the benefit sharing for the possible profit that may gain from the commercialization of the ideas to ensure those inventors can get their share from extracted bonus after the application of their ideas. The related management staff has to get their award from management spending of Company rather than sharing the bonus form the innovation.

That allows management sharing the bonus from the innovation will totally destroy the enthusiasm of the staff for invention and innovation, which is certainly a way that will fail company.

This idea is inspired from the chatting with a former RIM engineer in Art profession.

After I introduced that Germany extracts bonus from the profit gained by the application of the rationalization proposals to the contributor, and patent-related bonus incentive has been promoting IBM counting on the top of those world-class corporate giants in the United States for 20 consecutive years.

The engineer said that, in former RIM, has also similar incentive policies, but, the large share of such bonus was taken away by the management staff, thus, the ordinary technical staff, the main body for innovation, has lost the basic momentum to provide new ideas.

The engineer said that, in former RIM, has also comprehensive regulations as that of in any company world widely, but, in practical operation, they were taken as flexible game chips to play in according to the management staff personal accords. 

I think that it was one of main reasons that RIM declined, and wrote article The Fatal DNA of RIM & Canadian Enterprises.

Such wrongful approach as that of RIM is common in vast majority of the enterprises world widely.

The enterprise internal patent management system can effectively avoid the harm of such wrongful approach.

May 28, 2012, I once wrote article The DNA of the Success of German Manufacturing to have discussed such issue.

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11.13.. CPP should take over farmland and develop as main body of state-owned economy

With the baby boomer farmers retiring, there will more than 50% farmland transfer ownership in coming years.

 Norway's Government Pension Fund in Oil Makes Every Norwegian a Millionaire lessons us that Canada must avoid the mistake that allows oil wealth to be griped and ripped by so called Free Market, Canada Pension Plan – CPP must take over all available wealth, especially, the farmland to develop in kind base and as key body of state-owned economy to make profit for all Canadians at the juncture of baby boomer farmers retiring. Thereby stop the speculation that is taking farmland as gambling chips by the greedy speculators. Such speculation has been pushing farmland prices up unreasonable high, it will ruin the agro-industry by destroying competitiveness of agro-products and the future of Canadians.

One day the oil will run out, but the farmland will continue to benefit Canadians.

In viewing that Japan’s Pension Fund Loses $52 Billion as Stocks Slump in April-June 2016, CPP must turn investment towards in kind base from gambling luck in stock market, thus, Canada will get huge amount of financial resource for developing real economy rather than just considering budget deficit.

To invest in Risk Controllable and Return Predictable real economy, Canadian Pension Plan will be controllable and predictable in Income Generating and Value Hedging.

In this regard, there is more detailed discussion in my June 3, 2015 article Canada Pension Plan must develop in kind base and as key body of state-owned economy.

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11.14.. The planting and processing of botanicals OTC medicine

The botanicals plant farming and natural OTC medicine processing will be a promising project.

Aug 16, 2015, in article Canada Pension Plan must develop in kind base and as key body of state-owned economy, I proposed a project of botanicals plant and deep process, I excerpt some as follow.

February 2011, the article Global Prices of Traditional Chinese Herbs Rising reports that: in 2010, the price of the herbs used in TCM increased much higher than usual. TCM products sold in 2010 in China—especially in Northern and Eastern Chinese cities, such as Anguo and Shanghai—most of which were medicinal herbs, doubled in price (on average). The prices of certain ingredients and particularly popular herbs have raised considerably higher, some raw herbal materials and finished herbal medicine products have supposedly seen price spikes as steep as 700% over the past year.

The governments and drug makers are turning eyes on Chinese herbal medicine.

David Picard, CEO and the co-founder of Moleac, a biopharmaceutical company based in Singapore, in his article THE RISE of Traditional Chinese Medicine, said that “Western pharmaceutical companies now spend over US$800 million on average to get a new drug approved.” “This cost includes the lengthy and complex clinical development process which sees many potential drugs fall by the wayside, either because they do not work or because they cause unacceptable side effects.”

“Only around one in 17 candidate drugs identified make it to market.” “If the drug being researched fails in the development process the losses can be considerable.” “Pfizer, for example, recently wrote off around US$1 billion and 15 years of research and development after its experimental cholesterol drug failed to make the cut.”

“The industry is under increased pressure to develop new blockbuster drugs as patents expire, and to cut innovation costs.”

David Picard also said that, “Increasingly, companies are looking to TCM as a source of innovation. The economic incentives are clear.” 

November 05, 2003, reported that Pfizer Inc. will soon set up a regional headquarters and clinical trial centre in Shanghai China.  

November 01, 2005, reported that Pfizer Inc. has opened a research and development facility in Shanghai to offer drug development support capabilities and biometric expertise to China and the surrounding Asian region.

November 06, 2006, reported that Swiss Novartis AG announced plans for a US$100 million integrated research and development center in Shanghai. “The company already has a partnership with a local research institute, the Shanghai Institute of Materia Medica, and collaborates with a local drug manufacturer,Wuxi PharmaTech Co.”

In the western countries, governments took strict regulations to control the medicine market. One of them dictates that every constituent and its therapeutic effect must be clear for the compound medicine. This is a big barrier for the Chinese drug since that of even a single herb is a compound too, and the constituents were varied from different produce area and even reaping season. So it is not easy to make clear every constituent and their therapeutic effect exactly.

Due to the above problems, World Health Organization (WHO), European Community (UC), United States (US), Canada and many other countries have issued some Guidance or policies for promoting the use of traditional medicine. They suggested that although the constituents and therapeutic mechanism are not very clear in some traditional medicine, since it has exact therapeutic effect and safe, which has been proven by long time use clinically. These policies allow it to enter medicine market.

FDA accepted the idea of traditional Chinese medicine idea.

It is that Philosophy caused Western medicine into dead end 

In current Canada, Western medicine - WM is the mainstream medicine. 

WM has been taking Reductionism as philosophical guidance, it looks human body as an assembly of parts, and tries to study, diagnose and treatment of the diseases through the isolated part by reducing human body as micro as protein, gene and even peptides. Today we even can make life by genetic technology in a tube. So public have been convinced that modern WM is most advanced, most scientific and most reliable.

However, because human body is a complex system that various organs are closely interconnected with interdependent and interacting, there may be many unpredictable factors in affecting the development of diseases, especially the psychological factors. Many objective facts have proven that the medical route under the guidance of Reductionism is not sustainable feasibly.

Dec. 21 2011, in article Chinese Medicine – A Promising Therapeutic Approach, I once indicate that: “Nine years ago, we once cheered for the completion of Human Genome Project with the happy of getting a new powerful therapeutic approach. Many of us thought that we could uproot all human diseases since then.”

“However, until now, it seems to have no genetic therapies been applied in clinic safely and stably, because there may be dozens even hundreds different gene-fragments in affecting the development of one diseases. Therefore, those believed as most advanced, most scientific, most reliable genetic therapies are only hopeful flowers that may need long time, and more study to bear enjoyable fruits. I believed that, this fruit cannot mature forever, because it cannot uproot the stress or psychological pressure – the main inducement of the diseases.”

“On the other hand, there are no suitable synthetic drugs for some diseases, such as, super bugs. Even those existing drugs are not all safe; the side effects of some of them are becoming new life-threats. More terrible is that the cost of medications is soaring up; even some people take the medical activities as the tools to loot money in contempt of life. It is just like the earthquake in Japan, coupled with the Tsunami, which was not enough, followed by nuclear radiation.”

Non-communicable diseases: Also became increasingly severe due to have no ideal drugs. Such as mental disorder, cancer, hypertension, obesity, diabetes, cardiovascular disease, chronic fatigue syndrome, and so on.

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The philosophy of WM is developing toward that of TCM

June 16 2013, in article Daoism – The Philosophy of Traditional Chinese Medicine, I indicate that TCM has been developing under the guidance of Daoism - an ancient philosophy of China.

Daoism is contrary with Reductionism. It is similar with Holism and consistent with systems biology. Suppose that Reductionism focuses on a specific grass on the Himalayas, and then the Daoism is not only focusing on the entire grass, but also concerning those would affect the growth of grass, such as, destructive pests, the greenhouse effect and the reduction of glacier cover, etc.

Under the guidance of Daoism, human life is being taken as one of such a component of unity of opposites. It believes that human body is an organic whole that all components are closely interacted. A well-balanced human bodies will form an effective self-defence system that can handle the most of pathogenic agents. The diseases could happen only if there are some unbalanced parts in a human body. The treatments do not directly target to kill pathogenic but to bring back the natural balance. It achieves the purpose by natural therapeutic approaches, such as, natural drugs, acupuncture and physical exercises, etc.

The emergence of system biology is showing that Western medicine is starting to step toward the Holistic way with enlarging the scope of medical analysis. Essentially says, it was that Western medicine is from philosophical root turning its heads toward the ancient holistic medical approach of TCM after its hitting on the wall.

Traditional Chinese medicine is a promising therapeutic approach 

Dec. 21 2011, in the article Chinese Medicine on Wound Healing, I discussed Traditional Chinese Medicine, now excerpt some as follow:

Traditional Chinese Medicine (TCM) is an accumulation of the experiences of medical practices in Far East China. Modern researches have unknowingly and indirectly proven that TCM is the best medical system worldwide so far compared with that of existences, especially Western Medicine (WM).

In the thousands of years practice, TCM has developed many natural therapeutic methods in diseases diagnosis and treatment by natural ways, especially a large number choice of natural drugs.

According to the statistic of national investigation of mainland China in the 80's of 20th century, there are 11,146 plants, 1581 animals and 80 minerals as medicinal using. The Dictionary of Traditional Chinese Medicine Prescription selected nearly 100 thousands of experience-based formulas from prescriptions of TCM since there are written records in the history of China, which covering almost all known diseases. Thanks the scientists of China, they have made many useful modern researches on Chinese drugs by emulating the methods of western medicine, and to have had those experience-based formulas updated and produced great many OCT drugs in the forms of convenient for using. Such as, injections and sugar covered tablets with the labels of providing treated-ranges, precautions and dosages.

The medicinal materials (natural drugs) used in TCM are all from nature. Modern studies from the level of molecular, protein and gene found those natural drugs containing a wide range of bioactive constituents. Some of them have therapeutic effect that is similar to that of synthetic ones in killing the pathogenic agents directly, and some of them have nutritional effect that is similar to that of orthomolecular medicine. For ill-debilitated patients, nutrition is even more important than that of drugs. I think that this is the unique advantages of natural drugs, and also it is the unique advantages of TCM.

Modern researches revealed that some of Chinese drugs can improve human immunity, such as, boosting the weight gains of immune organs, increasing the number and activity of the phagocytes, NK cells and so on. Therefore, in subjective viewing, TCM is to regulate the physical balance, but in objective practicing, the process of the regulations plays a role of improving the immune function, then the pathogenic agents to be killed by enhanced immune system. Although, in TCM there are no concepts of modern immunology, such as, immune organs or immune cells, the experience-based formulas were never to have considered on immunity, however, some of preparations by those formulas are playing the therapeutic role through enhancing human immunity. More significant is that when the physical balance of patient is restored, the most of uncomfortable symptoms of patient would be largely improved, such as, poor appetite, angst and insomnia, patient would feel much better not only in physical but also in psychological. Indeed, the physical improvement also plays the role of psychotherapy. The recovery of the diseases can certainly be accelerated.

The compound prescription is unique therapeutic method of TCM, which is to put many different natural drugs together as one dose. Studies have proved that drugs in compound using are able to generate synergy effect of multiplying the positive effect of each other. The findings revealed the mystery that preparations by experience-based formulas of TCM are more effective on some specific diseases and provided clear guidance for selecting effective natural drugs aiming on specific pathogenic. This is the reason that, in my hand, Chinese natural drugs seem to have gained magic in treating some thorny diseases, such as, Schizophrenia, fat liquefaction of incision and so on. Chinese drugs will be a powerful therapeutic approach on the diseases both communicable and non-communicable, which not satisfied by the treatment of synthetic drugs. Clearly, Chinese medicine is promising resource in developing new therapeutic approaches both drugs and therapies. Also it has huge market potential.

More pleasing is that in China, those experience-based formulas have updated and used to produce great many OCT drugs with modern technologies in the form of easy to use, such as, injections and sugar-covered tablets, and labeled with the instructions of the sort of treated-diseases, precautions and dosage. They are available in Chinese pharmacies worldwide.

There are researches indirectly proven TCM safe and easier market accesses

I found two research reports that nutrients in our daily foods showed anti-cancer effect: Plant Nutrient 'Cocktail' Kills Breast Cancer Cells and Vc 100 mg/kg & Ve 400 mg/kg shows inhibiting on tumors, which provided strong support for Chinese Medicine, since that Chinese Medicine is in rich such ingredients and is the base for taking therapeutic effect.

The report indicated that Researchers tested six known protective chemical nutrients from turmeric, soybeans, broccoli, grapes and tea. Individually, they were ineffective against cancer. But combined, they suppressed breast cancer cell growth in the lab by more than 80 percent, and eventually triggered the process leading to cell death.

The researcher Dr. Madhwa Raj points out that all the ingredients in the cocktail come from foods people eat every day, but at much higher levels than they could possibly get from their diet. He has established a bio-tech start-up company to bring the super-cocktail to market as a nutritional supplement for breast health, which does not require approval from the Food and Drug Administration - FDA.

The report provides us two facts:

1. A Modern scientific proof for the correctness of Ancient unscientific compound formula of TCM. We may say that Modern Western civilization proved the wisdom of Ancient Eastern civilization.

2. The nutritional supplement does not require approval from the FDA - the world's No.1 authority in medical regulation. It means that for the natural medicinal beverages that we are going to be developed will be no market barrier legally. 

Also, in my wordpress Blog folder medicine, there are many articles that introduce modern biochemical, pharmaceutical and clinical research results about Chinese Medicine.

Natural OTC drugs and Medic-Functional Beverage are all in line with the global trend that is of the new health conscious of the people with new understanding for health and paying more attention on the health-keeping with diseases-preventing in advance.

The inadequate healthcare resources and deadly side effect of Western Medicine are pushing people to seek medical alternatives with producing new demands with shaping new market. 

From above, we may clearly understand that health functional products based on the materials of natural botanicals under the guidance of the theory of TCM will be welcomed and profitable in broader market.

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       Follow is the excerpt from my Nov. 18, 2018 article Why human beings as higher animal live in the way as lower animal.  
                            
     Since evolved as higher animals, human beings never stop the exploration for the better way in own social governance , but never achieved the way as higher animals should have
     The reason for this sadness is that social governance has been kidnapped by confused ideology that advocated by the brain defective people who cannot reason about the harmful consequences when dealing with some problems, so that they bold-recklessly do anything according to own favored accord. Due to the psychological effect of the Crowd Psychology, though the most people can reason rationally with a sober mind that the behaviors of those mental defects are wrong, but they shut up in blindly following.
     Now, please look at the two famous scientists in Genetic and Neuro-science view about the social governance from the level of human brain and intelligence backed on genetic nature.
     They are the Dr. Francis Crick (1916 – 2004) and Dr. James Watson (1928 - Present ). 
     In 1953, they co-authored academic paper proposing the double helix structure of the DNA molecule, which was in exploring human life from genetic level earlier. In 1962, they jointly awarded the Nobel Prize in Physiology or Medicine, and the Dr. James Watson is called as the father of DNA.
     No doubt, on this increasingly chaotic world, they are few men who can well understand on the nature of human life from genetic level and therefore they well understand on the reason that why some people are reckless without sense of care about harming others. Follow is their photos and their rational comments. 

               Image result for James Watson, IQ, genetic factors
       Left: Dr. Francis Crick (1916 – 2004) was a British molecular biologist, biophysicist, and neuroscientist. Photo source: https://dunuby.com/top-25-neuroscience-quotes-of-56-a-z-quotes.html  
      Right:  Dr. James Watson ( 1928 - Present ) is an American molecular biologist, geneticist and zoologist. In 1962 won Nobel Prize in Physiology or Medicine. The bold characters are originally there, small characters are added by me. Photo source: https://mic.com/articles/122185/stem-black-women#.jLGizaDDf  

    Jan. 15, 2019, the article The father of DNA says he still believes in a link between race, intelligence. His lab just stripped him of his titles shocked me to think of American philosopher, critic of religion Dr. Sam Harris who once wrote book The End of Faith: Religion, Terror, and the Future of Reason that concerns organized religion, the clash between religious faith and rational thought (2004), the book won the PEN/Martha Albrand Award for First Nonfiction and remained on The New York Times Best Seller list for 33 weeks. 
     The positive social reaction on the book turn out a evidence that there many great rational people are paying attention to religious issues. However, this world is kidnapped by brain defects , the frank talks about religion will inevitably encounter severe condemn, follow is the confusion of Dr. Sam Harris about this.       
            
                           Image result for As an atheist, I am angry that we live in a society in which

                  Photo source:  https://www.azquotes.com/quote/125118

                                                             ---  Frank  Jan. 17, 19, 2019, in Waterloo, Canada

                                                                

 


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