Monday, March 30, 2009
Wednesday, March 25, 2009
Cutting CBC funding
I just read the following article: www.cbc.ca/arts/media/story/2009/03/25/cbc-layoffs.html. In a few sentences: "the Canadian Broadcasting Corp. plans to cut up to 800 jobs as part of its strategy to make up for a $171 million shortfall in 2009-10 ... The cuts became necessary after the federal government turned down CBC's request for bridge financing that could have helped the public broadcaster weather the economic recession...".
I don't think it matters whether you love the CBC or hate them, these cuts simply don't make sense given the current economy. The government has stated that under the current economic conditions their goal is to help the economy. It would seem to me that having 800 people lose their jobs is not fulfiling the government's stated goal. Furthermore, is it not easier to keep 800 people employed rather than create 800 jobs?
Compared to the automotive industry job losses, supporting the CBC is a far better economic investment. Looking at this article www.cbc.ca/money/story/2009/02/20/carbailouts.html, we find that the government will potentially provide billions of dollars while the car companies will cut thousands of jobs. Let's take a closer look at GM. It costs the CBC 171,000,000 / 800 = 213,750 per person to maintain a job. Assuming similar costs for a car worker it would cost the government about 1 billion to save 5,000 autoworkers, yet GM is potentially asking for 6-7 billion and cutting these 5,000 positions. Again assuming similar costs as CBC, with 6-7 billion GM could maintain 30,000 to 35,000 jobs (at least for a few years). GMs current workforce is about 12,500 people.
Ultimately, these aren't numbers but people. Neither Canadian deserves to be laid off.
I don't think it matters whether you love the CBC or hate them, these cuts simply don't make sense given the current economy. The government has stated that under the current economic conditions their goal is to help the economy. It would seem to me that having 800 people lose their jobs is not fulfiling the government's stated goal. Furthermore, is it not easier to keep 800 people employed rather than create 800 jobs?
Compared to the automotive industry job losses, supporting the CBC is a far better economic investment. Looking at this article www.cbc.ca/money/story/2009/02/20/carbailouts.html, we find that the government will potentially provide billions of dollars while the car companies will cut thousands of jobs. Let's take a closer look at GM. It costs the CBC 171,000,000 / 800 = 213,750 per person to maintain a job. Assuming similar costs for a car worker it would cost the government about 1 billion to save 5,000 autoworkers, yet GM is potentially asking for 6-7 billion and cutting these 5,000 positions. Again assuming similar costs as CBC, with 6-7 billion GM could maintain 30,000 to 35,000 jobs (at least for a few years). GMs current workforce is about 12,500 people.
Ultimately, these aren't numbers but people. Neither Canadian deserves to be laid off.
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