Marxian Alienation and Commodity Fetishism in Social Media

Brandon Ching, PhD

Technology leader and badminton enthusiast

February 10, 2015

When one thinks of the political economy of Marx, social media is probably not high on the scale of relevancy. Indeed, what likely comes to mind is a sepia-toned depiction of laborers slaving away their lives under a ruthless capitalist in a gritty turn of the century factory. While this image is indeed how Marx would likely have you conceptualize some of his ideas, I would like to humbly suggest that a more modern picture of Marxian political economy could be drawn; and in a very unlikely place.

Social Media; the Siren’s Call?

The past decade has seen incredible increases in the use of social media. Facebook alone has gone from nearly one million users at the end of 2004 to over 500 million today (Facebook, 2011). Twitter and LinkedIn both have over 100 million members and Google’s latest venture into social media (with limited invitations) has already hit the 10 million-user mark and is expected to rapidly hit 20 million in a matter of days (Greene, 2011; HuffingtonPost, 2010; LinkedIn, 2011b).

Such rapid growth and adoption of new online services is not surprising in this media-driven and connected age. What is surprising, however, is how much time is spent not only online, but on social media applications specifically. According to Nielsen research, in 2010 Americans spend almost a quarter (22.7%) of their online time on social media and blogs. This is up 43% from a year before. Social media activity comprises the largest amount of time out of the ten categories measured in the study. Indeed, 40% of the average American’s time online is spent between three activities: social networking, game playing, and emailing (Nielsen, 2010).

Compounding this social media craze is the parallel craze for smartphones; application driven and web-enabled mobile phone devices. These devices have found a home with 31% of all mobile phone consumers in the United States (Kellogg, 2011). Recent surveys have found that in 2011, the average U.S. mobile phone user spent 74 minutes on the web and 81 minutes on mobile applications. This represents a 91% increase over 2010 numbers for mobile application use (Newark-French, 2011). Large portions of these new mobile applications are social media driven and are poised to be the next go-to technology (Falls, 2010).

Social Media, an Addiction?

With the increasing amount of time people spend on social media applications and the ever-increasing accessibility through mobile devices, one might guess that much of the population is addicted to social media. Recent data shows that this idea might not be far from the truth.

According to a 2010 Retrevo survey, people’s interactions with social media applications does indeed border on addiction. Retrevo found that nearly 50% of respondents under age 25 checked their social media accounts after they go to bed or soon after waking up. A full 56% of social media users check their accounts at least once a day while over 40% said that they didn’t mind being interrupted to check a status update.

Rigorous academic study of social media addiction seems to have been largely unexplored. However, social media addiction appears to fall within the category of general Internet addiction, which is characterized as an impulse control disorder. This disorder is more likely in ages under 35 and is a gradual onset (Shaw & Black, 2008). Symptoms can include excessive time spent using the technology to the detriment of other responsibilities and can lead to dependence, obsessive thoughts, and withdrawals. Yet despite these characteristics there is still debate as to whether Internet addiction is even a true pathological condition (Davis, 2001; Song, Larose, Eastin, & Lin, 2004).

Despite this, it is certain that more and more people are using social media applications for increasingly significant portions of their day. While it may be a stretch to claim a pathological addiction to social media, the next question to ask is, are we slaves to social media?

Do we have a Choice?

Technological revolutions may not necessarily be scientific ones but much like a Kuhnian paradigm shift, once a new technology takes hold, it can be very difficult to get by without adoption. Like vinyl records gave way to tapes; that gave way to CD’s; that are currently giving way to pure digital music files (mp3’s and the like); old technologies, no matter how loved by their connoisseur’s, eventually must pass on and new technologies must be adopted.

So it is with the Internet and social media. Certain age groups not withstanding, if someone were to tell you that they do not have an email account (or even worse, do not know how to use email), you would likely wonder how it is that they can even operate in the world today. Indeed, social media appears to be at that border of optional and necessary where a lack of adoption could hinder one’s ability to successfully operate in the modern world.

Social media sites like Linkedin.com (120+ million members [LinkedIn, 2011a]), a professional social network, are fast becoming avenues of job promotion, recommendation, searching, and headhunting. Meetup.com, consisting of regional and special interest groups, is being used more and more to organize real world events. Then of course there is Google+, Facebook and Twitter, quickly becoming the de facto method of communicating and keeping up to date with family, friends and acquaintances. Even the highest levels of government are using Internet and social media applications to conduct citizen outreach (Twitter, 2011).

With so many avenues of connection, is it even practical to not be at least somewhat connected to this virtual social web? Will there come a time when people wanting to connect with each other will have little choice but to use applications like Facebook? E-mail, once the “new” technology standard, is beginning to show its age with a significant decline in use by younger generations (Lorenz, 2007). Many websites are now beginning to use shared authentication sources like Facebook to register and control access to their sites (Facebook, b; Melanson, 2010). This means that if you want to participate on some websites, you must have a Facebook account.

Marxian Happiness, Alienation, and Commodity Fetishism

To understand how social media can be viewed through the eyes of Marxist ideology, we have to detail Marx’s ideas of species being, alienation, and commodity fetishism.

Marx, like many philosophers, had thoughts on the nature of humanity; what life meant to humans and how to achieve the things that we want. According to Marx, humans sought a type of self-actualization, a self-fulfillment of social and individual consciousness and awareness that he termed species being (C, 1988; Marx, 1975). Though, unlike other theorists contemplating the goals of humanity, Marx’s basis for determining the actualization of our species being was tied to the outputs of our work and production. More specifically, our happiness is tied to the fulfilling work and production of goods and services that meet our individual and social needs and that the producers of those goods and services are also the consumers of those creations (Marx, 1975).

Yet according to Marx, in a capitalist system, the modes of production (also considered to be the basis of other social systems and social dynamics) are controlled by a limited number of bourgeoisie or upper class. These bourgeoisie benefit from the surplus labor exerted by the lower proletariat class in what Marx sees as an exploitive and domineering relationship designed specifically to force the proletariat class into subjugation (C, 1988).

The central conflict in Marx’s critique of capitalism is that the proletariat masses cannot be self-actualized if they are not in control of the modes of production and subsequently the resulting products of their labor power:

This fact simply means that the object that labor produces, its product, stands opposed to it as something alien, as a power independent of the producer. The product of labor is labor embodied and made material in an object, it is the objectification of labor. The realization of labor is its objectification. In the sphere of political economy, this realization of labor appears as a loss of reality for the worker, objectification as loss of and bondage to the object, and appropriation as estrangement, as alienation.

So much does the realization of labor appear as loss of reality that the worker loses his reality to the point of dying of starvation. So much does objectification appear as loss of the object that the worker is robbed of the objects he needs most not only for life but also for work. Work itself becomes an object which he can only obtain through an enormous effort and with spasmodic interruptions. So much does the appropriation of the object appear as estrangement that the more objects the worker produces the fewer can he possess and the more he falls under the domination of his product, of capital (Marx, 1975, p. 2).

Here, Marx lays the foundation for what he subsequently identifies as alienation; the idea that because the expended labor power of the worker goes into a product/s that the worker is not the owner of (and increasingly cannot afford with subsistence wages), that they are abstracted from that product and hence from the actualization of the species being:

The more the worker appropriates the external world, sensuous nature, through his labor, the more he deprives himself of the means of life in two respects: firstly, the sensuous external world becomes less and less an object belonging to his labor, a means of life of his labor; and, secondly, it becomes less and less a means of life in the immediate sense, a means for the physical subsistence of the worker.

In these two respects, then, the worker becomes a slave of his object; firstly, in that he receives an object of labor, i.e., he receives work, and, secondly, in that he receives means of subsistence. Firstly, then, so that he can exist as a worker, and secondly as a physical subject. The culmination of this slavery is that it is only as a worker that he can maintain himself as a physical subject and only as a physical subject that he is a worker (Marx, 1975, p. 3).

Second to the idea of alienation is that of commodity fetishism. Commodity fetishism, something Marx attributes to a larger distortion called false consciousness, is where people attribute social relations or phenomena as being properties of and between objects or products (C, 1988). These social relationships are fundamental to commodity-producing systems, “it is the social relations of production which govern the way in which material objects enter the economic process” (C, 1988, p. 43).

Thus, because social relations are continually expressed through these objects (commodities), they are arbitrarily given value by people (independent of the labor used to create it) and can impart a sort of control over the relationships of the people trading them (C, 1988; Marx, 2010). Obvious examples of commodity fetishism are things like cars and jewelry; items that some feel impart a sort of prestige or enviable feeling in others. Indeed, many people could be said to be dominated by their commodities (Klayman, 2011; Tran, 2010).

Tying in Social Media

So what does Marxist ideology have to do with social media? My thought is that social media is the new capitalist industrial political economy of the information age. The new proletariat class is the mass of people actively participating in social networks. The new labor power is the time and intellectual content provided by those people. The new capitalists are the owners and marketers of the social networks that profit off the labor power of the masses.

In tying Marxist ideology to social media, there are a number of things to clarify, as the comparison is not a perfect one. Perhaps the most questionable caveat is the ownership of the modes of production. In the social media model, it can be said that the proletariat themselves own the modes of productions since they typically own the computer or devices that they are using to channel their intellectual labor through. Additionally, almost all popular social media networks today allow users to retain the copyright of the content that they post (Facebook, a; MySpace, n.d.; Twitter, n.d.). Thus, it would seem that making the argument that users are alienated from the results of their intellectual labor power is a moot point.

Social Media and the Modes of Production

Let us examine these ideas a little deeper before entirely passing them off. While is it true that the proletariat in the social media model do own the primary mode of production, there are in fact more layers of production in this model than in Marx’s traditional industrial model.

As Figure 3 outlines, there are three dominant layers of production in the new social media model vs. the single mode of production in Marx’s industrial model. Despite the fact that the proletariat may own a single layer, all must be utilized in order to participate in the social media model. Given that capitalists still own two of the three layers of the production modes, we cannot say that the proletariat owns the modes of production.

Social Media and Ownership of Outputs

The next point to cover is the idea that because the proletariat retains all rights to the intellectual content they submit, that it means they own the product or result of their labor. From a purely legal perspective, this is true; the rights to all content submitted to most social media sites remain with the author/submitter. However, central to Marx’s point was that the alienation caused by the lack of control over the modes of production and the output of the worker’s labor power was an affront to the actualization of the worker’s species being; their happiness.

I humbly suggest that in the social media model, owning the output or product of intellectual labor power has little if anything to do with Marx’s species being. Instead, I feel that it is the social connections created, broken, strengthened, or weakened that feed directly to the worker’s species being. Since the output of the intellectual labor power in this case is not a tangible good, the only “finished product” that the worker can place value in and not be alienated from is the actual social connection that their output generates; not the actual output itself. This allows for a supra or meta level of social connection above that of the social connections embodied in physical outputs outlined by Marx.

So then why bother applying Marx’s alienation to the social media model at all? Well, as it turns out, as with all digital “products,” they can be replicated, stored or distributed with virtually little additional labor or cost. In a sense, the output of intellectual labor in the social media model (indeed, in the digital model as a whole) is that the end product is nearly infinitely reproducible. This means that there is no longer a single object that the worker can own that will constitute self-actualization in Marx’s terms.

What this means is that now the “output” of intellectual labor power can be used in a multitude of ways by many different entities. Indeed, the majority of popular social networking applications are free for public use. This seemingly contrarian model of business logic has some fascinating underpinnings (Anderson, 2009; Shuen, 2008). Yet perhaps the simplest explanation of this was expressed by blue_beetle, a user from the website MetaFilter.com when s/he said, “if you are not paying for it, you’re not the customer; you’re the product being sold” (blue_beetle, 2010); and herein lies the problem.

Social Media and Alienation

Social media sites fit what is called the Web 2.0 model, a term coined by Tim O’Reilly to describe a generation of websites that shifted from an information production and distribution model to a user-generated one (O'Reilly, 2005; Shuen, 2008). This model capitalizes on the use of user-generated information to drive site popularity and in turn, profits. All major social sites from Facebook to Titter to MeetUp to Google applications use this model. What most of these sites won’t openly tell you is that the primary method for generating profits from user’s free intellectual labor power is that they continually track your usage statistics for the purposes of cutting edge marketing (Anderson, 2009; Shuen, 2008). In other words, these sites track what you type, who your “friends” are, where you go (GPS in mobile devices and “check-ins”), what you buy, and what you are thinking about (through status updates) in order to more effectively market products and services to you.

In effect, these sites are using your own outputs against you (and anyone connected to you in their systems) in order to subjugate you into seeing what they want you to see and to buy what they want you to buy (Pariser, 2011). This is in effect the ultimate mode of exploitation and domination; using the proletariat’s own free intellectual labor power to voluntarily subject themselves to intimately effective marketing strategies designed to treat them as a product instead of the worker creating the product!

Thus, we loop back around and are faced squarely with Marx’s problem of alienation. Given that the proletariat’s “ghost” ownership of the outputs of the social media model contribute directly to their own subjugation, from Marx’s perspective, the workers are still alienated from the true outputs of their intellectual labor. While I did outline above that I believe one of the meta outputs of intellectual labor in the social media system does indeed speak directly to the social connections necessary to an actualized species being, the fact that the workers do not completely own all outputs (and uses there of) of their intellectual labor still leaves them being alienated, if even at an unrealized level, from their outputs.

Social Media and Commodity Fetishism

Finally, we are left with commodity fetishism, the attribution of certain qualities (oftentimes human or social) into commodities as a result of our alienation with the end results of our labor. From the social media model perspective, it’s fairly easy to see an almost unhealthy fetishistic relationship between the proletariat social media users and the multiple “product outputs” of social media.

With the statistics outlined in the introduction of this paper, it is easy to see the level of fascination certain segments of society have with social media. Social media communications have taken the place of a number of once strictly human-to-human interactions and brought them online. While we might think that this level of abstraction would lessen the emotional impact of social-media based communications (and much of it has [Turkle, 2011]), reality has proven otherwise.

From teens committing suicide from cyberbullying (CSBNews, 2010; Oliver, 2010) to couples ending real relationships over Facebook status updates ("Teaching Kids How to Break Up Nicely," 2011), social media has a very real impact on us and we often appear to attach very real attributes to the “product outcomes” of others. As I stated above, this can be explained by the real meta-level social connections created by our “outputs” through social media. Indeed, these kinds of attributions are expected, for the outputs owned by the proletariat in the social media model are intimately emotional by nature.

Though, what of the other outputs? The outputs used by social media sites themselves to exploit the worker’s intellectual labor. Here too, we can see an exploitive relationship through the use of highly visible measures like popularity indexes and featured users/posts/news (when generated from proletariat intellectual labor). Now, voting and popularity measures are fundamental to many useful functions of online and social spaces. There already exists an explosion of information available online and the very real problem of information overload is a difficult one to solve (Pariser, 2011).

However, voting systems are also fundamental to furthering commodity fetishism in social media. They create a drive for popularity that in turn promotes further input of free intellectual labor power in order to compete. We can see this with friend count’s on Facebook (Marrin, 2010) and followers on Twitter (Smart, 2010. Additionally, because it promotes the proletariat user base to attribute false notions of meaning to these numbers, the bourgeoisie have again fooled the proletariat into willfully contributing to their own commodification.

Conclusion

As I have attempted to show, Marxist ideologies can indeed be attributed to the very modern trend of social media applications. While the picture that I have painted may appear mildly critical, even conspiratorial, I ensure you that I hold no ill regard towards the social media model. One would be foolish to criticize and downplay the overwhelmingly positive impact that social media technologies have played, especially for business and for emerging democracies across the globe.

However, it is always important for societies to be critical of new “advances” in technological and social progress. Just because something is overwhelmingly positive, doesn’t mean that its ill effects should be ignored entirely. In this case, I have attempted to show that the Marxist ideologies of exploitation and domination are alive and well, if not well concealed, under the guise of new technology. While the names and players may have changed, the game itself has not.

References

Anderson, C. (2009). Free: The future of a radical price. New York: Hyperion.

blue_beetle. (2010). Metafilter [Web page]. Retrieved from http://www.metafilter.com/95152/Userdriven-discontent#3256046

BoostTwitterFollowers. (2011). Boost twitter followers. [Web page] Retrieved from http://www.boosttwitterfollowers.com/

C, H. M. (1988). Political economy of marx. [S.l.]: New York Univ Press.

CSBNews. (2010). Cyberbullying continued after teen's death. CBS news [Web page]. Retrieved from http://www.cbsnews.com/stories/2010/03/29/earlyshow/main6343077.shtml

Davis, R. A. (2001). A cognitive-behavioral model of pathological internet use. Computers in Human Behavior, 17(2), 187 - 195. doi:10.1016/S0747-5632(00)00041-8

Eisner, A. (2010). Is social media a new addiction? Retrevo [Web page]. Retrieved from http://www.retrevo.com/content/blog/2010/03/social-media-new-addiction%3F

Facebook. (a). Intellectual property. Facebook [Web page]. Retrieved from http://www.facebook.com/help/intellectual_property

Facebook. (b). Login with facebook. Facebook [Web page]. Retrieved from http://www.facebook.com/help/?page=730

Facebook. (2011). Press room. Retrieved from http://www.facebook.com/press/info.php?statistics

Falls, J. (2010). What's next in social media is now and mobile. [Web page] Retrieved from http://www.socialmediaexplorer.com/social-media-marketing/whats-next-in-social-media-is-now-and-mobile/

Greene, B. (2011). Google plus fuss proves they finally got social networking right. [Web page]

HuffingtonPost. (2010). Twitter user sttistics REVEALED. [Web page] Retrieved from http://www.huffingtonpost.com/2010/04/14/twitter-user-statistics-r_n_537992.html

Kellogg, D. (2011). Among mobile phone users, hispanics, asians are most likely smartphone owners in the U.S. [Web page] Retrieved from http://blog.nielsen.com/nielsenwire/consumer/among-mobile-phone-users-hispanics-asians-are-most-likely-smartphone-owners-in-the-u-s/

Klayman, B. (2011). For men easier to care for cars than their health. Reuters [Web page]. Retrieved from http://www.reuters.com/article/2011/06/13/us-men-cars-idUSTRE75C5EU20110613

LinkedIn. (2011a). About us. [Web page] Retrieved from http://press.linkedin.com/about

LinkedIn. (2011b). Linkedin corporation prices initial public offering. Linkedin [Web page]. Retrieved from http://press.linkedin.com/562/linkedin-corporation-prices-initial-public-offering

Lorenz, C. (2007). The death of e-mail. Slate [Web page]. Retrieved from http://www.slate.com/id/2177969/

Marrin, M. (2010). Facebook, a competition for the most imaginary friends. The times online [Web page]. Retrieved from http://www.timesonline.co.uk/tol/comment/columnists/minette_marrin/article7017824.ece

Marx, K. (1975). Economic and philosophical manuscripts of 1844. Early Writings, 3. Retrieved from Economic and philosophical manuscripts of 1844

Marx, K. (2010). Capital : A critique of political economy. United States: Madison Park.

Melanson, M. (2010). Facebook wants to be your one true login. Readwriteweb [Web page]. Retrieved from http://www.readwriteweb.com/archives/facebook_wants_to_be_your_one_true_login.php

MySpace. (n.d.). Myspace.Com terms of use agreement. Mysapce [Web page]. Retrieved from http://www.myspace.com/Help/Terms

Newark-French, C. (2011). Mobile apps put the web in their rear-view mirror. [Web page] Retrieved from http://blog.flurry.com/bid/63907/Mobile-Apps-Put-the-Web-in-Their-Rear-view-Mirror

Nielsen. (2010). What americans do online: Social media and games. Nielsen wire [Web page]. Retrieved from http://blog.nielsen.com/nielsenwire/online_mobile/what-americans-do-online-social-media-and-games-dominate-activity/

Oliver, K. (2010). Phoebe prince "suicide by bullying": Teen's death angers town asking why bullies roam the halls. CBS news [Web page]. Retrieved from http://www.cbsnews.com/8301-504083_162-6173960-504083.html

O'Reilly, T. (2005). What is web 2.0: Design patterns and business models for the next generation of software. Retrieved from http://oreilly.com/web2/archive/what-is-web-20.html

Pariser, E. (2011). The filter bubble : What the internet is hiding from you. New York: Penguin Press.

Shaw, M., & Black, D. W. (2008). Internet addiction. Internet Addiction., 353.

Shuen, A. (2008). Web 2.0 strategy guide : Business thinking and strategies behind successful web 2.0 implementations. Sebastopol: O'Reilly.

Smart, J. (2010). Individuals take advantage of buying twitter followers craze. PRLOG [Web page]. Retrieved from http://www.prlog.org/11149119-individuals-take-advantage-of-buying-twitter-followers-craze.html

Song, I., Larose, R., Eastin, M. S., & Lin, C. A. (2004). Internet gratifications and internet addiction: On the uses and abuses of new media. Cyberpsychology & Behavior, 7(4), 384-394.

Teaching Kids How to Break Up Nicely. (2011, August 8). The New York Times,

Tran, M. (2010). Girl starved to death while parents raised virtual child in online game. The guardian [Web page]. Retrieved from http://www.guardian.co.uk/world/2010/mar/05/korean-girl-starved-online-game

Turkle, S. (2011). Alone together ; sociable robots, digitized friends, and the reinvention of intimacy and solitude. [S.l.]: Basic Books.

Twitter. (n.d.). Terms of service. Twitter [Web page]. Retrieved from http://twitter.com/tos

Twitter. (2011). Twitter townhall. [Web page] Retrieved from http://askobama.twitter.com/

GRAPHIC SofiaYoushi

COMMODITY FETISH

Canada Goose eyes price hikes as budgets tighten at home but business booms in China

"With luxury products, ... you're creating desire."

The Canadian Press
Thu, February 1, 2024 



Canada Goose Holdings Inc. said further price increases are on the table even as buyers rethink their spending choices amid higher inflation and interest rates over the past two years.

Those financial pressures make for what chairman and CEO Dani Reiss called a "challenging consumer environment" globally. But the luxury apparel company still sees room for larger price tags on parkas that can already top $2,000.

“We actually think there’s quite a lot of headroom, whether it's introducing new categories, new styles within a category, at much higher price points," said Carrie Baker, president of brand and commercial at Canada Goose.

"With luxury products, ... you're creating desire."

Baker also stressed that the company aims for a wide range of pricing to suit different income brackets. She made the point after Baird analyst Jonathan Komp noted that some parkas "have moved well beyond the levels they were priced at four or five years ago."

The company's third quarter furnished evidence of ongoing demand, particularly across the Pacific Ocean. It enjoyed skyrocketing sales in Asia after China lifted pandemic restrictions, even as revenue fell sharply in North America and Europe.

In-store purchases in Macao and Hong Kong led the way, spurred by tourism from mainland China — where store traffic also doubled. Sales in Asia jumped 62 per cent year-over-year in the quarter ended Dec. 31, fuelled by purchases of the Expedition parka, which sells for $1,725 in Canada.

"Strength in (Asia-Pacific) reflects both the colder weather in greater China in Q3 as well as (the end of) store closures last year relating to COVID-19 restrictions," Reiss told analysts on a conference call Thursday.

The Pacific surge fuelled a total year-over-year revenue boost of six per cent last quarter.

Closer to home, however, the Toronto-based company saw sales drop off. Warmer weather through the fall and early winter alongside weaker consumer demand drove revenues down nearly 14 per cent in Canada and the U.S.

"Where we saw the pressure was just consumers feeling that pinch — a little less loose with their wallets," Baker said.

"Weather didn't help," she said. "Winter just didn't come for them. And so they didn't have that same sort of spur to get their typical winter jackets."

Many who did shell out on winter gear opted for less pricey apparel from other brands, she added.

For those who stuck with Canada Goose, the women's Shelburne parka and men's MacMillan parka — $1,500 and $1,225, respectively — were top sellers in the U.S. and Europe.

In Europe, the Middle East and Africa — comprising the smallest slice of Canada Goose earnings — revenue fell 26 per cent.

The "mixed consumer environment" prompted the company to scale back the top end of its earnings predictions, said chief financial officer Jonathan Sinclair.

For its 2024 financial year, Canada Goose forecast revenues of $1.28 billion to $1.31 billion, compared with its earlier guidance of between $1.2 billion and $1.4 billion. The previous fiscal year drew revenues of $1.22 billion.

It said adjusted net income per diluted share would likely land between 82 cents and 92 cents compared with earlier expectations of between 60 cents and $1.40 and a full-year result of $1.05 in the last fiscal year.

The outfit remains upbeat.

"The traction we saw in Asia Pacific in Q3 was very promising," Sinclair said.

"In January, North America and Europe started to turn a corner, with (direct-to-consumer) performance moving back into positive growth territory once again, coinciding with the onset of colder weather in each region."

While the company is opening three new permanent stores this quarter — boosting its total to 68 — it plans to put the brakes on its major brick-and-mortar expansion.

"We have opened a lot of stores in the last few years that have been in challenging environments. And so we haven't seen the productivity that we know that they are capable of. That really is our near-term focus," Baker said.

The company also expects wholesale revenue to decline substantially this year — after falling 29 per cent year-over-year last quarter — as retailers scale back their orders.

The company projected total revenue of between $310 million and $330 million for its fourth quarter and an adjusted profit between two cents and 13 cents per diluted share.

In its third quarter, net income attributable to shareholders fell three per cent to $130.6 million from $134.9 million a year earlier.

Revenue for the quarter ended Dec. 31 totalled $609.9 million, up from $576.7 million in the same period a year earlier.

On an adjusted basis, Canada Goose said it earned $1.37 per diluted share in its latest quarter, up from an adjusted profit of $1.27 per diluted share a year earlier and roughly in line with analyst expectations, according to financial markets data firm Refinitiv.

This report by The Canadian Press was first published Feb. 1, 2024.

Companies in this story: (TSX:GOOS)

Christopher Reynolds, The Canadian Press

‘Blaming immigrants for bad policies’: Canada’s international student cap met with criticism, frustration

Canadians are criticizing PM Trudeau's government for scapegoating new immigrants for an 'inequitable' system leading to a housing crisis

Joy Joshi

·Writer, Yahoo News Canada

January 24, 2024·

Canadians are stepping up for international students after the federal government announced new measures limiting the intake over the next two years along with restrictions on work permits for incoming students and their spouses.

Immigration, Refugees and Citizenship Minister Marc Miller announced Monday the Trudeau government will slash the number of undergraduate study permits to be issued in 2024 by 35% in comparison to 2023, resulting in approximately 360,000 visa approvals only.

The development comes in the wake of growing criticism among the Canadian public over the impact swathes of incoming international students are having on the housing market.

"We've got two years to actually get the ship in order," Miller said Monday. "It's a bit of a mess and it's time to rein it in."

Miller’s announcement was met with both criticism and applause as Canadians were divided over the new measures either not being enough or appearing to shift blame to international students instead of the government’s “bad policies.”

“The question isn’t whether capping the number of international students will really improve housing affordability in Canada; the question is, who’s next?

“Once you start blaming immigrants for the bad policies created by an inequitable system, it can be hard to stop,” posted Calgary journalist Ximena González on X, formerly known as Twitter.

Others joined in singing praises for the “exploited class” while alarming the public that the new measures could be misconstrued, resulting in emboldening “anti-immigrant sentiment.”

Pierre Poilievre takes down ‘incompetent’ Justin Trudeau as he defends international students

The Conservative Party leader slammed Prime Minister Justin Trudeau for his “endless and nauseating virtue signalling” when asked by reporters during his press address if capping the intake of international students by the federal government is the right move.

“We had the most successful immigration system in the history of the world here in Canada,” told reporters Monday.

“And along came Justin Trudeau.” Poilievre added.

"International students and temporary foreign workers are not to blame for his incompetence. He is to blame," the opposition leader said defending study permit holders.

‘Pressure alleviated’: Housing Minister Sean Fraser addresses the study permit caps

Minister Sean Fraser spoke with reporters in Montreal where the federal cabinet is meeting over the next three days before the Parliament returns on January 29, with specific focus on housing and affordability issues.

Fraser was asked about the kind of impact the new caps on incoming international students will have on Canadian housing prices to which he responded saying the measures will help relieve pressure in some areas.

“There are certain pockets of the country that have seen significant increase in population growth as a result of institutions taking on more students than they can handle,” Fraser said.

“I anticipate, as you see, in some of those communities fewer students that may come to Canada as a result you may see some pressure alleviated.”

International students welcome the new caps on incoming batch

While there has been increasing criticism over the newly announced measures, some of the international students welcomed the government’s recent move in hopes that it will open up more employment doors for current students instead of doubling the pressure on the job market.

“As we know that the current job market at present is not optimally positive for new students in the market, having a limitation on the admissions will help government, to stabilize the situation by improving the overall infrastructure in the country, which would eventually help raise the number of jobs in all fields in the market,” Toronto School of Management graduate Akhilesh Reddy told Yahoo Canada as he begins to explore new job avenues after nearing completion for a second course at Canadore College.

“There are limited number of jobs when compared to the number of people in the market,” added the international student hailing from India.

Another recent graduate, Jordan Bhalla, shared a similar sentiment but also worried what the new measures could mean for his sibling who starts at a Canadian college in 2024.

“I wonder how this impacts my brother’s chances of growing in Canada considering the age-old Canadian dream seems to no longer exist,” Bhalla told Yahoo Canada.

How are the new laws limiting for international students?

As per the newly brought in measures, open work permits will only be available to spouses of international students in Masters and Doctoral programs.

The spouses of international students in other levels of study, including undergraduate and college programs, will no longer be eligible.

Starting September 2024, potential students will no longer be eligible for a postgraduate work permit if they attend a private college licensed to deliver the curriculum of an associated public college.

As part of more changes incoming, the length of study will no longer determine the duration of postgraduate work permit. Short programs, like a one-year program, will be eligible for a three-year postgraduate work permit.

Alberta to launch 'unprecedented' water-sharing negotiations Thursday amid drought fears


CBC
Wed, January 31, 2024

The Bow River flows through the downtown Calgary in this file photo. Alberta is poised to start negotiations with major water licence holders to strike sharing agreements in three key provincial river basins, including the Bow. (Jeff McIntosh/The Canadian Press - image credit)

Alberta will kick off negotiations with major water licence holders to strike water-sharing agreements for the Red Deer River, Bow River and Old Man river basins Thursday as concern over looming water shortages grows.

Significantly reduced mountain snowpack and below-average precipitation over the past number of months has led to extremely low reservoir levels and record-low river levels. All of the province will be affected by that, but southern Alberta's agricultural sector is expected to face particularly significant challenges.

As such, for the first time since 2001, the provincial government said it has authorized its drought command team to begin negotiations with the major water licence holders. The "scope and scale of the collaborative work underway and being proposed" is "unprecedented" in Alberta's history, the province said.

The use of water is restricted in Alberta through the issuing of "water licences" by the provincial government. One hundred per cent of Alberta's water is already allocated.

If one wants to purchase a licence, they must purchase one from an existing licence holder. This system — referred to as "first in time, first in right" — has been in place since 1894. It means, in essence, that the biggest water licence holders must voluntarily share more water with municipalities and industry.

Farmers are worried about their crops with warnings from the province saying they may exceed their share of the natural flow of the Milk River again this year.

The Alberta Land Institute estimated in 2017 that directly and indirectly, irrigation adds $940 million to the province's economy, with some 35,000 jobs tied to the practice. Irrigation is a significant user of the province's water. (Elise Walker/CBC)

There is no law in place that would allow the province to force water licence holders to share their water. There are 25,000 water licence holders in Alberta, according to the province, which make up 9.5 billion cubic metres of water.

Starting Feb. 1, Alberta Minister of Environment and Protected Areas Rebecca Schulz said negotiations would begin with major water licence holders to secure "significant and timely reductions in water use."

"This effort will be the largest water-sharing negotiation to have ever occurred in Alberta's history. I want to thank licence holders for coming to the table — your generosity, ingenuity and participation in this effort reflects the very best of our province," Schulz said.

Irrigation — the supply of water to the agricultural sector via a network of canals — is a significant user of the province's water, and negotiations with irrigation districts will be a key plank as a part of these upcoming negotiations. Alberta has the largest irrigated area in Canada, most of which are located within the province's 11 irrigation districts in southern Alberta along the South Saskatchewan River Basin.

Irrigation makes up a little more than 73 per cent of water allocation in the Bow River sub-basin and a little more than 83 per cent of water in the Old Man sub-basin, according to figures from Alberta Environment and Parks.

This map shows Alberta's 13 irrigation districts, which are located in the South Saskatchewan River Basin.

Shannon Frank, executive director of the Oldman Watershed Council, said water sharing agreements will be critical in the months ahead so as to ensure that no one loses access to water.

"The major water users, the irrigation districts in particular, have committed to making sure that there's access, especially for human health and livestock first," Frank said. "Crops have to take the third seat if there's not enough."

Frank said she didn't want to sugarcoat the situation ahead, as it's likely to be a challenging year. There will potentially be less crop yields, which will impact the economy.

More ranchers are likely to have to sell off their cattle because their grass isn't growing and water isn't available, she added. Municipalities may also have such low flows that they may not be able to pump water into their treatment plants.

"We might only be at the beginning of this drought, we don't really know," Frank said. "Everyone's just kind of waiting to see what the snowpack does, what the spring rain does."

The water-sharing agreements are expected to be completed before March 31.

Child poverty is on the rise in Canada, putting over 1 million kids at risk of life-long negative effects


Nicole Racine, L’Université d’Ottawa/University of Ottawa and Shainur Premji
Mon, January 29, 2024 

Poverty reduction has the potential to initiate a beneficial cascade that would improve the lives of children and youth. (Shutterstock)

At first glance, Canada ranks among the top third of countries for its work in addressing child poverty. But that isn’t the whole story.

Based on current rates of and overall progress in reducing child poverty, the latest UNICEF report card ranks Canada 11th out of 39 of the world’s wealthiest countries. Initially, it seems Canada is doing well; between 2012 and 2021, child poverty fell by 23 per cent.

In reality, since 2021, the number of children living in monetary poverty has sharply risen from 15.2 per cent in 2020 to 17.8 per cent in 2021, and more than one million Canadian children live in poverty today.

This means that one in five children live in persistent fear and stress, face barriers to having their basic needs met, such as stable housing and nutritious food, and experience a lack of opportunity, including access to quality early childhood experiences. As a child psychologist and a health economist, we know that the consequences of child poverty are lifelong and are worth prioritizing.

We know that poverty persists, generation by generation. This is why, although Canada ranks in the top third of countries, we shouldn’t lose sight of our reality. Canada is presently experiencing rising inflation and interest rates, both driving the cost of living crisis and the increase in child poverty rates. And while the economy continues to place constraints on all Canadians, it has a magnifying effect on those most vulnerable, including children.

Building a solid foundation for the future

Child poverty is a pernicious childhood adversity that has detrimental long-term impacts on children’s health, development and well-being throughout life. Children living in poverty have lower academic outcomes, including school readiness and academic achievement, than financially better-off children. Poverty is also a risk factor for behavioural and emotional difficulties.

These educational and social gaps are associated with chronic stress that persists over time, leading to lower earning potential, poorer health and poorer well-being. Poverty, including income loss, housing insecurity and material hardship, is also strongly associated with abuse and neglect, which are known toxic stressors for children and youth.

Poverty reduction has the potential to initiate a beneficial cascade that would improve the lives of children and youth. Taken together, addressing child poverty has the potential to put children on a more optimal developmental course and reduce their risk for poor outcomes.

Balancing today’s needs with tomorrow’s

Between 2012 and 2021, Canada made great strides in addressing child poverty. In 2016, the Canada Child Benefit (CCB) was introduced as a monthly tax-free supplement for eligible families to support the cost of raising children. Families in low to middle-income households benefited the most; the CCB reduced poverty by 11 per cent in single-parent families and 17 per cent in two-parent families.

The Canada Emergency Response Benefit (CERB) program provided additional temporary relief for eligible individuals during the COVID-19 pandemic. And, in recent years, the minimum wage has also increased for Canadians.

Although there is evidence that monetary interventions, such as cash transfers, help reduce mental health symptoms among youth experiencing poverty, there remains debate on whether these increases have helped families overcome challenges to the cost of living.

Furthermore, the CERB, provided during the pandemic, has now been discontinued, increasing the hardship among Canadian families. Until families are provided with adequate support, the reality is Canada may continue experiencing a rise in rates of child poverty with significant cascading effects.

Long-term payoffs of addressing child poverty

Addressing child poverty has long-term payoffs. Child benefit programs in Canada have been shown to positively affect children’s educational attainment and improve mothers’ health and mental health. These improvements can subsequently lead to improved health and mental health among children, which reduces long-term public costs.

In addition to being a human rights issue, addressing child poverty makes economic sense. This is why addressing child poverty needs to remain a priority for all Canadians. Governments, employers and communities must partner to reduce the risk of poverty. They can do this by:

Adopting a national living wage policy, where the hourly minimum wage supports the cost of living in Canadian communities.


Reducing food insecurity by enhancing access to nutritional food through nationally available school food programs.


Increasing school readiness by providing universal access to quality early childhood development programs across Canada.

Some are more at risk than others

In its report card, UNICEF identified single-parent families, families living in Indigenous communities, and families with racialized or disabled children as being at higher risk of poverty. These risks come with cascading health, social and justice consequences. Further multidimensional and targeted approaches are needed to support families that are more severely affected.

The Government of Canada has a legislated target to reduce poverty by at least 50 per cent relative to 2015 levels by 2030 in line with the Sustainable Development Goals.

As we saw before the pandemic, it is possible to reduce child poverty in Canada. However, unless the impact of the current economic climate on families is considered and suitably responded to, Canada may continue experiencing a rise in rates of child poverty, putting our collective future at risk. Canada can do better, and we should do better for our kids.

This article is republished from The Conversation, a nonprofit, independent news organization bringing you facts and analysis to help you make sense of our complex world.

It was written by: Nicole Racine, L’Université d’Ottawa/University of Ottawa and Shainur Premji.

Read more:

Food insecurity in Canada is the worst it’s ever been — here’s how we can solve it

Ending child hunger and food insecurity needs to be a top priority in Canada as well as globally

Nicole Racine receives funding from the Canadian Institutes of Health Research, the Social Sciences and Humanities Research Council, the University of Ottawa, and holds a Chair in Child and Youth Mental Health at the Children's Hospital of Easter Ontario Research Institute. She sits on the Board of Trustees for Strong Minds Strong Kids, Psychology Foundation of Canada.

Shainur Premji receives funding from the Canadian Institutes of Health Research, the Social Sciences and Humanities Research Council, and the National Institute for Health and Care Research.