The unprecedented surge in the Canadian dollar from 85 cents US in early 2007 to as high as $1.10 in early November is deeply disturbing in terms of its implications for the health of the economy and the job market. Very rapid exchange rate appreciation is bad news for most enterprises exporting abroad, or competing with US and Asian exporters […]
Read moreThe Saskatchewan Party won 37 seats with 51% of the popular vote and the NDP won 21 seats with 37% of the vote. Obviously, the Saskatchewan Party’s victory is bad news for progressives. The provincewide figures mask significant regional variations. Outside of the main cities, the Saskatchewan Party won 27 seats with 62% of the rural vote. Two of the […]
Read moreSome of the knee-jerk commentary in response to my paper has been about what an ideal, or fair, tax system should really look like. These people question progressive taxation. To them, I quote Adam Smith from The Wealth of Nations (from Wikipedia): The necessaries of life occasion the great expense of the poor. They find it difficult to get food, […]
Read moreThe CCPA today released my paper, Eroding Tax Fairness: Tax Incidence in Canada, 1990-2005. The Toronto Star ran a front-page story on it that is quite good. This paper was a long time in the making – while it might seem fairly straightforward to calculate the share of taxes in income for different groups, there are many tricky data and […]
Read moreIn yesterday’s Ontario Farmer, the federal Minister of Agriculture, Gerry Ritz, railed against “tremendous inter-provincial trade barriers.” His example was restrictions on moving beef between provinces. My understanding is that, to the extent such restrictions exist, they arise from federal regulations rather than from provincial policy. Ritz claimed, “I have no problems with Quebec beef coming into Ontario as long […]
Read moreIn an op-ed printed today, John Mortimer of LabourWatch applauds an Ontario court’s decision not to enforce the Public Service Alliance of Canada’s fines against members who crossed picket lines. One wonders how his inane rhetoric about “human rights” slipped past the Financial Post’s editors. To an economist, this issue is a classic “free rider problem.” Collectively, the workers benefit […]
Read moreYay, we’re winning the war on poverty, says Margaret Wente. Her recent column is based around the fact that the poverty rate has fallen in recent years. Wente uses this to go on a latte-fuelled SUV romp over the bodies of people who work with (and give a shit about) the poorest in our society. The sum total of statistics […]
Read moreHeather Scoffield had an interesting little “how-to” guide in Saturday’s Globe and Mail on the macroeconomic effects of the improvement in Canada’s terms of trade (the result of soaring global prices for the resources which Canada increasingly exports). The terms of trade, for the blissfully uninitiated, is the ratio of a country’s export prices to its import prices. You can […]
Read moreThe whole idea of the free-market is that the relentless pursuit of self-interest leads people to do greedy things that ultimately benefit all of us. That’s what makes it so humorous to see that appeals to voluntarism have become one of Finance Minister Jim Flaherty’s major policy tools. At least there was a bit of poetic justice in his phony, […]
Read moreIntroduction The Canadian Labour Congress, the Ontario Federation of Labour, the Quebec Federation of Labour (FTQ) and the United Steelworkers recently commissioned a major, technical report on the manufacturing sector from the economic consulting firm Informetrica. (The study “Economic Effects of Structural Changes in Manufacturing: A Retrospective View†is available from http://www.informetrica.com/IL_ManReport1_Final.pdf). The study confirms a great deal of what […]
Read moreLike other disciplines, economics tends to organize material into narratives. It is worth scrutinizing the “stylized facts” that underlie these narratives, as page B15 of Saturday’s Globe endeavoured to do. One piece of conventional wisdom is that the Canadian dollar’s value is driven by the skyrocketing price of oil. David Wolf argued, and Heather Scoffield reported, that the loonie is probably […]
Read moreWhile reading a recent issue of l’Aut’ Journal, I came accross a story claiming that the Montréal municipal police offers privately some of its services (e.g. bodyguards). Well, a rapid visit on the website of the municipal police verified that claim. In fact, there is a whole brochure on the site which details all the services that can be privately […]
Read moreAs Andrew, Bruce, Marc, Ish and others have correctly argued, last week’s Economic Statement wastes money that could otherwise have financed vital public programs. Two tables in the Statement are critical to this case. Table 2.2 (page 45) estimates the costs of newly-announced tax cuts. Table 3.1 (page 73) estimates the costs of all tax cuts adopted since the Conservatives came to power. The […]
Read moreMy take on this morning’s Labour Force Survey follows: Goods-Producing Industries Cut Jobs Canada’s beleaguered manufacturing sector lost a further 3,500 jobs in October. Employment also fell by 1,900 in natural resources, 1,900 in agriculture, and 700 in construction. Saskatchewan Bucks the Western Trend Although more part-time jobs increased total employment, western Canada lost full-time jobs in October. Specifically, British […]
Read moreToday’s Survey of Employment, Payroll and Hours doesn’t seem to support the rosy view that our labour market is turning out better jobs and higher wages. Of the 285,000 payroll jobs created over the past year (August 06 to August 07, seasonally adjusted), almost half (46% or 130,000) were in the two lowest-paid broad industrial sectors, retail trade (85,000 net […]
Read moreAlthough I generally disagree with Andrew Coyne’s take on economic issues, I enjoy his commentary because it is almost always articulate and well-informed. Last Saturday’s column, which may be his second-last at the National Post before moving to Maclean’s, was a glaring exception. In particular, it contradicted Coyne’s own previous contentions. When the Government of Newfoundland and Labrador took an equity […]
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