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  • Community Economic Development in Manitoba - a new film January 16, 2018
    Cinameteque, Jan 23.  7:00 pm - Free event Film Trailer CCEDNET-MB, CCPA-MB, The Manitoba Research Alliance and Rebel Sky Media presents: The Inclusive Economy:  Stories of Community Economic Development in Manitoba
    Canadian Centre for Policy Alternatives
  • Winnipeg's State of the Inner City 2018 January 3, 2018
    Winnipeg's community-based organizations are standing on shakey ground and confused about how to proceed with current provincial governement measurements.  Read the 2018 State of the Inner City Report.
    Canadian Centre for Policy Alternatives
  • Our Schools/Our Selves: Winter 2018 is online now! December 18, 2017
    For the first time, this winter we are making Our Schools/Our Selves available in its entirety online. This issue of Our Schools/Our Selves focuses on a number of key issues that education workers, parents, students, and public education advocates are confronting in schools and communities, and offers on-the-ground commentary and analysis of what needs to […]
    Canadian Centre for Policy Alternatives
  • Charting a path to $15/hour for all BC workers November 22, 2017
    In our submission to the BC Fair Wages Commission, the CCPA-BC highlighted the urgency for British Columbia to adopt a $15 minimum wage by March 2019. Read the submission. BC’s current minimum wage is a poverty-level wage. Low-wage workers need a significant boost to their income and they have been waiting a long time. Over 400,000 […]
    Canadian Centre for Policy Alternatives
  • CCPA-BC joins community, First Nation, environmental groups in call for public inquiry into fracking November 5, 2017
    Today the CCPA's BC Office joined with 16 other community, First Nation and environmental organizations to call for a full public inquiry into fracking in Britsh Columbia. The call on the new BC government is to broaden a promise first made by the NDP during the lead-up to the spring provincial election, and comes on […]
    Canadian Centre for Policy Alternatives
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The Financial Crisis and Interprovincial Trade

In Saturday’s Globe, Gordon Campbell ridiculously presented eliminating inter-provincial barriers as a response to the global financial crisis. Although Marc beat me to the punch in replying, I have a few further thoughts.

Several months ago, TILMA boosters said that removing alleged barriers to labour mobility was particularly pressing given a “tight” labour market. Today, the same people say that removing barriers is particularly pressing given an economic downturn and rising unemployment. These contradictory arguments confirm that TILMA is a solution in search of a problem.

The notion of eliminating inter-provincial barriers as a response to the financial crisis reminds me of a point that J. K. Galbraith made in The Affluent Society: the economic losses caused by microeconomic inefficiencies are very small compared to those caused by macroeconomic problems. Even wildly excessive estimates of supposed inter-provincial barriers suggest that these cost 0.25% of GDP. Even the most conservative estimates of how much the financial crisis is reducing annual GDP relative to normal growth are at least ten times larger. Stimulating the overall economy is far more important than ironing out tiny inefficiencies.

The renewed attack on supposed inter-provincial barriers is especially bizarre because, this past summer, Quebec dismantled its famous restriction on coloured margarine and all Premiers agreed to mutual recognition of occupational credentials as well as financial penalties for AIT disputes.  It’s hard to imagine what “barriers” could remain. The Throne Speech’s tough talk on inter-provincial trade may well just position the federal government to claim credit for what provincial governments were already doing.

I think that there is an opportunity to counterattack on this front. Provincial opposition parties should expose governments that publicly rejected TILMA but are now introducing some of that deal’s worst features through the back door.

For example, during the 2007 provincial election, Dalton McGuinty wrote, “We will not sign an agreement that would lower or would allow for the lowering of environmental, labour, health and safety standards for Ontario workers.” But by agreeing to “mutual recognition of occupational credentials between all provinces and territories,” he is indeed committing to lower Ontario’s standards to permit the minimum standard maintained by any other province or territory.

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