Main menu:

History of RPE Thought

Posts by Tag

RSS New from the CCPA

  • A critical look at BC’s new tax breaks and subsidies for LNG May 7, 2019
    The BC government has offered much more to the LNG industry than the previous government. Read the report by senior economist Marc Lee.  
    Canadian Centre for Policy Alternatives
  • The 2019 living wage for Metro Vancouver April 30, 2019
    The 2019 living wage for Metro Vancouver is $19.50/hour. This is the amount needed for a family of four with each of two parents working full-time at this hourly rate to pay for necessities, support the healthy development of their children, escape severe financial stress and participate in the social, civic and cultural lives of […]
    Canadian Centre for Policy Alternatives
  • Time to regulate gas prices in BC and stop industry gouging April 29, 2019
    Drivers in Metro Vancouver are reeling from record high gas prices, and many commentators are blaming taxes. But it’s not taxes causing pain at the pump — it’s industry gouging. Our latest research shows that gas prices have gone up by 55 cents per litre since 2016 — and the vast majority of that increase […]
    Canadian Centre for Policy Alternatives
  • CCPA welcomes Randy Robinson as new Ontario Director March 27, 2019
    The Canadian Centre for Policy Alternatives is pleased to announce the appointment of Randy Robinson as the new Director of our Ontario Office.  Randy’s areas of expertise include public sector finance, the gendered rise of precarious work, neoliberalism, and labour rights. He has extensive experience in communications and research, and has been engaged in Ontario’s […]
    Canadian Centre for Policy Alternatives
  • 2019 Federal Budget Analysis February 27, 2019
    Watch this space for response and analysis of the federal budget from CCPA staff and our Alternative Federal Budget partners. More information will be added as it is available. Commentary and Analysis  Aim high, spend low: Federal budget 2019 by David MacDonald (CCPA) Budget 2019 fiddles while climate crisis looms by Hadrian Mertins-Kirkwood (CCPA) Budget hints at priorities for upcoming […]
    Canadian Centre for Policy Alternatives
Progressive Bloggers

Meta

Recent Blog Posts

Posts by Author

Recent Blog Comments

The Progressive Economics Forum

Worker Bargaining Power and the Crisis

Here is a keeper – an IMF study that argues that loss of working class bargaining power is an underlying cause of financial crises, and that retoration thereof is key to reducing debt.

The abstract –

“The paper studies how high leverage and crises can arise as a result of changes in the income distribution. Empirically, the periods 1920-1929 and 1983-2008 both exhibited a large increase in the income share of the rich, a large increase in leverage for the remainder, and an eventual financial and real crisis. The paper presents a theoretical model where these features arise endogenously as a result of a shift in bargaining powers over incomes. A financial crisis can reduce leverage if it is very large and not accompanied by a real contraction. But restoration of the lower income group’s bargaining power is more effective.”

Enjoy and share:

Comments

Comment from duncan cameron
Time: December 1, 2010, 7:02 am

This should be useful in talking to the opposition finance critics on the Hill who are constantly bombarded with arguments for public sector austerity and corporate tax breaks at a time when debt deflation prevails (as partially evidenced by the GDP numbers yesterday).
I wonder if they author(s) could be invited to Ottawa to do a presentation at a venue similar to the breakfast on the Hill series at the old Press Club. It would be nice if Barrie McKenna, and other reporters could hear about this first hand.

Comment from Travis Fast
Time: December 1, 2010, 9:55 am

Funny I argued something like that back at a conference in 2007 and a colleague accused me of presenting the good ol religion. Shame that a pretty standard “Keynesian” interpretation of neoliberalism should have seemed as though it were radical. But that is how far things got away from reality in 2007. As the US shows they are still far away from reality so I imagine a single IMF paper is not going to change much of the discourse; particularly given that is the exact opposite of what they (the IMF) are DOING in Ireland.

Comment from Sunszer
Time: December 1, 2010, 10:16 am

As revealing (though to most of us, unsurprising) as this report may be, we should not expect our government or business leaders to feel any sympathy with its findings. It is even more improbable that our they would find reason to enact any sort of progressive reform based on the reports conclusions.

Much more likely it is, that economic failures will continue to be attributed to the usual scapegoats: high taxes, execessive regulation, greedy unions, a lazy and undisciplined workforce, wasteful social spending and so-on. Same old mantra, same denial of responsibility, same mistakes, same unpleasant results.

There is ample historical precedent to suggest that the core of wealthy and powerful elite are simply incapable of learning from their past errors. They are ideologues, deeply entrenched in the economic superstition of the “free market”. Whithin the orthodoxy of the ruling class, to think or speak critically of their belief system is to become a heretic.
Economic policy is not a means but an end unto itself. The end is a simple one: the on-going concentration of wealth into the hands of the oligarchy. As such it is thus an unasailble “good”, not to be questioned or challenged by those who do not stand to benefit. Befittingly, the means chosen to achieve such an end must not be corrupted by considerations which do not conform to the pursuit of the divine vision…

Unfortunatley, denial of their own responsibility and the apportioning of blame to others will continue for as exactly as long as no-one holds them to account for the greed and poor decisions that bring about negative economic outcomes.

Comment from Travis Fast
Time: December 1, 2010, 12:07 pm

I should add however that the IMF has been pushing for a very different type of bailout for Ireland but that are not getting traction in the face of European and and German intransigence according to Eichengreen.

Comment from Purple Library Guy
Time: December 1, 2010, 1:55 pm

Nothing new there. Both the IMF and the World Bank often publish surprisingly enlightened/fact based studies which they inevitably blithely ignore at the policy-setting level, where class war from above remains the main objective.

Write a comment





Related articles