Main menu:

History of RPE Thought

Posts by Tag

RSS New from the CCPA

  • CCPA's National Office has moved! May 11, 2018
      The week of May 1st, the Canadian Centre for Policy Alternatives' National Office moved to 141 Laurier Ave W, Suite 1000, Ottawa ON, K1P 5J2. Please note that our phone, fax and general e-mail will remain the same: Telephone: 613-563-1341 | Fax: 613-233-1458 | Email: ccpa@policyalternatives.ca  
    Canadian Centre for Policy Alternatives
  • What are Canada’s energy options in a carbon-constrained world? May 1, 2018
    Canada faces some very difficult choices in maintaining energy security while meeting emissions reduction targets.  A new study by veteran earth scientist David Hughes—published through the Corporate Mapping Project, the Canadian Centre for Policy Alternatives and the Parkland Institute—is a comprehensive assessment of Canada’s energy systems in light of the need to maintain energy security and […]
    Canadian Centre for Policy Alternatives
  • The 2018 Living Wage for Metro Vancouver April 25, 2018
    The cost of raising a family in British Columbia increased slightly from 2017 to 2018. A $20.91 hourly wage is needed to cover the costs of raising a family in Metro Vancouver, up from $20.61 per hour in 2017 due to soaring housing costs. This is the hourly wage that two working parents with two young children […]
    Canadian Centre for Policy Alternatives
  • Mobility pricing must be fair and equitable for all April 12, 2018
    As Metro Vancouver’s population has grown, so have its traffic congestion problems. Whether it’s a long wait to cross a bridge or get on a bus, everyone can relate to the additional time and stress caused by a transportation system under strain. Mobility pricing is seen as a solution to Metro Vancouver’s transportation challenges with […]
    Canadian Centre for Policy Alternatives
  • Budget 2018: The Most Disappointing Budget Ever March 14, 2018
    Premier Pallister’s Trump-esque statement that budget 2018 was going to be the “best budget ever” has fallen a bit flat. Instead of a bold plan to deal with climate change, poverty and our crumbling infrastructure, we are presented with two alarmist scenarios to justify further tax cuts and a lack of decisive action: the recent […]
    Canadian Centre for Policy Alternatives
Progressive Bloggers

Meta

Recent Blog Posts

Posts by Author

Recent Blog Comments

The Progressive Economics Forum

Five Things to Know About the 2018 Federal Budget

I’ve written a blog post about the 2018 federal budget.

Points made in the blog post include the following:

-Important new housing investments were made for First Nations, Inuit and Métis people.

-The Working Income Tax Benefit was expanded, made automatic and rebranded (i.e., renamed).

-Canada’s official unemployment is now the lowest it’s been in decades.

-Canada’s federal debt-to-GDP ratio is (by far) the lowest of any G7 country.

The link to the full blog post is here.

Enjoy and share:

Comments

Comment from Larry Kazdan
Time: March 2, 2018, 6:48 pm

Letter to Chronicle Herald (unpublished)

Re: Unemployment rate tumbles to 5.7% to reach lowest mark in more than 40 years, Canadian Press, Jan. 5, 2018
https://www.thechronicleherald.ca/business/1534068-unemployment-rate-tumbles-to-5.7-to-reach-lowest-mark-in-more-than-40-years

The unemployment rate of 5.7% may be the lowest in more than 40 years, but these were years of neo-liberal triumph. Unemployment after WWII until the mid-1950s averaged less than 3%, and had dropped to 1.4% during WWII itself. However, business and financial elites are happy to erase history, and to normalize higher rates because for them a slightly recessed economy delivers numerous benefits.

Higher unemployment means less pressure on wages that reduce the profit share. It also means less inflation that erodes accumulated wealth. And if the workforce is induced to borrow to maintain lifestyles, not only is another stream of financial income created, but the debt burden and fewer opportunities keep workers obedient through fear of losing their jobs.

Unfortunately over 1.1 million Canadians are officially unemployed today, and this number does not count those discouraged nor involuntarily working part-time. Through targeted fiscal and monetary stimulus, the federal government could halve the existing unemployment rate. But to do so, it would have to side with the workforce and challenge the establishment.

(Footnotes to follow.)

Comment from Larry Kazdan
Time: March 2, 2018, 6:50 pm

Footnotes to Letter to Editor:

1. A note on Canadian unemployment since 1921
http://www.statcan.gc.ca/pub/75-001-x/1992003/87-eng.pdf

“From 1927 to 1929, and again during and after the Second World War, unemployment rates dropped to 3% or less……”

2. The Deficit: Hysteria and the Current Crisis
http://haroldchorneyeconomist.com/2011/10/11/the-deficithysteria-and-the-current-crisis/

“Further, in order to reduce the rate of unemployment and eventually the deficit in the longer term it is necessary to greatly increase the gap between government expenditure and revenues.

This is clearly what happened during World War II when the deficit rose from less than 1 percent of the GNE in 1939 to 21.7 percent of the GNE in 1944. The unemployment rate fell from 11.4 percent to 1.4 percent during the same period.”

3. You know who likes lackluster economic growth? The rich. Jeff Spross
http://www.theweek.com/articles/580975/know-who-likes-lackluster-economic-growth-rich

“Elites obviously don’t want to completely tank the economy. But it certainly works for them if it stays modestly stagnant, maximizing the growth of the pie while minimizing worker bargaining power.”

Write a comment





Related articles