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The Progressive Economics Forum

A prescription for health care reform: think integration & collaboration

This morning the CCPA released a new report (co-authored by yours truly) that looks at the thorny issue of health care reform in BC (and Canada) and identifies some practical, evidence-based strategies that have been successful in improving quality of care and controlling costs in other jurisdictions. The papers comes out at a time when [...]

So the BC HST Was Defeated. Now What?

Earlier today, Elections BC announced the much anticipated HST referendum results. British Columbians have voted to scrap the HST. The best part about having the results is that now we can move on from the narrow issue of what type of sales tax is better and focus our energies on some of the bigger issues [...]

What is a middle class income these days?

Whenever we consider the pros and cons of a new policy, we want to know if it benefits or hurts the poor, the middle class and those who are better off. Often, the answer depends on how we define each of these groups. It’s said that 99% of Canadians think of themselves as middle class, [...]

How much does poverty cost BC?

We’ve known for a long time that we all pay for poverty. We just didn’t know how much. This is the question I investigate in my latest CCPA report The Cost of Poverty in BC. If you’re not in the mood for reading the report, you can watch a short video that summarizes the findings [...]

Why is BC’s business sector so small?

Despite all the arguments outlined on this blog, and the federal election debates, the race to the bottom in corporate taxation seems to be alive and well in the G-7. The latest move comes from the UK, whose March budget announced a new 2 percentage point reduction in their corporate tax rate. Meanwhile, Canadian provinces [...]

The problems with the textbook analysis of minimum wages

I’ve been thinking a lot lately about the sorry state of the BC minimum wage, stuck at $8 after nine years two months and still counting. Yes, it will likely increase very soon, now that almost all leadership candidates on both sides have expressed support for higher minimum wages, but one has got to ask [...]

Why incentive pay won’t fix education or health care

It turns out — surprise! — that it’s really hard to measure quality in complex social systems and that employing simplistic quantitative measures can backfire. That’s the take-home message from a recent talk by UC Berkley economist and public policy professor Jesse Rothstein who came to SFU to present his latest research on using standardized [...]

A hip hop version of the Keynes vs Hayek debate

Here’s a new take on bringing economic theory to the masses — a rap battle between Keynes and Hayek. What’s amazing about it is the amount of solid (if not plain nerdy) content this video packs into such a short time. It’s fun to watch for sure (very high production values), but you get that [...]

We told you so: HST introduction a factor behind GDP drop in July

Among the concerns about the HST that we at the CCPA have raised was the poor timing of the tax change. From my pre-budget piece last September: If British Columbians respond to the HST by reducing their consumer spending, the timing of the HST introduction may actually slow down the economic recovery, which should be [...]

Young university grads having a hard time in the Canadian labour market

While we’re talking about labour markets, here’s a blog post I wrote for CCPA’s PolicyNote blog. — An interesting chart from The Economist shows that over a third of young university graduates in Canada end up working in low skilled jobs. In fact, Canada is second only to Spain in the OECD when it comes [...]

Will the HST boost job growth and over what timeframe?

As BC and Ontario have now started paying the HST at the till, many people may be wondering when exactly can we expect to see those jobs postings opening up. This is a good question. According to analysis commissioned by the BC government from economist Jack Mintz, titled British Columbia’s Harmonized Sales Tax: A Giant [...]

HST and Family Budgets: What’s Behind the Vastly Different Results

That the HST will take a bite out of family budgets is clear to everyone. The main question right now is just how big of a bite. Two studies released in BC earlier this week asked this exact question but came to very different conclusions. On Monday, the Fraser Institute released a paper arguing that [...]

A New Era for Measuring Poverty in Canada

Last Thursday’s Statistics Canada release of individual and household income data for 2008 marks a new era in the study of poverty in Canada. Instead of reporting only on the Low Income Cut Offs (LICO), as they used to, Statistics Canada reported on three of the most common measures of low income in the same [...]

The job market may be recovering but some jobs are not coming back

A recent article in The New York Times illustrates this point with the story of an unemployed administrative assistant in her 50s, who has not been able to find a job for over two years after being laid off. As the journalist explains, her difficulties are likely not the result of age discrimination, the weak [...]

Don’t Let Numbers Fool You: Common Statistical Tricks You Should Know About

As promised, here’s my fourth post inspired by the recent Fraser Institute report on taxes paid by Canadian families. I can’t stand seeing people fall simple numbers tricks. And while I realize that I don’t have the time to argue with everyone who is wrong on the Internet, I try to make it a point [...]

Have Taxes Changed All That Much Over the Past Half Century?

A recently released Fraser Institute report claims that the tax bill of the average Canadian family grew by a whopping 1,624% since 1961. This is an enormous number, designed to appeal to our sensationalism-hungry media, but it does not provide a meaningful comparison of today’s average tax bill and the tax bill our parents’ and [...]

It’s Not Just About Size: What Makes Up Our Tax Bill Matters

The Fraser Institute and the CCPA do not typically see eye to eye, but they seem to agree that personal income taxes take up a relatively small fraction of the average tax bill — about 13 – 14%. According to the Fraser Institute’s recent report on the average Canadian family’s tax bill, the average family [...]

Are Canadians Paying Too Much in Taxes?

It’s tax season and people are looking more closely at their incomes and the amount of taxes they pay. The Fraser Institute released their annual Consumer Tax Index report yesterday, claiming that the total tax bill of the average Canadian family now takes up 41.7% of their income. This seems like a big number, which [...]

How Effective Was the Stimulus?

When the global recession hit in late 2008, economic output and employment fell so steeply in such a short period of time that policy-makers were seriously concerned about the possibility of the downturn growing into a global depression. The sense of urgency led to unprecedented levels of multilateral economic coordination, with stimulus spending rolled out [...]

Tales from the Mouth of the Fraser: Did Stimulus Spending Play a Role in the Recovery

Yesterday, the Fraser Institute published a new report, which argues that the government stimulus did not drive Canadian economic growth in the last two quarters of 2009 and suggests that government spending on infrastructure was useless for the economy. The report earned the scorn of Finance Minister Flaherty, who was quoted in the Vancouver Sun [...]

Women in the Canadian Economy: What’s Standing in the Way of Equality?

Last weekend, I spoke at a community event celebrating International Women’s Day in Vancouver. It got me thinking about the status of women in the Canadian economy, reflecting both on the successes over the last half century and on the areas where work is still needed to achieve gender equality. As a young woman in [...]

BC’s Urban Housing (Un)affordability

A new study published today by the Frontier Institute for Public Policy finds that Vancouver has the most unaffordable urban housing market not just in Canada, but in all of Australia, Ireland, New Zealand, the United Kingdom and the United States. This conclusion is based on a very simple, yet effective measure of housing affordability: [...]

Kevin Page Gives A Lesson on Transparency

The more I read about the Parliamentary Budget Officer Kevin Page, the more respect I have for him. He has proven to be an excellent choice for his position, much to the dismay of the Conservative government who created his job in the first place, back in the days when open government was on the [...]

Oh, about the size of that BC deficit for next year…

It’s the leading article in the BC section of national newspapers today: BC’s Finance Minister has finally admitted that next year’s budget deficit would be much larger than the $495 million number than our Premier swore by during the recent election campaign. Private sector economists have been saying it for a while and it was [...]

BC Pulls Off a Small Surplus in 2008/09

The BC Public Accounts for 2008/09 fiscal year were released yesterday, showing that the province posted a surplus of $78 million or $28 million higher than projected in the 2008 Budget. Oh, phew, now we don’t have to worry about cabinet ministers facing the fines associated with a budget deficit under the Liberals’ balanced budget [...]

Ethnic-sounding names a barrier in the Canadian labour market

So says a new paper by UBC economist Phil Oreopoulos, Why Do Skilled Immigrants Struggle in the Labor Market? A Field Experiment with Six Thousand Resumes. As a skilled immigrant with a non-Anglo sounding name I find this quite disturbing. As should native-born Canadians who like to think that their country is tolerant and welcoming [...]

There is more to good economic policy than protecting the interests of employers

But you wouldn’t know it if you listened to the message that the BC Liberals have been sending in this provincial election campaign. Instead of discussing the merits of his party’s proposed economic recovery policy, the incumbent Premier prefers to tell British Columbians that responsible economic stewardship involves keeping the business sector happy and anything [...]

Is the stimulus killing the P3 model?

While BC has not formally abandoned the P3 model, there is a notable absence of new P3 announcements at a time when billions of dollars are being channeled to infrastructure spending. If P3s really provided value for money and brought the benefits of private sector efficiency and innovation to the delivery of public-sector infrastructure, then [...]

Participatory Democracy in Action in Brazil

I came across an interesting piece in YES! Magazine about a city in Brazil that took an innovative approach to poverty reduction and practically ended hunger by adopting a food-as-a-right policy. Here is their story in a nutshell (although I recommend checking out the actual article). Belo Horizonte is the fourth largest city in Brazil [...]

New CCPA Study Finds Growing Inequality and Declining Family Incomes in BC

Yesterday the CCPA released a new study on family income inequality in BC by yours truly, which reveals some disturbing statistics about family incomes over the past 30 years. The figure below summarizes our main findings. Among our other key findings: The gap between the wealthiest and the majority of BC families has grown dramatically [...]