Like 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 moreCBC recently reported that Conrad Black was acquitted on most of the charges against him because a lone juror dug up critical evidence that his own lawyers did not present. This revelation seems to support Mark Steyn’s criticism of these lawyers.
Read moreThree weeks ago, I wrote, “Budget 2007 used the federal spending power quite aggressively to pay provincial governments to eliminate their Corporate Capital Taxes. A similar use of the power will be needed if the Conservatives are serious about harmonizing provincial sales taxes with the GST.” The front page of Friday’s National Post reported, “The Conservatives will encourage the five […]
Read moreThomas Palley, formerly of the AFL-CIO, just posted a very good piece on “The New Economics of Trade” that clearly connects the dots between several themes frequently discussed on this blog.
Read moreOn Friday, the Finance Minister and the Treasury Secretary signed the Fifth Protocol of the Canada-US Income Tax Convention. The Canadian government lined up several business organizations in advance to provide endorsements, which have dominated the media coverage. One of these organizations, the C. D. Howe Institute, made the case for the amended treaty through an op-ed in Saturday’s Financial […]
Read moreThe Canadian Labour Congress sent the following letter to the Bank of Canada today. September 20, 2007 David A. Dodge Governor Bank of Canada 234 Wellington Street Ottawa, Ontario K1A 0G9 Dear Governor Dodge: I write to urge you to reduce interest rates by 0.5% on October 16th to match the recent US rate cut. My letter of June 27th […]
Read moreUpon returning from Montreal, where I volunteered for the NDP on by-election night, I discovered that the US Federal Reserve cut interest rates by a whopping half point. I do not have a fully-formed analysis of either Mulcair’s victory or the rate reduction, but would like to kick-off some discussion on this blog. Mulcair’s win strikes me as an important […]
Read moreErin’s recent post http://www.progressive-economics.ca/2007/09/12/government-size-canada-us/ prompted me to read Ferris and Winer’s interesting piece on the size of government in Canada and the US. The underlying data for the article have been usefully posted by the authors at http://http-server.carleton.ca/~winers/ (You’ll have to find the spread sheet posted at that site under author’s papers, and then look at the sheet for functional […]
Read moreThere are several interesting articles in the most recent (June 2007) issue of Canadian Public Policy, but the one that grabbed my attention examines the size of government in Canada and the US. Most commentators assume that the Canadian public sector is significantly larger. A few point out that the huge reduction of Canadian-government spending (relative to GDP) since the […]
Read moreThere’s no question that the Financial Post, as the National Post’s business section, tilts heavily to the right. However, today’s letters section (FP15) could almost have been copied and pasted from this blog. In the first letter, Shalom Schachter responds to the whiny Labour Day op-ed from John Mortimer of LabourWatch. In the second letter, Kris Larson notes that continued […]
Read moreI did not follow the Conrad Black trial, but enjoyed reading Mark Steyn’s mammoth post mortem. In contrast to Marc Lee’s excellent commentary on this blog, Mark Steyn is a die-hard supporter of Black. The post mortem’s main argument is that Black’s legal team did an extremely poor job. In one sense, blaming the lawyers is simply the last ditch […]
Read moreI watched most of last night’s debate among Democratic Party presidential candidates and vaguely got wind today of Clinton panning Obama’s indication that he would meet with the presidents of Iran, North Korea, Cuba and Venezuela. What struck me was that all the candidates who answered this question seemed to accept the lumping together of all these leaders into the […]
Read moreVancouver political scientist Peter Pronzos emailed this review of Michael Byers’ new book, Intent for a Nation: “…so close to the United States†By Peter Pronzos Book review of Intent for a Nation: What is Canada For? By Michael Byers Douglas & McIntyre, 248 pages, $32.95 When former Prime Minister Jean Chrétien bowed to public opinion and refused to send […]
Read moreI’m not a big fan of business journalism. For the most part, it’s a lazy, sycophantic, uninspired, biased, occasionally self-interested (in a conflict-of-interest sense) and worse yet, boring business. I should know, I was once part of the fold. In my experience, at least half of financial journalists are in it for the food (gotta love annual report/annual meeting season […]
Read moreThe following letter is printed in today’s Globe and Mail: Re Harper signals shift from Africa to Americas (June 8), Announcements by Prime Minister Stephen Harper and International Trade Minister David Emerson that Canada intends to negotiate a free-trade deal with Colombia can only be described as chutzpah. Consider: More union leaders are killed in Colombia than in all of […]
Read moreLimiting global temperature increase to 2 degrees is a good objective because above that amount the likelihood of runaway climate change (melting of Greenland and the Arctic; release of methane from permafrost in the North) is really serious. So this news that the US is not interested in this issue is depressing. Not that communiques coming out of the G8 […]
Read moreProgressives often present corporate-tax cuts as having transferred billions of dollars from the Canadian government to big business. This characterization is largely correct, but neglects the fact that many foreign-based corporations operating in Canada are also taxed on a worldwide basis by foreign governments. To the extent that corporations in Canada are affiliates of American and Japanese multinationals, Canadian corporate-tax […]
Read morePaul Krugman takes on deregulation in the US, sounding a lot like a CCPA research associate. In a research paper released last year, Bruce Campbell and I contemplated deregulation in the Great White North (dubbed “smart regulation” by the previous Liberal government) and a current obsession of our policy elites, regulatory harmonization (dubbed “cooperation”). We made the case that harmonizing […]
Read moreWhile William Watson and Margaret Wente are shrugging their shoulders at growing inequality in Canada, and endorsing policies that would make our income distribution more like that of our southern neighbour, concerns in the US about rising inequality are actually getting a better hearing. An example is the following article in Business Week (The Poverty Business: Inside U.S. companies’ audacious […]
Read moreBy walking out on Gordon Laxer’s testimony about the SPP’s potential impact on Canadian energy security, the Conservatives have given him far more media coverage than he otherwise might have received. Today, the following story appeared in The Montreal Gazette, The Ottawa Citizen and The Edmonton Journal: Tory chair storms out of SPP hearing Freezing in the dark ‘not relevant’ to […]
Read moreFollowing the lead of several American municipalities, Maryland has become the first state to mandate a “living wage” for government contractors. Larger businesses working on larger contracts will have to pay at least $11.30/hour in urban areas and $8.50/hour in rural areas. While this bill is no substitute for an adequate minimum wage covering all workers, it is a positive […]
Read moreA new edited volume, Whose Canada?: Continental Integration, Fortress North America, and the Corporate Agenda, by Ricardo Grinspun and Yasmine Shamsie, has just come out, featuring many of your favourite left-wing writers. The full book is out from McGill-Queen’s University Press, and can also be purchased through the CCPA. The table of contents can be viewed here. The synopsis follows: […]
Read moreSays Lawrence Martin in his Globe column: In the 1970s, the activists, their views vindicated on Vietnam, were in the vanguard. In this decade, the activists, their views vindicated on Iraq, not to mention global warming, have no such standing.Speak out back then and you were cool. Speak out today and some fount of wisdom with a Fox News mentality […]
Read moreFor more on the themes highlighted below by Jim, my note on trade balances and jobs is now available through the CCPA.
Read moreOther than the occasional call for Canada to adopt the US dollar, discussion of Canadian monetary policy mainly consists of the C. D. Howe Institute and the Bank of Canada praising inflation targeting. As Thomas Palley reminds us, another perspective exists: The Case Against Inflation Targeting A few months ago the Federal Reserve seemed to be inexorably moving toward adopting […]
Read moreOver at MaxSpeak, the state of housing and whether or not it is a bubble is reviewed: THE GREAT HOUSING BUBBLE FLAP Probably most who read this blog accept that there was a bubble in the US housing market, and that it has come to an end. Some regulars here, notably the notable Dean Baker, were early out the door […]
Read moreThomas Palley credibly suggests that the Bush White House has been driving up oil prices by expanding this reserve, but then lowering them during American elections by depleting the reserve. I have also heard suggestions that the Clinton White House depleted the reserve at election time, but am not sure whether it expanded the reserve outside of elections. Manipulating the Reserve by Thomas […]
Read moreThe following note, including tables, is available on the Canadian Labour Congress website: Free trade was promoted to Canadians on the famous promise of “jobs, jobs, and more jobs†and is widely defended on the basis that Canada’s large trade surplus with the US contributes to Canadian employment. Meanwhile, American commentators are concerned that the US trade deficit displaces American […]
Read moreJoseph Stiglitz compares Europe and America in his latest column. Message to Canada: like the EU we should not be lulled by conservatives’ obsession with GDP per capita differentials. Europe’s success points the way to better world IN some quarters, pessimism dominated the recent celebrations marking the European Union’s 50th birthday. Unease about the EU’s future is, of course, understandable, […]
Read moreFrom the keynote speech delivered by Paul Krugman at the Economic Policy Institute’s recent conference on The Agenda for Shared Prosperity: A History of America’s Disappearing Middle Class By Paul Krugman …One thing I’ve been noticing on multiple debates in public policies — climate change is another one — is there seems to be an almost seamless transition from denial […]
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