Our politicians are obsessed with tax cuts. The next election will now feature the battle of the tax cuts, with the Canada’s New Harperment pushing for more GST cuts (and who knows what other plans to reduce the size of the federal government) versus Dion’s plan for more personal and corporate income tax cuts. Meanwhile, poverty and homelessness will continue […]
Read moreAnnouncing the Center for the Applied Study of Economics & the Environment, a new US grouping of progressive economists. Here is their manifesto: Real People, Real Environments, and Realistic Economics The wealth and power of humanity in the 21st century could be used to create a far better world. We write as economists who are troubled by environmental degradation and […]
Read moreThe Globe Report and Business has a story today (can’t find it online) to the effect that the federal Budget will improve depreciation rates for new capital equipment investment, but not lower the general corporate income tax rate beyond already planned levels. As noted by Erin in an earlier post, this reflects Finance thinking as reflected in the recent report […]
Read moreJohn Ibbitson leaps to the defence of the US entertainment industry and their bid to hold back the tide of history. It is not clear at all what harms are being caused by the existing Copyright Act and why it should be fixed to make rich US entertainment corporations even richer. To channel Dean Baker, copyright laws are an interference […]
Read moreThe story below was the banner headline piece on page one of today’s Vancouver Sun, and is a perfect choice for the “we told you so” file. Three years ago, after being awarded the 2010 Olympics, our BC Solutions Budget (and in subsequent editions) made many of the same points as the Olympics Housing Roundtable’s soon-to-be-released report. This report, and […]
Read moreRichard Parker of Harvard probes the legacy of John Kenneth Galbraith, perhaps in anticipation of the Progressive Economics Forum’s soon-to-be-inaugurated John Kenneth Galbraith Prize in Economics (at the Canadian Economics Association meetings in Halifax this June). From the Post-Autistic Economics Review: Does John Kenneth Galbraith Have a Legacy? … I think it would behoove all of us today to attend, […]
Read morePublished in The Tyee, as Divided, We’re Falling: Book Review of Dimensions of Inequality in Canada Edited by David A. Green and Jonathan R. Kesselman UBC Press ISBN 0-7748-1208-7 August 2006 http://www.ubcpress.ca/search/title_book.asp?BookID=4518 Review by Marc Lee A poll last Fall by Environics for the Canadian Centre for Policy Alternatives found that three-quarters of Canadians felt that the gap between rich […]
Read moreI shared the podium recently in Sydney with Neal Lawson, who is the chairperson for a very interesting U.K. initiative called Compass.  As far as I can tell, Compass is kind of a cross between a think-tank and an activist network. Its explicit goal has been to challenge the right-wing policies of the New Labour leadership. It functions largely, but […]
Read moreBC’s Economic Development Minister Colin Hansen has been waving around at every opportunity a study by the Conference Board of Canada that allegedly demonstrate the benefits the deal will bring. When the report was finally released to the public this past January, Erin Weir and I were so shocked at how shabby the research was that we wrote a paper […]
Read moreAnother teaser from James Galbraith, who will be joining us at the Canadian Economics Association meetings to inaugurate the John Kenneth Galbraith Prize in Economics, and will also be presenting on a panel on inequality. His presentation might go something like this: Bush’s beltway boom By James K. Galbraith The rise of the Democrats brings some much-needed attention to […]
Read moreSomething rotten in the state of Denmark? Here’s an interesting take on Copenhagen’s recent youth riots. Anarchy in the DK Jakob Illeborg Copenhagen is burning. For four days the downtown area of the Danish capital has looked like a war zone. At least 690 people have been arrested, many of them younger than 18. As I write, Copenhagen is still […]
Read moreAdvantage Canada is the “economic plan” released with November’s Economic and Fiscal Update. In reading through it yesterday, I was struck by its statements about a couple of “free trade” agreements. Trade, Investment and Labour Mobility Agreement (TILMA) Marc and I demonstrate that there are few tangible examples of trade barriers between provinces and no evidence that such barriers entail significant […]
Read moreThe Guardian on Livingstone’s latest for the city of London: Cleaning up the Big Smoke: Livingstone plans to cut carbon emissions by 60% · Londoners given 20-year target to go green · Flights could drastically affect success of campaign David Adam and Hugh Muir Tuesday February 27, 2007 The Guardian A detailed plan to slash London’s carbon emissions by 60% […]
Read moreYesterday, Finance Canada released “Tax Expenditures and Evaluations 2006.” The tax-expenditure figures confirm Andrew’s suggestion that the partial inclusion of capital gains now costs the federal government about $3 billion per year of forgone personal taxes: the 2006 projection is $3.1 billion. This partial inclusion cost an additional $3.4 billion of forgone corporate taxes that year. By comparison, the research-and-development […]
Read moreYesterday, the CCPA released a study on inequality filled with statistics about how life has changed for families with children. John Ibbitson shrugs his shoulders and responds with a polemic. He provides some “balance” by trashing right-wing think tanks, too, but in typical Ibbitson fashion provides not a shred of evidence for anything he says. Here’s the column and some […]
Read moreI hope that enough Liberals and Conservatives will vote for Bill C-257 to pass it on March 21. However, Stephan Dion and his labour critic have announced that they will not support it because the Speaker ruled their essential-service amendments inadmissable. The Canada Labour Code already protects essential services during labour disputes. Workers in federally regulated industries are permitted to […]
Read moreAdam Frucci at Gizmodo has it out for the Recording Industry Association of America, the good folks who like to sue teenagers and students in order to protect their lucrative oligopoly. This nonsense may soon be coming to Canada if changes to the Copyright under contemplation in Ottawa win the day (introduced initially by the Liberals but also supported by […]
Read moreThere is an astonishingly large underclass in the world’s richest nation: Gov’t estimates 754,000 homeless people By STEPHEN OHLEMACHER, Associated Press The nation has three-quarters of a million homeless people, filling emergency shelters through the year and spilling into special seasonal shelters in the coldest months, the government said Wednesday. The Department of Housing and Urban Development estimated there were […]
Read morehttp://www.canadianlabour.ca/index.php/briefs_to_parliament/1096 The Canadian Labour Congress today submitted to the Parliamentary Committee looking at Bill C-30, the Clean Air Act which deals with greenhouse gas emissions. Our brief sets out a broad labour perspective on climate change issues – focusing on the need for a planned transition to a more environmentally sustainable economy. Labour supports sticking with Kyoto, deeper emissions reduction […]
Read moreThis story in the Star points at (another) re-announcement of the Working Income Tax Benefit (WITB), a Canadian version of the US Earned Income Tax Credit first announced by then-finance minister Ralph Goodale in his economic and fiscal update prior to the last election. In the 2006 federal budget, the Tories announced they were continuing with the WITB, due to […]
Read moreThe CCPA released a study today, part of a mega-project on inequality in Canada, looking at changes in income and work hours for Canadian families with children. The report, by Armine Yalnizyan, finds that the top 10% are pulling away. While the report looks at distribution by deciles, it would be interesting to pull a Saez and Veall, to see […]
Read moreThis piece in the New York Times by economist Austan Goolsbee is a nice antidote to the puff piece, My Dinner with Conrad, that appeared on the cover and a full page in the main section of today’s Globe and Mail. In that piece, the author lowers the standards of journalism even further by submitting as evidence her dinner with […]
Read moreThe following is intended to be a complete and accessible list of papers, but not articles, on TILMA. If I have missed anything, please link to it in a “comment.” Criticism of TILMA Gerlach, Loretta. Examining the Implications of TILMA for Saskatchewan. Regina: Canadian Centre for Policy Alternatives, 2006. Gould, Ellen. Asking for Trouble: The Trade, Investment and Labour Mobility […]
Read morehttp://business.guardian.co.uk/comment/story/0,,2023410,00.html The current panic on the world’s markets is indicative of more than just the madness of crowds, writes Larry Elliott Wednesday February 28, 2007 Guardian Unlimited Predictably, the crash in global share prices is being shrugged off as a mere blip. The fact that Shanghai fell by 9% in a day and Wall Street had its biggest one-day fall […]
Read moreI just received my 2006 issue of Society at a Glance: OECD Social Indicators. (Best seen in living colour!) The OECD now regularly reports systematic national indicators of earnings inequality (Table EQ2.1). I have made wide use in the past of data for the mid to late 1990s circulated in the OECD Employment Outlook, which are now dated. The new […]
Read morehttp://research.cibcwm.com/economic_public/download/srpt_rrsp_022007.pdf An interesting piece on retirement savings from CIBC. It highlights the huge increase in unused RRSP contribution room in recent years, and the widening contribution gap between higher and lower income Canadians. As of 2005, the median total asset value of RRSPs held by pre retirement persons aged 55-65 was just $60,000 – hardly enough to secure a decent […]
Read morehttp://www.statcan.ca/Daily/English/070223/d070223a.htm Philip Cross of Statscan has writen an interesting analysis of our very weak labour productivity performance in 2006. Output per hour growth has been very slow – a result of weak output growth combined with fairly strong job growth. The key factor highlighted here is declining productivity in the mining sector as production shifts to less accessible resources, and […]
Read moreIn setting monetary policy, the Bank of Canada emphasizes “Core CPI,” which excludes the most volatile components of the Consumer Price Index to provide a clearer measure of underlying trends. My last post noted that average Canadian wage increases exceeded inflation by only 1% during the past year. However, inflation was held down by a dip in energy prices. Therefore, […]
Read morehttp://papers.nber.org/papers/W12910 An instructive – and admittedly interesting – example of the proclivity of economists to reduce almost everything to rationalist explanations. Attack Assignments in Terror Organizations and The Productivity of Suicide Bombers Efraim Benmelech, Claude Berrebi NBER Working Paper No. 12910 Issued in February 2007 NBER Program(s):Â Â Â LS Â Â Â POL This paper studies the relation between human capital of suicide bombers […]
Read moreThe CAW has merged with about 35 smaller unions since we were formed in 1985. That doesn’t stop me, however, from questioning the economic usefulness of Canadian corporate mergers. M&A activity last year reached an incredible $270 billion. That’s 20 percent of our GDP. And what good actually comes from it? At best, the M&A boom is a sideshow. At […]
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