Statistics Canada reported today that inflation collapsed to just 0.4% in April. The Bank of Canada’s core inflation rate, which excludes volatile items, fell to 1.1%. Continued low inflation does not provide a rationale to raise interest rates. Perhaps for that reason, Canadian monetary hawks have shifted their rationale for higher interest rates. In 2011, the C. D. Howe Institute […]
Read moreMy op-ed in today’s Saskatoon StarPhoenix (page A11): Privatizing ISC is a poor deal for Saskatchewan The provincial government estimates that selling 60 per cent of the Information Services Corporation will raise up to $120 million for infrastructure investment. Is that a good deal for the people of Saskatchewan? Last year, ISC generated $20 million of profit for the provincial […]
Read moreThe following is a guest post by Nick Fillmore. National business journalists and columnists have bought into Prime Minister Stephen Harper’s demeaning view that folks in the Atlantic region are backward and have a defeatist attitude. Framed in contemptuous language, they’re promoting untested economic ideas that, if adopted, would seriously damage the economy – and the people – of the […]
Read moreThe real unemployment rate for Canadians over 25 was 8.8% in April. Not great, for sure, but slightly better than it was in 2009. For youth 15-24, it was up from last April – to 20.9% – so more than 1 in 5 youth are looking for work and can’t find it. In Ontario, it’s closer to 1 in 4, and in […]
Read moreThis morning, Statistics Canada reported an apparently decent month of data for April, with a modest increase in employment, all full-time and all in paid positions rather than self-employment. Despite this seemingly good news, the total number of Canadians participating in the labour force edged down. As a result, the participation rate declined to 66.5 per cent in April, matching […]
Read moreThe story of child poverty in Canada is very much an urban story. One out of every 10 children living in urban areas was poor in 2010, compared to one in 20 children living in non-urban areas. Three quarters (or 76%) of all poor children in Canada lived in one of the urban centres shown in the chart below.* Child […]
Read moreSince I was a graduate student in the last millennium, I’ve been fascinated by the role of the cotton textile industry in recent economic history, beginning with that momentous event still being heard around the world, the First Industrial Revolution. It just caught fire in Bengladesh. There are books about cotton as a staple – a relatively recent and a […]
Read moreAs others have noted, last week’s Ontario budget combined modest social investments in areas requested by the NDP with austerity for overall expenditures. Ontario program spending, already the lowest per capita of any province, will be subject to ongoing cuts relative to inflation. This paradox on the expenditure side of the ledger reflects a vacuum on the revenue side. The […]
Read moreAs I discussed in an earlier post, Niall Ferguson, the Harvard historian and author of numerous bad books about economics, is prone to writing and saying completely ignorant things, making one wonder about the intellectual heft of so-called academic “stars” who populate our institutions of higher learning. The latest bit of idiocy uttered by Ferguson was heard last week when […]
Read more1. He’s Number Two: Stephen Poloz was widely acknowledged in economic and political circles as the second-best choice for the top job at the Bank of Canada. So the surprise was not that he was chosen. The surprise was, Why Not Tiff Macklem? Will someone please find out and tell the rest of us? 2. Doctrinaire [or not?] on Inflation […]
Read moreOn April 23, the Fraser Institute released the annual update of their misleading Consumer Tax Index report. The piece is meant to feed the anti-tax sentiment with numbers sprinkled liberally for their shock value instead of providing any meaningful analysis. Here are some of the main flaws with the report’s methodology. If what follows sounds familiar, it’s because I’m drawing […]
Read moreIn his 2007 “Economic Statement,†Jim Flaherty threw down the gauntlet for provincial governments to cut their corporate income tax rates to 10%. Initially, it seemed like he might succeed in stampeding the provinces down to that level. Alberta and Quebec were already at 10% (although Quebec had announced an increase to 12% in exchange for eliminating its corporate capital […]
Read moreAttempts by the Harper Government to set the record straight over recent changes to EI simply gloss over many valid concerns that have been expressed by critics. I share a couple of EI Change Fact-Busters in solidarity with upcoming rallys on EI that will be taking place across Canada this weekend. Minister Finley states: “No one will have to take a […]
Read moreThe IMF’s latest delivery of the World Economic outlook contains an interesting analysis of the current “non” recovery in terms of a divergence between fiscal and monetary policy, the first between restrictive and procyclical in nature and the second being accommodating and reinforcing a financial expansion. As argued here by the IMF economists who worked on this issue, the “great” […]
Read moreBrian Lee Crowley’s latest column shows he’s a glass-half-full kinda guy. We shouldn’t be worried about unemployment because a) it’s old-fashioned, b) Boomers had it worse (and now they’re getting old) c) we’re doing better than the U.S., and d) it’s really only young people and immigrants that are unemployed. This is a relief. So I shouldn’t worry that Statistics Canada […]
Read moreOn Tuesday, Statistics Canada reported that job vacancies have fallen to the lowest level recorded since it began collecting these figures two years ago. On Wednesday, the Bank of Canada projected growth of just 1.5% for this year. On Thursday, Statistics Canada reported that the number of Canadians receiving Employment Insurance (EI) benefits edged down in February. Meanwhile, the Labour Force […]
Read moreThey’ve haunted me. Incessantly. The ghosts of Reinhart and Rogoff. Their research here, there, everywhere. Bank of Canada speeches? Yes. Finance Department talking points? Check. House of Commons debates? Yup. Globe editorials? Ditto. Discussions with fellow progressives? Sadly, yes. Results? Arguments conjured in their name. Reason decapitated. Modern Monetary Theorists (MMT) banished to the netherworld of cranks. But we told […]
Read moreRegulations guiding the new Social Security Tribunal came into force April 1st, 2013, and are available online at the Canada Gazette. Â The SST combines the first and second level of client appeals for CPP, OAS, and EI into one tribunal. HRSDC expects that the changes will result in $25 million in annual savings, due to centralized administration and the magic […]
Read moreHere is my take from today’s Economy Lab in the Globe. To expand a bit on alternatives, my take is that the neo liberal turn at the end of the 1970s was one possible response to the stagflation crisis, which found mainstream Keynesian economics wanting. Left Keynesians such as Kalecki had long recognized that full employment capitalism with strong unions […]
Read moreAn oped based on my and Brock Ellis’ recent report, Canada’s Carbon Liabilities, was published in iPolitics (alas, behind a pay wall): Canada’s economic development model is on a collision course with the urgent need for global climate action. Worldwide, extreme weather events from drought to floods to powerful storms and record-breaking temperatures are making a powerful statement that climate […]
Read moreArmine and I have some comments in today’s Toronto Star article on Temporary Foreign Workers (page B1). Armine has been commenting extensively on this issue and my head talked for a few seconds on last night’s The National. Here is my online Globe and Mail op-ed: Reining In The Temporary Foreign Worker Program Reports of RBC outsourcing jobs to temporary foreign […]
Read moreThe following is based on a talk at the Bring Your Boomers election forum on April 3 at the Rio Theatre in Vancouver, the fourth in a series of intergenerational dialogues from Gen Why Media, and was co-sponsored by the CCPA, Get Your Vote On, LeadNow and Vancity credit union. I was asked to set the stage for a conversation on climate justice between three youth and five politicians […]
Read moreThe headline numbers are bad enough: “employment declined by 55,000 in March, all in full time. The unemployment rate rose 0.2 percentage points to 7.2%.†The underlying numbers are ugly. The employment decline would have been worse but for a large jump in self-reported self-employment. The number of employees with positions paid by an employer actually fell by 93,100 in […]
Read moreOn Monday, Andrew wrote that we need a Bay Street sunshine list. Today, we got something almost as good: a Fraser Institute sunshine list, courtesy of US tax filings and The Ottawa Citizen’s Glen McGregor. This piece is a great counterpoint to the Fraser Institute’s recent attack on public-sector salaries. I hope it is printed in the newspaper as well […]
Read moreLast week’s report from BC’s Auditor General dealt a huge blow to the credibility of carbon offsets and claims that BC had achieved a state of “carbon neutral government.” Coverage of the AG’s report was coloured by accusations from the Pacific Carbon Trust, the Crown corporation created to buy and sell BC offsets, and “experts” from the offset industry that the AG did […]
Read moreLast week’s publication of the so-called “sunshine†list of 88,412 Ontario public sector workers earning more than $100,000 per year elicited lots of howls of outrage in terms of on line commentary. It should not be forgotten that the whole point of the annual list – which dates back to the Harris days – is to yank on the […]
Read more2013 may be your lucky year! The details of this year’s PEF student essay contest are now online. Please note the May 3 deadline and put up this poster to promote the contest.
Read moreFor the 15th consecutive year, the Progressive Economics Forum (PEF) is sponsoring its own events at the Annual Conference of the Canadian Economics Association (CEA). This year’s Annual Conference of the CEA is taking place at HEC Montréal. PEF events will take place in the May 31 – June 2 period. All information pertaining to PEF events can be found […]
Read moreBelow is the summary for our latest Climate Justice Project report, Closing the Loop: Reducing Greenhouse Gas Emissions and Creating Green Jobs through Zero Waste in BC (I recommend checking the much prettier full paper, stand-alone summary, and awesome infographic by Sam Bradd on the website). Closing the Loop was a complex and challenging project that made my head spin, but in the end is one […]
Read moreDivestment from fossil fuels is an idea whose time has come. Sparked by Bill McKibben’s Rolling Stone article last summer, “Global Warming’s Terrifying New Math”, divestment campaigns are now up and running on over 300 university campuses in the US, with 4 early victories already notched. Students in Canada have declared tomorrow (March 27) Fossil Fools Day, a national day of action, with many campuses launching […]
Read more