A lot of debate in the US on Obama’s excellent proposal to hike the minimum wage. John Schmitt of CEPR has put out an excellent paper summarizing all of the research to show that the employment effects of reasonable increases are … Zero, zilch .. Due to various adjustment mechanisms including lower turnover, higher productivity and wage compression. He also […]
Read moreIn a guest post at the Broadbent Institute, I flesh out some of the impacts of EI changes with three (fairly typical) hypothetical stories of unemployed Canadians. There are certainly more extreme consequences felt by some already. Â At least these folks have access to the Board of Referees. Many fear that access to natural justice will be threatened as we […]
Read moreA background study for the latest IMF report on Canada (see pages 42 to 51) adds further weight to the argument that the rise in the exchange rate of the Canadian dollar, driven in large part by high commodity prices, has underpinned a sharp decline in the US market share of Canadian manufacturers since 2000 and a major shift in […]
Read moreA new CCPA (National) report by Marc Lee and myself argues that Canada’s tax system needs a fairness overhaul and presents a framework for progressive tax reform. Those of you who have been following our tax work so far will find this study a great complement to the BC Tax Options Paper. Tax policy is an important lever for governments […]
Read moreThe glaring contrast between employment numbers, and the unemployment rate, was highlighted by today’s labour force numbers from Statistics Canada (capably dissected elsewhere on this blog by Angella MacEwan). Paid employment (ie. employees) declined by 46,000. Total employment (including self-employment) fell by 22,000. Yet the unemployment rate fell to 7% — its lowest level since late 2008. Fewer people were […]
Read moreAfter five months of  job gains, the job market turned dismal in January. Officially, the unemployment rate fell from 7.1% to 7.0%, the lowest it’s been since December 2008. This is despite a loss of 45,800 jobs (not counting self-employment). The explanation is an out flux of discouraged workers from the labour market, which caused the ‘real’ unemployment rate (R8) to jump […]
Read moreFurther to Toby’s comments, Miles Corak has posted an excellent commentary on the new numbers on high incomes, together with a spread sheet showing average effective tax rates by income group from the 1980s. The big story is that the average effective tax rate for the very affluent has been stable since the early 1980s as their income share has […]
Read moreStatistics Canada’s release on the escalating incomes of the top 1 per cent gained a lot of media coverage — and also provoked some very defensive reactions by major organs of the Canadian media. This included an almost rabid column by Financial Post editor Terence Corcoran accusing Statistics Canada of engaging in class warfare and, in a McCarthyite manner, personally attacking […]
Read moreOne hundred and fifty years ago Americans were fighting a most bloody civil war. There were serious persons then and now that blamed the war on Eli Whitney for his invention of the cotton gin in 1794. While Whitney’s gin directly reduced the demand for slaves to separate cotton fibre from the seeds, it broke a bottleneck in the production […]
Read moreAlbert Hirschman died in December of last year at the grand old age of 97. I never had the pleasure of meeting him but I was an avid reader of his writings and much influenced by them. In the 1950s and 1960s, as the field of economic development emerged within economics, there was a debate between the advocates of balanced […]
Read moreI have a commentary posted on the Broadbent Institute web site, arguing that inequality of wealth fundamentally undermines the argument that market rewards are “fair.” http://www.broadbentinstitute.ca/en/blog/andrew-jackson-distribution-wealth-implications-neo-liberal-justification-economic-inequality
Read moreThe Bank of Canada released their January 2013 Monetary Policy Report. Â Of note, the Bank downgraded its growth expectation for 2013 to 2.0% from 2.3%, and expects the Canadian economy will not reach full potential until late 2014. Several key points in the January MPR reinforce what progressive economists have been saying about the Canadian labour market. Since 2010, more […]
Read moreI got way off my usual research agenda this morning for a business panel on CBC radio. The topic was the economics of casinos, the result of the City of Surrey voting down a new casino proposal. I have often disparagingly compared stock markets to casinos, but in fact I knew relatively little about the actual business of casinos. I […]
Read moreWe knew that the takeover of Nexen by CNOOC was big but I at least didn’t realize how big it was till I saw the Wall Street Journal’s list (Jan.2, 2013) of the 25 biggest M&A deals world-wide in 2012 where it ranked 5th and was the largest deal made by a Chinese company. Canada made the list one more […]
Read moreA special event was held at the Vancouver & District Labour Council last week to commemorate the history and contributions of the Trade Union Research Bureau.
Read moreThis is a guest blog post written by Whitehorse-based economist, Luigi Zanasi. Please feel free to comment. Also, please note that this was written before Marc’s blog post of Jan. 14 re: BC’s carbon tax. — Towards a fair cap & trade system for GHG emissions In the last two federal elections, the NDP quite rightly rejected the idea of […]
Read moreHere is my Economy Lab piece on the study by Philip Cross released yesterday. On close examination, his “expanding sectors” turn out to be low value-added resource processing and his argument that Canadian manufacturing is not in decline does not hold water. The decline in output has been far greater than in the US and productivity growth much slower. Looks […]
Read moreTestimony to the Joint Review Panel on the Enbridge Northern Gateway Project By Marc Lee, Canadian Centre for Policy Alternatives January 16, 2013 My name is Marc Lee, and I have served as an economist for the Canadian Centre for Policy Alternatives for more than 14 years. Most recently I have been Senior Economist and the Co-Director of the Climate […]
Read moreIt has been a week and a half since changes to the definition of suitable employment and reasonable job search have come into effect.  Already, a single mom in Prince Edward Island, Marlene Giersdorf,  has become a symbol of the hardship these changes are likely to have on many Canadians in the coming months. When she refused to expand her job […]
Read moreThis is a little old, but it was brought to my attention late and it seems to be of durable relevance. Last month, the New York Times (NYT) published an article chronicling public giveaways to corporations in the United States. What is extraordinary is that the article is the result of ten months – 10 months! – of investigative journalism […]
Read moreAn oped of mine was published by the Vancouver Sun today: What’s next for BC’s carbon tax? Marc Lee Climate change forced its way onto the political agenda in 2012, as Hurricane Sandy ripped through the northeast United Stages just days before the election. And while action remains frustratingly slow, extreme weather disasters in the billions of dollars are making […]
Read moreSeveral key changes to Employment Insurance came into effect on Sunday. Â The EI program is about to get Grinch-ier, especially for who happen to have needed it more than once. What Changed Some of the changes made are reasonable, some are technical, and some are misguided. Â Together, these changes go some way toward redefining what employment insurance is all about, […]
Read moreThe Board of Directors of the Bank of Canada have retained Odgers Berndtson to seek a new Governor, and have placed an ad in the Globe and Mail, the Economist and La Presse. The wording of the advertisement is questionable. First, it states that “the Bank of Canada is the pre-eminent macro-economic institution in Canada.†Really? The Bank of Canada […]
Read moreHere are, in no particular order, my picks for the four best books of 2012 from a progressive economics perspective. Leo Panitch and Sam Gindin. The Making of Global Capitalism: The Political Economy of American Empire. (Verso). I suspect this book will become a classic. It is a rich and highly detailed account of how states, and above all the […]
Read moreThis article was published in an abridged form today in the National Post. http://fullcomment.nationalpost.com/2012/12/21/armine-yalnizyan-sorry-andrew-coyne-but-income-inequality-is-a-real-problem/  I like this opening better so I posted it here. You couldn’t have made it through 2012 without running into a story about income inequality.  Chances are, it made you think about how you fit into the story. That’s “entirely constructive”, as Bank of Canada Governor […]
Read moreThe Ontario Nurses Association has been publishing some awesome economic analysis over the last couple of years, highlighting the talents of their new economist & PEF member Salimah Valiani. Apart from a strong analytical & quantitative approach, ONA’s recent research has been very refreshing in the emphasis it has placed on gender analysis and the unique features of caring labour. […]
Read moreI had a good old-fashioned knock-em-down drag-em-out debate with Ian Lee from Carleton University on CBC’s Power & Politics yesterday re C377. http://www.cbc.ca/player/News/Politics/ID/2318279928/ There were a number of “zingers†from Prof. Lee that are worth considering: • He said “hundreds of thousands†of Ontarians have their salaries listed on the government’s sunshine list (reporting salaries of those who earn over […]
Read moreThis  is a guest post by Paul Tulloch on the deterioration of Employment Insurance coverage, also responding Statscan’s release of EI figures for October 2012. The painful toll that job loss and unemployment can unleash on Canadian families has traditionally been managed with Canada’s once quite functional Employment Insurance (EI) program. However, today’s Statistics Canada’s EI report for October, confirms that […]
Read moreBREAKING NEWS: Women are paid less than men across OECD (read: rich) countries. OK, it’s not breaking news. Â Not even close. Â In Canada the ‘Female to Male earnings ratio’ has hovered around the 70% mark for the past 20 years. Â And for women with university degrees, the ratio peaked in the early 1990’s, and has been below 70% for 13 […]
Read moreLetter to the Editor Ottawa Citizen, December 18  Andrew Coyne (December 14) leaps on a study by TD Economics to claim that “income inequality in Canada has remained more or less flat since the mid 1990s†and that the big surge in the rising income share of the top 1% took place before 1998.  As Coyne himself says, “the reigning […]
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