Yesterday, Mike Moffatt took to The Globe and Mail’s “Economy Lab†in response to my suggestion that the Bank of Canada should moderate the exchange rate. (Perhaps his motive for encouraging me to seek the Saskatchewan NDP leadership was to get me as far as possible from the levers of monetary policy.) 🙂 My rebuttal of Mike’s rebuttal appears in […]
Read moreI had the following comments in yesterday’s front-page story on Vale’s decision to postpone its proposed $3-billion potash mine at Kronau, Saskatchewan: Regina economist Erin Weir, who is widely expected to run for the leadership of the provincial NDP, said in a statement Friday that the Vale announcement “represents a failure of the Saskatchewan government’s approach of almost giving away […]
Read moreLast May federal Finance Minister Jim Flaherty said there was no such thing as a bad job. The Law Commission of Ontario may disagree. This week it put out a report about the rise in vulnerable workers and precarious jobs. Now that he’s heard from executives who think Canadians are paid too much, Mr. Flaherty should consider the other side […]
Read moreStatistics Canada reported today that, for a third consecutive month, consumer prices declined and the inflation rate fell below 2%. In July, the inflation rate was 1.3% and the Bank of Canada’s core rate was 1.7%. Gasoline and natural gas prices, which have been lower this summer than last, dragged down the overall Consumer Price Index. However, there is little […]
Read moreA growing share of Canada’s investment overseas is being channeled by Canadian banks into tax havens. The latest Statistics Canada figures show 24% of Canadian direct investment overseas in 2011 went to the top twelve tax havens, up from 10% in 1987.  In fact, tax havens of the Barbados, Cayman Islands, Ireland, Luxembourg and Bermuda were five of the top eight […]
Read moreTom Palley has published a new book – The Economic Crisis: Notes from the Underground. I recommend it unread, having learned a lot from his excellent recent book, From Financial Crisis to Stagnation. The back cover description follows. The book can be ordered – for just $9.99 – from https://www.createspace.com/3820028 This book provides a collection of short essays detailing the […]
Read moreBill Curry reports in today’s Globe that, at last year’s economic policy retreat, business leaders urged Finance Minister Flaherty to reduce the pay of “overpriced” Canadian workers, including through anti union right to work legislation. Coincidentally, or not, the subsequent 2012 federal Budget introduced new rules which will require most EI claimants to accept jobs at much lower wages, and […]
Read moreSaskatchewan’s Ministry of Energy and Resources has released its 2011-12 Annual Report. The potash table (page 36) incredibly shows “Royalty/Tax†revenue of only $62.5 million in 2010-11 and $38.4 million in 2011-12. These figures amount to just 1.2% and 0.6% respectively of the value of potash sales. I have long argued that Saskatchewan’s potash royalties are too low, but they […]
Read moreA new report by the Canadian Medical Association provides a timely reminder that money buys better health, even in a country with a universal public healthcare system. A poll commissioned by the CMA found a large and increasing gap between the health status of Canadians in lower income groups (household income less than $30,000) and their wealthier counterparts (household income […]
Read moreSaskatchewan newspapers report: “Certainly in professional, scientific and technical areas and in the mining and the manufacturing sector (the job numbers) are very strong,†Don Morgan, minister of advanced education and labour relations, told reporters at news conference Friday. On Friday, Statistics Canada reported that Saskatchewan manufacturing employment dropped by 900 last month and declined by 600 over the past […]
Read moreFurther to Angella’s post, after two months of treading water, Canada lost 30,000 jobs in July. The increase in unemployment was limited to 22,000 only because 8,000 people abandoned the labour force and are no longer counted as unemployed. Regional Breakdown Most of the job losses were in Quebec and BC, which could weaken those provincial governments as they head […]
Read moreStatistics Canada’s monthly job numbers are out, and it doesn’t look great. Â After big jumps in March and April, there was little change in May and June. Â In July, total employment fell by 30,000, mostly due to a fall in the numbers of women part-time workers over 55. Â The unemployment rate rose to 7.3%. Employment losses were spread among manufacturing […]
Read moreOntario Conservative Leader Tim Hudak claims that union busting right to work laws would create jobs in hard hit industrial Ontario. I have already noted that there is no evidence that Right to Work states in the US do better than other US states in terms of attracting and retaining manufacturing jobs. A glance closer to home also suggests that […]
Read moreThe federal government released an updated Canada’s Emission Trends 2012 report today. In a remarkable shift in federal rhetoric just this past week, the Harperites now appear to be more sensitive to concerns about the Enbridge pipeline and climate change more generally. But appearances can be deceiving and there is good reason to believe the current charm offensive is just a […]
Read moreOntario Conservative leader Tim Hudak claims that passage of an anti union “right to work” (RTW) law (making mandatory union dues illegal) would create jobs, especially in hard-hit manufacturing. With companies like Caterpillar moving to get ever cheaper labour, it seems semi plausible that anti union laws might attract footloose new investment , albeit at the expense of workers. US […]
Read moreThe following is a guest post by the Alberta Federation of Labour’s Tony Clark: A labour shortage occurs when the demand for labour exceeds the supply of labour, right? Well, apparently not in Alberta. The Alberta Federation of Labour took a long hard look at the Government of Alberta’s projections showing an astronomical labour shortage of 114,000 workers by 2021 and […]
Read moreAgrium reports that it paid half as much to the people of Saskatchewan in the second quarter as it had in the same quarter of last year. The company’s quarterly “potash profit and capital tax†payment dropped to $8 million from $15 million a year ago. Agrium’s only potash mine is in Saskatchewan. The value of its potash sales has […]
Read more“Making a speech on economics is a lot like pissing down your leg. It may seem hot to you,but it never does to anyone else.” Cited in Robert A. Caro, Master of the Senate: The Years of Lyndon Johnson (2012)
Read moreThe latest issue of the Canadian Tax Journal has a number of articles on Tax-Free Savings Accounts. Among the papers of interest: Kevin Milligan projects the potential tax impact of accumulated TFSA contribution room by estimating what a mature TFSA would have meant for income taxation in 2005. Even short of doubling the contribution limit to $10,000, Milligan finds a […]
Read moreAs we know, Dutch disease is about damage to industry from resource exports. As we witness the widespread drought this summer in North America and the damage to crops, Dutch disease needs to be redefined to also include the damage to agriculture. The Canadian West eats its own as it produces oil.
Read moreThe China National Offshore Oil Corporation’s (CNOOC) bid to acquire Nexen is a large and complex proposal. Canadians should call for a more thorough and transparent review than other foreign takeovers have received under the Investment Canada Act. A preliminary outline of possible costs and benefits follows. The Downside: Chinese Consumer Interests A company like Nexen aims to sell oil […]
Read moreToday’s Consumer Price Index provides further evidence of Saskatchewan’s rising cost of living. Among the provinces, Saskatchewan is tied for the second-highest annual inflation rate: 2.0%. Consumer prices decreased in June from May in nine provinces (all except Alberta). But Saskatchewan was tied for the smallest monthly price decline: -0.3%. Compared to the rest of Canada, Saskatchewan residents experienced nearly […]
Read moreIt’s been an unusually hot summer, and soaring temperatures have boosted sales of that quintessential summer food, ice cream. But Baskin-Robbins has decided to shut its production facility in Peterborough, Ont., and lay off 80 workers because of…wait for it… increased demand! From the department of “wait, what?”, here’s the scoop behind this brain-freeze-inducing decision. Baskin-Robbins, home of 31 flavours […]
Read moreThe just-released OECD Employment Outlook – full text not available on line – has an interesting chapter on the sharp decline of labour’s share of national income in virtually all OECD countries over the past 30 years, and especially the last twenty years. The median labour share in the OECD fell from 66.1% in the early 1990s to 61.7% in […]
Read moreToday, Statistics Canada reported that 3,400 more Canadians received Employment Insurance (EI) benefits in May. It previously reported that unemployment rose by 8,000 that month. In other words, even more workers are now unemployed without EI benefits. In total, just 37% of unemployed Canadians received benefits in May (i.e. 512,600 out of 1,378,600). This proportion was as low as 26% […]
Read moreToday’s Mosaic quarterly report provides further evidence that the Government of Saskatchewan should improve its royalty and tax structure to collect a better return on the province’s non-renewable resources like potash. Quarterly Comparison Despite higher potash prices, Mosaic paid lower royalties and resource taxes to Saskatchewan last quarter than in the same quarter of last year. In the three months […]
Read moreAt yesterday’s Saskatchewan Roughrider game, Premier Wall announced provincial funding for a new stadium: an $80-million grant and a $100-million loan to be repaid over time through a surcharge on tickets. While it’s unclear why a stadium should be anywhere near the top of the priority list, a readiness to invest in public infrastructure is positive. The province could generate […]
Read moreWith all the predictions of doom and gloom coming from the austerity camp, one would think that Canada was already about to hit the famed (but never seen) “debt wall.” Before we get too carried away, however, with the scary debt stuff, consider these two indicators of the fundamental fiscal fragility/stability of Canadian governments. The first figure shows the net financial […]
Read moreAs a follow-up to my last post, where I showed R7 – the unemployment rate that includes involuntary part-time, I was curious what the longer term trend was regarding youth and part-time employment. As you can see in the graph below, the proportion of 20-24 year olds engaged in full-time work has steadily fallen since 1980, accelerated during recessions.  This is […]
Read moreLast week, Conservative MP Randy Hoback had another letter in The Prince Albert Daily Herald blaming the NDP for the pulp-mill closure in 2006. He still has not addressed my main point about resource royalties. I have the following response on page 4 of today’s Herald: Pulp mill saga proves Mulcair’s point Notwithstanding MP Randy Hoback’s repeated use of the […]
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