This may come as a bit of a shock to Andrew Coyne and Jim Flaherty, but even the IMF are warning in their most recent fiscal policy update that austerity in the advanced economies is going too far, and will dampen growth. Indeed, they even suggest that too much austerity may spook the dreaded bond markets. “Further declines in cyclically […]
Read moreKrugman hardly needs me to leap to his defence against Canadian economic flat earthers like Andrew Coyne, but here goes. Coyne’s latest column argues that there is a recovery underway in the US which owes nothing to Keynesian stimulus. Accordingly, “we can add America post-2008 to the long list of failed experiments in Keynesian demand management.” He charges Krugman with […]
Read moreThe Harvard International Review has posted an interview with Don Drummond. I have posted the following response: It is good Drummond confesses that his free-market policy prescriptions failed to improve productivity, but old habits apparently die hard: “We have an Employment Insurance scheme that basically dissuades people from going where the jobs are. We still have interprovincial trade barriers.†The […]
Read moreAn interesting nugget in last week’s Drummond report is Table 11.1, an updated version of Table 2 from “Ontario’s Tax Plan for Jobs and Growth†(2009). It provides a sectoral breakdown of the McGuinty government’s recent business tax breaks: HST input tax credits, cutting the corporate income tax, and eliminating the corporate capital tax. The combined annual cost of these […]
Read moreJohn Stapleton has an opinion piece out on Prime Minister Harper’s proposed changes to Old Age Security (OAS)Â and the Guaranteed Income Supplement (GIS). I find the following quote from Stapleton to be particularly troubling: By providing OAS and GIS at age 65, Canada has greatly reduced the incidence of poverty among seniors. By moving the age of eligibility for OAS […]
Read moreThe United Steelworkers’ union made the following submission to the Government of Canada earlier this week: The United Steelworkers union welcomes the opportunity to comment on Canada’s proposed entry into the Trans-Pacific Partnership (TPP) free trade negotiations. Our union represents 200,000 Canadian workers, employed in every sector of the economy. While our traditional membership base has been in mining and […]
Read moreOn January 5th, 2012, the American Economics Association adopted new guidelines for the disclosure of potential conflicts of interests by economists. Please find my disclosure information below (thanks to Andrew Leach for turning the AEA guidelines into a template, which I have used as the basis for my own). Employment: I have been employed with the Canadian Centre for Policy Alternatives as […]
Read moreStatistics Canada reported today that the number of Canadians receiving Employment Insurance rose by 4,230 in December, a month in which unemployment rose by 6,100. The proportion of unemployed workers receiving benefits remained below 39% (i.e. 544,720 beneficiaries out of 1.4 million unemployed). Although December saw relatively little change in these totals, it capped off a year in which Canada’s […]
Read moreStatistics Canada reported today that consumer prices jumped in January (by 0.4% or 0.5% seasonally-adjusted), offsetting the drop in December. As a result, the annual inflation rate is now 2.5% and the Bank of Canada’s core inflation rate is 2.1%. Monetary Policy Both measures are well within the central bank’s target range, which should allow it to keep interest rates […]
Read moreWith unemployment high and rising, job creation should surely be on the agenda. The Government of Canada has a program called Job Creation Partnerships, funded under Employment Insurance. It supports projects which “provide insured participants with opportunities to gain work experience that will lead to ongoing employment. Activities of the project help develop the community and the local economy.” (2010 […]
Read moreStatistics Canada is sometimes unfairly blamed for decisions made pursuant to budget cuts and to political direction, most notably in the decision to replace the long form Census with a much less reliable Household Survey. But the agency deserves tremendous credit for the decision, implemented just a couple of weeks ago, to provide universal free access to the cornucopia of […]
Read moreThe Drummond Commission reported today. The Good While the McGuinty government prevented the Commission from considering tax rates, it proposes some sensible measures to raise revenue. Chapter 18, “Revenue Integrity,†recommends combating corporate tax avoidance and cracking down on the underground economy. Businesses sometimes hire workers as “contractors†to avoid paying Ontario’s Employer Health Tax. Drummond advises the province to […]
Read moreThe Ontario government’s long awaited and much discussed report of the Commission on the Reform of Ontario’s Public Services (aka, the Drummond report) was finally publicly released this afternoon. As was rumoured, the report says Ontario would need to increase program spending by no more than 0.8% per year for the government to reach balance by 2017/18.  Drummond has adopted […]
Read moreAn excellent commentary from Andrew Watt.
Read moreIf the National Post’s John Ivison wanted to agitate this blog’s authors, he could not have done much better than last week’s commentary on the census numbers. It was printed on the front page under the headline “Jobs in the West, jobless in the East; EI impeding labour mobility.†To paint a picture of eastern Canadians loafing around on Employment […]
Read moreA shorter version of this article appears today at Economy Lab, the Globe and Mail’s on-line business feature. Capitalism has entered an ugly new era, one that may work well for the shareholders of world, but not for the rest of us. I couldn’t help but notice that, on the very same day Caterpillar shuttered the doors of its London, […]
Read moreThe Prime Minister’s trip to China last week sparked a flurry of media coverage regarding prospects for “closer” economic ties between Canada and China. Some even speculated that another free trade agreement is in the works (as soon as the Harper government inks its planned deals, of course, with the EU, India, Korea, and the TPP!). The pandas are cute, […]
Read moreWhat is this thing called “globalization?” To be absolutely precise, it’s the word that took over discourse about the global economy and pretty much everything else for what seemed like an eternity but, in fact, labelled a phenomenon that lasted only for a single decade, that of the 1990s, from the end of the Cold War to 9/11. It’s the […]
Read moreThe top story in the Globe and Mail today reports on something I warned about a year ago: Statistics Canada is making changes to the way it calculates the Consumer Price Index. At that time, I suspected changes to calculations of the CPI would be introduced as part of the renewal of the inflation target with the Bank of Canada, […]
Read morePricewaterhouseCoopers’ biennial guide to Canadian mining taxation, Digging Deeper, features a comparative summary of royalties, mining taxes and corporate taxes for a hypothetical gold mine. This approach differs from the table I posted yesterday, which displayed royalty and mining tax revenue as a share of the minerals actually extracted from different provinces and territories in 2010. However, the conclusion is the same: […]
Read moreEmpires vary: of conquest, of settlement, of trade; contiguous and maritime. Empires abound: a long list, longer even than many books on empire admit to. Wikipedia lists over 200 empires from the Akkadian Empire of Sargon the Great in the 24th century BCE to today’s American Empire. In terms of territory the largest are the Achaemenid, the Han and the […]
Read moreThere’s been some good public debate about the need for changes to the Investment Canada process in light of Caterpillar’s incredible actions in London. They showed up uninvited in 2010, took over a long-standing productive profitable plant, demanded money (from workers and government alike), then left — leaving behind a shuttered plant and a shattered community. Clearly something needs to […]
Read moreThis table displays the mining taxes and royalties paid for minerals – including coal, but excluding oil and gas – to Canada’s major mining jurisdictions in 2010. The ideal would be to compare these charges with economic rent, which varies by mine and is difficult to calculate. However, even a simple comparison to overall production values suggests that provincial governments are collecting […]
Read moreA bi-annual vehicle emissions test got me thinking about my personal carbon footprint. A lot broad-brush numbers and calculators exist out there to calculate one’s footprint, but I’ve never found them to be very reliable because they have to generalize across a very heterogeneous population in terms of location, type of dwelling and size, family size, and fuel sources. For […]
Read moreWith the spotlight on the federal government’s aggressive push to export tar sands bitumen via the Enbridge Northern Gateway Pipeline to Kitimat, and from there by tanker on to China, the BC government reclaimed some attention on the energy file when it released its Natural Gas Strategy last week. With lots of glossy pages, but little detailed content, it is […]
Read moreSigh. Here we go again. More evidence-free corporate policy advocacy. The Chamber of Commerce put out a report today – actually I can’t find much in the way of background research on their web site – which points with alarm to labour and skills shortages, and calls for a less generous EI program to get workers to move to the […]
Read moreHere is an overview of today’s timely Canadian Centre for Policy Alternatives paper on Old Age Security: Old Age Security (OAS) is the basic building block of Canada’s retirement income system. Canadians build on that foundation, saving for their retirement with benefits from the Canada or Quebec Pension Plan, a workplace pension if they’re lucky enough to have one, and […]
Read moreI have an opinion piece out on the City of Ottawa’s universal, student transit pass–also known as “the U-Pass.” Points raised in the op-ed include the following: -U-Pass programs exist for roughly 30 universities and colleges across Canada. -For a U-Pass program to be introduced, students typically must vote in favour of the program in student referenda. -When there is a […]
Read moreOn CTV yesterday, human resources minister Diane Finley said (45 seconds into this interview): “As we go forward, we’re going to have three times the expense in Old Age Security as we do now, but we’re only going to have half the population to pay for it.†That sounds pretty scary. If the total cost triples, with only half as […]
Read moreLast week (Feb. 2nd) I drove up to London, Ontario, to shoot some film footage of the locked-out workers picketing outside the Electro-Motive Diesel plant for a documentary I am working on. The company, the only one to make locomotives in Canada, is owned by Caterpillar Inc., the world’s largest equipment manufacturer. They’d locked out the entire workforce of 450 […]
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