As a supplement to the excellent (and more timely!) posts from Andrew and Erin this morning, let me add a few points on the most striking feature of today’s Labour Force Survey: namely, the accelerating decline in labour force participation. The part rate (seasonally adjusted) fell to 66.5% of the working age population (remember, Stats Can defines working age broadly […]
Read moreStatistics Canada reported this morning that 38,000 people gave up looking for work in February. The official unemployment rate fell because these Canadians were no longer counted as being unemployed. However, this huge withdrawal from the labour force is a sign of weakness in the job market. Nationally, 25,000 of the 38,000 who dropped out were younger than 25. The […]
Read moreToday’s job numbers underscore the need for a federal Budget to create jobs rather than destroy jobs. The overall picture since September of last year has been one of job losses, a decline in the quality of jobs, and falling real wages. The recovery in the job market has stalled and gone into reverse. The national unemployment rate fell from […]
Read morePRPPs – or what I prefer to call Mr. Flaherty’s Inferior Pension Plan or FLIP- are a poor alternative to the option of expanding the Canada Pension Plan. Unlike the CPP, PRPPs will not provide a defined pension benefit in retirement; there is no required employer contribution; there is no inflation indexing; costs will be much higher than the CPP, […]
Read moreLast weekend I participated in a labour law conference at the University of Western Ontario, speaking on a panel which was asked to speak on the impact of trade and investment on labour rights. I weighed in somewhere between my co panelists Kevin Banks and Marley Weiss, arguing that there are very strong downward pressures on the power of unions […]
Read moreDean Baker has weighed in on the weird idea that Iceland might adopt the Canadian dollar. It is their decision to make, but I also don’t see much to recommend it.
Read moreThe Progressive Economics Forum (PEF) is proud to announce that Mike McCracken, Chair and CEO of Informetrica Ltd. in Ottawa, has won the 3rd biennial Galbraith Prize for a lifetime contribution to economics and social justice in Canada. Congratulations, Mike! Mike co-founded Informetrica in 1972, after working at the Economic Council of Canada, where he helped build the Council’s CANDIDE […]
Read moreThe following note also appears on Business Insider. I owe Paul Tulloch a hat tip for reminding me of these issues in a good comment on my last post. When Ontario’s Premier recently complained that Canada’s petro-dollar undermines manufacturing exports, many economists tripped over each other to counter that a strong loonie benefits all Canadians through cheaper imports. In theory, […]
Read moreIn response to Ontario Premier Dalton McGuinty’s complaint about oil and the exchange rate, several (conservative) commentators argued that this “Dutch disease†is not what ails Ontario manufacturing. Andrew Coyne took a different tack yesterday, agreeing that petroleum development drives up the exchange rate to the detriment of manufacturing and hence Ontario’s economy, but concluding that nothing can or should […]
Read moreLast Monday, BC teachers held a Day of Action in communities across the province to protest the BC government’s decision to legislate a contract and put an end to their collective bargaining process. I was invited to speak to teachers at the Surrey rally, where I had the opportunity to share some of my analysis of the BC Budget (which […]
Read moreThe revelations over how the federal Tories used a robo-calling firm (or firms) to contact voters in possibly 30 or more ridings during last year’s election – misleading them about where polling stations were located – is just another example of the Harper government’s undemocratic tactics. This is on top of their new on-line surveillance bill that would allow police […]
Read moreThe Month: Christmas Gift Canada’s economy was buoyed by Christmas cheer as a December bounce more than offset slight declines in October and November to turn the fourth quarter positive. Unfortunately, one month does not make a trend. The key question is whether December’s strength continued into the New Year or whether economic activity reverted to the malaise evident in […]
Read moreThe information for this year’s student essay contest is now available. Please note the submission deadline of May 7. UPDATE (March 15): Please put up this poster to promote the contest.
Read moreThe following commentary also appears on The Globe and Mail’s Global Exchange blog: What Obama’s Corporate Tax Proposal Means for Canada Last week, there was much consternation in Canada’s business press that some modest reversals of provincial corporate tax cuts and President Obama’s proposed corporate tax changes could erode our competitiveness. Canadians should maintain a healthy skepticism about possible U.S. […]
Read moreCarleton University’s Ted Jackson teaches a graduate seminar course on post-secondary education in Carleton’s School of Public Policy and Administration. Earlier this month, I was invited to give a guest presentation to Professor Jackson’s class. I focused the presentation on affordability challenges faced by students wanting to pursue post-secondary education. My slide presentation can be found here.
Read moreThe Drummond report claims that Ontario is headed for a $30-billion deficit. This figure has been widely and uncritically reported. For example, The Globe and Mail printed four articles featuring this number in its February 18 edition. The Ontario government projected a balanced budget with a $1-billion contingency reserve by 2017-18. To instead project a deficit of $30.2 billion, Drummond […]
Read moreSo recent is the word “globalization” that, if you consult the revised 1978 edition of The New Political Dictionary: The Definitive Guide to the New Language of Politics by the eminent neo-conservative writer William Safire, you will not find it. Instead you will find “Globaloney,” a term used in the early 1940s to riducule the progressive foreign policy proposals of […]
Read more(This guest blog was written by Mike Marin and Anouk Dey. It originally appeared in the Toronto Star on February 24. The authors are part of a team that produced the report Prospering Together (in English http://bit.ly/z4GQx5Â and in French http://bit.ly/yabiK2) What do the Occupy Movement and Canadian software giant OpenText have in common? Most people, including the campers and […]
Read moreTake a look at the picture below. Take it in. Now scan your eyes to the far right…there, in faded blue you’ll see the initials MMT. Now zoom out. Take it in again. Notice: a few hundred people. Spending their time learning about an economic theory called Modern Monetary Theory or MMT and its application to the European debacle. Now […]
Read moreHere’s an excellent piece by Sam Boshra, about the recent proposal by Michael Smart and Jack Mintz to apply the GST to food, from Sam’s blog at Economic Justice: Low-income households can’t buy food today with a larger HST rebate they hope to get sometime in the future.  A key objective of the social safety net, welfare, disability, unemployment, child tax, […]
Read moreThis 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 […]
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