In the run up to the Seoul Summit, the issue du jour has become “the currency wars.” I certainly side with those who think that the under-valuation of the Chinese currency and its fix to the US dollar at that low level constitutes a huge subsidy to Chinese exports which has played a major role in the creation of large […]
Read moreThis looks like a good contribution from Dean Baker. http://www.cepr.net/documents/publications/austerity-myth-2010-10.pdf
Read moreThere is a new economics blog in town. http://www.3dpolicy.ca It is put together by former Finance Deputy Minister Scott Clark and former Director of Fiscal Policy, Peter Devries. I disagree with their fiscally very cautious line, but this is highly informed commentary on the numbers – with a major piece on the recent Economic and Fiscal Update – so do […]
Read moreThe CCPA today released a paper I wrote (“Big Train Coming” )as a framing piece for the Alternative Federal Budget and the upcoming federal and provincial debate over the turn to austerity at a time of high unemployment. Here is the media release: “Given the fragile economic recovery and the weak job market, now is not the time for a […]
Read moreOver at Economy Lab, Stephen Gordon writes: The fundamental problem facing manufacturing firms is that the [industrial] prices have been growing more slowly than consumer prices. CPI inflation has averaged 1.85 per cent a year since 2002, but the Industrial Price Index for all manufactures has only increased at a rate of 1 per cent. His argument is that Canadian […]
Read moreThe cover of last week’s Economist magazine boasted the headline “Grow, dammit, grow!†above a picture of a bald man looking up at a tiny sprout of hair on his pate. As the Great Recession continues to grind on with no end in sight – with growth remaining anemic and unemployment stubbornly high in North America and Europe – mainstream […]
Read moreLast month, I blogged about “pathway colleges,” which are private companies that have been entering into P3 arrangements with Canadian universities in recent years. The private company helps recruit international students and then gives the students pre-university training. If all goes according to plan, the students in question eventually become full-fledged students at the university in question.  There’s been increased attention to […]
Read moreHere’s my take on Canada’s jobs recovery, written for the Economy Lab. The Economy Lab is a new on-line feature of the on-line business section of the Globe and Mail, part the newspaper’s extensive print and electronic make-over launched on October 1. Editor Rob Gilroy has made it a lively spot. The Daily Mix is full of links to interesting […]
Read moreJack Vicq is Saskatchewan’s answer to Jack Mintz, a relentless advocate of lower taxes for high-income individuals and profitable corporations. His first report for the provincial government presaged massive personal income tax cuts in 2000 (which soon pushed the province into deficit). His second report for the provincial government presaged massive corporate tax cuts. Saskatchewan business organizations just released a […]
Read moreIt turns out — surprise! — that it’s really hard to measure quality in complex social systems and that employing simplistic quantitative measures can backfire. That’s the take-home message from a recent talk by UC Berkley economist and public policy professor Jesse Rothstein who came to SFU to present his latest research on using standardized test scores to measure teacher […]
Read moreI have an opinion piece out on the so-called “Big Five” proposal for Canadian universities. The plan, first articulated in MacLean’s magazine just over a year ago, would entail two main things: 1) more research money concentrated at five major Canadian universities; and 2) lower undergraduate-to-graduate student ratios for those same five universities. The universities in question are Toronto, McGill, UBC, Alberta and […]
Read moreThere are some interesting if rather subtle differences between the fiscal situation of the federal government as forecast in the last Budget, and that given to us yesterday in the Update. Not much change to the revenue picture, with 09-10 being a bit better than forecast, and next year being a bit weaker than forecast. Debt charges are a bit […]
Read moreA week ago, the Government of Saskatchewan released the Conference Board of Canada’s report on the possible Potash Corporation of Saskatchewan (PCS) takeover. It provides 77 pages of useful information, but is disappointingly thin on policy recommendations. The Conference Board downplays concerns about BHP leaving Canpotex after acquiring PCS. It argues that, with or without Canpotex, profit maximization would motivate […]
Read moreThe Update of Economic and Fiscal Projections released today is fairly upbeat on the recovery in the job market, noting that “all of the jobs lost during the recession have now been recouped.” Well yes, but that still leaves us down 211,000 permanent full-time employee positions, with all of the net job creation over teh past year or so having […]
Read moreHere’s a new take on bringing economic theory to the masses — a rap battle between Keynes and Hayek. What’s amazing about it is the amount of solid (if not plain nerdy) content this video packs into such a short time. It’s fun to watch for sure (very high production values), but you get that much more out of it […]
Read moreIt would be funny if it wasn’t so sad. In the news today: Statistics Canada has been trying to find $7 million in cuts. Five surveys have been axed so far. But those five don’t add up to enough savings, so more cuts to come. That’s on top of the surveys cut, throttled or mothballed mentioned in this post, and […]
Read moreThe following will appear in the Hill Times’ October 18th edition. The Harper Conservatives repeatedly banged Canadians over the head this summer with their minority viewpoint on Canada’s long-form census questionnaire. The questions, they said, were intrusive, and the government coercive for expecting answers. Mandatory suddenly became an ugly word for the law-and-order brigade. Interestingly, their actions on the census […]
Read moreIn an announcement that largely went unnoticed last week, U.S. Steel said it plans to close down the blast furnace at Stelco’s Hilton Works in Hamilton, Ontario. Hilton Works was once the main steelmaking operation of what was once Canada’s largest integrated steelmaker. Its demise exposes how Stelco has been reduced to a mere shell of its former glorious self. […]
Read moreSo, Export Development Canada (EDC) has agreed to lend Vale up to $1 billion US. This announcement comes on the heels of a bitter labour dispute at Vale’s Sudbury mines and in the midst of an ongoing strike at its Voisey’s Bay operations. The financial rationale is unclear. Although $1 billion is very large for an EDC loan, it is […]
Read moreIt would have been interesting to listen in on the discussion of Bay Street economists with Finance Minister Flaherty earlier this week. Not all of the banks have current forecasts on line, and they differ somewhat in terms of detail and relative degree of optimism or pessimism. Nonetheless, it seems clear that growth in 2011 will likely be significantly lower […]
Read moreNow that I am working for the International Trade Union Confederation in Brussels, I have some observations about life here. Rather than pollute Relentlessly Progressive Economics with a bunch of goofy anecdotes, I have started a new blog: Beer with Weir. Check it out!
Read moreI was disturbed to read this comment on the current state of the US economy in Mark Carney’s speech last week. “The natural rate of (US) unemployment may be increasing sharply. The scale of industry restructuring means that some unemployed workers do not have the skills suitable for the expanding sectors. Other job seekers are tied to their local area, […]
Read moreIn case progressives needed another reason to distrust Michael Ignatieff, he just pulled the rug out from under Employment Insurance improvements: Michael Ignatieff is reversing his support for a wide range of enhancements to Employment Insurance (EI) benefits, saying they are too expensive and are no longer required. The Liberal Leader attempted to provoke a federal election around this time […]
Read moreNeil Reynolds has issued yet another diatribe in the Globe, “A Shameful Spending Spree” He argues that inflation adjusted government spending per person has grown by about 50% over the past 30 years. He uses 1982 as the base year. Was all this inflation-plus spending really necessary? Yes, it includes health costs and education costs but does every man, every […]
Read moreAmong the concerns about the HST that we at the CCPA have raised was the poor timing of the tax change. From my pre-budget piece last September: If British Columbians respond to the HST by reducing their consumer spending, the timing of the HST introduction may actually slow down the economic recovery, which should be getting under way next summer. […]
Read moreToday CCPA released a new report by myself and Ken Carlaw, an economist at UBC-Okanagan, called Climate Justice, Green Jobs and Sustainable Production in BC. I doubt you’ll see any headlines about it in the major news dailies, but I think it will have a longer-lasting impact as a key economic framing piece for our Climate Justice Project. In the […]
Read moreYesterday afternoon, Alex Usher–who regularly blogs for the Globe and Mail on post-secondary education–blogged about an innovative concept proposed by the (now ousted) Liberal Party in New Brunswick’s recent provincial election campaign. The proposal is for universities to charge students one flat fee for the cost of a degree. Usher argues in favour of this move on the basis that it would […]
Read moreCabinet ministers from the governments of Ontario and Quebec have sent a letter to Minister Tony Clement, calling the census decision a “mistake” and asking that the federal government “reverse this course of action as soon as possible”. The provinces, together, represent 62% of the labour market and spend billions of dollars every year on training and education. The Ministers […]
Read moreThis morning, the Canadian Foundation for Economic Education hosted a Bay Street breakfast meeting with Stockwell Day, President of the Treasury Board of Canada. Jim serves on the Foundation’s Board of Directors, but could not make today’s session. So, Armine and I ended up having breakfast with Tories at Torys. (Some other participants may not have been Tories, but I […]
Read moreThe following will appear in the Hill Times on Monday, September 27, 2010 Everyone knows that the Harper government’s decision on the census is destructive madness, including the Harper government. But there is a growing sense that it’s too late to reverse the decision. It’s not. The Harper government has been saying it’s too late to change things since early […]
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