The province-wide revolt over BC’s looming Harmonized Sales Tax is reminiscent of protests a generation ago when the HST’s federal parent, the Goods and Services Tax, was born. The rationale for that shift was similar to that of the HST: to switch from an invisible tax paid by producers (the Manufacturers’ Sales Tax) that was passed on to consumers to […]
Read moreYesterday, the Prime Minister’s office put out a press release trumpeting Tim Hortons’ reorganization as a Canadian company as validation of deep federal corporate tax cuts. There was no real news: shareholders predictably ratified a decision that had been extensively reported back in June, when Tim Hortons management described it as “a pretty bland corporate announcement.” Nevertheless, far too many journalists […]
Read moreIn 2003 the the heterodox economics faculty at Notre Dame University were removed from the Economics Department. Now I gather their new home, The Department of Economics and Policy Studies, will be eliminated as well. The story can be found in The Chronicle of Higher Education An interesting analysis appeared today in the Chronicle titled ” Neoclassical Economists on the […]
Read moreCanada likes to think of itself as the country that emerged from the financial crisis squeaky clean. Too bad it is abdicating a leadership role in creating a safer financial system going forward. The issue is bonuses paid to top executives in the financial sector. It looks like the Europeans and Americans have hammered out an agreement to put some […]
Read moreSome pundits have blasted the NDP for voting with the Conservatives in exchange for “a bone,” “crumbs” or “a peanut” on Employment Insurance (EI). Others have convincingly countered that forcing an election right now would not advance EI reform or other progressive causes. Nevertheless, the decision to temporarily support the government deserves further analysis in terms of the EI proposal […]
Read moreMy two kids are still far too young to be farmed out to earn their keep in the labour market, but when they are (in about a decade), I really hope that the value of minimum wages in Canada improves. If not, not only are they going to have to work harder and harder to get by along with millions of others young […]
Read moreJanice MacKinnon’s op-ed on Employment Insurance (EI) in Monday’s National Post read almost as if it had been written before the economic crisis. There was no mention of mass layoffs or rising unemployment, let alone proposals to enhance EI in response to these trends. Instead, she sees the biggest problem with EI as being the supposed drag on labour mobility […]
Read moreThe latest changes to EI to be introduced by the Conservatives do almost nothing for the shock troops of the labour market, those who were first felled when the recession hit last year. Bill C-50 will pass – whether or not it is fast-tracked today or “well-considered†in committee depends on how the procedural tactics imbedded in the bill are […]
Read moreI want to share with everyone a new CAW resource that was produced for our Constitutional Convention (which took place last month in Quebec City). It’s a 4-page cartoon book explaining the core dynamics of financial cycles, that was illustrated and deesigned by Tony Biddle — the awesome Toronto political cartoonist who also illustrated Economics for Everyone. The cartoon book […]
Read more           This week marks the one-year anniversary of the collapse of Lehman Brothers: the darkest moment of the global financial crisis, when those in charge genuinely feared for the survival of their system.           This somber anniversary has sparked a modest flurry of retrospection in the media. But the dominant tone (Michael Moore’s new movie aside, of course) has not […]
Read moreThis morning’s consumer price figures for August are reminiscent of July. The annual Consumer Price Index decline was 0.8% (compared to 0.9% last month.) With the exception of July, August was the sharpest drop in consumer prices since 1953. In both July and August, eight of ten provinces posted negative inflation rates. The only province with positive inflation in both […]
Read moreThe OECD released an interesting short report today on how Canada compares to other countries in terms of the job impacts of the crisis. http://www.oecd.org/dataoecd/62/10/43707194.pdf They project that our unemployment rate will increase by more than in any previous recession to about 10% in 2010 and will likely take a long time to fall. They note a strong link between […]
Read moreLast night, I saw the North American premiere of Michael Moore’s latest movie at the Toronto International Film Festival. Ironically, it was held in the Visa Screening Room, which grants preferential access to bearers of Visa Gold, Platinum or Infinite credit cards. (The unwashed masses who use MasterCard, AMEX or lower grades of Visa waited in a separate line.) While […]
Read moreWith their backs once again to the wall, the Conservatives today announced that they will, at long last, propose additional measures to help the unemployed, something almost everyone inside and outside Parliament has been asking them to do for the better part of a year. They will extend employment insurance benefits by another 5 to 20 weeks for those who […]
Read moreFurther to my post of last week, I note that the Department of Finance Update of Economic and Fiscal Projections shows that the federal debt to GDP ratio will start falling after the next fiscal year … ie from 2011-12…. even though we will be running quite significant fiscal deficits — eg $27.4 Billion in 2011-12. While many media pundits […]
Read moreShould we care that the marginal effective tax rate on capital is higher in Prince Edward Island than in Serbia? Of course, this question is a joke. But the C. D. Howe Institute actually did put out a press release (PDF) last week singling out PEI for its allegedly high business taxes compared to an average of 80 countries, among […]
Read moreWe seem set to go into the next election – which could be in a matter of days - with both the Conservatives and Liberals firmly committed to bringing the federal Budget back into balance in a relatively short time frame, with no tax increases. There appears to be no sign of a break in the conventional wisdom that “exit […]
Read moreAn interesting piece in the FT yesterday re how those economists who followed the financial flow circuits called the crisis, as opposed to the general equilibrium types who did not. Complementary to the analysis of Tom Palley on the macro roots of the crisis, who rightly insists that the “no one saw it coming” crowd are trying to implicate all […]
Read moreGlobal Unions ‘Pittsburgh Declaration’ Global Unions’ Statement to the Pittsburgh G20 Summit (24-25 September 2009) I. EXECUTIVE SUMMARY 1. The G20 leaders are meeting in Pittsburgh amidst reports that the global recession is bottoming out, with the massive decline in output in most major economies slowing, and that governments are preparing their strategies for exiting from the fiscal stimulus measures. This […]
Read moreThe London G-20 summit last fall may go down history as the meeting that saved the world. That’s a huge exaggeration of course, but leaders did agree to a program of co-ordinated monetary and fiscal stimulus which may have arrested an economic free-fall, and they agreed to an agenda for financial re-regulation with a view to making sure that it […]
Read moreKeystone Liberals Yesterday, Andrew Coyne lambasted a Liberal Party “Reality Check†from Thursday that looks eerily similar to the table that I had posted on Monday. Like my table, the Liberals use the words “Growthâ€, “Declineâ€, and “Britain.†By contrast, the OECD’s tables use a negative sign (instead of words) to denote declines and refer to the “United Kingdom.†The […]
Read moreLayoffs Continue Today’s Labour Force Survey indicates that full-time employment declined by 4,000 in August. There were 7,000 fewer jobs in goods-producing industries. Retailers Hire A surprising 21,000 new jobs in retail and wholesale trade propelled economy-wide employment up by 27,000. This increase consisted entirely of part-time jobs. While any employment gain is welcome news, the quality of these new […]
Read moreDisappointingly, press coverage of Monday’s GDP numbers missed the fact that Canada had posted the worst second-quarter performance of any G-7 country. To his credit, Julian Beltrame of Canadian Press picked it up on Tuesday. The media has redeemed itself by noting that today’s Organisation for Economic Co-operation and Development (OECD) projections suggest that Canada will post the worst third quarter […]
Read moreThe September BC Budget is a new look at a budget most have come to see as a fake. February’s budget was not passed through the legislature due to the May election, and up to E-Day the government maintained the fiction that it had a small-ish deficit of just under half a billion dollars. Since that time, the government has […]
Read moreA key justification for small-business tax breaks is that small enterprises are supposedly engines of job creation. The Canadian Federation of Independent Business’ (CFIB) oft-repeated claim that “small- and medium-size businesses employ more than half the workforce” (PDF) cites Statistics Canada’s Survey of Employment, Payrolls and Hours. A closer examination of that Survey casts doubt on this statement, the quantity […]
Read moreThis morning’s Gross Domestic Product figures put the lie to Prime Minister Harper’s claim that “we will come out of this faster than anyone.” While many other advanced economies grew or stabilized during the second quarter of 2009, the Canadian economy shrank by 0.9%. During this period, three G7 countries – Japan, Germany and France – experienced economic growth. The […]
Read moreColumnist Doug Saunders writes (from his Mediterranean cruise) in today’s Globe: “It’s a little like the decision being faced by the Bank of Canada, which can print money and ease the dollar’s value downward to please Ontario’s manufacturers, or let it rise to please Alberta’s petroleum exporters – but not both.” Huh? Petro exporters get more Canadian dollars and higher […]
Read moreUPDATE (August 26): Quoted by Canadian Press, Canwest, The Toronto Star and Hamilton Spectator It was the best of times, it was the worst of times… It would be welcome news if the number of Canadians receiving Employment Insurance (EI) benefits increased because of a proactive policy decision to expand this program to combat the recession. In fact, the ongoing rise […]
Read moreI missed the Globe and Mail letters on Thursday (because Jack Mintz’s op-ed prompted me to instead read The National Post that day.) Among them was the following letter from Bruce Hyer, the key advocate of not taxing “small business†profits: Yes, there was a vote I read with interest your editorial The Tax-Cutting Left? (Aug. 18) on the New […]
Read moreHere’s my modest contribution to the debate on re-naming the NDP. Ed Broadbent and others have made the excellent point that “NDP” is a solid brand that stands for something – namely belief in social democracy, a revitalized, new democracy. However, I don’t buy the argument that “New” qualifies “Democratic” in the same way that “New” qualifies “York” in New […]
Read more