Palley on the Neoclassical Monopoly in Economics
Thomas Palley has posted a good discussion of the relationship between economic theory and policy, which includes a useful taxonomy of contemporary economists.
Read moreToday’s Job Numbers
Today’s job numbers are surprisingly strong given the alarming deterioration of the US economy. They are very likely to lead to a further rise in the dollar, a reluctance on the part of the Bank of Canada to cut interest rates any further in the near future, and even a quick election. But we should not lose sight of the fact […]
Read moreMy Natural Gas Woes
I just love the way “free markets” work. Here is a classic example of price “stickiness.” In Ontario I have the privilege of purchasing my gas from an independent supplier under a fixed term/fixed price contract, or at a fluctuating price from my distributor, Enbridge. The rational economist in me tells me that it should make no real difference whether […]
Read moreThinking About Stimulus in the US
A lot of US progressives, including Dean Baker, and Larry Mishel from the Economic Policy Institute, are weighing in on the need for a significant fiscal stimulus package, in the range of 1% of GDP. http://www.epi.org/subjectpages/stimulus.cfm Citing – entirely reasonably – the need for measures which will have a quick impact on a slowing economy, these packages tilt to income […]
Read moreManufacturers Call for “Buy Canadian” Policies
Neo liberal orthodoxy is crumbling in the wake of the ever-deepening manufacturing crisis. Witness yesterday’s call from the Canadian Manufacturers and Exporters Association for domestic procurement policies linked to major public investments in infrastructure and transit projects – long advocated by labour and derided by mainstream types as a return to dreaded “industrial policies.” As the CME point out, there […]
Read moreA Blast from the Past: Lynn Williams in the Huffington Post
Lynn Williams, former International President of the United Steelworkers, has posted an excellent speech on a major American blog. Although the title refers to rebuilding the labour movement, the text touches upon many of the broader policy issues discussed on our blog: how to design a stimulus package, rising inequality, public healthcare, the economics of minimum wages, international trade agreements, […]
Read moreDoes Canada Need a Strategic Petroleum Reserve?
The International Energy Agency requires member countries to maintain emergency oil reserves in case oil imports are temporarily disrupted. Canada was exempted from this requirement because we are a net oil exporter. However, the current pipeline system and NAFTA’s energy chapter limit our ability to supply eastern Canadian consumers with western Canadian petroleum. Western Canada’s vast oil exports to the […]
Read moreThe Edwards Legacy
A week ago, John Edwards ended his candidacy for the Democratic presidential nomination. Although it’s unfortunate that he is out of the running, he succeeded in shifting the race onto a more progressive track. His campaign pinned-down the two leading candidates in favour of implementing universal healthcare, raising the minimum wage, providing economic stimulus, getting out of Iraq, and re-evaluating […]
Read moreWill Hutton on the Financial Crisis
From today’s Observer – http://observer.guardian.co.uk/comment/story/0,,2247583,00.htmlÂ
Read moreA Perfect Explanation of Sub Prime Lending
Check out this brilliant video on You Tube, everything you need to know about finance and the sub prime crisis. http://www.youtube.com/results?search_query=long%20johns%20sub%20prime&search=Search&sa=X&oi=spell&resnum=0&spell=1Â
Read moreSaskatchewan Rejects TILMA . . . Again
Saskatchewan’s new Premier, Brad Wall, addressed the Petroleum Club in Calgary on Monday to emphasize his willingness to continue giving away his province’s oil reserves for scandalously low royalties. Several media outlets reported that he also expressed interest in joining TILMA, which he had previously rejected. For example, The Globe and Mail reported, “He mentioned his desire to become part […]
Read moreCalm Amidst the Economic Storm – “Only in Canada, You Say?”
With outright panic sweeping global financial markets, the relative calm among Canadian economic policy-makers seems increasingly strange.  Today’s timid quarter point interest rate cut by the Bank of Canada was hugely eclipsed by the US Federal Reserve’s three quarter point cut, rushed out the door to try and soothe the savage beast known as Wall Street just before the much […]
Read moreThe Globe on TILMA
Ten days ago, The Globe and Mail’s online edition included an excellent op-ed by Murray Dobbin debunking the notion that supposed inter-provincial trade barriers necessitate TILMA. Unfortunately, The Globe followed it with an editorial endorsing TILMA in Friday’s print edition: How to bulldoze a wall The Globe And Mail Friday, January 18, 2008 Page: A14 The provinces do not have […]
Read moreIndicators of Well-Being in Canada
I’m really impressed by this web resource launched by Human Resources and Social Development Canada. It provides indicators across several domains – income, work, health, learning etc. to a total of perhaps 80 in all – charts major national trends, disggregates many indicators by gender and (bravely for the federal government) by province, and provides international comparisons within the OECD […]
Read moreProgressive Child Benefit Reform
This report from Ken Battle of the Caledon Institute was released today. I’ve not yet had a chance to read it in full but the approach seems bang-on to me – fold the two new badly designed Tory child benefits into the CCTB, with a new and much higher maximum of $5,000, phased out relatively slowly as family income rises. […]
Read moreCarbon Taxes, Imports and Jobs
I note that the European Trade Union Confederation (ETUC) has called for a carbon tax on imports into the EU if Europe’s trading partners do not take actions to reduce emissions similar to those of the EU. (text follows.) The aim is to ensure that jobs in European heavy industry are not lost to lower-cost imports as costly nvestments are […]
Read moreNorthern Saskatchewan Ablaze with Controversy
As discussed here three weeks ago, Dion appointed Joan Beatty as the Liberal by-election candidate in Desnethe-Missinippi-Churchill River just over a week ago. Since then, Ralph Goodale has tried to make much of the fact that other prospective candidates should have been aware of this possibility and opponents of the appointment have organized feverishly.
Read moreFlaherty responds to Marc’s report
The Finance Minister denies my charges that a slowdown could lead to a deficit, as reported on CBC: Flaherty rejects think-tank’s deficit warning Last Updated: Monday, January 14, 2008 | 2:50 PM ET Finance Minister Jim Flaherty said Monday that there’s no substance to worries that the country will head back into a deficit situation if the economy slows. Flaherty was responding to a […]
Read moreToday’s Labour Force Release (January 11.)
Today’s job numbers show that fears of a looming recession are justified, and underline the need for immediate action. Labour has called for cuts to interest rates to help bring down the dollar, a national high level task force on the manufacturing jobs crisis, targeted measures to support new manufacturing investment, and job creation through Buy in Canada policies tied […]
Read moreA Primer on Pump-Priming
With a weakening US economy that may well spill over into Canada, it is time to start thinking about fiscal policy responses should recession rear its ugly head. To date much of the focus has been on monetary policy, with calls for central banks to lower interest rates. This is providing some relief, but as many economists have pointed out, […]
Read moreCityphilia
A good piece by novelist John Lanchester from the London Review of Books – on the City (London finance), inequality, and the credit crisis. http://www.lrb.co.uk/v30/n01/lanc01_.html
Read moreManifesto Destiny
In my holiday reading were two manifestos – how often can you say that? The first arrived by mail just before the break, the Manifesto on Global Economic Transitions, published in September 2007 by the International Forum on Globalization, the Institute for Policy Studies, and the Global Project on Economic Transitions (I will dub this the IFG Manifesto). The second […]
Read moreMichael Moore on the Democratic Primaries
Moore makes several accurate and entertaining points in today’s open letter. Although he stops short of officially endorsing Edwards, his final paragraph comes pretty close. Who Do We Vote For This Time Around? A Letter from Michael Moore Friends, A new year has begun. And before we’ve had a chance to break our New Year’s resolutions, we find ourselves with […]
Read more2008: Year of the Layton?
Duncan Cameron writes that it could be: What is needed to make 2008 Jack’s year to set the policy direction for Canada? How about: something old, something new, something borrowed, and something true. The something old is the concern for the less fortunate that has motivated New Democrats since the adoption of the Regina Manifesto in 1933 by its predecessor the […]
Read moreInvestment, Oil and the State
At least 79% of the increase in Canadian non-residential investment this decade has come from the oil industry and governments. Jim and others on this blog often note that, although corporate profits have ballooned, business investment has barely increased as a share of GDP. However, this fact means that business investment has grown along with GDP and it’s worth examining […]
Read moreCCCE Profits vs. Employment
January 2 will be the 20th anniversary of the Canada-US Free Trade Agreement’s signing. (Of course, the deal did not come into force until January 1, 1989, after the 1988 federal election.) The leading lobby for this deal was the Business Council on National Issues, which has since been renamed the Canadian Council of Chief Executives (CCCE). The promise of […]
Read moreJohn Edwards: The Great Left Hope for 2008
Edwards is the most left-wing, pro-labour candidate among the Democratic front-runners. He has been speaking truth to power in a way that is rare in Canadian politics, let alone American politics. Can he win the nomination? Since Clinton is still well ahead in nationwide polls, much will depend on whether Edwards can gain momentum by winning Iowa on Thursday. Although […]
Read moreThe “Gift” that Gives
The Globe has chosen Don Johnson “Nation Builder of the Year†for his long campaign to waive capital gains tax on charitable contributions of shares. http://www.theglobeandmail.com/servlet/story/RTGAM.20071220.wnationwattcloutier28/BNStory/National/home This has, reportedly, resulted in a flood of donations by Canada’s most wealthy families to deserving, and not so deserving, charities. Many of us would count gifts to business schools and conservative […]
Read moreIs Big City Real Estate Overpriced?
The current issue of Maclean’s features a typically provocative cover on “Real Estate 2008.” The “Buy? Sell? Panic?” headline caught my attention because I am currently selling a place in Ottawa and moving to Toronto. The story inside Maclean’s is far more soothing, suggesting that there is no risk of a real estate crash in major Canadian cities because: sub-prime […]
Read moreDavid Orchard and Dion-omics
Earlier today, the Prime Minister announced that four by-elections will be held on March 17. Earlier this week, a most fascinating controversy emerged in one of the affected ridings: Desnethe-Missinippi-Churchill River (northern Saskatchewan). David Orchard, the Saskatchewan-based activist whose grassroots organization helped Dion win the Liberal leadership, has declared his candidacy for the Liberal nomination. However, Ralph Goodale is pushing […]
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