An interesting and informed reflection on the sources of rising inequality - seen as not reducible to “skill biased technological change”, with the usual cop out that almost all of the answer lies in education and training. http://www.federalreserve.gov/boarddocs/speeches/2007/20070206/default.htm Remarks by Chairman Ben S. Bernanke Before the Greater Omaha Chamber of Commerce, Omaha, Nebraska February 6, 2007 The Level and Distribution […]
Read moreAs we have been hearing about the legacies of the great minds of economics, a name that has not cropped up much lately is Marx. The first article below suggests that Marx’s ideas live with us in the global economy, and growing inequality has awoken the old guy’s spirit. With it we are seeing a resurgence of the word “capitalism” […]
Read moreThe December, 2006 OECD Economic Outlook (full text unavailable on line) points to sudden tax revenue windfalls in most member countries due to large capital gains and the fact that “the process of income and wealth distributions becoming more skewed has picked up pace lately …. and may be interacting with progressive tax systems to produce more than usual increases […]
Read moreTwo months ago, Andrew Jackson noted that Jim Webb, the new Democratic Senator from Virginia, seemed willing to discuss class and inequality with a candour seldom heard in Canadian politics, let alone American politics. Last night, Webb delivered the Democratic response to President Bush’s “State of the Union Address”. The excerpts below feature more frank talk about class and inequality […]
Read moreAs Marc noted, the Toronto Star is waging a journalistic “war on poverty”. The editorial in Monday’s National Post chastised “The Toronto Star’s poverty scam” for using the Low-Income Cut-Off, a relative measure, as an indicator of poverty. Today’s National Post includes the following letter from yours truly: In The Wealth of Nations, Adam Smith, the founder of free-market economics, wrote, […]
Read moreLast week the Fraser Institute released a report arguing for a shift in Canada’s tax mix that would increase the GST to pay for personal and corporate income tax cuts. The proposal would be a massive gift to the richest among us. It is kind of like asking everyone to make out a cheque for $300 to Jimmy Pattison. Such […]
Read moreRecent publicity given to the CCPA report on the huge gap between the compensation of CEOs and ordinary workers should prompt some discussion on what should be done about it. Part of the answer undoubtedly lies in reforms to corporate governance. Shareholders can potentially exert some control over the compensation committees of Boards of Directors who set senior executive pay […]
Read morehttp://www.campaign2000.ca/rc/index.html Campaign 2000 have released a new report card based mainly on some number crunching by the Canadian Council on Social Development. Among the more interesting findings: The child poverty rate has been essentially unchanged over the past three years (2001- 2004), (and indeed gradually rising by the most commonly used post tax LICO measure). It remains well above the […]
Read more http://www.guardian.co.uk/commentisfree/story/0,,1979785,00.html A return to the politics of envy could serve us well As inequality grows, the country becomes nastier. We should be seriously unrelaxed about the existence of the filthy rich Peter Wilby Friday December 29, 2006 The Guardian I hope the employees of Goldman Sachs and other City firms who netted a reported £9bn in end-of-year bonuses – with […]
Read moreAnother over the top tirade in today’s Globe from Neil Reynolds for whom “equality is the stuff of gulags and guillotines.” (Dion Gets it Wrong on Real Freedom. Globe and Mail. December 15.)  Mr Reynolds appears to be entirely unfamiliar with the best comparative empirical resarch on the topic, generally available from from the Luxemburg Income Survey (ww.lis.org)  which specializes in comparative […]
Read moreThere was a fair amount of media coverage of the new data on assets and debt from the 2005 Survey of Financial Security released by Stats Can last week (Daily, December 7); less so of the very useful companion research paper on wealth inequality by StatsCan researchers Morissette and Zhang published in the latest issue of Perspectives. http://www.statcan.ca/english/freepub/75-001-XIE/11206/high-1.htm As noted […]
Read moreIt is the policy that dare not speak its name. For the better part of the last 20 years, the idea of a guaranteed annual income (GAI), a government funded unconditional annual income floor below which no family or individual can fall, has been met with ridicule, dismissal, silence and, more often than not, legislation that does the exact opposite […]
Read moreA recommended article by Paul Krugman on US inequality trends appears in the Rolling Stone Review of Economics, The Great Wealth Transfer.
Read moreAs we head into the Christmas holidays and many of us look forward to spending some time away from work with our families, it’s worth noting that there is great inequality among Canadian workers in terms of access to paid vacation leave, and big gaps compared to other industrial countries. The statutory minimum in Canada varies by province, and is just […]
Read moreStatistics Canada has released results of the latest wealth survey (Survey of Financial Security, or SFS), covering the 2005 year (previous survey was for 1999, and prior to that, 1984). This makes for an interesting comparison, as the 1999 results came at a time when stock markets were bubbling, whereas by 2005 the bubble had shifted to real estate. One […]
Read moreThe World Distribution of Household Wealth, by James B. Davies, Susanna Sandstrom, Anthony Shorrocks, and Edward N. Wolff, was released by the World Institute for Development Economics Research. A Canadian (and a former prof of mine at Western – Go Mustangs!) is the lead author. The full paper is available here. The extended press release doubles as the report’s summary: […]
Read moreOn October 31, Finance Minister Flaherty announced that pension income could be divided between spouses for tax purposes. More recently, he mused about allowing spouses to divide all income for tax purposes. This latter proposal would benefit an affluent minority at the expense of important public programs and create a disincentive for women to engage in paid employment. Income splitting […]
Read moreFrom a New York Times story by Ben Stein: In Class Warfare, Guess Which Class Is Winning NOT long ago, I had the pleasure of a lengthy meeting with one of the smartest men on the planet, Warren E. Buffett, the chief executive of Berkshire Hathaway, in his unpretentious offices in Omaha. We talked of many things that, I hope, […]
Read moreJim Webb, Democratic senator-elect from Virginia, writes in the Wall Street Journal: Class Struggle November 15, 2006 The most important-and unfortunately the least debated-issue in politics today is our society’s steady drift toward a class-based system, the likes of which we have not seen since the 19th century. America’s top tier has grown infinitely richer and more removed over the […]
Read moreMilton Friedman’s legacy was to completely ignore the issue of inequality – of outcomes, of starting points, and of opportunities. So it is fitting that the CCPA launched a new research project today on inequality in Canada. A good question to ask whenever you hear policy proposals is: what does this do to inequality? The proposals from Harris and Manning […]
Read moreSome fascinating stuff on Economist’s View today. Below are two reposted articles on how notions of equity are deeply rooted in our brains. We may be smarter monkeys but the parallels are all too clear. Also check out this post on neoclassical indoctrination at the Chicago School. Thoma’s condensed version is here and the full pdf from In These Times […]
Read moreWe all suffer when greed is the creed http://www.guardian.co.uk/commentisfree/story/0,,1939867,00.html If you doubt the malign effects of big business out of control, consider Conrad Black’s downfall Will Hutton Sunday November 5, 2006 The Observer There has rarely been a better time to be a plutocrat. This is an unrivalled era in which both to acquire great wealth and keep it. Taxation […]
Read morehttp://www.socialreport.msd.govt.nz/ This is worth a look as a serious attempt at an “official” social audit. A good selection of economic and social indicators, and what is interesting is that the report highlights some progessive benchmarks and targets, and some not terribly impressive performance. A brave government indeed, compared to our own.
Read moreThe Toronto Star’s Thomas Walkom looks at the choices we make that keep the poor, um, poor. Walkom looks only at the working poor, not the welfare poor. If we add to the pile the numerous regressive reforms to provincial welfare programs the picture is even uglier. There’s much we can do to combat poverty Enforcing current laws would help […]
Read moreMany progressive Canadian economists have noted recently that the share of GDP going to wages and salaries has dropped perilously low, as low as recorded statistics take us back in any event. This article from the Economist, via Mark Thoma’s Economist’s View, points out that this trend is not particular to Canada. They suggest that this is globalization at work, […]
Read moreAn excellent article on issues facing the working poor in today’s Toronto Star cites a recent study by Human Resources and Social Development Canada in support of the employer counter-point that raising minimum wages would do little to help working poor families. http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/Article_Type1&call_pageid=971358637177&c=Article&cid=1158531020220 Indeed, precisely this point is made in an August, 2006 HRSDC Working Paper “When Working is not […]
Read moreAn interesting discussion is happening over at The American Prospect. Called Debating the Middle it asks “Just how is the middle class faring in the modern American economy, and how should progressives tailor their message and program accordingly?” As in other posts on the US inequality debate, there are some insights and implications to be gleaned for Canada. And while […]
Read moreUBC’s Bob Evans, a national treasure, reviews the data on income inequality as context for the attack on public health insurance in this recent article in Healthcare Policy. The abstract: From World War to Class War: The Rebound of the Rich Incomes in Canada, as in many other countries, are becoming increasingly unequal. In North America this process has several […]
Read moreBrad DeLong makes the definitive summary of the positions and evidence being put forward about inequality in the US of A. This is the blog-o-sphere at its best: real-time expert debate, in this case among top American economists – and in full public view, contributions welcomed, rather than in a classroom at an academic conference, much less a dated collection […]
Read moreOn the front page of today’s Globe and Mail, it was reported that Statistics Canada’s estimates of the Consumer Price Index had been miscalculated by a weany one-tenth of a percentage point since 2001. I know of a more pressing problem with Statscan data, and so do they: conventional surveys are vastly understating the incomes of the poorest Canadians, and […]
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