It is amazing to see the charged responses to the idea of a made-in-Canada policy for procurement related to infrastructure stimulus spending. Perhaps it is just that all economists are supposed to accept free trade as the One True Policy. But what I am seeing are largely moral arguments for free trade in the abstract rather than an examination of […]
Read moreAlarmist media reports on “Buy America” rules for steel used in US public infrastructure projects have emphasized the value of Canadian steel exports allegedly threatened, but have largely ignored the similar value of American steel imported by Canada. In fact, in the most recent month for which data is available (November 2008), Canada bought more steel from the US than […]
Read moreFrom Kathleen Lahey, a Law professor at Queen’s University: Budget 2009: Designed to Leave Women Behind – Again The big picture:   Women make up slightly more than half the population of Canada, and are directly responsible for caring for the majority of minor children in the country on a day to day basis. The expectation:   As an ‘economic recovery’ and […]
Read moreFigures released by Statistics Canada this morning reveal that Canada’s real GDP dropped by 0.7% in November 2008, its largest monthly decline since a 1.0% drop because of the August 2003 power outage. With the exception of that unique event, November’s decline was the largest since at least February 1997, the oldest month for which precisely comparable figures are available. […]
Read moreThe more I read Budget 2009, the less stimulus I see. The very first page of text in the Budget Plan commits to “inject fiscal stimulus of 2 per cent of gross domestic product (GDP)†(page 9). For 2009-10, the Budget introduces new spending and tax cuts worth $18 billion, about 1.2% of GDP (page 217). But it accounts for […]
Read moreThe Fraser Institute, Canadian Centre for Policy Alternatives, Informetrica, Bank of Montreal, and yours truly square off in today’s Toronto Star (page A17).
Read moreToday’s Consumer Price Index suggests that Canada is lunging toward deflation. The annual inflation rate plummeted to just 1.2% in December, 2.2% lower than only three months ago. If this pace continues, the national inflation rate will turn negative in the next few months. Two provinces, Nova Scotia and New Brunswick, already recorded negative inflation rates in December. Of course, […]
Read moreWe are now into full blown Budget consultation mode, with MPs of all parties going through a bit more than the usual pretence of listening before the actual Budget is finally put to bed by the government a few days hence. For once, even the Conservative inner circle seem a bit unsure of where to go. Below the closed (charmed) […]
Read moreEzra Klein at American Prospect has already commented on some footage that I just saw on CNN. Paul Krugman marshalled his critique of Obama’s stimulus plan from his blog onto the op-ed page of today’s New York Times. A front-page story in the same newspaper suggests that Democratic legislators have been reading Krugman. Obama responded by throwing down the gauntlet for […]
Read moreYesterday, the chief economists of the chartered banks called on the federal government to permanently cut taxes now and balance the budget after the economic crisis by cutting spending. An obvious but unstated implication is a smaller government when the economy recovers. While this outcome would undoubtedly suit the ideological preferences of bank economists, it would hardly be a sensible response […]
Read moreWhy does the Globe oped page save all the good stuff for days when most people are not paying attention? In today’s edition, tax economist Jon Kesselman from SFU says reinforce the automatic stabilizers and focus on social needs: Getting more funds into the hands of individuals who most need support should take priority over cutting taxes. Much of traditional […]
Read moreThe best prof I ever had doing my undergrad at Western was David Laidler. I took a fourth year economic policy course with him, and learned a lot, especially a certain horror known as inflation (John Crow soon embarked on a disastrous war on inflation in the early 1990s that still sends shivers up many of our spines). Interestingly, Laidler […]
Read moreOK, there has been no such call. Yet. But mark my words, this panel will call for tax cuts as the federal government’s fiscal stimulus, and the government will deliver. The Economic Advisory Council is not exactly a representative group. No labour representation, no Aboriginal reps, no one from the social or non-profit sector whatsoever. Thus, the groups most likely […]
Read moreLabour’s Plan was developed by the CLC in consultation with economists from our affiliates. It has been submitted to all of the party leaders and economic critics. The Summary is followed by elaboration of each of the five main points. (This document does not deal with financial regulation and international economic issues.) http://canadianlabour.ca/sites/clc/files/laboursplanfullEn.pdf
Read moreMy colleague Sylvain Schetagne prepared this Update on Economic Stimulus packages announced as of December 10. Quite a few governments do seem prepared to act on the IMF recommendation to provide significant stimulus, but there’s a wide range of approaches. Introduction Last November, leaders of the world’s 20th largest economies, know as the G20, met in Washington to discuss the […]
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