Other than the occasional call for Canada to adopt the US dollar, discussion of Canadian monetary policy mainly consists of the C. D. Howe Institute and the Bank of Canada praising inflation targeting. As Thomas Palley reminds us, another perspective exists: The Case Against Inflation Targeting A few months ago the Federal Reserve seemed to be inexorably moving toward adopting […]
Read moreAl Gore has famously and correctly characterized the scientific consensus about global warming as “An Inconvenient Truth”. In today’s Financial Post, Buzz Hargrove identifies another “inconvenient truth” for Canadian progressives: “it is impossible to achieve Kyoto targets in the time frames spelled out in Kyoto.” Canada’s Kyoto commitment was relatively modest and achievable. However, after signing it, the Liberal government […]
Read moreFrom today’s FP – I’ve dropped the misleading headline – this is a much more reasoned piece than some recently and widely circulated short quotes from Buzz on the implications of Kyoto for workers. Friday, April 20, 2007 Â As the president of the Canadian Auto Workers Union, I often find myself taking controversial positions, usually with a strong opinion […]
Read moreSome good points in this piece. I just love Baird’s argument that “275,000 Canadians would lose their jobs, gasoline prices would jump 60 per cent and natural gas prices would double.” Sounds like just what has happened over the past couple of years as the result of the oil boom. Did 250,000 manufacturing workers lose their jobs because of […]
Read moreThe framing of the Kyoto Accord by the Harper government, that is. I suppose this is progress for Harper, who had essentially dismissed climate change a year ago, but as the polls moved he has had to follow. I’m not as pessimistic about the economic fall-out if we are creative in developing just transition strategies for affected workers and are […]
Read moreOTTAWA — Canada’s greenhouse gas (GHG) pollution will continue rising for several more years and remain well above Kyoto targets beyond 2020 if government plans leaked to Canadian Press and reviewed by the Climate Action Network Canada/Réseau action climat Canada (CAN-RAC) are implemented. The organization expects the federal government’s proposal for a new national GHG target to be […]
Read moreApparently following Andrew Coyne’s advice, Dion seems to be positioning himself to the right of Harper on tax policy. This move casts further doubt on Dion’s promise of a progressive alliance with the Greens. When the Conservatives cut the GST, the Liberal response was not that this move would take money away from important public services, but that it would […]
Read moreA report by Felix Salmon from the front lines of Columbia University on some issues arising out of the Stern review. I’d love to see a transcript of this session. Stern, Sachs, and Stiglitz on the Economics of Climate Change … I managed to ask Stern the question I’ve been wanting to ask him for a couple months now … […]
Read moreThe Globe and Mail deserves full credit for continuing to publish stories on environmental toxins. After being in circulation for decades, many chemicals are now (slowly) being put to the test, and some may even be taken out of circulation some time in the next decade. A first step being taken by the feds is labelling of what is in […]
Read moreAt the conference a couple of weeks ago where Elizabeth May mused about income trusts, she also committed to make opposition to the Security and Prosperity Partnership (SPP) the centrepiece of the Green Party’s forthcoming election platform. The SPP is an arrangement between Canada, the US, and Mexico that seeks to accelerate tar-sands development, among other objectives. It is very […]
Read moreEveryone knows globalization is an irresistible worldwide process enveloping every economy, including Canada’s, in its market-driven tentacles. Right? Wrong. In fact, since 2000, Canada’s economy has been curiously de-globalizing before our eyes. The importance of global markets to our employment and production has been diminishing, not increasing – and at a remarkable pace. Year-end GDP numbers for 2006, recently released […]
Read moreCanadian Aid Performance Declines in 2006: The OECD’s Development Assistance Committee (DAC) released preliminary statistics for ODA for 2006 and Canada is near the bottom, tied with Australia for 15th position among 22 donors.  At 0.30% of our Gross National Income (GNI) in 2006,  Canada is down from 0.34% in 2005. In both years, Canadian aid, along with other […]
Read moreBudget 2007 made interest on funds borrowed in Canada to finance foreign business operations nondeductible from Canadian corporate taxes. Finance Canada suggested that this arcane reform would raise relatively little revenue and, initially, business barely seemed to notice. More than a week after the budget, a Globe editorial and a Financial Post op-ed criticized the change as a huge ‘tax […]
Read moreIn Thursday’s Financial Post, the Canadian Association of Income Funds articulated the argument suggested by Elizabeth May: the devaluation of income trusts has made them vulnerable to takeovers by foreign private-equity. Certainly, many enterprises that paid little tax as income trusts will continue to pay little tax by converting to new organizational forms, such as private equity or publicly-traded corporations. […]
Read moreStéphane Dion, who is not progressive, has allied with Elizabeth May, who is not progressive, ostensibly to prevent progressive vote-splitting. As Andrew Coyne notes in tomorrow’s National Post column, this maneuver is clearly directed against the federal NDP, which is progressive. It is worth recalling the 2006 election results in Central Nova, the riding where Dion has pledged to prevent […]
Read moreToday’s Ottawa Citizen has a good editorial on the existence of two publicly-funded school systems in several provinces. The original concept of one system for Protestants and another for Catholics has evolved into a “public”, secular system and a “separate” system that teaches some Roman Catholicism but is also attended by many non-Catholics. Many schools cannot afford needed supplies, many […]
Read moreI’ve pasted below an excellent column from the Toronto Star by Carol Goar. The CLC’s analysis of the issue and policy prescriptions are avaialable from: http://www.canadianlabour.ca/index.php/Salimah_Valiani/1117 As I’ve noted earlier, its pretty hard to square the “shortage of Canadian workers” story from employers with the avaialable data on (flat) wage growth. There are clearly some shortages of specific skills (eg […]
Read moreTwo Canadian macro articles diverted me from my best laid plans today. Side by side, the two make for some interesting observations on the state of the Canadian economy, as well as some fodder for thinking about what drives investment. The first, a Statscan piece by Phillip Cross, is a demand-led investment story, with most attention on the resource sector, […]
Read moreStatistics Canada’s economic review of 2006 contains an interesting passage about consumer responses to higher gas prices. One would expect that as gas prices rise, drivers would consume somewhat less gas in the short run (gas demand is inelastic, so the reduction may be small), and to change their behaviour over the long-run by purchasing more fuel efficient vehicles. This […]
Read moreSupply-side economics (and its trickle-down theory) is a zombie, intellectually dead but continuing to roam the halls of the public debate. Witness the 2001 BC elections and the mantra “tax cuts pay for themselves”, a free-lunch argument that we can have tax cuts and not have to pay a price in terms of cutting social programs (note: as of 2007, […]
Read morehttp://www.cepr.net/index.php?option=com_content&task=view&id=1122&Itemid=77 This is a very nice piece from Dean Baker of the CEPR on the delinking of real worker pay from labour productivity growth in the US. I’ve argued for years, with much of the left, that average worker pay has lagged productivity growth mainly because of the increased bargaining power of capital vis a vis labour due to “globalization”, […]
Read moreBill C-30 – the Clean Air Act – is a strange beast – a government bill which was fundamentally re-written by the three opposition parties to finally move Canada towards a real national action plan to prevent catastrophic climate change.The media are so focused on the politics of climate change that little attention seems to have been paid to the […]
Read moreGeorge Monbiot takes us behind the curtain of the IPCC report-making process, and who is really pressuring whom to censor what: The Real Climate Censorship Posted April 10, 2007 It’s happening, it’s systematic, and it is precisely the opposite story to the one the papers are telling. By George Monbiot. Published in the Guardian, 10th April 2007. The drafting of […]
Read moreOver at Economist’s View, Mark Thoma got a snowball rolling (trickling?) downhill by citing a revisionist article by Bruce Bartlett on the history and legacy of supply-side economics. He then put forward a lengthy and useful theoretical response, after which all kinds of interesting commentary followed. I have taken this updated post for a summary, which includes the original oped […]
Read moreThis missive below from the Conrad Black trial must be really embarrassing for Black. Reading about this horrible trip and his feelings of inadequacy next to young honeymooners, I feel kind of sorry for the guy … OK, it’s gone now. What is amazing about the doomed flight is that Conrad could have had it all – and kept the […]
Read moreOver at MaxSpeak, the state of housing and whether or not it is a bubble is reviewed: THE GREAT HOUSING BUBBLE FLAP Probably most who read this blog accept that there was a bubble in the US housing market, and that it has come to an end. Some regulars here, notably the notable Dean Baker, were early out the door […]
Read moreA report from the front lines of the battle over early learning and child care in the United Kingdom, which appears to be in a similar space as Canada – supported by academic and policy elites, but with too little action on the political side to overcome the great inertia of the existing patchwork system. Taking great care We should […]
Read moreTwo recent reports from the Globe below point to the failures of our regulatory system. The first is on bisphenol A, an endocrine disrupter, and the second on trans fats. The challenge is a regulatory approach that insists on bullet-proof evidence of harm – which can take decades to accumulate – before action is taken to remove a chemical from […]
Read moreToday’s Financial Post reports that Ontario’s Premier “is exploring the possibility of joining the B.C.-Alberta free trade initiative.†Specifically, it quotes him as saying, “what I have done is talked to [B.C. Premier] Gord Campbell and [former Alberta premier] Ralph Klein, in the past, and said, you guys seem to have done something which sounds good. I’m not sure the […]
Read moreNeil Reynolds has discovered that a fraction can be increased by reducing its denominator. Because labour productivity equals output divided by employment, he claims that “In manufacturing, you measure success by the number of jobs you eliminate.” By definition, a given volume of manufacturing output produced by fewer workers implies higher manufacturing productivity. However, it does not follow that lost […]
Read more