Recently, CLC President Ken Georgetti sent the following letter to Jim Flaherty: May 8, 2007 Honourable Jim Flaherty, P.C., M.P. Minister of Finance House of Commons Ottawa, ON K1A 0A6 Dear Minister: On behalf of the Canadian Labour Congress (CLC), I write to express our support for your promise, in Budget 2007, to end the corporate-tax deduction for interest on […]
Read moreI lumped it up yesterday when my fill-up closed at just shy of $50. After all, gas should be expensive, as a means of encouraging us to drive less. But what if the main reason for the hefty increases is gouging by oil and gas companies? It’s one thing for governments to reap the gains of higher prices if they […]
Read moreUBC’s Max Cameron (who wrote a great book on NAFTA back in the day) looks at endemic corruption in Latin America; in this case, a Peruvian congresswoman who put her maid on congressional payroll as a “political advisor”. (As an aside, those back east might be interested to learn about a major corruption trial underway in BC right now involving […]
Read moreTrue to form, the Liberals will put forward a motion tomorrow calling for the tax-deductibility of foreign-affiliate interest and for lower taxes on income trusts in the name of economic nationalism. UPDATE (May 10): The Canadian Labour Congress has released a letter opposing the motion.
Read moreA dispatch from Ellen Gould that is a bit nebulous on the surface: Bolivia, Venezuela and Nicaragua are withdrawing from the International Center for Settlement of Investment Disputes (ICSID). Ellen explains: It’s a little bit complicated to understand why this is such fantastically positive news, but this development basically means Bolivia, Nicaragua, and Venezuela are making it far more difficult […]
Read moreLAUREL ROTHMAN AND ARMINE YALNIZYAN Special to Globe and Mail Update May 8, 2007 at 12:37 AM EDT Canada‘s child and family poverty rate is down to 11.7 per cent in the latest Statistics Canada report, released last week. So why aren’t anti-poverty activists breaking out the bubbly? Because that rate is exactly what it was in 1989, when parliamentarians […]
Read moreWhat follows are the Chair’s conclusions from the G8 Employment Minister’s Conference in Dresden. I post this as an expample of the current conventional wisdom of social and labour market policy (which has changed a bit for the good in the wake of the most recent OECD JObs Studay) and as an aide memoire that Canada signed on to a […]
Read moreIt looks as though Jim Flaherty’s strange journey around the tax-deductibility of interest on loans to finance foreign affiliates is about to end badly. The following story seems to confirm that, under pressure from big business and the Liberals, he is set for “a complete reversal of the budget announcement”: Flaherty retreats from tax deduction on foreign investment loans Eric […]
Read moreSince 2002, almost 250,000 manufacturing workers have lost their jobs because of the high dollar and our huge and growing trade deficit with developing Asian countries. Many are older workers who will typically face a long stretch of unemployment, followed by employment in a new job at much lower wages. Our Employment Insurance (EI) program still provides an important income […]
Read moreYesterday’s International Merchandise Trade Annual Review from StatsCan confirms the Mel Watkins thesis that Canada is rapidly reverting to its historical role as a commodity producer for the global economy. http://www.statcan.ca/Daily/English/070508/d070508a.htm From 2002, the Canadian dollar began to appreciate rapidly against the US dollar (and Asian currencies tied to the US dollar) in response to a commodity price boom, itself […]
Read moreIn our paper, Putting Canadians at Risk, Bruce Campbell and I feared that lowering our regulatory standards would inevitably happen under the banner of “regulatory cooperation” with the US, something senior government officials think is just great. While this might look like typical Harper policy, it is really just a continuation of an initiative that gained steam under the Martin […]
Read moreMore good work from the CCPA: Ontario’s rich-poor gap is huge: study Report shows wealthiest 10% earn 75 times more than poorest 10% April Lindgren The Ottawa Citizen Tuesday, May 08, 2007 Â TORONTO – The income gap between Ontario’s richest and poorest families is greater than ever before and the most pronounced in the country, according to a study […]
Read more“Within the bank’s powerful executive board, support for Mr Wolfowitz has narrowed to just three countries – the US, Japan and Canada, although both the Japanese and Canadian governments have recently come under domestic pressure to withdraw their backing.” Â From today’s Guardian story on the imminent demise of the nepotistic neo con. http://business.guardian.co.uk/story/0,,2074592,00.htmlÂ
Read moreSo just as I was about to leave to give a lecture on taxes (and why high tax Nordic countries are not in economic ruins), my tax return for 2006 arrived in the mail. This is truly good news because I got a big refund. In all, I paid about 20% of my income in taxes last year, which seems […]
Read moreIn a column written before this weekend’s presidential run-offs, Mark Weisbrot unspins the misleading numbers behind the French elections: Economic Misinformation Plays a Major Role in French Election The elections in France demonstrate the power of faulty economic analysis, and more generalized problems with arithmetic, to shape ideas and possibly the future of not only a nation, but a continent. […]
Read moreUnfortunately, it looks like the Finance Minister may be folding on foreign-affiliate interest-deductibility.
Read morePerhaps telegraphing some of his coming remarks in Halifax when he joins the Progressive Economics Forum for the inauguration of the John Kenneth Galbraith Prize in Economics, James Galbraith reflects on his father’s The New Industrial State. If you find yourself in Halifax on June 3, noon, please join us at Dalhousie’s McCain Building, Room 2017 (note this is a […]
Read moreDani Rodrik says it is much better to be poor in a rich country than it is to be rich in a poor country (top and bottom deciles, that is, for “rich” and “poor”): The correct answer is that a poor person in a rich country is three times better off than a rich person in a poor country (given […]
Read moreThe following, from today’s Toronto Star, includes some commentary from yours truly: The China syndrome: A new condition characterized by the apparent reluctance of a certain national government to embrace an emerging, global economic power May 05, 2007
Read moreMarc’s recent post prompted me to look at transcripts from the Senate hearings on “issues dealing with interprovincial barriers to trade.” The following passage caught my attention: The Chairman: Let me suggest something that tantalized me when I first looked at this question well over 30 years ago, and more recently — the economics of it. I think one of […]
Read moreAsking business whether to get rid of government regulations is much like asking a barber whether to get a haircut. Nevertheless, the Conference Board’s main (and only) evidence in projecting TILMA’s benefits for BC and Saskatchewan were surveys of business organizations and government departments. In our paper, Marc and I noted some serious problems with the BC survey as well […]
Read moreNaomi Klein takes a look past Wolfowitz to the real corruption at the World Bank: World Bank sullied before Wolfowitz It’s not the act itself; it’s the hypocrisy. That’s the line on Paul Wolfowitz, coming from editorial pages around the world. But it’s neither the act (disregarding the rules to get his girlfriend a pay raise) nor the […]
Read moreOut of the blue yesterday I got a call from the Chair of the Senate Committee on Banking, Trade and Commerce, Jerahmiel S. Grafstein. An honour, I suppose, because he was personally inviting me to testify before the committee on interprovincial trade barriers. I was somewhat caught by surprise and had no idea who he was (turns out he’s a […]
Read moreHockey players are not the most sophisticated breed of human animal out there, but among the lot Shane Doan is one of the classier ones. So it is a bit much to hear Doan being called out on the legislative mat – in the House of Commons of all places – for being Team Canada’s captain, all over some passing […]
Read moreAs noted in December using 2002 figures, Saskatchewan imports more from its prospective TILMA partners than it exports to them. The 2003 figures are now available: Saskatchewan’s trade deficit with Alberta was $2.1 billion and its trade deficit with BC was $0.4 billion. Since there are currently no significant barriers to inter-provincial trade, signing TILMA would not significantly increase inter-provincial trade […]
Read moreIt truly boggles the mind how people can contemplate flying to Iceland in order to board a boat to watch global warming happen in Greenland. So this is capitalism’s response to climate change. Sigh. A holiday at the end of the Earth: tourists paying to see global warming in action By Michael McCarthy, Environment Editor Published:Â 03 May 2007 Bored […]
Read morePrivate equity has raised more concerns on the other side of the Atlantic than in North America. Andrew Jackson made some comments on the topic on RPE a month ago. Whether David Dodge has been dropping in on RPE is not clear (we will FOI his browsing history), but at any rate, it is welcome for him to weigh in […]
Read moreHow Denmark Paved Way To Energy Independence Thirty-Year Plan Uses Wind, Taxes, Pig Fat; Consumers Pay More By LEILA ABBOUD April 16, 2007; Page A1 HORSENS, Denmark — Nothing goes to waste in the new Danish Crown slaughterhouse in eastern Denmark. Even the inedible fat of 50,000 pigs killed and processed here each week is used to heat the plant. […]
Read moreAs Joe Kuchta points out, the Conference Board’s assessment of TILMA’s potential effects on Saskatchewan embodies the same basic flaws as its previous assessment for BC. Joe also notes that, like its predecessor, the Saskatchewan assessment features what appear to be arithmetic errors.
Read moreI have to say I have a soft spot for Margaret Wente. Sure, she is a conservative who sounds off frequently on issues that she really has no business writing about. But, boy. is she a good writer and she has a knack of connecting with the same deeply embedded conservative populism that Harper likes to mine. Today I was […]
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