Under current rules, the EI premium rate is supposed to be set at the precise level anticipated by the Chief Actuary to match program revenues with program expenses. (The accumulated surplus of more than $50 Billion run up under the Liberals as a result of deep benefit cuts and slow premium reductions sits in a sort of accounting limbo in […]
Read moreThe business pages are covering this rather arcane issue more and more intensively. The Canadian market for so-called non bank asset backed commercial paper or ABCP has more or less frozen up, leaving some $40 Billion in stranded assets. Much of this seems to be held by large pension funds and other large institutions, with the Quebec Caisse exposed in […]
Read moreThomas Palley, formerly of the AFL-CIO, just posted a very good piece on “The New Economics of Trade” that clearly connects the dots between several themes frequently discussed on this blog.
Read moreThere have been suggestions that the Conservative government’s forthcoming Throne Speech will surrender the federal spending power. Through an op-ed in today’s Globe and Mail, Bob Rae tries to position himself, and presumably the Liberal Party, as defenders of the power. This posturing will help the Conservatives woo Quebec nationalists and help the Liberals appeal to Canadians who believe in […]
Read moreLeading Canadian economist Richard Lipsey (with co author Swedenboorg) has written quite an interesting paper for the NBER, “Explaining Product Price Differences Across Countries.” http://www.nber.org/papers/w13239 The abstract reads as follows: “A substantial part of international differences in prices of individual products, both goods and services, can be explained by differences in per capita income, wage compression, or low wage dispersion […]
Read moreAs usual, the federal surplus has come in far larger than forecast: $14 billion for 2006/07. As legislated through the Tax Back Guarantee, all of the interest savings from this debt repayment will finance personal income tax cuts. Therefore, the 2006/07 surplus will reduce income taxes by $0.7 billion annually. This tax cut will barely put a dent in federal income […]
Read moreCanadian Policy Research Networks have put out what looks like an interesting study. Their blurb follows. The study is at http://www.cprn.org/doc.cfm?doc=1757&l=en Alberta is Canada’s hottest economy. Many Canadians are moving to Alberta drawn by its insatiable demand for skilled workers and professionals. Workers in Low-Income Households in Alberta, prepared for the Alberta Ministry of Employment, Immigration and Industry by […]
Read moreI and David Green from UBC have commented on this topic before. A key question is why we have a program to bring in temporary workers at the prevailing wage, rather than let rising real wages signal job opportuntities and appropriate adjustments in the job market. Bringing in so-called unskilled temporary workers is of concern if such a program works […]
Read morehttp://www.guardian.co.uk/comment/story/0,,2177006,00.html An interesting column – roots of the crisis are seen to lie in the continual injections of financial liquidity required to keep growth going in a global economy with a serious underlying deflationary bias, the result of excess capacity in manufacturing. “Merely cutting the cost of borrowing will do little to remedy the long-term weaknesses of the advanced economies” […]
Read moreSeptember 25, 2007 – The NEB decision: 17 jobs in hand and 18,000 in the bush Wed, 09/26/2007 – 09:40 — Fred Wilson (Full post can be found at http://blogs.cep.ca/en/node/53 Readers of this column have by now seen the reports of the National Energy Board decision to approve the Keystone pipeline. CEP has received extensive media coverage of its […]
Read moreYesterday, the Premier of Alberta addressed the Empire Club in Toronto. He said some encouraging things about Our Fair Share: “We will get a fair economic rent on the development of our resources. In fact we have recently received the recommendations of the Royalty Review Panel that I established as one of my first acts as Premier.” I am not […]
Read moreToday, Statistics Canada released a very interesting study on the economic demand that is driving greenhouse-gas emissions. Between 1990 and 2002, exports outstripped Canadians’ personal expenditure as the leading source of Canada’s industrial emissions. Indeed, exports accounted for essentially all of the increase in these emissions. Canadian Industrial Emissions (in megatons) Final-Demand Category 1990 2002 Exports 176.4 264.4 Personal Expenditure […]
Read moreI spent the morning at Industry Canada’s global supply chains conference. The general tenor of the opening plenaries was as expected – Canadian corporations should slice and dice their supply chains asap to take advantage of lower costs (especially labour costs) in relation to productivity and quality if they are to survive. In a phrase, ‘make Chinese low wages work […]
Read moreIn the online edition of today’s Toronto Star, Arthur Donner and Doug Peters have joined the labour movement and the National Bank in calling for the Bank of Canada to cut interest rates.
Read moreAn interesting memo just cropped up from Costa Rica in the midst of the debate about the Central America Free Trade Agreement (CAFTA), one of the latest installements in the string of plans to free trade and capital flows in the Americas. This memo came from the YES campaign and advocated interesting strategies, such as fostering fear: Beyond what can […]
Read moreLast week, the Royalty Review Panel recommended that Alberta raise its oil and gas royalties. Its 100-page final report, Our Fair Share, has generated healthy debate on a critically important subject. The basic message follows: Albertans do not receive their fair share from energy development and they have not, in fact, been receiving their fair share for quite some time. […]
Read moreStatistics Canada today released an excellent study of high incomes and inequality - http://www.statcan.ca/Daily/English/070924/d070924a.htm Thanks to Michael Wolfson, Brian Murphy and Paul Roberts for getting this powerful data out into the light of day. No big surprises here – the top end grabs a disproportionate share of all income, and their share has been growing apace. The tax data used […]
Read moreOn Friday, the Finance Minister and the Treasury Secretary signed the Fifth Protocol of the Canada-US Income Tax Convention. The Canadian government lined up several business organizations in advance to provide endorsements, which have dominated the media coverage. One of these organizations, the C. D. Howe Institute, made the case for the amended treaty through an op-ed in Saturday’s Financial […]
Read moreThe Financial Post has picked up on my response to the C. D. Howe Institute’s Tax Competitiveness Report and corporate-tax brief to the House of Commons Finance Committee. The Canadian Labour Congress submitted this brief, and one by Andrew on personal income taxes, in August before the prorogation of Parliament delayed the committee process.
Read moreOn closer examination, there does seem to be statistical support for the view that the higher exchange rate is having more of an impact on retailer profits than on consumer prices. Data from the Financial Statistics for Enterprises survey show that operating profits in the trade sector (wholesale and retail trade combined) have jumped from just over $8 Billion in […]
Read moreFurther to my companion post (on the Commodity Price-Exchange Rate Transmission Mechanism), here is an op-ed from Buzz Hargrove that appeared in today’s National Post, responding to yesterday’s parity event. It reflects some of the arguments I made in the companion post about why, exactly, higher commodity prices drive our loonie higher. The policy implications of this view include some […]
Read moreWell, it happened. The petro-fueled loonie broke parity with the greenback yesterday, and is headed higher still. I can’t believe that so many people still interpret this as a symbol of our national renaissance. In fact, the reverse is true. The dollar’s flight both reflects, and simultaneously reinforces (in fine Kaldorian fashion) our regression into serving once again as a […]
Read moreIn successfully seeking the 1980 Republican nomination for President, Ronald Reagan embraced the Laffer Curve theory that tax cuts would increase tax revenues. At the time, rival candidate George Bush Sr. derided this notion as “Voodoo economics” and it has been since been discredited many times. Jack Mintz struggles to revive the theory in today’s 2007 Tax Competitiveness Report, declaring […]
Read moreThe Canadian Labour Congress sent the following letter to the Bank of Canada today. September 20, 2007 David A. Dodge Governor Bank of Canada 234 Wellington Street Ottawa, Ontario K1A 0G9 Dear Governor Dodge: I write to urge you to reduce interest rates by 0.5% on October 16th to match the recent US rate cut. My letter of June 27th […]
Read moreThere’s a piece by Heather Scoffield in today’s Globe on the issue of the impact of exchange rate appreciation on consumer prices. http://www.theglobeandmail.com/servlet/story/RTGAM.20070920.wdollar20/BNStory/Front TD Bank argues that only a modest portion of the fall in import prices is being passed on, while Philip Cross from Statscan argues there is a much tighter link. On the face of it, he has […]
Read moreA clear contradiction has emerged in John Tory’s election promises. It reflects an existing tension in the McGuinty government’s position. As noted previously on this blog, the Conservative Party’s election platform proposes that Ontario join TILMA. As reported in today’s Globe and Mail, Tory has pledged to require that provincially-funded institutions buy their food and beverages from Ontario producers. Such […]
Read moreCIBC World Market recently put out quite an interesting report on the future of world oil supply and demand and the implications for Canada. ( OPEC’s Growing Call on Itself.) http://research.cibcwm.com/economic_public/download/occrept62.pdf The major point is that OPEC countries plus other major oil producing countries such as Russia and Mexico are consuming a fast-rising share of their own oil output at […]
Read moreUpon returning from Montreal, where I volunteered for the NDP on by-election night, I discovered that the US Federal Reserve cut interest rates by a whopping half point. I do not have a fully-formed analysis of either Mulcair’s victory or the rate reduction, but would like to kick-off some discussion on this blog. Mulcair’s win strikes me as an important […]
Read moreI’ve pasted in below quite an interesting analysis of the current financial crisis, by Pierre Habbard of the Trade Union Advisory Committee to the OECD. The Charts have gone missing but are not essential. Financialisation and the “sub-prime†financial crisis – Issues for future regulation TUAC Secretariat Paris, 5 September 2007 The phenomenal growth of the derivative […]
Read moreHuman Resources and Social Development Canada have posted a research report http://www.hrsdc.gc.ca/en/publications_resources/research/categories/inclusion/2007/sp_680_05_07_e/sp_680_05_07e.pdf It is no secret or surprise that new immigrants (86% of whom are workers of colour) face more significant labour market barriers than other working-age Canadians, and that they are at greater risk of experiencing poverty. But more empirical detail is always useful. This study uses StatsCan (SLID) […]
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