As nations reset their economies following the Covid crisis, one focus is on reducing the inequality that has become an increasing threat to political stability. An obvious instrument to achieving this is higher taxes on the rich. However, conservative economists say we must keep taxes on high income earners relatively
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The Progressive Economics Forum: Ten things to know about this year’s Alberta Alternative Budget
The Alberta Alternative Budget (AAB) is an annual exercise whose working group consists of researchers, economists, and members of civil society (full disclosure: I’m the Editor). Our general mandate is to create a progressive vision for Alberta to boost economic growth and reduce income inequality. This year’s document was released
Continue readingThe Progressive Economics Forum: MEDIA RELEASE: Alberta should increase social spending; cuts are not the way to go
(June 24, 2019-Calgary) With Alberta’s economy still facing challenges and vulnerabilities, the Alberta government should not be doling out tax cuts or cutting social spending, according to the Alberta Alternative Budget (AAB) released today. “Alberta still has, by far, the lowest debt-to-GDP ratio of any province,” says Nick Falvo, editor
Continue readingAlberta Politics: Third quarter financial results released by Alberta Finance Minister Joe Ceci suggest NDP economic strategy is working
PHOTOS: Alberta Finance Minister Joe Ceci, basking in the fiscal sunshine. Below Joe: Alberta Premier Rachel Notley, like Mr. Ceci, a New Democrat; Opposition UCP Leader Jason Kenney; and Alberta Party Leader Stephen Mandel. In one regard, Alberta’s NDP Government and its principal Opposition parties are in agreement about how
Continue readingThe Progressive Economics Forum: Smooth Sailing Ahead For the Global and Canadian Economy?
The consensus forecast of just about everybody – the IMF, the OECD, the Bank of Canada, the Canadian banks – is that Canada will share in a global recovery from the stagnation which followed the financial crisis of a decade ago. All of the major economies – the US, the
Continue readingThe Progressive Economics Forum: Fiscal situation of Canada’s ‘oil rich’ provinces
I’ve just written a blog post about the fiscal situation of Canada’s ‘oil rich’ provinces (i.e., Alberta, Saskatchewan and Newfoundland and Labrador). It consists of a summary of key points raised at a PEF-sponsored panel at this year’s Annual Conference of the Canadian Economics Association. Points raised in the blog
Continue readingThe Progressive Economics Forum: A Response to the 2017 Saskatchewan Budget
I have an opinion piece on Saskatchewan’s recent budget in the Regina Leader-Post. Points raised in the opinion piece include the following: -Reductions in personal and corporate income taxes help the rich more than the poor (and this budget cut both personal and corporate income taxes). -Increases in sales tax
Continue readingThe Progressive Economics Forum: The Alternative Federal Budget 2017
This year’s Alternative Federal Budget (AFB) was released on March 9. I was proud to be the primary author of its housing chapter (that chapter is available in English here and in French here). The first AFB exercise began in 1994, with the first AFB being published in 1995. That
Continue readingThe Progressive Economics Forum: How do you solve a problem like precarious work?
Finance Minister Bill Morneau has taken quite a bit of heat for his tone deaf comments about the reality of precarious work, specifically saying that we should just “get used to job churn”. But his policy prescription, an improved social safety net, is a quite valid part of the solution. But
Continue readingNorthern Reflections: The Meaning Of "Growth"
Economists are obsessed with growth. Unfortunately, Jim Stanford writes, they define the term much too narrowly — because they assume that good growth is inextricably linked to profit. Progressives should be fighting this idea. Growth means much more …
Continue readingThe Progressive Economics Forum: Is Slow “Growth” Inevitable?
Most of the world economy (including Canada’s) has performed sluggishly since the Global Financial Crisis of 2008-09. And many economic and fiscal projections now accept this pattern of slow growth as more-or-less inevitable, as a “new normal.” This argument is typically invoked to justify a ratcheting down of expectations regarding job prospects, incomes, and public […]
Continue readingThe Progressive Economics Forum: How to Solve a Problem like Internal Trade Barriers?
The updated agreement on internal trade, which had been moving along nicely, has hit a snag. Negotiators had wanted to open up all government procurement (meaning, not allowing any preferential treatment for local contractors). Alberta has asked to be allowed to require 20% local employment in government procurement. The other feature that is particularly troublesome is […]
Continue readingThe Progressive Economics Forum: Minimum wages as economic stimulus?
The Alberta Federation of Labour has an excellent minimum wage campaign, called “15 is fair”. I provided some research support for a paper they produced on the positive economic impact of increasing minimum wages, which you can read in full here, but I wanted to share some of the key points. Increasing the minimum wage […]
Continue readingThe Progressive Economics Forum: Jobs and Growth after the Great Recession
This is the time of year when articles list their favourite things about last year, and their “things to watch” for the next year. Naturally, my “things to watch” list will always include the labour market. Where have we seen the strongest job growth or worst job losses, and what are the trends that might […]
Continue readingThe Progressive Economics Forum: Making Real Change Happen
Today’s throne speech was notable for its brevity, but there were certainly a lot of priorities packed into those 1600 words. A small selection: “The Government will, as an immediate priority, deliver a tax cut for the middle class.” This is quite easily my least favourite action promised by the new Liberal government. The plan increases the […]
Continue readingThe Progressive Economics Forum: #HarperEconomy: From Worst to … Worster?
As this marathon election campaign enters its final days, it is interesting to look back on the evolution of the economic debate during the past 11 weeks on the hustings. The Harper Conservatives once again tried to play the “economic card,” claiming their policies are essential to Canada’s future growth
Continue readingThe Progressive Economics Forum: Balanced Budget Myopia Breaks Both Ways
Opinions on deficit budgeting have become a short-hand litmus test in Canadian politics. Deficits are left-wing and balanced budgets are right-wing austerity. Economists know that there is virtually no difference between a small surplus and a small deficit, but politicians and voters are a different story. I have spent the past
Continue readingThe Progressive Economics Forum: Canada After Harper
Here is the link to buy a new book, Canada After Harper, edited by Ed Finn and with an introduction by Ralph Nader, just published by Lorimer. Most Canadians know that Stephen Harper has had a tremendous impact on the country since becoming prime minister in 2006. But few have
Continue readingThe Progressive Economics Forum: Canada: World’s Next Superpower? Only If We Stop Relying On Temporary Foreign Workers
It’s only been a couple of weeks since Disney, that most iconic of American companies, moved to displace all its home grown techies with low-cost foreign temporary workers, But the company had to beat a hasty retreat in the face of an outpouring of criticism. Amid the deluge of commentary
Continue readingThe Progressive Economics Forum: Judging the Odds for an “Election Recession”
Canada’s first-quarter GDP report was not just “atrocious,” as predicted by Stephen Poloz. It was downright negative: total real GDP shrank at an annualized rate of 0.6% (fastest pace of decline since the 2008-09 recession). Nominal GDP fell faster (annualized rate of 3%), as deflation took hold across the broader
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