Just when you thought things couldn’t get any slower, Ottawa has yet another rationale for delaying greenhouse gas (GHG) regulations for oil and gas companies. Worryingly, this one comes straight from the top.
In a year-end interview with Global News, Prime Minister Stephen Harper said that he hasn’t introduced regulations to curb GHG emissions from oil and gas production because he wants to move at the same pace as the United States.
In the prime minister’s words, oil and gas “is an integrated sector continentally …our government is certainly prepared to work with the United States on a regulatory regime that will bring our emissions down. But I think this would be best done if we could do this in concert with our major trading partner, given as I say it is a seamless industry in North America. So that’s what I’m hoping we’ll be able to do over the next couple of years.”
Over the next couple of years?
For the first time ever, the percentage of Canadian seniors aged 65 to 69 who are still working rose to more than one in four in the autumn of 2013.
As shown by Statistics Canada, while the life expectancy of Canadians has been steadily rising, the average number of years spent not working has actually been stable since the mid-1990s – due to the fact that more and more seniors continue to work past the traditional age of retirement.
Surrounded as we are by the tunes and decorations of the holiday season, Industry Minister James Moore’s recent uncharitable comments about child poverty and hunger invoke inevitable comparisons to Charles Dickens’ famed miser Ebenezer Scrooge. One could easily imagine Scrooge haughtily asking his nephew, “Is it my job to feed my neighbour’s child? I think not.”
The spirit of Moore’s comments offend the many Canadians who do think that if their neighbour’s child goes hungry it ought to concern them, that our responsibility for each other goes beyond the walls of our own homes. The attitude behind such comments is far from admirable, and disappointing to hear voiced by any elected official. It’s a position far from the values of Canadians.
Perhaps more disturbing from the Federal Ministry of Industry, however, is the comment that poverty is not Ottawa’s problem.
Finance Minister Jim Flaherty says the economy is too weak to support a modest, phased-in increase in Canada Pension Plan (CPP) premiums divided between employers and employees.
This is disputed by experts, and also contradicts Conservative messaging in two important ways.
First, in every other context, from the Speech from the Throne, to the recent Economic and Fiscal Update, the Conservatives have bragged about Canada's economic performance and highlighted the chances of a strong recovery. Except when it comes to the CPP debate, "the land is strong."
The standard view in economics and in policy circles is that wage increases come at a cost that impacts individual firms negatively. According to this view, wage increases also lead to losses in a firm’s competitiveness in foreign markets. Thus, until the advent of the global financial crisis, mainstream authors paid little attention to the fact that wage growth had lagged behind the sum of productivity growth and inflation, in most countries and for several decades, and that as a result wage shares had fallen. There was also little concern with the rise in wage dispersion— the gap between the income share of the top 1% and the rest that became a part of the lexicon during the Occupy Wall street movement.
There is broad agreement across the political spectrum that we need to create more 'good middle-class jobs', especially for young people leaving the educational system, recent immigrants to Canada, and aboriginal persons.
Middle-class jobs can be seen as those which provide decent pay, working conditions, and benefits; a measure of employment security; and, above all, opportunities to build skills and progress over time in a career. In today's labour market, these kind of jobs generally require a professional or advanced technical qualification acquired through postsecondary education.
The Parliamentary Budget Office has come out with a report suggesting that the Conservatives will likely balance the budget ahead of schedule. But, and it’s a big but, they also found there would be no balanced budget in 2016 if there were no Employment Insurance (EI) surplus.
The Conservatives' use of the EI surplus to pay for a balanced budget deserves closer scrutiny.
Today, Finance Minister Jim Flaherty said he is opposed to the provincial proposal to expand the Canada Pension Plan (CPP) because it is not a “modest” proposal and would cost jobs. In fact, according to pension expert Robert Brown, the provincial plan would gradually raise employer CPP premiums by 1.55%, starting at earnings above $25,000.
That sounds pretty modest.
In October, 2011, two leading U.S. economists, Nobel prize-winner Paul Krugman and Lawrence Summers, squared off in Toronto in the high-profile Munk Debates. At issue was the question of whether North America faced a Japan-style era of prolonged economic stagnation.
Mr. Summers, former Treasury secretary under president Bill Clinton, a key White House economic adviser in President Barack Obama’s first term, former president of Harvard University, and for a time a highly paid adviser to a leading hedge fund, is as close to an establishment economist as one can get. He was widely reported to be President Obama’s personal choice to replace Ben Bernanke as chairman of the Federal Reserve Board, and probably would have been nominated if not for strong opposition from the many Democratic senators who saw him as too close to Wall Street.