To mark the launch of ‘Inequality and the Fading of Redistributive Politics’, a seminal new edited volume on inequality in Canada, the Broadbent Institute is featuring a series of posts from the book’s contributors. Today, we present a piece from economist and Broadbent Fellow David Green.
In the mid-1990s, Canada went through a policy paradigm shift, one that had far-reaching implications for the employment opportunities and wages of Canadian workers.
One of the major forces behind the rapid increase in the income share of the top 1% in the United States and Canada has been rising senior corporate executive pay, especially in the form of stock options.
The majority of the top 1%, and an even higher proportion of persons in the ultra-wealthy top 0.1%, are either senior managers of non financial companies or work in the financial sector where stock options are usually the biggest single part of total compensation.
Posted by John Myles and Keith Banting · October 17, 2013 10:58 AM
To mark the launch of ‘Inequality and the Fading of Redistributive Politics’, a seminal new edited volume on inequality in Canada, the Broadbent Institute is featuring a series of posts from the book’s contributors. Today, we present a piece from the book's editors: Keith Banting and Broadbent Fellow John Myles.
The core message of Inequality and the Fading of Redistributive Politics is that democratic politics and income inequality in Canada are deeply linked. The surge in inequality, which occurred primarily in the 1990s but whose effects persist, was only partly the result of globalization and technological change.
During the last federal election, Stephen Harper promised that his Conservative government would introduce a new way to tax families with children after balancing the federal budget.
We are likely to hear a lot more about the merits of Harper's 'income-splitting' proposal before the 2015 election. The Conservatives continue to slash spending and erode public services precisely in order to create the fiscal room for this promised tax cut. Never mind that Mr. Harper’s aggressive agenda of tax cuts has already helped turn a $16 billion surplus in 2006 into annual deficits.
Not content with the recent Harper government decision to trim program costs by raising the age of eligibility for Old Age Security and the Guaranteed Income Supplement (OAS/GIS) from 65 to 67, the Fraser Institute wants to withdraw OAS benefits from more seniors.
They propose to claw back OAS benefits from seniors with individual incomes of more than $51,000, instead of the current clawback level of $71,000. Under their proposal, benefits would be entirely lost at an income of $95,000, instead of the current $115,000.
On September 24th, 2013, Broadbent Institute Chair Ed Broadbent gave the 2nd annual Jack Layton Lecture at Ryerson University. In this speech, Ed Broadbent connects the philosophy and historical successes of social democracy with today's social and political challenges.
Over the past fifty years, social democrats — both in government and out — have achieved great progress. The creation of the middle class, the extension of new rights to previously disadvantaged groups like women and gays and lesbians, and an openness to new movements like environmentalism are some of the many advances that social democracy can claim credit for.
But what now? Are the dreams of social democracy and the cherished social programmes of Canadians still affordable? Broadbent's answer is yes. And he urges a confident reassertion of the social democratic values cherished by Canadians and a political leadership that will take us beyond indifference and cynicism to build a better Canada for us all.
Posted by Ryan Meili · September 25, 2013 12:34 PM
Social factors play a significant role in determining whether we will be healthy or ill. Our health care is but one element of what makes the biggest difference in health outcomes. This has been understood for centuries, and empirically validated in recent decades with study after study demonstrating health inequalities between wealthy and disadvantaged populations.
Yet political conversations about health still tend to fall into familiar traps. When we talk about health we return by reflex to doctors and nurses, hospitals and pharmacies. And when we talk about politics — the field of endeavour with the greatest impact on what determines health outcomes — a narrow and economistic outlook seems to trump any attempts to address those social determinants.
The high-profile Toronto Centre federal by-election features two well-known opposition candidates who agree that soaring income inequality, especially the fast-rising income share of the top 1% with all of its well-documented negative effects, is the defining political issue of our times. At issue is what we should be doing about it, through changes to public policy.
In thinking about this question, it is useful to distinguish between policies that affect the distribution of income by the market (called predistribution) and policies that make incomes after taxes and transfers more equal than market incomes (redistribution).
Every month, Statistics Canada comes out with the unemployment rate, and every month it gets a lot of attention. But the unemployment rate provides quite limited information about the actual health of the labour market.
The addition of two other pieces of information nearly doubles the unemployment rate: the proportion of the labour market employed part-time but looking for more work, and the proportion that would like a job but aren’t actively looking for work, and so aren’t officially counted as being in the labour market.
A new study by the Fraser Institute argues that introduction of anti-union “right to work” laws in Canada would boost manufacturing output and jobs. While they are right that these laws, which make dues payments voluntary, severely weaken unions, it is far from evident that unionization comes at the cost of poorer economic performance.
This is because collective bargaining has benefits for employers as well as for workers, and because collective bargaining outcomes reflect economic realities.