June 2014

Dodge, Carney and the return of pragmatic economics

Central bank governors are not normally known for being outspoken or critical of prevailing economic policies. Not the case, it seems, for Mark Carney and David Dodge, former governors of the Bank of Canada.

Mr. Dodge, in a report for...

Youth unemployment: a dismal situation requires bold action

The dog days of summer may yet be upon us, and already youth unemployment is a hot topic of conversation.

But talk is cheap. The fact is too many young Canadians are set to wade into another long summer, frustrated and anxious about their grim job prospects.

And little wonder for their anxiety.

There are significantly more youth looking for work today than there are available jobs. As of May 2014, one in seven (13.3%) young people aged 15 to 24, or 380,600 young Canadians, were out of work.Many more are underemployed or have given up looking for work altogether....

Canada's wealth gap is getting harder to close

In his now famous book, Capital in the Twenty-First Century, Thomas Piketty argues that there is a strong tendency for wealth to become concentrated in ever fewer hands unless the economic forces promoting greater inequality are countered by deliberate political choices.

In the case of Canada, Piketty has supplied data which shows that the stock of accumulated wealth has been growing relative to annual national income, from 247% in 1970, to 264% in 1980, to 294% in 1990, then more...