Economy

On April 2nd, political economist and giant of the Canadian left, Mel Watkins, passed away.

At this time, it is impossible to know the course and consequences of COVID-19 cases arising from the novel coronavirus. A probable outcome seems to be a spread of the illness among the general population, before it stabilizes and/ or an effective vaccine is developed which could take several months or even longer

In recent years, progressives and social democrats have begun to embrace a much bolder tax fairness agenda than was the case even five years ago. This is especially true in the United States where Democratic Presidential candidates Bernie Sanders and Elizabeth Warren have both made the case for a significant tax on large holdings of wealth, the closure of personal tax loopholes for investment income such as stock options, and serious corporate tax reform. In the 2019 federal election, the NDP similarly called for a wealth tax, higher taxation of capital gains in the personal income tax system, and a higher corporate tax rate.

There is no doubt that cost of living concerns loomed large during Canada’s federal election. Historically, economic angst has been fertile ground for a standard Conservative pitch to the electorate – one that promises to end government waste and interference, lower taxes, and put money back in our pockets so that we can seek out our own path to success. That seems to have been Andrew Scheer’s play, summed up nicely in his campaign slogan “It’s time for you to get ahead”. 

The Conservative platform put forward by Andrew Scheer delivers tax cuts for the relatively affluent, to be paid for by largely unspecified cuts to spending on social programs and public services. That is a poor deal for ordinary working families who get much more each year in program benefits like public health care and post-secondary education and child benefits and public pensions than they pay for in personal income taxes.

In May, Democratic presidential candidate Joe Biden caused a small media storm when comments he made that he had no empathy for millennials who argue they face more difficult economic circumstances than previous generations circulated on social media. Biden was only the most recent public figure to weigh in on what’s become a hot topic over the past few years.

Solidarity has long been a standing principle of social justice advocates, but in the face of the current crisis of inequality and the concentration of power and money, solidarity is an essential ingredient of change. This was the message at a day-long workshop the Power Lab recently convened with a multitude of organizers, from public transit activists based in Scarborough to community benefits advocates based in Jane-Finch, on how to strengthen our collective fight for fair economies.

If there’s one thing top of mind for most folks, it’s the cost of living. Recent polling commissioned by the Broadbent Institute showed that whether it’s housing, healthcare, or simply paying for daily basics like food, Ontarians and the rest of Canada are worried that their largely stagnated incomes just can’t keep up. And they expect their government to start doing much more to make life affordable.

Statistics Canada has just released the Canadian Income Survey for 2017.

This blogpost appeared in the Globe and Mail on February 18th. 

By now, everybody is surely aware that the core commitments of the Liberal federal government are to “build a strong middle-class” and “help those working hard to join it.” But economic progress and social progress over the past three years seems to have been very limited, and it is far from clear that the government is pursuing the best overall strategy to promote higher living standards and greater income equality.