On inequality, wages and bargaining power matter
The current federal election is being fought against a backdrop of deepening inequality and the social problems that accompany it. Promises to “make things better” will no doubt be uttered throughout the campaign.
As we mark another labour day, it is important to remain discerning of the policies on offer.Read more
Tax credits are not the way to boost innovation
There is a lot of talk about the need to build a “knowledge-based economy” if we are to retain and create good jobs in a world where production is shifting in a major way to lower wage developing countries.
To compete, Canada must indeed produce high value-added goods and services commanding a price premium in world markets because they are sophisticated and unique. But, there are few signs of a sustained transition to a more innovative economy in Canada. Indeed, we are moving in the wrong direction.Read more
Thomas Piketty's body blow to conventional economic wisdom
During the ordinary working of capitalism – absent the extraordinary Great Wars and Great Depression of the first half of the twentieth century – inequality, as manifested in the distribution of wealth, rose over time and promises to continue to do so.
Call that distressing result Piketty’s law.Read more
Canada falling behind on innovation
While we tend to celebrate private entrepreneurship, the state is crucially important in driving and shaping innovation. The question of which economies will thrive and which will lag behind on innovation has a lot to do with sound public policy.
With an economy historically reliant on natural resources and one with high rates of foreign ownership, the role government plays is even more important for Canada.
The upside of slow growth in the labour force
The Finance Department’s long-awaited study on the economic and fiscal implications of our aging population was finally released on Oct. 23. It’s a gloomy outlook that underpins the Harper government’s view that we have to cut government spending today to maintain costly social programs tomorrow.
What the report fails to look at is the positive impacts of slower growth in the labour force, namely the prospect of better jobs and higher productivity.Read more