On Trumponomics and China
While Canadians are understandably focused on what the election of President Trump means for our bilateral trading relationship and the future of NAFTA, a much bigger issue for the global economy is the pending clash between the United States and China.
Read more2017 budget falters on progress, tax fairness
The major challenge for the federal government in the budget was to maintain its commitment to progressive social and economic policies in the face of criticism from the right for its supposedly profligate fiscal policies and unwise promises to make the tax system more progressive. The government was also urged to trim its sails in the face of pending tax cuts in the United States.
Read moreDoes Trump signal the end for free-market capitalism?
Donald Trump’s ascension to the US presidency is being hailed by some as the end of globalization as we have come to know it in the last four decades. Others see in Trump’s electoral victory the end of neoliberal economic policy, which promoted free trade and free markets, and limited the scope of government. But German sociologist Wolfgang Streeck discerns in the demise both of globalization and neoliberalism the end of capitalism itself, at least the variety of capitalism that exists in North America and Western Europe.
Read moreTaxing dividends: the case for reform
Special tax treatment of dividend income costs a lot in terms of foregone government revenues, mainly benefits the very affluent, and thus merits serious re-consideration as part of the federal government's current review of tax expenditures.
Read moreTrump, Canada and life after NAFTA
The election of President Trump and the potential imposition of border taxes and other protectionist measures is clearly of great concern to Canadian exporters, the workers they employ and the communities they support. This underlines just how much NAFTA and the wider liberalization of trade with rising economic powers such as China have shaped our economy and made us highly vulnerable to forces outside our control.
Read moreBig cities much more unequal than Canada as a whole
It is no secret that big, global cities like London and New York are highly unequal and display harsh extremes of wealth and poverty. This is increasingly true of Canada's largest cities, as shown by recently released Statistics Canada data on the geographical distribution of high income earners.
Read moreThe case against privatization and P3s
When the Liberal party campaigned and won in 2015 on making significant new investments in infrastructure, there was cause for optimism.
Read moreThe digital economy will not power a recovery
Economists and pundits are at odds over medium term prospects for the global economy. Pessimists see stagnant growth, rising inequality and growing unemployment and underemployment, widely held to be responsible for the rise of right-wing populists such as US President elect Donald Trump.
Meanwhile, techno optimists such as Erik Bryjolfsson and Andrew McAfee, the authors of The Second Machine Age, argue that the digital economy will drive rapid productivity growth and underpin the gradual emergence of a post scarcity economy capable of providing prosperity for all.
Read moreForeign investment not always a benefit
The federal government heeded the advice of the business dominated Economic Advisory Council and set out a new welcome mat for foreign investors in the recent Economic Statement . The threshold for review of foreign take-overs of Canadian companies will be raised from $600 Million to $1 Billion (up from just $369 Million in 2015); a new agency, the Invest in Canada Hub, will be set up with a mandate to woo foreign corporations; and reviews of the security implications of foreign take-overs are likely to be limited.
Read moreLiberal fiscal plan scales back "historic" infrastructure spending
The Trudeau government's fiscal plan as updated in the Fall Economic Statement meets a number of progressive commitments, but also raises a lot of questions about what can be expected of the federal Budget to be tabled next March.
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