We all know that the wages and compensation individuals receive in private competitive markets reflects their productivity, unless pesky unions and government regulations get in the way–because Economics 101 (and Michael Hlinka) have told us so. Corporate CEOs are worth every penny their “independent compensation committees” award in compensation and stock options them because they are “creating value” […]
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The Progressive Economics Forum: Wage Deflation Confirmed
In an earlier post, I noted that falling real wages as indicated by July and August data from the Labour Force Survey which showed increases of just 1.4% in hourly wages over the past year signalled trouble ahead: “If this trend continues, it is likely to further undermine a weak recovery, negatively impacting upon consumer […]
Continue readingThe Progressive Economics Forum: Why even conservatives are worried about rising inequality
This essay was commissioned by the National Post. It was published in today’s edition under the headline “A Problem for Everyone“. In the print edition, the overline – a large font summary of what you are about to read written by the editors – reads: “Income inequality isn’t just unfair — it threatens the whole […]
Continue readingThe Progressive Economics Forum: Falling Real Wages Signal Trouble Ahead
The Labour Force Survey for August showed that average hourly wages were up by just 1.4% from a year earlier, the same low level of increase as was registered in July. Consumer price inflation was 2.7% in July, a bit down from 3.1% in June and 3.7% in May, but it seems that we have […]
Continue readingOn the Ontario NDP’s 2011 platform.
Okay. The Ontario NDP’s platform. The Plan for Affordable Change (warning: PDF). Jeez, focus-group that name much? I’m splitting this into the four areas that the ONDP did in the platform, for ease of reference.1. Making life affordableYou mean it’s no…
Continue readingThe Progressive Economics Forum: Use University Research to Increase Manufacturing Jobs
Manufacturing jobs have been declinining as a percentage of total jobs in most OECD countries for several decades, with Ontario being especially hard-hit as a jurisdiction. At the end of the Second World War, manufacturing jobs accounted for 26% of all Canadian jobs; by 2007, this figure had dropped to just 12%. And as I’ve […]
Continue readingThe Progressive Economics Forum: Incomes and the Recession
Today’s Statscan release “Incomes of Canadians” provides data for 2009 and a partial reading on the impacts of the recession. (I say partial because the 2008 annual average data were impacted by the onset of the recession in the last quarter of the year, and since these impacts continued well into 2010.) The data give […]
Continue readingThe Progressive Economics Forum: The Case Against Wage Insurance
At the CEA meetings I participated on a panel organized by IRPP to discuss a recent paper – by Finnie and Gray – on older laid-off workers and the policy option of “wage insurance.” The paper shows that older laid off workers leaving stable jobs and finding new employment typically experience significant declines in earnings […]
Continue readingThe Progressive Economics Forum: Is Canada’s Economy Wage-Led?
The parenthetical reference to Canada in my last post prompted several good comments. This post attempts to summarize and address them. Dr. Stockhammer has co-authored a paper with estimates for Canada, but he would be the first to note that they are mechanical and not necessarily relevant to policy. He finds that Canada’s domestic economy […]
Continue readingThe Progressive Economics Forum: Do Wages or Profits Lead Growth?
Earlier this month, I served as the discussant for a presentation by Engelbert Stockhammer, an economics professor from Kingston University in London. He was speaking at a conference organized by the workers’ representation to the International Labour Organization (ACTRAV). Stockhammer reviewed two antithetical strategies for economic growth. The pro-labour strategy aims to increase wages by […]
Continue readingThe Progressive Economics Forum: Shock and Awful – The Truth Behind CIT Cuts
Cutting corporate income taxes doesn’t create jobs. They may raise wages, but probably not for you and me. And they mean Canadian taxpayers are paying more….to help the Americans pay down their debt Here’s how I know these things to be true: Yesterday SUN TV rolled out its first full day of programming. The prime […]
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