Assorted content for your weekend reading.
- Dean Baker discusses some of the myths about the effects of corporate globalization - with particular attention to how our current trade and immigration structures are designed to provide easy profits for capital at the expense of labour around the world. And Jason Hickel reports on new research showing how the developed world (or at least its upper class) is extracting trillions of dollars from the countries which can least afford to lose them.
- James Kwak comments on the massive gap between the effects of minimum-wage increases as threatened based on oversimplified economic theories, and the real-world impacts which have been beneficial for workers and the broader economy alike.
- The International Labour Organization reviews the continued lack of secure employment around the globe. And Ashley Cowburn reports on the UK public's strong support for the idea of reining in CEO income compared to that of a business' general workforce.
- Alexander Kaufman highlights Rex Tillerson's implausible denial that he has any idea Exxon and other oil companies enjoy public subsidies. And Ross Belot points out that based on then Libs' combination of nominal greenhouse gas emissions targets and plans which fall far short of meeting them, we're likely to see yet another public giveaway to the oil sector in the form of carbon bailouts.
- Finally, Dennis Gruending offers his take on the need for a public response to the threat of mass surveillance.
Saturday, January 14, 2017
Friday, January 13, 2017
Friday Morning Links
Assorted content to end your week.
- Per Molander examines new research on the sources of inequality which concludes that massive gaps in wealth and income inevitably arise purely out of chance rather than any individual merit:
- Lola Butcher discusses how a housing first strategy can more than pay for itself by reducing burdens on the health care system and other social programs. And Marc Lee points out that tax incentives and subsidies for landlords figure to be far less effective than direct investment in affordable housing.
- Timothy Sawa and Lisa Ellenwood report on the massive amounts of money wasted on high-priced prescription drugs. And to her credit, Jane Philpott is at least examining how to reduce the cost of inflated drug prices - though it remains to be seen when that will lead to actual policy changes.
- Finally, the CCPA's submission to the SaskForward consultation process examines the futility of austerity.
- Per Molander examines new research on the sources of inequality which concludes that massive gaps in wealth and income inevitably arise purely out of chance rather than any individual merit:
Differences in income or assets that are based on differences in capabilities or effort are widely considered to be legitimate, but it is easy to verify that all observed differences cannot be explained in this way. In its 2016 report on the global distribution of wealth, Oxfam International reported that the richest 62 persons in the world own as much as the poorer half of the world’s population, about 3.5 billion people. Clearly, one person cannot be 100 million times as productive as another healthy and reasonably well-educated person. After all, a day and night comprises only 24 hours for all of us, rich or poor.- Meanwhile, Seth Klein, Iglika Ivanova and Andrew Leyland highlight the desperate need for a poverty reduction strategy in British Columbia.
In a seminal paper on the drivers of inequality, Robert and Ricardo Fernholz have analysed the long-term distribution of wealth in an abstract growing market economy. They assume that the economy generates a surplus which is invested in a financial market. Even assuming that all individuals in this society are identical as far as capabilities, efforts, preferences, and initial assets are concerned, the distribution of assets will become increasingly skewed over time. In the long run, one household will own all the assets. The explanation for this is simple: small variations in return on assets will be magnified over time, because those who are lucky can afford to take somewhat higher risks and will be rewarded with even higher returns, and so on.
Simple as this mechanism may be, it has far-reaching consequences. Even in an imagined world of perfect equals, inequality will develop as a result of our innate tendency towards risk aversion – wealthy individuals can afford to take risks, whereas the less wealthy have to be more cautious. Equality is inherently unstable; even the slightest perturbation of a perfectly egalitarian equilibrium will cause it to degrade into a highly unequal society, where only the self-interest of the richer strata will set the limits.
...
In real societies, individuals differ in both capabilities and efforts. But, because of the self-reinforcing effect of differences, the inequalities that we observe will be completely out of proportion with differences in effort or capabilities. Inequality is largely a market failure. This is what makes the case for redistribution.
- Lola Butcher discusses how a housing first strategy can more than pay for itself by reducing burdens on the health care system and other social programs. And Marc Lee points out that tax incentives and subsidies for landlords figure to be far less effective than direct investment in affordable housing.
- Timothy Sawa and Lisa Ellenwood report on the massive amounts of money wasted on high-priced prescription drugs. And to her credit, Jane Philpott is at least examining how to reduce the cost of inflated drug prices - though it remains to be seen when that will lead to actual policy changes.
- Finally, the CCPA's submission to the SaskForward consultation process examines the futility of austerity.
Thursday, January 12, 2017
Thursday Morning Links
This and that for your Thursday reading.
- Alex Hemingway highlights the similarities between Justin Trudeau and Donald Trump in pushing infrastructure plans designed primarily to turn the promise of public services into long-term corporate profit centres:
- While I'm still skeptical about what we can expect from Karina Gould as the minister of democratic institutions, PressProgress tracks down some past statements which would suggest she recognizes the need for a proportional electoral system.
- Finally, Andrew Potter discusses the de-institutionalism of media organizations as a means of ensuring reporting standards - while hinting that it may be possible to develop alternate ways to avoid being swamped by fake news.
- Alex Hemingway highlights the similarities between Justin Trudeau and Donald Trump in pushing infrastructure plans designed primarily to turn the promise of public services into long-term corporate profit centres:
But as I described recently in the Canadian context, these “partnerships” have proven enormously costly:- Meanwhile, David Rider and Betsy Powell report on the fight against the privatization of Toronto's garbage collection. And D.C. Fraser reports that the Saskatchewan Party's first major move following from Brad Wall's attack on wages has been to threaten the jobs of over 250 custodial workers.
“P3s are simply less efficient – on average costing dramatically more than the public sector alternative. And it’s not hard to understand why…In fact, the Ontario Auditor General recently reported that the province had lost a jaw-dropping $8 billion over a decade by building projects as P3s rather than as traditional public infrastructure projects.
Traditional publicly-funded and operated projects… don’t require paying out profits to private investors and, importantly, have lower financing costs, since government can secure much better interest rates than a private corporation.
This has all been well understood since the 1990s and documented over the years in a whole range of research on P3s.”
To top it off, privatization tends to increase inequality by driving down wages and ramping up user fees, while eroding the capacity of our public sector. That’s why many cities across Canada and around the world have begun bringing services back in-house after failed experiments with P3s.
Now, ignoring this body of evidence, our own federal government is working from the same playbook as Donald Trump, planning a major privatization of Canadian infrastructure.
...
This should all be deeply worrying to Canadians. The push for privatization illustrates how neoliberalism is alive and well – in Trump’s America and Trudeau’s Canada. Yet the evidence is clear: selling out our public infrastructure is both unnecessary and incredibly costly. And it’s taking us in precisely the wrong direction at a time when we need a renewed public sphere to meet huge collective challenges.
- While I'm still skeptical about what we can expect from Karina Gould as the minister of democratic institutions, PressProgress tracks down some past statements which would suggest she recognizes the need for a proportional electoral system.
- Finally, Andrew Potter discusses the de-institutionalism of media organizations as a means of ensuring reporting standards - while hinting that it may be possible to develop alternate ways to avoid being swamped by fake news.
New column day
Here, on how a change in government hasn't done anything to slow the spread of Canada's surveillance state - both in terms of intrusive new legislative proposals, and a continued determination to operate even outside the law.
For further reading...
- Again, Dave Seglins and Rachel Houlihan reported on the Cold War-era wiretapping approvals which are still being officially denied by the federal government.
- Justin Ling documented the history of "lawful access" legislation, along with the more recent effort of Ralph Goodale and the RCMP to repackage the same intrusions in a new message.
- Tonda MacCharles reported on both CSIS' admission that it too spied on journalists, and its subsequent broken promise to own up to its past surveillance - seemingly because it's still engaged in the same tactics now.
- Finally, Colin Freeze reports that CSIS has also been seeking bulk data collection mechanisms for years. Asha Tomlinson points out how many apps already collect far more data than they need for business purposes. And Sasa Petricic looks to China for a warning as to the implications for privacy and individual freedom when state power meets the centralized collection and use of data.
For further reading...
- Again, Dave Seglins and Rachel Houlihan reported on the Cold War-era wiretapping approvals which are still being officially denied by the federal government.
- Justin Ling documented the history of "lawful access" legislation, along with the more recent effort of Ralph Goodale and the RCMP to repackage the same intrusions in a new message.
- Tonda MacCharles reported on both CSIS' admission that it too spied on journalists, and its subsequent broken promise to own up to its past surveillance - seemingly because it's still engaged in the same tactics now.
- Finally, Colin Freeze reports that CSIS has also been seeking bulk data collection mechanisms for years. Asha Tomlinson points out how many apps already collect far more data than they need for business purposes. And Sasa Petricic looks to China for a warning as to the implications for privacy and individual freedom when state power meets the centralized collection and use of data.
Tuesday, January 10, 2017
The Minister of Silly Excuses
Yes, Justin Trudeau has set up his predictable excuse for breaking his promise of electoral reform by putting a new minister in charge of the file during a crucial period. But let's see what Karina Gould has had to say about a more fair democratic system in communicating with her constituents (PDF):
Which isn't to say it represents a reasonable formulation of any coherent approach to the state of our democracy. But it represents exactly the kind of smokescreen Trudeau favours as a statement of the Libs' self-serving opposition to their own core electoral promise - and it'll be a pleasant surprise if Gould offers anything more reasonable in her new position.
Update: Kady O'Malley links to the formal report (PDF) from Gould's consultation. While the first paragraph of the text above is very close to one within the report, readers can draw their own conclusions as to how the broader discussion was pared down in Gould's message to constituents.
Participants focused on the importance between direct and proportional representation. It was expressed that being able to vote directly for someone to represent constituents was important. Some felt that the Mixed Member Proportional system provides this ability. However, participants also expressed concern that most people do not understand proportional representation. Some participants also indicated that Canada is too large and sparsely populated in certain regions for Proportional Representation to be an appropriate option.
The consultation demonstrated that electoral reform is a complex issue and there are many considerations to be made before one can identify an ideal system for Canada.Sadly, that combination of blaming proportional systems for the confusion being fostered by the Libs themselves and otherwise stacking the deck against the very concept of proportionality (no matter what the people being consulted actually say) looks to explain Gould's appointment.
Which isn't to say it represents a reasonable formulation of any coherent approach to the state of our democracy. But it represents exactly the kind of smokescreen Trudeau favours as a statement of the Libs' self-serving opposition to their own core electoral promise - and it'll be a pleasant surprise if Gould offers anything more reasonable in her new position.
Update: Kady O'Malley links to the formal report (PDF) from Gould's consultation. While the first paragraph of the text above is very close to one within the report, readers can draw their own conclusions as to how the broader discussion was pared down in Gould's message to constituents.
Tuesday Morning Links
This and that for your Tuesday reading.
- Jesse Ferreras reports that Canada's supposed job growth has included almost nothing but part-time and precarious work. And Louis-Philippe Rochon points out how the influence of the financial sector has led to economic choices which serve nobody else's interests:
- Andrew MacLeod reveals the results of the B.C. Libs' attempt to dodge a modest boost to the Canada Pension Plan - showing that two-thirds of respondents favoured the expansion which the Clark government tried to undercut.
- Jessica Elgot reports on Jeremy Corbyn's call for a maximum wage law in the UK. And the Guardian's panel response offers plenty of food for thought - particularly to the effect that where the problem to be addressed is the disproportionate accumulation of income and wealth, the right policy prescription is likely through taxes rather than regulation.
- Finally, Andrew Coyne discusses the radically difference models which give rise to varied views on a basic income, while noting that Hugh Segal's proposed pilot program will offer a useful study of a model which should appeal to all sides.
- Jesse Ferreras reports that Canada's supposed job growth has included almost nothing but part-time and precarious work. And Louis-Philippe Rochon points out how the influence of the financial sector has led to economic choices which serve nobody else's interests:
What makes governments hesitate to pursue policies they have been told would benefit the economy and the working class?- Jim Stanford writes that much of the dogma underlying corporate free trade deals is at long last being met with scrutiny. And Noah Smith comments on the constant - and unfair - assumption that public policy shouldn't even be considered as a means of improving people's lives absent some discrete market failure.
I am forced to conclude that these choices do not depend on economic factors, but rather on political ones, and in particular, the over-influence of finance and financial leaders in the political arena.
Full employment is possible, if governments chose to pursue it. Nothing stops government from adopting policies that would reduce the great inequalities in income by increasing marginal tax rates, adopting inheritance taxes and more.
Inevitably, however, these policies would hurt the financial elites who have become way too tangled up with the political class. It would also inevitably shift social power toward the working class and away from finance.
- Andrew MacLeod reveals the results of the B.C. Libs' attempt to dodge a modest boost to the Canada Pension Plan - showing that two-thirds of respondents favoured the expansion which the Clark government tried to undercut.
- Jessica Elgot reports on Jeremy Corbyn's call for a maximum wage law in the UK. And the Guardian's panel response offers plenty of food for thought - particularly to the effect that where the problem to be addressed is the disproportionate accumulation of income and wealth, the right policy prescription is likely through taxes rather than regulation.
- Finally, Andrew Coyne discusses the radically difference models which give rise to varied views on a basic income, while noting that Hugh Segal's proposed pilot program will offer a useful study of a model which should appeal to all sides.
Monday, January 09, 2017
Monday Morning Links
Miscellaneous material to start your week.
- Sean McElwee offers his take on the crucial failings which have led the U.S. Democrats to their current nadir in which principles and values have been discarded in the pursuit of power they've failed to secure.
- Mike Konczal and Marshall Steinbaum highlight the importance of effective government to counterbalance corporate control:
- The Star's editorial board criticizes the lack of federal action to ensure that indigenous children have access to child welfare services. And Vicky Mochama writes that it's particularly galling to see the federal government whine that it doesn't have the money to comply with its human rights obligations while it plans high-priced birthday celebrations.
- Finally, Colin Freeze reports on CSIS' plans to collect bulk data for unspecified purposes without any apparent public notice or debate.
- Sean McElwee offers his take on the crucial failings which have led the U.S. Democrats to their current nadir in which principles and values have been discarded in the pursuit of power they've failed to secure.
- Mike Konczal and Marshall Steinbaum highlight the importance of effective government to counterbalance corporate control:
If there is one thing that both the Depression and the Great Recession taught us about how the economy works, it is that corporate power is a threat to public well-being—that it extracts its own rents. The economy’s only effective protection from that power is to be found in an activist federal government unafraid to deploy countervailing power and provide essential services in the form of public options and regulated utilities.- Joseph Stiglitz discusses the glaring uncertainty surrounding the Trump administration as a barrier to any substantial economic forecasting. And Jerry Dias and Maude Barlow offer their suggestions as to how a renegotiation of NAFTA could produce far better results for citizens of all of the countries involved.
...Real free-market economics has little time for powerful countervailing mechanisms to private power like antitrust or banking regulation, let alone a healthy labor market powered by robust aggregate demand and full employment as government policy. Furthermore, whether the “pro-growth” policies advocated in this symposium would actually deliver growth and genuine security for everyday workers, much less challenge the power the elite have over the economy, is unclear. Luckily, the New Deal that Simons was hoping to keep at bay gave us a better set of tools to build an economy that serves the interests of the many, not the few.
- The Star's editorial board criticizes the lack of federal action to ensure that indigenous children have access to child welfare services. And Vicky Mochama writes that it's particularly galling to see the federal government whine that it doesn't have the money to comply with its human rights obligations while it plans high-priced birthday celebrations.
- Finally, Colin Freeze reports on CSIS' plans to collect bulk data for unspecified purposes without any apparent public notice or debate.
Sunday, January 08, 2017
Sunday Morning Links
This and that for your Sunday reading.
- James Wilt writes that the PR campaign pushing pipelines is based largely on the false claim that the only other choice is to allow even more dangerous means of facilitating the burning of fossil fuels. And David Suzuki argues that the cost of addressing obvious environmental problems including climate change is only increasing as we delay acting on them.
- Jim Stanford notes that an intelligent response from Canada (as opposed to one based solely in free-trade dogma) could secure some advantages out of Donald Trump's expected trade policies.
- The CCPA's latest Monitor examines how tax reform is an essential piece in resolving fundamental economic problems.
- Kevin McKenna points out the efforts of Labour Councillor Matt Kerr to promote a basic income in the UK. And Debora Von Brenk reports on Ontario's move to start a conversation about rural poverty - which would seem to be well worth replicating in Saskatchewan.
- Finally, Doug Cuthand offers what seems to be a needed reminder that Canada's history goes back far beyond the 150-year mark being celebrated at great expense in 2017.
- James Wilt writes that the PR campaign pushing pipelines is based largely on the false claim that the only other choice is to allow even more dangerous means of facilitating the burning of fossil fuels. And David Suzuki argues that the cost of addressing obvious environmental problems including climate change is only increasing as we delay acting on them.
- Jim Stanford notes that an intelligent response from Canada (as opposed to one based solely in free-trade dogma) could secure some advantages out of Donald Trump's expected trade policies.
- The CCPA's latest Monitor examines how tax reform is an essential piece in resolving fundamental economic problems.
- Kevin McKenna points out the efforts of Labour Councillor Matt Kerr to promote a basic income in the UK. And Debora Von Brenk reports on Ontario's move to start a conversation about rural poverty - which would seem to be well worth replicating in Saskatchewan.
- Finally, Doug Cuthand offers what seems to be a needed reminder that Canada's history goes back far beyond the 150-year mark being celebrated at great expense in 2017.
On litmus tests
Gregory Beatty raises some noteworthy possibilities as to how Ryan Meili's entry into the Saskatoon-Meewasin by-election may reverberate in Saskatchewan's broader political scene. But there are a few more potential effects worth pointing out.
For some time, there's been a generally-unexplained combination of dismissiveness and negativity toward Meili in some corners of the media, typically backed by anonymous NDP sources. And the point most frequently used to challenge him as a potential leader has been the lack of a seat in the Legislature (generally combined with some comment about how he should have pursued one sooner).
Needless to say, a run and win in Saskatoon-Meewasin would put an end to that talking point. But what would happen to the more general perceptions of Meili?
At this point, I'm fairly optimistic that the NDP as an institution is learning some lessons about working together, and that the combination of traditional party support and newly-motivated voters could propel Meili toward winning the seat. But the Saskatchewan Party will have a choice of its own to make based on whether it agrees with any criticisms of Meili's prospects as a leader.
If Brad Wall and company think there's some advantage in having Meili as a primary opponent, then they'd be best served not to put a great deal of effort into opposing him in Saskatoon-Meewasin. That would both allow them to claim the public shouldn't read too much into their own loss of the seat, and position Meili as a strong favourite in the NDP leadership campaign.
If, on the other hand, the Saskatchewan Party disagrees with the theory that they're better off facing Meili than other prospective NDP leaders, then their obvious response would be to leave no stone unturned in trying to keep him out of the Legislature.
Based on that choice, we should find out very shortly how the people with the most skin in the game actually see Meili's future as a leader. And if they confirm their recognition of Meili's potential by choosing the latter course of action, then the press won't have any excuse for trying to marginalize him.
For some time, there's been a generally-unexplained combination of dismissiveness and negativity toward Meili in some corners of the media, typically backed by anonymous NDP sources. And the point most frequently used to challenge him as a potential leader has been the lack of a seat in the Legislature (generally combined with some comment about how he should have pursued one sooner).
Needless to say, a run and win in Saskatoon-Meewasin would put an end to that talking point. But what would happen to the more general perceptions of Meili?
At this point, I'm fairly optimistic that the NDP as an institution is learning some lessons about working together, and that the combination of traditional party support and newly-motivated voters could propel Meili toward winning the seat. But the Saskatchewan Party will have a choice of its own to make based on whether it agrees with any criticisms of Meili's prospects as a leader.
If Brad Wall and company think there's some advantage in having Meili as a primary opponent, then they'd be best served not to put a great deal of effort into opposing him in Saskatoon-Meewasin. That would both allow them to claim the public shouldn't read too much into their own loss of the seat, and position Meili as a strong favourite in the NDP leadership campaign.
If, on the other hand, the Saskatchewan Party disagrees with the theory that they're better off facing Meili than other prospective NDP leaders, then their obvious response would be to leave no stone unturned in trying to keep him out of the Legislature.
Based on that choice, we should find out very shortly how the people with the most skin in the game actually see Meili's future as a leader. And if they confirm their recognition of Meili's potential by choosing the latter course of action, then the press won't have any excuse for trying to marginalize him.
Saturday, January 07, 2017
Saturday Morning Links
Miscellaneous material for your weekend reading.
- Owen Jones highlights the need for social democratic parties to present a real popular alternative to neoliberal government, and offers his suggestions as to how UK Labour can accomplish that:
- Daniel Bernmar discusses Sweden's successful trial of a six-hour work day - as better working conditions led to improved outcomes for workers and the people they assist alike.
- The Globe and Mail rightly questions why the Libs are planning to spend half a billion dollars on national self-congratulation - though the choice is especially glaring given that Trudeau and company are simultaneously complaining they don't have a dime to put toward fairness for First Nations children.
- Finally, Tom Graham reminds us that the source of Saskatchewan's budget deficit is the Wall government - not the workers the Saskatchewan Party wants to stick with the bill.
- Owen Jones highlights the need for social democratic parties to present a real popular alternative to neoliberal government, and offers his suggestions as to how UK Labour can accomplish that:
Political leadership means saying, here’s what’s wrong with society, here’s what our vision of what society is instead, here’s how we get there. It means hammering at key messages ad infinitum, backed up with policies that are indicative of where the party is coming from. It means speaking in an everyday language that resonates beyond politicos, and having lots to say to the average Briton who is neither poor nor well-off. This has been lacking, and Labour often seems missing from political debate, although some relatively recent appointees (such as Corbyn’s press officer, Matt Zarb-Cousin, and his colleague James Schneider) are determined to change that. Research suggests that voters don’t think Labour is too leftwing, whatever the Labour right argue; they just don’t know what the party stands for. And if you don’t define yourself, you will be defined – mercilessly – by your opponents. Yes, we have a viciously rightwing media, but they are not going to vanish: there just needs to be a sophisticated strategy to deal with them.- Meanwhile, Alan Draper notes that one cause of the rise of the populist right is decreased union influence - not just in the workplace, but also in defining political values. And Christo Aivalis' predictions for Canada's left in 2017 include the hope and expectation that we'll see better-organized social movements.
In today’s fraught political climate, there are some who respond that this critique is only offered because I’m a careerist, secretly rightwing, motivated by money, or part of a Guardian conspiracy against the Labour leadership. In truth, it’s because I want a genuinely radical Labour leadership to succeed: one that invests, rather than cuts; that forces the rich to pay a fair share of tax; that gives workers rights, security, and dignity; that confronts climate change, and treats it as an opportunity to promote the industries and jobs of the future; that brings our services under the ownership of the people of this country; that stops forcing young people to suffer the brunt of a crisis they had nothing to do with; that makes high-quality, affordable housing a basic right for every citizen.
- Daniel Bernmar discusses Sweden's successful trial of a six-hour work day - as better working conditions led to improved outcomes for workers and the people they assist alike.
- The Globe and Mail rightly questions why the Libs are planning to spend half a billion dollars on national self-congratulation - though the choice is especially glaring given that Trudeau and company are simultaneously complaining they don't have a dime to put toward fairness for First Nations children.
- Finally, Tom Graham reminds us that the source of Saskatchewan's budget deficit is the Wall government - not the workers the Saskatchewan Party wants to stick with the bill.
Friday, January 06, 2017
Friday Evening Links
Assorted content to end your week.
- Colin Busby and Ramya Muthukumaran offer some suggestions as to how to ensure there's an adequate social safety net to support people stuck with precarious work:
- The Star's editorial board calls for CEOs to pay their fair share through an end in the stock option loophole. But PressProgress exposes why it didn't happen - as the Libs were happy to let Bay Street lobby them to break their promise of a fairer tax system.
- Julien Gignac discusses the lack of comprehensive information to even document the state of homelessness in Canada.
- Finally, Wayne Young points out how the Libs have made a mess out of straightforward commitments to electoral reform both in Prince Edward Island and on the federal level.
- Colin Busby and Ramya Muthukumaran offer some suggestions as to how to ensure there's an adequate social safety net to support people stuck with precarious work:
Federal and provincial governments, acting in concert or independently, should reduce the uncertainties of a volatile labour market for newcomers and incumbents.- Jack Peat comments on the UK's "Fat Cat Wednesday" as just one more indicator of unsustainable inequality, while Haley Ryan reports on Gary Burrill's rightful recognition that the gap between the rich and the rest of us is a significant moral problem. And Ashifa Kassam writes about Canada's own equivalent to Fat Cat Wednesday which was celebrated (or lamented) a day earlier.
They could start by:1) Ensuring appropriate access to Employment Insurance benefits for the most vulnerable workers, including part-time and temporary non-seasonal workers, many of whom don’t qualify because of hours-worked eligibility criteria. Instead, weeks-worked entrance requirements and claimant categories that recognize non-standard workers should be strongly considered;2) Ensuring obstacles to EI access are not hindering access to other critical social programs under the EI umbrella, such as special benefit programs such as maternity/paternity leave and courses for skills upgrading;3) Doing a better job filling the gaps in health coverage experienced by workers in precarious jobs for services such as prescription drugs, mental health, vision and dental care. Provinces, such as Ontario, should take direct responsibility for this and improve coverage rather than wait for unlikely federal interventions;4) Protecting the value of expanded CPP benefits for low-income workers by exempting them from punitive, income-tested guaranteed income supplement clawbacks.
- The Star's editorial board calls for CEOs to pay their fair share through an end in the stock option loophole. But PressProgress exposes why it didn't happen - as the Libs were happy to let Bay Street lobby them to break their promise of a fairer tax system.
- Julien Gignac discusses the lack of comprehensive information to even document the state of homelessness in Canada.
- Finally, Wayne Young points out how the Libs have made a mess out of straightforward commitments to electoral reform both in Prince Edward Island and on the federal level.
Thursday, January 05, 2017
New column day
Here, starting from the justified criticism of corporate-friendly "privatize the gains, socialize the losses" economic policy by noting that some genuinely socialized risks would represent a substantial improvement in equity.
For further reading...
- Again, Jared Bernstein discusses the shift in overall risks toward the people who can least handle them here.
- And Timothy Martin wrote here about the shift from generally-available pensions toward individual retirement accounts - which has been matched in Canada not only in the area of retirement planning, but also in education, disability supports, and anything else somebody with thousands of dollars to spare can think to fund.
For further reading...
- Again, Jared Bernstein discusses the shift in overall risks toward the people who can least handle them here.
- And Timothy Martin wrote here about the shift from generally-available pensions toward individual retirement accounts - which has been matched in Canada not only in the area of retirement planning, but also in education, disability supports, and anything else somebody with thousands of dollars to spare can think to fund.
Thursday Evening Links
This and that for your Thursday reading.
- Anis Chowdhury refutes the theory that top-heavy tax cuts have anything to do with economic development:
- Mark Hume argues that British Columbia's economy has focused far too long on unsustainably exploiting the natural environment. And Jessica Shankleman and Christopher Martin highlight the futility of relying on fossil fuels when solar power stands to be the cheapest and most environmentally-friendly energy source around the globe within a decade.
- Nicola Davis reports on new research showing that it's possible to identify a disadvantaged cohort based on brain health (and intervene to produce far better long-term outcomes) in children as young as 3 years old.
- Finally, Charles Hamilton discusses Saskatchewan's undue focus on breach offences, along with the costs it imposes on the public and on offenders alike.
- Anis Chowdhury refutes the theory that top-heavy tax cuts have anything to do with economic development:
Cross-country research has found no relationship between changes in top marginal tax rates and growth between 1960 and 2010. For example, during this period, the US cut its top rate by over 40 percentage points and grew just over 2 percent annually. Germany and Denmark, which barely changed their top rates at all, experienced about the same growth rate.- Meanwhile, Jessica Deahl comments on the impact of insufficient child care options on working families. And the Star calls for a long-overdue end to federal policy which leaves indigenous women to give birth without maternal health supports.
Thus, tax cuts will not magically improve economic growth. Instead, the government should focus on building economic capacity with new investments in infrastructure, research and development (R&D), education, and anti-poverty programs. As the IMF has recently observed, the impacts of public investment are greatest during periods of low growth. This view has also been endorsed by recently outgoing Reserve Bank Governor, Glenn Stevens.
Investments in education produce a more skilled workforce, raising earnings and spurring innovation. A worker with only a high school education is twice as likely be unemployed as one with at least a bachelor's degree. An extra year of school is correlated with a significant increase in per capita income.
There are also gains associated with investments in early childhood education. The earlier the intervention, the more cost-effective, which is why policymakers have focused on preschool. Children who attend early high-quality care and education programs are less likely to engage in criminal behaviour later in life and more likely to graduate from high school and university. Reducing the cost of preschool also effectively increases a mother's net wage, making it more likely she will return to the labour market.
Spending on effective social programs provides immediate benefits to low-income families and can enhance long-term economic growth. The increased income security contributes to better health and increased university enrolment, leading to higher productivity and earnings. Similarly, nutrition assistance programs improve beneficiaries' health and cognitive capacity. Research shows similar positive impacts of housing assistance programs.
- Mark Hume argues that British Columbia's economy has focused far too long on unsustainably exploiting the natural environment. And Jessica Shankleman and Christopher Martin highlight the futility of relying on fossil fuels when solar power stands to be the cheapest and most environmentally-friendly energy source around the globe within a decade.
- Nicola Davis reports on new research showing that it's possible to identify a disadvantaged cohort based on brain health (and intervene to produce far better long-term outcomes) in children as young as 3 years old.
- Finally, Charles Hamilton discusses Saskatchewan's undue focus on breach offences, along with the costs it imposes on the public and on offenders alike.
Wednesday, January 04, 2017
Wednesday Morning Links
Miscellaneous material for your mid-week reading.
- Jared Bernstein highlights how a generation of public policy has systematically transferred risk from the wealthy who claim to bear it, to the general public which can't afford to do so:
- Matt Bruenig notes that exactly the same incentives used as arguments against a basic income apply to the accumulation of passive income through capital ownership. And that reality (combined with the privileged treatment given to capital) makes it obvious how it's possible to pay for a system which provides meaningful supports to everybody.
- Dean Baker points out the futility of trying to pretend that the unpopularity of corporate-driven trade deals is merely an issue of messaging rather than substance.
- Finally, Richard Trumka discusses the dangers of allowing the likes of Donald Trump to pretend to speak for workers even as he uses his power to undermine them. And Ted Hesson reports on the real effects of Republican government - as raises and benefits promised under the Obama administration are being retracted by employers who have concluded they can get away with continuing to exploit their workers.
- Jared Bernstein highlights how a generation of public policy has systematically transferred risk from the wealthy who claim to bear it, to the general public which can't afford to do so:
Back in the late 2000s, two authors — the economics journalist Peter Gosselin and the political scientist Jacob Hacker — wrote books documenting what they both called “the risk shift.” The idea was that policy and social norms had changed in ways that shifted economic risk — invoked by retirement, illness, job stability and loss of income — from government and firms to individuals and families. The result was greater inequality and worse: greater insecurity among the many people on the wrong side of the risk shift.- [Edited to add: Timothy Martin writes about the development of personal retirement accounts - which were supposed to supplement more stable defined-benefit pensions, but instead came to be used as an excuse to dispense with them.] And Peter Orzagh connects the stress of a more precarious life to the declining health (including shortened life spans) for lower-income Americans.
...
The Affordable Care Act is an anti-risk-shifter, a policy designed to shift the locus of the insecurity of no or inadequate health coverage back onto the government sector, which, due to its power to pool and regulate, is the far better sector to place that risk (which is why I’d lower, not raise, the Medicare eligibility age).
Same with retirement risk. As I read the WSJ article, my inner wonk was screaming: We already have a great, efficient, much-loved, fully vested, progressive, guaranteed pension plan. It’s called Social Security. If we want to relegate retirement insecurity to the past, we don’t need new saving schemes and tax incentives. We need to strengthen and expand Social Security.
Trump and the Republicans are anxious to repeal Dodd-Frank financial reform and cut the Consumer Finance Protection Bureau off at the knees. They’re preparing to pass a huge, regressive tax cut that I believe is ultimately designed to generate lasting deficits that will then be cited to justify the cutting of Medicaid, food stamps, Medicare, and Social Security.
With that, the risk shift will be complete.
What’s remarkable is that this is all happening at a time when even conventional wisdom recognizes that structural economic changes — globalization, technology, inequality, immobility, persistent underemployment, “secular stagnation” (persistently weak demand) — have made economic life tougher for many in the workforce. Such changes would seem to demand a politics that would drive the risk shift in the opposite direction, off the shoulders of households that are increasingly exposed to growing structural risks of displacement and loss, and back onto firms and governments.
- Matt Bruenig notes that exactly the same incentives used as arguments against a basic income apply to the accumulation of passive income through capital ownership. And that reality (combined with the privileged treatment given to capital) makes it obvious how it's possible to pay for a system which provides meaningful supports to everybody.
- Dean Baker points out the futility of trying to pretend that the unpopularity of corporate-driven trade deals is merely an issue of messaging rather than substance.
- Finally, Richard Trumka discusses the dangers of allowing the likes of Donald Trump to pretend to speak for workers even as he uses his power to undermine them. And Ted Hesson reports on the real effects of Republican government - as raises and benefits promised under the Obama administration are being retracted by employers who have concluded they can get away with continuing to exploit their workers.
Tuesday, January 03, 2017
Tuesday Morning Links
This and that for your Tuesday reading.
- Joachim Hubmer, Per Krusell and Anthony A. Smith, Jr. study the causes of wealth inequality in the U.S. and find one clear explanation for the stratification between the rich and the rest:
- Alan Pyke reports on Bloomberg's estimate that the world's richest 500 people increased their personal wealth by a combined $237 billion this past year alone. And Hugh MacKenzie reminds us that Canada's CEOs rake in more money in a single morning than most workers will earn all year.
- Ben Judah highlights how London's real estate market (like that of other cities) has been inflated by kleptocrats from around the globe.
- Thomas Homer-Dixon discusses the need for Canada to step up the fight against climate change. And Chris Mooney offers another reminder that actual data shows that we're doing even more damage to our planet than has long been feared - which may explain why the Wall government is going out of its way to undermine even basic scientific knowledge and education in Saskatchewan.
- And finally, the Council of Canadians shares Maude Barlow's laudable national vision for 2017.
- Joachim Hubmer, Per Krusell and Anthony A. Smith, Jr. study the causes of wealth inequality in the U.S. and find one clear explanation for the stratification between the rich and the rest:
There is one main finding: by far the most important driver is the significant drop in tax progressivity that started in the late 1970s, intensified during the Reagan years, and then subsequently flattened out, with only a minor bounce back. The sharp observed increases in earnings inequality, the falling labor share over the recent decades, and potential mechanisms underlying changes in the gap between the interest rate and the growth rate (Piketty's r-g story) all fall far short of accounting for the data.- Meanwhile, Jared Bernstein charts the lack of any correlation between tax giveaways to the rich and economic development (as measured by GDP and employment).
- Alan Pyke reports on Bloomberg's estimate that the world's richest 500 people increased their personal wealth by a combined $237 billion this past year alone. And Hugh MacKenzie reminds us that Canada's CEOs rake in more money in a single morning than most workers will earn all year.
- Ben Judah highlights how London's real estate market (like that of other cities) has been inflated by kleptocrats from around the globe.
- Thomas Homer-Dixon discusses the need for Canada to step up the fight against climate change. And Chris Mooney offers another reminder that actual data shows that we're doing even more damage to our planet than has long been feared - which may explain why the Wall government is going out of its way to undermine even basic scientific knowledge and education in Saskatchewan.
- And finally, the Council of Canadians shares Maude Barlow's laudable national vision for 2017.
Monday, January 02, 2017
Monday Morning Links
Miscellaneous material for your Monday reading.
- Paul Krugman offers a warning about Donald Trump's immediate moves to normalize corruption and cronyism as the foundation of his administration. And the New York Times' editorial board points out that corporations are enabling Trump's false claims with the expectation that they'll be rewarded with public giveaways, while Jeff Spross highlights how Trump stands to bolster a cult of personality by making workers dependent on his favour.
- Philip Inman examines the Resolution Foundation's research showing that workers without guaranteed hours suffer a "precarious pay penalty" that leaves them far worse off than people doing the same jobs on permanent contracts. And John Have and Robert Brown note that older employees represent another group which may face adverse treatment, particularly when benefit plans terminate at age 65 even when an employee keeps working.
- Libby Brooks notes that Scotland is joining the list of jurisdictions examining the social benefits of a universal basic income. And Noah Smith comments on the relative merits of basic income and job guarantee policies - while rightly recognizing that the job market may be headed in a direction which makes the latter impossible.
- Peter Goffin highlights how the cost of medication affects the effectiveness of mental health treatment - particularly when it forces patients to choose between prescription drugs and basic needs such as food. And Eva Ferguson discusses the rise of food insecurity in Alberta.
- Finally, Tara Kiran reports on the millions of Ontarians - disproportionately including vulnerable populations - who have been left behind as a new primary care model has been implemented through most of the health care system.
- Paul Krugman offers a warning about Donald Trump's immediate moves to normalize corruption and cronyism as the foundation of his administration. And the New York Times' editorial board points out that corporations are enabling Trump's false claims with the expectation that they'll be rewarded with public giveaways, while Jeff Spross highlights how Trump stands to bolster a cult of personality by making workers dependent on his favour.
- Philip Inman examines the Resolution Foundation's research showing that workers without guaranteed hours suffer a "precarious pay penalty" that leaves them far worse off than people doing the same jobs on permanent contracts. And John Have and Robert Brown note that older employees represent another group which may face adverse treatment, particularly when benefit plans terminate at age 65 even when an employee keeps working.
- Libby Brooks notes that Scotland is joining the list of jurisdictions examining the social benefits of a universal basic income. And Noah Smith comments on the relative merits of basic income and job guarantee policies - while rightly recognizing that the job market may be headed in a direction which makes the latter impossible.
- Peter Goffin highlights how the cost of medication affects the effectiveness of mental health treatment - particularly when it forces patients to choose between prescription drugs and basic needs such as food. And Eva Ferguson discusses the rise of food insecurity in Alberta.
- Finally, Tara Kiran reports on the millions of Ontarians - disproportionately including vulnerable populations - who have been left behind as a new primary care model has been implemented through most of the health care system.
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