-
Inflation Accelerates in July Despite Higher Unemployment
Statistics Canada reported this week that consumer price inflation in Canada accelerated modestly in July, with the headline year-over-year rate rising to 3.3% (from 2.8% in June). In this commentary, Centre for Future Work Director Jim Stanford argues this adds to growing evidence that there’s no reliable correlation between inflation and unemployment. The commentary originally appeared at rabble.ca.
-
The Supply Chain, Profits, and Food Prices: Recent Developments and an Excellent New Video
It’s been a busy couple of weeks in the food inflation debate. Recent developments include: 1. The federal government imposed a $50 million fine (the highest in history) on Canada Bread for its role in a bread price fixing scandal dating back to 2007. 2. The House of Commons Agriculture & Agri-Food committee released a report of its investigations into grocery profits and higher food prices. (See the Centre for Future Work’s submission to that inquiry, documenting the sustained rise in food retail profit margins since the pandemic.) 3. The latest inflation data from Statistics Canada has confirmed that food inflation is continuing at historically high rates, despite the slowdown…
-
Open Letter on Regulating Platform Work From B.C. Experts in Labour Law, Policy, and Economics
Last year the B.C. government began the process of developing employment standards and other protections for app-based ride-hail and food-delivery workers. The Ministry of Labour conducted a public consultation on the topic in the fall of 2022, and published a What We Heard Report in April 2023. The Centre for Future Work made a submission to the public consultation.
-
At Last, Wages are Growing Faster Than Prices… and That’s Good
A turning point has recently been reached in the current inflationary upsurge in Canada. Beginning in February, for the first time in two years, the growth in average hourly wages over the previous 12 months finally matched, and slightly exceeded, the corresponding growth in prices. This is a positive development – but doesn’t mean that workers have ‘caught up’ to recent inflation. Because real wages fell so much in 2021 and 2022, wages will need to grow faster than prices for some years to come to repair the damage to workers’ living standards
-
House of Cards: Interest Rates, Household Debt, and the Housing Crisis
Last week the Bank of Canada increased its overnight interest rate, for the 9th time in little over a year, to 4.75%. In making its announcement, the Bank cited a slight increase in year-over-year headline CPI inflation last month. This, the Bank suggested, was one reason why it abandoned a temporary ‘hold’ on further interest rate increases announced in January. The Bank’s rationale is ironic, because the Bank’s rapid run-up in interest rates was the main cause of that small uptick in inflation
-
Inflation is Coming Down – But Interest Rates Have Nothing To Do With It
New inflation data indicates a welcome slowing of inflation. Prices increased by an average of 4.3% over the 12 months ending in March. That’s barely half the year-over-year inflation rate just 9 months ago, in June 2022 (when inflation peaked at 8.1%). Despite this encouraging news, however, there are some important and worrying factors lurking in the weeds...
-
Getting Ready for GFC 2.0
One consequence of the unprecedented tightening of monetary policy imposed by central banks in most countries (including Canada) over the past year has been growing fragility in the broader financial system. Banks, near-banks, and other financial players – many of them highly leveraged after 15 years of near-zero interest rates – are now grappling with the impacts of higher interest rates on their investments and balance sheets.
-
The Grocery CEOs Visit Parliament
The House of Commons Agriculture and Agri-Food Committee recently invited the CEOs of Canada’s three largest supermarket chains (Loblaws, Sobeys, and Metro – who together control around two-thirds of all food retailing in Canada) to testify as part of their inquiry into food inflation.
-
We Need More Goods, not Less Money
In this commentary article, originally published in the Toronto Star, Jim Stanford challenges the adage that inflation results from ‘too much money’ in the economy. In fact, the current inflation – sparked by the repercussions from lockdowns and other supply disruptions during the pandemic – clearly indicates the problem is too few goods. That requires a very different approach to managing rising prices.
-
The False Doctrine of the ‘Labour Shortage’
A common argument that Canada faces a severe ‘labour shortage’ is being invoked to justify regressive policies in many areas: including higher interest rates, record-high (but exploitive) immigration programs, and pushing back the normal retirement age. In this column, originally published in the Toronto Star, Centre for Future Work Director Jim Stanford shows that Canada has not ‘run out’ of workers. Forcibly creating a cushion of surplus labour (through policies to compel labour supply or restrict labour demand) will make life easier for corporate HR managers. But they will undermine the life changes of millions. Humans are not Widgets, and we aren’t in ‘Short Supply’ By Jim Stanford Busy people…