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Regulating Prices Not Such a Crazy Idea
Kamala Harris’s entry into the U.S. presidential campaign has had a dramatic impact on political discourse there – not just in the opinion polls, but in policy thinking, as well. For example, in her recently-unveiled economic platform she advocates new federal laws against price-gouging, to limit the power of private businesses to unreasonably jack up prices for groceries and other essentials...
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Submission to B.C. Labour Relations Code Review
The B.C. government is undertaking a regular five-year review of its labour relations code, that governs labour standards, union activity, and collective bargaining. As part of this review, Centre for Future Work Director Jim Stanford was invited to appear before the review panel as an expert witness.
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Commentary on 2024 Federal Budget
Canada’s Finance Minister Chrystia Freeland tabled the 2024-25 federal budget on April 16. The one major revenue measures in the budget (a change in the partial inclusion rate for capital gains income above a threshold of $250,000 per year) has sparked great outrage from powerful financial interests – but will have no direct impact on 99.9% of personal tax filers...
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Comparing Deficits in Canada and the U.S.
Despite predictable Conservative and business complaints about ‘overspending’, Canada’s federal deficit is very small in macroeconomic terms – and one of the smallest among major industrial countries. In 2022, according to the most recent OECD cross-country data, the general government balance in Canada ranked 9th best among the OECD’s 37 member countries...
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Canadian Corporate Profits Remain Elevated Despite Economic Slowdown
Statistics Canada has released year-end data on corporate financial performance for 2023. The new data confirm that corporate profits remain elevated relative to pre-COVID norms, despite the stalling of economic growth in 2023, largely due to weak consumer demand conditions caused by two years of high interest rates.
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Risks and Uncertainties Facing Canada’s Economy in 2024
Canada’s economy enters the New Year facing a wide range of challenges and uncertainties: high interest rates, stalling economic growth, and rising unemployment. To review the outlook, CBC Radio’s Sunday Magazine, hosted by Piya Chattopadhyay, recently broadcast a full 20-minute interview with Centre for Future Work Director Jim Stanford.
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Testimony to House of Commons Finance Committee Pre-Budget Hearings
Centre for Future Work Economist and Director Jim Stanford was invited to present testimony to the House of Commons Standing Committee on Finance, as part of its annual pre-budget hearings. Here are his opening remarks, presented on October 19, 2023.
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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.
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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
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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