About those “unfunded liabilities”

When it comes to the Canada Pension Plan, a major talking point from the right is that the CPP has “unfunded liabilities”, with the implication that is not affordable and financially unsustainable. This is nonsense, a scare tactic based on an accounting fiction that counts only future expenditures but does…
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S&P Pantsed by US Treasury

I have been reluctant to condemn the credit-rating agencies for sovereign downgrades because it seemed like shooting the messenger. As the bond markets have noticed, a few European countries have serious fiscal problems. Blaming the raters for also noticing did not seem like an effective response. However, I think that…
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Clemens vs. Clemens

Jason Clemens, who hangs his hat at several right-wing think-tanks (the Fraser, Pacific Research and Macdonald-Laurier Institutes), lauds Canadian fiscal conservatism in today’s Wall Street Journal: Canada’s government, for example, has grown smaller over the last 15 years. Total government spending as a share of the economy peaked at a…
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Family Values and Budget Cuts

Once again, in the middle of summer, the anti-government government has unleashed more anti-policy policy via a compliant Statistics Canada. Who needs data when you’ve got family values? The Harper team knows what you need. (Hint: tax cuts. Oops! Not for you sister, if you’re a single mom.) The Globe…
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Navigating troubling economic waters

Down south, the Obama administration is in a dangerous game of chicken with Republican congressional leaders, who are cynically holding the US economy hostage in order to impose a radical agenda of spending cuts. Obama has seemingly bought into the rhetoric of cutting debt, rather than focusing on the real…
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