Inequality is bad for business

In August Canadian Business magazine published my article on why inequality is bad for business.  It is produced in full below. Last week the International Monetary Fund, not known for left-leaning views, released a series of articles entitled “Why Inequality Throws Us Off Balance”. One of the papers is by…
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Buy American Issue is Back in the News

No one should be surprised that a Buy American provision has been included in the American Jobs Act, President Obama’s new job creation bill.  Such provisions have been standard features of U.S. infrastructure spending and procurement legislation for decades. Despite the economic importance of this bill, there is a lot…
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C. D. Howe Shills for Oil Companies

The C. D. Howe Institute is out this morning with a press release entitled, “Raising Oil and Gas Royalties Does Not Benefit Provincial Coffers.” A complete analysis of the accompanying 30-page paper – featuring many graphs, tables and regressions – will take time. But here is my initial take. Background…
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Lies, Damned Lies and Graphs

Further to Jim Stanford’s excellent critique of the Ontario Conservative platform’s graphs, I am similarly struck by the Liberal platform’s lone graph. “Cutting Ontario’s Taxes on New Business Investment in Half” (page 25) purports to show that corporate tax cuts are required to get the province’s “Marginal Effective Tax Rate”…
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What the Right’s Rage Reveals

Jack Layton’s life and untimely death fundamentally changed Canadian political discourse. But both the public outpouring and its hyperpartisan response speak to another interesting shift in Canadian politics. Hints of this shift appeared after the last federal election when the young, newly-elected NDP MPs were the sudden recipients of a…
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Hurricane Trichet Hits Jackson Hole

After watching Jack Layton’s state funeral, I noticed that Jean-Claude Trichet’s speech from Jackson Hole is online. The European Central Bank president does not seem to get it. Far from acknowledging that last month’s interest-rate hike was premature, he touts “price stability.” His main theme is that the economic divergence…
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Recession Ahead?

TD Economics yesterday released a rather gloomy report, putting the odds of a US recession at 40%, and arguing that that Canadian economy is more vulnerable to recession than it was in 2008.  It highlights reduced capacity for governments to respond given that interest rates are already very low, and…
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