A recent article in the International Productivity Monitor calls into question the assumption that higher productivity means higher wages.
Since 1981, gains in productivity have not been matched by wage gains. Had wages kept pace with productivity, the average worker would be taking home an extra $9,540 a year.
A recent report from the TD Bank calls for measures to reduce income inequality as a way to encourage economic growth.
The recommendations of the report are based on research by the Organisation for Economic Co-operation and Development (OECD) that found that a 1% increase in income inequality reduces GDP growth by between 0.6% and 1.1%.
Public services key to reducing income inequality
Newfoundland and Labrador crown corporation Nalcor Energy's mapping project is a small example of how some governments are questioning the assumption that all governments can do to encourage economic development is hand out tax breaks.
In a recent article in the Toronto Star, internationally recognized expert on innovation, Mariana Mazzucato, blamed lack of direct government involvement for Canada's mediocre record when it comes to innovation.
She argues the approach taken by Canadian governments — cut corporate taxes, reduce regulation and sign trade deals that protect corporations and investors — has failed. Instead of investing more, corporations are hoarding cash.
The recent suggestion by the CEO of the world's money management firm BlackRock that good pensions were “one of the fundamental reasons” Canada didn't suffer as much as the United States during the last recession is just the latest reminder of how pension plans provide a boost to the economy.
Two studies released last year of Canadian pension plans show the impact pension plans have on the economy.
There is good reason to be concerned about what has happened to employment numbers in Canada over the last few months.
While employment numbers fluctuate from month to month, Statistics Canada is reporting that, “there has been little overall employment growth in Canada since August 2013.”
A recent blog post from the Broadbent Institute argues that part of creating middle class jobs must be improving the quality of precarious low income jobs.
A comparison of occupations and wages revealed that less than half of the core work force – those between 25 and 54 – is employed in occupations that could be considered middle class.
Over half of the core work force are in jobs with lower average incomes.