Author Archives: wciecon
Project Link update: The evolution of the distribution of income in Canada, 1944-2010
Project Link has been updated; the Excel file with the data updated through to June 2021 is available here. I skipped the 2020 update for Project Link for a couple of reasons. There was obviously the distraction of the pandemic, but mainly because I hadn't yet finished the next extension. Every year, I try to […]
Bitcoin as PAYGO Pension Plan. And Land.
Suppose the government starts a Pay As You GO (unfunded) pension plan. What the young pay into the plan today is what the old take out today. The first generation gets lucky; they get a pension paid out, but never put anything in. And if the plan ever gets wound up, the last generation of […]
Do the self-employed opt out of the Canada Pension Plan?
In 2017, anyone with earnings was required to pay $4.95 in Canada Pension Plan contributions for every $100 of earnings (up to a maximum earnings threshold of $51,800 – rates here). For the employed, their $4.95 CPP/QPP contribution was matched by an equal contribution by their employer. However self-employed individuals are required to pay the […]
If you wanna run hot you gotta run steady
Canadian economist Richard Lipsey would always insist that the Phillips Curve is a curve, and not a straight line. Maybe because wages and prices are stickier down than up. Or maybe because unemployment can't go below 0%. Or both. Here's why that matters for macroeconomic policy: Suppose the central bank wants 2% inflation on average, […]
The Economics of Increasing Immigration During an Economic Crisis
The following is a guest post by Mikal Skuterud of University of Waterloo On February 14, the Federal Government issued 27,332 invitations for permanent residency to Canadian Experience Class (CEC) applicants in the Express Entry pool. To issue this unprecedented level of invitations, Immigration, Refugees and Citizenship Canada (IRCC) reached deep into the pool, providing […]
Rapid Vaccinations Can Help Avoid the `Third Wave’ in Ontario
The following is a guest post by Miguel Casares (Universidad Publica de Navarra, Spain), Paul Gomme (Concordia University), and Hashmat Khan (Carleton University) Of utmost importance is improving our understanding of the complex interactions between: (a) the epidemiology that describes the evolution of the coronavirus/COVID-19; and (b) the social and economic choices of individuals. Towards […]
100 million is a really big number: a review of Doug Saunders’ Maximum Canada
The following is a guest post by Mikal Skuterud, professor of economics at University of Waterloo Despite my interest in Canadian immigration policy, I’ve been hesitant to read Doug Saunders’ latest book Maximum Canada: Toward a Country of 100 Million. The idea that the solution to Canada’s economic challenges is more people, and a lot […]
Loanable Funds Redux
Stop talking about "saving". Talk instead about "demand for assets". You will be happier, and your head will be clearer. Your students too will be happier, and their heads will be clearer. Demand for assets is a thing; saving is a non-thing (a residual). Things are clearer than non-things. Saving is the part of your […]
Presidents: do you get what you pay for?
In 1915, Woodrow Wilson earned $75,000 per year, or $1.9 million in 2018 dollars, for serving as President of the United States. The current incumbent of that office receives only a fraction of that amount: $400,000 annually. Congress has increased the presidential salary three times in the past 100 years: raising it to $100,000 in […]
Can the Great Barrington proposal save the economy?
The Great Barrington Declaration argues against universal lock-downs: Those who are not vulnerable should immediately be allowed to resume life as normal. Simple hygiene measures, such as hand washing and staying home when sick should be practiced by everyone to reduce the herd immunity threshold. Schools and universities should be open for in-person teaching. Extracurricular […]
Worthwhile Canadian Initiative 
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