Don Drummond confesses that he has been wrong to believe that changes in public policies -- such as free trade, cuts to corporate taxes, low inflation, the introduction of the GST, balanced budgets and reductions to inter-provincial trade barriers (a.k.a. the neo-liberal agenda) -- are the key to improving Canada's dismal productivity record.

The December issue of the quarterly Economic Climate for Bargaining publication I produce is now online. This issue has a number of pieces on issues of inequality, including:

-  Rising inequality is hurting our economy
-  Labour rights, unions and the 99 per cent
-  Canadian economy bleeding jobs; public sector cuts to intensify
-  Recession and cuts hit Aboriginal and racialized workers hardest

We all know that the wages and compensation individuals receive in private competitive markets reflects their productivity, unless pesky unions and government regulations get in the way -- because Economics 101 (and Michael Hlinka) have told us so.

Corporate CEOs are worth every penny their "independent compensation committees" award in compensation and stock options them because they are "creating value" and hedge fund operators are worth the billions they made helping the world learn about the impact of financial crises. Meanwhile, minimum wage workers, union members and public sector workers must all be overpaid because regulations, unions with their monopsony power, accommodating politicians and labour laws have all interfered with the magic of the market.

Quick. Who said this?

"Labor is prior to and independent of capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital and deserves much the higher consideration."

No. It's not Marx or Lenin.