Some do believe in the 'invisible hand' of the market

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adam stratton
Some do believe in the 'invisible hand' of the market

 

adam stratton

quote:


The Canadian economy created an abundance of high-paying, high-quality jobs last year to offset the loss in the battered manufacturing sector, says a new study by the Canadian Imperial Bank of Commerce.

The bank said Monday that the economy created an impressive 400,000 new jobs last year and "the vast majority of them were in high-paying sectors."


[url=http://www.thestar.com/Business/article/298098]http://www.thestar.com/Bu...

Yeah! I can imagine the economy sitting at its desk, pondering what to do with the loss of manufacturing jobs and then it decided "there it is!, how about creating 400 000 jobs most of them high paid ones".

Must be the for adults version of Santa! What a crock !

[ 28 January 2008: Message edited by: adam stratton ]

Sven Sven's picture

quote:


Originally posted by adam stratton:
[b]

[url=http://www.thestar.com/Business/article/298098]http://www.thestar.com/Bu...

Yeah! I can imagine the economy sitting at its desk, pondering what to do with the loss of manufacturing jobs and then it decided "there it is!, how about creating 400 000 jobs most of them high paid ones".

Must be the for adults version of Santa! What a crock !

[ 28 January 2008: Message edited by: adam stratton ][/b]


What else created the jobs? The government?

Lard Tunderin Jeezus Lard Tunderin Jeezus's picture

...if you actually read the article, you'd have seen that public sector expansion was one of the primary drivers. Add to that the government tax credit programs driving the oil & gas sector, and various regulatory requirements and CRTC mandated broadband service expansion creating work in the IT sector, and I think it's pretty clear that government had a hand in it all.

Proaxiom

I agree with the first two points, although the price of oil is a greater factor than tax credits in creating jobs in the petroleum sector.

The CRTC mandatory broadband expansion hasn't happened, and won't until after the courts rule whether it has the authority to actually do that. If government can take any credit for expansion in high-tech jobs, its only indirectly via its funding of colleges and universities that produce high-tech workers to feed the high demand for those types of skills.

Fidel

Sounds like the invisible hand of socialism saving capitalism from itself again. Imagine society was relying solely on private sector capitalism to create jobs? Imagine you were living in 1929 America, or 1985 Chile ...

Lard Tunderin Jeezus Lard Tunderin Jeezus's picture

quote:


Originally posted by Proaxiom:
[b]The CRTC mandatory broadband expansion hasn't happened, and won't until after the courts rule whether it has the authority to actually do that. If government can take any credit for expansion in high-tech jobs, its only indirectly via its funding of colleges and universities that produce high-tech workers to feed the high demand for those types of skills.[/b]

As I understand it, the legislation is already having an effect, with Bell & Telus in particular moving ahead to expand coverage. Besides, this was only half (and the second half) of my point, as such regulatory issues as [url=http://en.wikipedia.org/wiki/Personal_Information_Protection_and_Electro... and [url=http://en.wikipedia.org/wiki/Bill_198]Bill 198[/url] are coming into play.

Buddy Kat

Tory times are tough times.....so it should be expected that taxpayers hard earned money will be given away to big corporations to cover their loses and taxpayers will find themselves collecting unemployment insurance collected from fellow employed taxpayers.

Just give them a majority and see what happens then.

Homelessness perhaps? This is what 27% of Canadians voted for us to be subjected too.

Maybe now that economic issues are in the forefront of the Canadian they will vote accordingly. The majority seem to be just concerned about one thing anyways-money and that's all. With their income trust loses maybe now they have seen the light.

Question now is ...who is going to pay?

Fidel

quote:


Originally posted by Proaxiom:
[b] If government can take any credit for expansion in high-tech jobs, its only indirectly via its funding of colleges and universities that produce high-tech workers to feed the high demand for those types of skills.[/b]

North American high tech economy was built on public sector investments in research and developement. Taxpayers in the U.S. have been paying twice over for the same tech discoveries for many years now.

Sean in Ottawa

I heard a radio interview today about the loss of call centre jobs. The Conservative being inerviewed (his name was Michael Darch) said that we won't win the battle for lower end jobs and should focus on the higher end jobs.

Problem with this is that the people laid off at the call centre places (like Dell) do not have the skills for the higher end jobs.

We need to care about lower income people's employment as well as those in higher brackets with the higher skills.

Yes of course I recognize the tragedy of losing manufacturing jobs and want something done about that but we should not ignore the loss of jobs in the lower end where this is often people's first jobs. (Just because we have not had a student jobs crunch in a few years, doesn't mean this can't come up quickly.) But we need to recognize that there are people living (or trying to) live on these wages and paying this tax.

As far as a strategy for dealing with lower income jobs we could make them more competative by increasing the basic exemption for tax to the cost of living and index it- which would effectively bring the exemption from 9k to 15k. The extra take home pay would help both the employers and lower income workers and take off the current pressure on minimum wage which is not a living wage. Few people address the fact that a minimum income is not enought to support government. Perhaps people with marginal skills to bring to the workplace ought not to have to subsidize government on minimum wage. Enough that they can sustain themselves.

As far as manufactuaring jobs we can address these by bringing in standards for environmental and social inputs. This is controversial as it would substantially raise the cost of what we buy- but most of these are luxuries. The bottom line would be that we would be on a level playing field with countries without standards. So for example - we say that we will buy TVs made by people who recieved at least $8 an hour.

So we don't say to the Chinese we won't buy your stuff we just say that you have to document that you have met minimum standards for environment and wages for each product we permit to be imported. Sure there will be some attempts at fraud but it would get out the message that we would pay a little more for an item from a plant that did not dump raw waste into the river than one that did. Sicne this is a consumer standard that applies here as well as elsewhere, I see no problem with trade aggreements.

Of course the byproduct would be that we could actually make the products if we were not competing with wages and environmental practices that would be illegal here.

I recognize this is radical and we would be faced recognizing that we are subsidizing our lifestyle with socially and environmentally unsustainable practices that are illegal here but if we did this we would no longer have to wear the hypocrisy label when talking about other countries' social, economic, environmental and even human rights records.

[ 29 January 2008: Message edited by: Sean in Ottawa ]

[ 29 January 2008: Message edited by: Sean in Ottawa ]

Proaxiom

All those call center jobs getting up and moving to Halifax... Something out to be done. Those are [i]our[/i] jobs!

Sean in Ottawa

Huh? To Halifax?
Most are going across the border.

Movement of any jobs from Central Canada to Atlantic Canada which has higher unemployment is obviously a benefit to the nation as we most need the jobs there.

But the elimination of jobs or the moving of them out of the country is a serious problem. that is what I am referring to. That and the fact that there is an attitude that we don't need to care about lower paying jobs. We need to be worried about all the jobs that are on the line.

Proaxiom

There are a lot of call center jobs being created in Halifax. I understand it's because the Nova Scotia government has done a good job investing in necessary infrastructure, and presumably there are some subsidies involved too.

The tech company I work for built a new call center there last year.

adam stratton

Proaxiom,

I thought Sean in Ottawa is addressing the issue on a national, not regional basis.

Personally, as long as the jobs you mention are not going to Alabama or India (with exploitative wages not reflected on the overall price for the consumers) but staying in Canada, I am fine with it.

Proaxiom

I was being facetious in the earlier post. My point was that not all jobs are leaving the country, and it's useful to understand why.

farnival

quote:


Originally posted by adam stratton:
[b]...Yeah! I can imagine the economy sitting at its desk, pondering what to do with the loss of manufacturing jobs and then it decided "there it is!, how about creating 400 000 jobs most of them high paid ones".

Must be the for adults version of Santa! What a crock !

[/b]


haha, good one adam. i read this yesterday right after reading [url=http://www.theglobeandmail.com/servlet/story/RTGAM.20080128.wwall28/BNSt... article[/url] and wondered who Brad Wall thinks does control things...

quote:

...He has just returned from a "comfort" mission to Calgary, where he told oil and gas executives that his government's intention is to keep the "momentum" going that has seen recent billion-dollar-plus announcements in potash development and oil refineries and will see well exploration rise significantly this year.

[b]"Government doesn't control these things,"[/b] he says, "but government can have a role in keeping that momentum going."


but now we know, it's the Economy! i imaginged Wall walking into Economy's office, shaking his invisible hand, and asking advice on what Crown's to sell, and how many public sector layoffs, service cuts and corporate tax reductions to make, to keep that "momentum" the NDP left him a platter of. [img]tongue.gif" border="0[/img]

Proaxiom

There is some thinking that jobs are created when there is an unmet demand for a product or service, and someone willing and able to form a company to meet that demand, or an existing company hires more people to expand its business for the same purpose.

I'm not sure why people seem to be arguing that can't happen without government intervention.

I agree that it helps a lot when good government policies are in place to facilitate job creation.

Fidel

And when we have bad policy, like Dalton's gang in Toronto guaranteeing highest commercial electricity rates in the country, it kills jobs. Especially across Northern Ontario where a significant percentage votes NDP.

GreenNeck

If you can drive a truck, swing a hammer or string up power cables you can go to Alberta and easily make 100,000+$ a year. I guess this is what the CIBC referred to by high paid jobs.

High pay, sure. Knowledge? Nope. Canada is fast becoming a resource-based economy again. Brawn will pay as much as brains if not more. With the increasing demand for commodities there is a future there after all.

Boom Boom Boom Boom's picture

quote:


Originally posted by GreenNeck:
If you can drive a truck, swing a hammer or string up power cables you can go to Alberta and easily make 100,000+$ a year. I guess this is what the CIBC referred to by high paid jobs.

My neighbour's son across the road was hired for construction in Alberta last summer, after two months on the job - no training whatsoever - he fell off high scaffolding and broke his back; after two months in a body cast, he is now doing physical therapy and is an inch shorter because of back and spinal cord surgery.

Fidel

By what I've read, nobody in Alberta wants to train apprentices. Good luck finding a place to live, too. It's the same here in Ontario. They all want instant workers at their beck and call without having to invest in skills training. They all want something for nothing.

thorin_bane

Our company hasn't put an apprentice through in about 5 years, we hire temps instead and wonder why they can't so the job.

Proaxiom

quote:


Originally posted by GreenNeck:
[b]High pay, sure. Knowledge? Nope. Canada is fast becoming a resource-based economy again. Brawn will pay as much as brains if not more. With the increasing demand for commodities there is a future there after all.[/b]

The government should be taking a huge chunk of this windfall and investing it in education and R&D. The more we become reliant on high resource prices the harder off we'll be when those prices come down, or the resources run out.