7 thoughts on “Open Thread: Unemployment and Fiscal Policy

  1. It is a disgrace. And the NDP has been making no noise about the failure to beef up the EI system. We have provinces engaging in austerity and a federal government engaging in anaemic stimulus. It seems both the ruling class and its official critics think this is really going to be a two quarter problem.

  2. Well that is the thing the stock market could recouver 25% over the next year and it will not make any difference to unemployment. Everything is pointing to a long drawn out period of restructuring with lower levels of growth over the next 5-10 years in the US.

    The best case scenario for Canada is that the Asian economies recover quickly and convert themselves into internally demand driven economies that drive up the prices of raw materials and provide a vent for investment. That too will take time.

    So it seems to me that the Canadian labour market is going to get worse (I will stick to my 10-11% narrow unemployment call) and then recover very slowly. That would seem to be three years (min) of ugly labour markets. All of which point in the direction of a robust EI regime coupled with a robust training regime and all coupled, as Panitch has suggested, to a robust system for restructuring much of the manufacturing sector to build other things.

    My pessimism says that there is not any appetite for a robust industrial policy and therefore no way to fashion a vision for a robust training and EI regime.

    Low growth neoliberalism.

  3. “My pessimism says that there is not any appetite for a robust industrial policy ”

    Heh! Just pessimism telling you that?

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