Economy

Opinion | Today’s Opinions: U.S. economy; Clarence Thomas; Israel; and more

Published

12 months ago

October 28, 2023

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In today’s edition:

The economy is good, unless you say it’s bad

Here’s some good news: The U.S. economy is beating forecasts. Here’s some great news: Those forecasts were made even before the pandemic upended everything.

So with GDP growing at a brisk annualized rate of almost 5 percent, why does everybody still think the economy is so bad?

Catherine Rampell’s column takes a tour through this week’s Commerce Department report on the economy, which also contained encouraging numbers on inflation and rising wages. Things, in short, are looking very good.

But look over your shoulder, as many Americans seem to be doing, and the shock of inflation is still there, preserved in the freezer-case window next to the very expensive Eggos. As Catherine writes, “historical research from developed countries suggests that few things make the public angrier than an unexpected burst of inflation.”

Ramesh Ponnuru frames Americans’ discontent a little differently. He writes that wages just haven’t caught up to prices. A great chart in his column shows that wages are one area in which growth is still well below pre-pandemic trends.

“Americans will not consider the economy to be performing well unless their paychecks rise faster than their bills,” Ramesh predicts, arguing also that if the people who make up an economy say the economy is not doing well, it isn’t, period.

Could Republicans do better? The Editorial Board pulled together what it found to be the 2024 presidential candidates’ best and worst ideas for the economy.

Winners included Nikki Haley’s sensible proposals to reform Social Security; losers included Vivek Ramaswamy’s, well, mostly everything. Find the full list in the editorial.

Prudent loan forgiveness?

“The case of Clarence Thomas’s motor home gets curiouser and curiouser.” I’m always saying this!

That’s the headline on Ruth Marcus’s column on the latest news of the Supreme Court justice’s fishy financial entanglements. If you’re not up to date, Thomas had claimed he repaid the $267,000 loan from a friend that allowed him to purchase a luxury motor home. But now, a Senate Finance Committee report’s findings on the transaction don’t square with that claim.

If this were a one-off, fine, maybe. But after all the other money high jinks, Ruth writes, Thomas “has forfeited the benefit of the doubt.”

Chaser: Read Alexandra Petri’s imaginary dispatch from the luxury yacht Thomas wished was actually a motor home parked in a Walmart parking lot.

From George Will’s column explaining his concern about the military readiness of the Navy and, therefore, its deterrence capabilities. He considers the fleet “shockingly short of capacities commensurate with the world’s multiplying threats.”

And things aren’t really getting fixed, either. To comply with certain international commitments, the United States would need to be building on average at least 2.3 attack subs every year; it is building 1.2.

Take one more step back: “Shipbuilding facilities sufficient to fulfill the aspirations do not exist and cannot be quickly created,” George writes. That’s not to mention the military’s recruiting shortfalls.

The country is becoming complacent, George worries, and history is not usually kind to leaders who flub safeguards against war.

Chaser: Last month, former defense secretary Mark Esper proposed some promising solutions for the military’s dip in recruiting.

More politics

As different as this crisis in the Middle East feels from earlier emergencies in the area — on scale, on global attention — the challenge the United States faces is the same as ever, David Ignatius writes: “How can it protect Israel, its closest ally in the region, while also bolstering stability and maintaining its partnerships with Arab neighbors?”

David recognizes it as a tricky tightrope and lauds President Biden as a particularly talented funambulist so far. His column lays out where the United States ought to go from here, all the while keeping up its leadership mantle.

Jason Willick, however, is not so convinced that the administration is making the right moves. His column is a warning: Constrain Israel too much, and the region might end up more dangerous than ever.

Chaser: Chuck Lane spoke this week with the daughter of an Israeli held hostage by Hamas. Her plea to the world is moving.

Smartest, fastest

House Speaker Mike Johnson’s conspiracy theories about “illegals” mark a new GOP low on immigration, Greg Sargent writes.
Rick Reilly could hardly be more excited for Sunday’s NFL matchup between Dolphins coach Mike McDaniel, the league’s “funniest and freshest,” and Patriots coach Bill Belichick, its “frumpiest and frowniest.”
Post Grad writer Renee Yaseen explains in her latest newsletter why living at home post-college is not a failure to launch.

It’s a goodbye. It’s a haiku. It’s… The Bye-Ku.

Forgive inflation

But don’t ever forget it

(Also, don’t forgive)

Plus! A Friday bye-ku (Fri-ku!) from reader Karen P.:

Poor little peace dove

Feathers charred, plucked out and lost

No calm for this world

***

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Economy

Minimum wage to hire higher-paid temporary foreign workers set to increase

Published

9 hours ago

October 21, 2024

Anne Joseph

OTTAWA – The federal government is expected to boost the minimum hourly wage that must be paid to temporary foreign workers in the high-wage stream as a way to encourage employers to hire more Canadian staff.

Under the current program’s high-wage labour market impact assessment (LMIA) stream, an employer must pay at least the median income in their province to qualify for a permit. A government official, who The Canadian Press is not naming because they are not authorized to speak publicly about the change, said Employment Minister Randy Boissonnault will announce Tuesday that the threshold will increase to 20 per cent above the provincial median hourly wage.

The change is scheduled to come into force on Nov. 8.

As with previous changes to the Temporary Foreign Worker program, the government’s goal is to encourage employers to hire more Canadian workers. The Liberal government has faced criticism for increasing the number of temporary residents allowed into Canada, which many have linked to housing shortages and a higher cost of living.

The program has also come under fire for allegations of mistreatment of workers.

A LMIA is required for an employer to hire a temporary foreign worker, and is used to demonstrate there aren’t enough Canadian workers to fill the positions they are filling.

In Ontario, the median hourly wage is $28.39 for the high-wage bracket, so once the change takes effect an employer will need to pay at least $34.07 per hour.

The government official estimates this change will affect up to 34,000 workers under the LMIA high-wage stream. Existing work permits will not be affected, but the official said the planned change will affect their renewals.

According to public data from Immigration, Refugees and Citizenship Canada, 183,820 temporary foreign worker permits became effective in 2023. That was up from 98,025 in 2019 — an 88 per cent increase.

The upcoming change is the latest in a series of moves to tighten eligibility rules in order to limit temporary residents, including international students and foreign workers. Those changes include imposing caps on the percentage of low-wage foreign workers in some sectors and ending permits in metropolitan areas with high unemployment rates.

Temporary foreign workers in the agriculture sector are not affected by past rule changes.

This report by The Canadian Press was first published Oct. 21, 2024.

— With files from Nojoud Al Mallees

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Economy

PBO projects deficit exceeded Liberals’ $40B pledge, economy to rebound in 2025

Published

4 days ago

October 17, 2024

Anne Joseph

OTTAWA – The parliamentary budget officer says the federal government likely failed to keep its deficit below its promised $40 billion cap in the last fiscal year.

However the PBO also projects in its latest economic and fiscal outlook today that weak economic growth this year will begin to rebound in 2025.

The budget watchdog estimates in its report that the federal government posted a $46.8 billion deficit for the 2023-24 fiscal year.

Finance Minister Chrystia Freeland pledged a year ago to keep the deficit capped at $40 billion and in her spring budget said the deficit for 2023-24 stayed in line with that promise.

The final tally of the last year’s deficit will be confirmed when the government publishes its annual public accounts report this fall.

The PBO says economic growth will remain tepid this year but will rebound in 2025 as the Bank of Canada’s interest rate cuts stimulate spending and business investment.

This report by The Canadian Press was first published Oct. 17, 2024.

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Economy

Statistics Canada says levels of food insecurity rose in 2022

Published

5 days ago

October 16, 2024

Anne Joseph

OTTAWA – Statistics Canada says the level of food insecurity increased in 2022 as inflation hit peak levels.

In a report using data from the Canadian community health survey, the agency says 15.6 per cent of households experienced some level of food insecurity in 2022 after being relatively stable from 2017 to 2021.

The reading was up from 9.6 per cent in 2017 and 11.6 per cent in 2018.

Statistics Canada says the prevalence of household food insecurity was slightly lower and stable during the pandemic years as it fell to 8.5 per cent in the fall of 2020 and 9.1 per cent in 2021.

In addition to an increase in the prevalence of food insecurity in 2022, the agency says there was an increase in the severity as more households reported moderate or severe food insecurity.

It also noted an increase in the number of Canadians living in moderately or severely food insecure households was also seen in the Canadian income survey data collected in the first half of 2023.

This report by The Canadian Press was first published Oct 16, 2024.

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