Notes & References
THE LETTER - END NOTES
Multiple studies show that half of all jobs are at risk of automation in Canada, US, and abroad. Some studies show less. All studies caution at the hollowing of the middle class and creation of more low-paying jobs
Manufacturing in Ontario contracted when China entered the global manufacturing market in the early 2000’s. Today people starting out in business operations jobs, graphics artists, administration and coordination jobs, etc, are competing with people ½ to ⅕ their salary on open global labour markets like Upwork.com & Fiverr.com
“Due to the Amazon Effect, the entire brick-and-mortar retail industry is slowly shutting down...The impact on job eliminations will be staggering.”
"This is widely documented, that displaced workers are re-employed at lower wages," says Tombe.”
Why wages aren’t going up while unemployment is down - https://www.cbc.ca/news/business/inflation-canada-outlook-1.4167888
“The governor of Australia’s central bank [said] when he asks firms that are struggling to find workers why they do not pay more, they ‘look at me as if I’m completely mad’ and deliver a lecture on how competitive the world has become.”...“hawks think there is little room to boost real wages by running labour markets hotter. If they are proved right, it will be hard to refute the argument that structural changes in the economy, rather than weak demand alone, have stacked the deck against workers. Governments will then have to find novel ways to respond”, The Economist, June 30th, 2018 Print Edition. https://www.economist.com/finance-and-economics/2018/06/30/the-rich-world-needs-higher-real-wage-growth, Copy available here: https://pod.redfish.ca/posts/100cbed05f800136662b35162d7f1629
Entrepreneurship is in decline in Ontario and in the US. Most small businesses are self-funded, and if people have less money, there will be less new businesses starting.
Share of low-income jobs nearly doubles since 2001, and share of jobs that are minimum wage increases FIVE times since 1997.
Share of income of bottom 50% in Canada declines by 28% since 1982 while top 1% grows share of income by 53%
“Canada Child Benefit adding 0.5% points to economic growth this year, that’s pretty significant in the process of closing the output gap.” 11:04 seconds into this podcast
“child benefit program has been highly simulative. You can see that in the consumption figures. So we would not be where we are today if that had not occurred."
Correlation between start of CCB payments summer 2016 and beginning of unemployment decline
Canada has Canada Worker Benefit, US has the EITC, and UK has the Working Tax Credit. Effectively this means that governments already know that the economy is structurally unable to produce living wage job