EI Lessons From South Of The Border

Commentary, Frontier Centre, Welfare, Worth A Look

“The Long-Term Effects of Generous Income Support Program: Unemployment Insurance in New Brunswick and Maine, 1940-1991,” found only 5.7% of male workers and 3.3% of female workers in Maine collected benefits in 1990. Cross the northern border into Canada and 29.5% of male workers and 29.7% of female workers were on the dole. The authors estimated more liberal benefits in N.B. accounted for two thirds of this difference. They also found that since 1982, the joblessness rate in N.B. has consistently been above 12% whereas the out-of-work rate in Maine has routinely been below 8%.

Leaders Go Left, But Economists Get Back To Basics

Frontier Centre, Role of Government, Taxation, Welfare, Worth A Look

The conventional view at Davos is that a previous consensus in favor of free enterprise has taken a huge beating from the Great Crash of 2008-2009. What is much less known is that many economists are not willing to play along. Instead, the crisis seems to have scared many economists of all kinds–including some previously heterodox–to reassert the orthodox recommendations of Econ 101.