Highlighting recent economic studies and developments
Elder care costs rising for children
Taking care of aging parents costs their children over $33 billion annually in time off work and out-of-pocket expenses, according to estimates by CIBC economists Benjamin Tal and Royce Mendes. Close to 30 per cent of workers with parents over 65 take time off work for elder care, averaging nine hours per week. The amount of money spent and time taken off work are significantly higher for women and people with lower incomes. These costs are expected to rise faster as our population ages and as costs of caring for the elderly increases.
Tax us, we’re rich!
While Donald Trump wants to slash taxes for corporations and top incomes, a group of wealthy New Yorkers is rebelling and is lobbying for the state to increase their taxes instead. Eighty millionaires and billionaires wrote to Andrew Cuomo, the Democratic governor of New York, and other lawmakers, saying they and other top earners should pay more to support schools, roads, bridges and programs to help poor and homeless residents of the state. They estimate another higher top rate could generate an additional $32 billion annually.
Swedish secrets to a strong economy
It may be at odds with conventional economic views, but Sweden is showing that strong unions and greater equality are the recipe for strong economic growth. Sweden’s economy has grown an average of 3.5 per cent annually since the Social Democratic Party formed government in 2014 – well above Canada and other European countries. This has been associated with strong job growth, rising real wages, rising productivity, low inflation, high tax rates, increased social spending, and balanced budgets. Sweden’s finance minister Magdalena Andersson, an economist, sums up their success in three points: “It’s the jobs, it’s our welfare and it’s our redistribution,” she says. Sweden also has the highest rate of labour force participation in the European Union thanks to publicly-funded parental leave and affordable daycare, which make it easier for all parents to work.