Friday, February 05, 2021

I'm Sure It's Nothing to Be Concerned About

Nope:

 The Canadian labour force survey for January was released on Friday by Statistics Canada, revealing the impacts of lockdown measures put in place mainly in Ontario and Quebec.

According to the survey, employment fell by 1.2 percent, or 213,000 jobs, in January, with losses "entirely in part-time work and were concentrated in the Quebec and Ontario retail trade sectors."

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But ... but ... basic welfare!:

By contrast, and as stands to reason, the greater the income-testing, the greater the poverty reduction. But greater income testing means, as the report says, “work disincentives … Any feasible basic income that also seeks to sharply reduce poverty simply would not reduce the welfare wall in the way many basic income advocates claim it would.” The welfare wall is the problem that if you reduce welfare recipients’ benefits by $1 (or something similar) for every $1 they earn on their own, that pretty much walls them into permanent welfare: their financial gain from working is minimal.

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One could let the market decide wages:

Many minimum wage advocates say that some studies show no effects, or even positive effects, of minimum wages on employment. But the downward-sloping demand curve, which is at the core of economics, holds that as the price of something increases, people will buy less of it. We cannot say on the basis of “some studies” that the demand curve does not apply to labour, especially since those studies are in the minority.



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