Alberta Politics & Government Thread 3.0

[iggy_oi]

Originally Posted by MelBridgeman

Huh? Inflation is a multi-faceted phenomenon with multiple contributing factors. So the answers is no.

Educate

https://www.anderson.ucla.edu/docume..._wage_push.pdf

I’m not sure you understand the definition of the word educate.

Do you have an actual argument to make for why you believe minimum wage earners will be worse off if their pay is increased or is your argument simply that you can’t apply critical thinking to a hot garbage “source”?

[MelBridgeman]

Originally Posted by iggy_oi

I’m not sure you understand the definition of the word educate.

Do you have an actual argument to make for why you believe minimum wage earners will be worse off if their pay is increased or is your argument simply that you can’t apply critical thinking to a hot garbage “source”?

I made my point thanks, should be easy to understand, maybe you missed some posts and replies, otherwise the strawman responses are making me sleepy.

[iggy_oi]

Originally Posted by MelBridgeman

I made my point thanks, should be easy to understand, maybe you missed some posts and replies, otherwise the strawman responses are making me sleepy.

Aww are you too shy to back up your claim that increasing minimum wage will be bad for minimum wage workers?

That actually kind of cute, but you’ll get you through this.

This is a safe space Mel, you can share your views and the worst thing that can happen is someone might write a response to it. No reason not to share your thoughts with actual words.

Tell you what, since you’re obviously a little bashful if you actually share your argument using your own words and specific facts I assure you that if any poster criticizes you by resorting to personal attacks I’ll tell them they’re an #######. Deal?

[TopChed]

Originally Posted by belsarius

I hate it when I try to look up a statistic and it ruins my bias.

Just thinking on indexing minimum wage toward CPI, I thought, well CPI tends to have a lot of noise at the minimum level, lots of things are unaffordable so it might skew the results. I thought housing is something that should be easy to find historically and maybe that's a better match since it is the majority of most people's budget.

Turns out in 1990 rent for a 1bdrm apartment was $428 a month, with a minimum wage of $4.50. Assuming full time employment that was 55% of your wages.

Ok, lets see when min wage went up in 1992 to $5. $452 a month ends up at 52%.

Ok, decent baseline, how does that match up with today? 1 bdrm apartment is $1,360, and with $15 minimum wage... 52% of income again.

But you can't live alone on minimum wage. Get a roomate in a 2bdrm and the % are actually better today than in 1990 - 31% of income compared to 34%

So while there are a plethora of other expenses, and it seems like more people trying to live on minimum wage (source needed - personal bias), the cost of renting an apartment in Alberta is pretty consistent when compared to the minimum wage.

Not really trying to make a point, other than this was not what I expected based on my own biases and I found it interesting.

$1,360 seems quite low - where did you pull that from?


The average 1bdrm in Calgary was $1,743 in June 2024, according to this article. Even if you're looking at the average for Alberta, the 1bdrm rent was $1,608.

[MrButtons]

CMHC released their fall rental market report a two weeks ago - there is only data for two bedrooms but a lot of good info in here.

National two bed rent (purpose built) - $1,447
Condominium Apartment Market - $2,199

Calgary two bed rent (purpose built) - $1,882
Condominium Apartment Market - $1,970

Linked here if anyone's bored https://www.cmhc-schl.gc.ca/professi...ted=calgaryDiv

[belsarius]

Originally Posted by TopChed

$1,360 seems quite low - where did you pull that from?


The average 1bdrm in Calgary was $1,743 in June 2024, according to this article. Even if you're looking at the average for Alberta, the 1bdrm rent was $1,608.

Alberta — Historical Average Rents by Bedroom Type

CMHC data is from their market survey, looking at rental costs for all units. It looks like that article is pulling from a Rentals.ca report looking at current listing prices. Difference can be longer term renters on better deals vs current open market conditions. CMHC is the average amount people are paying for rent, Rentals.ca is the average amount landlords are asking for rent.

[Amethyst]

Nenshi announces he is running for Notley's seat.

[Whynotnow]

Originally Posted by Amethyst

Nenshi announces he is running for Notley's seat.

Will be interesting what the UCP decides to do here. There’s likely a very slim chance anyone beats nenshi in that riding so they probably just run a no name ballot filler and basically concede. If they thought they had a shot they could drop in a big name and try to upset him but I can’t see any chance of that.

[TheIronMaiden]

Originally Posted by MelBridgeman

Huh? Inflation is a multi-faceted phenomenon with multiple contributing factors. So the answers is no.

Educate

https://www.anderson.ucla.edu/docume..._wage_push.pdf

I would find this argument more compelling if Corporate profits were not elevated. The minimum wage workers are generating wealth, more of it than pre pandemic rates, and yet they are enjoying none of those benefits.

Minimum wage push would only be a significant factor if corporate weather were low. They would be eating into Board of Trustee bonuses more than they would be increasing the costs of goods and services.



https://centreforfuturework.ca/2024/...omic-slowdown/

[MelBridgeman]

Originally Posted by iggy_oi

Aww are you too shy to back up your claim that increasing minimum wage will be bad for minimum wage workers?

That actually kind of cute, but you’ll get you through this.

This is a safe space Mel, you can share your views and the worst thing that can happen is someone might write a response to it. No reason not to share your thoughts with actual words.

Tell you what, since you’re obviously a little bashful if you actually share your argument using your own words and specific facts I assure you that if any poster criticizes you by resorting to personal attacks I’ll tell them they’re an #######. Deal?

Gaslight much? it's all laid out in this thread.

[MelBridgeman]

Originally Posted by TheIronMaiden

I would find this argument more compelling if Corporate profits were not elevated. The minimum wage workers are generating wealth, more of it than pre pandemic rates, and yet they are enjoying none of those benefits.

Minimum wage push would only be a significant factor if corporate weather were low. They would be eating into Board of Trustee bonuses more than they would be increasing the costs of goods and services.



https://centreforfuturework.ca/2024/...omic-slowdown/

Again more mind boggling terrible progressive economics in that link.

Statement

These excess profits remain a key factor in the stubborn inflation which continues to roil Canada’s macroeconomy.

Now for the facts

Inflation is often driven by factors unrelated to corporate profits, such as:
1. Supply chain disruptions
2. Rising wages
3. Monetary policy -> low interest rates
4. Inflation can also result from increased consumer demand outpacing supply

1,3 and 4 are the main reasons this time around.


The article begins with the premise that high corporate profits are inherently negative—a viewpoint often associated with far-left economic critiques. While it acknowledges that elevated corporate profits can, in some cases, contribute to inflation, the overall impact is relatively minimal compared to other significant factors such as supply chain disruptions, monetary policy, and consumer demand dynamics.

[iggy_oi]

Originally Posted by MelBridgeman

Gaslight much?

My lights run on batteries.

it's all laid out in this thread.

I can’t seem to find those posts. Would you mind quoting them in a response to this message? That way everyone will see how right you are and how wrong I am.

[MelBridgeman]

that is a big L for oioioioioioioioioiioi

[iggy_oi]

Originally Posted by MelBridgeman

that is a big L for oioioioioioioioioiioi

I play for fun so I’m not concerned with wins and losses.

I don’t know why you’re so hesitant to prove me wrong but we’re gonna get you through this Mel. Just share what you claim you’ve already shared, don’t worry about hurting my feelings in the event it completely defeats my argument. I’m sure I can handle that.

[PepsiFree]

Originally Posted by MelBridgeman

Again more mind boggling terrible progressive economics in that link.

Statement


Now for the facts



1,3 and 4 are the main reasons this time around.


The article begins with the premise that high corporate profits are inherently negative—a viewpoint often associated with far-left economic critiques. While it acknowledges that elevated corporate profits can, in some cases, contribute to inflation, the overall impact is relatively minimal compared to other significant factors such as supply chain disruptions, monetary policy, and consumer demand dynamics.

If you don’t understand pricing then you can’t understand inflation. Try again Mel.

[MelBridgeman]

Originally Posted by iggy_oi

I play for fun so I’m not concerned with wins and losses.

I don’t know why you’re so hesitant to prove me wrong but we’re gonna get you through this Mel. Just share what you claim you’ve already shared, don’t worry about hurting my feelings in the event it completely defeats my argument. I’m sure I can handle that.

I did share what i claimed in this thread, conversations with you are below my pay grade ok? You seem to live in a alternate reality.

[MelBridgeman]

Originally Posted by PepsiFree

If you don’t understand pricing then you can’t understand inflation. Try again Mel.

Ok so back it up soldier?

[iggy_oi]

Originally Posted by MelBridgeman

I did share what i claimed in this thread,

Then why are you incapable of showing me where you did so instead of making vague references claiming it happened? I’d just really hate for someone to come out of the woodwork and claim that you’re gaslighting us here.

conversations with you are below my pay grade ok?

How much do you get paid?

You seem to live in an alternate reality.

That would make me having this conversation with you a pretty neat trick, wouldn’t it?

[PepsiFree]

Originally Posted by MelBridgeman

Ok so back it up soldier?

OK.

As they rolled their eyes at the frustratingly familiar sight of price markups in grocery store aisles, shoppers in 2022 might have wondered whether corporations were doing everything they could to keep prices down as inflation hit generational highs. The answer now appears to be a resounding no.

A joint study by think tanks IPPR and Common Wealth found profiteering by some of the world’s biggest companies forced prices up significantly higher than costs during 2022.

…

Profits for companies in some of the world’s largest economies rose by 30% between 2019 and 2022, significantly outpacing inflation, according to the group’s research of 1,350 firms across the U.S., the U.K., Europe, Brazil, and South Africa.

In the U.K., the research found that 90% of profit increases occurred among just 11% of publicly listed firms. Profiteering was more broad in the U.S., where a third of publicly listed firms were responsible for most of the increase in profits.

The biggest perpetrators were energy companies like Shell, Exxon Mobil, and Chevron, which were able to enjoy massive profits last year as demand moved away from Russian oil and gas.

…

A June study by the International Monetary Fund (IMF) found that 45% of eurozone inflation in 2022 could be attributed to domestic profits. Companies in a position to benefit most from higher commodity prices and supply-demand mismatches raised their profits by the most, the study found.

https://fortune.com/europe/2023/12/0...flation-study/

But I’m sure your assertion that profits outpacing inflation doesn’t actually contribute to inflation is well sourced. So, let’s see it.

[belsarius]

Originally Posted by MelBridgeman

Again more mind boggling terrible progressive economics in that link.

Statement


Now for the facts



1,3 and 4 are the main reasons this time around.


The article begins with the premise that high corporate profits are inherently negative—a viewpoint often associated with far-left economic critiques. While it acknowledges that elevated corporate profits can, in some cases, contribute to inflation, the overall impact is relatively minimal compared to other significant factors such as supply chain disruptions, monetary policy, and consumer demand dynamics.

I disagree, corporate profits and markup are starkly higher post pandemic and are indeed a driver of inflation.

Firms have increased the amounts by which they mark up costs.
Between 1960 and 1980, markups averaged 26 percent above marginal costs and have been on a slow and consistent rise ever since. The average markup charged in 2021 was 72 percent above the marginal cost.

This is consistent with the widespread belief that companies with market power are taking advantage of the current situation to increase their profits (Konczal 2022; Groundwork 2022).53Profit margins are the highest they have been in more than 70 years.

..while profits were increasing steadily since 2010 and market concentration was also rising steadily, corporate profits increased sharply in 2021, exceeding pre-pandemic levels. In addition, corporate profits continued to rise through the third quarter of 2022 even as inflation increased. This rise in profits aligns with an analysis of earnings calls done by Groundwork Collaborative, which concludes that an overwhelming number of corporations claimed that inflation (that is, higher prices for them) was good for business and that they didn’t intend to reduce prices even as input costs came down sharply

Pages 39 - 43

https://rooseveltinstitute.org/wp-co...ort_202212.pdf