Skip to main content
McMaster University Menu Search
News

AltAusterity Digest #18 October 12-18, 2017

This week in Austerity News:

Oct 20, 2017

The Manitoba government has issued a statement claiming that a two-year wage freeze imposed on public-sector workers unions does not violate their right of association under The Charter of Rights and Freedoms. This statement comes after public sector unions launched a court challenge to the controversial Public Services Sustainability Act. In Monday’s court filing, the province argued that it’s high deficit, rising expenditures and increasing debt servicing costs required a legislative solution to labour relations.

According to a report from the Resolution Foundation, the combination of the UK benefit freeze and Brexit inflation will hit low-income households with children the hardest. Inflation has been driven to nearly 3% as the cost of imported good has risen after the pound’s severe post-Brexit devaluation. In addition to inflation, the report claims the benefits freeze could result in the biggest real-terms cut in the value of their benefits for decades.

Analysis from the nonpartisan Tax Policy Center, has shown that Trump’s proposed tax cuts would decrease taxes for the average household in the top 1% of income earners by $207,060. The average household in the bottom 99% would receive a tax cut of $343, and one in four households would see their taxes increase. These cuts would reduce federal revenues by $2.4 trillion over 10 years.

The OECD study Preventing Ageing Inequality claims that in 2015, on average, there were 28 people aged 65 or older for every 100 working age people in OECD countries. This figure is projected to rise to 53 per 100 in 2050, meaning one senior for every two working age citizens. With the rise of more non-standard work arrangements, it is likely that higher proportions of the future elderly will have periods of unemployment and lower pension contributions. These considerations could have serious implications for inequality.

That's it for this week's Digest! Check back next Friday morning for another edition, or subscribe to our newsletter for a weekly roundup. We'll also Tweet each time we add new content, so you can keep up with our work @AltAusterity and join the #altausterity conversation!