Calgary Home Prices drop 3.3% in May a record.
It’s worthwhile to place this analysis within the context of a larger debate about the labor market and why it’s not delivering broad-based wage growth to the people who comprise it. Since 2000,median wages have stagnated and the labor market participation rate has fallen, as have the rates of job-to-job mobility and household and small business formation. Young workers are not climbingthe job ladder to the middle class. The share of national income earned by workers declined. Over an even longer timeframe, wages have not kept pace with worker productivity.
All of these phenomena suggest that the labor market isn’t working for most employees—problems that aren’t confined to those without a college education—and that suggests the problem isn’t that too few people have college degrees. Rather than focus on education attainment as the solution to inequality, it’s time for policy-makers to move on from the race between education and technology and focus on our stagnant labor market. As Summers said, “the core problem is that there aren’t enough jobs.” The key to reducing inequality is more jobs and a higher demand for labor. In the absence of more jobs, heroic assumptions about educational improvement are likely to deliver only modest economic benefits.
Via Calgary Herald
The 400-tonne heavy haulers that rumble along the roads of northern Alberta’s oilsands sites are referred to in Fort McMurray as “the biggest trucks in the world,” employing thousands of operators to drive the massive rigs through the mine pits.
Increasingly, however, the giant trucks are capable of getting around without a driver. Indeed, self-driving trucks are already in use at many operations in the province, although they are still operated by drivers while the companies test whether the systems can work in northern Alberta’s variable climate.
That is about to change.
Suncor Energy Inc., Canada’s largest oil company, confirmed this week it has entered into a five-year agreement with Komatsu Ltd., the Japanese manufacturer of earthmoving and construction machines, to purchase new heavy haulers for its mining operations north of Fort McMurray. All the new trucks will be “autonomous-ready,” meaning they are capable of operating without a driver, Suncor spokesperson Sneh Seetal said.
For Suncor’s roughly 1,000 heavy-haul truck operators, however, the prospect of driverless trucks has raised more immediate fears of significant job losses.
“It’s very concerning to us as to what the future may hold,” said Ken Smith, president of Unifor Local 707A, which represents 3,300 Suncor employees. Smith said Suncor has signed agreements to purchase 175 driverless trucks.
“It’s not fantasy,” Suncor’s chief financial officer Alister Cowan told investors at an RBC Capital Markets conference in New York last week. He said the company is working to replace its fleet of heavy haulers with automated trucks “by the end of the decade.”
“That will take 800 people off our site,” Cowan said of the trucks. “At an average (salary) of $200,000 per person, you can see the savings we’re going to get from an operations perspective.”
This is the neoclassical market dream come true. Post critiques Einhorn's critique of shale producers. One graph to rule them all, one graph to bind them. Pretty much in line with what I taught my Econ 327 World oil markets course this winter.