Economy

STATEMENT by Andrew Jackson, Senior Policy Advisor, Broadbent Institute, on the fall Economic and Fiscal Update.

The Advisory Council on Economic Growth chaired by Domenic Barton has proposed to federal Finance Minister Bill Morneau the creation of an independent Canadian Infrastructure Development Bank (CIDB) to help finance $200 billion of public infrastructure projects over the next decade. There is an argument for improved financing tools, but no case for such a lever for massive and costly privatization.

The report of the Council reiterates the consensus view that investment in public infrastructure such as roads, mass transit, railways, ports, water and waste water treatment, clean energy and power grids has been too low, and that a major increase could drive immediate job creation while also boosting longer term economic growth.

The Alberta government has done it.

On October 1^st, the minimum wage increased by one dollar to $12.20 per hour, making it the highest provincial, but not territorial, minimum wage in Canada. 

On September 22 and 23, the Broadbent Institute hosted Progress Summit BC to chart a progressive path forward for the province in this critical election year.

In a marquee panel on the future of BC's economy, panelists were asked to answer the following question: What must change to ensure BC’s economy in 2030 secures shared and sustainable prosperity? Below are excerpts from each panelists' remarks.

On September 22 and 23, the Broadbent Institute hosted Progress Summit BC to chart a progressive path forward for the province in this critical election year. The Summit kicked off with a discussion about the co-operative economy in BC, and how that model can be expanded and advanced in the decades ahead. Watch the video of Vancity CEO Tamara Vrooman in conversation with Janet Austin, CEO of YWCA for Metro Vancouver.

On September 22 and 23, the Broadbent Institute hosted Progress Summit BC to chart a progressive path forward for the province in this critical election year. In the panel entitled 'Retrieving affordability: progressive policy solutions for BC’s housing crisis' panelists were asked to outline what practical, progressive, policies can ensure future generations of lower and middle-income British Columbians can live and thrive in their cities. A summary of their remarks are outlined below. 

With the global economy mired in slow growth and right-wing, nationalist populism in the ascendant in many of the advanced industrial countries, one might have hoped that the G20 summit in Hangzhou, China would have come up with a real plan to promote a sustainable, shared recovery. 

If so, one would be very disappointed since the final communique consisted mainly of empty rhetoric and evaded the key issues of competitive fiscal austerity and increasing income inequality. 

Progressive tax reform to promote both greater distributional fairness and increased fiscal capacity to fund social programs and public services should be squarely on the agenda for the 2017 federal budget. Indeed, with faltering growth, the federal Liberals will be hard-pressed to meet their commitments to new investments,while still ensuring a promised decline in the federal debt to GDP ratio, if they do not significantly increase revenues.

Good jobs are a central mechanism in the creation of shared prosperity.

What matters for workers is not just being able to find any job but also security of employment, level of pay, working conditions, and the opportunity to develop talents and capacities. 

The narrow victory of the leave side in the Brexit referendum demands a profound rethinking of the liberal globalization agenda.

At one, highly disturbing level, the majority for leave was a clear victory for the nativist, often overtly racist, populist right, and a clear defeat for the economic and political elites who overwhelmingly backed the remain side. As widely noted, this underlines the lack of broad popular support for deep economic and political integration which seems to be increasingly pervasive in both Europe and the United States.