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  • Community Economic Development in Manitoba - a new film January 16, 2018
    Cinameteque, Jan 23.  7:00 pm - Free event Film Trailer CCEDNET-MB, CCPA-MB, The Manitoba Research Alliance and Rebel Sky Media presents: The Inclusive Economy:  Stories of Community Economic Development in Manitoba
    Canadian Centre for Policy Alternatives
  • Winnipeg's State of the Inner City 2018 January 3, 2018
    Winnipeg's community-based organizations are standing on shakey ground and confused about how to proceed with current provincial governement measurements.  Read the 2018 State of the Inner City Report.
    Canadian Centre for Policy Alternatives
  • Our Schools/Our Selves: Winter 2018 is online now! December 18, 2017
    For the first time, this winter we are making Our Schools/Our Selves available in its entirety online. This issue of Our Schools/Our Selves focuses on a number of key issues that education workers, parents, students, and public education advocates are confronting in schools and communities, and offers on-the-ground commentary and analysis of what needs to […]
    Canadian Centre for Policy Alternatives
  • Charting a path to $15/hour for all BC workers November 22, 2017
    In our submission to the BC Fair Wages Commission, the CCPA-BC highlighted the urgency for British Columbia to adopt a $15 minimum wage by March 2019. Read the submission. BC’s current minimum wage is a poverty-level wage. Low-wage workers need a significant boost to their income and they have been waiting a long time. Over 400,000 […]
    Canadian Centre for Policy Alternatives
  • CCPA-BC joins community, First Nation, environmental groups in call for public inquiry into fracking November 5, 2017
    Today the CCPA's BC Office joined with 16 other community, First Nation and environmental organizations to call for a full public inquiry into fracking in Britsh Columbia. The call on the new BC government is to broaden a promise first made by the NDP during the lead-up to the spring provincial election, and comes on […]
    Canadian Centre for Policy Alternatives
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Stay the course

The Fall Economic Update was hosted this week by the Fredericton Chamber of Commerce. It seems Minister Flaherty wanted to be sure of friendly faces when he announced that the 2012-2013 budget deficit will likely be $5-$7 billion higher than forecast in March. The reason for the higher deficit is that nominal GDP will be lower than expected, which in turn means lower government revenues.  Given that Europe has returned to recession and the US faces an austerity bomb, there are continued global risks to the Canadian economy.

Minister Flaherty’s message was, essentially, “stay the course”.  There is an unspecified plan that can be executed should the outlook worsen (likely more public sector cuts, as David MacDonald outlines here).

Public spending and public service cuts are probably the most counter-productive response in the current economic climate.  The Parliamentary Budget Officer estimates that the cuts announced in March 2012 will take 1% out of real GDP from 2014 through 2016, and result in 125,000 fewer jobs for 2016.  This all means that government revenues will be even lower than expected, prompting further belt-tightening.

This at a time when Canada’s debt-to-GDP ratio is the envy of other industrialized nations, and borrowing costs are at record lows.  If anyone can afford to borrow to invest in the future, it is Canada, right now.

What to invest in?  The Federation of Canadian Municipalities is calling on the government to invest in critical municipal infrastructure.  This is the kind of investment that puts people to work, makes life better, and improves labour productivity.  This is the kind of investment that businesses rely on governments to make.  A multi-year plan allows smarter and more productive investments.  Real Jobs and Growth kind of stuff.

 

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