THE ECONOMY AND JOBS

‘When times are good, that is the time to pay down debts . . . There are some very troubling signs on the horizon that Canada may be heading into some difficult periods.’ —Andrew Scheer, Sept. 12, 2019, at the Maclean’s/ Citytv federal leaders debate

During the last federal election, the NDP and the Conservatives promised to run four years of balanced budgets. The Liberals promised to run deficits at first and balance the budget by their fourth year in office—but that didn’t pan out. This time, the Liberals are doubling down on deficit spending—even as the economy appears to be booming with healthy job numbers and GDP growth. But if the economy is chugging along so well, why are Canadians suddenly googling the word “recession” at the highest rate in over a decade? (And why so much government largesse?) Fears of an economic slowdown loom large, and with them pressure on the parties to prove they have a plan for uncertain times.

LIBERAL

· Deficit spending of more than $20 billion for each of the next 4 years, beginning with $27.4 billion next year · Provide up to 2,000 entrepreneurs a year with as much as $50,000 to launch a new business · Give $250 to every new business looking to

expand online services · Cut the cost of federal incorporation by

75 per cent · Invest $100 million in skills training to ensure there are enough qualified workers to keep up with energy audits, retrofits and net-zero home construction

CONSERVATIVE

· Balance the federal budget in five years · Review all business subsidy programs to

eliminate $1.5 billion in corporate handouts · Reduce federal regulations by 25 per cent · Implement a 2-for-1 rule, where for every

new regulation added, two rules are dropped

NDP

· Ensure that Canada’s debt-to-GDP ratio falls

over the next decade · Create 300,000 jobs through incentives and investments via the party’s “new deal for climate action” · Put in place rules to require that part-time

and contract workers be compensated equally to full-time workers · Restore the Automotive Innovation Fund to support research and development initiatives of companies in the automotive sector · Require the use of Canadian-made steel and aluminum for infrastructure projects across the country · Require employers to spend at least 1 per cent of payroll on training for their employees annually · Overhaul employment insurance (EI), setting the qualification threshold at 360 hours to cover more workers, while creating a new worker’s development and opportunities fund to expand training options beyond those who qualify for EI · Ban unpaid internships outside of educa

tional programs GREEN

· Balance the federal budget over five years · Establish a sustainability fund for investment in trades, apprenticeships and education required for transition to a green economy · Ban unpaid internships in private sector workplaces, with the exception of workstudy or placements through post-secondary institutions · Create a community and environment service corps as part of the federal Youth Employment and Skills Strategy · Reject back-to-work legislation as a bargaining tool with unionized federal public service employees NOW LET’S HEAR FROM AN EXPERT “Between the effects of Trump, Brexit and China, slowing growth could morph into recession in Canada’s economy. We’ll need more than interest rate cuts to offset what the hit to the export-side of the economy could mean. But refocusing on policies to optimize the domestic side of the economy won’t come easy after decades of emphasis on export-led growth.

The next federal government has little influence over the traded part of the economy, except to slow it further still with retaliatory measures. But it has loads of influence on the domestic side of the economy. Federal policies and financing frameworks can improve Canadians’ skill development, reduce gaps in employment rates, increase fairness in pay and benefit practices, ensure adequate income supports when people are between jobs or too old or too young to work, and guarantee a plan to eliminate our $270-billion infrastructure deficit. That’s a lot of influence, especially in an era of slowth (slow or no growth).”