Canada’s tax system should be a cornerstone of strong economic performance, encouraging private investment, higher personal savings and high levels of labour force engagement and work effort while also addressing social priorities such as reducing child poverty. However, populist and opportunistic politics too often drive changes to the tax system, not considered analysis about what is best for long-term economic and employment growth and a healthy society. Is it possible to change how tax policy is made and refocus…
As expected, the Bank of Canada held its overnight rate target constant at 1.75 per cent this week.
More unexpectedly, with the release of its latest Monetary Policy Report, the central bank lowered its estimate of the neutral nominal rate – the rate compatible with full-capacity output and inflation equal to the 2-per-cent target – to 2.25 per cent to 3.25 per cent, from 2.5 per cent to 3.5 per cent. This means that the constant overnight target rate is closer to the neutral rate than previously thought, providing less stimulus to the economy. As the lower end of the range gets closer to 2 per cent, meaning the real neutral rate would be zero, it is fair to ask how much lower the neutral rate can go.
From a data…
Job quality and compensation are key determinants of living standards. Workers in non-standard jobs are particularly vulnerable as a growing number find themselves precariously employed. The government can protect this group by offering more equitable access to both employment insurance and job-training programs to better address income and employment insecurity.
Traditionally, preferred jobs are stable, well-paid and full-time, with access to benefits. On the other hand, precarious employment often offers low pay and is relatively insecure and unstable.
While employment precariousness can be found in many categories, several types of non-traditional employment are more likely to capture its features: temporary positions (…
