Bishop, Ragab – In A Pandemic, Canada Needs Faster Economic Data: Here’s Our New Tracker
To: Canadian Businesses and Governments From: Grant Bishop and Mariam Ragab Date: April 15, 2020 Re: In a pandemic, Canada needs faster economic data: here’s our new tracker The shutdown of much of Canada’s economy has exposed gaps in the availability and frequency of data about Canada’s economy. Statistics Canada has peerless rigour for its officially released statistics. […] Robson, Kronick – Backstopping Provincial Borrowing
From: William B.P. Robson and Jeremy M. Kronick To: Federal and Provincial Finance Ministers Date: April 13, 2020 Re: Backstopping provincial borrowing Governments around the world are responding to the COVID-19 crisis with myriad measures – additional resources for healthcare, supports for individuals and businesses, tax deferrals and public health edicts that have slowed or stopped activity in […] Governments should rely on industry task forces to advise on restarting the economy – Globe and Mail Op-Ed
Last Friday’s grim labour-force numbers from Statistics Canada were just the latest evidence that COVID-19 is a threat not only to Canadians’ lives, but to our livelihoods. And those numbers predated the more complete shutdown that has closed so many businesses over the past three weeks.
By now, the tally of lost jobs will be in the millions. More people will be working reduced hours, earning less and fearing for the future. Even with government supports, bankruptcies are mounting, and temporary closures and layoffs are becoming permanent. The longer this lasts, the deeper and harder to repair the damage becomes.
As the seriousness of the novel coronavirus became clear, public health naturally took priority.…
Ottawa Should Release EI and CERB Data Quickly, Regularly: Crisis Working Group on Household Income and Credit Support
April 13, 2020 – The federal government should release data on Employment Insurance (EI) claims and the Canada Emergency Response Benefit (CERB) on a timely and regular basis, says the C.D. Howe Institute’s Crisis Working Group on Household Income and Credit Support.
The group, comprised of Canadian business leaders and economists and chaired by Michael Horgan, Senior Advisor at Bennett Jones LLP and former Deputy Minister of Finance, Government of Canada, held their third meeting on April 7, 2020 to identify and prioritize key policy challenges during the COVID-19 crisis, and consider policy options and recommendations.
In addition to calls for timely and regular data releases, the group recommended a focus on…
Dijkema, Speer – Saving The Charitable Sector From Its Covid Crisis
To: Department of Finance From: Brian Dijkema and Sean Speer Date: April 10, 2020 Re: Saving the charitable sector from its COVID crisis The charitable sector has not been spared by the sharp decline in economic activity brought on by COVID-19. Charities normally function as society’s shock absorbers when crisis hits, but the pandemic poses serious threats to […] How to prevent a COVID-19 provincial borrowing crisis – Globe and Mail Op-Ed
Governments around the world are responding to the COVID-19 crisis with myriad measures – additional resources for health care, supports for individuals and businesses, tax deferrals and public health edicts that have slowed or stopped activity in many sectors of the economy. One common consequence of these measures is that governments need massive amounts of money, both to finance the deficits that the new spending and recession will cause, and to backstop credit markets and cover temporary requirements from the delayed collection of taxes.
In addition to longer-term concerns about sustainability and intergenerational fairness, this surge of sovereign borrowing raises more immediate concerns about the willingness and ability of…
Let Canadians access their RRSP wealth for an immediate, cheap source of financial assistance – Financial Post Op-Ed
In recent weeks, Ottawa has announced several financial assistance measures for those most affected by the COVID-19 crisis. They include increased flexibility for employment insurance benefits, generous wage subsidies for businesses, and an emergency response benefit of $500 per week for affected workers and caregivers. But these programs pose implementation challenges that could result in Canadians waiting weeks to receive the financial assistance they need, assuming they qualify at all.
An unprecedented demand spike is already challenging the capacity of the employment insurance system, especially with Ottawa having closed Service Canada outlets across the country. Technical difficulties around eligibility conditions for the…
David Losier – Government Guaranteed “ready For Business” Cash Flow Loans
To: The Department of Finance From: David Losier Date: April 6, 2020 Re: Government guaranteed “ready for business” cash flow loans Many economists are predicting a V-shaped recession, deep and temporary. Fact is, the V will probably be a lopsided U, a sharp downturn followed by a flat line and a sloping recovery. The longer […] Médecine De Guerre Pour Sauver L’économie – La Presse Opinion
L’urgence n’est pas que médicale. Les gouvernements multiplient les mesures radicales pour stopper – coûte que coûte – l’hémorragie économique.
Les gouvernements devaient mettre de grands pans de l’économie sur pause pour freiner la pandémie. Mais depuis, les revenus se tarissent. Sans une importante transfusion d’argent, des entreprises feront faillite, des familles vivront des drames.
D’abord stabiliser le patient. Si on veut que l’économie reprenne après la pandémie, il faudra bien sûr que les entreprises survivent. L’enjeu à court terme : limiter le plus possible la destruction des capacités de production de l’économie. On s’occupera plus tard de relancer la demande.
Dans ses…
Bishop, Dachis, Robson – Making The Federal Wage Subsidy Work
From: Grant Bishop, Benjamin Dachis, and William B.P. Robson Date: April 6, 2020 To: Members of Parliament Re: Making the Federal Wage Subsidy Work Like the battle against the virus itself, the struggle to mitigate the economic impact of the COVID-19 crisis is forcing governments to act swiftly. The federal government’s Canada Emergency Wage Subsidy […] Jennifer Robson – Why Can’t They Just Send Us All A Cheque?
From: Jennifer Robson To: Federal data system designers Date: April 3, 2020 Re: Why can’t they just send us all a cheque? Right now, the Government of Canada is racing to roll out income support to allow people to make ends meet while respecting public health orders to sustain physical distancing to contain the threat […] The Canada Emergency Wage Subsidy is the right tool for this crisis – Financial Post Op-Ed
On Monday, the federal government announced the framework for a Canada Emergency Wage Subsidy (CEWS) to support employment by topping up payrolls for employers suffering COVID-19-related drops in revenue. More details came out on Wednesday, including the types of employers it will cover, the pay it will supplement, the size and duration of revenue drop that will trigger eligibility, and the estimated cost.
This is an extraordinary measure — something entirely new on the Canadian landscape. Not surprisingly, more details, including the application process and record-keeping requirements, are still to come. Parliament will need to approve it. It is not too early to say, however, that this initiative will turn out to be central in…