Jeremy Kronick Becomes Co-Chair of the C.D. Howe Institute Monetary Policy Council
We are pleased to announce that Jeremy Kronick, Associate Vice President and Director of the C.D. Howe Institute Centre on Financial and…Optimizing Immigration for Economic Growth
While Canada’s skilled immigration system has been the envy of the world for decades, the post-pandemic years have seen policy prioritize plugging “holes” in lower-skilled labour markets, which is consistent with popular notions that some types of labour are “essential” to production. Instead, Canada’s economic-class immigration system should return to its successful roots by prioritizing […] No More Filling Holes – Canada’s Economic Immigration Strategy Needs to Focus on GDP Per Capita
Canada’s economic immigration strategy needs to shift away from plugging “holes” in lower-skilled labour markets to prioritizing highly skilled newcomers based on their expected earnings to boost our country’s economic growth, according to a new C.D. Howe Institute report. …DeLand, Gilmour – More Work Needed on Major Project Legislation
To: Canadian Project Watchers From: Charles DeLand and Brad Gilmour Date: July 10, 2024 Re: More Work Needed on Major Project Legislation One reason Canada’s per capita GDP has stalled and may continue to stagnate, putting Canadians’ living standards at risk, is that we struggle to build large projects cheaply and quickly. The federal government has finally acknowledged there is too […] Ed Waitzer – Market failure has caused fighting climate change to worsen economic inequality
Published in the Globe and Mail.
In evaluating courses of action, corporate decision makers tend to prioritize present and private benefits while discounting long-term costs – especially external ones imposed onto others. Economists term this “market failure,” which are to be publicly regulated by way of taxation, fines, mandates, subsidies or other “nudges.”
Such myopia is not unique to private actors, though. Politicians and public bureaucrats are typically more short-sighted, focusing on maintaining and expanding their power.
Regulatory agencies in the United States, for example, are increasingly subject to political interference and, because they are specialized, are often incapable of addressing the cascading…
John Lester – Rethinking How We Support R&D
To: Canadians Concerned About Innovation From: John Lester Date: July 9, 2024 Re: Rethinking How We Support R&D After two rounds of consultations, Finance Canada is considering reforms to its scientific research and experimental development (SR&ED) program. The review takes place against the backdrop of distressingly poor productivity performance, worries about the amount and effectiveness of R&D performed in Canada, […] Oreopoulous, Skuterud – Once the envy of the world, Canada’s immigration system now lies dismantled
Published in the Globe and Mail
At the crux of economic immigration policy is the question of whether immigrant selection should prioritize current labour market needs or the human capital of applicants. Does Canada need more farmhands and delivery riders, or do we want more scientists and tech workers?
For economists, the answer is simple.
Governments should rely on competitive markets to allocate labour to where it is most productive and focus immigration on raising the average skill level of the population.
Where there are genuine labour shortages, governments can help job seekers identify opportunities but should allow competition for scarce labour to incentivize businesses to increase wages to attract…
Lewis, Dupuy – We must not let nostalgia cloud our vision for Ontario’s economic future
Published in TVO.
Despite bold promises and billions of dollars of support, Ontario manufacturing jobs remain around the same level as when Doug Ford’s Progressive Conservatives came to power. The province needs to move past the nostalgic view of the manufacturing sector and instead focus on an economy based on innovation and advanced technologies so it can thrive in an ever-changing global economy.
Manufacturing jobs hold a special place in Ontario’s economic, social, and political mindset because of the historical role the sector has played in driving growth, jobs, and prosperity. The sector has provided jobs across the province since the early days of industrialization in the 19th century, offering opportunities for…
DeLand, Gilmour – Federal government ‘fixes’ to overreach come up short
Published in the Financial Post
One reason Canada’s per capita GDP has stalled and may continue to stagnate, putting Canadians’ living standards at risk, is that we struggle to build large projects cheaply and quickly.
The federal government has finally acknowledged there is too much uncertainty in getting major projects approved and has promised certain “fixes,” including recently enacted amendments to its controversial Impact Assessment Act (IAA), which its opponents tagged the “No more pipelines act.” Are those amendments on the right track and will they help get projects built? In our view, no. Instead, we need serious fixes to avoid further litigation and investment uncertainty.
The IAA amendments are a…
A.J. Goulding – Affordability, Practicality, and Reality: The Rocky Path to Net Zero
From: A.J. Goulding To: Provincial Ministers of Energy Date: July 4, 2024 Re: Affordability, Practicality, and Reality: The Rocky Path to Net Zero A recent Canadian Electricity Advisory Council report emphasizes that affordability is critical to the success of the energy transition; affordability is possible, “but the path is narrow” and “pragmatic, thoughtful measures will be needed.” […] John Lester – Size shouldn’t matter for R&D business subsidies
Published in the Financial Post
After two rounds of consultations, Finance Canada is considering reforms to its scientific research and experimental development (SR&ED) program. The review takes place against the backdrop of distressingly poor productivity performance and worries about the amount and effectiveness of R&D performed in Canada and the incentives for innovative startups to commercialize and scale-up their operations.
These concerns exist even though the federal government spent almost $11 billion last year to support innovation. Innovative firms get support to: hire skilled workers, perform R&D, commercialize inventions and scale-up their operations.
The program review should recognize where…
John Lester – Size shouldn’t matter for R&D business subsidies
Published in the Financial Post
After two rounds of consultations, Finance Canada is considering reforms to its scientific research and experimental development (SR&ED) program. The review takes place against the backdrop of distressingly poor productivity performance and worries about the amount and effectiveness of R&D performed in Canada and the incentives for innovative startups to commercialize and scale-up their operations.
These concerns exist even though the federal government spent almost $11 billion last year to support innovation. Innovative firms get support to: hire skilled workers, perform R&D, commercialize inventions and scale-up their operations.
The program review should recognize where…