Op-Eds
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.…
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…
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…
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…
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…
