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Frank T. Denton and Byron G. Spencer, "Population, Labour Force and Long-term Economic Growth" Long-term trends in population growth, labour force participation and economic growth will have far-reaching consequences for the economy and for government finances. The authors make five sets of population and labour force projections, based on five different sets of assumptions, and calculate what rates of productivity increase would be necessary to maintain given growth rates of GDP and GDP per capita. The analysis suggests that immigration is one of the most important policy levers with which Canada might affect these long-term trends. William Scarth, "A Long-term Debt Reduction Strategy for Ottawa" A commitment to generational equity implies that we should reduce the federal government debt-to-GDP ratio to 20 percent within 20 years. To be credible, the debt-reduction program must be front-loaded to the point that there is no fiscal dividend in the current mandate. James B. Davies, "The Fiscal Dividend: Handling a Dangerous Idea" Higher interest rates or slower than expected growth could wipe out much of Ottawa anticipated fiscal dividend so we must be very cautious about spending the dividend before it materializes. The author recommends tax cuts, partly because they impose a deadweight loss on society in excess of the revenue they generate. He would begin by cutting the taxes and other special features that were incorporated into our personal income tax system over the past decade or so in order to get the deficit under control. Paul Boothe and Bradford Reid, "Credibility, Flexibility and Risk: Designing Balanced-Budget Rules" The authors consider the adoption a balanced-budget rule for the Canadian federal government as a vehicle for 1) sustaining balanced budgets into the future and 2) maintaining the hard-won credibility of the federal fiscal authority. Provided there is some flexibility in the rule's adjustment period, a balanced-buget rule with a contingency reserve of $6 billion would be sustainable and credible in the face of both favourable and unfavourable budget shocks. Ken Battle, Sherri Torjman and Michael Mendelson, "Reinvest the Fiscal Dividend" Ottawa now has a rare opportunity to reinvest and rebuild -- not the social system of the past, with its numerous faults and blemishes, but a stronger system geared to the economy and society facing us in the next century. An effective social security system still requires a strong federal presence both to bolster Ottawa's curcial redistributive role and to ensure strategic investment in high-priority areas such as employment, child poverty and health care. We cannot resurrect the carrot-and-stick so-called cooperative federalism" of the past, but instead must use the emerging handshake federalism" in which the federal and provincial governments work as equal partners to tackle pressing national problems. Jim Dinning, "Pay Down the Debt First" Let us not fall into the trap today of spending a fiscal dividend we might see in the years ahead. Nor should we be cutting taxes. The priority should be to cut the debt so that our interest costs will decline. Those are the real savings, the real fiscal dividend. R.D. Kneebone and Ken McKenzie, "The Implications of Fiscal Targets for Automatic Stabilization" After 20 years of relying on large deficits to finance its expenditures, the federal government has recently adopted a policy of announcing deficit targets that it will meet come hell or high water." An inevitable implication of budget targeting is that the federal budget balance will be less sensitive to changes in economic conditions. The purpose of this note is to examine briefly some of the implications of this policy change with respect to automatic stabilizers. Mahmood Iqbal, "Do Taxes Affect Investment Decisions?" A favourable tax regime can create a positive "perception" for investors. Canada is often perceived as a high tax country. This article provides a brief overview of the tax environment in Canada relative to its major competitors in the OECD, especially the US. It also identifies other factors that may hinder the flow of investment into Canada. Thomas M.J. Bateman, "The Calgary Declaration: More Than a String of Banalities" The doctrine of provincial equality pervades the Calgary Declaration. While this doctrine is purported to serve as an integrating principle of Confederation, in fact it is a touchstone of an incipient English-Canadian national ideology, giving content to that amorphous entity — ROC — that otherwise has no meaning, identity or institutional shape relative to the more coherent Quebec national and institutional identity. By denying the existence of a fundamental Canadian duality, the Calgary Declaration affirms it. Can there be a more Canadian result than this? Fabrice Rigaux, "La biopharmacie au Canada atlantique : un défi de politique industrielle régionale" The biotech sector is an important and growing economic force in Atlantic Canada. The author provides an outline of the industry and discusses what policy makers should do to ensure its continued growth. Brian Howe and Katherine Covell, "Public Policy on Fetal Protection" The recent Supreme Court of Canada ruling in the Winnipeg solvent abuse case highlights the need for new legislation in Canada to protect to-be-born from assault or abuse. Once a mother has chosen to bring a fetus to term, she has a responsibility to provide optimal conditions for the life and health of her to-be-born. Canadian public policy for child health is incomplete and deficient until it extends protection against abuse or assault to the to-be-born. David M. Beatty, "Proportional Representation and Equality: The Constitutional Guarantee" A response to Peter Aucoin and Jennifer Smith, Policy Options, November 1997. John S. McCallum, "McLeod's Dangerous Policy Prescriptions" A response to Alex McLeod, Policy Options, September 1997. |
