If Canadian policymakers want to emulate some of Singapore’s economic success and increase living standards, they should strengthen the fundamental linkage between investment risk-taking and the rewards for assuming investment risk.
It is crucially important to the future health of Canada’s economy that Canadian trade representatives propose bold new trade initiatives that address current bilateral trade irritants and open new trade opportunities with the U.S.
The fall economic update proposed significant new regulatory burdens on Canadian businesses to ostensibly lower prices for consumers. However, these proposals are ill-conceived, miss the root causes of the problem, and simply shift costs from one group of consumers to another.
despite any wishful thinking on behalf of ESG proponents, there are practical limits to abandoning shareholder-focused governance. If societies want to promote broad social objectives, they should employ laws and regulations—not rely on executive fiat.
Ottawa doesn’t need a new agency to spur more innovation in the Canadian economy. Rather it could simply implement some time-tested reforms. Studies have shown that lower tax rates promote innovation.
Demographic change, particularly the aging of the population, means that if the average working Canadian wants to maintain or increase his or her level of disposable income and standard of living, the country must increase the amount of physical capital per worker.
An expansive government-mandated ESG reporting regime in Canada will likely have costs—particularly on small and medium-sized enterprises—that outweigh any social benefits.
It is not certain that using non-traditional monetary tools to promote greater social equity are the most cost-effective ways to address inequalities in society.
If no substantive changes are made to Canada’s OAS and GIS programs, the chief actuary projects that total combined spending on the two programs will increase by 400 percent between 2020 and 2060.
Proponents of Modern Monetary Theory argue that historical episodes of money-printing resulting in hyper-inflation are not appropriate models of “well-practiced” MMT. But history also suggests that fine-tuning the economy through fiscal policy is extremely difficult.