To the Editor:
At a meeting last week of the Regina & District Chamber of Commerce, I was asked about the single most pressing priority for Canada's economy. In my opinion, that priority is sustained and sustainable economic growth.
More than anything else, growth is what's needed to lift the fortunes of the middle-class and all those who are working so hard just to get there. And growth is an absolute imperative in balancing the federal budget on a secure foundation, and keeping it balanced.
But growth has been missing from most of Canada since the 2008 recession. In fact, during Stephen Harper's tenure in office, economic growth has averaged barely 1.5 per cent per year. That's the worst performance of any Prime Minister since R.B. Bennett in the 1930's.
Looking forward, the Bank of Canada has just down-graded its growth forecast for the coming year. The Organization for Economic Cooperation and Development (OECD) is projecting 138 other countries will grow faster this year than will Canada, including Australia, New Zealand, Norway, Sweden, and our two NAFTA partners, Mexico and the United States. And according to the International Monetary Fund (IMF), among G-7 countries, both the US and the UK will out-grow Canada in 2014.
So, despite all Mr. Harper's boasting, Canada is not leading the pack. Month-by-month, our trade balance is mostly in deficit. Consumer demand is weak, over-burdened by record levels of household debt. Businesses lack sufficient confidence to invest significantly in new expansions, training or technology.
Mr. Harper argues that the best thing he can do - indeed, the only thing he should do - is to keep cutting the Government of Canada to make it as small and irrelevant as possible. But with all due respect, he's wrong. You cannot hack-and-slash your way to economic growth. Grinding austerity, driven by ideology, is no guarantee of prosperity.
Yes, Canada needs strong, disciplined management. You have to be prudent. You can't afford waste - like half-a-billion-dollars squandered on self-serving, tax-paid government advertising. But you also need smart investments in the underpinnings of future growth.
Here are a few suggestions:
1. An immediate reduction in Employment Insurance payroll taxes which the Harper government has hiked to entirely excessive levels, raking in more than $5-billion over and above what's required to cover benefits.
2. For start-up enterprises and those with limited cash-flows, a new Refundable Accelerated Capital Cost Allowance to trigger timely investments in growth and innovation.
3.Make family Tax Credits for such things as enrolling kids in sports and arts programs equally available to lower-income families, and not just higher-income earners only.
4.Accelerate federal investments in municipal infrastructure projects (instead of cutting-back by 87 per cent) because this type of federal spending is the most cost-effective way to foster more jobs and growth, while converting the temporary advantage of low interest rates into durable, long-term capital assets.
5. Consistent and increasing federal support for science, research and innovation, including partnerships with the private sector to advance applied science and strong support for curiosity-based, pure science.
6. Better access to all forms of post-secondary education, including universities, colleges, technical schools, apprenticeships, on-the-job training, etc. Higher learning and skills are the key to successful living, and also key to a more prosperous, competitive, productive and growing economy.
Taken together, ideas like these will do far more than Mr. Harper's austerity to build a more prosperous middle-class and more securely balanced budgets.
Ralph Goodale, MP, Wascana, SK.
