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Innis Lecture: Canadian policies for broad‐based prosperity

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  • Daniel Trefler

Abstract

. Canadian policy makers operate in the fog of myth, a myth that has been repeated so often it is mistaken for truth. According to this myth there is only one path to prosperity, and if we are to successfully travel this path, first charted by Americans, then we must abandon our most disadvantaged. We must sacrifice our core Canadian values of community and caring on the altar of competitiveness. Yet the facts of the last three decades scream out against this myth. Over that time Canada's per capita GDP fell by almost 20% relative to the United States. And this sacrifice of prosperity did not make us a more caring society. Instead, it depleted our fiscal resources by a staggering $68 billion per year and left us without the wherewithal to take care of our most disadvantaged. In this paper I debunk the myth that there is a trade‐off between a prosperous society and a caring society. In place of the myth I offer up a cohesive picture of what ails Canada and how we can cure it. Les architectes de la politique au Canada opèrent dans le brouillard d'un mythe, un mythe qui a été tellement répété qu'on le prend souvent à tort pour une vérité. Selon ce mythe, il n'y a qu'une voie vers la prospérité, et si l'on veut voyager avec succès sur cette voie, cartographiée d'abord par les Américains, on doit abandonner nos plus désavantagés à leur sort. On doit sacrifier nos valeurs de base de communauté et de compassion sur l'autel de la compétitivité. Or les expériences des dernières décennies s'inscrivent en faux contre ce mythe. Au cours de cette période, le PIB per capita au Canada a chuté de 20% par rapport à celui des Etats‐Unis. Et ce sacrifice de prospérité n'a pas accru le niveau de compassion. Au contraire, nos ressources fiscales ont chuté de $68 milliards par année, et nous ont laissé moins capables de nous occuper des plus désavantagés. Dans ce texte, l'auteur s'attaque au mythe qu'il faut faire un choix entre une société de prospérité ou une société de compassion. Pour remplacer ce mythe, il met en place un diagnostic cohérent des maux qui affligent le Canada et des moyens pour les guérir.

Suggested Citation

  • Daniel Trefler, 2008. "Innis Lecture: Canadian policies for broad‐based prosperity," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 41(4), pages 1156-1184, November.
    • Handle: RePEc:wly:canjec:v:41:y:2008:i:4:p:1156-1184
    DOI: 10.1111/j.1540-5982.2008.00499.x
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