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The Key Challenge for Canadian Public Policy: Generating Inclusive and Sustainable Economic Growth

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  • Don Drummond
  • Evan Capeluck
  • Matthew Calver

Abstract

Recent economic and fiscal projections produced by the Centre for the Study of Living Standards suggest that revenue growth over the next 23 years in most provinces and territories will be insufficient to maintain recent i ncreases in health expenditures while holding other spending constant on a real per capita basis. Motivated by these fiscal challenge s , we present a series of policy recommendations for Canada’s governments at all levels to foster greater economic growth. Higher GDP not only offers a means to raise government revenues, it also directly raises the well - being of Canadians. We consider options to boost economic growth in two broad ways. First, by boosting Canada’s productivity performance through policies pro moting private and public investment, education, technological innovation and diffusion, and trade. Second, by tapping into Canada’s underutilized labour supply, particularly by assisting women, older workers, persons with disabilities , Aboriginal people, and immigrants in successfully participating in the workforce. The recommendations in this report are guided by the Organization of Economic Co - operation and Development’ s green growth and inclusive growth frameworks and by the idea that government should take a more active role in supporting the economic activities of individuals and businesses.

Suggested Citation

  • Don Drummond & Evan Capeluck & Matthew Calver, 2015. "The Key Challenge for Canadian Public Policy: Generating Inclusive and Sustainable Economic Growth," CSLS Research Reports 2015-11, Centre for the Study of Living Standards.
  • Handle: RePEc:sls:resrep:1511
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    More about this item

    Keywords

    Inclusive Growth; Green Growth; Fiscal Projections; Public Policy; Productivity Growth; Canada; Labour Supply; Provinces; Territories; Research and Development; Investment; Human Capital; Education; Internal Trade; International Trade; Immigration; Emigration; Old Age; Ageing; Aboriginal Peoples; Disabilities; Labour Force Participation; Inequality;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H68 - Public Economics - - National Budget, Deficit, and Debt - - - Forecasts of Budgets, Deficits, and Debt
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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