Objective
The Sound Economic Policy Project aims to create public policies that promote prosperity for all Canadians rooted in free-market principles.
Project Rationale
With changing political, environmental, social, and economic realities over the past two decades, Canada is confronted with many complex policy challenges. From technological advancements to social disruptions, climate concerns, and shifting geopolitical trade flows, Canada must reassess its priorities and develop economic policies that foster innovation, hard work, and talent, so we can successfully compete on a global stage. The Sound Economic Policy Project will address policy challenges utilizing free-market principles – namely economic freedom, self-interest, competition, and private property. The project will focus on the following three general themes:
Productivity
Canada is challenged with low productivity growth. Improving the nation’s productivity levels is crucial, especially when compared to the United States. The OECD projects that Canada will experience the slowest per capita GDP growth among its 38 member nations over the next four decades. Enhancing productivity is vital for improving living standards, expanding access to public services, and promoting social stability. Factors like capital investment, taxation, education, and demographics significantly influence productivity. Prioritizing productivity policies is important, as it ultimately determines our nation’s prosperity and affordability of social services. The project will highlight public policies supporting businesses and fostering human capital, which is key to addressing productivity challenges and fostering long-term economic growth.
Sustainability
Canada’s economic landscape is closely connected to climate change economics. We are the fourth largest global oil producer, and our natural resource sector supports nearly two million jobs. Developing regulatory and environmental policies can either severely impact our economy, such as stranding petroleum and oil sands, or can contribute to economic growth through responsible mining and processing of critical minerals for green energy. Various policy perspectives exist on how to approach our natural resource sector’s development. Adopting pragmatic and cost-effective policies will help us meet climate goals while minimizing economic costs for our nation. However, poor decisions in this area can harm Canadians.
Fiscal Matters
Canada faces significant fiscal challenges due to high levels of debt. Household, corporate, and government debt as a percentage of GDP is high compared to other G7 nations. Managing these fiscal challenges amidst slow productivity growth and increasing spending pressures is a pressing issue. Finding solutions to address these challenges will be essential for long-term growth and economic stability.