Commentary

The Challenge of Designing Income Support Programs for the Self-Employed

The Canada Recovery Benefit may become an important source of support for self-employed individuals during the COVID-19 pandemic, particularly among those without employees. One important obstacle to the policy’s success is that the self-employed are a heterogeneous group that is not easily characterized, with workflows that do not fit neatly…
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Boos for CEWS

Federal emergency wage subsidies are poorly targeted, resulting in a fiscal cost of $25,000 or more for each person-month of employment saved through the program so far. Recent reforms attempt to target subsidies better to reduce fiscal costs, but the new approach creates disincentives for business growth that put the…
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Canada Needs a New Fiscal Anchor. (Québec Has One to Offer.)

The Federal government is in need of a new fiscal anchor. If there is one thing the current crisis has revealed on the fiscal policy front, it is that the debt-to-GDP ratio alone cannot adequately play that role. As a result, additional fiscal rules that allow potentially large deficits during…
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Federal debt from 1867 … and after the pandemic

The federal debt is rising fast and is likely to reach at least 63 percent of GDP by 2025, a level not seen since the fiscal crisis of the 1990s. But the current low level of interest rates (if continued in the future) mean that the debt-to-GDP ratio is sustainable…
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Finances of the Nation Research Roundup – July 30

This instalment of the Finances of the Nation Research Roundup Series covers the Bank of Canada Monetary Policy Report, profit shifting by multinational enterprises, a number of Canadian think tank articles relevant during the pandemic, Newfoundland and Labrador’s fiscal update and much more.
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Wealth Inequality: A Long-Term View

The distribution of wealth in Canada is a hot topic, yet longer term trends are not frequently discussed. Piecing together many studies shows that the wealth share of the top one percent, stable over most the post-war era, may again be increasing. A broader view however shows there have been…
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