Government Spending

— Dec 5, 2019
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What’s Changed, By How Much, and What Remains to be Done: An Analysis of Alberta’s Budget

What’s Changed, By How Much, and What Remains to be Done: An Analysis of Alberta’s Budget finds that the Alberta government’s plan to eliminate the provincial deficit by reducing program spending by 1.6 per cent over the next four years is less aggressive—both by timeline and by the amount of spending reductions—than previous successful deficit-reduction plans by other governments across Canada, including in Alberta, Saskatchewan and at the federal level.

— Oct 31, 2019
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Why Is Equalization Still Growing?

Why Is Equalization Still Growing? finds that due to a specific rule (created in 2009) within Canada’s equalization program, which transfers federal tax dollars to lower-income provinces, total equalization payments to “have-not” provinces must grow every year, even if the gap between richer and poorer provinces shrinks. As a result, total program costs over the past two years have been $2.1 billion (or 5.7 per cent) larger than they would have been without the rule.

— Oct 10, 2019
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The Costs of Slow Economic Growth: Collected Essays

The Costs of Slow Economic Growth finds that from 2011 to 2018, Canada experienced an annual economic growth rate of 2.17 per cent. But that an annual rate of 3 per cent would spur an approximately $45,000 increase in Canada’s per-person income after 20 years.

— Sep 19, 2019
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Fiscal Policy and Recessions: A Primer on Automatic Stabilizers

Fiscal Policy and Recessions: A Primer on Automatic Stabilizers finds that in 2009, during the last recession, spending on unemployment benefits by the federal employment insurance (EI) program increased automatically by nearly $5 billion—or 43.4 per cent—as unemployment increased.

— Aug 30, 2019
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Spending Beyond Our Means:  Addressing the Root Cause of Alberta’s Deficit

Spending Beyond Our Means: Addressing the Root Cause of Alberta’s Deficit finds that the Alberta government spends 18.5 per cent more (per person) than the British Columbia government, and more than every large province in Canada including Quebec and Ontario.

— Jul 3, 2019
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Private Sector Capital Expenditures in Canada: An Industry-Level Analysis finds that business investment has recently declined in two-thirds of the non-government sectors that make up the Canadian economy, representing the most severe drop in investment in at least 30 years, a period that includes several recessions. Crucially, business investment is key to raising living standards and increasing economic prosperity for Canadians.

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