The project approaches policy development using a framework based on cooperative exchange models, a value/pricing mechanism, competition, decentralized transactions, and secure and enforceable property rights.
Canada too often prioritizes regulation, taxes, and government intervention to solve economic problems. At best these are normally cost-inefficient; but often they lead to poor outcomes and significant unintended consequences.
Objective
The Sound Economic Policy Project aims to create public policies that promote prosperity for all Canadians rooted in free-market principles.
Over the past twenty years, Canada’s traditional political, environmental, social, and economic realities have been upended. As a nation, Canada must re-examine its priorities and develop economic policies allowing for innovation, hard work, and talent to flourish and be rewarded to compete in an increasingly competitive world. The Sound Economic Policy Project will focus around three general themes:
Productivity
Low productivity is a significant challenge for Canada, particularly when compared to the United States. According to the OECD, Canada is forecasted to have the lowest per capita GDP growth among all 37 OECD member nations over the next 40 years. Productivity growth is critical for improving living standards, increasing access to better public services, and promoting overall social stability. Factors such as capital investment, taxation, education, and demographics play a vital role in determining productivity levels. The project believes that public policy towards business and human capital will be crucial in addressing Canada’s productivity issues and promoting long-term economic growth.
Sustainability
Climate change economics will have a large impact on Canada. We are the fourth largest oil producer and almost two million jobs rely on our natural resource sector. Evolving regulatory and environmental policy has the potential to deliver either severe blows to our economy (such as stranded petroleum and oil sands) or economic growth based on mining and processing critical minerals the world needs to generate green energy. There are sharp policy differences on how we should proceed with developing our natural resource sector.
Fiscal
Canada faces significant fiscal challenges due to its high levels of indebtedness. Household, corporate, and government debt as a percentage of GDP are high compared to other G7 nations. Managing these fiscal challenges in the face of low productivity growth and increased spending pressures will be a pressing issue for our nation. It is imperative to find effective solutions to address these challenges to ensure long-term economic stability and growth for Canada.