Economy

Flatten the myth: Don’t fear government debt after COVID-19

May 11, 2020
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Myth: Government debt rising from the COVID-19 crisis is a big problem. Reality check: Large-scale public spending to support people and invest in long-term public goods is prudent not only on a human level, but also in economic terms. The size of government debt compared to our economy (our debt-to-GDP ratio) will rise substantially through… View Article

Comparing provincial economic responses to COVID-19

Apr 23, 2020
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The COVID-19 pandemic has highlighted the vital importance of collective responses via governments at all levels. The Canadian context of federalism, with a division of powers between federal and provincial/territorial governments, also highlights key differences in approaches to the pandemic. At its best, federalism is an advantageous arrangement, with the federal government addressing national issues,… View Article

Time to extend financial supports to local governments

Apr 15, 2020
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Local governments and regional authorities like TransLink have been missing from federal and provincial economic responses to COVID-19. Local governments are facing collapsing revenues, and unlike federal and provincial governments, they are not allowed to run deficits to cover their operating costs. As a result they are already staring into the abyss of painful austerity… View Article

Food insecurity and hunger during COVID-19

Apr 7, 2020
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The COVID-19 pandemic has exposed holes in our social safety net and significant inequality across BC households. Much of the recent focus has been on workers facing unemployment and renters unable to pay for their housing, with new federal and provincial supports enacted to try to address these needs. In this post I want to… View Article

Taking stock of COVID-19 economic policy measures in BC

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A multitude of measures have been tabled by the provincial and federal governments to prop up workers and an economy reeling from mandated closures of businesses brought about by physical distancing measures. Spring 2020 will be a period economic historians will be writing about for decades to come. Most economists were encouraging significant fiscal and… View Article

Concerns about federal wage subsidy program remain as details emerge

Apr 2, 2020
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The federal government announced new details yesterday regarding the Canadian Emergency Wage Subsidy (CEWS) that will flow to employers facing significant revenue declines amid the COVID-19 crisis. CEWS applies to businesses, non-profits and charities of all sizes (including large, highly-profitable corporations) if they are facing a decline in revenue of at least 30 per cent… View Article