Opinion: Canadians face 40 years of stagnant incomes – government’s economic strategy is failing

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Opinion: Canadians face 40 years of stagnant incomes – government’s economic strategy is failing
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The only way to feel confident about future Canadian living standards is to avoid looking at the data

David Williams, DPhil, is vice-president of policy at the Business Council of British Columbia. Jock Finlayson is the council’s senior policy adviser.

Canada is one of the few advanced countries where real incomes are lower than before the pandemic. Real GDP per person is $55,170, compared with $56,379 in 2019, meaning theis generating $1,200 less income per person, or $2,830 less income per household, than it was four years ago. Several of the government’s core policy beliefs are misguided. The first is that freewheeling government spending, untethered by the defined limits of a credible fiscal anchor, is not “consumption” but rather “investment” that raises real incomes. The data say otherwise.

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