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B A C AFB2018 Alternative Federal Budget 2018 ISBN 978-1-77125-387-1 This report is available free of charge at www. policyalternatives.ca. Printed copies may be or- dered through the CCPA National Office for $10. PleaSe make a doNatIoN... Help us to continue to offer our publications free online. With your support we can continue to produce high quality research — and make sure it gets into the hands of citizens, journalists, policy makers and progres- sive organizations. Visit www.policyalternatives.ca or call 613-563-1341 for more information. The CCPA is an independent policy research organ- ization. This report has been subjected to peer re- view and meets the research standards of the Centre. The opinions and recommendations in this report, and any errors, are those of the authors, and do not necessarily reflect the views of the funders of this report. 5 Introduction 10 Macroeconomic Policy 23 Fair and Progressive Taxation 30 Agriculture 35 Arts and Culture 40 Child Care 45 Defence 50 Employment Insurance 55 Environment and Climate Change 60 First Nations 64 Gender Equality 71 Health Care 77 Housing and Neighbourhoods 82 Immigration 91 Industrial Strategy and a Just Transition 95 Infrastructure and Cities 100 International Development 106 International Trade and Investment 112 Post-Secondary Education 118 Poverty 125 Public Services 131 Seniors and Retirement Security 137 Sustainable Development Goals (SDGs) 142 Water 148 Youth 153 Acknowledgements Introduction For more than two decades, the Alternative Much has changed in the past decade. Federal Budget has provided a blueprint for During the 2008-09 financial crisis, even sustainable and equitable growth in Canada. pro-austerity governments were convinced When successive federal governments of the power of debt-backed government advocated austerity, we demanded new stimulus. More recently, in the 2015 federal stimulative investment in social and eco- election, political parties won public sup- nomic infrastructure. When they said the port by promising to spend progressively private sector should deliver public goods, on new social services and poverty-fighting we recognized that some priorities — like programs — an approach now applauded by expanded health care, housing and child the International Monetary Fund. care — could only be properly addressed by In the international arena, the United the government. Nations has set more ambitious goals for Where governments of all stripes have human development. These goals seek to spent billions subsidizing fossil fuel pro- end poverty, not just alleviate it, and to duction and export, the Alternative Budget build a more equitable and sustainable fu- pointed out it would be far more product- ture for everyone. ive, and more beneficial in the long term, Because they apply equally to all coun- to fund a just transition to a zero-carbon fu- tries, rich and poor, the Sustainable Develop- ture.1 Where the mainstream media obsessed ment Goals represent an important shift from about the deficit, we urged governments to paternalism in development policy to the ac- focus on the more important debt-to-GDP knowledgment of shared responsibilities for ratio and the multiplier effect that public fighting poverty and climate change. This investment would have on the economy. year the Alternative Budget demonstrates Getting There: Alternative Federal Budget 2018 5 how its policies will move Canada toward market is a timely reminder that we need fulfilling its commitment to these goals. a better approach to trade. Canada’s tem- Our Alternative Budget’s priorities are plate free trade deals severely restrict what becoming political priorities, going main- governments can do to regulate in the pub- stream. And the positive impacts on people’s lic interest and to direct investment toward lives, from new spending and social pro- more productive ventures. grams introduced over the past two years, Canada has become an exporter of raw are starting to be measurable. resources and importer of higher-value-add- But what to do in times of apparent sta- ed products. The Alternative Budget moves bility and even better-than-average growth? Canada toward a trade and investment strat- What should a federal government prioritize egy that promotes sustainable development, in the winter of 2018, with employment lev- public services and the health of Canada’s els and GDP projections in their best shape democracy. in a decade? Investments in public services, on the The Alternative Federal Budget has a other hand, create jobs in a sector that sustainable plan for the future. We demon- doesn’t rise and fall with the fortunes of strate how we can face the challenges that the United States. They also provide im- lurk in the shadows of rising GDP numbers, portant respite to families struggling to look and that, with the right policies in place, after children and aging parents, and care we can build a green economy that brings for those living with physical and mental greater equality to Canadians. health issues. The Alternative Budget invests in bet- Economic growth does nothing to prevent ter public services, including increasing the slow unfolding of catastrophic climate health transfers to provinces and imple- change, particularly if our economy con- menting a pharmacare program, so that no tinues to rely heavily on high-emission re- family has to choose between medication source industries. It is precisely in this per- and food. It provides universal child care iod of relatively low unemployment that we for the millions of families with working should begin, in earnest, the just transition parents who face long wait lists and un- to a green jobs future. affordable fees. This year’s Alternative Budget accel- Economic growth continues to dispro- erates the national carbon price increase portionately benefit those at the top end of to reach $50 per tonne by 2020, moderat- the income spectrum, leading to extreme ing the impact on workers through rebates levels of inequality in Canada. Between 2015 while investing the rest in training, appren- and 2016, the average income earner saw a ticeships and green infrastructure, includ- raise of a couple hundred dollars, while the ing high-speed rail. top 100 highest-paid CEOs saw a pay bump The current uncertainty around Can- of $1 million. ada’s trade relations with its biggest export 6 Canadian Centre for Policy Alternatives Meanwhile, jobs in home care or child in our public research institutions and our care rarely pay enough to move full-time creative class, providing opportunities for workers in those occupations out of poverty. Canada’s brightest thinkers and creators to Alternative Budget investments will make work without the restrictions generated by sure a full-time paycheque in the care econ- market driven interests. omy pays for rent and groceries. Together these investments would cre- Young workers face record-high student ate nearly a million new jobs by 2020, turn- debt loads and a job market that delivers part- ing today’s positive GDP and employment time and precarious work. The Alternative levels into a foundation for ongoing sus- Budget would eliminate tuition fees, which tainable growth. will lead to a better educated and more pre- pared workforce for the future, and allow Canada draws great strength from its divers- new workers to enter the economy without ity — of peoples, cultures, identities and re- an unmanageable debt load. gions. Just as our diverse communities make The Alternative Budget would also mod- unique contributions to society and the ernize our employment insurance program economy, they also face distinct challenges. to reflect the increasingly precarious nature Farmers struggle with uncertain mar- of work — ensuring that workers in part-time kets and high debt loads. The Alternative or contract work are supported by our so- Budget would create a guaranteed basic in- cial safety net. come for new farmers, ensuring sustainable More sustainable and accessible infra- food production for the future and support structure, including better public transit for rural communities. and more affordable housing, will help Can- Canada’s First Nations, Inuit and Métis adians live better lives. However, transfer- communities are rebuilding in the wake of ring money to the private sector to build that colonialism, residential schools and the en- infrastructure at interest rates of 7–9%, when demic underfunding of education and social the government could deliver the same re- services. But Indigenous peoples continue newal at interest rates of 0.8%, isn’t innov- to face discrimination in pay and employ- ative. It is foolish and wasteful. ment. The Alternative Budget would invest The Alternative Budget would rebuild $9 billion in 2018-19 to make up for the loss our cities and roads through public works, in purchasing power created by decades of at the lowest possible financing rate, ensur- underfunding. ing that Canadians don’t pay a premium on Women make up 47% of the labour force. infrastructure investments. In addition to this paid work, women per- Innovation is an important component form an extra 10 hours a week of unpaid care of growth and a source of new solutions work. The Alternative Budget would invest in to existing problems. However, the pri- affordable child care, which has been dem- vate sector is not the only source of innov- onstrated in country after country to boost ation. The Alternative Budget would invest female labour force participation. It would Getting There: Alternative Federal Budget 2018 7 also institute pay equity legislation immedi- would be lifted out of poverty by the Al- ately — so that women’s labour is no long- ternative Budget. er discounted as a result of discrimination. Older Canadians now experience increas- Not only are these investments important ing economic insecurity at the end of their for creating a Canada that can weather this working lives.

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