The UK in 2011 is not Canada in 1996
This paper was presented to a meeting on ‘Public Spending Cuts: Learning Lessons from Canada’ sponsored by the Barrow Cadbury Fund in London.
On the first anniversary of its election win, the UK coalition government shows no sign of reconsidering its extreme fiscal consolidation. Cameron and Clegg's resolve is reportedly at least partly based on the example of Canada's elimination of its deficit in the mid-1990s. But if the reasons for Canada's deficit-cutting success were properly understood, the coalition would instead today be pedalling briskly backwards rather than doggedly pressing on.
The secret of Canada's achievement in the mid-1990s is to be found neither in the steely resolve of our politicians nor in the mechanics of our cutting exercise: Deficit reduction worked in Canada because of the economic conditions prevailing at the time, including monetary policy, employment growth and rising exports. In Canada, unlike the UK, economic growth was a precondition of fiscal consolidation, not a hoped-for outcome.
ISBN - 1-55382-523-3
View full document in PDF format.
Copies of our publications are also available, upon request, in Microsoft Word format. Please contact the Caledon Institute for information.
HAVE YOU SEEN
-The Canada Child Benefit Needs to be Fully Indexed to Inflation
-The Social-Policy-Is-Back Budget
-Designing a housing allowance program
-Some Implications of the Liberal Government’s Tax Changes
-Farewell, Wizard of Oz
-Ottawa Must Get Serious about Poverty Reduction
-Ensuring Real Accountability on First Nation Reserves
-Welfare in Canada, 2014
-We Are All Disabled
-Child Benefits in Canada: Politics Versus Policy
-Tax credits: great politics, bad policy
-Disability Supports: Missing on the Policy Radar
-The 2015 Deficit-of-Ideas Budget
-Is Canada (Still) a Fiscal Union?: Michael Mendelson
-Architecture of Federal Income Security in Canada: Ken Battle
-Social Policy Challenges for Canada: Sherri Torjman
-In Canada, the new solitudes are East vs. West
-Picture - Sherri Torjman
-Canada’s English-French divide giving way to East-West economic split, scholar says
-Video - Data Rescue
-Video - Sherri Torjman: Five Good Ideas about Policy
-Video - Sherri Torjman: Canada@150 address
-Video - Sherri Torjman: Shared Space & Community Recreation
In Canada, the new solitudes are East vs. West
Michael Mendelson and Keith Neuman, The Globe and Mail, Tuesday, March 5, 2013