Remembering the social fundamentals

Earlier this week, CPJ published The Economic Statement that Wasn’t, in which we emphasized the need for federal government action that not only addresses the pressures of the global economic downturn, but also meets the needs of the poorest Canadians.

The big question this week is clearly about whether Harper’s Conservatives will stay in power, or if the Liberal-NDP coalition under Dion will be given the opportunity to form a new government. When all is said and done, however, it is essential that whoever is leading the government consider what the Caledon Institute refers to as the “social fundamentals.”

In their commentary, The Forgotten Fundamentals, released this week, Ken Battle, Sherri Torjman, and Michael Mendelson state that:

“Missing in this debate is another set of fundamentals – social fundamentals. The lessons of history have taught us that, in tough economic times, social programs can act as fundamental supports for both the economy and society.” They go on to say that, “Social programs that pay income benefits … act as shock absorbers when times are tough for individual households. [And,] they act as fiscal stimulus when times are tough for the economy.”

The commentary stresses the importance strengthening the Canada Child Tax Credit, increasing the refundable GST credit, doubling the new Working Income Tax Benefit, and restoring Employment Insurance. All of these measures would help put money in the pockets of those Canadians most vulnerable to the negative impacts of the current economic situation.

For the full commentary, go to the Caledon Institute of Social Policy.