Budget an opportunity to build economy of care

While there have been some signs that GDP is recovering, it is clear that we will be feeling the effects of this recession for a long time. Last week, the Organisation for Economic Cooperation and Development predicted that unemployment will reach 10% in Canada in 2010, and that it will take a long time to decline from that point.

The high number of unemployed Canadians, their struggle to support their families, and the mounting toll of stress, worry and fear for the future highlight the human face of this economic crisis. They underline the consequences of not putting people at the heart of economic planning.

Every year, the House of Commons Standing Committee on Finance asks Canadians what their priorities are for the federal budget. In a brief submitted to the committee and an appearance before the committee, CPJ emphasized the need to move towards an economy of care that puts people at the heart of economic planning.

Budget decisions are unquestionably moral decisions: they reveal our values, affect how resources are allocated, and shape our common future as Canadians.

For this reason, it is important to reflect on core values when thinking about how to shape the budget. As a Christian organization, CPJ’s work is rooted in the call to do justice and to love our neighbours. We believe that a faithful response to God’s call requires respect for the dignity of all human life and the well-being of the earth. These values should be reflected in our collective decisions and in our public policies and practices.

Because of this, we believe that our economy should be an economy of care. An economy of care would recognize that the goal of all economic activity is meeting the needs of people and caring for the earth. Social and environmental concerns shouldn’t just be an add-on; they should determine our economic goals, as well as our method of achieving them.

Even as we experience this painful moment of crisis, we have the opportunity to reflect on our present path and to change direction, aiming for true prosperity that includes social and environmental well-being.

There are a number of principles which an economy of care should be based on. They include dignity for all, social security for all, fairness and equality and genuine economic opportunity. While all sectors of society, including businesses and labour unions, have an obligation to pursue these principles, governments have a leadership role to play.

All Canadians should be able to live in dignity. Currently, 1 in 10 Canadians live in poverty, unable to meet all of their basic needs or to provide for their families. Public justice and an economy of care require that we create public practices and policies to ensure that all Canadians have the means to exercise a sustainable livelihood that provides a livable income. This includes social security for all Canadians, even when we cannot secure all we need through paid work.

CPJ recommends that Budget 2010 adopt a federal poverty elimination strategy to provide a pan-Canadian blueprint for reducing and eventually eliminating poverty.

Another fundamental Canadian value is fairness. Although it can be hard to define, most of us intuitively tie it to well-being. We don’t believe that inequality is fair. While everyone doesn’t have to be the same or have the same things, we nonetheless believe that it is only fair if people have equal opportunities. Poverty and economic insecurity erode both equality and opportunity. Far too often, programs that are designed to help people in need perpetuate this lack of choice and opportunity.

It’s time for a new approach to economic insecurity. We believe that Canada should implement a Guaranteed Livable Income that ensures every citizen has access to the basic necessities of life without stigma, while respecting dignity and enabling participation and inclusion in community.

It will take time to create and design the appropriate model for Canada. But Budget 2010 can take steps towards a GLI by extending income security to working age adults – the one demographic that currently has no universal income security program.

Through public programs and services, the federal government contributes to social security for all Canadians. The government can reduce poverty and inequality, promote equal opportunity, and support the health, well-being and education of all Canadians. This requires sufficient federal revenue to invest in social security.

Many economists have criticized the value of tax cuts as stimulus. Economic modeling by Informetrica has shown that the same amount of money invested in social infrastructure as opposed to tax cuts more than triples the number of jobs created. Tax cuts also permanently cost the government revenue, while investments in social infrastructure pay off for years to come.

We recommend that the Budget roll back the recent corporate tax cuts and GST cuts, and invest the revenue in social infrastructure programs like childcare and EI.

By promoting dignity for all Canadians, strengthening social security, and supporting fairness and equal opportunity, Budget 2010 can help Canada to take steps towards an economy of care for all Canadians.