Economic Policy
Summary
Economic policies should create a self-sufficient, sustainable economic landscape that provides Canadians competitive compensation and stable job opportunities. The Canadian economy has been struggling to be productive, but with proper governance and long-term vision, it can be stimulated to meet the needs of tomorrow. The government needs to support key industries to benefit from these economic opportunities.
To address Canada’s poor productivity, the Moderate Party of Canada will increase the velocity of money, reduce the cost of living, introduce national projects and programs, discourage oligopolistic practices and excessive wealth accumulation, and foster a competitive environment where high-quality, sustainable industries can thrive, pivoting Canada towards a better economy.
How the Moderate Party of Canada Will Take Action:
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The Situation
Canada’s economy is facing significant challenges, with productivity growth falling behind other nations. [1] [2] The velocity of money is low and wages are non-competitive. Affordability issues persist and Canadians who cannot secure traditional employment are forced to rely on the gig economy, freelance and side-employment, which contributes to low economic productivity. While Canadian household income is spent on essential living expenses, food insecurity and homelessness are on the rise. [3] [4] One in four Canadians cannot afford unexpected expenses exceeding $500. [5]
Wealth inequality is growing as wealth becomes increasingly concentrated among a small group of companies and individuals. In addition, a large portion of Canadian wealth is tied up in real estate, a non-productive asset.
The Canadian economy and citizens are suffering as most of their capital is funnelled into specific industries and companies rather than invested in innovation, opportunity, and overall growth.
The Solution
The Canadian economy must shift towards a more competitive model that produces high-quality goods and services. The shift must introduce economic and regulatory frameworks designed to increase the velocity of money, discourage the formation of oligopolies, and reduce the cost of living.
Detailed Policy
Introduce National Projects and Programs
National projects and programs are government-driven initiatives that aim to bring Canadians together through shared goals, national pride, and achievement. These initiatives create significant job opportunities while also promoting innovation and economic growth. To read our proposed national projects and programs, see here.
Introduce Crown Corporations to Compete with Private Industry
When the Canadian market is dominated by a few large corporations, there is limited competition and limited options for consumers which makes boycotting difficult. This imbalance shifts the Canadian economy towards a producer’s market whereby producers have greater control over the market and do not feel pressured to deliver high-quality goods and services.
The Moderate Party of Canada believes antitrust laws must be properly implemented to address unfair market practices protecting both consumers and competitors. To further protect consumers, a system is needed to define the minimum acceptable standards. The Moderate Party of Canada will establish state-owned enterprises called Crown Corporations in specific markets. These Crown Corporations operate similarly to private companies but without political appointments. They are required to maintain a minimum acceptable level of quality and profits generated will be reinvested into Crown Corporations, employees of the Crown Corporations, and the country. When private businesses deliver unsatisfactory goods and services, alternative options are accessible to Canadians through these Crown Corporations.
Reduce Immigration
Understanding the True Cost of Immigration
From 2022 and 2023, 98% of Canada’s population was attributed to immigration. [6]
A 2006 Statistics Canada study [7] on markets in North America found that for every 10% population increase due to immigration, real wages decreased by 4-7%. The decrease or stagnation of wages occurs because the economy shifts to an employer’s market, resulting in diminished employee bargaining power. In addition, newly landed immigrants experience lower socioeconomic mobility [8], which may increase crime or result in unfavourable behaviour.
For Canadians to have higher wages, the Moderate Party of Canada will reduce immigration.
To read our immigration policy, see here.
Remove Provincial Trade Barriers
Allowing Business To Flow within Canada
Tariffs are taxes imposed on a foreign good or service to protect a local industry or economy. When a foreign product or market is heavily subsidized by the government, tariffs shield Canadian industries from unfair advantages created by foreign government subsidy. Generally, tariffs are a last resort as they are rarely beneficial.
Tariffs are also used by Canadian provinces to protect provincial industries from each other. These inter-provincial tariffs, known as provincial trade barriers, significantly restrict business opportunities across Canada and reduce wages by about 6%.
The Moderate Party of Canada will abolish provincial trade barriers to strengthen the economy and improve wages for all Canadians. [9]
Reduce the Impact of Inflation with a Required Yearly Wage Increase
Every year inflation increases the costs of goods and services. While corporations raise prices to keep up with inflation, wages remain the same and are not adjusted to reflect the impact of inflation.
To combat this discrepancy, the Moderate Party of Canada will mandate a yearly wage increase to match the annual inflation rate.
Reduce the Cost of Living
Where Economics Meet Human Needs
Make Housing Affordable
As housing costs increase, many Canadians experience a deterioration in quality of life, with the most vulnerable ending up on the streets. Quality of life is crucial for both the economy and the country as it directly affects productivity. If housing costs decrease, discretionary income increases for Canadians, enabling them to invest in the Canadian economy. Therefore, the Moderate Party of Canada is committed to ensuring affordable housing for all Canadians. To read our housing policy, see here.
Nationalize Canadian Telecommunication Infrastructure: Make Internet and Phone Usage Affordable
Canada has some of the highest telecommunications rates in the world. [10] The telecommunications system in Canada relies on spectrum management where companies are required to lease frequencies from the government. Additionally, companies must either invest in building their own infrastructure, which can be prohibitively expensive, or lease infrastructure from existing providers, placing them at a competitive disadvantage. Also, foreign-funded companies are restricted from entering the telecom market, further limiting competition.
As a result of these challenges, competition is constrained, allowing telecom companies to charge exorbitant service rates. To lower telecom rates, the Moderate Party of Canada proposes to nationalize the telecom infrastructure and enable corporations to compete based on service quality. The party aims to foster collaboration among the federal government, academia, and private industry to create a modern and efficient access network framework while setting minimum service standards.
Local governments will conduct feasibility studies, plan for underground telecom infrastructure, and issue local city bonds for funding. The Moderate Party will also implement strict certification requirements for private corporations, which local governments hire to build access networks. With the nationalization of telecom infrastructure, foreign ownership will be prohibited, allowing global corporations to compete solely on service quality.
By allowing the telecommunications industry to operate under the principles of a regulated free market, the cost to consumers would be significantly reduced.
Introduce Crown Corporation Grocery Stores: The Right to Affordable Nutrition
The Moderate Party of Canada will establish Federal Crown Corporation grocery stores that adhere to strict regulations and limited profitability to ensure that Canadians have access to affordable food.
Require Companies to Offer a Livable Wage
The Moderate Party of Canada believes that full-time work should be compensated with a livable wage. To support this vision, the Moderate Party of Canada will redefine the minimum wage to that of a livable standard. This standard would enable individuals working a 32-hour, four-day work week to afford an average home while also financially supporting a non-working partner and two children.
Remove Federal Taxes On 2nd Hand Items
To combat climate change, reduce consumption, and enhance affordability, the Moderate Party of Canada advocates for the promotion of a circular economy. This system focuses on designing products that are durable and reusable. The party aims to shift the Canadian economy and mindset toward high-quality, sustainable, and long-lasting goods. As an initial step, the Moderate Party of Canada plans to eliminate the federal sales tax on second-hand and refurbished items to help decrease waste and improve overall affordability.
Pivot Canada Towards a Better Economy
Approximately 9% of Canada’s workforce relies on the gig economy as a primary source of income, with over 10% of Canada’s GDP connected to real estate. [11]
The gig economy is highly volatile, driven by luxury demands, and does not contribute to the production of tangible value; and the reliance on real estate has negatively affected housing affordability. To learn more about our approach in addressing housing affordability, see our Housing policy here.
In addition, Canada’s economy is facing significant challenges, with productivity growth falling behind other nations. [12] [13]
To address these concerns, the Moderate Party of Canada aims to shift the economy towards industries that produce exportable, high-quality, and durable goods. As a larger portion of Canada’s GDP transitions to productive industries, we plan to reduce the commodification of residential real estate, leading to a more stable economic environment. Additionally, the Moderate Party of Canada is open to the idea of nationalizing the country’s natural resources and depositing the resulting revenue into a national wealth fund along with implementing several national projects to stimulate economic growth. To read our National Projects and Programs, see here.