Trying to fix two problems at the same time is not an easy task, but it is the one the federal finance minister was assigned in delivering a budget yesterday.
Problem one is affordability. Average people having trouble paying the bills is politically explosive – just ask Donald Trump – so it is not something to be put on the back burner. So, there is money earmarked to help us make ends meet.
But the country is also facing a longer-term structural problem that is a hangover from the Trudeau years – we have not been investing. That’s problem number two. Productivity has fallen dramatically, effectively reducing our standard of living, the value of our currency and real incomes escalating affordability problem.
Economists call it price stability, the technical term for inflation. In other words, our currency holding its value so we can afford to buy stuff.
That brings us to investment, the other key theme of this budget. Tools to encourage investment that will strengthen the economy in the long term, generating higher-paying jobs that will, over time, ease the affordability issue.
— For more than 50 years, Paul Martin has specialized in coverage of the business and political scenes. His career has spanned radio, television and print and electronic media.
