In theory, debt generated by asset recycling is paid back through private sector partners finding efficiencies or increased government revenue driven economic growth. While this may work in the private sector, it does not work for governments. In practice, asset recycling is similar to other privatization schemes – such as public-private partnerships – that cost governments and citizens more money than traditional public debt-financed investment.
The idea being promoted by the Liberal government through its “Basic Income Guarantee” is that we should be moving towards a system where the government redistributes wealth by giving individuals money directly. As wealth redistribution goes, this is an inherently right-wing approach. It depends on the private sector to provide services that those on the Guarantee can afford, it does nothing to improve the employment prospects for those on the Guarantee, and in the end likely only increases inequality. Instead, the government should be investing this money in public services that are provided at no cost to everyone, an initiative that will create more jobs in the process.
This week, a new study on Employment Insurance (EI) was released by the liberal Institute for Research on Public Policy (IRPP). It details how the Conservatives broke the system, and provides recommendations for massive changes to the EI system, including a focus on eliminating regional disparities.
While the majority of Canadians have access to Internet services, costs for these services are substantially higher than most other developed countries and high-speed Internet access is still not universally accessible.
The Conservative government's omnibus budget (Bill C-38) changed much of the way the Employment System will run. Overall, the changes will alter labour market pressures in favour of employers offering low wage jobs. As a result of this bill, it has become even harder to qualify for Employment Insurance. Further, the process of appealing the decision has been changed to eliminate worker and employer seats on the appeals panels. Even before the budget changes, fewer than 40 per cent of unemployed workers qualified for EI even though they are unemployed through no fault of their own.