Principles - 1 Government Role

Government intervention key to Apple success

A Globe and Mail Business journalist points out that one of the biggest reasons for Apple's success is technology whose development was funded by the United States government. Apple products like the iPhone or iPad are dependent on publicly funded technology like the lithium battery or liquid crystal display.

Nobel prize winning economists see government spending cuts as holding back recovery

According to a recent Guardian article, several Nobel prize winning economists at the Lindau Nobel Laureate Meetings suggested that cuts, or threatened cuts, to public spending are harming the chances of an economic recovery.

Federal government knowingly using inaccurate labour market data

A federal government briefing note obtained through Access to Information law makes it clear that the federal government was aware of problems with the labour market data.

Crown corporation project encourages economic development

Newfoundland and Labrador crown corporation Nalcor Energy's mapping project is a small example of how some governments are questioning the assumption that all governments can do to encourage economic development is hand out tax breaks.

Temporary Foreign Worker Program relies on flawed data

Last week the Alberta Federation of Labour revealed that federal government decisions on whether or not to allow businesses to use the Temporary Foreign Workers Program are based on irreparably flawed data.

Mediocre innovation record blamed on lack of government involvement

In a recent article in the Toronto Star, internationally recognized expert on innovation, Mariana Mazzucato, blamed lack of direct government involvement for Canada's mediocre record when it comes to innovation.

She argues the approach taken by Canadian governments — cut corporate taxes, reduce regulation and sign trade deals that protect corporations and investors — has failed. Instead of investing more, corporations are hoarding cash.

High dollar hurts non-energy exports

A recent Bank of Canada discussion paper found that exports in half the categories surveyed would benefit from the decline in the value of the Canadian dollar. The paper also listed many of the sectors the Bank of Canada views as being key to Canada's economic recovery.

Post office closures harm rural economy

A recent survey by the Canadian Postmasters and Assistants Association (CPAA) found that post office closures in rural communities are bad for business.

When post offices close, rural business people and residents are having to travel an average of 13.1 km to get their mail. For businesses relying on mail service, or for those who are uncomfortable driving or who don't own a car, that distance is a significant barrier.

Trade deal with South Korea fails to consider whole economy

One of the arguments for a modern industrial strategy is that it would make it easier to ensure the long-term needs of the whole economy come before short-term considerations. The trade deal that the federal government just signed with South Korea is a good example of why we need a modern industrial strategy.

Grain transportation crisis shows hands-off approach doesn't work

In the first full year since the Canadian Wheat Board lost its monopoly on selling Canadian grain, a grain transportation crisis has developed.

The Toronto Star reported that 50 ships are waiting to load grain in Vancouver, while grain silos on the Prairies are full. Japan is buying wheat from the United States instead of Canada.