CIBC economist Benjamin Tal estimated every $10-billion of spending on infrastructure can potentially create about 115,000 Canadian jobs and lift economic growth by almost 1.5 percentage points.
According to Tal, personal tax cuts of a comparable $10-billion would create half the number of jobs – 57,000 – and boost GDP by just 0.8 percentage points.
Thus, infrastructure spending is much more efficient than tax cuts, however, is less efficient than investment in healthcare. According to David Macdonald from the Alternative Federal Budget Project at the Canadian Center for Policy Alternatives, putting $1 billion into healthcare would produce about 18,000 new jobs.
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