Armine Yalnizyan, an esteemed economist, along with Kevin Milligan, a professor of economics at the University of British Columbia, engaged with reporters during the ongoing three-day federal cabinet retreat. The economists provided insights into the economic challenges facing the middle class and discussed the pressing issues of affordability.
The federal cabinet retreat in Montreal witnessed a crucial dialogue between economists Armine Yalnizyan and Kevin Milligan and the media. The economists shed light on the need to redefine economic strategies in the face of slowing growth and mounting pressures in healthcare, housing, and immigration.
Yalnizyan emphasized the importance of reevaluating the nation’s economic priorities, urging a shift in focus to address fundamental issues like housing, healthcare, and the care economy. She argued that without a solid foundation in these areas, the nation’s economic prowess could be compromised.
Addressing concerns about fiscal constraints, Milligan debunked the notion that the government has limited fiscal room. He highlighted Canada’s favorable credit rating, surpassing that of the United States, and advocated for strategic spending on crucial areas like housing and care.
Yalnizyan stressed the need for prioritizing foundational investments in society, such as housing, food, and care, before pursuing ambitious industrial growth plans. She underscored the struggle faced by the 25 to 40-year-old demographic in securing affordable housing.
Yalnizyan proposed repatriating pension funds to address domestic needs, pointing out the substantial dry powder in private equity globally. She urged a strategic plan to utilize domestic resources for critical infrastructure projects, including housing and the care economy.
Highlighting the significance of the care economy, Yalnizyan emphasized its foundational role, dispelling the notion that it is an afterthought. She urged collaboration with provinces and attaching conditions to funding, ensuring improvements in the care sector, especially long-term care and childcare.
Milligan addressed the productivity debate, emphasizing the importance of sustained wage growth outpacing inflation. He outlined the government’s role in facilitating private sector investment in Canadian workers, promoting skills development, and supporting transitions from education to the workplace.
Both economists agreed on the government’s role in supporting policies that enhance the care economy, encourage firm investment in workers, and facilitate smoother transitions from education to employment. The focus was on sustaining the current trend of wage growth surpassing price inflation.