Productivity research is Canada has traditionally focused on narrow economic issues. In our view, it has given inadequate attention to the broader ramifications of productivity, both in terms of shedding light on the importance of productivity for the advancement of various aspects of social...

In this chapter, Jim Stanford agrees that measures were needed to eliminate the deficit. But he argues that Paul Martin's program spending cuts were larger than necessary and caused real pain in many areas of Canadian life. He shows that a strategy in which program spending was frozen in nominal...

In this chapter, William Watson challenges Heath's interpretation of the benefits of productivity growth, but agrees with Richard Harris' views on the state of our knowledge about the potential contribution of social programs to productivity growth. Watson tackles Heath's assessment of the...

In this chapter, Don Drummond makes the case that with large deficits there was little room for the Bank of Canada to reduce interest rates to stimulate the economy and generate revenues. It was imperative that the deficit be eliminated. Tax rates were already high so the government had no...