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CAUT Bulletin Archives
1996-2016

November 2001

Spend to Stimulate the Economy

Two-thirds of Canadians want the federal government to spend more on education and direct job creation to kick start the ailing economy, according to the latest poll conducted for CAUT by Decima Research Inc.

Nearly 37 per cent of those polled said the best way for Ottawa to help stimulate the economy and enhance the well-being of Canadians is for more investment in education and skills training. More than 30 per cent thought direct government job creation would best lift the economy out of its decline, while 24 per cent chose tax cuts and 6 per cent said the federal government should negotiate more free trade agreements.

"Canadians are understandably worried about the state of the economy and want Ottawa to intervene to help offset the slide we're in," said CAUT president Tom Booth. "It's going to take some positive intervention by the federal government to keep the economic downturn from getting worse."

Booth said he is disturbed over statements made in recent weeks by Finance Minister Paul Martin who is suggesting Ottawa is reluctant to implement any economic stimulus package or to make any further investments in health and education.

"Now is not the time for the government to be sitting on its hands," Booth said. "Particularly in the wake of the terrorist attacks in the United States, we're in real danger of sliding into a serious recession."

While signs of weakness in the economy appeared well before Sept. 11, the terrorist attacks in the U.S. have led all forecasters to drastically downgrade their projections for growth. Weaker than expected growth is expected to put serious strain on government finances, with the combined $30 billion surpluses posted by the federal and provincial governments last year expected to turn into an $8 billion deficit by next year.

Booth predicts the provinces will be the hardest hit, but Ottawa will still post a surplus of more than $7 billion in the current fiscal year. That follows on the heels of a $17 billion surplus recorded last year.

"The federal government still has a lot of fiscal manoeuvring room. They can't seriously claim the cupboard is bare," he said.

The poll found that more than 60 per cent of Canadians want Ottawa to focus on boosting spending on social programs in the upcoming budget to be presented in December. In total, 57 per cent want Ottawa to increase spending on universities and colleges. That compares with just 18 per cent who prefer more tax cuts and 19 per cent who feel the focus of the budget should be on reducing the public debt.

The poll also asked parents of children under 17 if they were worried their children may not be able to attend a university or college. Nearly 60 per cent of respondents said they were concerned or very concerned, and of those, 68 per cent cited cost as the main stumbling block that would likely prevent their children from continuing their education.

"Parents have a deep anxiety about whether their children will be able to go on to university or college," Booth said. "Governments of all political stripes keep telling them that young people have to get an education in order to survive in today's job market. Yet, very few governments are willing to back up that rhetoric with a real commitment to make our colleges and universities more accessible."

National support for the federal Liberals among decided voters continues to remain strong at 57.8 per cent, according to the poll. The Progressive Conservative Party remains far behind in second place at 11.8 per cent, while the NDP at 9.7 per cent has now moved ahead of the Canadian Alliance (8.2 per cent) for third spot. In Quebec, the federal Liberals enjoy the support of 57 per cent of those polled, while the Bloc Québécois has the support of about 30 per cent of decided voters.

The poll results are based on a telephone survey of 2,000 adults conducted Sept. 17-­Sept. 26, and are considered accurate within ±2 per cent, 19 times out of 20. Full results of the poll are available at www.caut.ca.