Fiscal Choices: Canada After the Pandemic(The Johnson-Shoyama Series on Public Policy)

The COVID-19 pandemic revealed that governments can quickly respond to a fiscal crisis without becoming mired in unproductive wrangling. But the pandemic has also revealed the limits of traditional policy instruments in stabilizing the economy, controlling inflation, and fostering economic growth. Fiscal Choices sheds light on the economic dimensions of COVID-19 and examines the state of Canada’s fiscal policy and fiscal health following the pandemic. The book covers a cluster of key fiscal policy topics: the overall capacity of government, the growth of inequalities, the management of sovereign debt, and the troubled institutions of federalism and parliamentary government. The book draws upon candid, in-depth interviews with over 70 former and current politicians, public servants, and academic experts who aim to establish a sustainable future within an accountable political system. The book argues that although those who are entrusted with the instruments of power are intelligent and well meaning, they are reluctant to take risks or abandon well-known, if poorly performing, formulas. It concludes with a set of predictions and prescriptions rooted in a realistic interpretation of Canada’s political economy. Ultimately, Fiscal Choices presents a sober assessment of federalism and parliamentary government as instruments of democratic accountability.

Table of Contents:
List of Illustrations List of Tables Preface  Abbreviations 1. The Pandemic and After  Responding to the Pandemic  The Post-pandemic Search for Stability  What Kind of Change Is Required?  Keep in Mind 2. Making Economic Decisions  An Epistemic Elite  Distinctive Roles and Critical Relationships  The Limitations of Elite Decision-Making  Conclusion 3. Governing after the Pandemic  Can Government Do Good?  Stabilizing the Economy: Program Design and Delivery  Governments’ Role in the Economy: Will Anything Change?  The Growth Imperative   Conclusion 4. Coping with Income and Wealth Inequalities  Why Is Inequality a Problem?  The Complicated Relationship between Inequality and Economic Growth  Traditional Programs That Tackle Inequality  Alternative Proposals on Inequality  Conclusion 5. Dealing with the Debt  Debt Dimensions  The Debt Threat  Guardrails, Anchors, and Rules  Debt Options: Good, Bad, and Ugly  Conclusion 6. Holding the Federation Together  Evaluating Fiscal Federalism Institutions  The Pandemic: Addressing a Fiscal Emergency  Risk Reduction   Risk Sharing  Conclusion 7. Keeping Government Accountable  On Being Accountable  Parliament and the Budget Process  Bureaucrats, Budgets, and Program Reviews  Auditors and Budget Officers  Conclusion 8. Canada’s Fiscal Future  Stubborn Realities  Pandemic Effects  Pressing Needs  Conclusion Appendix 1: Interview Questions Appendix 2: A Survey on Canadians’ Opinions on the Post-pandemic Economy and Fiscal Policy References Index

About the Author :
Michael M. Atkinson is an emeritus professor at the Johnson-Shoyama Graduate School of Public Policy at the University of Saskatchewan and an adjunct professor in the School of Public Administration at the University of Victoria. Haizhen Mou is a professor at the Johnson-Shoyama Graduate School of Public Policy at the University of Saskatchewan.

Review :
"Fiscal Choices is an elegantly written, thoroughly researched, and innovative account of the 'stubborn realities' and sobering challenges facing post-COVID-19 Canada, and the high hurdles posed by effective fiscal policies to resolve them. Critical but fair in implicating our political institutions and economic elite in these hurdles, Fiscal Choices is crucial reading not just for the political and economic elites who make Canadian fiscal policy but for all of those with a stake in a prosperous and stable Canadian future." - Grace Skogstad, Professor Emerita of Political Science, University of Toronto "The COVID-19 pandemic revealed many weaknesses in our social and economic systems, giving rise to calls for a 'Great Reset' and 'Building Back Better.' Fiscal Choices is a comprehensive guide to the policy issues that arose in the course of COVID-19. It will be particularly useful in helping Canadian policymakers navigate the emerging challenges posed by AI and robotics, the evaluation of industrial policies motivated by near-shoring and climate goals, and the long-term effects of population aging on health care costs and productivity growth. Engagingly written, Fiscal Choices should be required reading for scholars and students of public policy and administration across Canada." - Bev Dahlby, Research Fellow, School of Public Policy, University of Calgary