Introduction: Economic Policy in Canada 1
Economic Theory, Analysis, Policy, and Management 2
Goals for Economic Policy and Their Achievements 3
Policy Conflicts and Policy-Making 11
Summary and Conclusions 12
Part I: The Allocation of Resources 15
Chapter I: Agriculture 21
Problems in Canadian Agriculture 22
Current Policies Used to Alleviate the Income and Instability Problems 24
Canada and World Food Supplies 27
Canadian Agricultural Policies: An Overview 31
Summary and Conclusions 33
Chapter 2: Renewable and Nonrenewable Resources 37
Resource Management Problems in the Oceans 39
The Management of Canadian Fisheries 43
Forestry Resources 45
The Management of Nonrenewable Resources 48
Mineral Resources and Mineral Policy in Canada 50
Summary and Conclusions 54
Chapter 3: Energy Resources 59
OPEC and the Energy Crises of 1973 and 1979 59
World Energy Demand and Supply 64
Summary and Conclusions 74
Chapter 4: The Canadian Energy Scene 78
Energy Demand in Canada 78
Canada's Energy Supply 79
Canada's Energy Policy 88
Summary and Conclusions 100
Appendix 4.1: Welfare Implications of Low Oil Prices 103
Chapter 5: Canadian Manufacturing: Problems 105
An Overview of Canadian Manufacturing 106
Productivity in Canadian Manufacturing 108
Foreign Investment 115
Summary and Conclusions 119
Chapter 6: Government Policies and Canadian Manufacturing 123
Canadian Trade Policy 123
Competition Policy 127
Public Policy Concerning Foreign Investment 129
Research and Development Policies 133
Summary and Conclusions 135
Chapter 7: Health and Education 138
Health Care 139
Reasons for Escalating Health Costs 141
Policies Aimed at Promoting Efficiency in Health Care 143
Recent Government Policies Affecting the Health Sector 145
Expenditures on Education 146
Post-Secondary Education Costs 146
The Problem of Equity in Education 148
Recent Government Policies Affecting Post-Secondary Education 150
Summary and Conclusions 151
Chapter 8: The Transportation Industry 153
Transportation Policies and Their Justification 153
Problems in Urban Passenger Transportation 158
Intercity Passenger Transportation 161
Intercity Cargo Transportation 166
The Carriage of International Trade 168
Summary and Conclusions 174
Part II: The Distribution of Income 181
Chapter 9: The Rich and the Poor: People 184
The Size Distribution of Income 184
Who Are the Poor? 190
Causes and Possible Solutions to Poverty 191
Present Programs in Income Security 195
Summary and Conclusions 199
Chapter 10: The Rich and the Poor: The Provinces 202
Regional Disparities in Income and Employment 202
Causes of Regional Disparities 204
Regional Policy in Canada: An Overview 209
Summary and Conclusions 214
Chapter 11: The Rich and the Poor: Federal-Provincial Conflict and the Constitution 218
The Economic Sources of Discontent: The Provinces 219
The Economic Sources of Discontent: The Federal Government 223
Centralization vs. Decentralization: Economic Viewpoint 226
Proposals for Constitutional Change and/or Adjustments in Federal-Provincial Fiscal Arrangements 228
Summary and Conclusions 233
Part III: Stabilization Issues 237
Chapter 12: Unemployment and Inflation 239
Measurement of Inflation 239
Unemployment and Its Measurement 243
Recent Theories of Unemployment and Inflation 246
Policies to Combat Inflation and Unemployment 254
Summary and Conclusions 260
Chapter 13: The Balance of Payments and the Canadian Dollar 264
The Balance of Payments 264
Fixed and Flexible Exchange Rates: An Overview 269
Foreign Investment and the Canadian Economy 272
Summary and Conclusions 277
Chapter 14: Canadian Stabilization Policies: Past and Present 280
The Freeing of the Dollar, 1950-62 280
The Period of a Fixed Rate, 1962-70 283
The Floating of the Dollar in 1970 285
Wage and Price Controls, 1975-78 287
Monetarism and the Bank of Canada 291
The Post-Control Period 292
Summary and Conclusions 294