Friday, September 18, 2009
TD Economics: Training is Transformative Policy
The August 24/09 Special Report of TD Economics calls for "a 'transformative' response" to the recession that focuses on investing in workers, especially those that are marginalized.
In a speech to Queen's University School of Policy Studies, Don Drummond, Senior Vice President and Chief Economist for TD Bank Financial Group, urges Canada to "place social policy as a centerpiece of strategies to boost economic performance". He explores how well-designed social policy supports the economy and he warns against cutting back on key social spending areas as governments balance their books.
Drummond says, "From an economist's perspective, optimal social spending supports longer-term growth rather than being a continual drag on the economy." Investing in the labour market through training and education increases labour productivity and reduces reliance on EI and social assistance.
Such policies can, "support growth by encouraging workers' acquisition of skills promoting socially-desirable risk-taking, and facilitating well-functioning labour markets. These point to three targets for social spending: social investments, social insurance and social inclusion."
Drummond goes on to discuss the importance of addressing economic and social exclusion with such policies, particularly in relation to new Canadians. His arguments are equally relevant to female workers, many of whom labour in unstable, low-paying, dead-end positions and are unable to access EI or training.
When 60% of minimum wage workers are women, single mothers make $17,000 less annually than single fathers, and women earn an average of 28 cents less than men an hour, half of the labour force is at a disadvantage in contributing to their families and the economy. Training is an essential way to improve women's earning power, build the labour market and expand tax revenues.
TD Economics, Special Report
http://www.td.com/economics/special/dd0809_speech.pdf
In a speech to Queen's University School of Policy Studies, Don Drummond, Senior Vice President and Chief Economist for TD Bank Financial Group, urges Canada to "place social policy as a centerpiece of strategies to boost economic performance". He explores how well-designed social policy supports the economy and he warns against cutting back on key social spending areas as governments balance their books.
Drummond says, "From an economist's perspective, optimal social spending supports longer-term growth rather than being a continual drag on the economy." Investing in the labour market through training and education increases labour productivity and reduces reliance on EI and social assistance.
Such policies can, "support growth by encouraging workers' acquisition of skills promoting socially-desirable risk-taking, and facilitating well-functioning labour markets. These point to three targets for social spending: social investments, social insurance and social inclusion."
Drummond goes on to discuss the importance of addressing economic and social exclusion with such policies, particularly in relation to new Canadians. His arguments are equally relevant to female workers, many of whom labour in unstable, low-paying, dead-end positions and are unable to access EI or training.
When 60% of minimum wage workers are women, single mothers make $17,000 less annually than single fathers, and women earn an average of 28 cents less than men an hour, half of the labour force is at a disadvantage in contributing to their families and the economy. Training is an essential way to improve women's earning power, build the labour market and expand tax revenues.
TD Economics, Special Report
http://www.td.com/economics/special/dd0809_speech.pdf
Labels: Issues_and_Trends, Resources_and_Research
