Last week Bank of Canada Governor Stephen Poloz told us economic growth is back and we can start de-leveraging the dangerous debt levels in our economy.
But behind the headline we learned something fascinating about what, at least in part, sparked that growth: government tax policy to redistribute income.
“The change to the [Canada] child benefit program has been highly stimulative. You can see that in the consumption figures,” Poloz told Omar Sachedina of CTV News.
The growth-boosting policy change praised by Poloz is the replacement of Harper’s old Universal Child Care Benefit (UCCB) by the Liberals’ new Canada Child Benefit (CCB). The change-over happened last year.