03 August, 2009

- One of the biggest advantages, and safeguards, of EI is precisely that the rules can be made temporary and adjustable in accordance with the economy

Submitted to: Toronto Star, “Improving EI much better stimulus than infrastructureImproving EI much better stimulus than infrastructure",
Ken Georgetti, 3 Aug.’09
http://www.thestar.com/comment/article/674961


It is incomprehensible to require that the EI rules must be the same when Canada’s economy is doing well and when it is doing poorly. Criticizing the Liberal government because in the mid 90’s it changed the rules to fit the then current economic circumstances smacks of crass political opportunism.

The government of the day ought to be continually vigilant with all policies to determine how they might be adjusted to better serve Canada and Canadians under the existing circumstances. This is something ideologues, especial right wing extremist like Harper and the Cons, simply can not handle – they are fixed in their ideology and their policies are designed to conform not to current realities, but to conform to their ideology. That’s why you get guys like Harper denying the recession and dragging their feet with releasing funds for the stimulus packages.

Current economically based societies must have a government that takes a very hands on approach to the economy. Not only because economic circumstances are always changing, but there are many very large and powerful economies, with which we are required to compete, so do. Harper’s hand’s off, sink-or-swim, laissez faire, no government ‘interference’ (as they call it) is exactly wrong and with likely catastrophic consequences in the long run.


Employment insurance does feed money into the economy by placing it in the hands of people who are going to spend it. It is also has the additional social benefit of help people who need help – a vital aspect of a modern democracy, something the Harper government simply doesn’t seem to understand or agree with.

It does all this in a direct fashion, quickly and with very little overhead. Further, once in place it is difficult for the current government to drag their feet. These are all problems with infrastructure spending.

Certainly there must be safeguards. But one of the biggest safeguards in the EI system is precisely that the rules are temporary and adjustable in accordance with the economic times.

The president of the Bank of Canada suggested last week that Canada is moving out of the recession. However, the general consensus seems to be that unemployment will continue at these high levels and increase for quite a while. Ontario will be especially affected and, in all likelihood never recover, or at least not for decades.