In 2008 Canada faced an economic downturn, which resulted in a recession. Canadians had been enjoying a lucrative economy in the year’s previous and certain business sectors were thriving. In late 2007 cracks in the economy started to appear and, soon after, the recession had hit the country full bore. During this devastating time, the Canadian government developed an Economic Action Plan to counter the effects of the recession. This action plan had first been started in 2006, but was implemented during 2008 to spark the lagging economy. This was done by increasing government spending throughout the country and, specifically, in places in Canada that were suffering the most. There are many ...view middle of the document...
Through the Economic Action Plan, the Canadian government has been able to lower taxes and tariffs, doing away with irrelevant regulatory burdens and they are assisting new businesses to integrate into communities. This portion of the action plan is also implementing several different methods in order to accomplish this task. Examples of some of the methods are:
• Providing tax relief
• Extending the Hiring Credit for Small Business for an additional year
• Providing $92 million to the forestry sector
The next step in the Economic Action Plan is Creating a New Building Canada Plan, which primarily focuses on building an efficient public infrastructure in every community throughout the country. This would involve the building of things such as roads, bridges, subways, highways and commuter rails. By building a community’s infrastructure it can improve the economy by providing jobs. Employees will be needed for the new infrastructures being built and these employees can be found within the community. This helps the economy in two ways; it keeps the unemployment rate down and it allows people to contribute to the local economy more than they could if they were suffering from unemployment.
The fourth step in the Economic Action Plan for 2013 is Investing in World-Class Research and Innovation. The Canadian government has recognized that in order to have continued country-wide success, Canada must create and sustain high-paying, high-value jobs for its citizens. Due to the concept of the ‘global economy’, Canada is under more pressure than ever to ensure that the country has highly educated, skilled, and motivated individuals that will help keep businesses innovative and will secure new markets. In order to ensure that Canada will be able to do this they are going to contribute $225 million to support advanced research infrastructure, they will be providing $18 million to the Canadian Youth Business Foundation, and will also contribute an additional $37 million to the granting councils in support of research partnership, which will help create and distribute new technologies, products, and services to the marketplace.
The fifth concept for the Economic Action Plan is Supporting Families and Communities. This portion of the plan focuses on...