Austerity measures don’t work.
That’s the message from a senior economist with the Canadian Union of Public Employees.
Toby Sanger accuses the Gallant government of switching their focus from job creation to making cuts to services and programs.
He says austerity measures won’t improve the economic situation.
“They should focus on policies that will increase the wages and incomes and public services for New Brunswickers,” says Sanger. “And that’s going to help grow the economy.”
Sanger says at a time when 10% of New Brunswickers are unemployed, it is completely inappropriate the government is discussing cuts to services residents need more than ever.
Sanger says if the government really wants to fix the deficit, there are some simple steps they can take.
“Raise the corporate tax to 16%, that would bring in approximately 60 million dollars. There used to be a large corporations capital tax, that would raise another 50 million,” says Sanger. “If they increased the top income tax rate to 21% on incomes over $150,000, there’s another 50 million.”
Sanger adds closing more tax loopholes would raise an additional 20 million dollars.
According to him, those simple measures would immediately increase revenues, and create jobs and grow the economy.
