Alternative Budget stimulus package injects 2% of GDP into economy and creates 407,000 jobs



    OTTAWA, Jan. 6 /CNW Telbec/ - Today the Canadian Centre for Policy
Alternatives (CCPA) released the Alternative Federal Budget (AFB) fiscal
stimulus plan, a one-year package that would create 407,000 jobs, boost the
economy by 3%, and help protect Canadians from the worst of a recession.
    Consistent with recommendations by the IMF and OECD, the plan injects
$32.9 billion (or 2.1% of GDP) into Canada's economy to protect Canadians who
experience loss of income, as well as strengthen and build hard and soft
infrastructure to address the challenges of climate change, income inequality,
and aging populations.
    "We've laid out a bold and achievable set of initiatives that can protect
Canada from the economic storm while building for future generations," says
CCPA Senior Economist Armine Yalnizyan. "Our plan creates jobs and gives the
economy a jolt of life just when it needs it - now."
    The AFB Plan's impact on job creation and GDP has been validated by
Informetica Limited's macro-economic model.
    Key investments outlined in the plan include:

    
    - $12.4 billion to protect the most vulnerable Canadians with investments
      in fixing EI so more out of work Canadians receive benefits, poverty
      reduction, and income supports for seniors, children, and the working
      poor;
    - $14.7 billion to strengthen and build infrastructure with investments
      in municipal infrastructure, affordable housing, child care, and post-
      secondary education; it also honours the First Nations Kelowna Accord;
    - $5.8 billion to prepare for the future by investing in green
      infrastructure, training and education, and energy retrofits.
    

    "This stimulus package is good for Canadians and it's smart economics,"
says AFB Coordinator David MacDonald. "Simply put, government spending
initiatives outlined in this Plan provide far more job creating stimulus than
across-the-board tax cuts. People who have jobs spend; people who lose them do
not."
    The CCPA will release the full Alternative Federal Budget document later
this month.

    Leadership for Tough Times: The Alternative Federal Budget Stimulus Plan
is available on the CCPA website: http://www.policyalternatives.ca




For further information:

For further information: Kerri-Anne Finn, CCPA Senior Communications
Officer, (613) 563-1341 x306

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Canadian Centre for Policy Alternatives

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FEDERAL BUDGET 2009

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