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MONTREAL | the improvement of The standard of life of Quebecers is going through a reduction in public spending, advocates of the Montreal economic Institute (MEI), in a new study published on Wednesday.
According to the reflection group on public policies, that is said to be independent, the reduction of government spending will ultimately reduce taxes and, incidentally, to stimulate domestic and foreign investment.
By the same token, the productivity of Quebec will increase, and at the same time, their level of life, the judge of the MEI.
“Québec has recorded one of the lowest rates of growth in the standard of living among the developed countries since the 1980s and ranks in the back of the pack when we compare his lifestyle with that of other countries and provinces. We can get out of this slump, particularly in increasing our productivity,” said Germain Belzile, associate researcher senior at the montreal economic institute and co-author of the publication, by press release.
The author notes that in Canada as a whole, the weight of the State represented 41 % of gross domestic product (GDP), while in Quebec, this ratio rose to 52 %. According to the MEI, such a level of intervention in the economy undermines the potential productivity gains that could get in Quebec, necessary to a rising standard of living.
“If the government really wants to encourage private investment – and there is no reason to doubt it –, it must prioritize a reduction in its expenditure and, more generally, to intervene less in the economy. This is the only way that the potential prosperity of Quebecers will be fully realised”, also said Mr. Belzile.