In the year 2006, the Government of Canada was able to launch a detailed plan for the country’s economy with a view of promoting economic growth that is stable, sustainable and long-lasting. This economic stimulus program was meant to build on the main and strategic advantages that country enjoys (Fougère, Mercenier & Mérette, 2007). The Canadian Government enforced wide tax-cuts, put more money education to build knowledge, paid down its debts and developed infrastructure (Fougère, Harvey, Mercenier & Mérette, 2009). These actions were able to put Canada on a very solid basis for an economic growth that is sustainable and long-term. These actions implemented by the government also put Canada in a stronger position than many other nations in terms of effective and quick response to the 2008–2009 global recessions. This country was able to protect its jobs and maintain the growth rate of the economy despite the economic crisis, which engulfed the entire world.
The strong employment performance of Canada has been the key force behind its strong economic performance over time, with virtually 1.4 million employment opportunities made as from the start of the year 2006. However, the future of Canada seems extremely bleak since the negative trends in demography of the country will certainly make it hard to achieve improvement in the living standards and income of the Canadians using the traditional increase in employment opportunities (McDaniel, 2003). According to the prediction premised on empirical research, population aging is set to reduce the size of the workforce in the country within the next decade since most people will have attained the retirement age, but few youths will be available to take up their slots in the labor market. The rate of employment is, thus, set to decline sharply because of this problem of population aging in Canada (Harper, 2014). With reduced labor participation by the aging population, the level of productivity in Canada will decline significantly hence lower the rate of economic growth (Denton & Spencer, 2000).
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References
Denton, F. T., & Spencer, B. G. (2000). Population aging and its economic costs: a survey of the issues and evidence. Canadian Journal on Aging/La Revue canadienne du vieillissement , 19 (S1), 1-31.
Fougère, M., Harvey, S., Mercenier, J., & Mérette, M. (2009). Population ageing, time allocation and human capital: A general equilibrium analysis for Canada. Economic Modelling , 26 (1), 30-39.
Fougère, M., Mercenier, J., & Mérette, M. (2007). A sectoral and occupational analysis of population ageing in Canada using a dynamic CGE overlapping generations model. Economic Modelling , 24 (4), 690-711.
Harper, S. (2014). Economic and social implications of aging societies. Science , 346 (6209), 587-591.
McDaniel, S. A. (2003). Toward disentangling policy implications of economic and demographic changes in Canada's aging population. Canadian Public Policy/Analyse de politiques , 491-510.
