SETTING ECONOMIC GOALS IN CANADA
Economic goals are used as targets in order to focus the use of productive resources. Some are
complementary (reaching one goal makes another goal easier to achieve), while others may be
conflicting (reaching one goal makes another more difficult to achieve). On the whole, economic
goals are often similar among nations. However, the way they prioritize its conflicting goals will
determine how it distributes its productive resources.
The Canadian government has several goals that have emerged as priorities in the Canadian
economy.
Political Stability
 helps long-term planning and investment confidence
Reduced Public Debt
 less money spent on interest for debt
 helps keep interest rates lower as well as prices for consumer goods
Economic Growth
 when total production of G&S increases, we increase the average living standard
 public debt becomes less significant and easier to manage
Increased Productivity and Efficiency
 results from healthy competition and allows us to get more out of our existing resources
Equitable Distribution of Income (most controversial)
 different tax levels and transfer payments between provinces helps
 can remove incentive to work and efficiency
Price Stability
 need to keep inflation and deflation in check
 inflation devalues the dollar and raises the cost of living for people on fixed incomes
Full Employment (6-7% unemployment)
 attempt to reach optimal production
 difficult to achieve due to increased mechanization
Viable Balance of Payments and Stable Currency
 if we import more than we export, this creates unemployment and devalues the dollar
 balanced money flows in and out creates a stable dollar in foreign money markets
Economic Freedom
 freedom of choice for workers, consumers and investors (choice to consume, save or invest
money)
Environmental Stewardship
 need to reduce the negative effects we are having on the environment (may mean higher prices for
consumers and lower profits for producers)
 this could make us less competitive in world markets