“Our studies show that billions are being borrowed to fund transfers to others whose desires are at least questionable at a time when Ottawa is experiencing historic deficits,” said Jason Clemens, executive vice president of the Fraser Institute and co-author of The Federal Government wastes billions of dollars on misdirected help.
“This is that more than one in $4 (27.4%) COVID-related expenses analyzed are potentially wasted due to lack of targeting,” Clemens said.
The study found that a total of $22.3 billion of new federal program expenses (CERB and CESB) and unique bills similar to Old Age Security, the Guaranteed Income Supplement, and Canada’s Child Allowance are potentially sent to others with questionable needs. In particular, young dependents and others living in families with family incomes of at least $100,000 in 2019.
Canadian Emergency Response Benefit (CERB): Up to $11.8 billion for 15- to 24-year-olds with income in 2019 between $5,000 and $24,000 living with their dependent parents on families with household incomes of at least $100,000. In almost all cases, the benefits paid to these young people, almost one million of them, under CERB exceed their monthly income in 2019.
“Stabilizing other people’s source of income in a recession is a sound economic policy, but cash deserves to be passed on to the other people who really want it, and it deserves to update the lost source of income, not improve the landscape of other people who before the recession.” Clemens said.
CONTACTS WITH THE MEDIA: Jason Clemens, Executive Vice President, Fraser Institute
For media interviews or information, contact: Drue MacPherson, Fraser Institute (604) 688-0221 ext. [email protected]
The Fraser Institute is an independent Canadian education and public policy study organization with offices in Vancouver, Calgary, Toronto and Montreal and links to a global network of think tanks in 87 countries. His project is for the quality of life of Canadians, their families and long-term generations by studying, measuring and communicating broadly the effects of government policies, entrepreneurship and possible choices on their well-being. To protect the independence of the Institute, it does not conform to government scholarships or study contracts. Visit www.fraserinstitute.org