Green Party: EI Best Way to Stimulate the Economy

The Conservative government ignored the plight of laid-off workers and the advice of economic experts when it failed to increase access to employment insurance in last week’s budget.

The recent federal budget added five weeks of benefits to those who qualify but nothing was done for those who presently don’t qualify. The Green Party believes the Conservative government ignored the plight of laid-off workers and the advice of economic experts when it failed to increase access to employment insurance in last week’s budget. An estimated 60% of workers are not eligible to receive employment insurance benefits despite being required to pay premiums to the plan. Ian Lee, Director of the Sprott School of Business, in a presentation to Finance Minister, Jim Flaherty, described how recent studies suggest Employment Insurance is the best way to stimulate the economy. His presentation, echoed Mark Zandi, Chief Economist of Moody's, who recently met with members of the US Senate Budget Committee to put forward his research showing how EI can be the most effective stimulus for the economy. “It is unfortunate, yet not surprising that the Conservatives ignored advice to help the unemployed,” said Elizabeth May, Leader of the Green Party of Canada. In 1997, Stephen Harper, then Vice-President for the National Citizens Coalition, foreshadowed his government's view of the unemployed, "In terms of the unemployed, of which we have over a million-and-a-half, don't feel particularly bad for many of these people. They don't feel bad about it themselves, as long as they're receiving generous social assistance and unemployment insurance." “Last week's underwhelming budget exemplifies how this government continues to show little concern or understanding for those most in need," said John Fryer, Employment and Labour Critic for the Green Party. In a recent interview with Canwest News service, Diane Finlay, Minister of Human Resources and Skills Development exhibited the government's untimely disregard, "We do not want to make it lucrative for them to stay home and get paid for it, not when we still have significant skill shortages in many parts of the country." “The suggestion that unemployment benefits are ‘generous’ or ‘lucrative’ or that hard working Canadians would prefer to ‘stay home and get paid’ shows just how callously out of step this government is with the serious hardships faced by hundreds of thousands of Canadians,” said May. The Greens have a point worth discussing, people who do not have an income cannot participate in the economy as they cannot make purchases. In a consumer driven economy we need people to be out in the market place shopping and keeping money circulating. Is EI the best way, well it is a way, at least. I I see employment insurance as part of the answer rather than the whole thing, nevertheless, it is an idea worthy of more consideration.