Microeconomics,, 16th Canadian Edition

(Sean Pound) #1

Canadian Social Programs


Table 18-2 shows that government spending on health, education, and
other social services represents roughly two-thirds of total government
spending in Canada. Given their obvious fiscal importance, it is worth
briefly reviewing Canada’s major social programs.


Some social programs are universal, in the sense that they pay benefits to
anyone meeting only such minimal requirements as age or residence.
These are referred to as demogrants. Other programs are selective, in
the sense that they pay benefits only to people who qualify by meeting
specific conditions, such as having young children, having very low
income, or being unemployed. When these conditions are related to the
individual’s income, the term income-tested benefits is used.


In this section we examine the five pillars of Canadian social policy:
education, healthcare, income support, employment insurance, and
retirement benefits.


Education


Public education, one of the earliest types of social expenditure in
Canada, remains one of the most important. It has been supplemented
over the years by numerous other public programs aimed at developing
human capital. All levels of education are the responsibility of provincial




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