of information technology are themselves undesirable, even though they
may be partly responsible for changing market outcomes in ways that
generate more income inequality. The policy challenge is to continue
reaping their considerable benefits while designing policies that
encourage individuals to acquire valuable skills and also ease their
transition between regions and sectors in response to the adjustments
that are an inevitable part of a dynamic market economy. We will
encounter some of these policies in Chapter 18 when we examine the
Canadian taxation and expenditure system.