Challenging conventional economic and tax policy narratives

Mainstream, or “neoclassical,” economics still dominates how we teach, study and understand our economy, even though much of it doesn’t match reality. In this piece, economists Louis-Philippe Rochon and Guillaume Vallet explain why outdated economic ideas persist and how they can lead to harmful policies. They challenge five common myths about inflation, growth and inequality, showing that today’s economy is driven more by power and institutions than by perfect markets. As "heterodox" economists, they argue it's time for a new kind of economics that reflects how the real world actually works.

The CSA Policy Pathways Conference convenes leaders, thinkers and changemakers across government, business, community and academia to confront the pressing questions shaping our economic future. How can we build resilience in the face of global uncertainty? What will it take to unlock innovation and ensure its benefits are broadly shared? How do we design policies that promote competition, inclusion, and financial security? Join us on November 5, 2025, in Toronto, as we explore how we can take bolder steps toward a more resilient, innovative and equitable economic future.

When U.S. tariffs threaten to strike creativity and culture, we can't afford to stay quiet. SCP Fellow and POV executive director Biju Pappachan explores the implications of the U.S. imposing a tariff on foreign-made films and explains why this is the moment for Canada to stand up for its filmmakers, crews and cultural sovereignty. Film and television are not luxuries; cultural production is a strategic sector that delivers exports, jobs and soft power. Just as we negotiate for agricultural or industrial tariff exemptions, cultural production deserves equal protection.

Some cryptocurrency advocates are promoting the use of stablecoins as a common currency, arguing that this new currency could help the cost-of-living crisis and promote economic equality – particularly for young people. Law professor, money expert and SCP Fellow Dan Rohde is not convinced that crypto can help address economic inequality. In this explainer, he breaks down what stablecoins are and aren’t, and how to think critically about their promises.

Our government’s best available data on Canada’s wealth gap excludes, by design, the wealthiest families in the country. As SCP Director of Policy Dan Skilleter writes, if we didn’t have the Parliamentary Budget Officer fact-checking Statistics Canada’s work, their numbers would tell us the top one per cent own only 2.5 per cent of all wealth – not nearly 25 per cent of all wealth in Canada, as the PBO reports. We like to think of Canada as a beacon of egalitarianism compared to our southern neighbours, but when you add in data from "rich lists" published by Forbes and Maclean's, our wealth concentration looks quite similar to the U.S.

As Canadians, we like to think we’re strong and free. But as SCP's Director of Policy Dan Skilleter explains, when it comes to the wealth gap, we're looking more like America Lite—better manners, but almost all the inequality. The way our economy is set up means that most of the benefits from economic growth go to financial interests and speculators, rather than to workers or other businesses. We can shift economic power to more people and aspiring entrepreneurs by making them owners. When more people have a stake, Canada’s economy works better for everyone—not just investors.

Approving a sale of Parkland to Sunoco may be attractive to the government because it would add US$9 billion to Canada’s total foreign direct investment (FDI), which politicians often tout as an indicator of national economic health. But, as SCP Fellow Sarah Doyle and SCP Chair Jon Shell write, total foreign direct investment is not a good reflection of the underlying strength of the economy. Plus, this deal would bring none of the benefits typically associated with FDI. It is unlikely to lead to increased capital investment, more or better jobs, or technology transfer into Canada. In fact, its impact may be just the opposite. If there ever was a deal with almost no Canadian winners, this is it. Ottawa should say no to Sunoco.

At the recent Victoria Forum, community and philanthropic leaders outlined creative community finance and impact investment ideas that could mobilize big pools of private capital to invest in local businesses, social purpose organizations and community infrastructure. However, as SCP CEO Matthew Mendelsohn writes, despite the growing maturity of the social finance community, Canada still lacks the social and community financing infrastructure and policies to make this happen. With some important fixes to fragmented financing and outdated regulatory frameworks, the coming Budget could make it easier for social finance investments to properly scale and deliver the kind of outsized impact Canada needs at this time.

Levels of our country's Foreign Direct Investment, or FDI, do not actually tell us much about the state of the economy. One large deal can significantly affect total FDI inflows, which can vary dramatically from year to year. Plus, as SCP Fellow Sarah Doyle and SCP Chair Jon Shell write, not all FDI is created equal. Distinguishing between beneficial and harmful FDI is even more important now, in the context of a global trade war and threats to Canada’s economic sovereignty. In this explainer, they unpack FDI: what it is, when it is and isn’t beneficial and why understanding these nuances matters.

Heather Scoffield is founding CEO of a new independent nonprofit Canadian institution created to lead an informed national conversation on the links between taxation, economic fairness and a thriving democracy. Under her leadership, the Canadian Tax Observatory will drive in-depth research that pulls apart the strands of our current system so that we can thoroughly evaluate where we are and engage Canadians in a broad discussion about how to support economic growth while improving the fairness of Canada’s tax system. Over the next six months, the Observatory will connect with researchers in Canada, build alliances globally and develop its research agenda.