Investing in People is Good Business

This paper questions the standards of international credit rating agencies in light of the threat by Moody’s Investors Service Inc. to downgrade Canada’s credit rating on most of its debt.  The commentary argues that these “self-appointed arbiters of our economic health” do not take sufficient account of the social health of the country and its impact on economic performance.  The Economist recently reported that several firms which went south of the border in search of cheaper wages and lower payroll taxes as a result of free trade agreements now see Canada as the “better bet.”  These firms are returning because of the presence of healthy, well-educated and skilled workers.  Canada makes substantial investments in health and education – both of which are accessible through publicly-supported programs.  The credit raters’ calculations of the pluses and minuses of the Canadian economy should include the quality-of-life factors that are essential not only for good business but for the well-being of the country as a whole.

ISBN – 1-895796-31-8