(November 30 – 11:15 ET) – Canadian living
standards have slipped over the
last ten years, but current
economic growth should restore
them to 1989 levels, according to
economists at TD Bank.

Economic growth coupled with
personal income-tax cuts should
“spur a steady climb in living
standards in the years ahead,”
says TD.

Based on declining personal
disposable income-per-capita,
says TD, our living standards
fell 0.3% per year between 1990
and 1999. The economists cite
low job creation and proportionally
rising income taxes as the
principal reasons. In contrast,
per capita PDI rose almost 2%
per year in U.S. dollar terms over
the same period.

TD contends healthy job growth,
improved wage gains, and further
tax cuts would “result in steady
increases in living standards over
the next few years.” It forecasts
gains of 1.5% to 2% per year over
the next few years, although it
notes it will still take until
2001 to make up the ground lost
during the 90’s.

Alberta, Ontario and
Newfoundland are expected to
lead the way, but all provinces
are expected to post increases
over the next few years.

-IE Staff

For more please see:

http://www.tdbank.ca”>www.tdbank.ca and
www.newswire.ca