Thank you very much for the question, Mr. Chair.
In the department, we use general equilibrium modelling techniques. In short, they fully characterize the relationships between firms and households in the economy. They look at firms from the perspective of input and output—meaning things like capital, labour, and material inputs—and at households from the perspective of income and consumption.
With regard to the CPP enhancement, we're looking at the behaviour of firms as they respond to higher contributions. Likewise we're looking at the behaviour of households as they respond to wage adjustments.
From a GDP perspective, as we detailed in the backgrounder, in the short term, in years zero through 12, there would be a very modest impact. From a GDP perspective, it would be in the order of magnitude of 0.05%, which, in terms of raw nominal values, is about $1 billion on a $2.4 trillion economy. Those impacts would dissipate through to 2031 when effectively those negative impacts would turn positive. In 2031 and going forward, effectively the various positive impacts would come online. Those would be the consumption by now higher-retirement-income-earning individuals as well as increased economy-wide savings feeding through to lower interest rates and increased investments.
That's the GDP modelling in a nutshell. From an employment perspective, it's pretty much the same thing as well. The short-term impacts would dissipate over time, and then they would be overwhelmed by the more positive long-term implications after that first 12-year period.