Stimulus Spending Should Continue
Aug 18, 2010
With the Canadian economy slowly improving, it is more important than ever that policymakers realize that we could just as easily drift back into recession if we do not continue to make targeted and strategic stimulus investments.
With the US still struggling to get its economy going, it is that much more imperative that the Canadian government keep a close eye on our economic recovery. Needless to say, the temptation is certainly out there for some to suggest that this would be a good time for governments to reign in spending to corral their massive budget deficits.
However, even the major Canadian banks are suggesting that pressing on with more targeted stimulus spending is the best approach to ensure that the economic recovery is continues. This is the argument in a recent BMO Capital Markets research paper entitled “The Stimulus Myth(s).”
As outlined by Douglas Porter, Deputy Chief Economist at the Bank of Montreal, primary among these myths are that financial markets are currently stressed by large budget deficits. With the exception of a very few examples – Greece, Portugal and Spain – “most government bond markets have shown no such concern this year.”
Another myth is that Canadian stimulus measures have been modest and largely ceremonial. Porter claims that although the Canadian government initially dragged its feet with regard to stimulus measures, it has arguably had “one of the most successful stimulus programs in the industrialized world.” The direct impact of Canadian stimulus spending has been shown to contribute to increased GDP growth in the amount of approximately one percent over the past year. According to BMO, this trend will continue into the next year.
The report concludes that given the still-shaky nature of the US recovery; the fact that Canada’s finances are improving faster than anticipated; and that fiscal stimulus has been quite effective here, government policymakers should keep all of their options open for the 2011 budget season and not put a hard freeze on stimulus spending just yet.
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Just a word about what a union is all about from my perspective. SUPPORT, SOLIDARITY AND COMRADERY. I have seen firsthand what this is about and what it can do if it is followed and believed in. I believe that now, more than ever, is the time that members need and MUST support each other with issues in the workplace. Due to threats of layoffs, downsizing AND continuous shuffling of civil servants, it is imperative that we ALL regain our composure and get back to the business of protecting our members and supporting our fellow workers. I see that SOLIDARITY is sadly lacking in our workplace and appears to be a thing of the past. Those FEW who have taken it upon themselves to work for the union and with the members are becoming tired of the APPARENT lack of support for what they ARE doing for the rest of us. Without the support of the newer members and upcoming workforce ( i.e. 25 to 45 years old) OUR union is and will be in trouble. It is too bad that our society has come down to the point that SELF preservation takes precedence over SOLIDARITY and working together and supporting one another. SOLIDARITY is lacking within the ranks of our workforce and until we get it back we will continue to have less and less of a say in how we run our places of work. I know that there are several members out there who have given their ALL in the hope that JUSTICE and FAIRNESS WOULD prevail in the workforce. These people will not be around for ever and WE as a UNION need to have some of our younger members STEP up and take some interest, at whatever level they can, to continue to allow OUR union to do the work it does. I know that we all have responsibilities at home and work that require our attention. However in order for OUR union to continue to it' s job it is essential that we get informed about OUR union and how it operates. Starting off with getting to know the COLLECTIVE AGREEMENT or actually becoming active and involved at the local level. IT ALL TAKES TIME I KNOW BUT WE MUST START SOMEWHERE IN SOLIDARITY S SMITH
steve smith - 2010-08-23 13:33