“The current crisis is unprecedented!” “Governments globally are reducing interest rates to historic lows in response to this crisis.” “Government is urging banks to lend.” “TSX is down another 100 points …”
Not a day goes by these days without us hearing the words of economic gloom and doom. Deficit’s seem to be the new economic mantra. It seems to be the magic wand that will seemingly fix our economic woes. And perhaps it will. But I am not sure that getting into a deficit to fund infrastructure spending is the key to our economic recovery. A deficit may be effective depending on how we get into deficit.