Stimulus, explained - Macleans.ca
 

Stimulus, explained


 

In The Know: Should The Government Stop Dumping Money Into A Giant Hole?


 
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Stimulus, explained

  1. Heh heh. “My father worked TWO JOBS so he could throw money into that national money hole!”

  2. Notice the Loader and Hauler digging the hole are Volvo’s…not Caterpillars!

  3. That’s solid gold Andrew,solid gold…LOL

    I am in favor of private money holes…

  4. Where’s David Brooks when you need him?

  5. My faves:

    “You support people keeping their own money holes, diggging holes in the backyard and throwing their own money in, then?”

    And

    “I resent that accusation. I don’t take money from special interests, and if I did, I’d throw it right in the money hole because I’m a patriot!”

  6. Coyne, what were you suggesting instead? I can only imagine you favouring tax cuts at this point. The problem with most tax cuts are that people and business will just pocket the cash (in the expectation of deflation and because of low confidence). The most promising tax cuts would be a *temporary* reduction in GST (or a promise to increase it in a year or 18 months) or an acceleration in CCA. Other than that, I’m guessing you would oppose increased EI payments? Pity–those would actually be spent.

    I agree with you though, we shouldn’t just shovel money into the economy haphazardly. I’m not convinced that subsidies are inherently bad in the short-term. If we allow the economy to sink into a liquidity trap (and we’re darned close), it’ll become clear that even a few dozen billion bailout would have been much cheaper. Avoiding a prolonged period of negative economic growth actually keeps our debt smaller in the only sense that matters, debt-to-GDP.

  7. New Brunswick. Let’s see:

    – Easy access to large American markets
    – Seaport
    – Raw materials
    – Low taxes
    – Low Canadian dollar
    – Government health insurance
    – Bilingual
    – Excellent education system

    I like it. It would be a miracle if New Brunswick didn’t become more prosperous. You go, Boudreau!

  8. NB doesn’t have a major city, and all the synergies that go along with them. Not to say this won’t help NB, but it won’t light its economy on fire overnight.

  9. Andrew (not Potter or Coyne but possibly Rooney):

    Lighten up, it’s a joke. A funny one. Which for my money are the best kind of jokes.

  10. The recession has its purpose and no country has ever avoided a worldwide recession, especially a country so resource based. Lets just avoid some pain, take advantage of some downtime and prepare for the recovery. We can do this by putting those who do get laid off into school. Let the infastructure spending go to converting office and industrial space to college space. No time for new brick buildings. This will have the added benefit of restricting the labour supply to match demand, shore up land prices and replace panic with hope. A better skilled and expanded workforce will be more gobally competitive and dampen the inflationary pressures recoveries often create.