Way to bring down a room, Don Drummond. The London Free Press reports that the TD Financial Group’s chief economist has a dire warning for cities and townships eager to partake of the federal government’s ongoing stimulus spending spree: When it comes time to pay the bill, it will be the lowest level of government that bears the brunt of the fiscal belt-tightening that will almost inevitably ensue. Drummond delivered the bleak message in a speech at the annual meeting of the Association of Canadian Municipalities. Although he doesn’t think that the looming deficit crisis will result in “draconian” cuts like those imposed during the 1990s, he also pointed to the rising Canadian dollar—and sliding Canadian auto sector—as having the potential to further increase the pressure on local economies.
Fear the reaper
Much-coveted stimulus money will lead to doom, gloom for municipalities, economist predicts