Massive government spending will exact a heavy cost, says TD economist
The massive amounts of public money being spent by governments to boost the economy will exact a heavy cost in coming years. In the United States, the trillion dollar deficits of are of particular concerns, says TD Bank chief economist Don Drummond. But Canada will struggle too. The economy could recover from recession next year, but the country will face a prolonged period of slow growth as it comes to grips with deficit financing. Drummond has argued Canada’s deficit could hit $82 billion in the next two years. This is in contrast to the rosier outlooks offered by the Bank of Canada and the federal government.