Wednesday, December 24, 2008

Canadian Politics - Investing in Infrastructure

Individual party politics aside, in the current economic client, a good question to ask ourselves (as the Canadian government experiences it's own unique brand of turmoil) is what should the government's role be in helping us boost the economy and prepare us for what is ahead.

I agree that the best course is to invest in infrastructure to create at least a temporary boost in aggregate demand while positioning us to be more competitive in the future. However, with circumstances being what they are, a key consideration is the effect of running a deficit during these trying times.

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