Can they panic the people into going even deeper in debt? We'll see I guess...
Carney taking a ‘gamble’ with large deficit in fall budget: Desjardins economist
OTTAWA — A Desjardins economist argues the surge in government spending in the Liberals’ upcoming fall budget is a “gamble” that will lead either to unsustainable levels of public debt or a new era of economic growth.
Desjardins deputy chief economist Randall Bartlett released an analysis of federal finances Wednesday ahead of the much-anticipated fall budget, set for Nov. 4.
In an interview, he called this year’s federal budget — the first under Prime Minister Mark Carney — “unprecedented.”
“What sets this budget apart from previous budgets is the size of the deficit outside of a recession or pandemic,” Bartlett said.
Bartlett said that, outside flashpoints like the COVID-19 pandemic or recessions, the closest comparison to the scale of this deficit would be Canada ballooning debt crisis of the 1990s, which required a sharp fiscal correction. Ottawa’s fiscal position is much stronger today, Bartlett noted.
Finance Minster François-Philippe Champagne has argued the threats to Canada’s economy posed by U.S. tariffs and global trade disruption require a “generational” level of investment.
While governments often run steeper deficits in times of economic hardship, Bartlett argued the situation is different today.
OTTAWA — A Desjardins economist argues the surge in government spending in the Liberals' upcoming fall budget is a "gamble" that will lead either to unsustainable levels of public debt or a new era of economic growth. Desjardins deputy chief economist ...
everythinggp.com