With the resumption of parliament only a few days away, most people are at the edge of their seats awaiting the new budget to be announced by Harper. To avoid a vote of confidence, we are expecting as much as a $30 Billion deficit, with spending on infrastructure, tax cuts, and employment insurance. Considering only a few months ago, Harper denied the allegations of Canada even being in a recession; this will be a major step towards fixing the economic hardships which we are all enduring. The idea is to put government spending towards the growth of the lower and middle classes to ensure consumer spending, thus kick-start the economy.
Thirty-billion dollars is a lot of money. What happens if this deficit occurs and no change is done to our economy? Worse, what happens if with this major spending and deficit, our country goes further into recession? Where is this money going to come from? Will Canada spiral further into debt? Could we face the ever growing fear of another depression?
While these questions linger on everyone’s mind, infrastructure plans need to be perfected, spending must occur, but at the same time futile transactions must stop; jobs need to be created. Money must be put into the hands of the consumers. Confidence in not only the economy, but also the corporations and companies that keep it running, must grow. How do we go about doing that? Economists from around the country are working around the clock to figure out plans to ensure the growth of our economy, but they are – in the end – trapped within a box of their own creation, unable to take a step away from it, to gain an outside perspective on things.
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