In what can only be seen as a decision not to decide, our nation's Prime Minister has proudly proclaimed that he will think about the impending recession after the whole deep dark Canadian winter has passed:
Canadians will have to wait until the next federal budget before Ottawa delivers what Prime Minister Stephen Harper said could be an "unprecedented" fiscal stimulus package - a delay economists say the country can ill afford. A spokesman for the Prime Minister's Office said yesterday the government is still trying to determine what would be appropriate and is looking at 2009 budget measures rather than action outside of that.
Whoa, there big fella! Don't get any whiplash or anything. Make sure you get a good season in before you react to fast moving events. I suppose it is funny because the infrastructure work that would likely be at the heart of a recovery plan is screaming to be done. Highway bridges in Quebec need renewal as do municipal sewer systems as do rural broadband as do water systems on remote First Nations. We have been sitting on our hands for a few decades and, now that we are facing the need to get work going, there is actually work needing done. And be honest - market intervention is not "yikes socialism!!!" when the government just plays the role of goods and services buyer. Puts money in the pockets of people who know how to use a shovel, always a good thing for the economy.
So, unless dong nothing turns out to be the wisest form of intervention - right after dairy production goes lunar - how will Mr. Harper look after Obama goes BAM! and gets the next generation of needed US infrastructure projects moving? Is this an Iggy-tastic moment?
Comments
Caren - November 25, 2008 2:39 PM
Congrats regarding what you wrote on [redacted] blog!
Alan - November 25, 2008 2:40 PM
Who me?
Ben (The Tiger) - November 25, 2008 5:12 PM
A decision not to decide?
Stephen Lyon Mackenzie Harper?
Renee - November 25, 2008 5:46 PM
This government, frankly, bugs me. This whole $120B infrastructure deficit has been ignored for so long ... now, Harper said the word "recession" and yet still they sit, being ... unstimulating.
Also, they did away with the EI surplus despite warnings of an economic downturn. Grr.
Argent - November 25, 2008 9:29 PM
Government has positioned for this skillful move by the Prime Minister. His wisdom, no doubt, directed parliamentary economic inquires with the best minds in Government. Well compensated experts contracted to determine bold new vision for Canada have reported their key findings.
It's to the future you must look for the sake of the children! It's important for you to gather your strength and prepare for the flurry of activity which will no doubt follow in a few winter's time. Following the wisdom of your august Leader and the sound advice from the intellectual elite you must enter the state of transience and make it all go away! Besides, he needs his beauty sleep.
Jay Currie - November 25, 2008 9:43 PM
There are good arguments for getting funds flowing into already budgeted infrastructure projects. There may be good arguments for initiating further such projects. But there may also be excellent arguments for avoiding inflation and trying to keep any deficit within reasonable bounds.
Right now there is a panic in the United States which will almost certainly result in a wave of money inflation which may simply exacerbate and already difficult situation. Canada is in a very different position than our American friends or our European friends. We have been well served by the stodginess of our bankers and the stinginess of our governments. We have the capacity to actually target government expenditure to where it will do the most good. Taking a few months to plan the intervention may very well leave us substantially better off.
Alan - November 25, 2008 10:16 PM
I note your use of the subjunctive case. Care to answer the implicit "why" that accompanies that structure?
Renee - November 26, 2008 3:27 PM
Hey, Jay, actually, I think it's not a good reason, I think it's a stupid, ideological one.
PS: The Progressive Economics Forum is a group of respected economists. Even TD plagarized them once. So I'm inclined to believe 'em.