Comment 28343

By A Smith (anonymous) | Posted January 29, 2009 at 12:38:32

Ryan, why would you listen to a government that has produced three years of poor economic growth? Furthermore, the idea that money spent by individuals is less likely to result in real output gains, then money spent by the government is laughable. Just look at Japan. They spent most of the nineties building infrastructure (and running high deficits) and it did nothing to increase real output. In recent years, as the government has been forced to tighten up its budget, thus increasing the role of the private sector, the economy has started to grow again.

The best way for Canada to get real output growing again is to limit government spending to population plus inflation, stop increasing the minimum wage (which only makes it less likely that businesses will want to hire workers) and allow anyone who wants to come here to work to be able to do so. Luxembourg has allowed businesses the freedom to bring in workers for decades and they have a per capita GDP twice that of Canada. In fact, I believe that two thirds of the people that live there aren't even citizens.

Furthermore, if government spending is so effective at increasing real output, why is it that Harper and Co. have seen such poor economic performance since they took over? They have grown government spending much faster than Chretien did and yet while Chretien was in office, Canada's economy was one of the best in the world. Explain that?

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