…Canada has surprisingly often been the place where the future happens first – and it’s happening again. Last Monday, Canadian voters swept the ruling Conservatives out of power, delivering a stunning victory to the center-left Liberals [led by Justin Trudeau,]…in a clear rejection of the deficit-obsessed austerity orthodoxy that has dominated political discourse across the Western world. The Liberals ran on a frankly, openly Keynesian vision, and won big…
The commentary above & below consists of edited excerpts from an article* by Paul Krugman as posted in The New York Times.
[Part of]…the Liberal Party of Canada platform said:
“Interest rates are at historic lows, our current infrastructure is aging rapidly, and our economy is stuck in neutral. Now is the time to invest.”…[That’s] what sensible economists (even at places like the International Monetary Fund) have been saying all along and the Liberals weren’t punished politically — on the contrary, they won a stunning victory…
Does…[the Liberal economic platform] sound reasonable? It should, because it is.
- We’re living in a world awash with savings that the private sector doesn’t want to invest, and is eager to lend to governments at very low interest rates.
- It’s obviously a good idea to borrow at those low, low rates, putting those excess savings, not to mention the workers unemployed due to weak demand, to use building things that will improve our future. Strange to say, however, that hasn’t been happening… continue
Let’s hope that Mr. Trudeau stays with the program. He has an opportunity to show the world what truly responsible fiscal policy looks like.[For more of Krugman’s views on unconstrained spending read THIS article. For an independent analysis of the TRUE situation in Canada read THIS article from the Globe and Mail which says “the ongoing global slide in the price of oil and many other commodity prices is a very ominous sign for the short- and medium-term future of the Canadian economy… neither the government nor the Bank of Canada has the slightest ability to raise the price of a barrel of oil, a ton of copper or a bushel of corn on world markets. We might be heading into a dark, stormy and long night.”]
*http://www.nytimes.com/2015/10/23/opinion/keynes-comes-to-canada.html (© 2015 The New York Times Company)
Balderdash says this reader!
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