Originally posted by Ben Kenobi
War and recession would be good examples of cases where a deficit would be warranted. Neither of which applies to the 8 percent increase in government spending at a boom time.
War and recession would be good examples of cases where a deficit would be warranted. Neither of which applies to the 8 percent increase in government spending at a boom time.
1. As was pointed out, we are not yet in deficit.
2. I was wondering how much of the increase in spending was incremental increases to the military or part of the Afghanistan mission? I would have thought that the Conservatives much touted refurbishment of the armed forces would raise the armed services budget by far more than 8%
3. Regardless of the fiscal situation there are ALWAYS some increased expenditures that could be worthwhile.
--Imagine we could cut greehouse gas emissions in Canada by 90% countrywide but it would take a 2 billion dollar federal expenditure
--Imagine another Hitler emerged and only spending to build am army could keep our people safe
4. I think we are of a similar opinion in that we generally prefer a government to live within its means. Running up debt is unacceptable. But I don't really mind if debt repayment is a long process-- If debt as a precentage of GDP is shrinking anyway through growth of the economy, the interest becomes less and less significant anyway-- Alberta is a good example of a place that focused too much on debt repayment and now faces some crushing infrastructure needs as they try to play catch-up in a boom economy with a labour shortage
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