Was it massive government spending turn the Canadian economy around? The Fraser Institute says no. And they have analysis to prove it.
The study found that of the 1.1 percentage point improvement between the second and third quarter in 2009, government consumption and government investment in infrastructure each contributed only 0.1 percentage points. Private-sector investment contributed 0.8 percentage points and was the driving force behind the economic turnaround from the second to third quarter of 2009.
The report echoes points made by the Canadian Taxpayers Federation, including that tax cuts are the best way to stimulate the economy, and that most of the "stimulus" building projects haven't even happened yet. Given that the economy is already turning around, these awful deficits have no excuse. As the economy rebounds, this means that the government will be competing with the private sector for labour and materials.
The full report is vailable here.
Is Canada Off Track?
Canada has problems. You see them at gas station. You see them at the grocery store. You see them on your taxes.
Is anyone listening to you to find out where you think Canada’s off track and what you think we could do to make things better?
You can tell us what you think by filling out the survey