Quote:
Originally Posted by Ronald Pagan
[/b]This is bad policy. When entering a recession governments should spend more not less. Fiscal austerity by governments in the early 1930s turned a recession into a depression.
In either case, it's not accurate to say that the Liberals will spend more. Infact, the amount of bald-faced lying committed by the Conservatives over the Green Shift is frankly disgraceful and sullying this election. They Liberals will spend no more than they earn through their new tax. Government receipts and expenditures will be very similar to current levels.
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In all the economics classes that I have taken and in all my professional experience, NO ONE takes Keynesian theory seriously anymore. There is a host of literature out there that almost certainly proves the negative long-term effects on an economic landscape.