Quote:
Originally Posted by Tinordi
It's actually very sound to be running deficits in tough times and trimming back in good times. See the wreckage of austerity in Europe for a poignant exhibit.
|
Sure running a deficit can be good in bad times. if you're unemployed and don't have skills and can get a student loan and go back to school that's great. Up grading your car so you can get work delivering packages, probably a great idea.
But if you're going broke, and you're over running your credit card to keep your maid or your nanny, when your sitting at home is stupid, because then your recovery stretches out way longer because your paying interest and getting no value for your money going forward.
Run a deficit and use that deficit 100% for infrastructure spending, or job creation, that's fairly sound economic policy. Running a deficit on operations and making it more and more expensive to borrow money, is bozo the clown economics at its best. The PC's should have been shot out of a canon for getting us down this road, the NDP are absolute idiots for continuing it and pretending its not a problem.