(public).sospep.subjects ~ view article ~ defecit-paranoia-is-mind-bogglingly-stupid

<h1 style="text-align: center;">Analysts on Canada's budget: &lsquo;Deficit paranoia is mind-bogglingly stupid&rsquo;</h1>
<h2>[WHAT]</h2>
<ol>
<li>] by MICHAEL BABAD @theglobeandmail.com - Analysts weigh in on Canada's budget: &lsquo;Deficit paranoia is mind-bogglingly stupid&rsquo;</li>
</ol>
<h2>[WHY]</h2>
<ol>
<li>]&nbsp;</li>
</ol>
<h2>[WHERE]</h2>
<ol>
<li><strong>] READ THE FULL ARTICLE</strong></li>
<ol>
<li>]&nbsp;<a href="http://www.theglobeandmail.com/report-on-business/top-business-stories/analysts-on-tomorrows-budget-deficit-paranoia-is-mind-bogglingly-stupid/article29308661/" target="_blank">http://www.theglobeandmail.com/report-on-business/top-business-stories/analysts-on-tomorrows-budget-deficit-paranoia-is-mind-bogglingly-stupid/article29308661/</a></li>
</ol></ol>
<h2>[WHEN]</h2>
<ol>
<li>] 2016-03-21</li>
</ol>
<h2>[EXAMPLE]</h2>
<ol>
<li>] Canada&rsquo;s new government is expected this week to unveil<strong> a stimulus budget with a deficit in the area of $30-billion.&nbsp;</strong></li>
<li>]&nbsp;Finance Minister Bill Morneau has already adjusted the outlook amid the oil shock, <strong>projecting a deficit of $18.4-billion in the 2016-17 fiscal year, not including the Liberal government&rsquo;s promised spending initiative</strong>. When you add it all together, it&rsquo;s looking like about $30-billion.</li>
<li>]&nbsp;Besides <strong><span style="text-decoration: underline;">infrastructure spending</span></strong>, Canadians can expect to see a <strong><span style="text-decoration: underline;">new child benefit</span></strong>, changes to the <strong><span style="text-decoration: underline;">jobless benefits program</span></strong> and a <strong><span style="text-decoration: underline;">tweak to tax rules governing stock options</span>.</strong></li>
<li>]&nbsp;&ldquo;Deficit paranoia is mind-bogglingly stupid. &hellip; <strong>Even a $50-billion deficit wouldn&rsquo;t endanger the long-term outlook for the public finances, however.</strong> The <strong>bigger risk is that if fiscal policy doesn&rsquo;t take up the slack, the economy could slip into a prolonged downturn.</strong> It would be a tragedy if, after watching Europe nearly destroy itself, Canada made the same mistake.&rdquo; - Paul Ashworth, Capital Economics</li>
<li>]&nbsp;&ldquo;Expect the outcome of the next budget on March 22 to show <strong>cumulative deficits over the next two years well above $50-billion</strong> (roughly 1.3 per cent of GDP) if the stimulus promised during the election campaign is implemented.In our view the government has the flexibility to <strong>provide fiscal stimulus to a Canadian economy that badly needs it</strong>.&rdquo; - Marc Pinsonneault, National Bank Financial&nbsp;</li>
<li><strong>]&nbsp;&ldquo;Timely, targeted and temporary fiscal initiatives will provide a much-needed filip for the economy over the near term</strong> while potentially also improving long-term growth prospects. &hellip;<strong> However, prudent fiscal management requires that initiatives provide clear benefit to growth in the short and long term.</strong> As well, the funds spent will need to eventually be repaid with the upcoming budget expected to provide a game plan as to how the federal government plans to return to fiscal balance.&rdquo; - Craig Wright and Laura Cooper, Royal Bank of Canada</li>
<li><strong>]&nbsp;&ldquo;Canada still warrants a triple-A credit rating, and Ottawa can afford a moderate fiscal boost &ndash; especially for hard-hit regions.</strong> However, the deterioration in medium-term finances from weak commodity prices, less-favourable demographics, and softening provincial credit ratings s<strong>uggests that Ottawa should proceed with prudence.</strong> To reiterate: <strong>Canada is facing a structural shift from the commodity shock, and that&rsquo;s not something that can be quickly countered or fully mitigated by a big fiscal boost.</strong>&rdquo; - Douglas Porter and Robert Kavcic, BMO Nesbitt Burns</li>
<li><strong>]&nbsp;Canada&rsquo;s federal deficit will still be well below the U.S. federal government as a share of GDP</strong>, and a stimulative fiscal plan is a preferable option to having interest rates even lower for longer given existing household debt levels.&rdquo; Avery Shenfeld, CIBC World Markets</li>
<li><strong>]&ldquo;In evaluating the increase in the deficit, size is not all that matters. The composition will matter for growth.</strong> As such, an increase tilted towards investment in infrastructure would be viewed as more pro-growth than an increase due to increased tax credit. The reason is that, while the propensity of middle-income households to consumer is considered to be high, the record level of household debt will likely mean that most of the tax credit will be saved rather than spent.&rdquo; - Charles St-Arnaud, Nomura</li>
</ol>
<h2>[HOW-TO]</h2>
<ol>
<li>]</li>
</ol>
<h2>[REFERENCE]</h2>
<ol>
<li>] SRC = r/canada, <a href="https://www.reddit.com/r/canada/comments/4bc48t/analysts_on_canadas_budget_deficit_paranoia_is/" target="_blank">comments</a></li>
</ol>
<h1 style="text-align: center;">&nbsp;</h1>

~ view article ~ Chapter] political-issues-federal FROM [ Book] canada IN [ libraries] nations