red-ink budget

2:00AM
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Ever since the last recession, Canadians have been informed by pundits and the political class that stimulus spending—perhaps better labelled as “binge” spending—was critical to Canada’s economic recovery.

But extra government spending had little to do with Canada’s exit out of the recession. The recession ended in mid-2009; it was only about then that federal and provincial governments started spending extra (borrowed) stimulus cash.