Governments in Canada are experts at imposing rules and regulations rather than incentives.
The government plans to spend up to $100 billion for economic stimulus over the next three years.
Sweden compensates for its big government with an open free-market economy and business-friendly laws.
This government has not released a long-term forecast of spending, taxation and borrowing since 2018.
The Trudeau Liberals initially promised to run deficits for three years to finance spending increases.
The relative size of government in Canada is well beyond the “optimal” size for promoting productivity growth.
Canada ranks 6th highest among 35 high-income for the share of the economy represented by government spending.
Borrowing costs could increase without interest rates changing if lenders believe Canada is becoming a bigger credit risk.
The federal budget deficit in 2020-21 is an esitmated $343.2 billion.