The government says $101 billion in stimulus spending is required for “sustained economic recovery.”
Federal debt as a share of the economy will reach roughly 56 per cent, the highest percentage since 1998.
Even though the vast majority of Americans never lost their jobs, politicians sent stimulus money directly to most households.
Governments should instead tax less to improve economic growth and spend less to reduce deficits.
The government plans to spend up to $100 billion for economic stimulus over the next three years.
Evidence suggests that a 1.0 percentage point increase in spending produces a 0.75 percentage point drop in economic growth.
C.D. Howe op-ed cites no empirical evidence or research to substantiate its opinions.
Stimulus spending can actually "crowd out" private economic activity.
So-called “shovel ready” infrastructure projects take significant time to plan and implement.