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.
Most people use extra one-time money from government to pay down debt or save.
Earlier this week, Finance Minister Jim Flaherty wrapped up his cross-country pre-budget consultation trip in search of recommendations for the upcoming federal budget. Most interest groups, economists, and activists are calling for massive increases in government spending to stimulate the economy much of it directed at their own pet projects or industrial sectors.