Mr. Flaherty is simply not prepared to do what is necessary to raise aggregate demand in the economy. For years, the government’s strategy has been to cut the deficit it created and hope that exports and investment would fill in the gap. This hasn’t worked. Despite this, Mr. Flaherty’s still believes the answer to insufficient aggregate demand is to eliminate the deficit by 2015-16. Even the International Monetary Fund thinks he’s wrong. It has recommended that, in the absence of a strong recovery in growth and job creation, the date of deficit elimination could be delayed.
Posted on: Thu, 30 Jan 2014 05:53:59 +0000
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