National Post

More spending

-

Re: The ‘ Oops’ Keep Coming For Trudeau, Andrew Coyne, Dec. 10. Kudos to Prime Minister Justin Trudeau f- or rejecting austerity in favour of in vesting in economic growth. The belief t- he government must restrict its spend ing is a holdover from the gold standard era, when government­s could run out of b- ullion and fail to pay their debts. To day, the myth lingers on, fomented by those ideologica­lly inclined to restrict government activity.

Trudeau’s real failure is promising to balance his fourth- year budget and to decrease the debt- to- gross domestic product ratio. These are convention­al measures that have no justificat­ion when a country owns its central bank and has a sovereign, fiat currency. The only practical limit to spending is the prospect of i nflation, but since the drop in oil prices has left Canada with much spare capacity, our economy can handle a massive government stimulus r- equired to get our 1.3 million unem ployed back to work.

Larry Kazdan, Vancouver.

Newspapers in English

Newspapers from Canada