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The Debt Monsters are Awakening … but Don’t be Afraid
For the first few months of the COVID-19 pandemic, traditional voices of fiscal austerity were largely silent – even as governments began to incur very large deficits in response to the pandemic. More recently, however, prominent advocates of balanced-budgets and debt reduction have renewed calls for spending restraint. In this commentary, originally published in the Toronto Star, Jim Stanford explains why current deficits are not so “spooky” – and why focusing on deficit-reduction would make the recession worse. Trick-or-treating has been banned in several cities this Hallowe’en to limit the spread of COVID-19. But a rag-tag swarm of frightening creatures has nevertheless come out to frighten Canadians: with spooky stories…
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The Broken Promises of Corporate Tax Cuts
The pace of business capital spending in Canada has been weak in recent years, for several reasons – including the slowdown in the petroleum industry, the erosion of Canadian manufacturing, and now the impacts of the global COVID-19 pandemic and recession. This has spurred a resurgence of demands from the business community for lower company tax rates, which advocates claim will accelerate business capital spending. In this analysis, published originally by the Canadian Tax Foundation, Centre for Future Work Director Jim Stanford agrees that stimulating more capital investment (both private and public) is a vital goal. But there is no evidence from either recent Canadian history or international comparisons that…