Tuesday, June 2, 2009

Conservative government actually tightened the purse strings in this time of a need for increased spending

Far and Wide: Strange Timing

The Conservative government in Canada would have you believe that they actually are spending more to boost the economy in this time of recession. But, as reported in the Globe and Mail, and referenced in the Far and Wide's blog post, they are spending less. They promised a stimulus package, but they are not releasing the money as promised.

Excerpt from the Far and Wide post:
Government spending growth in Canada actually slowed to below the
historical average in the first three months of 2009, even as the
recession's grip tightened...

Government spending rose only 0.3
per cent in that period over the previous quarter. This increase even
fell short of the 30-year historical average of 0.5 per cent for
quarterly government spending growth.

"In a quarter they're
supposedly rolling out big stimulus, government spending actually rose
less than a typical quarter," BMO Nesbitt Burns deputy chief economist
Doug Porter noted.

As Mr. Porter observed, it's a surprise that government spending growth actually softened as the downturn grew.

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