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Articles on Deficit spending

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Bank of Canada Gov. Tiff Macklem speaks during a news conference at the Bank of Canada on Sept. 10, 2020 in Ottawa. THE CANADIAN PRESS/Adrian Wyld

The throne speech: Fiscal prudes are fretting about the wrong issues

While those on the left, right and middle worry about the federal deficit, the real world that we live in is in trouble. The fiscal prudes are fretting about the wrong issues.
Good old days: Before the coronavirus hit, governors, like California’s Gavin Newsom, had easier jobs. AP/Rich Pedroncelli, Pool

Plummeting tax revenues will put governors in tough budget situations

As Congress considers further financial help for victims of the coronavirus pandemic, the magnitude of the fiscal crisis that governors and their states will have to face is just starting to emerge.
Canadian bank notes are seen in this 2017 photo. Ottawa finances deficit spending by borrowing money. Twenty per cent of the money is borrowed from the Bank of Canada. In other words, the government borrows that money from itself. THE CANADIAN PRESS/Adrian Wyld

How government deficits fund private savings

Critics complain that government debt saddles future generations with a financial burden. The critics are wrong.

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