Worse, PBO head Kevin Page claimed that the bulk of this deficit was «structural» — that is, not a consequence
of the stimulus spending and automatic stabilizers that kicked in during the recession.
Similarly, after a period
of stimulus spending that increased spending and debt, the government is moving its spending back to traditional levels.
What seems to be happening is that most
of the stimulus spending now fattens the stockpiles of major corporations.
Bank of Montreal chief economist Doug Porter says he might not advise a new round
of stimulus spending as long as the economy is «plodding» along, but it also would not concern him.
And they will continue to improve with the ending
of the stimulus spending.
Program expenses were up only 0.4 per cent, as the ending of most
of the stimulus spending in the Economic Action Plan and lower employment insurance benefits nearly offset increases in transfers to other levels of governments (spending in this area is largely set in legislation) and in elderly benefits.
Typically during an economic slowdown there is a surge
of stimulus spending, financed by issuing debt.
With the ending
of the stimulus spending, the deficit is forecast to decline steadily over the medium term, with a surplus expected towards the end of the period (2015 - 16 or 2016 - 17).
Silver, however, said he saw no possibility that the federal government would provide the states with a third round
of stimulus spending, especially since Republicans will control the House of Representatives next year.
Biden, in 2009, was put in charge
of the stimulus spending approved in the wake of the recession — government funds meant to support a host of local - level projects.
Whether a better grid would be considered an infrastructure investment worthy
of stimulus spending by the Obama administration is not clear; the work would not produce legions of jobs and would create economic benefits only slowly.
To reassure a public that thinks at least half
of the stimulus spending has been wasted and has recoiled at inside deals like the late and unlamented «Cornhusker kickback,» as well as states that come up empty, you'd think Duncan would be at pains to make the evaluation process as transparent and credible as possible.
The immediate impact
of stimulus spending also tends to be muted in open economies like Canada's, where money easily flows across borders — an uptick in GDP is likely to be offset by a corresponding rise in the value of the loonie, which, in turn, weighs down exports.
One alternative that's been under development at Michigan State University for years is picking up momentum, in large part because of $ 2.5 million in seed money as part
of the stimulus spending from the Advanced Research Projects Agency, Energy, in 2009.
It was clear long ago that the pulse
of stimulus spending devoted to research was a blip.
One interesting facet of the graph above is how much
of the stimulus spending has been focused on carbon capture and sequestration, the process of catching CO2 as it leaves a power plant, compressing it and stashing it in the earth for safekeeping.
Rail at Center of Stimulus Package China's high speed rail build - out is at the front and center
of its stimulus spending, in large part out of fear: little is more intimidating to Beijing's leaders than the sight of thousands of unemployed workers.
Not exact matches
Given the billions in
stimulus dollars that will be
spent in coming years on infrastructure projects, demand for planners is likely to grow in lockstep with the flow
of federal and provincial dollars to social housing, transit, public spaces and recreational amenities.
Its government has put a
stimulus package in place and is continuing its much - vaunted transition from infrastructure to consumer
spending, but a lack
of trustworthy economic data and corporate reporting continues to scare investors.
Rudd plans third
stimulus Treasury is preparing the ground for a massive new burst
of fiscal
stimulus in next month's budget, declaring that the measures to date have averted a plunge in consumer
spending.
Poloz made clear at his last policy announcement in January that he wanted to assess the makeup
of Trudeau's deficit -
spending program before deciding whether more monetary
stimulus is needed.
However, to maintain high GDP figures and create the impression
of economic strength post-crisis, China
spent more than $ 4 trillion on a
stimulus program.
Krugman opined the extent
of Ferguson's economic knowledge was «really sad,» and explained why
stimulus spending was the only appropriate response to the crisis.
If the cash transfers were broadly distributed, the subsequent
spending would be more representative
of sustainable demand than other means
of stimulus, such as costly and ineffective «job creation» programs.
When the leaders
of the world's major economies convene in Toronto on June 26, their schedule will be laden with big issues, from ending
stimulus spending to the European debt crisis to the debate over a global bank tax.
Perhaps reflecting the mixed signals being sent by an economy where equity markets are hot but other economic activity remains tepid, 30 %
of respondents to a recent COMPAS poll say additional
stimulus spending should «probably not» be made.
And despite so - called
stimulus spending totalling nearly three - quarters
of a trillion dollars, he points out that there is still very little momentum in the world's largest economy.
Only this January, following the threat from the opposition parties to form a coalition and wrest control
of Parliament from the Conservatives, did the government unveil a $ 35 - billion
stimulus package including $ 18 billion in infrastructure
spending.
With nearly half
of all American families seeing one fifth
of their
spending go to oil, gas, and gasoline, a sustained drop in prices means an immediate and significant
stimulus.
The cliff is a combination
of expiring tax breaks and automatic
spending cuts that could remove up to $ 720 billion
of government
stimulus from the U.S. economy starting in January, all
of which has prompted various doomsday scenarios.
There are also growing doubts on the size and scope
of fiscal
stimulus the Trump administration may inject into the U.S. economy with campaign promises on tax reform, financial regulation rollbacks and infrastructure
spending either still on the drawing board or facing hurdles in Congress.
Whether those rate hikes come to fruition will depend in part on the shape
of fiscal policy and any
stimulus measures — tax cuts, infrastructure
spending — enacted by President - elect Trump and the incoming Congress.
To create jobs and prevent a double - dip global recession, this group
of die - hard Keynesians wants to see emergency
stimulus spending maintained and maybe even increased to support economic growth.
«Indeed,
of all the tax and
spending policies considered, it provides the least amount
of stimulus.
What Ottawa isn't considering, at least not publicly, is the return
of economic conditions that would dramatically impact government revenue, not to mention a total financial meltdown that would require emergency
stimulus spending (or a political need to meet calls for
stimulus).
Easy credit terms are getting through to the real economy, and there is no doubt that the monetary
stimulus is partly offsetting the depressive impact
of spending cuts and tax hikes.
When central banks around the world introduced
stimulus packages, known as quantitative easing (QE) in a bid to stimulate
spending, investment and growth, a key focus was the rate
of inflation.
Trudeau never really talked about his overhaul
of the family benefit program as economic
stimulus, but that didn't stop others from anticipating a jolt in household
spending.
And cheaper gas at the pumps, courtesy
of lower oil prices, will come as a form
of fiscal
stimulus for consumers in both the U.S. and Canada, leaving more money in their pockets to
spend on other things.
The expected macroeconomic impact
of the December 2017 tax reform, particularly the lower corporate tax rate and the temporary full expensing
of investment, together with increased government
spending, will begin to be felt in the second quarter and emerges as a powerful fiscal
stimulus in the remainder
of the year and in 2019.
The «Joe Six - Pack» world sees President Trump's proposed policies
of fiscal
stimulus, infrastructure
spending, deregulation and protectionist measures along with a Fed rate hike cycle.
The rationale was that
stimulus spending should get in and out
of the economic bloodstream pretty quickly, so you need to find «shovel - ready» infrastructure projects that don't go on for too long.
Stimulus spending ensured that the downturn wasnâ $ ™ t as severe as it could have been and growth was stronger coming right out
of the recession, but since then government austerity has slowed economic growth, putting us behind the even the 1990s recovery (see chart below).
And deficit
stimulus spending can not fix the collapse
of either the financial sector or the manufacturing base.
With the onset
of the 2008 - 09 recession and the subsequent G20 agreement for countries to introduce temporary
stimulus spending equivalent to 2 percent
of GDP, the federal deficit ballooned to $ 55.6 billion in 2009 - 10; $ 33.0 billion in 2010 - 11; $ 26.3 in 2011 - 12; $ 18.4 billion in 2012 - 13 and $ 5.2 billion in 2013.14.
According to the Seventh Report to Canadians, about $ 14 billion
of stimulus funding was earmarked for 2010 - 11,
of which $ 12.8 billion is «voted»
spending.
The
stimulus was to be implemented in 2009 and 2010 and could take the form
of either increased government
spending and / or tax cuts.
My guess is that as the problems
of the real estate sector kick in, with lower prices causing a drop in real estate development, which matters for employment, we are likely to see additional
stimulus spending aimed at managing the threat
of unemployment and, perhaps more importantly, at managing the possibility
of rising anger among provincial elites as the glorious prospect
of easy money continues to retreat.
The European Central Bank sometimes appears to be the sole eurozone institution seeking to restore the economy, in the absence
of government
spending stimulus.
First, the period 2009 - 10 to 2011 - 12 was unusual, characterized by massive increases in
spending due to the temporary
stimulus measures introduced as part
of the Economic Action Plan.