Wednesday, October 5, 2011

Bernake Would Seem to Get It. Does Flaherty? Bernake would seem to get it: laying off government employees creates more unemployment. He also knows that any budget deficit should be constricted over a longer term, that cutting spending in the interests of deficit reduction too quickly will not help, and that the emphasis should be on fiscally stimulating the economy now to increase employment and thereby generate the economy and tax revenue in the process. Why doesn't Flaherty appear to get it with his steady as she goes stance instead of trying to get ahead of the curve?  He's calling for leadership in Europe. How about a little serious, smart leadership right here in Canada?  If commodities, which are the real engine of our economy,  go sideways and if the European crisis spills over to North America, as it is inevitably will, it may be more than a slowdown that will occur.  Fiscal Austerity: Does it Work?

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