In yesterday’s National Post, economist Stephen Gordon cast a critical eye on the fall economic update and the government’s excuse for running deficits, and the decision to abandon the fiscal anchor of balanced budgets in favour of a declining debt-to-GDP ratio. And rather than worrying about the non-existent debt-bomb, Gordon is mostly looking for answers why the policy shifted post-election. Fair enough. (He also does the math on how much more a government can spend by shifting the fiscal anchors like the government did here).
Enter fellow economist Kevin Milligan, who digs through and finds an answer. Enjoy.
https://twitter.com/kevinmilligan/status/925024898388389888
https://twitter.com/kevinmilligan/status/925026096898129922
https://twitter.com/kevinmilligan/status/925028185174970369
https://twitter.com/kevinmilligan/status/925029751072235520
https://twitter.com/kevinmilligan/status/925098340303347712
https://twitter.com/kevinmilligan/status/925099179298373632
https://twitter.com/kevinmilligan/status/925110355491041280
https://twitter.com/kevinmilligan/status/925110707498000384