Wednesday, September 09, 2015

The Grownups are now running the Show

Unapologetic common sense about stimulus during recessions.

The Friedmanites of the Calgary School still repetitively reciting their stale and discredited creed will howl and chant their anethemas and clutch their stained copies of the Fountainhead fearfully to their breasts.

But grownups are finally running the show in Alberta.
Alberta’s NDP government may boost spending on public infrastructure as a salve for an ailing provincial economy that has been battered by the slumping price of oil.
Finance Minister Joe Ceci told reporters Wednesday the government has received and is reviewing a report from former Bank of Canada governor David Dodge that it commissioned this summer to examine Alberta’s capital spending.
Ceci said the government isn’t ready to make announcements, but noted increasing capital spending — on infrastructure projects such as roads, hospitals and schools — would give a shot in the arm to private sector companies contracted by the government to do the work.
“Where we’re in a down cycle economically, counter-cyclical spending by governments on public infrastructure is seen as a good investment, especially in this low (interest rate) borrowing time,” Ceci said in Banff, where the NDP caucus was holding a retreat.

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