Keynesian economics does not work. I was very annoyed when HM Canadian Government was forced into using the old voodoo by the opposition in the last recession. I am hoping that that will not happen again. This red star columnist is terrified that the government may cut the massive state apparatus. I can only hope.
http://www.thestar.com/news/canada/politics/article/1058834--walkom-why-harper-s-ringing-economic-alarm-bells>Stephen Harper used British Prime Minister David Cameron’s Ottawa visit this week to stage a photo op for fear. Harper did so on purpose. And while it’s not yet crystal clear what his purpose was, Canadians would be wise to expect the worst.
First, remember how unusual it is for a prime minister to stoke fears about the economy. To do so is considered counterproductive. That’s why the standard Conservative mantra from both Harper and Finance Minister Jim Flaherty has been deliberately muted.
Usually, they emphasize the relative solidity of Canada’s economy, avoid any reference to recession and prefer euphemisms like “fragile recovery.”
On Thursday, however, Harper and Cameron operated as a tag team for alarm.
“The most immediate test confronting us all is to avoid the devastating consequences of a return to global recession,” Harper said as he introduced Cameron to a special joint session of Parliament.
At a news conference later, the Canadian Prime Minister described the world economic situation as having reached “extremely dangerous levels.”