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Stimulating economy by government spending doesnt work. Its a part of bankrupt socialist ideology. Japan tried it for ten years now and all they got is huge debt and ten years of rolling recession.
Tax cuts is the way to go.People get to spend money directly rather than through government bureaucracy.
well, I'm sorry to say, but Canada's been doing the same thing for years and years.. we generated a massive deficit because of the previous government (I haven't a clue how they did that), but we're back on our feet again.
people still spend money when they give the government their money. in fact, doing it that way makes life extremely easy for us Canadians.. we don't have to worry about paying for school, health care, etc etc. it all gets funded by the government (which is funded by us) with taxes.
with the US, when you experience an economic slowdown, the result is less people with jobs, companies going bankrupt, etc. With Canada, you experience similar effects, though not necessarily to such magnitude, because alot of jobs that are taken care of by companies in the states are taken care of by the government here in Canada.
our population has a much higher chance of working for the government (my dad does, he works at a powerhouse that provides heat for a hospital) then you would in the states.
the more people that can stay working, the less people who have no jobs, the more taxes you get, the better the quality of life (social spending is sustained), the more the government can spend on projects to stimulate our economy.
with the US, sure, you can lower taxes. so can we (though we don't, becuase we have such a large government, and because we're still paying off our deficit).
but that's just the tip of the iceburg here.. In Canada, more of our money gets circulated within our country then in the States.
our downfall? if ever a government that comes into power does similar things like that last one did, we're in trouble. which is why we have to rely on voting to keep our country running at prime.