The ability of governments to borrow money to finance COVID-19 related investments has revealed that the deficit dragon is not a mythic demon but an artifact of wholly headed thinking and the monetary policies of neo-liberalism.
“The Parliamentary Budget Officer recently released an updated analysis of the coronavirus pandemic’s impact on the Canadian economy that forecasts the federal budget deficit will be $252 billion in 2020-21, compared to $25 billion in 2019‑20. Such a massive deficit would represent 12.7 per cent of Canada’s Gross Domestic Product. The good news is that the cost to Canadian taxpayers and beneficiaries of government services should be minimal. Canadians do not have to fear […]”
