Governments and the Recession

The prime minister is now asking all governments to take sufficient measures to cover the recession. Isn’t this a huge turn around from a man who refused to admit that there was a recession. An economist then was seen to mention that calling the slump in the economy a recession was an over exaggeration. Today the surplusses of Newfoundland in the billions is now over 700 million in the red apparently due to federal cuts and cheap oil. I would say that it was due to a miscalculation of profits as well as something caused by the federal government.

The federal government’s way of knowing what is a surplus or what is a deficit is really bad. That federal government is a conservative one. In the meantime Ontario is reacting by spending billions to stimulate the economy with the hope that it will encourage employment and investment for the future. In the meantime that province will be going further into the red.

Critics to this whole scenario will say that this government like any other has more than it can handle on being able to forecast where the economy will go. As a result of this, analysts are saying that the best information can be found in listening to the financial experts of the country. If Canada wants to promote itself as recovering earlier from this recession, it won’t get anywhere by pretending to be the economic engine of the world. It will make some headway if it comes across as admitting that the banks in Canada are more solvent. Perhaps that would encourage the Europeans to make further changes in their banking systems.

Personally I would love to see a change in the government away from Harper. People are saying that there would be no election call until there is a turn around in the economy. If one says that recovery will occur in 9 years, I would not want to have that disabled leader continue that long!Harper would only too happy to pretend to be a master economist.

There will be a conflict between spending our way out of recession which has gained criticism in Europe. There countries want to regulate bank activity. There Brown has been called to admit his failings as his goverment has lost thirty percent of the votes because of the extra spending. Obama wants to continue to spend trillions. I also think that spending your way out of recession is no solution to the problem. Repegging world currencies to the IMF, something that a Chinese economist suggested, might be a step in the right direction.