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Taxation

Viewpoint – Do Low Interest Rates Justify Deeper Deficits?

The federal deficit is rising, far beyond the $10 billion projected in the Liberal platform. It is widely repeated that now is a good time to borrow since interest rates are very low. Those who use this argument to justify borrowing forget that interest charges are not the only cost associated with deficits. This Viewpoint presents five alternative ways of thinking about the cost of deficits and infrastructure spending.

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