The consequences of a heavy tax burden on businesses.

The cost of the Olympics.

The cost of a reduction in our oil consumption.

It is difficult for innovative solutions like nurse-led clinics to establish themselves in a bureaucratic health care system.

Our governments have the tendency to imitate others for their public policies.

Businesses are taxed more than before.

In the introduction to its budget plan tabled earlier this week, Canadian Finance Minister Bill Morneau announced a deficit of $29.4 billion for the 2016-2017 year, or $1,631 per net taxpayer, and total deficits of $113 billion over the next five years. One of the arguments raised in the document in favour of this substantial new debt is that Canada’s current overall debt is much lower than that of the other G7 countries, which gives the federal government the leeway to take on more debt. However, this comparison is based on the net debt, which distorts the situation.

2016-2017 Federal Budget.

Quebec 2016-2017 Budget.

A number of Bay Street economists are urging the federal government to loosen its purse strings even more and run larger deficits than announced during the election campaign in order to “stimulate” the Canadian economy. This short-term perspective, however, fails to take into account several important considerations.