kEiThZ
Superstar
The idea that interest rates will stay low for the forseeeable future is built on a shaky foundation. A slight drop in Ontario's credit rating could see rates go up. An upswing in the US economy could see rates rise (after all Ontario bonds have to compete with US treasuries on the bond markets). We're in a situation, where a small increase in rates, could see Ontario's fiscal situation worse quite a bit.
It's not that all debt is bad. We need Keynesian spending. But that theory is usually aimed at short-term support (like EI) and infrastructure spending that is supposed to boost productivity. This government has spent a lot more on public sector wage increases than it has on any of that.
It's not that all debt is bad. We need Keynesian spending. But that theory is usually aimed at short-term support (like EI) and infrastructure spending that is supposed to boost productivity. This government has spent a lot more on public sector wage increases than it has on any of that.