March 29, 2024
Trudeau government has pushed federal spending to the highest level in Canadian history
Research indicates the optimal size of government is much smaller than what currently exists.
Research indicates the optimal size of government is much smaller than what currently exists.

Sound fiscal policy is crucial for a healthy economy. A key component of sound policy is the appropriate size and role of government (i.e. government spending and regulations). Higher spending comes at the expense of higher taxes, levied now or in the future through larger deficits and greater debt accumulation, all of which can influence economic growth and social progress. This issue is particularly relevant today, as 2019 marks the highest level of federal government spending in Canadian history.

Certainly, the government has an important role to play — public services are critical for a well-functioning economy. But what’s the right size of government?

The question ultimately comes down to what share of resources are best kept by workers, entrepreneurs and businesses that create them, versus the share of resources the government should extract to spend on the priorities it deems important. Two common measures are used to calculate the size of government: spending as a share of the economy and per-person spending (adjusted for inflation). First, let’s review spending as a share of the economy. According to the IMF’s Fiscal Monitor, Canada’s spending (including all levels of government) as a share of the economy is a little more than 40 per cent (without accounting for regulations, which would increase the size of government further).

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See Also:

(1) All The Things The RCMP Doesn’t Know About Crime Guns

(2) How satisfied are you with things in Canada? Poll reveals a chasm between Alberta, Quebec

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Don Deacon
Don Deacon
January 17, 2020 6:22 pm

We are now going to pay $25,000.00 to each of the Canadians killed in the Ukrainian Air shoot-down even before we learn what, if any, will be paid by Iran.
When one sees the names of those killed it would be interesting to know if they were genuine Canadian citizens.

Why do we have any responsibility with regards this tragedy when they were not even on a Canadian airline?

Give this guy Trudeau a beard and a phony serious look on his face and I guess anything goes.